26 February 2019
Bhubaneswar: The Department of Agriculture and Farmers Empowrment today signed an MoU with NABAKISAN, a subsidiary of NABARD for providing access to collateral free loan facilities by FPOs in the State from financial institutions. The MoU was signed by Horticulture Director, Bijay Ketan Upadhyay and Neeraj Verma, CEO NABAKISAN.
Chief Minister Naveen Patnaik and Agriculture Minister Sashi Bhusan Behera were present during the signing event. The MoU encompasses creation of a separate Credit Guarentee Fund to the tune of Rs 10 crore by Odisha Government, which will be administered by NABAKISAN and pave way to provide collateral free loans by the financial institutions of the State to the FPOs functioning in Odisha.
This MoU is a fallout of the State FPO police 2018 in coordination with NABARD having wide experience in promoting more than 300 FPOs in the State. This is also a sequel to earlier MoU executed between NABARD and Department of Agriculture and Farmers Empowerment for promotion and nurturing of FPOs in the State to address the problems of small and marginal farmers.
Naveen expressed confidence that the MoU will be implemented in letter and spirit and the farmer members of the FPOs will be able to benefit from unhindered credit flow for their agricultural operations. As per the MoU the loans given by Public Sector Banks and NABAKISAN to the FPOs will be guarenteed under Credit Guarentee Fund which will be administered by NABAKISAN.