EXECUTIVE SUMMARY I. General a) The Theme of the PLP 2016-17 is Accelerating the pace of Capital Formation in agriculture and allied sector. b) Umaria district is situated in the Northen Hill Region of Madhya Pradesh. It has 3 blocks with a total geographical area of 4503 sq. km. constituting 1.46% of the total area of the State. The average rainfall of the district is 1093 mm per annum which precipitates in about 92 days. The district population (2011 Census) is 6.45 lakh with 5.52 lakh in rural areas. The population below poverty line is 38.45%. The Gross Domestic Product (GDP) of the district during 2012-13 was 0.64% of the state GDP. The total irrigated area as a percentage to net sown area is 28.91%. As on 31.3.2014, there were 196 Micro Industries, 7 Small industries and 2 Mega Industries providing employment to 3873 persons in the district. The district tribal population is 46.63 % of the total population. c) Ground Level Credit Flow (GLC): Total GLC of the district under priority sector which was 32.32 crore during 2012-13, increased to 53.47 crore during 2013-14 and further to 95.45 crore during 2014-15. The agricultural loans issued during the last three years were 23.80 crore, 37.17 crore and 75.66 crore respectively. The disbursements under NFS (incl. OPS) during the above period were 8.52 crore, 16.31 crore and 19.79 crore respectively. The share of agriculture in GLC which stood at 73.64% in 2012-13 has increased to 79.27% during 2014-15. Agriculture Term Loan constituted 3.6% of the total agriculture lending during 2014-15. This share has increased from 2% for the year 2012-13. d) Highlights of banking benchmarks: The district has 39 bank branches with 21 branches of Commercial Banks, 11 branches of Gramin Bank, 6 branches of DCCB, 1 branch of DCARDB and 37 PACS. The performance of banks in achieving the parameters stipulated by RBI was satisfactory under Priority Sector Advances except CD ratio of 25.45%, Priority Sector advances of 33%, Agricultural Advances of 26% as against the stipulation of 40% and 18% respectively. Submission of LBRs by banks has been satisfactory at 95. Achievement under ACP 2014-15 at 95.46 crore formed 57% of the target. The performance under Financial Inclusion was not satisfactory, as the targets regarding coverage of villages through USB, appointment of BCs, number of transactions of BCs, etc., were not achieved. e) Sectoral assessment of potential: (i) The potential, under Priority Sector, in each sector / sub sector for 2016-17 that could be tapped with institutional credit has been assessed and presented in Exhibit I. The potential has been assessed at 313.23 crore as against 230.97 crore for the year 2015-16 showing 35.76 % growth over previous year. The potential under various sectors include crop loans 152.78 crore, investment credit for agriculture comprising various sectors viz., Water Resources, Farm Mechanisation, Forestry, Dairy Development, Poultry, Sheep/goat/piggery, Fisheries, etc. at 59.34 crore, Agriculture Infrastructure of Storage Godowns & Market Yards and Land Development and other activities at 8.52 crore, Ancillary activities at 10.33 crore, MSME at 52.70 crore and Others ( Education, Housing, Renewable Energy, Other and Social Infrastructure) a 29.55 crore. The shares of crop loan, agriculture term loan, Agriculture Infrastructure, Ancillary activities, MSME & Others ( Education, Housing, Renewable Energy, Others and Social Infrastructure) 1
are be 48.78%, 18.94%, 2.72%, 3.29%, 16.82% and 9.43% respectively. The share of Agri Term Loans to total agriculture credit is 33.85%. 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 subsidy schemes of GoI/GoMP. f) Some of the major constraints envisaged in achieving the potential assessed are lack of proper market infrastructure, Service centre for repairs of tractors, connectivity of villages roads with taluka, Rural godown for storage of produce, demonstration farms and nurseries, breeding centers, veterinary services, milk routes etc. Implementation of Vision 2018 document of GoMP would go a long way in realizing the potentials assessed. 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, a few Area Based Schemes have been identified. The sectors identified are Dairy, Fishery and Azola Cultivation. Tentative banking plans have been prepared for these activities. 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 2016-17 viz., JLG/SHG financing, micro warehousing, improving dairy development, Producer Organizations, etc. To promote the above areas, NABARD has also initiated several developmental activities in the form of support to Self Help/JLG Promoting Institutions, conduct of workshops, seminars, training camps, support to farmers clubs, FPOs, farm productivity improvement schemes, Natural Resource Management through Watershed, loan based training for NFS development, etc. III. Infrastructure a) The district fares fairly well under some of the infrastructure indicators such as Health and Education where the ranking of the district is better than the State average. However certain other indicators such as Irrigation, Roads & Bridges, etc., are lower than the State average. Incidence of poverty is higher than State average. Infrastructure facilities act as catalysts for development. Under RIDF, 24 projects with a cumulative loan component of 67.58 crore was sanctioned by NABARD for the district covering mainly Rural connectivity-roads & Bridges, Storage Godowns, Health, Drinking Water, Educational Institution 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., seting up of soil-testing laboratories in each block, 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, improving road network, uninterrupted power supply to the industries, etc. c) There are certain critical infrastructure which can be supported through private investment in the district viz., setting up of warehouses, micro warehouses, cold storages/cold chains, etc. Banks have to play an active role in financing such investments. 2
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. 3
Sr.No. Appendix A to Annexure 1 Broad Sector wise PLP projections - 2016-17 Sector ( Lakh) PLP Projection A Farm Credit i Crop Production, Maintenance and Marketing 15277.87 ii Term Loan for agriculture and allied activities 5934.65 Sub total 21212.52 B Agriculture Infrastructure 852.19 C Ancillary activities 1033.16 II Micro, Small, Medium, Enterprises 5270.24 III Export Credit 0 IV Education 436.51 V Housing 2102.40 VI Renewable Energy 341.36 VII Others Loan to SHG/JLGs, PMJDY, ec.) 75.00 VIII Social Infrastructure involving bank credit 0.00 Total Priority Sector 31323.38 4
Appendix B to Annexure 1 Summary of Sector/Sub Sector wise PLP projections - 2016-17 ( Lakh) Sr.No. Sector PLP Projection I Credit Potential for Agriculture A Farm Credit Crop Production, Maintenance and Marketing 15277.87 Water Resources 486.87 Farm Mechanisation 804.73 Plantation and Horticultre 904.45 Forestry and Waste Land Development 126.23 Animal Husbandry Dairy Development 2856.70 Animal Husbandry Poultry Development 67.03 Animal Husbandry Sheep, Goat and Piggery Development 372.30 Fisheries Development 119.50 Ohers- Bullock, Bullock cart etc. 196.84 Sub total 21212.52 B Agriculture Infrastructure Constructions of storage facilities (Ware house, Market yards, godowns etc.) 654.84 Land Development, Soil conservation, Watershed development 75.52 Other Activities 121.83 Sub Total 852.19 C Ancillary activities Food and Agro processing 880.70 Others (Loan to co-op socities, acabc, loans to PACS, FSS,LAMPS) 152.46 Sub Total 1033.16 Total Agriculture 23097.87 II Micro, Small, Medium, Enterprises MSME- Working Capital 878.37 MSME- Investment credit 4391.87 Total MSME 5270.24 III Export Credit 0 IV Education 436.51 V Housing 2102.40 VI Renewable Energy 341.36 VII Others Loan to SHG/JLGs, PMJDY, ec.) 75.00 VIII Social Infrastructure involving bank credit Sub Total 2955.27 Total Priority Sector Grand Total (C + D + E) 31323.38 5
BROAD SECTOR-WISE PLP PROJECTIONS 2016-17 DISTRICT MAP OF 6
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