I) General EXECUTIVE SUMMARY a) The Theme of the PLP 2016-17 is Accelerating the pace of Capital Formation in agriculture and allied sector. b) Shahdol district is situated in the eastern part of Madhya Pradesh. It has five blocks with a total geographical area of 5610 sq. km. constituting 1.82% of the total area of the State. The average rainfall of the district is 1211.70 mm per annum which precipitates in about 60 to 80 days. The district population (2011 Census) is 10.66 lakh with 8.46 lakh in rural areas. The population below poverty line is 49.06%. The Gross Domestic Product (GDP) of the district during 2012-13 was 892811 i.e. 2.40% of the state GDP. The total irrigated area as a percentage to net sown area is 14.33%. As on 31.3.2015, there were 7916 Micro Industries/ Small industries and 02 Mega Industries providing employment to 18484 persons in the district. The district is classified as tribal district and is also among Left Wing Extremist (LWE) district. c) Ground Level Credit Flow (GLC): Total GLC of the district under priority sector which was 177.25 crore during 2012-13, increased to 251.43 crore during 2013-14 and further to 321.90 crore during 2014-15. The agricultural loans issued during the last three years were 144.00 crore, 169.63 crore and 245.52 crore respectively. The disbursements under NFS (including OPS) during the above period were 33.25 crore, 81.79 and 76.38 crore respectively. The share of agriculture in GLC which stood at 67.46% in 2013-14 has increased to 76.27% during 2014-15. The Agriculture Term Loan constituted 29.18% of the total agriculture lending during 2014-15. This share has decreased by 3.31% since 2012-13. d) Highlights of banking benchmarks: The district has 73 bank branches with 44 branches of Commercial Banks, 18 branches of Gramin Bank, 08 branches of DCCB, 03 branches of DARDB and 37 PACS. The performance of banks in achieving the parameters stipulated by RBI during 2014-15 was satisfactory, except CD ratio parameter. The CD ratio of 32.21%, PSA advances of 51.30%, Agricultural Advances of 22.89% were achieved as against the stipulation of 65%, 40% and 18% respectively. Submission of LBRs by banks needs to be improved. Achievement under ACP 2014-15 at 321.90 crore formed 100.28% of the target. The performance under Financial Inclusion was also satisfactory, as the targets regarding coverage of villages through USB, appointment of BCs, number of transactions of BCs, accounts under PMJDY etc., were achieved. During the year 04 new banks viz.- IDBI, UCO Bank, Bank of India, Bank of Maharashtra have entered in to the district. 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 at 525.50 crore as against 401.28 for the year 2014-15 showing 31% growth over previous year. The potential under various sectors include crop loans 253.17 crore, investment credit for agriculture comprising various sectors viz., Water Resources, Land Development, Farm Mechanisation, Forestry, Dairy Development, Poultry, Sheep/goat/piggery, Fisheries, Storage Godowns & Market Yards and Other activities at 103.89 crore, MSME 85.44 crore. In tune with revision in priority sector guidelines by RBI, credit potential for Education 9.18 crore, Housing - 38.73 crore, Renewal Energy 0.96 crore, loans to SHG etc. 25.46 crore and Social Infrastructure- 8.64 crore have been assessed in addition to traditional sector. This has lead an increase of 124.24 crore over previous year. f) Agriculture credit projection ( 357.06 crore) which includes Farm credit, Agriculture infrastructure and Ancillary activities forms 67.95% of the total credit projection. The share of crop loan and agriculture term loan in Agriculture credit is 70.90% and 29.10% 1
and 48.18% and 19.77% in total credit projection. MSME & remaining sector i.e.- Education, Housing, Renewal Energy, loans to SHG etc. and Social Infrastructure in credit potentials for 2016-17 is 16.26% and 15.79% respectively. The potential has been assessed keeping in view the GoI/GoMP s priorities, revised Priority sector guideline, existing/likely improvements in infrastructure, past GLC, revision in SoF/Unit Cost and various subsidy schemes of GoI/GoMP. g) Some of the major constraints envisaged in achieving the potential assessed are inadequate extension support, inadequate irrigation facility, lack of assured and quality power supply in rural areas, lack of post harvest facilities for horticulture crops, absence of milk routes in a major portion of the district, average roads and communication network, etc., in rural areas. Forward and backward linkages such as quality planting material, post harvest facilities, organised marketing facilities for Plantation, Horticulture and floriculture crops could trigger exploitation of latent potential for Plantation & Horticulture sector in the district. 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 pilot Area Based Schemes have been identified. The sectors identified are Forestry- Eucalyptus plantation and Animal Husbandry- Dairy Development. Tentative banking plans have been prepared for these activities. An estimated amount of 564.30 lakh is expected to be financed by banks under these models.. 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, conduct of workshops, seminars, training camps, support to farmers clubs, FPOs, Natural Resource Management through Watershed, loan based training for NFS development, etc. III.Infrastructure a) Infrastructure Indicators comparison indicates that the district is fairly developed in comparison to state average in Electricity, Water supply, Education, healthcare, and transportation and lags behind in other components viz. Irrigation, communication, urbanisation etc. Infrastructure facilities act as catalysts in the development. Under RIDF, 37 projects with an outlay of 87.36 crore and loan component of 63.74 crore was sanctioned by NABARD for the district covering mainly rural roads and bridges, minor irrigation projects, primary health centres, ITI projects, etc. 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., setting up of soil-testing laboratories in each block, Building infrastructure for Medical / Engineering college, lining of canals, Solar /Electrification Nal-Jal Yojana in non electrified villages 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, establishment of fish markets, improving road network, uninterrupted power supply to the industries, etc. 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 LBRs/SAMIS submission, 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 for bank linkage, insurance cover and pension scheme will ultimately result in achieving the various objectives of inclusive growth in the rural areas of the district. 3
Sr. No. A i Appendix A to Annexure 1 Broad Sector wise PLP projections - 2016-17 ( Lakh) PLP projections for Particulars 2016-17 Farm Credit Crop Production, Maintenance and Marketing 25317.20 ii Term investment for Agriculture and Allied Activities 9659.99 Subtotal 34977.19 B Agriculture Infrastructure 552.13 C Ancillary Activities 177.58 I Total Credit Potential for Agriculture (A+B+C) 35706.90 II Micro Small and Medium Enterprises 8544.00 III Export Credit 0.00 IV Education 918.50 V Housing 3873.50 VI Renewable Energy 96.54 VII Others 2546.50 VIII Social Infrastructure Involving bank credit 864.60 Total priority Sector (I to VIII) 52550.54 4
Appendix B to Annexure 1 Summary of Sector/Sub Sector wise PLP projections - 2016-17 ( Lakh) Sr. PLP projections Sector No. 2016-17 I Credit Potential for Agriculture A. Farm Credit i Crop Production, Maintenance and Marketing 25317.20 ii Water Resources 1157.87 iii Farm Mechanisation 1102.16 iv Plantation and Horticulture 421.24 v Forestry and Waste Land Development 256.80 vi Animal Husbandry Dairy Development 5790.17 vii Animal Husbandry Poultry Development 260.25 viii Animal Husbandry Sheep, Goat and Piggery Development 381.59 ix Fisheries Development 205.56 x Other Activities 84.35 Sub Total 9659.99 B. Agriculture Infrastructure i Construction of Storage Facilities 313.13 ii Land Development, Soil conservation, watershed Development 156.28 iii Others 82.72 Sub Total 552.13 C. Ancillary Activities i Food & Agro processing 97.58 ii Others 80.00 Sub Total 177.58 Total Agriculture (A+B+C) 35706.90 II. Micro, Small and Medium Enterprises MSME - Manufacturing i MSME Investment credit 2560.00 ii MSME working capital 896.00 Sub Total 3456.00 MSME - service i MSME Investment credit 4240.00 ii MSME working capital 848.00 Sub Total 5088.00 Total MSME 8544.00 III Export Credit 0.00 IV Education 918.50 V Housing 3873.50 VI Renewable Energy 96.54 VII Others (loans to SHG/JLG, PMJDY etc.) 2546.50 VIII Social Infrastructure Involving bank credit 864.60 Total priority Sector (I to VIII) 52550.54 5
BROAD SECTOR-WISE PLP PROJECTIONS 2016-17 DISTRICT MAP OF 6
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