Investment credit for agriculture and allied activities in Andhra Pradesh State has increased substantially over the years. Considering the importance of capital formation in these sectors, NABARD has assessed the potential for credit flow at Rs. 16228 crore for the years 2002-03 in Potential Linked Credit Plans. The production, productivity and income generation depend to a great on the adherence to various techno-economic norms while financing / implementing the projects. The importance of ensuring flow of adequate financial support to the entrepreneurs to execute the project needs no emphasis. The State   Level Standing Committee for fixation / review of Unit  Costs constituted and convened by NABARD with representatives / subject matter specialists from various departments of state government and major banks as members, meets at least  once in a year to  review / fix unit costs for various investments. Apart from reviewing the existing unit costs for various activities, the committee also approves the unit costs for new activities based on the requests received from different developmental / financial agencies and taking into account the filed level scenario and the potential available in the state for the same.

This booklet brought out by Investment Credit Department, Regional Office, NABARD, Hyderabad provides details on updated unit costs approved in the State Level Standing committee Meeting held in October,2001. The costs for five new activities in Plantation and Horticulture and revision in existing costs for various activities were approved. The cost for investments under agriculture and allied activities as also the major technical parameters and special terms and conditions, for various investments have been included.

I hope the banks and Government Agencies in Andhra Pradesh will find the booklet useful in appraising the loan proposals and providing credit for various investments in agriculture and allied activities.