EXECUTIVE SUMMARY General

Transcription

1 EXECUTIVE SUMMARY I. General a. The Theme of the PLP is Accelerating the pace of Capital Formation in agriculture and allied sector. b. Gwalior district is situated in the Gird Zone sub-agro-climatic region, which falls under Regional Climatic Zone-VIII (Central Plateau and Hill Region) in Western part of Madhya Pradesh. It has 4 blocks with a total geographical area of 4564 sq. km. constituting 1.48 of the total area of the State. The normal rainfall of the district is mm per annum which precipitates in about 40 days. The district population (2011 Census) is lakh with 7.58 lakh in rural areas. The population below poverty line is 15.09%. The Gross Domestic Product (GDP) of the district during was 3.19% of the state GDP. The total irrigated area as a percentage to net sown area is 67.08%. c. Ground Level Credit Flow (GLC) - Total GLC of the district under priority sector which was crore during decreased to crore during and was increased to in The agricultural loans issued during the last three years 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 32.03% of the total agriculture lending during d. Highlights of banking benchmarks The district has 228 bank branches with 185 branches of Commercial Banks, 17 branches of Gramin Bank, 4 branches of DCARDB and 14 branches of DCCB. There are 76 PACS. The performance of banks in achieving the parameters stipulated by RBI was satisfactory under Priority Sector Advances. The CD ratio 40.10% is much lower than the desired 60% and is showing a declining trend. The Priority sector advances constituted 75.35% of the total loans and advances outstanding. Advances to Agriculture sector (21.28%), weaker sections (3.9%), and women (3.6%) were higher than the stipulated norms. Submission of LBRs by banks has been satisfactory at 100 %. Achievement under ACP at crore formed 100% of the target. The performance under Financial Inclusion viz. Pradhan Mantri Jan Dhan Yojana (PMJDY) was satisfactory, but in respect of other parameters like appointment of new BCs (after old BCs resignation) / number of transactions by BCs / effectiveness of most of the BCs / problem of no transaction in majority of the PMJDY accounts (resulting in inoperative accounts) etc. are unsatisfactory and much more effort, coordination and sensitisation is required. 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 Exhibit I. The potential has been assessed at crore as against crore for the year showing 10.85% growth over previous year. The potential under various sectors include crop loans crore, investment credit for agriculture comprising various sectors at crore, (Thus under agriculture sector crore of which ATL is 47.51%), MSME crore, Education crore and Housing crore. The potential has been assessed keeping in view the GoI/GoMP s priorities, existing/likely improvements in infrastructure, past GLC, revision in SoF/Unit Cost and various Govt. schemes. f. Some of the major constraints envisaged in achieving the potential assessed are inadequate extension support, delay in energisation of pump sets, lack of assured and quality power supply in rural areas, lack of post harvest facilities for horticulture crops, absence of milk routes in a major portion of the district, Mounting NPA of the banks. Forward and backward linkages such as quality planting material, post harvest facilities, organised marketing facilities for P & H and floriculture crops could trigger exploitation of latent potential for P & H sector in the district. 1

2 g. New Priority Sector Guidelines - RBI has revised the Priority Sector Lending (PSL) norms. Priority Sector has been classified into eight broad sectors viz. Agriculture, MSME, Export Credit, Education, Housing, Social Infrastructure, Renewable and Othe Social Infrastructure covering schools, health care, drinking water and sanitation facilities in tier II to tier VI centers have been brought under the ambit of PSL norms. As per the revised priority sector guidelines by the RBI, all loans to MSME will be classified as priority sector lending by banks. Taking these guidelines into account PLP has been prepared. h. MSME - Industrially, Gwalior is considered as one of the developed districts in the state, although a large number of industries are either closed down or are sick. There are 08 industrial areas functional in the district viz. Birla Nagar (old), Birla Nagar (new), Gospura, Baraghata, Maharajpura, Barai, Billaua and Chirwai. In these industrial areas ha land has been developed with 370 units in production. Till 31 March msme units were registered in the district. II. Thrust areas and Developmental Initiatives of NABARD a. In order to realise the theme envisaged in the document, viz., accelerating the pace of Capital Formation in Agriculture and Allied sector, two Area Based Schemes have been identified. The sectors identified are Dairy development and Handloom Development. Tentative banking plans have been prepared for these activities. An estimated amount of 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. III Infrastructure a. The district fares fairly well under some of the infrastructure indicators such as availability of transport vehicle, number of villages connected by roads, cropping intensity, literacy rate, etc. where the ranking of the district is better than the State average. However certain other indicators such as irrigation through surface water, rural literacy rate. etc., are lower than the State average. Incidence of poverty is lower than State average. Infrastructure facilities act as catalysts for development. Under RIDF as on 31 March 2015, 37 projects with a cumulative loan component of crore was sanctioned by NABARD for the district covering mainly Rural Roads and irrigation projects. b. In order to improve the credit off-take in the district, the State Govt may consider improving the various critical infrastructure identified in the district viz., setting up of soiltesting laboratories in each block, water testing laboratories, Milk Chilling Plants, Ripening Chamber, Cold Chains, strengthening the existing extension network, technology transfer, improving irrigation, popularisation of improved agricultural implements and machinery through demonstrations in farmers' fields, popularizing high density cropping systems, improving animal health care, activating/increasing the milk routes, establishment of poultry/fish hatcheries, establishment of fish markets, improving road network, uninterrupted power supply to the industries, etc. 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 ( Lakh) Sr No. Particulars PLP Projections A Farm Credit i Crop Prodution, Maintenance and Marketing ii Term Loan for agriculture and allied activites 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)

4 Appendix B to Annexure 1 Summary of Sector/Sub Sector wise PLP projections ( Lakh) Sr No Particulars PLP Projections I Credit Potentials for Agriculture A Farm Credit i Crop production, Maintenance and Marketing ii Water Resources iii Farm Mechanization iv Plantation and Horticulture v Forestry and Waste land development vi Animal Husbandry Dairy vii Animal Husbandry Poultry viii Animal Husbandry - Sheep, Goat, piggery ix Fisheries x Others Bullock, Bullock carts Sub Total B Agriculture Infrastructure i Construction of storage facilities Storage Godown / Market Yard ii Land Development, Soil conservation & Watershed Develop iii Others Tissue culture / Agri bio-tech /Seed production etc Sub Total C Ancillary Activities i Food and Agro Processing ii Others ACABC / FPOs etc 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 (PMJDY/SHG/JLG etc) VIII Social Infrastructure involvingbank Credit Total Priority Sector

5 BROAD SECTOR-WISE PLP PROJECTIONS DISTRICT MAP OF 5

6 20. Gross Domestic Product and Per Capita Income Gross Domestic Product of the state ( lakh) Gross Domestic Product of the district ( lakh) Share of district in Gross State Domestic Product 3.86 Per Capita Income in the state (Rupees) Per Capita Income in the district (Rupees) District Position in Per Capita Income (Ranking) Panchayat Raj Institutions in the district The Panchayat Raj System in the district consists of one Zila Panchayat, 4 Janpad Panchayat and 239 Gram Panchayat. The GP is at the lowest tier at the village level broadly looks after issues relating to water supply, collection of taxes, education, and repair/construction of village roads, street lights, and maintenance of records/census. The GPs can also involve and implement programmes with the support of financial institutions especially in micro finance, promotion of SHGs, promotion of farmers clubs, formation of JLGs especially for tenant farmers, creation of debt free village, issue of KCC, construction of individual rain water structures, construction of toilets, promote schemes of horticulture, plantation/map, fisheries, land development, farm mechanisation especially agriculture equipment etc. 22. Other important features of the district: The district is well known for its tourism. Gwalior fort, Sindhiya palace, Gujari Mahal, Saas Bahu temple, Tomb of Tansen etc are the major tourist attractions for domestic as well as foreign tourists. Cultivation of Wheat, Mustard, Gram, paddy, Animal Husbandry and MSME sector are the predominant economic activities in the district. Gwalior has a unique specialty regarding fast communication. It is on Delhi-Mumbai main line and Agra Jhansi road network. With increase in milk production in Gwalior and surrounding areas, many corporates & milk companies have started in investing in food processing units and purchasing milk for their units outside Gwalior. Mother Dairy, Maul, Paras, Sanskar, Nova, Deendayal and Sanchi brands are purchasing milk. Besides MP other states viz. U.P, Rajasthan and Maharshtra are also purchasing milk for their units. Vegetable cultivation, horticulture, floriculture and textile industry are also emerging sectors that may develop in the near future. India s second and State s first textile park is being set up in Gwalior. Special Area Development Authority (SADA), Gwalior has transferred 300 acres of land for this project in March World level textile park is likely to be completed by Total investment will be of the tune of Rs1000 crores creating employment opportunity for 30,000 people. Grey fabric, Technical textile, home furnishing, yarn dying fabric etc will be manufactured in this technically advanced park. 23. Summary: The connectivity of the districts with other part of the country is the biggest factor that is beneficial for the development of the district. State Governments canal projects are also helping in developing the district as rainfall in the district is less as compared to other parts of the country and that too in a very short span, water table is also falling, so water conservation and canal system, farm mechanization, larger land holdings, adoption of new techniques are the ways to develop agriculture further. 6