Having understood the importance of the new seed industry, the chairman of National Bank Limited was thinking of developing a project on hybrid seed production. In the meantime, the National Seed Corporation, which had undertaken hybrid seed production in Mysore State, approached the bank with a suggestion that the bank should give loans to prospective seed producers so that the seed industry in the state could be developed. One of the directors of the board of the bank, who was an agricultural expert, was deputed to study the project in order to evaluate the merits of the project.