PLP 2016-17,

Executive Summary Garhwa district is situated in the south-western part of Chhotanagpur Division of . It is surrounded by districts of Rohtas and Aurangabad () in the north, Balrampur(Chattisgarh) in south, Palamau in east and Sonbhadra(UP) in west. The district is rich in flora and fauna. The district has 03 sub-divisions and 19 blocks. The district has 02 police sub- divisions named Garhwa and with 08 police stations. There are elected bodies in the 196 panchayats of Garhwa. The district has huge potential for development of Agriculture Sector. It needs mainly irrigation and other backward and forward linkage for sustainable growth. With an undulated, rolling topography with large quantum of surface runoff, frequent by errant rainfall, there is need and vast scope for institutional credit flow towards development of dryland based farming operations with promotion of short duration dryland crops and horticultural produce in the region. Institutional credit flow also needs to be tapped for development of the water resources in the region with special emphasis on watershed development with construction of suitable location specific Rainwater Harvesting Structures. This can be corroborated from the fact that the irrigated area, in the district as on date stands at 28.3% of net sown area and there is a need to double the same immediately. Besides agriculture, animal husbandry especially goatery/piggery and dairy sector as well as processing and value addition to non timber forest products in the district offers immense potential. There are markets available for sale of these processed and value added NTFP in the district. There is a non-operational chilling plant existing at the district headquarters. Considering the growing needs of the population in general and milk based products in particular, commercial dairy has large potential and may be taken up in the district on a cluster basis. There is a large potential for the banks for tapping the services sector industries viz; small business, SRTO and other allied services like motorcycle and small vehicle repairing, internet, computer and software services, professionals providing financial and advisory services etc. Credit flow :

A steady increase in the ground level credit disbursement is observed in the last few years ie GLC in 12-13 13-14 and 14-15 was, `108.21 crore `150.78 crore and `201.34 crore respectively. The CD ratio of all banks in 14-15 was 35.28%. The banks have adopted BC/ BF models to achieve 100% financial inclusion in the district. There are 61 bank branches and 55 CSPs till March 2015. There are 184000 accounts opened under Prime Minister Jan Dhan Yojana till 31.03.15. The banks may use the accounts for transferring government benefits through Direct Benefit Transfer schemes. The banks in the financial year 2014-15 disbursed `169.85 crores under priority sector out of the total disbursement of `201.34 crores under all segments. During the last three years all the banks achieved 62.88 % and 57.30 % of their average Priority sector and total Ground Level Credit targets respectively. The banks issued 19049 KCCs in 14-15 with loan of `86.53 crore. The per KCC loan is `45000/- The performance of all banks remained satisfactory in Ground level credit, Government sponsored schemes and Financial inclusion programmes except private banks i.e HDFC bank and Axis Bank.

Potential Linked Credit Plan ( PLP)

Keeping in view the GLC flow, the priority of Government, new infrastructure created and to reduce regional sectoral financial imbalances the exercise of preparation of Potential Linked Credit Plan was carried out. The present document is a revision exercise of the Base PLP earlier prepared in 12-13 by NABARD for the period 2012-13 to 2016-17. The revised PLP for the year 16-17 now prepared with reference to the projections in Base PLP and revisions made wherever necessary. In the present document the potential indicated for the Priority Sector for 4

PLP 2016-17, Garhwa year 2016-17 is `438.28 crore. The ACP target of 16-17 should be reflecting the potential indicated in the PLP. In view of this a fruitful discussion with all stake holders was done in the Pre PLP meeting before undertaking the revision of this PLP exercise by us. The PLP has been prepared indicating subsector-wise projections and justifications thereto. It will be seen crop loan potential modified from `164.21 crore indicated in the Base PLP to `171.67 crore in this revised PLP. It is due to change in the scale of finance as decided by the District Level Technical Committee Meeting (DLTC) convened by District Agriculture Officer Garhwa. For the Allied Agriculture Activities NABARD Jharkhand RO had convened a Unit Cost Committee Meeting for all line departments of the state and revised the unit costs of various investment activities under Farm sector. The sector wise projections made in the base PLP has gone revised due to upwardly revision of unit costs during the year. However the unit costs approved in the year 15-16 has been taken as a base for projecting the potential for the year 2016-17. Further the projections for bank finance are made after suitably reducing the margin to be given by the borrower for bank finance vary from sector to sector.

The entire potential PLP 16-17 has been divided in few broad categories to comply the RBI priority sector guidelines. Agriculture is categorized under, Farm credit, Agriculture infrastructure and Ancillary activities. MSME also categorized as Manufacturing, Services, KVI and Other finance. Few items which are under priority and given utmost priority for promotion by Govt. of have kept as separate chapters viz Export, Education, Housing, Renewable energy, SHG and Infrastructure support.

In this PLP document the potential of Water resources revised from `8.33 crore to `11.48 crore, Farm mechanisation from `11.45 crore to `21.72 crore, Plantation and Horticulture from `3.51 to `9.01 crore, Forestry from `4.14 crore to `5.94 crore, Animal Husbandry from `11.32 crore to `24.60 crore, Poultry from `2.98 crore to `7.86 crore, Sheep Goat and Piggery from `3.07 crore to `8.02 crore, Fishery from `3.35 crore to `14.76 crore, Bullock and Bullock Cart from `0.52 crore to ` 0.64 crore Storage godowns from `2.10 crore to `3.15 crore, Land Development from `3.14 to `6.21 crore, seed production and vermin compost new entry with `1.67 crore. The ancillary activities such as agro processing from `4.71 crore to `4.59 crore and agribusiness centres have projection of `0.68 crore. MSME manufacturing from `17.43 crore to `26.86 crore and service sector which was `65.00 crore reduced to `56.57 crore due to restructure of few sectors in comparison to the Base PLP. The KVIC and handloom have the projection of `2.71 crore and `1.60 crore. The other priority sector projections are Education `8.07 crore, Housing `24.58 crore, Renewable energy `1.15 crore, SHG/JLGs `21.20 crore and Social Infrastructure `3.67 crore are in the special chapters.

While taking up the exercise for the revision of PLP information on the activities prominent for various blocks are also collected. To support the banks in choosing a cluster financing few activities have been identified and indicated in the chapter for Area Based Schemes. They are Dairy Development in Bhagodih, Madwania in Ramuna Block, Khajuri, Chandwa, Bhushwa in Majhiaon Block and Gona in Block. Pig development in Medna, Mahulia, Birbandha in Garhwa Block rearing can be taken up on cluster. Goatery activities in Ranicheri, Bilaitikher, Chiniya in Chiniya Block, Sondag, Sonpurwa, Tamge in Ranka Block Ramkanda identified as most suitable. The available support for financing are also described. This will be helpful for both Government and the bankers. This is not exhaustive. There are some activities coming up in the district like backyard poultry, mushroom cultivation did not find the place in this document at present. However the banks may find comfortable for group financing under these activities.

NABARD also under the process of creating such innovative finance product like Drip irrigation, Producers group, Integrated farm models etc. from time to time. As it was announced in the

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PLP 2016-17, Garhwa

Budget NABARD may promote 5 lakh 'Bhumiheen Kisan' there will be thrust for formation of Joint Liability Groups by the banks in the year 2016-17. Further for storage godowns, Commercial Agriculture will be a thrust in the year as envisaged in the budget. The contract farming also may come up. The subsidy support on storage houses may continue for the year 2016-17.The Cooperative structure in the district may be introduced for bringing more people to banking fold.

The infrastructure like village roads, rail and electricity is the weak area of the district. The creation of Infrastructure like market yard and store houses may be supported by the government and private entrepreneurs. The State government has relaxed the Agriculture Produce marketing Act (APMC). Now the Government incentive is available for the private entrepreneurs for creating market yards, cold chains etc. It may create producers group, contract farming models etc. In this document some illustrative infrastructures which should paid attention have been listed out. The infrastructures like check dams, pond, aahars and bridges listed may be taken up with priority.

Apart from finance, the document discussed SHG and JLG in the district. In the district there are 5972 SHGs which are catering to the needs of at least 59720 families for credit delivery informally. Apart from this WSHG programme taken up by NABARD may form additional 2000 SHGs during the year 2016-17 so as to saturate the SHGs in the district. Similarly the NRLM may support all new and old SHGs with interest subsidy. The creation of federation at village, block and district level may be done for promotion of producer groups. The chapter describe the potential of SHG similar to a model of SHG movement demonstrated in Andhra Pradesh. The other aspects of microfinance has also been discussed in the chapter.

As per RBI instructions the Lead Bank System (SAMIS) is applicable for banks. At present the relevant return from banks are not received from the bank branches and hence the Lead District Manager is not able to generate the LBR reports useful for government and banks. As a result, it has become difficult to assess the sub-sector wise GLC flow and re-orient the direction of bank credit to the neglected sectors.

The data collected from the line departments after a discussion with them in a Pre PLP meeting held with them on 27 June 2015. Every chapter has described the financing potential for the year 2016-17 which may be reflected in the ACP 2016-17. The infrastructure, opportunities available, problems and the feasible solutions are indicated in each chapter. It will help in making Annual Credit Plan for banks and create infrastructure for development. The aim of financial inclusion is the inclusive growth. The finance with infrastructure and marketing will give the sustainable development to the people of the district. While discussing financial inclusion the SHG /JLG is viewed as effective tool for bringing the most excluded to the banking fold. This is a concise document which may guide both government and bankers in bringing national goal of agriculture and rural development through credit and support services. After launching of PMJDY it has become more illustrative document for financial planning for the district.

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