PLP 2016-17 SAS NAGAR

Executive Summary Potential Linked Credit Plan is a comprehensive documentation of potentials for rural economic activities, both in physical and financial terms. The PLPs represent an effort at making projections of credit requirements in different sectors in the district taking into account the long term potential, availability of infrastructure, marketing support, credit absorption capacity and other strengths and weaknesses of the credit delivery system at the district level. The theme for the PLP 2016-17 shall be "Accelerating the pace of capital formation in agriculture and allied sector”.

SAS Nagar District was created by carving out 2 blocks (Sialba Majri and Kharar) from Ropar district and one block (Derabassi) from district to function as the 18th district of w.e.f 14 April 2006. The district has been formed to achieve growth and development as this area is emerging as major I.T.hub of Nothern .

It is officially named after the eldest son of , Sahibzada . It, along with and , forms a part of the Chandigarh Tricity. Administratively, the district is divided into 3 tehsil viz.,Derabassi, & Kharar.

The important towns in the district are Kharar, , Mohali, & Bassi. Kharar tehsil is the largest administrative unit of the new district with 192 villages followed by Tehsil with 132 villages. In all, the district has 3 development blocks consisting of 419 villages.

The district is spread over geographical area of 1110 sq. kms. The rural area constitues 1021.77 sq. kms. as compared to urban area of 88.23 sq.kms. Total population of the district was 994,628 as per 2011 census which constitutes 3.60% of the total population of the state. Population density of district is 909 persons per sq. km. against the state average of 551 persons per sq. km. literacy rate of the district is 83.80%.

Net area irrigated in the district is 77,000 hectares and the Gross cropped area in the district is 1,21,000 hectares.

The soil of the district is mainly alluvial type but it also has loam to heavy loam and sandy loam soils in certain parts of the district. The of the district is extreme being very hot in summer and cold in winter. The temperature ranges from 45 degree C (in May/June) to 4 degree C (in December/January). It has a sub-tropical continental monsoon climate. The average rainfall in the district is 397.8 mm and considered to be satisfactory.

NABARD in the year 2012-13 had prepared Base PLP for five years co-terminus with XII Five Year Plan (2012-17). The Base PLP projected a five year credit potential under priority sector covering – Primary, Secondary and Tertiary sectors, with emphasis on the Primary sector. These projections were based on parameters such as technical feasibility, availability of exploitable resources, cropping pattern, agriculture practices and other developmental indices such as access to markets, etc. Some of these parameters may have undergone a change in the district since the finalisation of Base PLP on account of factors such as changes in Government's priorities and policies, strengthening of rural infrastructure, market forces, cost escalation, and revision in Priority Sector Lending (PSL) norms by RBI. Priority Sector has been classified into eight broad sectors viz.(i) Agriculture (ii) Micro, Small and Medium Enterprises (iii) Export Credit (iv) Education (v) Housing (vi) Social Infrastructure (vii) Renewable Energy and, (viii) Others. Lending to Agriculture Sector has been further redefined by dividing it into three sub-sectors viz. (i) Farm credit (ii) Agriculture Infrastructure and (iii) Ancillary Activities. The contents and classification of activities in PLP 2016-17 have been aligned with the revised PSL guidelines.

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PLP 2016-17 SAS NAGAR Projections of the realisable credit potential for 2016-17 in the district are as under - ` in Lakh SECTOR/ SUBSECTOR 2016-17

A. FARM CREDIT 197612.57 B. AGRICULTURE INFRASTRUCTURE 5625.57 C. ANCILLIARY ACTIVITIES 79499.63

TOTAL AGRICULTURE (A+B+C) 282737.77

MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) 139722.00 EXPORT CREDIT 10125.00 EDUCATION 19000.00 HOUSING 73012.50 RENEWABLE ENERGY 1307.21 OTHERS 21086.25 SOCIAL INFRASTRUCTURE 1441.88

TOTAL PRIORITY SECTOR 548432.61

PLP aims to achieve around 10.14% growth in Ground Level Credit during 2016-17. A sum of ``` 5484 Crore has been assessed in different activities under priority sector in 2016-17. Crop Loan has been projected at `1734 crore in 2016-17. Out of total Agriculture loans the percentage of term loans are 38.67%. The objective is to augment the pace of Capital Formation in Agriculture and Allied Sector. Projections of `1397 crore have been made for MSE and `` 1259 crore for other priority sectors viz. Export Credit, Education, Housing, Renewable Energy, others and social infrastructure altogether for the year 2016-17. The potential for Agro and Food Processing has been included under Ancillary Activities in the PLP. Growth of agriculture infrastructure, promotion of Dairy Development Sector and GoI subsidy schemes, formation and linkage of SHGs and JLGs, promotion of Financial Inclusion Initiatives etc. have also been envisaged in PLP.

For RIDF projects, the Normative Allocation for Punjab under Tranche XX is ``685 crore. Good number of rural infrastructure projects has been executed in the district with assistance from the Rural Infrastructure Development Fund (RIDF) set up in NABARD. The completed projects include construction of drainage and water canalisation works, advance bund, flood protection works, construction of roads and bridges and Rural Drinking Water Supply etc. The projects which are under execution include Road Works, Polyclinic and Veterinary Hospital, Establishment of Rural Technical Institutions, Modernization of Veterinary Hospitals, Edusat Programme, Improvement of Laboratory Infrastructure, Provisions of Low Cost Latrines, Micro-irrigation and drainage projects etc. As a result of completed RIDF works, there is likely increase in the on-farm development works in the benefited areas, easier and quicker movement of inputs and produce on account of trouble free transportation and lowering of costs, which would result in better productivity and increased off take of credit from the financing agencies.

One Area Based Schemes on Vegetable Production have been proposed in the district in Chapter 12. The First phase of 100% Financial Inclusion in SAS Nagar has been achieved by providing basic banking services to all rural households. Mapping of Gram Panchayats through Branch/BCA/CSC has been done in the district. Further, stress is laid on opening at least one bank account of each household. FLCC is functioning in the district and FLCs are proposed to be opened at each block. Pradhan Mantri Jan Dhan

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PLP 2016-17 SAS NAGAR Yojana as well as the three social security schemes viz. Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jivan Jyoti Bima Yojana and Atal Pension Yojna have already been implemented in the district.

Micro Units Development and Refinance Agency Ltd. (MUDRA) was launched as a new financial entity for developing and refinancing last mile financial intermediaries like Banks, NBFCs, MFIs etc, who are involved in the business of lending to the micro enterprises in manufacturing trading and services sector. All the loans extended to non- farm enterprises in manufacturing, trading and services upto Rs.10 lakh will classify as MUDRA loans.

The farmers in the district have expectations from the banking system, extension agencies and Government. To meet the expectations of the farmers and non-cultivators, it is imperative and desirable that various development agencies – Banks, Extension Agencies, Line Departments of the State Govt, KVK, and other State Level Agriculture and Research Agencies work in tandem with each other to achieve the developmental objectives of the district of SAS Nagar, Mohali including Employment Generation, Food Security, Sustainable Agriculture with processing and marketing linkages and focus on Non-Farm Sector. The infrastructure requirements of the farmers include assured power supply, roads, markets, and the farmers expect a lower interest rate from the banks. Further, there is a need to transform PACS into Multi-Purpose service Centre and this may result in increase in their profits through diversification of business and upscaling their business operations. Further, concepts of SHG, JLG, Farmers Clubs and Producers' Organisation (PO) need to be promoted bringing in cooperative spirit for furthering the development process.

The credit flow in the district for the last 03 years has been as under – Rs. in lakh Broad Sector 2012-13 2013-14 2014-15 Crop Loan 58977.47 17408.56 30381.79 Term Loan ( Agri) 60326.06 109174.63 26688.39 Total Agri Credit 119323.53 126583.19 57070.18 Non Farm Sector 68311.92 162499.83 33552.88 Other Priority Sector 51955.16 12832.34 19797.35 Total Priority Sector 239590.61 418015.36 110420.41

There is a need to popularise various schemes of the banks, GoI Subsidy Schemes on Rural Godown, Agriculture Marketing Infrastructure, Cold Storage, Organic Farming, DEDS, Other Animal Husbandry based Subsidy Schemes, NHM Subsidy Schemes, etc. In this regard, NABARD's website-www.nabard.org which hosts information relevant to agriculture and rural development, may be accessed. Number of model schemes have been placed for the benefit of farming community and prospective clients of the banking industry. District offices of NABARD guide policy-framing discussions at the district owing to its access to all advisory forums at governmental, financial and those at community levels besides having regular deliberations directly with the target groups.

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PLP 2016-17 SAS NAGAR

SECTOR, SUBSECTOR-WISE PLP PROJECTIONS 2016-17 (Rs. in lakh)

Sr.No. Sectorwise Activity District Total 1 AGRICULTURE A. FARM CREDIT 1 Crop Production, Maintenance, Marketing 173410.18 2 Term Loan i Water Resources 2906.18 i Farm Mechanisation 6641.81 i i Plantation/Horticulture/ Sericulture 1861.70 ii i Forestry and Waste Land Development 824.91 v v Animal Husbandry - Dairy 9157.51 v Animal Husbandry - Poultry 987.08 i v Animal Husbandry-Sheep, Goat, Piggery etc. 878.11 ii v Fisheries 341.91 iii i Others (Work Animal etc.) 603.20 x Total Term Loan 24202.39 TOTAL {FARM CREDIT (i)+(ii)} 197612.57 B. AGRICULTURE INFRASTRUCTURE 1 Storage Facilities 3752.63 2 Land Development, Soil conservation, Watershed 1538.55 Development 3 Others 334.40 TOTAL (AGRICULTURE INFRA.) 5625.57 C. ANCILLIARY ACTIVITIES 1 Agro & Food Processing 5043.38 2 Others (ACABC, Loans to PACS etc.) 74456.25 TOTAL (ANCILLIARY ACTIVITIES) 79499.63 TOTAL AGRICULTURE (A+B+C) 282737.77 2 MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) i) Manufacturing Sector - Term Loan 24253.50 ii) Manufacturing Sector - Working Capital 65909.25 iii) Service Sector - Term Loan 36482.00 iv) Service Sector - Working Capital 13077.25 TOTAL MSME 139722.00 3 EXPORT CREDIT 10125.00 4 EDUCATION 19000.00 5 HOUSING 73012.50 6 RENEWABLE ENERGY 1307.21 7 OTHERS 21086.25 8 SOCIAL INFRASTRUCTURE 1441.88 GRAND TOTAL PRIORITY SECTOR 548432.60

Disclaimer : The GLC reported in PLP projections does not cover Jewel loans.

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PLP 2016-17 SAS NAGAR

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PLP 2016-17 SAS NAGAR

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