PLP Karimnagar EXECUTIVE SUMMARY

Transcription

1 EXECUTIVE SUMMARY The theme for the PLP is Accelerating the pace of capital formation in agriculture and allied sector. Taking cognizance of the theme of the PLP for the year , sector wise potential for credit deployment along with critical infrastructure gaps in the district has been assessed and presented. Karimnagar district falling in the northern part of newly carved Telangana state of India has a geographical area lakh hectare. The district is divided into revenue divisions viz., Karimnagar, Jagtial, Peddapally, Manthani and Siricilla covering 1207 villages, which are spread over 7 mandals. The population of the district as per 2011 census was lakh. The economy of the district is primarily agrarian with Gross Cropped Area of about 8.21 lakh hectares with cropping intensity of 160%. The average annual rainfall of the district is 966 mm. While most of the area is irrigated through bore and dug wells, considerable cultivated area of the district is being irrigated under major (SRSP) and medium (3) irrigation projects. The main crops grown in the district include Paddy, Cotton, Maize, Turmeric, Groundnut and Chilies. Mango and Sweet Orange are the major fruit crops. Of late, Banana, Papaya and vegetable cultivation are also picking up in the district. Silver filigree items making, stone carving, handloom and textiles, granite industry, milk processing units, rice mills, cotton ginning mills and other agro based industries apart from NTPC, Ramagundam and Singareni Collieries, Ramagundam are employing considerable working population in the district. The district is also emerging as the hub for Paddy seed processing due to conducive climate for Paddy production. With diverse cropping pattern and high level of irrigated area in addition to medium, micro and small enterprises and service sectors, Karimnagar district offers abundant scope for institutional credit, which needs to be exploited for the overall development. The district has a network of 296 branches of Commercial Banks, 86 branches of Telangana Grameena Bank, 47 branches of Cooperative Bank and 134 Primary Agricultural Cooperative Societies. Though there is enormous potential for extending credit in the district, the Ground Level Credit (GLC) flow is not encouraging. The GLC flow to priority sector stood at `39171 lakh as on , for the year as against the ACP target of `43631 lakh, recording an achievement of 79% over the target. During the corresponding year ending on 31 March 2014 in , the GLC was ` lakh i.e. there is increase in GLC for priority sector by 28%. The overall achievement under ACP (priority sector) during , and was 82%, 68% and 79%, respectively, indicating that the banks are unable to achieve the targets of ACP. During , the achievement of agriculture term loans including allied activities surpassed the ACP target. However, the achievement under Crop loans, MSME/NFS and OPS stood at 86%, 46% and 44% of ACP target, respectively. Non adherence to revised KCC norms by banks for crop loans, mounting NPAs, willful defaulters, effect of loan waiver announcements on recovery culture and non-availability of interest subvention to term loans, etc., may be attributed to decreased GLC in the district. However, concerted efforts are to be made by banks to achieve the targets. Special area based schemes with a view to improve credit flow for investment activities, which have potential in the district would be helpful in improving the GLC. During the year, , the overall CD ratio of the district stood at 73.% as compared to 81.8% in , indicating negative growth. Further, when compared to the state level CD ratio of 108%, the CD ratio of the district is low and there is lot of scope for improving the same. Base PLP was prepared for five years ( ), co-terminus with the XII five year plan period. The projections for the year have been revised considering the newly created infrastructure as also the revised unit cost in respect of few activities after closely analyzing the GLC and emerging credit needs in the district and duly taking into account of revised priority sector guidelines. The total credit potential for under priority sector for the district is estimated at ` lakh (as given in Annexure I). The projected potential is 24.7% higher than the estimated potential for the year

2 While preparing base PLP, it was assumed that there will be gradual increase in the cropped area in the district on account of the on-going/proposed irrigation projects. In the base PLP, it was assumed that the bankable GCA itself during would reach 8.38 lakh ha on account of different irrigation projects/ground water exploitation potential. However, the actual GCA could reach about 8.21 lakh ha with bankable GCA of.17 lakh ha, necessitating revision of projected potential for crop loans. However, thrust was given on investment credit with a view to achieve much needed capital formation in agriculture. Further, following the changes in the composition of priority sector, the composition of PLP has also been changed and presented under Farm Credit, Agriculture Infrastructure, Ancillary Activities, Micro, Small and Medium Enterprises (MSME), Export Credit, Education, Housing, Renewable Energy and Others. While the re-assessed potential for crop loans stood at ` lakh, the investment credit potential was estimated as ` lakh, which is about 2.1% of the total projected agriculture credit of ` lakh. The total size of revised PLP is ` lakh. Thus, about 71.17% of the total estimated credit potential of the district for the year is projected for agriculture and allied activities. The projected potential for Agriculture and MSME occupy the first and second place constituting 71.17% and 22.67% of total estimated potential for credit in the district. Education, Housing, Renewable Energy, Others and Social infrastructure (involving bank credit) constitute the balance potential of 6.16% of total estimated credit potential. After thorough sector wise analysis in consultation with line departments the projections under Animal Husbandry-Dairy development, Sheep and Goat Rearing, Farm Mechanization, Storage Godowns/Market yards, Plantation and Horticulture, Water resource and Land development have been upwardly revised. Government programmes and priorities of Government were taken into account while making projections. The critical infrastructure gaps, which need to be addressed to exploit the available credit potential under each sector were identified. The new innovative activities viz., artificial recharge of bore wells and dug wells, tube wells for eastern (soft rock) part of the district under water resources development; tank silt application and vermicompost units under land development; Eucalyptus and Milia Dubia plantation in wastelands; crop specific custom hiring centres under farm mechanization, network of rural godowns and cold storage units were also included in the projections under concerned sectors. Further, the end use of SHG loans was taken into account and they were segregated and distributed to respective sectors (like Dairy, Sheep and Goat, Other allied activities and petty trade/consumption loans). The potential assessed under MSME was ` lakh duly taking into account revised priority sector guidelines. The projected credit potential for Other Priority Sector including Education, Housing, Renewable Energy, Others and Social Infrastructure stood at ` lakh. Major constraints & Suggested action points: Major constraints identified are mono-cropping, indiscriminate use of fertilizers & pesticides, inadequate capital formation, poor recovery in Govt. sponsored programmes, shortage of scientific storage space & other marketing infrastructure etc. Non adherence to revised KCC norms and restricting majority of crop loans to `1 lakh. Slow pace of computerization of land records, lack of suitable JLG promoting agencies and lack of awareness about NWR financing. Non-availability of quality inputs & minimum support price to farmers. Considering the land holding pattern and also the problem of fragmented holdings, banks may have to promote JLGs and extend credit facility to tenant farmers/sharecroppers and marginal farmers. Govt. may encourage organic farming practices so as to reduce the excess use of fertilizers and pesticides by farmers. 2

3 Technology innovations in crop production & management SRI paddy, use of drum seeder, boom sprayer etc. Large scale promotion of efficient water management practices. Scientific storage, supply chain management & market linkages. Dairy loans to be encouraged on a large scale with tie up arrangements with Milk Cooperative societies and SHGs. Credit flow for dairy, sheep farming and other allied activities are to be supported for supplementary income to farmers. Collective recovery effort by banks together with Govt. departments and development agencies is suggested. Establishment of scientific storage facilities close to farms. Post harvest credit facilitation by way of pledge finance against Negotiable Warehouse Receipts (NWRs). Use of renewable sources of energy particularly for solar power & financing by banks for solar systems. to MSME sector under CGTMSE and motivating units to avail grant under technology upgradation scheme. NABARD has taken up many developmental initiatives viz., 27 watershed development projects under WDF & IGWDP and 2 TDF projects and banks are expected to meet the credit needs in the treated watershed and tribal development projects. Other initiatives including promotion of JLGs, godown accreditation and technology interventions through farmers clubs would have direct bearing on the credit flow. Under its new initiative PACS as Multi Service Centre, NABARD has sanctioned loan of `23.0 crore to 28 Primary Agriculture Cooperative Societies (PACS) through Karimnagar DCCB for lending to their farmer members. The objective was to make PACS as one stop shop catering to the credit and non-credit needs of their members. Further, 149 projects with loan amount of ` crore related to infrastructure development viz., roads & bridges, irrigation, schools/colleges, veterinary units, anganwadi centres and rural water supply, etc, are supported by NABARD in Karimnagar district. These projects are supported by providing loan to State Government under RIDF. Of these, 936 projects are completed and the balance 23 projects are on-going. With these projects, the critical infrastructure has been created in the district, which has direct bearing on the credit flow in the district. Concessional refinance to banks, regular revision of unit cost of investment credit activities by seeking proposals from line departments, organizing workshops to banks on JLG mode of financing and improving investment credit for Agriculture, supporting financial literacy centres and organizing financial literacy camps etc., by NABARD are helpful in increasing the credit flow. Further four Area Development Programmes (ADPs) on integrated dairy (Grameena bank specific and watershed centric) in watersheds, Dairy development through women JLGs, Solar Pumping units and Sheep farming with the objective of enhancing credit flow were launched. Thrust areas for Thrust areas for for capital formation in Agriculture in the district include Animal Husbandry- Dairy development, Sheep & Goat rearing, Farm Mechanization, Storage godowns, Water resource development, Plantation and Agro-Processing, etc. The financing through JLG / SHG mode, Producer Organizations, NWRs, area based schemes etc., need to be accorded priority. Further proper reporting by banks about GLC flow and strengthening of SAMIS, better monitoring and review at BLBC and DCC meetings, effective implementation of Financial Inclusion plans including coverage of Oral Lessees, Tenant Farmers through JLGs, etc., are suggested for overall development of the district. Further, 3

4 Polyhouse cultivation of high value crops, pandal based vegetable cultivation, micro-irrigation, plantation in wastelands, seed processing, fisheries, handlooms and textiles etc., are emerging as areas for institutional credit with pro-active Government policies and interventions of NABARD through refinance, RIDF and WIF assistance and other developmental initiatives. Concluding remarks To realize the assessed institutional credit potential available under priority sector, better coordination from line departments and banks, proper extension and technology transfer support to farmers and addressing the key issues by Government are envisaged. Better monitoring and review in JMLBC and DCC meetings and implementation of ADPs in true spirit would be helpful in enhancing the credit flow. 4

5 S.No. Appendix A to Annexure 1 Broad Sector wise PLP projections Particulars (` lakh) PLP projections A Farm Credit i Crop Production, Maintenance and Marketing ii Term Loan for Agriculture and Allied activities 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) #Export credit is handled at concerned Bank Zonal/Controlling Offices at Hyderabad. Hence, block wise projections are not shown at district level and in Annexure I.

6 Appendix B to Annexure 1 Summary of Sector/Sub-sector wise PLP projections : S.No. I II A Credit Potential for Agriculture Farm Credit Particulars (` lakh) PLP projections i Crop Production, Maintenance and Marketing ii Water Resources iii Farm Mechanisation iv Plantation and Horticulture v Forestry and Waste Land Development vi Animal Husbandry Dairy Development vii Animal Husbandry Poultry Development viii Animal Husbandry Sheep, Goat and Piggery Development B C ix Fisheries Development x Others Sub Total (A) Agriculture Infrastructure i Construction of storage facilities ii Land Development, Soil conservation, Watershed development iii Others 4.37 Sub Total (B) Ancillary activities i Food and Agro processing ii Others Sub Total (C) Total Agriculture (I=A+B+C) Micro, Small and Medium Enterprises i MSME - Working Capital ii MSME - Investment Credit Total MSME (II) III Export Credit@ IV Education V Housing VI Renewable Energy VII Others VIII Social Infrastructure involving bank credit Total Priority Sector (I to VIII) credit dispensed at port centre 6

7 DISTRICT PROFILE The geographical area of the district is lakh hectares. The district has 7 mandals covering 1207 villages. The district is divided into revenue divisions viz., Karimnagar, Jagtial, Peddapally, Manthani and Siricilla. The average annual rainfall of the district is 966 mm. The major types of soils in the district are loam & sandy loam, which constitute 90% of the area and the remaining 10% of total geographical area comes under Black Cotton soils. The population of the district as per 2011 census was lakh, of which the share of rural and urban population was at 7% and 2%, respectively. The Scheduled Caste (SC) population in the district is 7.09 lakh and the Scheduled Tribe (ST) population is 1.06 lakh which forms 18.8% and 2.8%, respectively, of the district population. The overall literacy rate of the district is 64%. There are 2 Agriculture Market Committees (AMCs) and 19 Sub-yards with Paddy, Maize and Cotton as major arrivals into the AMCs of Karimnagar district. The GDDP of Karimnagar district for the year at current prices is ` lakh constituting 10.3% of Telangana state GDDP of ` lakh. The per capita income for the year stood at `9089, while the state average being `9361. The share of Agriculture, Industry and Service sectors in the GDDP of the district for the year stood at 2, 27 and 48%, respectively. Agriculture is the main stay of the economy of Karimnagar district with average Gross and Net Cropped area of 8.21 lakh ha and.13 lakh ha, respectively. The Godavari and the Manair, a tributary of Godavari flow through the District. The Sri Ram Sagar Project (SRSP) is the major irrigation project in the District, while upper Manair, Boggulavagu and Shanigaram projects are the Medium irrigation sources. The major source of irrigation in the district is bore wells and dug wells which contribute to 8% of the total irrigated area followed by canals (30%) and tanks and other sources (12%). The gross irrigated area and net irrigated area is.14 lakh ha and 4.00 lakh ha, respectively. 87% of the farmers are small and marginal in the district. While about 8% of the farmers are tenant/share croppers, 1% of the population works as agriculture labour. Paddy, Maize, Cotton, Turmeric, Groundnut and Chilies are the major crops grown in the District. Mango and Sweet Orange are the major fruit crops. Karimnagar district bestowed with rich mineral wealth and natural resources is offering scope for activities like Silver filigree items making, stone carving, handloom and textiles, granite industry, milk processing units, rice mills, cotton ginning mills and other agro based industries apart from NTPC and Singareni Collieries, Ramagundam, which are employing considerable working population in the industrial sector. The district is also acting as the hub for seed processing industry particularly for Paddy seed due to conducive climate for Paddy production. Poly house cultivation of high value crops, pandal based vegetable cultivation, farm mechanization, micro-irrigation, dairy development, sheep farming and seed processing, fisheries, handlooms and textiles etc., are emerging as areas for institutional credit. The issues critical to the district are crop diversification, seed production and processing, soil health improvement, improving the credit flow for investment activities particularly in the areas of dairy development, farm mechanization, rural godowns and renewable sources of energy, better extension, supply of reliable electric power supply etc. The major factors which would have impact on credit flow are transfer of technology, finance to tenant farmers through JLG mode, creation of scientific storage facilities, financing to MSME, financing against NWRs, post-harvest management, expansion and increased coverage of banking facilities and financial inclusion etc. The major gaps in the district which need to be addressed by Government that would help in multipronged development of the state include issue of LEC to eligible farmers, computerization of land records, formation and bank linkage of tenant/oral lease, small and marginal farmer and activity (like dairy or weavers/artisans) oriented JLGs, income generation activities for SHGs, thrust on ground water recharge, incentives and tax benefits for MSME, pro-active policy for promotion of renewable energy and revival of mandal and district level recovery committees, etc. 7

8 District Profile District - Karimnagar State - Telangana Division - North Telangana 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) No. of Sub Divisions Agro-climatic Zone North Telangana No. of Blocks 14 Climate Tropical No. of Villages 1207 No. of Panchayats Soil Type Sandy loam & red soils interspersedwith BC soils in 6:3 ratio 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported Normal Actual Forest Land Rainfall [in mm] Area Not Available for Cultivation 9963 Variation from Normal (-)0.6% (+)32.6% (-) 1.0% Permanent Pasture and Grazing Land Availability of Ground Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops 1079 Water [Ham] Cultivable Wasteland 269. 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] % 160 Total WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000]@ Cultivators 600 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 24 Population Agricultural Labourers 72 Scheduled Caste Workers engaged in Household Industries 2 Scheduled Tribe Workers engaged in Allied Agro-activities 19 Literate Other workers 39 BPL 8. HOUSEHOLDS [in '000) 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 976 Having brick/stone/concrete houses NA Having electricity supply NA Rural Households 68 Having source of drinking water NA Having independent toilets NA BPL Households 293 Having access to banking services 623 Having radio/tv sets NA 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 103 Anganwadis 3382 Dispensaries 4 Villages having Agriculture Power Supply 103 Primary Health Centres 70 Hospitals 14 Villages having Post Offices Primary Health Sub-Centres Hospital Beds 31 Villages having Banking Facilities INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Agriculture Villages having Primary Schools Fertiliser/Seed/Pesticide Outlets [Nos] 122/61/ Pumpsets[Nos] Villages having Primary Health Centres 70 Total N/P/K Consumption [MT] Pumpsets Energised [Nos] Agro Service Centres Villages having Potable Water Supply 103 Certified Seeds Supplied [MT] [Nos] Villages connected with Paved Approach Roads 103 Pesticides Consumed [MT] 12 Soil Testing Centres [Nos] Agriculture Tractors [Nos] IRRIGATION COVERAGE [Ha] 9061 Plantation nurseries [Nos] CENSUS Total Area Available for Irrigation (NIA + Fallow) Power Tillers [Nos] 3760 Farmers' Clubs [Nos] 298 Krishi Vigyan Irrigation Potential Created Threshers/Cutters [Nos] 4 Kendras[Nos] Net Irrigated Area(Total area irrigated at least once) INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING 2 Area irrigated by Canals / Channels 6720 Rural/Urban Mandi/Haat [Nos] 34 Wholesale Market [Nos] 2 Area irrigated by Wells Length of Pucca Road [Km] 836 Godown [Nos] 223 Area irrigated by Tanks Length of Railway Line [Km] 172 Godown Capacity[MT] Area irrigated by Other Sources 1999 Public Transport Vehicle [Nos] Cold Storage [Nos] 1 Irrigation Potential Utilized (Gross Irrigated Area) Goods Transport Vehicle [Nos] 703 Cold Store Capacity[MT] 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) Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) [Kg/Ha] Sugarcane (Gur/Khandsari/Sugar) Rice Fruit (Pulp/Juice/Fruit drink) Maize Spices (Masala Powders/Pastes) Cotton* Dry-fruit (Cashew/Almond/Raisins) Pulses Cotton (Ginnining/Spinning/Weaving) 3 Groundnut Milk (Chilling/Cooling/Processing) Turmeric Meat (Chicken/Motton/Pork/Dryfish) Vegetables Animal feed (Cattle/Poultry/Fishmeal) *Production of Cotton is in bales (177.8 kg per bale) and its productivity is in bales per hectare Turmeric polishing ANIMAL POPULATION AS PER CENSUS 2012 [in '000] 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES Veterinary Hospitals/Dispensaries Category of animal Total Male Female 28 Animal Markets [Nos] 11 [Nos] Milk Collection Centres Disease Diagnostic Centres [Nos] Cattle [Nos] Artificial Insemination Centers [Nos] 244 Fishermen Societies [Nos] 496 Buffaloes Animal Breeding Farms [Nos] - Fish seed farms [Nos] Sheep Animal Husbandry Tng Centres [Nos] 2 Fish Markets [Nos] 2 Dairy Cooperative Societies [Nos] 672 Poultry hatcheries [Nos] 2 Goat Improved Fodder Farms [Nos] 1 Slaughter houses [Nos] MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Pig Fish Production [MT] Per cap avail. [gm/day] 26 Horse/Donkey 87 Egg Production [Lakh Nos] 7110 Per cap avail. [nos/p.a.] Poultry - Cross bred Milk Production ['000 MT] 791 Per cap avail. [gm/day] 67 Poultry - Indigenous Meat Production [MT] 4466 Per cap avail. [gm/day] Sources (if not mentioned against the respective item): Item Nos. 1, 6, 7, 9 & 10 - Census 2001;1 and 2001 Item Nos. 2, 3,, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of Agr./Water Resources; Item No. 8- CPO, Karimnagar; Item No. 1 - District Ind Centre/Dir. of Eco. & Stat.; Item No DACNET; Item No. 17 & 18 AH Dept; as per 2011 census 8

9 BANKING PROFILE District - KARIMNAGAR State - TELANGANA Lead Bank - STATE BANK OF HYDERABAD 1. NETWORK & OUTREACH (As on 31/03/201) No. of Branches No. of non-formal agencies assoiated Per Branch Outreach No. of mfis/ Banks/Soc. Total Rural Semi-urban Urban SHGs/JLGs BCs/BFs Villages Households mfos Commercial Banks Regional Rural Bank Nil District Central Coop Nil 830 Nil 36 Bank Coop. Agr. & Rural - Nil Nil Nil Nil Nil Nil Nil Nil Nil Dev. Bank Primary Agr. Coop Nil Nil Nil Nil Nil 8 Society Others 2 9 Nil Nil 9 Nil Nil 3 Nil - All Agencies DEPOSITS OUTSTANDING No. of accounts Amount of Deposit [`.lakhs] 31-Mar Mar Mar-1 Growth (%) Share(%) 31-Mar Mar Mar-1 Growth(%) Share(%) Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies LOANS & ADVANCES OUTSTANDING No. of accounts Amount of Loan [`.lakhs] 31-Mar Mar Mar-1 Growth (%) Share(%) 31-Mar Mar Mar-1 Growth(%) Share(%) Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies CD-RATIO. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs) CD Ratio During Cumulative 31-Mar Mar Mar Mar-1 Deposit Credit Deposit Credit Commercial Banks Commercial Banks Regional Rural Bank Regional Rural Bank Cooperative Banks Cooperative Banks Others Others All Agencies All Agencies 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/201) Priority Sector to Agr. Sector to Weaker under DRI Scheme to Women Amount [Rs. Lakhs] Amount [Rs.Lakhs] Amount [Rs.Lakhs] Amount [Rs.'Lakhs] Amount [Rs.Lakhs] Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Average Ach in last 3 years Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Average Broad Sector Ach in last 3 years Crop Loan Term Loan (Agr) Total Agri. Credit Non-Farm Sector Other Priority Sector Total Priority Sector