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Map of Longleng District

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Map of Longleng District PLP 2016-17 Longleng District EXECUTIVE SUMMARY “Accelerating the pace of capital formation in agriculture and allied sector” The Potential Linked Credit Plan (PLP) is prepared with a view to serve as a reference document for various policy makers, developmental and promotional agencies for planning at various levels and for creation of requisite infrastructure to meet the need of the district by judicious tapping of the potential. It facilitates banks for extending credit to viable activities in the district and line departments and developmental agencies to provide necessary infrastructure and linkage support. The PLP projections serve as a basis for banks in preparing Annual Credit Plan with special thrust on ‘Areas based Schemes’. Saving and Investment leading to capital formation are the prime movers of economy. Capital formation refers to addition to the capital stock of an economy which enhances the productive capacity of various factors of production viz. land, labour, capital and entrepreneurship in all the sectors i.e. primary (including agriculture), secondary and tertiary. With a large capital stock an economy acquires the capacity to change, innovate and adjust to new ideas and technological advances. Recognizing the importance of capital formation NABARD has chosen the theme “Accelerating the Pace of Capital Formation in Agriculture and Allied Sector” for the PLP for 2016-17. Longleng is the newly formed eleventh district of Nagaland which was carved out of Tuensang District. It is bounded by Mokokchung district on the west, Tuensang and Mon districts on the east, Assam on the north and Tuensang district on the south. It is headquartered at Longleng, which is at an altitude of 1066 m above sea level. Longleng is about 232 km from the capital of Nagaland. Dikhu is the main river draining the district. The main language spoken in the district is Phom and the major towns are Longleng and Tamlu. The district has a pre humid to humid climate with red sandy and lateritesoil conditions. The population of the district is 50484, out of which 16,873 are cultivators and 278 are agricultural labourers (Census 2011). The total households stood at 11,985, of which 10,295 rural and 1690 urban households respectively. The density of the population is 90 persons per sq. km., sex ratio stood at 905 females per 1000 males, average literacy rate is 72.17%, but female literacy rate is 69.63% against male literacy rate of 74.48%. The district is equipped with 3 Primary Health Centres, 8 sub centres, 1 Hospital, 7 Post Offices, 35 villages are electrified and only 1 bank branch ( SBI ) as on 31st March 2015. With the majority of the people living in rural villages, agriculture remains the main occupation of the people of the district. Thus, economy of Longleng District is entirely agriculture based. In spite of favourable climatic condition and fertile soil, primitive method of jhum cultivation is extensively practiced leading to wastage of time, energy and environmental degradation. In spite of the government`s efforts, the agricultural techniques adopted by the farmers are still semi-primitive and pre-industrial. As a result, the output is very low. The main crops of this district are paddy, maize, millet and barley. Cash crops like potato, soya bean and different kinds of local beans are also grown. Poultry and cattle breeding are also practiced, though mostly of the traditional method. The district still lags behind in the application of farm mechanization and farm equipments in its agricultural operations. The average yield of major crops during 2013-14 stood at 2399.39 kg/ha. There is limited infrastructure for development of allied activities as the district has only 1 veterinary hospital, 1 disease diagnostic centre, 2 veterinary health centres and 1 meat inspection centre.The infrastructure and support services for agriculture sectors need to be improved to meet the ever growing demands. 01 PLP 2016-17 Longleng District The overall credit flow to the priority sector in the last three years is as under : (In lakh) Sectors 2012-13 2013-14 2014-15 Target Ach. %age Target Ach. %age Target Ach. %age Agri & allied 499.14 318.61 63.83 553.61 80.70 14.52 553.61 53.00 9.58 MSE 99.75 52.25 52.38 117.75 72.25 61.36 117.75 87.00 73.72 OPS 100.88 93.01 92.19 128.25 99.01 77.20 128.25 142.50 110.93 Grand total 699.77 463.87 66.26 799.61 251.96 31.51 799.61 282.50 35.29 With the overall ACP achievement of 91.31% in the district during 2014-15, there has been an increase in credit flow in the priority sector with 35% achievement as compared to the previous year’s achievement of 32%. The PLP of Longleng district seeks to present a comprehensive assessment of potentials available under various sectors of the economy, the credit requirements for exploiting the potentials, available infrastructure as well as credit absorption capacity of the borrowers. It also show-cases the non- credit inputs required and aspects that require the attention of the Government and other agencies involved in the development process. The overall credit flow in the priority sector in the last three years wasRs.463.87 lakhs in 2012-13 and Rs.251.96 lakhs in 2013-14 and Rs.282.50 lakhs in 2014-15 respectively. Though the overall ACP achievement in the district during 2014-15 was 91.31%, there has beena decrease in credit flow in agriculture sector with only 9.58% achievement. Institutionalcredit flow towards agriculture especially crop loan in the district has been poor and is an area of concern that needs to be addressed. Assessment of Credit Potentials for 2016-17: According to the revised PSL guidelines, Agriculture Sector is broadly divided into three sub sectors viz, (i) Farm credit (ii) Agriculture infrastructure and (iii) Ancillary activities. The basket of activities covered under each of the above three sub sectors under ’Agriculture Sector’ has also undergone revision and the classification of these activities in PLP document is aligned according to the revised classification. Out of Rs.1586.35lakh credit potential projected for 2016-17, the share of crop loan is 14.20% (Rs.225.31lakh), while Term Loan for Agri-Allied Activities constituted 44.52% (Rs.706.30lakh). The Potential Linked Credit Plan prepared for the district highlights the bankable potential of the various sectors of the economy. The Institutional credit potential estimates (Bank Loan) for 2016-17 is Rs.1586.36lakh against Rs.1066.14 lakh projected in the Base PLP for 2016-17. Due to changes in guidelines for priority sector lending, inter sectoral changes were made in the present document. The broad sector wise bankable projections and sectoral share in percentage term for 2016 - 17 is given below: 02 PLP 2016-17 Longleng District Sectors Credit Estimates(Rs in lakh) Sectoral Share % Crop loan- Short Term 225.31 14.20 Term Loan for Agri Allied 706.30 44.52 Agriculture Infrastructure 169.57 10.69 Ancillaries Activities 37.50 2.36 MSME 158.75 10.01 Export Credit 0.00 0.00 Education 72.00 4.54 Housing 134.40 8.47 Renewable Energy 9.72 0.61 Others- SHGs 60.45 3.81 Social Infrastructure 12.36 0.78 Total 1586.36 100.00 Area Based Schemes: The district is basically agrarian with favourable agro climatic conditions for undertaking various agri and allied activities which provides ample scope to promote single purpose small projects / schemes on a cluster basis known as Area Development Projects / Schemes. For example, financing of dairy units, piggery units, dug wells, sericulture, other horticulture crops, farm forestry projects, etc. and sanctioned to a single bank or to a number of banks. Besides the exigency of economic development of the people at large, it facilitates planning and execution of infrastructure facility viz., backward and forward linkages - for full realisation of the benefits of the projects / schemes. Those backward and forward linkages could also be planned and executed with credit support e.g. in the areas identified for development of dairy, there would be scope to promote units related to processing, cold storage and marketing units in the area. If the needs of inter-related activities are addressed in a focussed manner, the overall results will be self-sustaining. Thus, the scheme could focus on existing infrastructure, stage of present development of the activity, scope for increasing the activity, number of units to be set up, Government support available (including subsidy), status of ancillary activities, services required to support the main activity, credit support needed to expand and strengthen the activity, etc. Credit estimates for for 2016-17 The PLP of Longleng district has estimated an Institutional credit potential of Rs.1586.35lakh for the year 2016-17. Credit potential for Agriculture and Allied sector has been estimated at Rs.1138.67 lakh while the potential under MSME (Micro, Small and Medium Enterprises) at Rs.158.75 lakh, Education at Rs.72.00 lakh, Housing at Rs.134.40 lakh, Renewable Energy at Rs.9.72 lakh, Others (SHGs/JLGs/PMJDY) at Rs.60.45 lakh and Social Infrastructure involving bank credit at Rs.12.36 lakh respectively. The above potential estimates indicate an increase of 36.30% over the projections made in the PLP for the year 2015-16. The above estimates have been made in keeping with the Central as well as State Government priorities for agriculture and rural development, generation of rural employment through credit intervention and taking into consideration the various infrastructural / support services available in the district/state.
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