PLP 2016-17

Executive Summary

There can be little disagreement that the fastest relief to the poor in would come from productivity growth in agriculture. This is where nearly half of the workforce is employed. With the share of agriculture in the GDP at about 15 percent now, this half of the workforce is also significantly poorer than the other half, employed in industry and services”. Shri. Arvind Pangariya, Vice Chairman, NITI

And to increase the productivity of agriculture and allied activities, it is imperative to promote asset creation in agriculture. In fact, finance ministers, both at centre and the state in their budget speeches over several years are expressing their concerns about the fact that the long term investment credit in agriculture is going down as compared to short term crop loan and how this is severely hampering asset creation in agriculture and allied sector. Unless assets are created, by merely increasing the quantum of production credit, the long term goal of increasing the share of agriculture in GDP and inclusive growth of the large population dependent on agriculture and allied activities will remain elusive. Therefore, the need of the hour is to accelerate the pace of capital formation in this sector. As bank credit plays a significant role in creation of these capital assets, both the central and state government have announced a plethora of schemes with capital investment subsidy so as to encourage farmers to avail loans to create capital assets. The district of Angul was carved out of Dhenkanal district in 1993. The district belongs to the mid central table land according to the agro-climatic conditions. The district has a geographical area of 637500 ha of which 32% (211291 ha) is cultivable. The district is known for its coal mines and the estimated deposits spread over , Kaniha and Chhendipada blocks which contain nearly 20% of the total coal deposits of the country. This has attracted power generation industry and industries requiring high amount of power to the district resulting in Angul being one of the most industrialised districts of the state. The district has also extensive forest cover which is almost 40% of the geographical area and it is the only district served by the two biggest rivers of viz. Mahanadi &Brahmani. Nature has endowed the district with enviable resources. Though the distribution is skewed, the district is served by a network of as many as 156 bank/ financial institution branches. In the agriculturally potential blocks of , and blocks, altogether, there are only 25 branches. Out of 209 Gram Panchayats as many as 163 are unbanked. From a modest ` 175.84 crores for priority sector in 2005-06, the annual credit plan has reached an outlay of ` 1637.53 crore for 2015-16. Total agriculture sector has seen a rise from ` 104.22 crore to ` 1060.41 crore. However, the achievement has not been that spectacular as during the last three years; from an amount of ` 607.24 crore during 2012-13 it has increased to ` 809.05 crore during 2014-15. During the same three years, the total agriculture credit has increased from `332.24 crore to ` 568.09 crores. But it is a matter of concern that long term investment credit during the last three years has increased from ` 45.59 crore to only ` 50.38 crore. The dismal

1

PLP 2016-17 Angul

performance of the RRB and the DCCB is disconcerting, though the performance of commercial bank is not also encouraging. Though the rate of achievement vis-à-vis target of the ACP has come down from 58% during 2012- 13 to 56% during 2014-15, there is no denying the fact that high potential exists in the district to be tapped by the banking system. It is heartening that the state government has announced a plethora of schemes under a new agriculture policy announced during 2013. Further, Odisha is only the second state in the country to have a special agriculture budget for the last 3 years that reflects the commitment and interest shown by the state government towards agriculture. Accordingly, keeping in view of the concern of the union finance minister and the conducive atmosphere being created by the state government, as also the changes brought in by the Reserve Bank of India in priority sector classification, PLP projection for 2016-17 has been revised upwardly by 11%from `1637.53 crore to ` 1815.20 crore. Projections for almost all the sub sectors, including production credit, water resources, plantation horticulture, animal husbandry and storage and market yards have been revised. New sectors like export credit and social infrastructure has also been added to the projection. In view of the changes brought about by RBI in coverage, composition and classification of activities covered under priority sector lending (PSL), the composition and content of PLP document have been revised so as to align with the revised guidelines on PSL. The state government may bring in suitable legislation to facilitate credit to marginal farmers, share croppers and oral leases in JLG mode as their number is increasing by the year. Proper land records with records of rights are still a far cry in the state which precludes the owner to create mortgage to avail bank credit. The state government may complete the process on war footing. Lack of proper man power plagues the functioning of horticulture, fisheries and animal resources development which may be addressed without further delay. The state government needs to create awareness among the field functionaries who in turn may disseminate it among farmers and entrepreneurs on various schemes of the state and central governments and also take the bankers on board. Because as much as 58% of the cultivable land is high land, and the district is one of the traditionally stronghold of fruit crop production, the horticulture department may motivate more and more farmers to go for horticulture/ tree based production systems. Though the district has become an industrial hub with operations of industrial and mining behemoths like NALCO, NTPC, JSPL, MCL etc. the commensurate growth of downstream industries is negligible. The proposed aluminum park and steel park may be operationalized fast so that substantial credit off take for MSME sector as also export credit can happen. With rapid industrialization, urbanization will also take place where people, in all likelihood, may change their food habits, for which meat, dairy and fish production may have to be increased manifold. The chilling plant at Angul may be operationlised withot further delay. Reservoir fishery, as the district has large reservoirs at Manjore, Rengali, Samal and Derjang, may be given importance. To make traditional fish farming in village/ panchayat ponds economically remunerative, production of yearlings may be encouraged.

2

PLP 2016-17 Angul

With urbanization and economic prosperity, service sector, housing and education will be major aras for investment and bankers may avail this opportunity. As discussed in chapter 6, two area based schemes one for dairy in Athmallik block and another on poultry in Angul block have been proposed. The district administration’s ambitious programme for convergence with MGNREGA has already spurred the farmers to take up these activities. Further as forward and backward linkages are available / will be available in the near future, bankers may come forward to invest in these activities. NABARD is developing 13000 ha on watershed basis in Angul and Athmallik blocks. The land has been/ is being developed and the community organisations have been made vibrant which gives bankers opportunity to invest more in the area and increase GLC. MEDPs have been conducted over the years for matured SHGs who can absorb more credit. It is for the bankers to credit link these SHGs with higher order of credit. More and more land is being cultivated by marginal farmers, oral lessees and share croppers. Absence of title deeds of land deprive these farmers from accessing institutional credit which force them to borrow at usurious rates and when that is not available, proper inputs cannot be applied in the fields they cultivate resulting in low productivity. To address this problem it is suggested to form JLGs of marginal & tenant farmers in a mission mode. Last year the Cooperative structure actively participated in the programme which saw nearly 700 JLGs credit linked. It is time, the commercial banks and the RRB followed suit. As the district till now does not have proper storage facilities – both dry and wet – except the revamping of the derelict cold storage at Maratira, it is incumbent on all the stakeholders to have them with bank credit. As the district is a major producer of fruits, vegetables and condiments (onion), producers’ organisations need to be formed to eliminate middle men. Major irrigation project may be completed as soon as possible. Hidsing irrigation project for which gram sabhas have already been conducted may be fast tracked. The Samakoi irrigation project which has been kept in the back burner for quite some time may be revived. The pace of implementation of projects under OCTMP may be expedited. The defunct lift irrigation points may be revived. Attention may be given so that Water User Association WUAs/ Pani Panchayats become more vibrant. Rural godowns, Onion godowns, cold storages, pack houses and ripening chambers which need to be set up by private entrepreneurs may be given all kinds of support by the district administration. To make the projections made in the PLP a reality, concerted efforts has to be made by all stakeholders, farmers, entrepreneurs, line department personnel, administrators and bankers. For effective planning and monitoring the SAMIS reporting system needs to be strengthened. In the present revised system disaggregated data for branch/ block are difficult to get which hampers effective monitoring at ground level. The existing forums for planning and monitoring viz. DCC/DLRC and BLBCs have to be strengthened and participation of all concerned ensured to make them vibrant and effective. The interest of large number of oral lessees, tenant farmers and share croppers must be protected and given the importance it deserves.

3

PLP 2016-17 Angul

Broad Sector-wise PLP Projections- 2016-17

(` Lakh) Sr Particulars PLP Projeections 2016-17 No A Farm Credit i Crop production and Maintenance and Marketing 83754.00 ii Term Loan for Agriculture and allied activities 26161.13 Sub Total 109915.13 B Agriculture Infrastructure 2927.60 C Ancillary activities 1374.95 I Credit Potential for Agriculture (A+B+C) 114217.68 II Micro Small and Medium Enterprises 47250.30 III Expoort Credit 300.00 IV Education 3750.00 V Housing 9580.50 VI Renewable Enerrgy 74.56 VII Others 5922.00 VIII Social Infrastructure involving Bank Credit 425.00 Total Priority Sector 181520.04

Projections (2016‐17) Agriculture

MSME

Export Credit

Education

Housing

Renewable Energy

Others

Social Infrastructure involving Bank Credit

4 PLP 2016-17 Angul

Summary of Sector / Sub-Sector wise PLP Projections- 2016-17 (` Lakh) Sl Activity ( Sector & Sub Sector) PLP Projections 2016-17 No I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 83754.00 ii Water Resources 2472.96 iii Farm Mechanisation 8905.60 iv Plantation and Horticulture 2484.63 v Forestry and Waste Land Development. 440.82 vi Animal Husbandry-Dairy 4434.85 vii Animal Husbandry-Poultry 1749.05 viii Animal Husbandry-Sheep, Goat and Piggery 3196.82 ix Fisheries 1101.40 x Others 1375.00 Sub Total 109915.13 B Agriculture Infrastructure i Construction of storage facilities 1884.30 ii Land Development 998.90 iii Others 44.40 Sub Total 2927.60 C Ancillary Activities i Food and Agro processing 1265.45 ii Others 109.50 Sub Total 1374.95 Total Agriculture 114217.68 II Micro Small and Medium Enterprises i MSME – Investment Credit 38242.50 ii MSME – Working Capital 9007.80 Total MSME 47250.30 III Export Credit 300.00 IV Education 3750.00 V Housing 9580.50 VI Renewable Energy 74.56 VII Others (Loans to SHG/JLG, PMJDY etc.) 5922.00 VIII Social Infrastructure involving Bank Credit 425.00 Total Priority Sector 181520.04

5

PLP 2016-17 Angul

District Map

6 PLP 2016-17 Angul

District Profile

District - State - ODISHA Division - Northern Revenue Division ANGUL

1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 6375 Agro-climatic Zone Eastern Plateu & Hills-Eastern Plains No. of Sub Divisions 4 No. of Blocks 8 Climate Dry Sub-humid No. of Villages (Inhabited) 1661 Soil Type Medium to Deep Black,Red & Yellow No. of Panchayats 209 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported 623000 Normal 2012 2013 2014 Actual Forest Land 272000 Rainfall [in mm] 1402 1234.08 1576.57 1420.57 Area Not Available for Cultivation 67000 Variation from Normal % -11.95 12.45 1.32 Permanent Pasture and Grazing Land 11000 Availability of Ground Water Net annual recharge Net annual draft Balance [Ham] Land under Miscellaneous Tree Crops 28000 73400 Cultivable Wasteland 11000 5. DISTRIBUTION OF LAND HOLDING Current Fallow 26000 Holding Area Classification of Holding Other Fallow 15000 Nos. % to Total Ha. % to Total Net Sown Area 193000 <= 1 Ha 117094 77 69385 47 Total or Gross Cropped Area 308532 >1 to <=2 Ha 25452 17 43482 30 Area Cultivated More than Once 93644 >2 Ha 8904 6 33740 23 Cropping Inensity [GCA/NSA] 145 Total 151450 100 146607 100 6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000] Cultivators 138 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 44 Population 1272 655 617 1065 206 Agricultural Labourers 127 Scheduled Caste 162 Workers engaged in Household Industries 39 Scheduled Tribe 113 Workers engaged in Allied Agro-activities 5 Literate 869 Other workers 162 BPL 8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 230711 Having brick/stone/concrete houses Having electricity supply Rural Households Having source of drinking water Having independent toilets BPL Households 120608 Having access to banking services Having radio/tv sets 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 1356 Anganwadis 1646 Dispensaries 35 Villages having Agriculture Power Supply 1356 Primary Health Centres 27 Hospitals 6 Villages having Post Offices 228 Primary Health Sub-Centres 10 Hospital Beds 322 Villages having Banking Facilities 1660 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools Fertiliser/Seed/Pesticide Outlets [Nos] 67/103/23 Agriculture Pumpsets[Nos] 5028 Villages having Primary Health Centres 27 Total N/P/K Consumption [MT] 7035 Pumpsets Energised [Nos] Villages having Potable Water Supply 1602 Certified Seeds Supplied [MT] 642 Agro Service Centres [Nos] Villages connected with Paved Approach Roads Pesticides Consumed [MT] 317 Soil Testing Centres [Nos] 1 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 496 Plantation nurseries [Nos] 9 Total Area Available for Irrigation (NIA + Fallow) Power Tillers [Nos] 68 Farmers' Clubs [Nos] 327 Irrigation Potential Created Threshers/Cutters [Nos] 419 Krishi Vigyan Kendras[Nos] 1 Net Irrigated Area(Total area irrigated at least once) 47169 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING Area irrigated by Canals / Channels 25582 Rural/Urban Mandi/Haat [Nos] Wholesale Market [Nos] Area irrigated by Wells 5636 Length of Pucca Road [Km] 9554 Godown [Nos] Area irrigated by Tanks Length of Railway Line [Km] 103 Godown Capacity[MT] Area irrigated by Other Sources 15951 Public Transport Vehicle [Nos] Cold Storage [Nos] 1 Irrigation Potential Utilized (Gross Irrigated Area) Goods Transport Vehicle [Nos] Cold Store Capacity[MT] 500MT 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS Type of Processing Activity No of units Cap.[MT] 2011-12 2012-13 Avg. Yield Crop Food (Rice/Flour/Dal/Oil/Tea/Coffee) 6 Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) [Kg/Ha] Sugarcane (Gur/Khandsari/Sugar) Paddy 83960 174600(rice) 83960 174600(rice) 2080 Fruit (Pulp/Juice/Fruit drink) 1 Maize 4910 7440 4910 7440 1471 Spices (Masala Powders/Pastes) 1 Wheat 300 510 300 510 1710 Dry-fruit (Cashew/Almond/Raisins) Pulses 101920 49880 101920 49880 489 Cotton (Ginnining/Spinning/Weaving) Oilseeds 58160 40330 58160 40330 693 Milk (Chilling/Cooling/Processing) 3 Vegetables 23310 332840 23310 332840 14279 Meat (Chicken/Motton/Pork/Dryfish) Spices 8950 16650 8950 16650 1860 Animal feed (Cattle/Poultry/Fishmeal) 1 17. ANIMAL POPULATION AS PER CENSUS 2012 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES

Category of animal Total Male Female Veterinary Hospitals/Dispensaries [Nos] 16 / 40 Animal Markets [Nos] 2 Cattle - Cross bred 27384 16039 11345 Disease Diagnostic Centres [Nos] 1 Milk Collection Centres [Nos] 3 Cattle - Indigenous 391315 286690 104625 Artificial Insemination Centers [Nos] 79 Fishermen Societies [Nos] 5 Buffaloes 12446 8897 3549 Animal Breeding Farms [Nos] 1 Fish seed farms [Nos] 4 Sheep - Cross bred Animal Husbandry Tng Centres [Nos] 1 Fish Markets [Nos] Sheep - Indigenous 4442 Dairy Cooperative Societies [Nos] 47 Poultry hatcheries [Nos] 4 Goat 207056 Improved Fodder Farms [Nos] 1 Slaughter houses [Nos] Pig - Cross bred 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Pig - Indigenous 708 Fish Production [MT] 5370 Per cap avail. [gm/day] 13 Horse/Donkey/Camel Egg Production [Lakh Nos] 152 Per cap avail. [nos/p.a.] 13 Poultry 162919 Milk Production ['000 MT] 17 Per cap avail. [gm/day] 41 Meat Production [MT] 2047 Per cap avail. [gm/day] 5

Item Nos. 1, 6, 7, 9 & 10 - Census 2001; Item Nos. 2, 3, 5, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of Agr./Water Resources; Item No. 8 - BPL Survey 2002; Item No. 15 - District Ind Centre/Dir. of Eco. & Stat.; Item No. 16 - DACNET; Item No. 17 - AH Census 2003; Item Nos. 18 & 19 - Dir. of Animal Hus./Dir. of Sources (if not mentioned against Eco. & Stat. the respective item):

7 PLP 2016-17 Angul

Banking Profile

District - ANGUL ODISHA Lead Bank - UCO Bank

1. NETWORK & OUTREACH (As on 30/06/2015) No. of No. of Branches No. of non-formal agencies assoiated Per Branch Outreach Agency Banks/Soc. Total Rural Semi-urban Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Households Commercial Banks 28 110 59 51 16 2097 Regional Rural Bank 1 31 27 4 54 7442 District Central Coop. Bank 1 11 6 5 151 20973 Coop. Agr. & Rural Dev. Bank 1 2 2 830 115355 Primary Agr. Coop. Society 103 16 2240 Others 2 2 2 830 115355 All Agencies 33+103 156 92 64 2. DEPOSITS OUTSTANDING No. of accounts Amount of Deposit [`'000] Agency 31-Mar-12 31-Mar-13 31-Mar-14 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) Commercial Banks 34559283 42456806 47869467 12.7 81.84 Regional Rural Bank 5597574 5513990 5687546 3.1 9.72 Cooperative Banks 5252988 4282851 4935326 15.2 8.44 Others All Agencies 45409845 52253647 58492339 11.9 100.00 3. LOANS & ADVANCES OUTSTANDING No. of accounts Amount of Loan [`'000] Agency 31-Mar-12 31-Mar-13 31-Mar-14 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) Commercial Banks 17857031 20975084 21259293 1.4 75.46 Regional Rural Bank 3051819 3039376 3147491 3.6 11.17 Cooperative Banks 2897114 3851973 3652241 -5.2 12.96 Others 112973 112973 112973 0.40 All Agencies 23918937 27979406 28171998 0.7 100.00 4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs) CD Ratio During 2013-14 Cumulative Agency Agency 31-Mar-13 31-Mar-14 31-Mar-15 Deposit Credit Deposit Credit Commercial Banks 52 49 44 Commercial Banks Regional Rural Bank 55 55 55 Regional Rural Bank Cooperative Banks 55 90 74 Cooperative Banks Others Others All Agencies 53 54 48 All Agencies 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Priority Sector Loans Loans to Agr. Sector Loans to Weaker Sections Loans under DRI Scheme Loans to Women Agency Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total [`'000] Loans [`'000] Loans [`'000] Loans [`'000] Loans [`'000] Loans Commercial Banks 12150269 57 4167318 20 4283268 20 19639 0.09 Regional Rural Bank 2371903 75 1072801 34 930661 30 Cooperative Banks 3019645 83 2333627 64 2139031 59 Others 109213 97 3500 3 All Agencies 17651030 63 7573746 27 7356460 26 19639 0.07 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2012-13 2013-14 2014-15 Average Agency Target Ach'ment Ach'ment Target Ach'ment Ach'ment Target Ach'ment Ach'ment Ach[%] in [`'000] [` '000] [%] [`'000] [` '000] [%] [`'000] [` '000] [%] last 3 years Commercial Banks 4566605 3152392 69.03 5255337 3285382 62.52 6829649 3493939 51.16 59.64 Regional Rural Bank 1688553 1033810 61.22 1953676 459100 23.50 2308299 712110 30.85 37.06 Cooperative Banks 4095442 1886149 46.05 5017518 3024941 60.29 5287452 3884440 73.47 61.08 Others All Agencies 10350600 6072351 58.67 12226531 6769423 55.37 14425400 8090489 56.09 56.57 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2012-13 2013-14 2014-15 Average Broad Sector Target Ach'ment Ach'ment Target Ach'ment Ach'ment Target Ach'ment Ach'ment Ach[%] in [`'000] [` '000] [%] [`'000] [` '000] [%] [`'000] [` '000] [%] last 3 years Crop Loan 5328000 2866463 53.80 6844089 4218900 61.64 7319300 5176976 70.73 62.91 Term Loan (Agr) 1182100 455899 38.57 1396798 363872 26.05 2322100 503899 21.70 27.01 Total Agri. Credit 6510100 3322362 51.03 8240887 4582772 55.61 9641400 5680875 58.92 55.70 Non-Farm Sector 785000 369830 47.11 849960 374610 44.07 1214689 453361 37.32 42.03 Other Priority Sector 3055500 2380159 77.90 3150045 1812041 57.52 3569311 1956253 54.81 62.90 Total Priority Sector 10350600 6072351 58.67 12240892 6769423 55.30 14425400 8090489 56.09 56.55

Sources : Lead Bank & SLBC

9