ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE :: KADAPA. Circular No BC-CD Date:

Transcription

1 [[ ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE :: KADAPA Circular No BC-CD Date: ROLE OF NABARD IN WATERSHED MANAGEMENT AND EMERGING BUSINESS OPPORTUNITIES FOR BANKS Branches/Offices are aware that National Bank for Agriculture and Rural Development has been implementing Watershed Development Projects at different parts in the operational area of the Bank. The details of the projects and the emergence of credit opportunities during the execution and post phase of watershed development projects are explained in the Annexure. Branches/Offices are advised to meet the credit requirements of the beneficiaries under the watershed projects duly observing the lending norms in force from time to time. Regional Offices shall furnish the details of watershed projects implemented/being implemented in their Regions to branches by obtaining details from concerned District Development Manager, NABARD. Clarifications, if any, on this circular, may be sought from HO-Credit Department, Kadapa. (K.PREETAM LAL) CHAIRMAN 1

2 ANNEXURE to Cir.No BC-CD dated Role of NABARD in Watershed Management and Emerging Business Opportunities for Banks As a developmental financial institution, NABARD has carved a niche for itself through its dynamic leadership. NABARD simultaneously has taken up many developmental initiatives and obtained excellent results which were well appreciated. One such developmental initiative is in the field of watershed development. In this article NABARD s role in watershed development and the emerging business opportunities for banks is presented and discussed. 1. Watershed Development Projects implemented by NABARD NABARD is implementing the following Watershed Projects in the country. i. Indo German Watershed Development Projects in Maharashtra, Andhra Pradesh, Gujarat and Rajasthan. ii. iii. iv. Watershed Development Funds (WDF). Integrated Watershed Development Programme (IWDP) in South Bihar. Kutch Drought Proofing Project (KDPP) in Gujarat 2. Watershed Development Watershed development refers to the conservation, regeneration, and judicious use of human and natural resources (such as land, water, plants, animals) within a watershed. Watershed development attempts to bring about the balance in the environment between natural resources on one side and man and grazing animals on the other. People s participation is key component as conservation of natural resources is possible only through their wholehearted involvement and support. 3. Objectives of Watershed Development To develop micro-watersheds in a comprehensive manner, so as to create adequate and sustainable livelihood opportunities for the inhabitants of that area. To catalyze the information of village groups for regeneration of their degraded environment through participatory self help initiatives. To strengthen people s movement for sustainable economic development. 2

3 4. Unique Features/Strategies adopted in NABARD watershed projects The unique features of the project are as under: Self Selection The people s commitment decides inclusion or otherwise of a watershed in the programme. Shramdan Four days of qualifying shramdan (voluntary labour) and 16% commitment by way of labour. Ban on Free Grazing and Tree felling (Cherai Bandhi, Kurhad Bandhi) Communities undertake to ban free grazing of animals in treated areas and felling of trees. Capacity Building Phase (CBP) A part of watershed project is implemented to build up their confidence to take up the project and testing cohesion among villagers. It is learning by doing. Net planning (Survey number wise) & Land use planning Each and every farmer plans for treatment based on land capability / land use. Women s Participation for drudgery reduction, capacity building and undertaking income generating activities, besides empowerment in decision making. Maintenance Fund for future repairs and maintenance of structures. 50% of the fund should be utilised for on lending to farmers/group of farmers for undertaking economic activities. 5. Implementation I. Project phases: The entire project cycle consists of mainly three phases Qualifying Shramdan (QS), Capacity Building Phase (CBP) and Full Implementation Phase (FIP). The QS is a self selection process by watershed community where the community has to demonstrate a measurable work related to natural resource management. The quality of work is equivalent to 4 labour days per household. The CBP is to capacitate the watershed community to take up the watershed implementation in a participatory way and in a transparent manner. The purpose of CBP for a period of 12 to 18 months covering an area of around 10% of total watershed area. On successful completion of CBP, the project graduates into FIP to implement the watershed development work in remaining 90% of the area. Besides soil and water conservation works this phase equally focuses on productivity enhancement in agriculture, biomass and livestock development, managing natural resources and maintaining the assets created under watershed development programme and livelihood security with a focus on poorest of the poor and poor women. This phase runs for a period of months. 3

4 II. Stakeholders: While the primary stakeholder is the watershed community, other stakeholders in the project are: Project Steering Committee (PSC) consists of the representatives from GOI, GOAP, NABARD, etc. It is responsible for sanction and overseeing the progress of implementation of projects. Programme Support Unit (PSU/Project Management Unit (PMU) of NABARD S Regional Office is responsible for anchoring the programme including sanction and release of funds to watershed communities and facilitating agencies, monitoring the progress and coordinating with other departments/agencies for convergence and development of sustainable and replicable model projects. Resource Support Organisations (RSO) support the Project Facilitating Agencies, Village Watershed Development Committees (VWDCs) and watershed community to build their capacities for successful implementation of the programme. Project Facilitating Agencies (PFAs) are NOGs to facilitate the watershed development projects by actively involving at the watershed village level. Village Watershed Development Committee (VWDC): is the executive body of the watershed evolved on a consensus of community. It represents all social groups in the villages, including women (30%) and landless. VWDC, a registered body will act as a actual Project Implementing Agency (PIA). III. Thematic areas of work: During the course of implementation of projects, it was felt that the watershed development programme needs to focus on productivity enhancement, livestock, livelihoods of the poorest of the poor, etc., in addition to effective soil and water conservation measures from ridge to valley. This shift was primarily owing to crisis in the farming in distress districts and learning s emerged from other programmes. In order to address these issues which have caused distress to farmers in four districts in a holistic manner, planning for agriculture development, livestock development, providing livelihoods to the poor and reducing the usage of harmful chemicals in agriculture, apart from normal soil and moisture conservation measures are included under the programme. The thematic areas of work are listed below. 4

5 a. Institution Building and Strengthening: The programme works with already existing groups in watershed villages and promotes and strengthens the community based institutions like User Groups (UG), Labour Groups (LG), Common Interest Group (CIG) to plan for their activities and to realise their plans. The representatives of these institutions form a General body of watershed which anchors the watershed project including, deciding priorities and implementation of social norms etc. The village watershed committee formed out of representatives of Watershed General Body based on the roles evolved to manage Watershed Development Project acts as implementing agency and manage watershed development project. b. Soil and Water Conservation Measures: The User Group based participatory Net Planning process is basis for taking up these measures. The works are carried out in a comprehensive manner following Ridge to Valley approach. The low cost works with local material are given priority in taking up works in both private and common lands. The soil and water conservation measures are divided into two broad groups namely: area treatment including alternate land use practices and drainage line treatment referring to those carried out on the drainage line of each watershed starting from first order nala. c. Productivity Enhancement Plans Agriculture: The participatory analysis of agriculture systems including seed systems, cropping pattern, soil fertility and pest management etc., is the basis for taking up several interventions through UGs and CIGs. Production and use of organic manures (green manure, Azolla bio-fertilizer, compost and vermicompost, etc.), risk mitigation through intercropping and crop rotation, seed production and multiplication, demonstration of Non Pesticide Pest Management initiatives in Cotton, NPM shops, promotion of System of Rice Intensification (SRI), crop diversification (shifting from high water consuming Paddy/Cotton to vegetable cultivation and pulses/oil seed) and water sharing and water management (including use of efficient water application methods like drip and sprinkler irrigation systems) are some of the initiatives, which are successfully grounded in the project areas. Further, indigenous seed and local saplings (of forest, dry land horticulture and fodder trees) collection, low cost seed dibbling and plantation are taken up in place of afforestation (on bund)/gap filling low cost pitcher and plastic bottle irrigation for fruit plants in dry lands was also initiated. d. Livestock and Fisheries Development: The livestock interventions such as fodder development, drinking water facilities and the service gaps such as health care, vaccination and breeding services are targeted in the project. Fisheries are being developed in the perennial tanks of the project villages to improve fishery productivity, with a view to enhance income of dependent communities. Para workers for Agriculture and Livestock from watershed community are identified and trained to provide basic services at watershed level. 5

6 e. Convergence with other programmes: Supplementary investments from main stream government programmes are seen as a good opportunity for enhancing the overall budget availability for watershed development. It also helped in strengthening linkages with government departments. The successful initiatives include convergence with National Agricultural Innovation Project (NAIP) of CRIDA, Hyderabad for productivity enhancement and crop diversification; social regulation in water management by Centre for World Solidarity (CWS); Vaccination of animals and fodder development with the support from Department of Animal Husbandry, Government of Andhra Pradesh; and efficient water management by linking with Andhra Pradesh Micro-Irrigation Project (APMIP), etc. Recently efforts are made for linking the watershed villages with KVKs, Dept. of Agriculture/Horticulture and ANGRAU for better extension support and with banks for credit support. f. Livelihoods: The livelihood interventions are focused on vulnerable groups like poorest of the poor, poor and women, who are identified through PRA exercises at the watershed level. The income generating activities so far supported include nursery development, dairy (milch animals), sheep and goat rearing, poultry, retail shops, tailoring, leaf plate making, facilitating landless to take land on lease basis for vegetable cultivation and vending, NPM shops, drying sheet (Tarpaulin) business, flour mills etc. g. Capacity Building: The project follows the CB strategy developed for the project. The capacity building includes communication campaigns in project villages, exposure visits, developing modules for trainings, conducting trainings and cross visits various stakeholders involved in the project. 6. Impact of Watershed Development Programmes: The overall impact due to implementation of watershed development projects is furnished below: There are no distress situations reported in watershed project areas. Drinking water scarcity in the villages has been overcome. Villages which used to see off-season migration, now report no or minimum migration. There are secondary effects, like visible improvements in housing and improvement in school attendance. Increased number of wells with perennial water and a rise in the water levels of almost all wells. 6

7 Increase in agricultural production: Increase in area under cultivation under Rabi, increase in Kharif output, diversification of cropping (e.g. to horticulture) and reduction in yield fluctuations. Improvement in the condition of the landless due to continuous wage availability during project implementation. Improvement in the green cover, grass production and dairy. Demand for credit has gone up significantly. With strong community involvement, loan repayment has improved. 7. Major Learning s: The major learnings of the programme are: People s participation is an essential component of watershed development. Villages need to contribute their stake/share (voluntary labour, etc.) and feel the ownership of the project. Creating people s organisations like Village Watershed Committee (VWC) for planning, implementation and maintenance is a must for success and sustainability. Having a pilot phase is a proof-test for the abilities and motivation of community and NGO during the CBP phase which will insure against future chances of failure. Women and landless need to be integrated into the project design appropriately. Technical considerations and skills for soil and water management, based on ridge-to-valley principle can be understood by villages through learning-bydoing, demonstration/exposure visits etc. The village community manages the funds through the VWC. Timely availability of funds is a critical requirement for watershed projects. To reap optimum benefit, people in the watershed area should be encouraged to take up various livelihood / economic activities concurrently with the implementation of watershed projects. No agrarian distress reported in the developed watershed villages. 7

8 8. Emerging credit demand and business opportunities for Banks: NABARD has been implementing watersheds projects under various programmes in different parts of the country. An estimated area of about 1.72 million ha is being covered under the programmes involving total outlay of about Rs.1551 crore. While some of the projects are completed, majority are in full implementation phase. The experience of implementation of the projects over the years has shown that next logical step after regeneration of natural resources would be to ensure provision of a range of support services including credit, extension, technology, marketing, etc with credit being significant. Project activity Expected Project Output Resultant credit demand I. Project Works: i) Watershed brought under cultivation. Area treatment activities like bunding and trenching ii) Improved soil moisture, reduced soil erosion and water logging, yield stabilization and risk mitigation for existing area under cultivation. i) Offers scope for fresh credit for the area brought under cultivation. ii) Scope for taking up crop production activity with better management practices higher investment needing credit. iii) Scope for crop loan for second crop. iv) Scope for offering marketing loans. Conservation measures Water harvesting measures (PTs, MPTs, Stone/Earthen GPs and area treatment works) Plantation and horticulture promotion i) Improved soil moisture even in fallow land. Raise in water table. i) Improved vegetative cover arresting run off and soil erosion. 8 v) Scope for financing minitrucks, autos, trolleys for transport of produce (services) Scope for financing dairy activity. Financing small ruminants. Fodder cultivation. Other dairy infrastructure. Vegetable cultivation. Pulse/oil seed crops Besides production credit, scope for investment credit for farm machinery, efficient pump sets and micro irrigation, etc. i)scope for financing plantation activity (up scaling) ii) Scope for financing intercrop iii) Scope for financing micro irrigation. iv) Scope for financing fencing activity v) Scope for financing value

9 Productivity enhancement measures II.Community Development: Organising VWDC Improved yields and higher incomes Strong community based institution with broader acceptance. addition activities (Ex. Pickle marketing). As the project interventions are limited to demonstrative purposes, credit demand for scaling up Ex. SRI, NPM, Vermicompost units, sprinkler sets, Azolla development etc. VWDC can be supported as BC/BFs VWDC platform can be leveraged for enforcing better credit discipline and old dues. Formation of User Groups and CIGs. Formation of women SHGs/ CIGs III. Village Development i) Facilitating Village Development through NRM. ii) Bringing convergence among various actors. iii) Empowered village community Local groups with strong dynamics Mature Women groups capable of taking up economic activities. Vibrant village with improved social and economic status. Acceleration in accrual of various benefits. Village willing to take up various developmental initiatives Income Generating Activity for VWDC Ex. Nursery, tent house, fertilizer dealership etc. Can be organized as JLGs/Activity based groups for credit expansion. Scope for financing women SHGs for various activities. Ex. Nursery, tailoring units. Increase in credit demand for a range of service sector and retail sector activities. Various sponsored programmes of line departments and State Govt. need credit linkage. Village with better credit discipline to offer better business opportunities for banks. To meet the emerging credit needs in the project areas in an effective manner it is essential that major stakeholders like VWDC, PFAs and Banks work in tandem and formulate watershed based credit plans for implementation over a period. This needs better understanding of credit requirements of watershed community which can be facilitated by regular interaction between the community and branch officials. The filed officials of banks may attend the meeting of VWDCs to make an assessment of credit requirements and meet the same subject to satisfaction of various terms and conditions. A coordinated approach among various stakeholders would a go a long way in providing the financial services in the project areas and pave way for integrated development of the rainfed areas. -oooooo- 9