Himachal Pradesh Co-operative Agriculture and Rural Development Banks Act, 1979 3Chapter II · Banks and Loans

Section 3 · Purposes for which loans may be issued

- The [Agriculture and Rural Development Banks] [Substituted for the words 'Land Development Bank' vide Act No. 16 of 1987 w.e. f. 16-11-87.] shall advance loans, other than short-term loans only for the purpose hereinafter enumerated as purposes for which loans may be advanced, that is to say:-

(i)

land improvement and productive purposes;

(ii)

the erection, re-erection or repairing of houses for agricultural purposes;

(iii)

the purchase of or acquisition of title to agricultural land by tenants under any law for the time being in force in any part of the State;

(iv)

the liquidation of debts under any Act for the time bung in force in any part of the State.

Explanation 1. - For the purposes of this section, short-term loan means a loan for a duration of less than 18 months.Explanation 2. - Land improvement and productive purposes mean any work, construction or activity which adds to the productivity of the land and, in particular, include the following, that is to say: -

(a)

construction and repair of wells (including tubewell), tanks and other works for the storage, supply or distribution of water for the purpose of agriculture, or for the use of men and cattle employed in agriculture;

(b)

renewal or reconstruction of any of the a foregoing works, or alterations therein, or additions thereto;

(c)

preparation of land for irrigation;

(d)

drainage, reclamation from rivers or other waters, or protection from floods or from erosion or other damage by water of land used for agricultural purposes or waste land which is culture able;

(e)

building and similar improvements;

(f)

reclamation, clearance and enclosure or permanent improvement of land for agricultural purposes;

(g)

horticulture;

(h)

purchase of oil-engines and electrical motors for any of the purposes mentioned therein;

(i)purchase of tractors or other agricultural machinery and implements;

(j)

increase of the productive capacity of land by addition to it; of special variety of soil;

(k)

construction of permanent farm houses, cattle sheds and sheds for processing of agricultural produce at any stage;

(l)

purchase of machinery for crushing sugarcane, manufacturing gur or khandsari or sugar and other like purposes;

(m)

purchase of land under the Himachal Pradesh Holdings (Consolidation and Prevention of Fragmentation) Act, 1971 (

20 of 1971

);

(n)

such other purposes as the Board may, from time to time with the approval of the Registrar, declare to be improvement or productive purpose for the purposes of this Act.

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