Executive Summary. State Focus Paper Tripura

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1 Executive Summary 1. Introduction The State Focus Paper (SFP) presents a comprehensive picture of the credit potential estimated in various sectors of the rural economy as reflected in the Potential Linked Credit Plans (PLPs) prepared by NABARD for all the districts of the state of. The document also highlights the national priorities as well as constraints and issues pertaining to different sectors, the suggestions for improving infrastructure support system and adoption of appropriate technology which will result in augmented credit flow for achieving better inclusive growth for the state. The document presents a broad framework for taking forward the development initiatives of the state as well as institutional financial system for proper deployment of resources with specific focus to Accelerating the pace of capital formation in agriculture and allied sector. Although credit projections have been worked out earlier for all the years of the 12 th Five Year Plan, however, this is subject to review before commencement of the respective years. As regards projection of , there was a felt need to upscale the projections for the year based on perceived changes of the rural economic scenario with 100% household inclusion under the banking system as well as supportive infrastructural and technological advancements. 2. State Profile Besides being the 3 rd smallest State in the country in terms of area, 84% of the State is surrounded by Bangladesh, thus limiting the movement to other parts of the country. However, the State is blessed with good rainfall (normal rainfall being 2242 mm per annum), abundant ground water, fertile soil, extremely rich bio-diversity etc. Some of the important highlights of the State profile are as under: a) There is one agro climatic zone in the State. b) Out of the total population of 36,73,917 (as per 2011 census), the SC and ST population constituted 17.8% and 31.75% respectively. The population density of in 2011 was 350 persons per km 2, as against the All India Population density of 324. The sex ratio had improved from 948 (per 1000 males) in 2001 to 961 in c) One of the positive features of the State is high literacy. The literacy rate had increased from 60.44% in 1991 to 73.20% in 2001 and further to 87.22% in The corresponding figures for males and females were 91.5% and 82.7% respectively in The gap in male-female ratio in the literacy has been reduced to 8.8% in 2011 as against 17.01% in Further, as per the recent study conducted by the Indian Statistical Institute (ISI), Kolkata, the literacy rate stands at 95.16% in The literacy rate amongst SC & ST population was 89.45% & 79.05% respectively. The state achieved a high level of literacy and ranked third at all India level after Kerala and Mizoram in d) As regards poverty, the State fared better compared to other States. The poverty rate, for the state as a whole, improved from 40.6% (37.2% all India) in to 14.05% (21.9% all India) during ). e) 60% of the total Geographical Area is covered by forests and only 27% of land is available for agriculture. The cropping intensity during stood at 186%. f) The average size of the land holding decreased from 1.25 ha from to 0.97 ha in to 0.56 ha in 2001 and further to 0.49 ha in 2011, as against the all India average of 1.16 ha.(agri. Census ). The share of SF/MF in total holdings was 6

2 95% against national average of 85.01%. About 75% area of total land holdings was operated by the SF/MF. g) One of the disturbing factors is reduction in number of cultivators and agricultural labourers over the years. While the percentage of cultivators had come down from 38.09% (of the total workers) in 1991 and 26.88% in 2001 to 22.9% during 2011, that of agricultural labourers (out of total workers) had come down from 25.7% and 24.03% to 18.74% during the reference period. h) The annual run off in the State from the 6 rivers viz., Gomati, Howrah, Dhalai, Muhuri, Feni and Juri which originate/run through the State is estimated at 7, 61,600 hectare metre of which 1, 50,800 ha-m can be harnessed for irrigation purposes. Out of the total estimated irrigation potential of 1,40,383 ha, the total irrigation potential created, as on stood at 1,12,806 ha of which the net potential utilised was 77,930 ha. i) Of the two major sources of power generation, gas based thermal power accounts for 93% while remaining 7% is generated from hydel power (Gomati Power Project). On commissioning of Unit-I of Palatana power project, a gas based thermal power project commissioned by OTPC (ONGC Power Corporation) has become a power surplus state. The Project has the initial production capacity of MW. It is one of the biggest projects in NER and is expected to stimulate economic growth of the region. It is also expected to export surplus power to Bangladesh. j) The need for basic infrastructure is immense on account of the geographical location as well as underdeveloped infrastructure. The State is isolated within the country and needs modern and reliable methods of communication and transport facilities to remain connected with the rest of the country, and particularly with trade centres such as Kolkata and Guwahati. k) About 52% of population of is dependent on agriculture. Small and marginal farmers constitute 96 percent of the total farmers in the state compared to 78 percent in the country. Sixty percent of the geographical area is high land and only about 27 percent is available for cultivation. Rice alone contributes 96 percent to the total food grain production. The diverse agro climatic condition, fertile soils and abundant rainfall in the State offer immense potential for production of a number of tropical and sub-tropical fruits and vegetables. Fisheries and Animal Husbandry are the other promising sectors. Bamboo, tea, rubber based industries and food processing have good potential for development of Micro and Small Enterprise (MSE) sector. l) Despite various constraints, the growth rate of GDP of the State improved steadily and stood 8.9% during as against the all India growth rate of 6.6%. Further, the percentage of Agriculture and Allied Sector of the State to total GSDP during was higher than all India figure of 18.6% m) Agriculture: Agriculture and allied activities occupy an important place in the State's economy. About 65% population depend on it. As regards Cropping pattern, both the distinct and parallel farming system viz., (i) shifting cultivation or jhum in the hill slopes (ii) settled farming cultivation in the plains are in vogue. Paddy is the predominant crop in both the systems. The productivity of kg/ha during was higher than all India. Implementation of Agriculture Perspective Plan in , led to a few significant achievements in agriculture, which include (i) increase in area under assured irrigation from 52,197 ha in to 1,11,744 ha in , (ii) increased food grains production from 6.12 lakh tons during to 7.61 lakh tons during , (iii) reducing the gap between food grains requirement and production from 1.54 lakh tons to 0.19 lakh ton during the reference period, (iv) 7

3 increase in the flow of institutional credit to crop loans from ` crore during to ` crore during , etc. n) Plantation & Horticulture: The diverse agro climatic conditions, fertile soils & abundance of rainfall offer immense potential for production of a number of tropical and sub-tropical fruits and vegetables in the State. The major fruits & vegetable crops grown in the State are Pineapple, Orange, Banana, Litchi, Mango, Cashewnut, Coconut, Chillies, Betelvine, Potato, variety of summer and winter vegetables, Ginger, Black Pepper etc. o) Animal Husbandry: Though, has made significant progress in the development of animal resources, particularly in egg and meat production, the per capita availability of milk and eggs per annum in the State was low when compared to national average. p) Fisheries: Fish is an important constituent of daily diet of more than 95% of the population of the state. During the last decade, the state has become one of the surplus fish seed producing state. Keeping in view the nutritional gap, the state has successfully implemented a perspective plan for fish production and continues its focus for sustainability. With the total fish production at MT in , the per capita availability of fish from local production had increased to 17 kg in against kg in q) Industry, Trade & Services: The State is industrially backward due to geographical isolation as well as poor road/ rail connectivity with the mainland of India. Under nonagricultural establishments, Retail Trade is the major activity of the State, which constitute 45% of non-agricultural establishments, followed by manufacturing (18.28%), transport (7.7%), education (7.25%) and other community & personal services (6.32%). Bamboo, Tea, Rubber based industries and Food Processing have good potential for the industrial development. 3. Banking Sector (a) As on , the institutional credit is purveyed in the State through 23 Commercial Banks (CBs), one Regional Rural Bank ( Gramin Bank TGB), one State Cooperative Bank (TSCB), 268 Primary Agriculture Credit Societies (PACS), one State Cooperative Agriculture and Rural Development Bank (TCARDB) and one Urban Cooperative Bank. The branch network in the State increased from 380 as on to 425 as on and further to 461 as on , improving per branch population from 9668 to 7969 during the reference period. Of the total branches, 248 branches (53.71%) were in rural areas, 117 branches (25.38%) were situated in semi-urban areas and the rest in urban areas. (b) Deposits The aggregate deposits of all banks in the State registered a growth of 13.53% during The shares of Commercial Banks, TGB and TSCB in the total deposits were 65.29%, 24.06% and 10.65% respectively. The growth rate of deposits of the Cooperatives (14.77%) was better as compared to that of TGB (13.60%) and CBs (13.31%). As on the share of deposits from rural areas had marginally decreased to 21.35% of the total deposits as compared to 21.46% as on Similarly the share of deposits from urban areas had decreased to 52.54% from 53.97% during the same period. The share of deposits from semi-urban areas had increased to 26.10% from 24.57% previous year. 8

4 Loans Outstanding The total loans outstanding as on 31 March 2015 for all agencies registered a growth rate of 23.15%. The average per branch advances outstanding as on were ` crore, the data for CBs, TGB and Coops being `17.89 crore, `11.58 crore and `14.47 crore respectively. The shares of CBs, TGB and Coop Banks in total loans outstanding of the State, as on , were 62.40%, and 14.46% respectively. (d) Credit Deposit Ratio The overall CD ratio in the State, though not satisfactory, has steadily improved from 38% as on 31 March 2013 to 41% as on , as against the national average of 78%. While the CD ratio of Public Sector Commercial Banks was 37%, that of private Sector Commercial banks was 75%, TGB at 40% and Coop Banks at 56%. Area wise, the CD ratio of the rural areas was satisfactory at 54%, that in semi urban and urban areas was 27% and 25% respectively. Further, the CD ratio was highly skewed across the districts, ranging from 33% in West district to 79% in Gomati district. Performance under Annual Credit Plan The performance of the banks under Priority Sector as per Annual Credit Plan (ACP) was satisfactory, with an overall achievement of % of the target. While the disbursement to Agriculture (113.10%) and MSME (113%) sectors exceeded the target fixed, the achievement in respect of Other Priority Sector was subdued at 95.35%. Under Primary sector, the achievement under Agriculture Term Loans was of the target fixed. While the CBs and the TSCB achieved their targets, the TGB s achievement was Further, under Agriculture Sector, while TSCB achieved its target, CBs and TGB had not achieved their targets fixed. The Priority Sector Advances to total advances was less than 40% in respect of Bank of Maharashtra (32%) and Indian Overseas Bank (35%). Barring Bank of India (30%), Central Bank of India (22%), IDBI Bank (51%), State Bank of India (21%), United Bank of India (28%), HDFC Bank (33%) and ICICI Bank (88%), the agricultural advances in respect of all other CBs were below the minimum stipulated norms of 18%. (g) NPAs: The gross NPA position of all banks in the State which was 6.37% as on 31 March 2014 was improved marginally to 5.87% as on 31 March (h) TCARDB: The financial health of the Cooperative Agriculture and Rural development Bank (TCARDB) is poor and is not in position to cater to the long term needs of the rural populace, primarily due its poor recovery position, resulting in strain on other rural financial institutions. Its poor recovery position coupled with huge accumulated losses rendered it ineligible to draw refinance from NABARD. (i) Strengthening Financial Institutions: In order to strengthen the Financial Institutions across the country, the GoI, in the Budget , initiated various measures which include, (i) infusion of `25,000 crore capital into state-run banks in 2016/17, (ii) Bank Board Bureau to be operationalized during , (iii) Roadmap for consolidation of Public Sector Banks, (iv) to be introduce Bankruptcy code for financial firms by enactment of Act in Parliament in 2016/17, (v) RBI act to be amended for implementing monetary policy framework and a Monetary Policy Committee through the Finance Bill 2016, (vi) to list general insurance companies on stock exchanges, etc. (j) Financial Inclusion: The State has registered commendable progress under Financial Inclusion Plan. All the 419 villages in the State having 2000 or more population have been 9

5 provided with banking outlets, largely through BC model. BCAs have been engaged in 414 villages and brick & mortar branches have been opened in 5 villages. Further, out of the above 414 villages where banking outlets have been provided through BCAs, Ultra Small Branches (USBs) have been opened in 217 villages. The banks are being closely monitored to speed up the process of opening of USBs in remaining villages with population. There were 619 villages having population less than 2000 identified for providing banking services in the second phase. The banks have since covered all the villages through BC model. As per GoI guidelines, at least 5% of total villages should have Brick & Mortar branches. As on 31 March 2015, all the targeted 35 branches have been opened in the identified villages having less than 2000 population. (k) JanDhan se Jan Suraksha: To service the PMJDY accounts and also in order to reach out the social benefits of banking and insurance and pension to the vast section of the society, Govt. of India envisaged 3 products viz. Pradhan Mantri Suraksha Bima Yojana(PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana(APY). The above schemes were made operational from 01 June The total enrolment under these three schemes for the State of, as on , was 5,80,734. (l) Self Help Groups: Financing of Self Help Groups has been accepted as a cost effective mechanism by banks for expanding their outreach to the poor. As on 31 March 2015, there were 44,372 SHGs of which 28,688 SHGs were credit linked. Savings and credit linkage by TGB accounted for about 46.4% and 39.6% respectively of the total SHGs in the state. Further, the GoI s WSHG programme is in operation of Dhalai and West districts of the State. Further, in order to create sustainable livelihoods amongst SHG members of WSHGs, a Livelihood and Enterprise Development Programme (LEDP) has been launched on pilot basis in West district. (m) Joint Liability Groups: The concept of JLG financing is gaining momentum in the State. So far, about 2,000 JLGs have been financed to the tune of more than `5.00 crore till the end of Dec However, there is vast potential to tap by the banks to finance through JLG mode. While the TGB has taken the giant lead in nurturing and financing JLGs, other banks are closely following the TGB. (n) Farmer Clubs: The farmers clubs are considered to be the extended arms of the Bank branches and they act as bridge between the farmers and banks. Vibrant farmers clubs not only help branches in borrower appraisal but also help in recovery of loans. The members of Farmers clubs can be used as Business facilitators and promoters of SHGs and JLGs in their villages for tapping business potentials. The members of farmers clubs can be motivated to adopt technology through exposure visits which in turn is expected in off take of credit for hitech agriculture leading further to creation of Producers Organizations (POs). While as many as 294 farmers clubs have so far been established in the State with NABARD s support, the success of farmers club largely depends on the taking over the ownership of the programme by the bank branches, their constant dialogue and rapport with Club members. 4. Development Perspectives (a) Agriculture Growth : Though the State is making concerted efforts to build manufacturing and services sectors as well, with as many as 10 Designated Food Parks have been identified in the State to further industrialization, however, in the near future, agriculture will continue to be the major sector on whose growth the State s economy will largely depend. 10

6 Of many reasons, the livelihood is the most important. Various reasons viz., declining share of Agriculture and allied sector in the SGDP, large area under forests, only 27% of the land being available for cultivation, increasing population, very small operational holdings in the State, make agriculture a challenge in the State. Without development of agriculture, industry cannot flourish. The production and productivity of a few crops (esp. Paddy) in the state has increased over the years, mainly due to the implementation of the Perspective Plan However, the state still has to cover miles to attain productivity levels at the national average and major leading states in the country. Reducing incidence of poverty, increasing incomes, reducing income disparities and maximizing opportunities for sustainable employment, are at the core of development strategy. It is often said, surest way of inclusive growth is accelerating agriculture growth! As is said elsewhere, while we may or may not need a doctor, a scientist, an engineer, a banker, a politician and others in our lifetime, but we definitely need a farmer at least three times a day. Hence, no matter what the statistics says, agriculture sector still remains relevant everywhere, more so in. (b) Investments: Investments in and for agriculture by both Public and Private sector will be crucial for development. In order to make agriculture a profitable proposition, Government of had made conscious efforts in the past and made sizeable investment in various sectors viz., irrigation, power, agriculture, etc. Similarly, agriculture lending by the banking sector has increased rapidly in volumes during the last 7 years. Especially, during the last five years, the CAGR in agriculture lending was 28.4%. However, the average credit per hectare in the State is the lowest in the country, suggesting vast scope for financing by the banks. Indebtedness: The latest survey results of the National Sample Survey (NSS) 70 th round reveals that (i) the Average Value of Assets of the rural households in was observed to be the least in India at `.2,78,635 as against the all India average of `.10,06,985 and North East average of `.6,36,515. (ii) incidence of indebtedness in the was lowest when compared to the states in mainland (all India 46%) and second lowest in North East, the lowest being Nagaland (@2.83%), (iii) average amount of debt (AOD) per household was negligible in the State (`.386 for cultivators and `.3677 all categories put together) as against the all India level AOD of `.70,580, suggesting that indebtedness in State is highly comfortable from the bankers point of view, (iv) average amount of Debt per household with outstanding Loan in respect of rural cultivator household in respect of rural non-cultivators was the lowest in India, (v) lowest Debt Asset Ratio of the State at 0.07% in respect of rural cultivators, as against the all India average of 2.46%, indicating lesser risk to deal with and higher borrowing capacity of the households, (vi) the average value of assets for the rural households in land and buildings forming about 85% (others being livestock 2.8%, transport equipment 3.5%, bank deposits 6.9%, farm business equipment 0.97%, nonfarm business equipment 0.57%) showing good scope for asset creation under livestock, poultry, farm business equipment, transport equipment, etc. (d) Means and Ways to accelerate investments in agriculture in the state There could be number of reasons for low institutional credit viz., declining farm size, incidences of NPAs, inadequate extension mechanism in various fields, inadequate flow of technology to the door-steps of farmers, inadequate infrastructure, etc. Still they need to be sorted out. A few ways to increase the investments in agriculture could be as under: (i) Banking plans for the Area Based Schemes: To make the credit planning exercise simpler for the banks, as a part of this paper, a few illustrative projects/investment activities which can help to give required boost to the ATL 11

7 financing have been identified in the PLPs. These projects are designed to meet the localised investment needs or to leverage on the existing infrastructure /public investment or on subsidies. The advantages of such area based projects (vis-a-vis sporadic individual projects) are in terms of scale/volumes for finance, bringing in all stakeholders on a common platform, possibilities of tie-ups and hence better prospects for repayment. This approach is a supplementary measure and is in addition to the usual walk in business. These Area Based Schemes could be converted into Banking Plans with support from the District Development Manager of NABARD. If monitored in the DLCC, these projects can form good investment avenues. These include projects for dairy development, homestead farming, fisheries, etc. (ii) Encouraging TSCB and TGB: The support of TSCB and TGB for investment Finance for agriculture is not in proportion to their presence in the rural areas. In order to cross subsidise their funds, concessional p.a. during the year was made available to them. Both put together had drawn an amount of ` crore during the year. It is expected that the scheme of concessional refinance would continue during also. (iii) Support Services: For enhanced productivity of credit, financial sector initiatives must be harmonized with the real sector initiatives. Merely enhancing the flow of credit without proper support services will not yield the expected results. Support services including infrastructure, storage, processing, marketing, regulatory mechanisms for ensuring quality of inputs and reorienting extension services to enhance the impact of credit need to be put in place. In order to improve rural infrastructure, the State Govt. may avail higher financial assistance from RIDF. It is not enough to ensure credit growth but it should lead to desired impact on ground. NABARD s assistance: During the last five years, the total assistance from NABARD which has gone into the state works out to as ` crore and it has been consistently on the rise. Besides, the non-financial assistance from NABARD to the State include (i) Institutional Development, (ii) Self Help Groups, (iii) Joint Liability Groups, (iv) WADIs, (v) Farmers Clubs, (vi) Exposure visits through CAT programme, (v) transfer of technology, (vi) financial inclusion, etc. (f) Building up suitable infrastructure coupled with appropriate technology and scientific management practices will contribute substantially to higher productivity of agriculture as well as allied agriculture sector. Food processing industry has immense potential in the state. Government of India too accords top priority for the development of the food processing industry in the country. A Special Fund has been set up in NABARD for providing affordable credit for infrastructure works in food parks and for food processing units to be set up in the designated food parks. These units would not only reduce wastage of agricultural produce and increase the farm income but also create employment opportunities. 5. Assessment of Credit Potential The State Focus Paper has estimated total credit potential of ` crore for as against ` crore for , an increase of 13.98% over last year. Of this, the estimate for various broad sectors include ` crore for Farm Credit, `28.63 crore for agriculture infrastructure, `29.39 crore for ancillary activities, ` crore for MSME, `57.43 crore for Education, ` crore Housing, `1.83 crore for Renewable Energy, `98.77 crore for others including SHG/JLG/OD under PMJDY etc., and `2.97 crore for Social Infrastructure. Under Farm Credit, the estimates included ` crore for Crop Loans, `10.53 crore for Water 12

8 13 Resources, ` crore for Farm Mechanisation, ` crore for Plantation and Horticulture, `.3.16 crore for Forestry and Wasteland Development, ` crore for Dairy Development, ` crore for Poultry Development, ` crore for Sheep, Goat, Piggery Development, ` crore for Fisheries Development, and `.4.05 crore for other activities. The issues and suggested points emanated for reaching the above credit potential have been discussed under sectoral chapters. 6. Infrastructure Development: a) Infrastructural investments in transport, power, irrigation, hydroelectric works, scientific research and training, markets and warehousing, communications and informatics, education, health and family welfare play a strategic, but indirect role in the development process. It makes a significant contribution towards growth by increasing the productivity of land, labour and capital in the production process. The 14 th Finance Commission, recommended special focus for North Eastern States, particularly in terms of social and economic infrastructure with inter-state significance, especially in view of (a) low level of economic activity and the consequential low revenue capacity; (b) the disability arising from large forest cover and hilly terrain; (c) remoteness; (d) infrastructure deficit; (e) international borders and the law and order problems due to persistent insurgency; (f) high level of expenditures on public administration and police, relative to the overall gross state domestic product (GSDP) of the States and the large proportion of government employment in total employment, (g) high dependence on the resource flows from the Union Government, both for balancing their revenue account and for capital investment, etc. Accordingly, the GoI, in the Budget has made an allocation of an overall amount of `.33,097 crore across all ministries. This allocation included (i) a special fund viz., Organic Value Chain Development in North Eastern Region of `.412 crore for promotion of organic farming, (ii) `.2, crore to the Ministry of Development of North-eastern Region, (of which `.2,400 crore is under plan and ` crore under non-plan heads), (iii) `.223 crore for livelihood, skill and capacity building of the rural population, (iv) `.300 crore for the North-east Road Sector Development Scheme for meeting the expenditure of the project management unit to facilitate implementation of ADB-assisted North-east Road Project, (v) `.900 crore under the Central Pool of Resources for North Eastern Region, and (vi) `.795 for implementation of various development schemes of the North-eastern Council. However, as this allocation may be insufficient for overall infrastructure development, the State Govt. may avail higher financial assistance under NABARD s Rural Infrastructure Development Fund (RIDF). However, there is too much concentration on Rural Connectivity (>80%) sector. There is an urgent need to diversify to new areas/activities, especially Agriculture Sector. b) Further, there are a number of areas where investments have taken place, but the full benefit of the investment could not be reaped, because the final lap has not been completed or envisaged earlier. Such types of investments which when completed will provide the last mile connectivity or will serve as the vital link are called as critical infrastructure. The major critical infrastructure identified under various sectors are highlighted in Annexure IV. The State Govt. may complete these critical infrastructure. 7. Area Based Schemes: One of the important requirements for sustaining the growth rate in agriculture is to increase the investment or capital formation in agriculture. Hence, in order to reinforce the importance of capital formation, this Focus Paper has made accelerating the pace of capital

9 formation in agriculture and allied activities as its theme. In the SFP, a total potential of ` crore has been identified for investment in agriculture term loans. While there are several ways by which this potential can be tapped by the bankers and other concerned, one method by which positive results can be assured is to implement the schemes on an area based approach. The various advantages of Area Based Approach would include (i) Capitalizing the existing infrastructure, (ii) better Coordination with stakeholders, (iii) Advantages of Scale, (iv) Multiplier effect, etc. In view of the several advantages pointed out above, in implementing schemes on an area based approach, this paper has identified some of the activities that are best suited for such implementation. The Potential Linked Plans of the districts have identified 4 major activities viz., Dairy development, homestead farming, fisheries, backyard poultry, under which model plans can be prepared for implementation on a small scale for the purpose of demonstration. 8. Summing up (a) A development perspective, focused on three essential components of growth viz., investments, infrastructure and institutions (financial and non-financial) has been built up in the context of investment planning for agriculture and rural sector in the State. All the three aspects are closely related and if linked meaningfully, can give the necessary impetus to investments. Therefore, an attempt has been made to find ways and means to converge on infrastructure and leverage on ground level institutions to help farmers to improve their production capabilities, get more incomes and enhance quality of life. (b) RIDF as a funding mechanism for creation of rural infrastructure has a 20 years history now. The idea was to give a boost to public investment in agriculture, though the resources were found elsewhere, not in the budget. Resources which were to be put in the agriculture sector through the banking channel (private) were rerouted through the public investment channel. It is therefore essential to try and find ways to ensure that the desired enabling effect is taking place on ground and the investments under RIDF create the required thrust for future investments. It is also necessary to ascertain whether the investments are contributing to reduced risk, better access to market, better prices for agricultural produce. The available data/indicators suggest that in the space of term lending, unlike some States in the main land, has not reached a stage where the banks have to be worried about over indebtedness or excess leveraging on the agriculture incomes or existing assets. On the contrary, the consistent rate of growth of agriculture and substantial improvement in the volumes of rural deposits are such indicators which could be built into business strategy suitably by the banks to increase their lending business. Considering that nearly half of the branches of commercial banks are rural, finding business within agriculture is inevitable. In pushing investments through Banks, the genuine concerns of the banks and the farmers need to be addressed to make the lending successful. There are issues relating to viability of term lending and incidence of NPAs, inadequate staff strength at the branch level, need for building up their appraisal capabilities. These however, can be overcome. (d) NABARD has been able put to together Area based Projects / model schemes in all the 8 districts in the State. These could be converted into Banking Plans with support from the District Development Manager of NABARD. If monitored in the DLCC, these projects can form good investment avenues. Training and capacity building issues can also be quickly resolved and NABARD would be able to help in this regard. The ground level institutions promoted by NABARD like the Farmers Clubs, SHGs, JLGs, Farmers Producers organizations can support Banks efforts to find business, find good borrowers, and understand the local economy and 14

10 constraints within. They can also help in enabling aggregations, accessing financial and nonfinancial services in a cost-effective and more transparent manner for better impact of investments. A number of interventions are taking place in the State, by NABARD and many other institutions towards creating awareness, exposure to better management practices and thereby creating technology absorption capacity which is vital for famers investment decisions. Upscaling these will have the desired impact on successful investments. (e). Anchor agencies need to be found / created which will take the necessary steps to create the linkages from farm to markets. Investments which are bundled with such non financial services on large scale is the need of the hour. End to end tie ups will help better incomes greater repayment capacity and hence better recycling of loans. The State Government, Banks and NABARD are working in their own way and also in partnerships. This perspective, hopefully, will generate ideas for further collaborations and concrete platforms. 15

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12 State Profile State Profile TRIPURA 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) Agro-climatic Zone Sub Tropical No. of Sub Divisions 23 Climate Humid Sub Tropical No. of Blocks 58 Soil Type Red loam, Sandy loam, Alluvial Soil No. of villages (including TTADC villages) RAINFALL & GROUND WATER No. of Gram Panchayats 511 Normal LAND UTILISATION [ha] Rainfall [in mm] Total Area Reported Dev ia t ion (%) Forest Land Availability of Ground Net annual recharge Net annual draft Balance Area Not Available for Cultivation Water [Ham] Permanent Pasture and Grazing Land DISTRIBUTION OF LAND HOLDING : 2011 Land under Miscellaneous Tree Crops Holding Area Classification of Holding Cultivable Wasteland 3020 Nos. % to Total ha. % to Total Current Fallow 1495 <= 1 ha % % Other Fallow 1729 >1 to <=2 ha % % Net Sown Area >2 to <=4 ha % % Total or Gross Cropped Area >4 to <=10 ha % % Area Cultivated More than Once >10 ha % % Cropping Inensity [GCA/NSA] 186% Total % % 6. WORKERS PROFILE [in '000] DEMOGRAPHIC PROFILE [in '000] Census 2011 Cultivators 337 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 323 Population Agricultural Labourers 275 Scheduled Caste (2011) Workers engaged in Household Industries 26 Scheduled Tribe (2011) Other workers 831 Literate HOUSEHOLDS [in '000] Census HOUSEHOLD AMENITIES [% of Dwelling Units] Total Households 843 Drinking water availability 73% Electricity availability 42% Rural Households 608 Latrines availability 86% Pucca houses 6% Urban Households 235 Drainage availability 29% Semi pucca houses 21% 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 1118 Anganwadis 9906 Hospitals 21 Villages having Post Offices 709 Primary Health Centres 79 Blood Bank 7 Villages having Banking Facilities 1033 Primary Health Sub-Centres 635 CHC 12 Villages having Primary Schools INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Health Centres 79 Total N/P/K Consumption [MT] Bio Fert. Production Centre 859 Habitations connected with all-weather roads 6572 Certified Seeds Supplied [MT] 3866 Agri Input Testing Lab 1 Number of rural telephone exchanges 65 Static Soil Testing Laboratories 2 Farmers' Clubs [Nos] 245 Houses provided under Indira Avas Yojana (cum.) Mobile Soil Testing Laboratories 4 Nurseries IRRIGATION COVERAGE [Ha] Soil sample analysed in Power Tiller 1785 Total Irrigation Potential Seed Processing Plant 6 Diesel Engine 6945 Irrigation Potential Created Dehumidified Seed Storage 1 Power Operated Agr equip 1082 Net Potential Utilised INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING 15. ANIMAL POPULATION AS PER CENSUS 2007 [in '000] Rural/Urban Mandi/Haat [Nos] 554 Wholesale Market [Nos] 84 Category of animal Total Road Length [Km] Godown [Nos] 115 Cattle - Cross bred 139 Length of Railway Line [Km] 153 Godown Capacity[MT] Cattle - Indigenous 851 Public Transport Vehicle [Nos] Cold Storage [Nos] 11 Buffaloes 11 Goods Transport Vehicle [Nos] Cold Store Capacity[MT] Sheep INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES Goat 659 Veterinary Hospitals 15 AI Centres 411 Pig 387 Veterinary Dispensaries 59 Milk Collection Centres [Nos] Poultry 3542 Veterinary Sub Centres 426 Fishermen Societies [Nos] 142 Other animals 112 Disease Investigation Lab. 4 Fish Feed Manufacutring plants AREA, PRODUCTION & YIELD OF MAJOR CROPS Duck/Poultry Breeding Farms 5 Fish Training Centres 9 Crop Avg. Yield Pig/Goat/Cattle/Rabbit Breeding Farms 11 Fish Feed Analysis Lab 3 Area (ha) Prod. (MT) [kg/ha] Fodder Development Farms 7 Block level Brooder House 76 Rice MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Wheat Fish Production [MT] Per cap avail. [kg/annum] Maize Egg Production [crore nos] Per cap avail. [nos/p.a.] Pulses Milk Production [ MT] Per cap avail. [gm/day] Sugarcane Meat Production [MT] Per cap avail. [kg/year] 9.08 Cotton (bales) Oilseeds Sources : Economic Review of ; Statistical Abstract, Govt of, ARDD, 17

13 Total Rural Semiurban Urban Savings linked Commercial Banks Regional Rural Bank State Co-op. Bank Coop. A gr. & Ru ra l Dev. Ba n k Scheduled Urban Coop. Bank All Agencies Commercial Banks Regional Rural Bank Cooperative Banks Agency 31 Mar Mar Mar 15 Growth (%) Share (%) Scheduled Urban Coop. Bank All Agencies Agency Commercial Banks Regional Rural Bank Cooperative Banks Scheduled Urban Coop. Bank All Agencies Credit linked CD Ratio Banking Outlet Provided Villages Type Total No. 31 Mar Mar Mar 15 BC Branch Total Commercial Banks Population Regional Rural Bank Cooperative Banks Others All Agencies Total Commercial Banks Regional Rural Bank Cooperative Banks All Agencies Commercial Banks Regional Rural Bank Cooperative Banks All Agencies E Total Agriculture Credit Non-Farm Sector Other Priority Sector Total Priority Sector Commercial Banks Regional Rural Bank Cooperative Banks All Agencies Source: SLBC Agency Agency Agency Agency Broad Sector Agency No. of Banks Banking Profile : 1. NETWORK & OUTREACH (As on 31 Mar 2015) No. of Branches 2. DEPOSITS OUTSTANDING (Rs. '000) LOANS & ADVANCES OUTSTANDING (Rs. '000) Self Help Groups (SHGs) No. 13% 65.3% 14% 24.1% % 10.5% 20% % 31 Mar Mar Mar 15 Growth (%) Share (%) 0.2% 100% % 62.4% % 23.1% % 14.2% % 0.3% % 100.0% 4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (as on 31 Mar 2015) Priority Sector Loans Amount Target Target Demand % of Total Loans Loans to Agr. Sector Amount % of Total Loans Below 2000 population PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31 Mar 2015) Ach'ment Loans to Weaker Sections Amount % of Total Loans Ach'ment [%] 584 Loans under DRI Scheme Amount 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Target % of Total Loans Loans to Women Amount % of Total Loans Average Ach'ment Ach'ment Target Ach'ment Ach'ment Target Ach'ment Ach'ment Ach[%] in [%] [%] [%] last 3 years 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Ach'ment [%] Target Demand Ach'ment 9. RECOVERY POSITION Recovery Recovery [%] Demand Ach'ment Recovery Recovery [%] Recovery Ach'ment [%] Recovery [%] Average Ach[%] in last 3 years Average Rec. [%] in last 3 years 26