Assam CM Pushes For Increased Bank Funding To Drive State's Growth

(MENAFN- KNN India) Dispur, Jan 7 (KNN) Assam Chief Minister Himanta Biswa Sarma has urged banking institutions to overcome historical perceptions and increase project funding in the state.

Speaking at a press conference ahead of February's investment summit, Sarma emphasised the need to challenge existing mindsets that might discourage investments in Assam. "Sometimes people become prisoners of the past. Breaking that barrier is crucial and you have to fight the perception battle," he stated.

The Chief Minister highlighted the state's current strengths, citing political stability, robust law and order conditions, and fiscal strength as key factors that make Assam an attractive investment destination.

While acknowledging concerns about regional lending, Sarma expressed confidence that increased government focus on investments would naturally encourage banking sector participation.

In a parallel development, the state government addressed ongoing challenges in its microfinance sector. The Assam Microfinance Incentive and Relief Scheme (AMFIRS), designed to support borrowers with limited repayment capacity, faces implementation hurdles.

Sarma revealed that of the 150,000 borrowers eligible for no-dues certificates last year, microfinance institutions have been unable to locate approximately 75,000 beneficiaries.

The Chief Minister maintained a pragmatic approach to banking sector concerns, stating he would not directly intervene with banks regarding their lending views on Assam-based projects. Instead, he expressed confidence that demonstrated governmental strength in investment initiatives would naturally attract banking sector support.

(KNN Bureau)

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