The Government is considering the establishment of a credit risk guarantee fund of Rs 1,000 crore to encourage banks to lend to the poor. Inaugurating the National Conference of Jawahar Lal Nehru National Urban Renewal Mission, Prime Minister Dr. Manmohan Singh said it would encourage banks to lend significant volumes to the economically weaker sections and low income groups.

Dr. Singh said urban India generated two thirds of the GDP and leveraging urban transition presented a significant opportunity for development and growth. For harvesting demographic opportunity of young India, he added, it was important to focus on livelihood opportunities in industry and service sectors and improving productivity in the agricultural Sector.

This, the Prime Minister said, would ease the burden of poverty while facilitating a more open and democratic society. Referring to the Jawahar Lal Nehru Urban Renewal Mission, he said there were many challenges ahead.