1. District Characteristics Dakshina Kannada District, Known As the “Cradle of Banking”, Is One of the Three Coastal Districts in Karnataka
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Dakshina Kannada PLP 2016-17 EXECUTIVE SUMMARY 1. District characteristics Dakshina Kannada district, known as the “cradle of banking”, is one of the three coastal districts in Karnataka. The total geographical area of the district is 4,861 sq. kms. of which 27% is covered by forests. Soils are mainly lateritic and acidic in nature. The Gross Cropped Area (GCA) is 1.59 lakh ha. The Net sown Area (NCA) is 1.31 lakh ha. and forms 27% of the geographical area of 4.77 lakh ha. Small and marginal land holdings account for more than 90% of total land holdings and 61% of the cultivated land. Paddy is grown nearly in one-thirds of the GCA. The other major crops are Coconut (16,296 ha), Arecanut (28,232 ha), Cashew (31,288 ha), Rubber (10,838 ha),etc. Fisheries is another major activity. Agro processing and fish processing are also taken up on a large scale. There are more than 11,000 enterprises in the district providing employment to nearly 44,000 persons. Certain large industrial units like MRPL, MCF, KIOCL, Ultratech Cement, Hindustan Unilever Ltd., etc. are present and employ nearly 10,000 persons. Large IT companies like Infosys have also set up their offices in the IT park at Deralekatte. Beedi rolling is a dominant household activity among women in rural areas. The district has a sea and airport and is well connected to other parts of the State by road. The district is an education hub and also known for religious tourism. Medical facilities available in the district are state of the art. Mangalore, the district headquarters, has been shortlisted in the first list of Smart Cities by the Government of India, recently. 2. Sectoral trends in credit flow: While the banks were able to achieve the ACP targets during 2012-13, they could not achieve the targets during 2013-14 & 2014-15. The disbursements under Priority Sector during 2012-13, 2013-14 & 2014-15 stood at `4528.18 crore, `3,869.58 crore & `5,233.01 crore respectively. The CD ratio in the district which was 52.40% as on 31.3.2013 has been witnessing an increasing trend during the last two years. It stood at 53.64% & 56.47% as on 31.3.2014 and 31.3.2015 respectively. 3. Sector/sub-sector wise PLP projections for 2016-17: The exploitable potential for 2016-17 was estimated at `6,24,850.88 lakh in the base PLP which has been revised to `9,03,608.95 lakh. The realization of potential would depends on the removal of various constraints and developing critical infrastructure. 4 Major constraints Lack of extension services in both agriculture and horticulture sectors, absence of last mile connectivity for access to market by farmers, absence of assured irrigation, inadequate storage facilities like godowns and cold storages, erratic power supply are some of the major constraints faced in the district. Inability of the farmers to access credit from formal financial institutions for cultivating in leased lands without affecting the rights of the owner of the land is another major hurdle which needs to be addressed. 5 Action points/issues to be addressed State Government a. Implementing the Paschima Vahini project on a mission on a priority basis b. Building last mile road and bridge infrastructure c. Creating model horticulture farm and encouraging innovative/hi-tech/export oriented projects. d. Setting up of a disease diagnostic laboratories and training on dairy/poultry activities. e. Early operationalisation of industrial areas identified in Canara Industrial Area. f. Ensure regular & assured power supply and promote use of solar solar roof-tops. g. Recognition to landless cultivators to access farm credit from banks/cooperative institutions Banks a. Adopt alternative modes of lending, including JLGs mode, to boost economic activity in the district. b. Focus on financing activities like land development, irrigation structures, farm mechanization, artificial water recharge structures, new godowns and renovation of existing old godowns to facilitate accreditation and also provide loans to farmers on the strength of Negotiable Warehouse Receipts. 2 Dakshina Kannada PLP 2016-17 c. Follow appropriate norms for assessing working capital requirements. 6. Thrust areas for 2016-17 6.1 Mainstreaming the financially excluded :The past year has seen a number of steps taken towards promoting financial inclusion in a big way viz., the Pradan Mantri Jan Dhan Yojana (PMJDY), Prime Ministers Social Security Schemes, Mudra Yojana, etc. Mainstreaming these account holders into the banking fold with these new schemes would continue to be the thrust area for 2016-17. 6.2 Accelerating pace of capital formation in agriculture & allied sector: Banks to give thrust for agriculture term loans to farmers which will lead to capital formation in agriculture. 6.3 Promotion of JLGs : Banks need to adopt to JLG mode of lending, at least where lending to individual is not possible due to land title/security related issues and also to finance JLGs of fisherwomen. 6.4 De-risking farm income : Given the uncertainties in yield due to vagaries of nature, there is a need to de-risk the farm incomes. Banks may explore financing mini-dairy units/poultry (broiler) units in a big way. 6.5 Area Development Plan (ADP): Cocoa cultivation in Puttur and Sullia taluks is identified by NABARD for further development during 2016-17. NABARD & Department of Horticulture have promoted a number of FPOs/crop specific clusters in all the taluks. The new organizations are expected to have a demonstrative effect in other parts of the district. Bankers, on their own are encouraged to adopt such models and extend cluster based financing to farmers. 7. The way forward : The projections made in the PLP for 2016-17 call for coordinated approach by all stakeholders viz., Banks, Government departments, extension agencies, etc, which in turn is expected to enhance capital formation in agriculture. Banks are required to ensure timely reporting of credit flow data to the Lead Bank for meaningful review in DCC/DLRC meetings and ensuring timely corrective action. Broad Sector wise PLP projections 2016-17 Sr.No Particulars PLP Projections - 2016-17 (` lakh) A Farm Credit i. Crop Production, Maintenance and Marketing 197268.66 ii. Term Loan for agriculture and allied activities 143910.59 Sub-total 341179.25 B Agriculture Infrastructure 32945.85 C Ancillary activities 43118.50 I Credit Potential for Agriculture (A+B+C) 417243.60 II Micro, Small and Medium Enterprises 84846.88 III Export Credit 34000.00 IV Education 75600.00 V Housing 144000.00 VI Renewable Energy 15175.98 VII Others 129542.50 VIII Social Infrastructure involving bank credit 3200.00 Total Priority Sector (I to VIII) 903608.95 3 Dakshina Kannada PLP 2016-17 Summary of Sector/Sub-sector wise PLP projections - 2016-17 (` lakh) Sr.No. Particulars PLP Projections I Credit Potential for Agriculture A Farm Credit i. Crop Production, Maintenance and Marketing 1,97,268.66 ii. Water Resources 28,074.15 iii Farm Mechanisation 16,502.63 iv Plantation/Horticulture/Sericulture 35,551.58 v Forestry & Wasteland Development 588.38 vi Animal Husbandry - Dairy 26,514.00 vii Animal Husbandry - Poultry 2,486.25 viii Animal Husbandry - Sheep,Goat & Piggery 3,600.90 ix Fisheries 30,556.71 x Others 36.00 Sub-total 3,41,179.25 B Agriculture Infrastructure i Construction of storage facilities (warehouses, market yards, 4,936.50 godowns, silos, cold storage units/ cold storage units) ii Land development, soil conservation, watershed development 21,509.55 iii Others (Tissue culture, agri bio-technology, seed production, bio 6,499.80 pesticides/fertilisers, vermi composting) Sub-total 32,945.85 C Ancillary Activities i Food and Agro Processing 37037.50 ii Others (Loans to Cooperative societies of farmers for disposing of 6,081.00 their produce, agri clinics/agri business centres, loans to PACS/FSS/LAMPS, loans to MFIs for on lending) Sub-total 43,118.50 Total Agriculture 4,17,243.60 II Micro, Small and Medium Enterprises i MSME, Working Capital 64,850.00 4 Dakshina Kannada PLP 2016-17 Sr.No. Particulars PLP Projections ii MSME - Investment Credit 19,996.88 Total MSME 84,846.88 III Export Credit 34,000.00 IV Education 75,600.00 V Housing 1,44,000.00 VI Renewable Energy 15175.98 VII Others (Loans to SHGs/JLGs, Loans to distressed persons to prepay 1,29,542.50 institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST) VIII Social infrastructure involving bank credit 3,200.00 Total Priority Sector 9,03,608.95 5 Dakshina Kannada PLP 2016-17 Dakshina Kannada District Profile 1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 4861 Agro-climatic Zone Western Plains and Ghat- Coastal Midland(Zone-12) No. of Sub Divisions 19 Climate Dry Sub Humid and Per Humid No. of Blocks 5 Soil Type Laterite, red loamy, coastal Alluvium No. of Villages (Inhabited) 354 No. of Panchayats 203 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported 477381 Rainfall [mm] Normal Actual 2012 2013 2014 Forest Land 128476 3934 3238 4218 4224 Area Not Available for Cultivation 126006 Variation from Normal -696 +284 +290 Permanent Pasture and Grazing Land 18823 Avail. Of Net annual Net annual draft Balance Land under Misc. Tree Crops 31446 gr.water31279 -Ham recharge- 20645 10634 Cultivable Wasteland 30146 5. DISTRIBUTION OF LAND HOLDING Current Fallow 6168 Classification Holding Area Other Fallow 5512 Nos. % to Total Ha. % to Total Net Sown Area 130804 <= 1 Ha 153155 73 58357.23 33 Total or Gross Cropped Area 158682 >1 to <=2 Ha 37460 18 50799.96 28 Area Cultivated More than Once 27878 >2 Ha 18482 9 69258.01 39 Cropping Intensity [GCA/NSA] 121.3% Total 209097 100 178415.2 100 6.