PLP 2016-17 : Hazaribagh 3
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PLP 2016-17 : Hazaribagh Executive Summary Hazaribagh district is situated in the north-eastern part of North Chhotanagpur Division of Jharkhand. It is surrounded by districts of Gaya (Bihar) and Koderma in the north, Giridih and Bokaro in the east, Ramgarh & Ranchi in the south and Palamu & Chatra in the west. The district is rich in flora and fauna. The district after its division on 12 September 2008 has 2 sub-divisions and 16 blocks. There are elected bodies in the 257 gram panchayats of Hazaribag. Main economic activities are agriculture and mining. Agriculture is mostly rainfed, the major crops cultivated being Paddy, Wheat and Maize. 61% of the agricultural land holding belongs to small and marginal farmers which has contributed to poor level of mechanised farm operations. 1.25% of the total geographical area and 2.88% of the net cropped area is being irrigated. The district is mono cropped area. Paddy is the main crop of the district followed by wheat, pulses and vegetables. Potato, Tomato and some other vegetables including coriander leaves are major commercial crops of the district. Except for a few orchards of mango and guava and some beehives, horticulture has not been adopted as a commercial activity and no plantation crop is being taken up in the district NRLM, MNREGA and PMEGP are the main poverty alleviation /employment generation programme. The district is very rich in mineral resources. The development of industry is poor due to lack of rail connectivity and poor electricity supply. There are 75 small godowns mostly owned by PACs and Market board. Two big storage godowns owned by Central Warehousing Corporation and a Private individual having storage capacity of 15000 MT each. The combines capacity of grain storage of all the 77 godowns in the district is 45300 MT. Ther are four Cold storages at Barhi, Kolghati, Kundilbagi and Babanbey are functional with combined cold storages capacity of around 20000 MT at any point of time. 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 , `467.39 Crore ` 631.42 crore and ` 701.55 crore respectively. The CD ratio of all banks in 14-15 was 35.90%. The banks have adopted BC/ BF models to achieve 100% financial inclusion in the district. There are 132 bank branches and 197 banking correspondants tillmarch154. There are 176911 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 Rs.550.25 crores under priority sector out of the total disbursement of 701.55 crores under all segments. During the last three years all the banks achieved 84.49 % and 81.45 % of their average Priority sector and total Ground Level Credit targets respectively. The banks issued 21385 KCCs in 14-15 with loan of ` 80.91 crore. Per KCC loan is ` 38000/- The performance of all banks remained satisfactory. Except for disbursement amount per KCC the banks performed well in Ground level credit, Government sponsored schemes and Financial inclusion programmes. 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 where ever necessary. In the present document the potential indicated for the Priority Sector for year 2016-17 is `861.28 whereas the Annual Credit Plan prepared for banks for 2015-16 was of ` 726.23 crore. Hence preparing the ACP for 16-17 on the basis of PLP 16-17 we may project a growth of 18.54 % more financing target over the current year. 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 ` 213.17 crore indicated in the Base PLP to `312.34 crore in this revised PLP. It is due to change in the scale of finance as decided by the District Level Task Force Meeting (DLTF) convened by District Agriculture Officer Hazaribag. For the Allied Agriculture Activities NABARD Jharkhand RO Ranchi 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 sectoral projections made in the Base PLP has gone 3 PLP 2016-17 : Hazaribagh 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 very from sector to sector. The entire potential PLP 16-17 has been divided in few broad categories to comply to the RBI priority sector guidelines.Agriculture is categorized under , Farm credit, Agriculture infrastructure and Ancillary activities. MSME also catagorised as Manufacturing, services, KVI and Other finance.Few items which are under priority and given utmost priority for promotion by Govt. of India haven 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 `19.31 Crore to `28.24 Crore, Farm mechanisation from ` 30.61 Crore to `36.97 Crore, Plantation and Horticulture from `20.34 to `30.66 Crore, Forestry from `1.02 Crore to `1.19 Crore, Animal Husbandry from `28.72 Crore to Rs.48.09 Crore, Poultry from `` 8.41 Crore to `12.08 Crore, Sheep Goat and Piggery from `5.09 Crore to Rs.7.86 Crore, Fishery from ` 6.23 Crore to ` 8.45 Crore, Bulloch and Bullock Cart from `3.47 to `4.85 Crore,Storage godowns from `18.37 Crore to `19.87 Crore, Land Development from `3.30 to `8.08 crore,seed production new entry with `0.99 crore. MSME manufacturing from `45.27 Crore to `42.71 Crore due to reduction in working capital projected earlier combinely for agro processing, Food and Processing from `1.62 Crore to `2.64 Crore and service sector from `32,26 crore to `57.24 Crore in comparison to the Base PLP. The other priority sector projections are KVI sectors 3.05 Crore,Handloom `10.68 crore , Education `30.88 Crore, Housing `70.80 Crore, Renewable energy `0.24 Crore and Infrastructure `1.98 Crore are in the special chapters. Under Farm sector there are many type of subsidies available from Government and hence banks find easy for finance. Under MSME and OPS though subsidy through DIC, KVIC and KVIB are available under some items. However the problem of electricity and communication remained a big obstacle for industrialization. In addition to this many of the line departments are poorly manned and often transferred within a short span. The issues should be addressed by Government for bringing a sustainable development. The Ministry of Renewable sources of Energy GOI has a thrust on solar lighting and solar pumpset. It has got mention of projection and specially designed banking plan for solar pumpsets for 4 blocks are indicated in area banking plan. 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 Solar pumpset for Barkagaon Keredari , Churchu and Dadi block, Goatery Activities in Churchu block. 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 back yard poultry,seed venture, piggery activities, Mushroom cultivation did not find the place in this document at present. However the banks may find comfortable for group financing under these activities as discussed under 'Area Based Schemes'. 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 Budget NABARD may promote 5 lakh 'Bhoomin Heen Kisan' there will be thrust for formation of Joint Liability Groups by the banks in the year 2016-17.Further the 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 also be strengthened 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 4 PLP 2016-17 : Hazaribagh market yards, cold chains etc.