PLP 2016-17 Tiruvarur district EXECUTIVE SUMMARY Accelerating the pace of capital formation in agriculture and allied sector ” is the main theme of this Potential Linked Credit Plan for 2016-17 Tiruvarur district is one of the three Delta districts and falls in zone II of Agro-climatic zone. The district has a total population of about 12.64 lakh comprising 6.27 lakh males and 6.38 lakh females as per 2011 census. Agriculture is the main activity in the district. The Gross District Domestic Product and per capita income are `. 3, 57,213 lakh and `. 27,408 respectively for the year 2010-11. The district produces about 13% of total paddy production in the state. Net cultivated area constituting 73% of the total geographical area of 2377sq.kms. There are 17 rivers namely Odampokkiyar Vettar Vennar, Mudikondan, Nandalar, Nattar,Koraiyar, Valavaikkal, Kaattar, Pandavaiar, HarichandraNathi, Mullaiyar, Pamaniyar, Adappar, Vellaiyar, Marakka Koraiyar, Vadavar Extn. and 4 lakes namely Vaduvur lake, Thirumeni lake, Uthayamarthandapuram lake, Muvanallur lake in the district. There are 13 canals covering a total length of 612 km in all the blocks of the district which act as the major source of irrigation. The grosss area irrigated is 280143Ha and net area under irrigation is about 150700 Ha. The soil type prevailing in the district are Sandy coastal Alluvium Soil and Red Sandy Soil. While Paddy is the main crop in the district, rice fallow pulses are cultivated in about 1,20,923 ha during the year 2014-15 in the district. Sugarcane, Cotton, Groundnut, Sugarcane and Gingelly are the other crops and are being cultivated in about 5145ha, 1658ha, 486ha and 275 ha respectively during the year 2014-15. The district has good scope for development of wastelands the development of Dairy, Goatery and inland fisheries. The district is having good network of Commercial and Co-operative banks. In order to augment the ground water the district administration had constructed artificial recharge structure in about 1620 village tanks and 1415 in various rivers for about 145 KM at an interval of 100 meters to recharge first aquifer which is available at a depth of 5 meters below the surface. Further to recharge the second aquifer, the district administration has constructed an innovative structure called ‘ Sub Surface Dyke’ to impound the water across the river bed in sub-surface and recharge the second aquifer by way of constructing number of bore wells in the upstream direction through the clay layer and allow the water to reach the second aquifer. As the results are very much encouraging, such low cost sub surface Dykes may be tried in all the rivers flowing across the district to recharge the depleted ground water. I.2 Sectoral trends in GLC The details of achievements under ACP during the last two years upto 2013-14 and target for 2014-15 and target for 2015-16 are given below: (`. lakh) 2013 -14 2014 -15 2015 -16 Sector Target Achievement Target Achievement Target Crop Loan 108840.36 180494.65 122770.00 150354.90 169673.00 Term 71249.90 8210.85 76580.00 39046.90 69547.00 Loan Total Agri. 180090.26 188705.50 199350.00 189401.80 239220.00 Credit SME 7206.01 4577.90 8700.00 7447.60 10390.00 OPS 17320.00 17645.98 19090.00 17325.90 22870.00 Total 204616.27 210929.38 227140.00 214175.30 272480.00 v PLP 2016-17 Tiruvarur district The banks have been achieving the ACP targets during the year 2012-13 and 2013-4. However, during the year 2014-15, they could achieve only 214175.30 lakh i.e 94.29% of the target of 227140 lakh and this is due to mounting NPA in the district. The banks are very selective and mostly only regular and prompt customers are considered for credit facility. It is observed that the achievement under crop loan has been very good comparing to other sectors. This is because of all agri jewel loans are being classified under crop loan. During 2014-15 the banks have achieved 122.47% under crop loan, 50.99% under investment credit, 85.23% under MSE sector and 90.75% under Other Priority Sector. The investment credit, which is most important for capital formation in agriculture to have sustained growth, is not picking up in the district, is a cause of concern. Bankers may take necessary steps to increase the credit flow under investment credit. I.3 NABARD Initiatives in the District Producer Organisation Development Fund NABARD, during the year 2013 has sanctioned `. 1, 12, 39,000/- as financial assistance for purchase of Milch animals and Farm machineries to Pasumpuvi Farmers Club Federation under Producers Organisation Development Fund for creating livelihood opportunities to the members of the Pasumpuvi Farmers Federation in Nannilam block of Tiruvarur district. Under this project around 120 farmers’ club members were issued with 2 milch animas each for income generation which would go a long way to help these farmers to come out of the clutches of money lenders. To encourage Farm mechanization which is the need of the hour to help small and marginal farmers, NABARD has financed the Farmers Club Federation towards purchase of Tractors, Laser Leveler, Rotavator, Cultivators and 25 power tillers. These machineries would help the farmers to conduct their farm activities in the absence of farm labours which is very much prevalent in these days. Rural Innovation Fund NABARD, during the year 2013 has sanctioned financial assistance of `. 4, 19,500/- (Rupees four lakh nineteen thousand and five hundred only), of which `. 3, 69,500/- as loan and `. 50, 000/- as grant assistance to Shri.S. ILANGO, the Innovator of the project for setting up Delta District Milky Mushroom Development Centre at Velukkudi, Tiruvarur. This centre would train Small and Marginal farmers to grow milky mushroom to earn their supplementary income from the activity. During the year 2015 NABARD has sanctioned and commissioned under RIF a common facility centre/ E- Weaving centre with Novel Electronic Cardless Jacquard Loom for Handloom Weavers in Ammayyappan Village, Tiruvarur. I.4 Banking highlights The Lead Bank in the district is Indian Overseas Bank. Banking and financial services are provided by 22 commercial banks( with 136 branches) , Thanjavur DCCB & Kumbakonam DCCB (with 13 branches) & 137 PACS and Pandian Grama Bank (with 4 branches). The CD ratio in the district has always been more than 100% during the previous years. However, the commercial banks could achieve only 95% during the year 2014-15. As credit support from banks plays a pivotal role in integrated rural development, monitoring & improving of ground level credit for priority sectors under the Annual Credit Plan at various fora of bankers, such as, DCC & BLBC meetings, need to be given importance, for which all bankers have to work in tandem with each other under the guidance & support of the District Administration and Lead Bank for strengthening the submission of timely data on GLC, Rupay KCC, Crop Insurance, PMJDY Insurance Schemes and JLGs. vi PLP 2016-17 Tiruvarur district I.5 Potential Linked Credit Plan for 2016-17 The PLP projections for the district for 2016-17 were estimated at `. 2630.68 crore in Base PLP i.e 2012-13 to 2016-17, the revised projections for 2016-17 have been put at `. 3292.28 crore. The changes in terms of increase/decrease is due to changes in cost of various agri inputs, cultivation expenses and labour cost as also the trend in GLC flow. Taking into account the new categories of priority sector introduced recently in the revised Priority Sector guidelines of RBI, the revised PLP projections for 2016-17 have been made at `. 3292.28 crore, comprising of `. 2835.61 crore for Agriculture ( `. 1935.97 crore for Crop Production, `. 574.08 crore for Agri. Term Loans, `. 132.97 crore for Agri. Infrastructure & Rs192.59 crore for Ancillary activities in agri.); `.135.53 crore for MSME Sector; `. 20.00 crore for Export Credit; `. 70.55 crore for Education; `. 60.24 crore for Housing; `. 6.29 crore for Renewable Energy; `. 143.81 crore for Others and `. 20.25 crore for Social Infrastructure. The details of sector/activity-wise and block projections are furnished in Annexure I. I.6. Financial Inclusion As on 31 March 2015, 260 BCs were appointed to serve all the villages in the district. Though there were some issues in connectivity and non-availability of POS, they are being sorted out. The major services through BCs, inter alia, include cash deposit & drawal, RD, loan remittance, deposit canvassing & NPA recovery in a limited way and government payments like MNREGS wages/Old Age Pensions/School Students Scholarships. The Financial Inclusion has now gained a lot of significance recently by the announcement of three insurance products viz., Pradhan Manthri Jeevan Jyothi Bhima Yojana”, “Pradhan Manthri Jeevan Suraksha Bhima Yojana” and “Atal Pension Yojana” under PMJDY by the Hon’ble Prime Minister for the benefit of all SB account holders with the ultimate objective of penetration of micro insurance, especially among rural poor in the country. Banks in coordination with the Life Insurance Corporation and other General Insurance Companies are to take special steps for enhancing the coverage of people, especially in rural areas, under these PMJDY schemes. Further, the satisfactorily operated SB account holders under PMJDY are also to be offered with simple over draft facilities upto `. 5000, which can be categorized as ‘weaker section loans’ under the revised Priority Sector. In order to further strengthen the FI initiatives in the district, all the bank branches may conduct Financial Literacy Awareness Programmes in their villages as per the directions of RBI.