PLP 2016-17

EXECUTIVE SUMMARY A. Introduction

Aravalli is primarily an agricultural district with Cotton and wheat as the predominant crops. The other major crops cultivated are oilseeds, maize, potato etc. The small and marginal farmers are 67414 in the district constituting 66% of the total farmers’ population. The Potential Linked Credit Plan (PLP) for 2016-17 has been prepared aligning with the revised RBI guidelines on Priority Sector Lending. It estimates credit flow of Rs. 133934.12 lakh, of which, Crop Production sector has a major share of 70.36 % at Rs.94244.38 lakh. Term loan under agriculture is assessed at Rs. 27274.61 lakh accounting for about 20.36 %. Under MSME, Rs. 3002 lakh has been assessed as potential forming 2.24 % and balance at Rs. 9413.13 lakh has been estimated for other sectors like Exports, Education, Housing, etc. The activity-wise and block-wise assessment of potential is presented in Annexure I. The PLP projection for 2016-17 is higher by Rs.19196.60 lakh when compared to the PLP for the year 2015-16 representing an increase of 16.73 %. Further, the PLP projection is higher by Rs. 19196.60 lakh when compared to the ACP target for the year 2015-16. Suggested action Points in respect of major sectors and infrastructure/non-credit inputs are as under: B. Sector-wise comments on major sectors 1. Crop Production, Maintenance and Marketing

Adoption of advanced technologies for the restoration of soil health, mechanisation, and cultivation of suitable remunerative crops, effective pest and disease management are essential to step up the agricultural production. Modern methods of cultivation like Fertigation for sugarcane, Precision farming for Vegetables, Sprinkler irrigation for pulses etc. need to be adopted for increasing production and productivity. Banks may adopt Rupay KCC as an effective credit delivery mechanism and educate the farmers to subscribe to crop insurance schemes. 2. Water Resources and Land Development

As monsoon continues to be erratic, need for greater focus lies in water resource management. Farmers need to be incentivized to save water by adopting suitable cropping pattern on their farms. There is a need for conserving soil moisture security so that “more crop per drop” can be achieved. 3. Farm Mechanisation

Shortage of labour is a serious threat affecting the development of agriculture in the district. Enhanced credit flow for farm mechanisation should be ensured. Banks may increasingly adopt the strategy of JLG financing to enable SF/MF to purchase farm machineries and equipment. 4. Animal husbandry

Animal husbandry, particularly dairy is the most suitable subsidiary occupation. As dairy offers quick returns and near stable prices, banks may finance liberally ensuring tie-up arrangements with Dairy farms/societies. Banks may also encourage farmers to take up calf rearing and fodder cultivation, as viable activities with financial assistance.

C. Highlights of Developments, initiatives taken, achievements, specific prescriptions etc.

NABARD’s initiative on Natural Resources Management with focus on Tribal development in the district are (1). four watershed projects are under implementation covering about 4955.47 ha. area with total Financial outlays of Rs. 288.02 lakhs. (2). ‘WADI” model is holistic in approach, addressing production, processing and marketing of produce and other livelihood needs. 2000

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PLP 2016-17 ARAVALLI DISTRICT wadis each of one acre is also under implementation in Bhiloda and Vijaynagar tribal area of the district through grant support under Tribal Development Fund of NABARD.(3). Grant support to DCCB and RRB for Rupay card, ATM, Micro ATM and Financial Literacy Centers also provided by NABARD. (4) Under NABARD – RIDF, Rural Road Projects new rural approach roads and C.D. works covering 1159.91 kms. with total expenditure of Rs.17831.06 lakh has been sanctioned in the District so far. Further RIDF assistance also provided for Anganwadi, PHC, CHC, Irrigation Projects, Check dams and Rurban Drainage line projects. Rs. 423 crores provided for joining Vatrak, Mazum and Meshvo with Narmada through pipe line. Under RIDF XX (2014-15) NABARD had sanctioned an assistance of Rs.38298.30 lakh for construction of irrigation structures in tribal belt stretching from to Umargam covering 14 districts including Aravalli. (5). For Formation and registration of Farmers’ Producer Organisations NABARD has sanctioned three projects each with grant support of Rs. 10 Lakhs in the district.(6). To ensure effective price protection to the farmer, National Agricultural Market being proposed can be a solution backed by adequate storage facilities. So far NABARD has sanctioned 451 Rural Godowns in the district and further 66 PACS godowns are under construction with the help of subsidy scheme of Government of in the district.(7). To give thrust to the identified sector/activity by enhancing term loan disbursements through a banking plan, implementation of area based scheme/s has been suggested as a coordinated effort of NABARD, Lead Bank, other banks, line departments and other important stake holders. (8). GoI has established the National Adaptation Fund on Climate Change (NAFCC) with a budget provision of Rs.350 crores for the year 2015-16 and 2016-17. NABARD has been appointed as National Implementing Entity (NIE) responsible for implementation of adaptation projects under the Fund.

D. Thrust areas for 2016-17

The PLP document besides discussing the development initiatives taken by the in the fields of agriculture, horticulture, infrastructure focused emphasis on the following areas and called for collective participation of all stakeholders in the district to firm up the credit plan and to work towards achievement of targets for the year 2016-17.

 Promotion of Joint Liability Groups and ensuring credit linkage  Coverage of all eligible farmers under KCC and every household with Active Bank Account with minimum credit.  Capacity building of SHGs (Sakhimandals) and upscaling of SHG linkage.  Ensuring capital formation in agriculture by financing potential sectors mainly Farm Mechanization, Rural godowns, Dairy and Food and Agro processing. E. Conclusion “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 Panagariya, Vice Chairman, NITI Aayog Let the above quote be the guiding factor for implementation of PLP projections 2016-17.

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PLP 2016-17 ARAVALLI DISTRICT

Aravalli District Broad Sector wise PLP Projections 2016-17 (₹.lakhs)

Sr. No. Particulars PLP Projections 2016-17

A Farm Credit i Crop Production, Maintenance and Marketing 94244.38 ii Term Loan for agriculture and allied activities 22891.15 Sub Total 117135.53 B Agriculture Infrastructure 2436.46 C Ancillary activities 1947.00 I Credit Potential for Agriculture (A+B+C) 121518.99 II Micro, Small and Medium Enterprises 3002.00 III Export Credit 200.00 IV Education 589.50 V Housing 3520.00 VI Renewable Energy 34.00 VII Others 4058.75 VIII Social Infrastructure involving bank credit 1010.88 Total Priority Sector (I to VIII) 133934.12

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PLP 2016-17 ARAVALLI DISTRICT

ARAVALLI District – Summary of Sector / Sub-sector wise PLP projections - 2016-17 (₹.lakhs)

Sr. Particulars PLP Projections No. 2016-17 I Credit Potential for Agriculture

A Farm Credit i Crop Production, Maintenance and Marketing 94244.38 ii Water Resources 8619.61 iii Farm Mechanisation 3256.00 iv Plantation and Horticulture (including sericulture) 936.29 v Forestry and Waste Land Development 19.21 vi Animal Husbandry – Dairy 5054.80 vii Animal Husbandry – Poultry 41.58 viii Animal Husbandry – Sheep, Goat, Piggery, etc. 35.75 ix Fisheries (Marine, Inland, Brackish water) 30.57 x Others – Bullock, Bullock cart, etc. 4897.34 Sub Total 117135.53 B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market yards, Godowns, Silos, Cold storage units/ Cold storage 1686.40 chains) ii Land development, Soil conservation, Watershed development 421.56 iii Others (Tissue culture, Agri bio-technology, Seed production, Bio pesticides/ fertilizers, Vermin composting) 328.50 Sub Total 2436.46 C Ancillary activities i Food and Agro processing 330.00 ii Others (Loans to Cooperative Societies of farmers for disposing of their produce, Agri Clinics/ Agri Business 1617.00 Centres, Loans to PACS / FSS/ LAMPS, Loans to MFIs for on lending) Sub Total 1947.00 Total Agriculture 121518.99 II Micro, Small and Medium Enterprises i MSME – Investment Credit 2375.20 ii MSME – Working Capital 626.80 Total MSME 3002.00 III Export Credit 200.00 IV Education 589.50 V Housing 3520.00 VI Renewable Energy 34.00 VII Others (Loans to SHGs/ JLGs, loans to distressed persons to prepay non-institutional lenders, PMJDY, loans to 4058.75 state sponsored organisations for SC/ST) VIII Social Infrastructure involving bank credit 1010.88 Total Priority Sector 133934.12

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PLP 2016-17 ARAVALLI DISTRICT

District Profile (I). Predominant economic activities of the district:

(a) Agriculture (b) Dairy (c) Mineral wealth

(II). Major food / commercial and plantation / horticulture crops

Kharif: Cotton, Maize, Groundnut, Pulses and vegetables Rabi: Wheat, Mustard, Garlic, Ginger, Cumin and vegetables

(III). Special/additional/other features of the district relevant to credit

a).Dairy / milk production is the second main economic activity in the district. b).The agro based activities like rice/ pulse Mills and other agro - processing activities Grading, sorting and packaging have developed well in the district.

(IV).Other factors affecting the district rural economy and development of various sectors, are flood, drought, pest attack, hailstorms, etc.

(VI).Issue Critical to district:

a). Low Availability of ground Water in the district and its quality is a matter of concern. Suitable steps for drinking water are required in critical blocks like and .

b). There is a menace of wild animals such as wild pig, Blue Bell etc. and it is a danger for seeds planted as also to growing crop in the district. Community based "farm fencing"/ protection wall for entire farm area of community with nearby forest/ riverbanks is very cost effective and may be considered as essential requirement for Agriculture Development.

VII). Level of Poverty: As per 2011 census, there is 225808 rural house hold and 48867 urban house hold with total 274675 house hold in Aravalli district. BPL family in the district having 0 to 16 score is 41665 and having 17 to 20 score is 54038, thus family below poverty line is 34.84% in the district.

District Profile - Aravalli District - Aravalli State - Gujarat Division -  PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Sabarkantha & Aravalli Aravalli Total Geographical Area (Sq.km) 3232 Agro-climatic 13 Sub Region North of Gujarat Zone No. of Sub Divisions -- No. of Blocks 6 Climate Hot No. of Villages (Inhabited) 672 Soil Type Hard rock, formation sand stone and alluvial No. of Panchayats 672 3. LAND UTILISATION [Ha] Aravalli 4. RAINFALL Aravalli & GROUND WATER SK & Aravalli Total Area Reported (ha.) 323200 Rainfall [in mm] Normal Actual 2012 2013 2014 Forest Land 49688 818 829 852 978 818 Area Not Available for Cultivation 17801 Variation from 34 160 (-) 11 Normal

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PLP 2016-17 ARAVALLI DISTRICT

Permanent Pasture and Grazing Land 16303 Availability of Net annual recharge Net annual draft Balance Ground Water [Ham] Land under Miscellaneous Tree Crops NA 940.98 687.04 131.42 Cultivable Wasteland NA 5. DISTRIBUTION OF LAND HOLDING -Aravalli Current Fallow 11729 Classification of Holding Holding Area Other Fallow NA Nos. % to Total Ha. % to Total Net Sown Area 203566 <= 1 Ha 36272 35.5 22927 10.55 Total or Gross Cropped Area 236137 >1 to <=2 Ha 31142 30.48 51830 23.85 Area Cultivated More than Once >2 Ha 34754 34.02 142560 65.60 Cropping Intensity [GCA/NSA] 116 Total 102168 100.00 217317 100.00 6. WORKERS PROFILE [in '000] Aravalli 7. DEMOGRAPHIC PROFILE [in '000] -Aravalli Cultivators 102 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 68 Population 1040 532 508 913 127 Agricultural Laborers 67 Scheduled Caste 62 32 30 54 8 Workers engaged in Household Industries 3 Scheduled Tribe 214 107 107 207 7 Workers engaged in Allied Agro-activities 70 Literate 682 400 282 587 95 Other workers 108 BPL (Families) 96 8. HOUSEHOLDS [in '000] Aravalli 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Sk & Aravalli Total Households 275 Having brick/stone/concrete 371 Having electricity supply 400 houses Rural Households 226 Having source of drinking 356 Having independent 115 water toilets BPL Households in Aravalli 96 Having access to banking services Having radio/TV sets 1725 10. VILLAGE-LEVEL INFRASTRUCTURE [No] SK & 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [No] Sk & Aravalli Aravalli Villages Electrified 1372 Anganwadis 3205 Dispensaries - Villages having Agriculture Power Supply 1372 Primary Health Centers 65 Hospitals 22 Villages having Post Offices 510 Primary Health Sub-Centers 10 Hospital Beds 930 Villages having Banking Facilities 1205 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Sk & Aravalli Villages having Primary Schools 1360 Fertiliser/Seed/Pesticide 2503 Agriculture Pump 73714 Outlets [No] sets[No] Villages having Primary Health Centers 492 Total N/P/K Consumption 1021 Pump sets Energised [No] 45974 [MT] Villages having Potable Water Supply 1372 Certified Seeds Supplied [MT] 298 Agro Service Centers [No] 45 Villages connected with Paved Approach 1356 Pesticides Consumed [MT] Soil Testing Centers [No] 7 Roads 13. IRRIGATION COVERAGE [Ha] Sk & Aravalli Agriculture Tractors [No] 28372 Plantation nurseries [No] 265 Total Area Available for Irrigation (NIA + 177325 Power Tillers [No] 14107 Farmers' Clubs [No] 451 Fallow) Irrigation Potential Created 204700 Threshers/Cutters [No] 2390 KVKs [No] 1 Net Irrigated Area(Total area irrigated at 179300 least once) 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING SK & Aravalli Area irrigated by Canals / Channels 23200 Rural/Urban Mandi/Haat [No] 13 Wholesale Market [No] 8 Area irrigated by Wells 154300 Length of Pucca Road [Km] 4397 Warehouse Godown [No] 322 Area irrigated by Tanks 600 Length of Railway Line [Km] 186 Godown Capacity[MT] 10000 Area irrigated by Other Sources 1200 Public Transport Vehicle [No] 273865 Cold Storage [No] 30 Irrigation Potential Utilized (Gross 40.75% Goods Transport Vehicle [No] 14107 Cold Store Capacity[MT] 150000 Irrigated Area) 15. AGRO-PROCESSING UNITS SK & Aravalli 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS SK & Aravalli Type of Processing Activity No of Cap.[MT] Crop 2012-13 2013-14 Avg. Yield units [Kg/Ha] Food (Rice/Flour/Dal/Oil) 35 1/-/4/6/-/- Area in '00' Product Area in '00' Production Yield(Kg/Ha Ha ion '00' Ha in '00' MT ) MT Sugarcane (Gur/Khandsari/Sugar) - - Cotton 1383 269.73 1261 304.85 2417

Fruit (Pulp/Juice/Fruit drink) 1 Bajara 52 4.58 33 2.91 1098 Spices (Masala Powders/Pastes) NA NA Wheat 1543 347.14 1716 385.96 2471 Dry-fruit (Cashew/Almond) - NA Maize 594 360.1 579.85 944.92 1630 Cotton (Ginning/Spinning) Potato 118 387 169 427 253.03 Milk (Chilling/Cooling/Processing) 6 800 pulses 241 257.66 255 272.63 107 Meat (Chicken/Mutton) 1 106 Fennel 18 39.6 56 113 200 Animal feed (Cattle/Poultry) 1 158000 Production of Cotton(lint), Jute, Mesta etc. are in Bales(177.8 kg per bale in India)

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PLP 2016-17 ARAVALLI DISTRICT

17. ANIMAL POPULATION AS PER CENSUS 2012[in Nos.] 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES SK & SK & Aravalli Aravalli

Category of animal Total Male Female Vet. Hospitals/Dispensaries 87 Animal Markets [No] Nil [No] Cattle - Cross bred Disease Diagnostic Centers 37 Milk Collection Centers 1874 286707 20771 265936 [No] [No] Cattle - Indigenous Artificial Insemination 432 Fishermen Societies [No] 20 442143 237611 204532 Centers [No] Buffaloes Dairy Cooperative Societies 1874 Poultry hatcheries [No] 1 736475 54969 681506 [No] Sheep - Indigenous 61892 13061 47438 Improved Fodder Farms [No] nil Slaughter houses [No] nil Goat 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY SK & 333244 72433 260811 Aravalli Pig - Indigenous 111 81 30 Fish Production [MT] 786 Per cap avail. [gm/day] Horse/Donkey/Came 556/3159/1635 (No.) Egg Production [lakh No] 135 Per cap avail. [No/p.a.] 0.03 l Poultry - Indigenous 191341 Milk Production ['000 MT] 914 Per cap avail. [gm/day] 106 Data Source : District Statistical Department, Agri Department & Statistical Report

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PLP 2016-17 ARAVALLI DISTRICT

Banking Profile District - Aravalli State - Gujarat Lead Bank - Dena Bank

1. NETWORK & OUTREACH (As on 31/03/2015) Agency No. of No. of Branches No. of non-formal agencies Per Branch Outreach Banks/Soc associated . Total Rural Semi-urban Urban mFIs/mF SHGs/JLGs BCs/BFs Villages Households Os Commercial Banks 9 60 45 15 4017 130 Regional Rural Bank 1 12 9 3 1693 42 District Central Coop. Bank 1 32 30 2 223 Coop. Agr. & Rural Dev. Bank 1 5 3 2 0 Primary Agr. Coop. Society 265 265 265 0 0 Others 4 6 0 6 393 All Agencies 282 380 352 28 6343 172 6.65 2. DEPOSITS OUTSTANDING Agency No. of accounts Amount of Deposit [Rs.'000] '31-Mar-13 '31-Mar-14 '31-Mar-15 Growth (%) Share(%) '31-Mar- '31-Mar-14 '31-Mar-15 Growth(%) Share(%) 13 2014-15 Commercial Banks NA NA NA NA NA 35903700 13166400 15429300 17.19 70.26 Regional Rural Bank 359037 333904 325600 (-) 2 3955100 1228100 1347200 9.70 6.13 Cooperative Banks 443160 253852 522182 106 10389800 3219000 4212100 30.85 19.18 Others NA NA NA NA NA 7015600 1043100 973000 (-) 6.72 4.43 All Agencies NA NA NA NA NA 57264200 18656600 21961600 17.71 100 3. LOANS & ADVANCES OUTSTANDING Agency No. of accounts Amount of Loan [Rs.'000] '31-Mar-13 '31-Mar-14 '31-Mar-15 Growth(%) Share(%) '31-Mar-13 '31-Mar-14 '31-Mar-15 Growth(%) Share(%) 2014-15 Commercial Banks NA NA NA NA NA 24461400 10181100 11056600 8.60 62.93 Regional Rural Bank 48620 24956 29866 19.67% NA 2366300 753800 902100 19.67 5.13 Cooperative Banks NA NA NA NA NA 7002300 4018300 4564500 13.59 25.98 Others NA NA NA NA NA 9337400 1961000 1047600 -46.58 5.96 All Agencies NA NA NA NA NA 43167400 16914200 17570800 3.88 100 4. CD-RATIO 5. PERFORMANCE UNDER FIN. INCLUSION (No. of A/Cs) Agency CD Ratio Agency During 2014-15 Cumulative '31-Mar-13 '31-Mar-14 '31-Mar-14 Deposit Credit Deposit Credit Commercial Banks 71 78 72 Commercial Banks 129688 NA 129688 NA Regional Rural Bank 60 61 67 Regional Rural Bank 14269 NA 14269 NA Cooperative Banks 67 120 109 Cooperative Banks NA NA NA NA Others 137 188 110 Others NA NA NA NA All Agencies 79 92 82 All Agencies 143957 NA 143957 NA 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Agency Priority Sector Loans Loans to Agr. Sector Loans to Weaker Loans under DRI Scheme Loans to Women Sections Amount % of Total Loans Amount % of Total Amount % of Amount % of Total Amount % of Total [Rs.'000] [Rs.'000] Loans [Rs.'000] Total [Rs.'000] Loans [Rs.'000] Loans Loans Commercial Banks 10771100 97% 8326100 75 2932000 27 69400 0.39% 763900 4.35 Regional Rural Bank 857400 95% 633400 70 481900 53 0 0 105000 0.60 Cooperative Banks 4564500 100% 4154500 92 1970100 45 0 0 59200 0.34 Others 862700 95% 573400 71 264300 92 0 0.00% 33000 0.19 All Agencies 17055700 97% 13687400 78 5648300 32 69400 0.39% 961100 5.50 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Agency 2012-13 ( Un Divided Sabarkantha 2013-14 ( Aravalli ) 2014-15 ( Aravalli ) Avg. Ach[%] in Target Ach'ment [Rs. Ach'ment Target Ach'ment Ach'ment Target [Rs.'000] Ach'ment Ach'ment last 3 [Rs.'000] '000] [%] [Rs.'000] [Rs. '000) [%] [Rs. '000) [%] years Commercial Banks 10722800 10850300 101 5244400 7725600 147 5654400 5447600 96 115

Regional Rural Bank 1577700 1103200 70 668600 450300 67 696100 515900 74 70

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PLP 2016-17 ARAVALLI DISTRICT

Cooperative Banks 6479900 6845900 105 2307700 2389700 105 3005000 3158200 105 105 Others 359100 1362300 379 215000 617300 287 330000 419700 127 264 All Agencies 19139500 20161700 105 8435700 11182900 133 9685500 9541400 99 112 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS Broad Sector 2012-13 ( Un Divided Sabarkantha) 2013-14 (Aravalli) 2014-15 (Aravalli) Average Ach[%] in Target Ach'ment [Rs. Ach'ment Target Ach'ment Ach'ment Target [Rs.'000] Ach'ment Ach'ment last 3 years [Rs.'000] '000] [%] [Rs.'000] [Rs. '000] [%] [Rs. '000] [%] Crop Loan 13244600 13891900 105 4393700 7536900 172 7030000 6942600 99 125 Term Loan (Agr) 3590700 3087900 86 2682000 2114500 79 1297000 745700 57 74 Total Agri. Credit 16835300 16979800 101 7075700 9651400 136 8327000 7688300 92 110 Non-Farm Sector 383400 816300 213 675700 577800 86 344000 285900 83 127 Other Priority Sector 1920800 2365600 123 168000 356600 212 1014500 1567200 154 163 Total Priority Sector 19139500 20161700 105 8435700 11182900 133 9685500 9541400 99 112 9. RECOVERY POSITION ( As on 30 June) Agency 2012-13 2013-14 2014-15 Average Demand Recovery [Rs. Recovery Demand [Rs. Recovery Recover Demand [Rs. Recovery Recovery Rec. [%] in [Rs. '000] '000] [%] '000] [Rs. '000] y [%] '000] [Rs. '000] [%] last 3 years Commercial Banks Regional Rural Bank 1351165 1156625 86 1755184 1531244 87 1332709 1147957 86 86 Cooperative Banks 7749380 7640441 99 7663072 7599680 99 12105843 11953108 99 99 Others All Agencies 9100545 8797066 97 9418256 9130924 96 13438552 13101065 97 96 Information/ data given above for 2014 is pertains to newly carved Aravalli district & earlier figures are pertains to erstwhile Sabarkantha Sources : Lead Bank & SLBC

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