PLP SAGAR EXECUTIVE SUMMARY

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1 EXECUTIVE SUMMARY I.General: a. Theme of the PLP is Accelerating the pace of Capital Formation in agriculture and allied sector. b. Sagar district is situated in the Vindhya Plateau Region-5 in Eastern part of Madhya Pradesh. It has a total geographical area sq. km. constituting 3.32% of the total area of the State. The average rainfall of the district is 1231 mm per annum which precipitates in about 45 days. The district population (2011 Census) is with in rural areas. The population below poverty line is 48.69%. The Gross Domestic Product (GDP) of the district during was 2.87 % of the state GDP. The total irrigated area as a percentage to net sown area is 57.23%. Sagar lies in an extensive plain broken by low, forested hills and watered by river Sonar. Wheat, soyabean, gram and oilseeds are chief crops of the region. There is extensive cattle rearing. Sandstone and Limestone deposits are found here. District Sagar is predominantly a Scheduled Caste/Backward class district. The total number of villages in the district are 2075.Out of which, 1901 villages are inhabited. Sagar district is divided into eleven tahsils and eleven development blocks c. Ground Level Credit Flow (GLC): Total GLC of the district under priority sector which was crore during , increased to crore during and further to crore during The agricultural loans issued during the last three years were crore, crore and crore respectively. The disbursements under NFS during the above period were crore, crore and crore respectively. The share of agriculture in GLC which stood at % in has increased to % during The Agriculture Term Loan constituted % of the total agriculture lending during d. Highlights of banking benchmarks: The district has 28 Commercial Banks, 1 RRB, 1 DCCB and 1 Land Development Bank with 124 branches of Commercial Banks, 41 branches of Gramin Bank, 21 branches of DCCB, and 178 PACS and 11 branches of Land Development Bank. SBI, CBI and RRB have the highest number of branches in the district. The performance of banks in achieving the parameters stipulated by RBI was satisfactory/not satisfactory under Priority Sector Advances such as CD ratio of 60%, PSA advances of 69%, Agricultural Advances of 47%, as against the stipulation of 60%, 40% and 18% respectively. Submission of LBRs by banks has been satisfactory at 90-95%. Achievement under ACP was at crore which formed 99% of the target. The performance under Financial Inclusion was satisfactory, as the targets regarding coverage of villages through BCs, account opening under PMJDY were met. However, under the PM Bima Yojanas, launched in , there has been a very low achievement vis a vis target allotted to the district. e. e. Sectoral assessment of potential: (i) The potential, under Priority Sector, in each sector / sub sector for that could be tapped with institutional credit has been assessed and presented in Appendix A. The potential has been assessed at crore as against crore for the year showing % growth over previous year. The potential under various sectors include Agriculture crore, MSME crore, Education 7.92 crore, Housing crore, Social Infrastructure 7.65 crore, Renewal Energy 2.05 crore and Others crore. The shares of Agriculture, MSME, Education, Housing, Social Infrastructure, Renewal Energy, and Others form %, 3.59 %, 0.32%, 4.79 %,0.30 %, 0.08 % and 1.77 % respectively. The potential has been assessed keeping in view the GoI/GoMP s 1

2 priorities, existing/likely improvements in infrastructure, past GLC, revision in SoF/Unit Cost and various subsidy schemes of GoI/GoMP. f. Major Constraints: Some of the major constraints envisaged in achieving the potential assessed are lack of agri-infrastructure for marketing, agro process units for horticulture produce viz. onion, tomato, potato, reliable electric supply and and absence of organized animal markets and suppliers of renewable energy products. II. Thrust areas and Developmental Initiatives of NABARD a. In order to realise the stated goals a few Area Based Schemes have been identified. The sectors identified is dairy and horticulture. Tentative banking plans have been prepared for these activities. An estimated amount of 85 lakh is expected to be financed by banks under these models. The models indicated are only pilots and it is expected that more such schemes will be prepared by banks. b. NABARD had also identified a few thrust areas for viz., JLG/SHG financing, improving dairy development, Producer Organizations, etc. To promote the above areas, NABARD has also initiated several developmental activities in the form of support to Self Help/JLG Promoting Institutions, Farmers Producers Organisations through its Producer Organisation Development Fund and PRODUCE Fund established though the GOI Union Budget III. Infrastructure a. The district fares fairly well under some of the infrastructure indicators such as irrigation and literacy levels where the ranking of the district is better than the State average. However certain other indicators such as road density are lower than the State average. Infrastructure facilities act as catalysts for development. Under RIDF, 116 projects with a cumulative loan component of crore was sanctioned by NABARD for the district covering mainly road, bridges, irrigation, schools projects. b. There are certain critical infrastructure which can be supported through public investment viz. roads, bridges and irrigation tanks in Khurai, Malthon and Devri blocks and private investment in the district viz., schools, hospitals and RO water plants. Banks have to play an active role in financing such investments. IV. Conclusion: In order to achieve the overall credit potential assessed and in particular to enhance the capital formation in Agriculture in the district, there is a need to have a coordinated approach by all the stakeholders, viz., banks, Govt.Departments and NGOs. The reporting system by banks through LBRs, regular monitoring of achievements vis-à-vis the targets in DLCC/BLBC meetings assume greater importance. The implementation of SHG, JLG, RuPay enabled KCC and Financial Inclusion drive will ultimately result in achieving the various objectives of inclusive growth in the rural areas of the district. 2

3 Appendix A to Annexure 1 Broad Sector wise PLP projections Sr No Particulars PLP projections A Farm Credit i Crop production, maintenance and marketing ii Term loan for agriculture and allied activities Sub total B Agriculture Infrastructure C Ancillary Activities I Credit potential for agriculture (A+B+C) II Micro small and medium enterprise III Export credit 0.00 IV Education V Housing VI Renewal Energy VII Others VIII Social Infrastructure involving bank credit Total priority sector ( I to VIII)

4 Appendix B to Annexure 1 Summary of Sector/Sub Sector wise PLP projections Sr No Particulars PLP projections I Credit potential for agriculture A Farm credit I Crop production, Maintenance and Marketing II Water Resources III Farm Mechanization IV Plantation and Horticulture V Forestry and Wasteland Development VI Animal Husbandry-Dairy VII Animal Husbandry-Poultry VIII Animal Husbandry-Sheep, goat, piggery etc IX Fisheries X Others-Bullock, Bullock cart etc Sub Total B Agriculture Infrastructure I Construction of storage facilities (Warehouse, Market Yards, Godowns, Cold Storage Units) II Land Development, soil conservation, watershed development III Others( Tissue culture, Agri Biotechnology, Seed production, Bio pesticide/fertilizer, vermin composting) Sub total C Ancilliary activites I Food and Agro processing II Others ( Loans to ACABC,PACS, FSS, LAMPS, MFI etc.) Sub total Total agriculture II Micro, Small and Medium Enterprises I MSME-Working capital II MSME-Investment credit Total MSME III Export credit 0.00 IV Education V Housing VI Renewal Energy VII Others (Loans to SHG/JLG, distressed person, PMJDY) VIII Social Infrastructure involving bank credit Total Priority Sector

5 BROAD SECTOR-WISE PLP PROJECTIONS DISTRICT MAP OF 5

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