EXECUTIVE SUMMARY I.General: a. Theme of the PLP 2016-17 is Accelerating the pace of Capital Formation in agriculture and allied sector. b. Sagar district is situated in the Vindhya Plateau Region-5 in Eastern part of Madhya Pradesh. It has a total geographical area 10252 sq. km. constituting 3.32% of the total area of the State. The average rainfall of the district is 1231 mm per annum which precipitates in about 45 days. The district population (2011 Census) is 23.78 with 16.69 in rural areas. The population below poverty line is 48.69%. The Gross Domestic Product (GDP) of the district during 2012-13 was 2.87 % of the state GDP. The total irrigated area as a percentage to net sown area is 57.23%. Sagar lies in an extensive plain broken by low, forested hills and watered by river Sonar. Wheat, soyabean, gram and oilseeds are chief crops of the region. There is extensive cattle rearing. Sandstone and Limestone deposits are found here. District Sagar is predominantly a Scheduled Caste/Backward class district. The total number of villages in the district are 2075.Out of which, 1901 villages are inhabited. Sagar district is divided into eleven tahsils and eleven development blocks c. Ground Level Credit Flow (GLC): Total GLC of the district under priority sector which was 873.35 crore during 2012-13, increased to 1282.07 crore during 2013-14 and further to 1694.62 crore during 2014-15. The agricultural loans issued during the last three years were 668.63 crore, 1023.24 crore and 1453.59 crore respectively. The disbursements under NFS during the above period were 35.01 crore, 37.86 crore and 70.35 crore respectively. The share of agriculture in GLC which stood at 79.81 % in 2013-14 has increased to 85.78 % during 2014-15. The Agriculture Term Loan constituted 30.13 % of the total agriculture lending during 2014-15. d. Highlights of banking benchmarks: The district has 28 Commercial Banks, 1 RRB, 1 DCCB and 1 Land Development Bank with 124 branches of Commercial Banks, 41 branches of Gramin Bank, 21 branches of DCCB, and 178 PACS and 11 branches of Land Development Bank. SBI, CBI and RRB have the highest number of branches in the district. The performance of banks in achieving the parameters stipulated by RBI was satisfactory/not satisfactory under Priority Sector Advances such as CD ratio of 60%, PSA advances of 69%, Agricultural Advances of 47%, as against the stipulation of 60%, 40% and 18% respectively. Submission of LBRs by banks has been satisfactory at 90-95%. Achievement under ACP 2013-14 was at 1282.07 crore which formed 99% of the target. The performance under Financial Inclusion was satisfactory, as the targets regarding coverage of villages through BCs, account opening under PMJDY were met. However, under the PM Bima Yojanas, launched in 2015-16, there has been a very low achievement vis a vis target allotted to the district. e. 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 Appendix A. The potential has been assessed at 2508.67 crore as against 2102.45 crore for the year 2015-16 showing 19.31 % growth over previous year. The potential under various sectors include Agriculture 2236.27 crore, MSME 90.11 crore, Education 7.92 crore, Housing 120.20 crore, Social Infrastructure 7.65 crore, Renewal Energy 2.05 crore and Others 44.50 crore. The shares of Agriculture, MSME, Education, Housing, Social Infrastructure, Renewal Energy, and Others form 89.14 %, 3.59 %, 0.32%, 4.79 %,0.30 %, 0.08 % and 1.77 % respectively. The potential has been assessed keeping in view the GoI/GoMP s 1
priorities, existing/likely improvements in infrastructure, past GLC, revision in SoF/Unit Cost and various subsidy schemes of GoI/GoMP. f. Major Constraints: Some of the major constraints envisaged in achieving the potential assessed are lack of agri-infrastructure for marketing, agro process units for horticulture produce viz. onion, tomato, potato, reliable electric supply and and absence of organized animal markets and suppliers of renewable energy products. II. Thrust areas and Developmental Initiatives of NABARD a. In order to realise the stated goals a few Area Based Schemes have been identified. The sectors identified is dairy and horticulture. Tentative banking plans have been prepared for these activities. An estimated amount of 85 lakh is expected to be financed by banks under these models. The models indicated are only pilots and it is expected that more such schemes will be prepared by banks. b. NABARD had also identified a few thrust areas for 2016-17 viz., JLG/SHG financing, 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, Farmers Producers Organisations through its Producer Organisation Development Fund and PRODUCE Fund established though the GOI Union Budget 2014-15. III. Infrastructure a. The district fares fairly well under some of the infrastructure indicators such as irrigation and literacy levels where the ranking of the district is better than the State average. However certain other indicators such as road density are lower than the State average. Infrastructure facilities act as catalysts for development. Under RIDF, 116 projects with a cumulative loan component of 340.97 crore was sanctioned by NABARD for the district covering mainly road, bridges, irrigation, schools projects. b. There are certain critical infrastructure which can be supported through public investment viz. roads, bridges and irrigation tanks in Khurai, Malthon and Devri blocks and private investment in the district viz., schools, hospitals and RO water plants. Banks have to play an active role in financing such investments. IV. Conclusion: In order to achieve the overall credit potential assessed and in particular to enhance the capital formation in Agriculture in the district, there is a need to have a coordinated approach by all the stakeholders, viz., banks, Govt.Departments and NGOs. The reporting system by banks through LBRs, regular monitoring of achievements vis-à-vis the targets in DLCC/BLBC meetings assume greater importance. The implementation of SHG, JLG, RuPay enabled KCC and Financial Inclusion drive will ultimately result in achieving the various objectives of inclusive growth in the rural areas of the district. 2
Appendix A to Annexure 1 Broad Sector wise PLP projections - 2016-17 Sr No Particulars PLP projections 2016-17 A Farm Credit i Crop production, maintenance and marketing 158245.49 ii Term loan for agriculture and allied activities 57468.25 Sub total 215713.74 B Agriculture Infrastructure 5299.79 C Ancillary Activities 2266.46 I Credit potential for agriculture (A+B+C) 223279.99 II Micro small and medium enterprise 9123.30 III Export credit 0.00 IV Education 1450.00 V Housing 11528.00 VI Renewal Energy 201.57 VII Others 4450.00 VIII Social Infrastructure involving bank credit 765.00 Total priority sector ( I to VIII) 250797.86 3
Appendix B to Annexure 1 Summary of Sector/Sub Sector wise PLP projections - 2016-17 Sr No Particulars PLP projections 2016-17 I Credit potential for agriculture A Farm credit I Crop production, Maintenance and Marketing 158245.49 II Water Resources 7731.24 III Farm Mechanization 28000.48 IV Plantation and Horticulture 1791.43 V Forestry and Wasteland Development 103.25 VI Animal Husbandry-Dairy 18509.65 VII Animal Husbandry-Poultry 496.26 VIII Animal Husbandry-Sheep, goat, piggery etc. 425.30 IX Fisheries 159.53 X Others-Bullock, Bullock cart etc 251.11 Sub Total 215713.74 B Agriculture Infrastructure I Construction of storage facilities (Warehouse, Market Yards, Godowns, Cold Storage Units) 2205.00 II Land Development, soil conservation, watershed 1671.75 development III Others( Tissue culture, Agri Biotechnology, Seed production, 1423.04 Bio pesticide/fertilizer, vermin composting) Sub total 5299.79 C Ancilliary activites I Food and Agro processing 1834.91 II Others ( Loans to ACABC,PACS, FSS, LAMPS, MFI etc.) 431.55 Sub total 2266.46 Total agriculture 223279.99 II Micro, Small and Medium Enterprises I MSME-Working capital 1520.55 II MSME-Investment credit 7602.75 Total MSME 9123.30 III Export credit 0.00 IV Education 1450.00 V Housing 11528.00 VI Renewal Energy 201.57 VII Others (Loans to SHG/JLG, distressed person, PMJDY) 4450.00 VIII Social Infrastructure involving bank credit 765.00 Total Priority Sector 250797.86 4
BROAD SECTOR-WISE PLP PROJECTIONS 2016-17 DISTRICT MAP OF 5
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