PLP 2016-17 Executive Summary

I. General a) Indore district is situated in the Plateau Regional climatic zone 9 western part of . It has 4 blocks with a total geographical area 3898 sq. km. constituting 1.26% of the total area of the State. The average rainfall of the district is 952 mm per annum which precipitates in about 90 days. The district population (2011 Census) is 32.77 lakhs with 8.49 lakhs in rural areas. The population below poverty line is 5.72%. The Gross Domestic Product (GDP) of the district during 2012-13 was 10.09% of the state GDP. The total irrigated area as a percentage to net sown area is 74.11%. b) Ground Level Credit Flow (GLC): Total GLC of the district under priority sector which was `3263.74 crore during 2012-13, increased to `4106.65 crore during 2013-14 and further to `7343.16 crore during 2014-15. The agricultural loans issued during the last three years were `1677.64 crore, `2068.00 crore and `2789.32 crore respectively. The disbursements under NFS during the above period were `866.11crore, `1262.90 crore and `3038.54 crore respectively. The share of agriculture in GLC which stood at 50.30% during 2013-14 has decreased to 37.98% during 2014-15. c) Highlights of banking benchmarks: The district has 595 bank branches with 407 branches of Commercial Banks, 25 branches of Narmada Gramin Bank, 28 branches of DCCB, 120 PACS and 15 branches of Land Development Bank. The performance of banks in achieving the parameters stipulated by RBI was satisfactory under Priority Sector Advances such as CD ratio of 105%, PSA advances of 44%, and unsatisfactory in Agricultural Advances of 10%, as against the stipulation of 60%, 40% and 18% respectively. Submission of LBRs by banks has been satisfactory at 90-95%. Achievement under ACP 2014-15 at `7343.16 crore formed 117% of the target. d) 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 `9044.67crore as against `7502.38 crore for the year 2015-16 showing 20.55% growth over previous year. The potential under various sectors include crop loans `2032.75crore, investment credit for agriculture comprising various sectors viz., Water Resources, Farm Mechanisation, Forestry, Dairy Development, Poultry, Sheep/goat/piggery, Fisheries, Agriculture Infrastructure and Ancillary activities at `4297.10 crore, MSME `3429.00 crore Exports `282.60 Crore, Education `109.6 Crore Housing 564.75 Crore Renewable energy ` 145.72 crore Infrastructure support ` 42.20 crore and Other sector `173.70 crore. The share of Agri Term Loans to total agriculture credit is 35.31%. 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. e) New Priority Sector Guidelines - RBI has revised the Priority Sector Lending (PSL) norms. Priority Sector has been classified into eight broad sectors viz. Agroculture, MSME, Export Credit, Education, Housing, Social Infrastructure, Renewable and Others. Social Infrastructure covering schools, health care, drinking water and sanitation facilities in tier II to tier VI centres have been brought under the ambit of PSL norms. As per the revised priority sector guidelines by the RBI, all loans to MSME will be classified as priority sector lending by banks. Taking these guidelines into account PLP 2016-17 has been prepared.

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 dairy based Area Based Schemes have been identified. Secondly, Tailoring (readymade Garments) a Non farm activity have been identified as ADS. Tentative banking plans have been prepared for these activities. An estimated amount of 164.25 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, micro warehousing, improving dairy development, Producer Organizations, etc. To promote the above

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PLP 2016-17 Indore 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 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, 58 projects with a cumulative loan component of `78.10 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 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.

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.

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PLP 2016-17 Indore Appendix A to Annexure I Broad Sector wise PLP Projections -2016-17 (` lakh) PLP Sr. Particulars projections 2016-17 A Farm Credit i Crop Production, Maintenance and Marketing 203275.80 ii Term Loan for Agriculture and allied activities 110979.32 Sub Total 314255.12 B Agriculture Infrastructure 46486.73 C Ancillary Activities 68974.56 I Credit Potential for Agriculture (A+B+C) 429710.01 II Micro, Small and Medium Enterprises 342900.00 III Export Credit 28260.00 IV Education 10960.00 V Housing 56475.00 VI Renewable Energy 14572.80 VII Others 17370.00 VIII Social Infrastructure involving bank credit 4220.00 Total Priority Sector (I to VIII) 904467.81

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PLP 2016-17 Indore

Appendix B to annexure I Summary of Sector / Sub Sector wise PLP Projections 2016-17 (` lakh) Particulars PLP Sr No Projections 2016-17 I Credit Potentials for Agriculture A Farm Credit i Crop production, Maintenance and Marketing 203275.80 ii Water Resources 17496.54 iii Farm Mechanization 32798.40 iv Plantation and Horticulture 12458.88 v Forestry and Waste land development 275.20 vi Animal Husbandry - Dairy 33598.80 vii Animal Husbandry - Poultry 3175.20 viii Animal Husbandry - Sheep, Goat, piggery 8973.00 ix Fisheries 900.90 x Others – Bullock, Bullock carts 1296.00 Sub Total 314248.72 B Agriculture Infrastructure i Construction of storage facilities–Storage Godown / Market Yard 30615.00 ii Land Development, Soil conservation & Watershed Develop 13931.10 iii Others – Tissue culture / Agri bio-tech /Seed production etc 1940.63 Sub Total 46486.73

C Ancillary Activities i Food and Agro Processing 67102.56 ii Others – ACABC / FPOs etc 1872.00 Sub Total 68974.56 Total Agriculture 429710.01 II Micro Small and Medium Enterprises 342900.00 III Export Credit 28260.00 IV Education 10960.00 V Housing 56475.00 VI Renewable Energy 14572.80 VII Others (PMJDY/SHG/JLG etc) 17370.00 VIII Social Infrastructure involving Bank Credit 4220.00 Total Priority Sector 904467.81

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PLP 2016-17 Indore

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PLP 2016-17 Indore HOUSING RENEWABLE ENERGY OTHERS INFRASTRUCTURE 56475.00 14572.80 17370.00 SUPPORT 6.24% 1.61% 1.92% 4220.00 TOTAL AGRICULTURE EDUCATION 0.47% 429710.01 10960.00 47.51% 1.21% EXPORT 28260.00 3.12%

MSME 342900.00 37.91%

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PLP 2016-17 Indore

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PLP 2016-17 Indore

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PLP 2016-17 Indore

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