The Ground level credit flow during the past three years and target for the current (` lakh) Sector (target)

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1 EXECUTIVE SUMMARY 1. Introduction The Potential Credit Linked Credit Plan (PLP) for has been refined and revised taking into account the changes in the Priority Sector Lending norms, input cost, trend in Ground Level Credit (GLC) flow, and policy initiatives of State and Central Governments. Accelerating the flow of ground level credit resulting in increased investments in agriculture and allied sector has been a policy priority. It has been observed over the year that the credit flow towards such investment activities in agriculture and allied activities is showing a declining trend. Hence, the PLP has been prepared with a theme of ACCELERATING THE PACE OF CAPITAL FORMATION IN AGRICULTURE AND ALLIED SECTOR. Villupuram, the largest district in Tamil Nadu is ranked 6 th place in terms of population. Majority of the population in the district reside in rural areas and depend on agriculture and allied activities for livelihood. The district has 15% urban population to its total population, 31.54% Scheduled Caste population and 2.44% Scheduled Tribe population. Penniyar, Gadilam, Gomuki, Malattar and Sankaraparani are the five rivers flowing through the district. Land holdings are highly fragmented and about 91% of the land holdings are less than 2 ha. The cropping intensity is 110% as against the State average of 116%, while the irrigation intensity is 115%, as against the State average of 116%. The per capita land holding is slightly higher at 0.97 ha as against the State average of 0.91 ha. 2. Bank Network and Credit flow The district has a well spread out network of Public and Private sector banks with branches numbering 312 branches. The district also has 24 branches of Pallavan Grama Bank, 21 branches of Central Cooperative Bank in addition to 238 Primary Agricultural Cooperative Credit Societies (PACCS). The achievement under Priority Sector lending is 81% as against the RBI norm of 40%. The advances to Agriculture Sector stood at 61% of the total lending as against the RBI norm of 18% and loans to Weaker Sections stood at 28% as against the RBI norm of 10%. The ground level credit flow during and was ` lakh and ` lakh respectively and target for is ` lakh. The Ground level credit flow during the past three years and target for the current year (` lakh) Sector (target) Farm Sector loan Non-Farm Sector loans Other Priority Sector advances Total i

2 3. PLP Projections for the year The Potential Linked credit Plan (PLP) projections aggregated to ` lakh for the year , is 27.62% higher than the ACP target of ` lakh for the year The broad sector wise break-up of the above projections are 52.56% for Crop Production, Marketing and Food security, % for term credit for agriculture & allied activities, 6.23% for creation of Agriculture Infrastructure, 1.57% for Ancillary activities, 4.56% for MSME sector and 11.22% towards exports, education, housing, renewable energy and other priority sector including social infrastructure. The Activity-wise/Block-wise Potential Linked physical and TFO estimates for , an Overview of Ground Level Credit and Sub-sector-wise details of ground level credit disbursements under Agriculture and allied activities by all the agencies during , , and targets for are given in Annexure I, II and III respectively. 4. Major constraints observed in achieving credit flow and suggested action points to address the same. (i) Production & Marketing: There is a need for increase in production and productivity and also crop diversification and adoption of latest techniques, as the area under crop cultivation is one of the highest at 3.37 lakh ha., Crop loans to be issued only in the form of Kisan Credit Card (KCC) and RuPay KCC Card should be issued to all the eligible farmers. The KCC holders should also be covered under Personal Accident Insurance Cover (PAIS). The coverage under IS is very poor and there is urgent need to compulsorily cover the loanee farmers and also help non-loanee farmers to take insurance cover. (ii) Water Resources: Due to increased demand and harnessing of water, there is depletion in groundwater storage levels, thus focus should be on covering farm lands under the water saving devices like sprinkler and drip irrigation systems. (iii) Land Development: Policy initiatives and support for organic farming will help farmers in taking up these farm practices leading to effective use of agro-waste and cow-dung in preparing compost and also adopt new methods, such as vermi-compost, azolla cultivation, etc. (iv) Farm Mechanisation: Adequate awareness / capacity building programs to sensitise farmers on the use of modern farm equipment such as Paddy transplanter, power weeder, etc., postharvest equipments such as groundnut decorticators, dryers, cleaners, graders, harvesters, etc., will help farmers to enhance the economic returns on farm investments. Banks can finance for such farm equipments and small implements to SF/MF and by SHGs and JLGs. (v) Plantation and Horticulture: Considering the favourable agro-climatic conditions the area under horticulture crops can be increased many fold form the present level of about 20,000 Ha. As such, the scope for plantation and horticultural crops is yet to be exploited fully in the district Timely availability of quality planting materials may be ensured by encouraging private enterprises to set up nurseries and make available quality planting materials/seeds. Post-harvest management through creation of adequate infrastructure like scientific storage godowns, cold storages/ripening chambers will enable farmers to market their produce and also price realisation. ii

3 (vi) Animal Husbandry activities: Dairy has emerged as leading allied activity supporting the livelihood of the farmers in the district. However, absence of cattle feed mixing units and lack of adequate knowledge on animal health practices has affected particularly the quality milk production and milk yield in general. Animal Husbandry Department may improve support services like fodder cultivation, cattle feed manufacturing units, veterinary clinics / centres etc. There is need for tie up arrangements with reputed poultry firms / aggregators which would hasten bank financing with back ended subsidy for establishing poultry units. Sheep/ Goat and Piggery rearing is becoming a popular allied sector activity among farmers and mostly first generation entrepreneurs, which could be supported by banks, as ready market is available in towns and nearby cities, such as Chennai, Pondicherry and Salem. 5. Micro-Finance The SHG- Bank Linkage Programme is observed to be an effective tool for achieving total financial inclusion in the country. The programme has been given impetus by Government with the restructuring of SGSY as National Rural Livelihood Mission (NRLM) and State Rural Livelihood Mission (SRLM). Approximately 21,000 SHGs in the district are credit linked with banks. Banks shall endeavour to step up direct linkage and ensure pursuing proper economic activity. Similarly, banks may accord renewed focus for formation and credit linkage of Bhumi Heen Kisan Groups - Joint Farming (Liability) Groups, and take steps for achieving the target given in the Banking Plan prescribed for the purpose. As vast extent of agricultural lands is given on lease to Small & Marginal Farmers and agricultural labourers, such tenant farmers/ oral lessees are not able to secure cheaper credit from banks and depend upon money lenders and MFIs. Hence, the JLG concept may be adopted by banks to bring them into the mainstream. 6. Critical Infrastructure Renovating /rehabilitation/desilting/strengthening of canals in Gomuki, Penniyar river basin to be taken up on priority basis. There is a need for strengthening of infrastructure for Horticulture development and Agricultural Market infrastructure, especially Storage Godowns and Drying yards is essential to prevent distress sale and wastage. Solar based power generation to meet the increasing energy requirement, especially in agriculture and rural areas is required. 7. Area Based Scheme Based on the needs and potential existing and support schemes available, area based scheme for promoting credit flow in the area of Micro irrigation systems for Vegetable and Sugarcane cultivation have been attempted. Adequate institutional credit flow will help in success of the Area Development Scheme in the selected blocks of the district. 8. Innovative Initiatives A project under BARD s sponsored Lead Crop Scheme implemented in six villages to augment crop production and productivity and bridge the gap between highest yield and normal average yield has created awareness on use of improved agriculture technology in the district. The concept of Bhoomi Heen Kisan - Joint Liability Groups(JLGs) promoted by BARD has enabled Indian Overseas Bank and Pallavan Grama Bank apart from Primary Agricultural Cooperative Credit Societies to form over BHK-JLGs and issue crop loans/kisan Credit Cards and term loan for various allied agriculture activities and Off farm sector activities in the district. iii

4 9. Thrust areas Adequate and timely credit flow to SHGs, adopting BHK-JLG mode of financing, promotion of activity based lending in SHG segment will be the thrust areas for developmental agencies and financial institutions in the district. Promotion of JLGs to increase credit flow under agriculture and allied activities, evolving Farmers Club Federations in to Producer Organizations and implementation of area based development schemes are the thrust areas that would be successful with adequate credit flow. 10. Credit flow monitoring There is a need to conduct a realistic assessment and also continuous monitoring of the credit flow in to various sectors of the agriculture, allied activities and Off farm sectors in the district. Effective implementation of SAMIS system is essential to have a review on the progress made under Annual Credit Plan prepared by Lead Bank. A coordinated approach among Banks and Line Departments with corrective measures is required to ensure the realization of credit potential available in the district. 11. Conclusion The Financial Inclusion Plan has created a greater awareness and focused approach to bring the unbanked mass in the district to the manifold of development. All the villages with population of 1000 and above in the district have been covered under Financial Inclusion Plan. It is expected that the credit flow will necessarily increase with increase in coverage of branch network and appointment of Business Correspondents by banks. The progress under Financial Inclusion Plan is monitored in BLBC / DCC in the district. iv

5 Broad Sector-wise PLP Projections State: Tamil Nadu S. No. Particulars District: Villupuram (` lakh) PLP Projections A Farm Credit 1 Crop production, Maintenance & Marketing 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 Enterprises III Export Credit IV Education V Housing VI Renewable Energy VII Others VIII Social Infrastructure involving bank credit Total Priority Sector (I to VIII) v

6 Summary of Sector/Sub-sector-wise PLP Projections (` lakh) Sl. No. Sector PLP Estimates I Credit Potential for Agriculture A Farm Credit i Crop production, Maintenance & Marketing ii Water Resources iii Farm Mechanization iv Plantation and Horticulture (including Sericulture) v Forestry and Wasteland Development vi Animal Husbandry - Dairy vii Animal Husbandry- Poultry viii Animal Husbandry- Sheep, Goat, Piggery, etc ix Fisheries (marine, inland, brackish) x Others Bullock, Bullock cart, etc Sub Total B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market yards, Godowns, Silos, Cold storage units/ Cold storage chains) ii Land development, Soil conservation, Watershed development iii Others (Tissue culture, Agri bio-technology, Seed production, Bio pesticides/ fertilizers, Vermin composting) Sub Total C Ancillary activities i Food and Agro processing ii Others ( to Cooperative Societies of farmers for disposing of their produce, Agri Clinics/ Agri Business Centres, to PACS / FSS/ LAMPS, to MFIs for on lending) Sub Total Total Agriculture II Micro, Small and Medium Enterprises i MSME Working capital ii MSME Investment credit Total MSME III Export Credit IV Education V Housing VI Renewable Energy VII Others ( to SHGs/ JLGs, loans to distressed persons to prepay non-institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST) VIII Social Infrastructure involving bank credit Total Priority Sector vi

7 District - District Profile Villupuram State - Tamil Nadu 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 7222 No. of Sub Divisions 4 Agro-climatic Zone Region III - East Coast Plains and Hills, North Coastal Tamil Nadu (Zone XI) No. of Blocks 22 Climate Semi-Arid No. of Villages (Inhabited) 1490 No. of Village Panchayats 1099 Soil Type Red Loan Soil, Black Soil and Red Sandy Soil 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported Normal Actual Forest Land Rainfall [in mm] Area Not Available for Cultivation Variation from Normal (-)16.9 (-) (-) 7.53 Permanent Pasture and Grazing Land 4170 Availability of Ground Water Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops 6313 [Ham] Cultivable Wasteland DISTRIBUTION OF LAND HOLDING Current Fallow Holding Area Classification of Holding Other Fallow Nos. % to Total Ha. % to Total Net Sown Area <= 1 Ha Total or Gross Cropped Area >1 to <=2 Ha Area Cultivated More than Once >2 Ha Cropping Inensity [GCA/NSA] 1.10 Total WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000] Cultivators 369 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 336 Population Agricultural Labourers 832 Scheduled Caste ### ####### ## ######### Workers engaged in Household Industries 38 Scheduled Tribe ## ######## # ########## Workers engaged in Allied Agro-activities 1 Literate Other workers 463 BPL 884 ### ####### 8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 804 Having brick/stone/concrete houses 450 Having electricity supply 748 Rural Households 683 Having source of drinking water 796 Having independent toilets 621 BPL Households 196 Having access to banking services 804 Having radio/tv sets VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 1490 Anganwadis 2788 Dispensaries 2 Villages having Agriculture Power Supply 1490 Primary Health Centres 107 Hospitals 788 Villages having Post Offices 1274 Primary Health Sub-Centres 557 Hospital Beds Villages having Banking Facilities INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools 1461 Fertiliser/Seed/Pesticide Outlets [Nos] 65 Agriculture Pumpsets[Nos] Villages having Primary Health Centres 107 Total N/P/K Consumption [MT] Pumpsets Energised [Nos] Villages having Potable Water Supply 1490 Certified Seeds Supplied [MT] 3973 Agro Service Centres [Nos] 22 Villages connected with Paved Approach Roads 1490 Pesticides Consumed [lts] Soil Testing Centres [Nos] IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 8039 Plantation nurseries [Nos] 4 Total Area Available for Irrigation (NIA + Fallow) Power Tillers [Nos] 3338 Farmers' Clubs [Nos] 317 Irrigation Potential Created Multicrop Threshers/Groundnut Strippers [Nos] 164 Krishi Vigyan Kendras[Nos] 1 Net Irrigated Area(Total area irrigated at least once) INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING Area irrigated by Canals / Channels 6648 Rural/Urban Mandi/Haat [Nos] 17 Wholesale Market [Nos] 17 Area irrigated by Wells Length of Pucca Road [Km] 844 Godown [Nos] Area irrigated by Tanks Length of Railway Line [Km] 180 Godown Capacity[MT] Area irrigated by Other Sources 102 Public Transport Vehicle [Nos] N Cold Storage [Nos] # ########## Irrigation Potential Utilized (Gross Irrigated Area) Goods Transport Vehicle [Nos] ##### ###### Cold Store Capacity[MT] 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS Type of Processing Activity No of units Cap.[MT] Avg. Yield Crop Food (Rice/Flour/Dal/Oil/Tea/Coffee) 444 Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) [Kg/Ha] Sugarcane (Gur/Khandsari/Sugar) 7 Paddy Fruit (Pulp/Juice/Fruit drink) 1 Maize Spices (Masala Powders/Pastes) Cumbu Dry-fruit (Cashew/Almond/Raisins) Blackgram Cotton (Ginnining/Spinning/Weaving) 28 Groundnut Milk (Chilling/Cooling/Processing) 2 Gingilee Meat (Chicken/Motton/Pork/Dryfish) 4 Sugarcane Animal feed (Cattle/Poultry/Fishmeal) 1 Sugarcane Production in Lakh MT 17. ANIMAL POPULATION AS PER CENSUS 2012 [in '000] 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES Category of animal Total Male Female Veterinary Hospitals/Dispensaries [Nos] Animal Markets [Nos] Cattle - Cross bred Disease Diagnostic Centres [Nos] Milk Collection Centres [Nos] Cattle - Indigenous Artificial Insemination Centres[Nos] 231 Fishermen Socities [Nos] 44 Buffaloes Animal Breeding Farms [Nos] 1 Fish seed farms [Nos] 33 Sheep - Cross bred Animal Husbandry Tng Centres [Nos] 1 Fish Markets [Nos] # ########## Sheep - Indigenous Dairy Cooperative Societies [Nos] 470 Poultry Hatcheries [Nos] Goat Improved Fodder Farms [Nos] 1 Slaughter houses [Nos] 36 Pig - Cross bred MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Pig - Indigenous Fish Production [Lakh Nos] Per cap avail. [gm/day] 356 Horse/Donkey/Camel Egg Production [lakh lts] 452 Per cap avail. [nos/p.a.] 15 Poultry - Cross bred Milk Production [lakh lts] 276 Per cap avail. [ml/day] 235 Poultry - Indigenous Meat Production [lakh] Per cap avail. [gm/day] Sources (if not mentioned against the respective item): Item Nos. 1, 6, 7, 9 & 10 - Latest Census ; Item Nos. 2, 3, 5, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of Agr./Water Resources; Item No. 8 - BPL Survey ; Item No District Ind Centre/Dir. of Eco. & Stat.; Item No DACNET; Item No AH Census ; Item Nos. 18 & 19 - Dir. of Animal Hus./Dir. of Eco. & Stat. -

8 Banking Profile District Villupuram State Tamil Nadu Lead Bank Indian Bank 1. NETWORK & OUTREACH (As on 31/03/2015) No. of No. of Branches No. of non-formal agencies assoiated Per Branch Outreach Banks/Soc. Total Rural Semi-urban Urban mfis/mfos SHGs/JLGs BCs/BFs Villages Households Commercial Banks Regional Rural Bank District Central Coop. Bank Coop. Agr. & Rural Dev. Bank Primary Agr. Coop. Society Others All Agencies DEPOSITS OUTSTANDING No. of Accounts of Deposit 31-Mar Mar Mar-15 Growth(%) Share(%) 31-Mar Mar Mar-15 Growth(%) Share(%) Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies LOANS & ADVANCES OUTSTANDING No. of Accounts of Loan 31-Mar Mar Mar-15 Growth(%) Share(%) 31-Mar Mar Mar-15 Growth(%) Share(%) Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies CD-RATIO 5. PERFORMANCE UNDER FINCIAL INCLUSION (No. of A/cs) CD Ratio During Cumulative 31-Mar Mar Mar-15 Deposit Credit Deposit Credit Commercial Banks 164% 149% 158% Commercial Banks Regional Rural Bank 111% 105% 118% Regional Rural Bank Cooperative Banks 156% 144% 136% Cooperative Banks Others 325% Others 0 0 All Agencies All Agencies PERFORMANCE TO FULFILL TIOL GOALS (As on 31/03/2015) Priority Sector to Agr. Sector to Weaker Sections under DRI Scheme to Women Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Average Target Ach'ment Target Ach'ment [Rs. Target Ach'ment Ach[%] in [Rs. '000] '000] [Rs. '000] last 3 years Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Average Broad Sector Target Ach'ment Target Ach'ment [Rs. Target Ach'ment Ach[%] in [Rs. '000] '000] [Rs. '000] last 3 years Crop Loan Term Loan (Agr) Total Agri. Credit Non-Farm Sector Other Priority Sector Total Priority Sector RECOVERY POSITION Average Rec. Demand [Rs. Recovery Demand [Rs. Recovery [Rs. Demand [Rs. Recovery [Rs. [%] in last 3 Recovery [%] Recovery [%] Recovery [%] '000] [Rs. '000] '000] '000] '000] '000] years Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies Sources : Lead Bank & SLBC