PLP 2016-17 Kargil (J&K)

Home , Kargil, Kargil district, Ladakh, Zanskar

Executive Summary

Kargil district is located in the western portion of Ladakh Region in the state of Jammu & Kashmir. Kargil forms the Northern Tip of the Indian sub-continent along with Leh. It falls in Indus Valley region and is one of the most elevated regions on the earth with altitudes reaching 4500 meters and more above sea level at places. Topographically, whole of the district is mountainous with three parallel ranges of the Himalayas, the Zanskar and the Karokoram. Kargil is one of the largest districts in the country. The total area of Kargil district is 14036 sq km and declared as a tribal district. The district has extremely cold climate and all the blocks remain cold throughout the year. Winters are icy cold and harsh. The region remains inaccessible during winter as temperature falls as low as minus 60 degree Celsius at several places. Drass, the one of the block of Kargil district has been declared as the second coldest inhabited place in the world after Siberia. Rainfall is scanty, with average of 26 cm. Generally, climate remains dry in summer. About 300 days remain sunny throughout the year. As per 2011 census, population of the district was 140802. Poor road network, transport facilities and accessibility is one of the major constraints behind outreach of the rural people to the development interventions undertaken by various agencies in the district. The district has total 21 number of branches of which 07 are rural, 09 are semi-urban and 05 are urban branches. State Bank of India is the Lead Bank of the district. C:D ratio of Kargil district is 30.41%. Financial Inclusion programme and Self Help Group movement for credit linkage of the poor is yet to make complete inroads into the district, particularly the remote areas due to poor institutional infrastructure and manpower for awareness, sensitization and social mobilization of the rural people. Total flow of Ground Level Credit (GLC) under priority sector was `70.76 crore, `57.70 crore, and `50.09 crore, during 2012-13, 2013-14 and 2014-15, respectively. District Credit Plan showed achievement of 128%, 69% and 47%, over same period. Share of agriculture credit in total GLC during the past three years was 31%, 40% and 34%, respectively. The projections of Potential Linked Credit Plan (PLP) of Kargil district for 2016-17 are assessed at `142.11 crore. Sector wise coverage of credit potential is indicated as under: `51.74 crore for Agriculture (Farm credit, Agriculture infrastructure and Ancillary activities), `49.83 crore for MSME (including medium enterprises), `0.23 crore for Export Credit, `3.78 crore for Education, `13.11 crore for Housing, `0.48 crore for Renewable Energy, `21.19 crore for “Others” and `1.76 crore for Social Infrastructure. PLP for credit for 2016-17 marks 20% growth over PLP of 2015-16, for the Priority Sectors in Kargil district. Major constraints likely to affect the translation of potential for institutional credit assessed under the PLP-2016-17 into actual flow of GLC in various sectors are presented as under: poor outreach of development programmes of State and Central Government, poor branch network, low spread of BCs, lack of SHPIs, lack of basic rural infrastructure facilities, apathy of farmers/ rural people towards banks, lack of coordination among agencies, absence of Crop Insurance facilities due to poor infrastructure and awareness, lack of off- farm skills and facilities for rural industrial entrepreneurship, etc. Suggested action points to circumvent the adverse impacts of constraints are as under: social mobilization, creation of awareness, skill formation drives, enhancing coordination among agencies, financial literacy camps, etc. NABARD has initiated steps in this direction by promotion of Women SHGs, Area Development Schemes, organizing FLCs, etc. Thrust areas of NABARD for 2016-17 are planned in the area of promoting SHGs, JLGs, POs, cooperatives, etc. which require optimum coordination among all agencies and stakeholders in the district including decentralized participation of the rural people. Needless to mention, the district requires

PLP 2016-17 Kargil (J&K) adequate capital formation in the desired/ priority sectors to meet aspirations/ requirements of the local population to ensure inclusive growth of all. Effective monitoring and review of implementation of PLP and Annual Credit Plan through DCC/ DLRC and BLBC meetings is required to achieve the stated objective of inclusive growth.

Disclaimer: The GLC reported in PLP document does not cover Jewel Loans

PLP 2016-17 Kargil (J&K)

Broad Sector wise PLP Projections - 2016 -17

Sr. Sector PLP Projections No. 2016-17

(` lakh) A Farm Credit

i Crop Production, Maintenance and Marketing 2018.25

ii Term Loan for agriculture and allied activities 2232.36

Sub Total 4250.61

B Agriculture Infrastructure 504.63

C Ancillary activities 418.50

I Credit Potential for Agriculture (A+B+C) 5173.74

II Micro, Small and Medium Enterprises 4982.65

II Export Credit 22.50

IV Education 378.00

V Housing 1310.63

VI Renewable Energy 48.30

VII Others 2119.20

VIII Social Infrastructure involving bank credit 175.99

Total Priority Sector (I to VIII) 14211.00

PLP 2016-17 Kargil (J&K)

Summary of sector/sub-sector wise projections - 2016-17

Name of the District: Kargil (Amount `lakh) Sr. Sector/sub-sector PLP Projections No. 2016-17 I Credit Potential for Agriculture A FARM CREDIT i) Crop Production, Maintenance & Marketing 2018.25 ii) Water Resources 169.20 iii) Farm Mechanisation 243.32 iv) Plantation & Horticulture 225.77 v) Forestry & Waste Land Development 14.63 vi) AH - Dairy Development 648.90 vii) AH - Poultry Development 404.19 viii) AH - Sheep / Goat Development 138.83 ix) Fisheries Development 57.42 x) Others – Bullock, Bullock Cart, etc 330.12 Sub Total 4250.61 B AGRICULTURE INFRASTRUCTURE i) Construction of Storage Facilities 355.50 ii) Land Development 144.63 iii) Others – Vermi Composting 4.50 Sub Total 504.63 C ANCILLARY ACTIVITIES i) Food and Agro Processing 378.00 ii) Others – Agri Clinic Agri Business Centre 40.50 (ACABC) Sub Total 418.50 TOTAL AGRICULTURE 5173.74 II MSME – Micro Small and Medium Enterprises i) MSME – Investment Credit 4309.90 ii) MSME – Working Capital 672.75 Sub Total 4982.65 III Export Credit 22.50 IV Education 378.00 V Housing 1310.63 VI Renewable Energy 48.30 VII Others 2023.20 VIII Social Infrastructure Involving Bank 175.99 Credit Total Priority Sector (I to VIII) 14211.00

PLP 2016-17 Kargil (J&K)

MAP of KARGIL DISTRICT

PLP 2016-17 Kargil (J&K)