MUMBAI: The crucial State Credit Seminar on Tuesday suggested for an enhanced credit plan size of Rs 42,000 crore for Maharashtra for the year 2010-11.

The State Focus Paper (SFP) prepared by NABARD had suggested for a credit plan size of Rs.34,549 crores for 2010-11 comprising of Rs.21,740 crores to agriculture sector, Rs.4,300 crore for Rural Non-farm Sector and Rs.8,509 crore for Other Priority Sector.

The SFP was released by Chief Minister Ashok Chavan in presence of NABARD Chairman U C Saragi.

Addressing the meeting, Chavan called upon the banks to introspect on the low of level of credit disbursement to the rural sector and hoped that the credit plan would be comparable to the other major states of the country. He informed that his Government would shortly come out with an Agro-Industrial policy for value addition to the agriculture, allied and horticulture sectors.

Sarangi informed that the share of cooperative banks accounted for Rs.7,500 crore. out of Rs.9,000 crore disbursed under production credit during the current year.

He called upon the commercial banks and RRBs to increase their disbursement to agriculture sector. He suggested that the plan size may be revised, keeping in view the increased credit needs of the rural sector.

 As against the aggregate credit plan of Rs.34,549 crore being projected under the State Focus Paper, he suggested that a revised plan of Rs.42,000 crore may be adopted by the Seminar and revised lending targets may be made available to the banks for micro level planning for 2010-11.