2016-17 Potential Linked Credit Plan 2016-17

 .  2016-17 Potential Linked Credit Plan 2016-17

 Anantapur

 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT  ANDHRA PRADESH REGIONAL OFFICE, HYDERABAD

Foreword

The vision of Andhra Pradesh as a Sunrise State requires harnessing every bit of potential at the grassroot level through meticulous planning and putting in place a robust implementation mechanism.

NABARD has been preparing the district level Potential Linked Credit Plans (PLPs) since 1989 to map the credit potential under existing as well as new activities to boost the rural economy. Over a period, and as mandated by RBI, the PLP has become precursor to the District Credit Plan. The PLP reflects availability of credit potential under different sectors of rural economy with disaggregated potential at block level.

This PLP for 2016-17 has a theme of “Accelerating the pace of capital formation in Agriculture and Allied sector”. To achieve this, the share of term loans in agriculture sector needs to be in the range of 25% to 30% for sustaining growth of 4% in agriculture sector.

The assessment of sector-wise potential has been made in tune with the revised Priority Sector guidelines of RBI. An attempt has been made to include exclusive chapters on Export Credit, Education Credit, Housing Sector, Renewable Energy, Social Infrastructure involving bank credit, Agriculture Infrastructure, etc. Further, due focus has been given to Area Based Scheme for the identified activities, Contingency Crop Planning, Farmer Producers’ Organizations (FPOs), etc.

Besides, this document also covers availability of infrastructure and gap to be bridged, linkage support to be provided and other interventions required by the State Government for creating definitive impact to realize the potential available in the respective sector. The banks also need to come forward in harnessing the potential reflected in PLP document under various sectors so as to achieve double digit growth in SGDP.

I hope that the effort will be useful to bankers in preparation of a road map for enhancing the flow of credit in the district and to the Government in identifying investment priorities, especially in the infrastructure sector.

I would like to place on record my sincere thanks to the District Collector, Lead District Manager, Line Departments, RBI, Banks and other agencies for providing valuable inputs to our District Development Manager for bringing out this document.

Harish Java Chief General Manager 15.09.2015 PLP 2016-17 Ananthapuram

EXECUTIVE SUMMARY

The geographical area of the district is 19130 sq. kms and it is divided into 5 revenue divisions viz., Ananthapuram, Dharmavaram, Penukonda, Kadiri and Kalyandurgam. The population of the district is 40.81 lakh, (2011 census). The decadal growth in population at 12.10 % is slightly higher than the State’s decadal growth of 11.10%. All the 63 mandals of the district comes under Southern plateau and hilly region of Rayalaseema and Karnataka (zone 10). The average annual rainfall of the district is 553 mm. The major soil types are Red soils and black soils. 75% of the rainfall is received through South West Monsoon and about 18% through North East Monsoon and the remaining received before and during summer season. Agriculture is the main stay of the economy of Ananthapuram district, with 85% of the farmers being small and marginal farmers. The main crops grown in the district are ground nut, redgram, jowar, rice, maize, castor, cotton and bengalgram. Total Gross Cropped Area and Net Sown Area is 11.06 lakh ha and 10.39 lakh ha respectively. The low cropping intensity at 106% is due to the fact that only 12.56% of the net sown area has irrigation facility and vast tracts of land are cultivated under rainfed conditions. Aberrant weather conditions particularly occurrence of long dry spells during crop growing season and drought like situation is a common phenomenon in the district.

The overall performance of banks under District Credit Plan during 2014-15 was 68% of the target and the credit flow under priority sector was `.3225.41 crore as against the target of `.4811.53 crore. Credit flow under crop loans was `.1966.62 crore as against the target of `.3315.00 crore. The achievement under term loans has exceeded the DCP target but bulk of it constitutes the finance extended to SHGs for various farm sector investment activities. The flow of credit has been in the increasing trend for the last 3 years except for the year 2014- 15. The district has a network of 419 bank branches, 284 of Commercial Banks, 106 branches of Andhra Pragathi Grameena Bank, 28 branches of Ananthapuram District Central Cooperative (ADCC) Bank & one branch of APSFC. There are 98 Primary Agricultural Cooperative Societies. During 2014-15 deposits increased by 12.88% over the previous year where as the loan outstanding as on 31.03.2015 was increased by 8.29% as compared to the previous year and slight dip in the CD ratio from 97% to 93% but it is higher than the RBI stipulation of 60%. The theme for the PLP 2016-17 shall continue to be “Accelerating the pace of capital formation in agriculture and allied sector”. The productivity of farm lands either stagnated or reducing whereas the cost of cultivation has been on the rise, as a result, reduced gross returns and net incomes are realized by the farming community. The aforesaid situation is true across the farming situations including the farms having assured irrigation facilities. The rain fed farmers are more vulnerable to the climate change and weather aberrations. Although Farm research has provided certain solutions in the form of efficient farming systems involving components such as appropriate crops and varieties, dryland horticulture and livestock in suitable combination and proportion, putting them into practice by the farming community require handholding support by the multi-disciplinary teams deployed with Agriculture Technology Management Agency (ATMA) and also prompt financing by Banks for all the components of the integrated farming systems.

Contingency planning especially in an arid rainfed area like Ananthapuram district is very vital in view of low and erratic rainfall, lack of irrigation facility which puts the farmers in distress and uncertainty. Integrated farming with diversified income source by encouraging allied activities, short duration crops like millets and pulses, use of improved farm implements, reducing cost of cultivation have been given due importance while preparing

PLP 2016-17 Ananthapuram the PLP keeping in view the above theme. The strategies and interventions adopted by various departments for achieving double digit growth under Primary sector mission were also taken into account while making potential projections.

PLP Projections 2016-17

The total credit potential for 2016-17, under priority sector for Ananthapuram district is estimated at `.7942.64 crore registering a growth rate of about 12% and 46.8% over the PLP projections of 2015-16 and ACP targets of 2015-16, respectively. About 61% of the credit potential is estimated for agriculture and allied activities followed by MSME sector (16%), housing loans (9.2%) and renewable energy (8.7%). The crop loans have been projected at `.4049.36 crore, term investment for agriculture and allied activities (including agri-infra & ancillary activities) at `.828.93 crore (17% of the total agriculture loans), MSME `.1276.26 crore, housing loans `.729.00 crore and renewable energy `.690.00 crore.

Potential Opportunities and Challenges in the district

 Major constraints are recurrent drought conditions, low crop diversification, increased fallow lands, low farm mechanization, inadequate capital formation, poor recovery under government sponsored programmes, shortage of godown space with estimated storage gap of 2.00 lakh MT, lack of adequate marketing infrastructure, etc..  There is a need for technology innovations in crop production & management – appropriate alternate crops and cropping patterns with/ without groundnut, contingency measures during dry spells, alternate land use systems, etc..  In view of the scanty rainfall, large number of water harvesting structures in the public waste lands and farm ponds in private cultivable lands are required to be executed to recharge the ground water and to improve soil moisture regimes so that drought proofing is possible.  There is dire need for fitting all the irrigation borewells with micro irrigation devices.  Govt. need to encourage organic farming practices so as to reduce the cost of cultivation of groundnut crop.  Considering the land holding pattern and also the problem of fragmented holdings, banks need to promote JLGs and extend credit facility to tenant farmers/sharecroppers and marginal farmers.  Ananthapuram is a potential district for Dry land Horticulture and Sericulture.  Creation of scientific storage, supply chain management & market linkages  Credit to dairy sector to be encouraged on a large scale with tie up arrangements with Milk Cooperative societies.  Sheep rearing has to be promoted by financing the joint liability groups formed of the sheep breeders/ rearers.  Post harvest credit facilitation by way of pledge finance against Negotiable Warehouse Receipts (NWRs) issued by WDRA accredited godowns.  Exploitation of non conventional energy sources particularly solar power & wind energy that warrant pro active financing by banks in the district.  Loans to MSME sector under CGTMSE and grant under technology upgradation scheme  Formation of farmer producers’ organisations

Area based schemes Considering presence of large number of small and marginal farmers and people below the poverty line, there is a need for promoting single purpose small schemes on a cluster basis

PLP 2016-17 Ananthapuram which was aggregated into area development scheme. Area development schemes on sheep rearing & sericulture were prepared in consultation with line departments & banks. These schemes may be encouraged by banks in the identified clusters which would also facilitate planning and execution of infrastructure facilities viz., backward and forward linkages for full realization of the benefits of the scheme.

Highlights of developments / initiatives having bearing on the credit flow

NABARD has taken up many developmental initiatives viz., 28 watershed development programmes under distress district package, & 2 TDF projects in the district. Banks are expected to meet the credit needs in treated watershed projects. Other initiatives include conduct of financial literacy promotion programmes through FLCs, bank branches and voluntary organizations, technology extension through demonstration, promotion of farmer producers’ organisations, formation and nurturing of JLGs, promotion of skill based & non- farm sector micro enterprises, godown accreditation and NWR financing which would have direct bearing on the credit flow. Under PODF scheme NABARD has taken initiative for developing PACS as a one stop shop unit for meeting all the needs of the farmers like providing agriculture implements on hire basis, enabling purchase of inputs, providing good quality storage capacity as per Warehouse Development Regulatory Authority (WDRA) norm, marketing facilities, etc..

Thrust Areas

Thrust areas for 2016-17 are Integrated farming systems approach where all the farmers shall have at least one term investment activity along with crop production. The combinations include Agro-horticulture, Agri-Sericulture, Agriculture with livestock farming viz., dairy and sheep rearing, Agro-forestry, financing post-harvest infrastructure, Agro processing & value addition so that it will step-up investment credit and that in turn would boost capital formation in agriculture. Continuing the thrust on (i) area based schemes, (ii) JLG mode of financing for tenant farmers/share croppers/lease holders, shepherds, fishermen, and various skill based personnel and rural artisans (iii) promotion of Producers’ Organizations and (iv) financing SHGs for creation of Income Generating Assets (IGAs).

Infrastructure - Government & Private investments

Infrastructure development is a necessary pre-condition for integrated rural development in the district. Rural Infrastructure Development Fund (RIDF) supplements the efforts being made by State Governments in this direction. The cumulative sanctions and disbursements under RIDF Tranche I to XX are `.92459.21 crore & `.77201.43 crores respectively covering 1647 projects. The number of projects completed as on date was 1440 and Ananthapuram district has been the major beneficiary under Andhra Pradesh Micro Irrigation Project (APMIP) and a total of 141073 ha was brought under Drip/ Sprinkler irrigation in the district and it has helped judicious use of ground water & irrigation potential created to an extent of 21660 ha through LIS/ Minor Irrigation & Medium Irrigation Projects. Nearly 80% of the RIDF projects were implemented towards development of irrigation, roads; Comprehensive Land Development Programme (CLDP) and Indira Jala Prabha (IJP) has helped in augmenting the arable land. The critical infrastructure required for the district are water harvesting structures, micro irrigation, custom hiring and agro service centers etc.. Private investments are very much required in rural godowns, cold storages & agro & food processing industries and other post harvest infrastructure. These will be capable of creating wide and big impact leading to increased production and productivity, better price realization by farmers there by higher credit off take. 3

PLP 2016-17 Ananthapuram

Conclusion

There is a need for a coordinated approach for enhancing capital formation, strengthening of Service Area Management Information System (SAMIS) or any appropriate MIS reporting system, better monitoring and review at Joint Mandal Level Bankers Committee (JMLBC), District Consultative Committee of Banks (DCC) meetings, effective implementation of financial inclusion plans including coverage of oral lessees, tenant farmers and other unorganized sector personnel into Joint Liability Groups.

At a Glance

Total Geographic Area : 19,130 sq km Gross Cropped Area : 110,637 Ha Rivers : Pennar, Vedavathi % area under agri & allied : 75.87%

Major Crops/ Activities Production (in Million MTs.)

Groundnut G Chillies 0.37 0.87 Banana Watermelon 0.35 0.17 Paddy Papaya 0.18 0.63 Orange 0.73

Agricultural Engineering College –Madakasira Horti. Research Station --Anantapur Agrl. Research Stations Station Kadiri, Reddipalli, Anantapur

PLP 2016-17 Ananthapuram

District Profile Appendix - 1

District - ANANTAPUR State - ANDHRA PRADESH Division - RAYALASEEMA

1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 19130 Southern Plateau & Hills region; Agro-climatic Zone No. of Sub Divisions 5 Central region of Karnataka & Rayalaseema (Zone 10) No. of Blocks/ Mandals 16/ 63 Climate Tropical semi arid zone No. of Revenue Villages 964 Red sandy to Red loamy, Medium Black, Riverine alluvium & Laterite Soil Type No. of Gram Panchayats/ habitations 1003/ 3447 soils 3. LAND UTILISATION [ha] 4. RAINFALL & GROUND WATER Total Area Reported 1913000 Normal 2011-12 2012-13 2013-14 Actual Forest Land 196978 Rainfall [in mm] 553 496 456 539 Area Not Available for Cultivation 150140 Variation from Normal (-)57 (-)97 (-)43 Permanent Pasture and Grazing Land 5848 Availability of Ground Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops 9416 Water [Ham] 144156 114182 29974 Cultivable Wasteland 48533 5. DISTRIBUTION OF LAND HOLDING Current Fallow 209067 Holding Area Classification of Holding Other Fallow 86502 Nos. % to Total ha. % to Total Net Sown Area 1038980 <= 1 ha 226564 35 127147 10 Total or Gross Cropped Area 110637 >1 to <=2 ha 208269 31 305772 24 Area Cultivated More than Once 67391 >2 ha 221705 34 837308 66 Cropping Inensity [GCA/NSA] 106 Total 657622 100 1270228 100 6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE AS PER 2011 CENSUS [in '000] Cultivators 529 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 435 Population 4081 2064 2017 2935 1146 Agricultural Labourers 671 Scheduled Caste 583 292 291 475 108 Workers engaged in Household Industries 102 Scheduled Tribe 154 78 76 126 28 Workers engaged in Allied Agro-activities 46 Literate 2310 1338 972 1546 764 Other workers 356 BPL 707 515 192 8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 968160 Having brick/stone/concrete houses 741 Having electricity supply 779 Rural Households 700000 Having source of drinking water 779 Having independent toilets NA BPL Households 561639 Having access to banking services 779 Having radio/TV sets NA 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 964 Anganwadis 3696 Dispensaries 71 Villages having Agriculture Power Supply 964 Primary Health Centres 80 Hospitals 20 Villages having Post Offices 906 Primary Health Sub-Centres Hospital Beds 1888 Villages having Banking Facilities 418 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools 929 Fertiliser/Seed/Pesticide Outlets [Nos] 512/967/718 Agriculture Pumpsets[Nos] 225000 Villages having Primary Health Centres 68 Total N/P/K Consumption [MT] 57652 Pumpsets Energised [Nos] 159000 Villages having Potable Water Supply 2466 Certified Seeds Supplied [MT] 593 Agro Service Centres [Nos] 40 Villages connected with Paved Approach Roads NA Pesticides Consumed [MT] 79 Soil Testing Centres [Nos] 1 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 28338 Plantation nurseries [Nos] 55 Total Area Available for Irrigation (NIA + Fallow) 262410 Power Tillers [Nos] 561 Farmers' Clubs [Nos] 136 Krishi Vigyan Irrigation Potential Created 218791 Threshers/Cutters [Nos] 3894 1 Kendras[Nos] Net Irrigated Area(Total area irrigated at least once) 130488 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING Area irrigated by Canals / Channels 20701 Rural/Urban Mandi/Haat [Nos] 13 Wholesale Market [Nos] 13 Area irrigated by Wells(Dug wells& Tube wells) 105449 Length of Pucca Road [Km] 10832 Godown [Nos] 77 Area irrigated by Tanks 3476 Length of Railway Line [Km] 349 Godown Capacity[MT] 50600 Area irrigated by Other Sources (incldg LIS) 862 Public Transport Vehicle [Nos] 1170 Cold Storage [Nos] 8 Irrigation Potential Utilized (Gross Irrigated Area) 161675 Goods Transport Vehicle [Nos] 15451 Cold Store Capacity[MT] 3050 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS Type of Processing Activity No of units Cap.[MT] 2012-13 2013-14 Avg. Yield Crop Food (Rice/Flour/Dal/Oil/Tea/Coffee) 3214 NA Area (ha) Prod. (MT) Area (ha) Prod. (MT) [kg/ha] Sugarcane (Gur/Khandsari/Sugar) Nil NA Paddy 57367 172273 59782 184307 3043 Fruit (Pulp/Juice/Fruit drink) Nil NA Jowar 15545 19664 20129 32528 1440 Spices (Masala Powders/Pastes) NA NA Maize 15201 51668 24928 54368 2790 Dry-fruit (Cashew/Almond/Raisins) NA NA Redgram 66013 31026 50910 28917 519 Cotton (Ginnining/Spinning/Weaving) 2146 NA Bengalgram 94240 94523 103885 96198 965 Milk (Chilling/Cooling/Processing) 40 NA Ground Nut 833267 514125 752986 371222 555 Meat (Chicken/Mutton/Pork/Dry fish) 1 NA Sunflower 17355 11419 16945 11052 664 Animal feed (Cattle/Poultry/Fishmeal) 15 NA Production of Cotton(lint), Jute, Mesta & Sanhemp are in Bales(177.8 kg per bale in India) 17. ANIMAL POPULATION AS PER CENSUS 2012 [in '000] 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES Category of animal Total Male Female Veterinary Hospitals/Dispensaries [Nos] 127 Animal Markets [Nos] 9 Milk Collection Centres Cattle - Cross bred 150 16 134 Disease Diagnostic Centres [Nos] 2 959 [Nos] Cattle - Indigenous 467 255 212 Artificial Insemination Centers [Nos] 402 Fishermen Societies [Nos] 83 Buffaloes 371 86 285 Animal Breeding Farms [Nos] 2 Fish seed farms [Nos] 1 Sheep - Cross bred ------Animal Husbandry Tng Centres [Nos] 2 Fish Markets [Nos] 1 Sheep - Indigenous 3879 838 3041 Dairy Cooperative Societies [Nos] 50 Poultry hatcheries [Nos] Nil Goat 785 184 601 Improved Fodder Farms [Nos] 3 Slaughter houses [Nos] 1 Pig - Cross bred 3 NA NA 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Pig - Indigenous 19 7 12 Fish Production [MT] 3763 Per cap avail. [gm/day] 3 Horse/Donkey/Camel 14 6 8 Egg Production [Lakh Nos] 2188 Per cap avail. [nos/p.a.] 54 Poultry - Cross bred 1589 NA NA Milk Production ['000 MT] 482 Per cap avail. [gm/day] 323 Poultry - Indigenous 953 483 470 Meat Production [MT] 34130 Per cap avail. [gm/day] 23

Item Nos. 1, 6, 7, 9 & 10 - Census 2011; Item Nos. 2, 3, 5, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of Agr./Water Resources; Item No. 8 - BPL Sources (if not mentioned against the Survey 2012; Item No. 15 - District Ind Centre/Dir. of Eco. & Stat.; Item No. 16 - DACNET; Item No. 17 - AH Census 2012; Item Nos. 18 & 19 - Dir. of Animal Hus./Dir. respective item): of Eco. & Stat.

PLP 2016-17 Ananthapuram

DISTRICT PROFILE

1. Major economic activities and livelihood options in the district:

Agriculture (91%) is the predominant economic activity in the district followed by Forest produce (5%), Mining (3%) and Fishing (1%) has recorded a growth rate of 7.85% during 2013-14. According to the Rolling Plan 2015-16 which aimed at double digit inclusive growth, the Primary Sector is set to grow at 17.49%. The geographical area of the district is 19.130 lakh ha. The district comes under Southern plateau and Hill region of Andhra Pradesh (Zone 10) with 63 mandals covering 964 revenue villages. The district is divided into 5 revenue divisions viz., Ananthapuram, Dharmavaram, Penukonda, Kadiri and Kalyandurgam. The population of the district as per 2011 census was 40.81 lakh, of which the share of rural and urban population was at 75.41% and 24.59% respectively.

Agriculture is the mainstay of the economy of Ananthapuram district, with Gross Cropped and Net Cropped area of 11.06 lakh ha and 10.39 lakh ha respectively. The district is the second most drought affected in the country with an average rainfall of 553 mm and classified by Govt. of India as semi-arid and desert-prone. It has also the lowest net irrigated area accounting for 12.56% of total cultivated area, bulk of which (around 80%) is under wells and tube wells, which is not an assured source of irrigation.

66% of the total holdings are small and marginal together possessing only 34% of the total area. While the average size of the holding in the district is 1.91 ha., the average size of the holdings amongst small and marginal farmers is only 0.98 ha. Total numbers of farmers in the district are 6.576 lakh and the area held by them is 12.70 lakh ha. Of which the SC and ST farmers are 66824 and 27704 with an average land holding of 0.83 ha. and 0.42 ha. respectively.

The main crops grown in the district are groundnut, redgram, jowar, rice, maize, castor cotton and bengalgram. Sweet orange and mango are the two major fruit crops. Allied activities like dairy, sheep and goat rearing significantly contribute to district's economy, while silk rearing, weaving and twisting has been practised traditionally. Cuddapah stone mining, cutting & polishing, granite cutting & polishing, stone crushing, readymade garments manufacturing are the other predominant economic activities in the district.

The issues critical to the district are crop diversification, soil health improvement, micro irrigation, life saving irrigation during dry spells, promotion of dryland horticulture and sericulture, farm mechanization, extension, reliable electric power supply etc.. The major factors which would have impact on credit flow are use of appropriate technologies, finance to tenant farmers through JLG mode, financing to MSME, creation of scientific storage facilities, post harvest management, financing against Negotiable Warehouse Receipts(NWRs), expansion and increased coverage of banking facilities and financial inclusion etc.. The banks should provide adequate finance as per the revised KCC norms and special emphasis is to be given on conversion of existing KCCs into ATM-cum-Debit / RuPay Cards in a time bound manner. The Gross District Domestic product of Ananthapuram district at current prices & constant prices is estimated at `.32106 crore & `.30081 crore respectively during the year 2013-14, with a share of around 6.92% of GSDP at current prices. The district per capita income at current and constant prices is estimated at `.78672 and `.73709 /- respectively for the year 2013-14. The per capita income is less than State average (`.93989/-) at current prices.

PLP 2016-17 Ananthapuram

Banking Profile

District - ANANTAPUR State - ANDHRA PRADESH Lead Bank - SYNDICATE BANK

1. NETWORK & OUTREACH (As on 31/03/2015) No. of No. of Branches No. of non-formal agencies assoiated Per Branch Outreach Agency Banks/Soc. Total Rural Semi-urban Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Households Commercial Banks 31 284 88 93 103 Nil 32375 434 Regional Rural Bank 1 106 83 13 10 Nil 19107 280 District Central Coop. Bank 1 28 7 8 13 Nil 1592 Coop. Agr. & Rural Dev. Bank NA NA NA NA NA Nil Nil Primary Agr. Coop. Society 98 98 98 NA NA Nil Nil Others 1 1 1 Nil Nil All Agencies 517 276 114 127 Nil 53074 714 1.94 1507 2. DEPOSITS No. of accounts Amount of Deposit [Rs. '000] Agency 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) Commercial Banks 2617729 3036565 3379709 113 64 75440900 92940600 103041043 111 81 Regional Rural Bank 1244062 1480433 1702497 115 32 13315900 17129000 21294200 124 17 Cooperative Banks 85641 95061 224378 131 4 1786700 2117800 2305200 109 2 Others NA NA NA NA NA 4200 5100 4857 (-)4.76 Neg. All Agencies 3947432 4612059 5306584 115 100 90547700 112192500 126645300 112 100 3. LOANS & ADVANCES OUTSTANDING No. of accounts Amount of Loan [Rs.`000] Agency 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) Commercial Banks 883462 1077823 916305 (-)15 65 57585600 81695100 89793200 110 76 Regional Rural Bank 384819 492568 324900 (-)34 23 15173700 20043500 20892300 104 18 Cooperative Banks 151753 157823 139765 (-)11 10 4993900 5071300 5260100 104 5 Others 547 754 375 (-)50 2 1203600 1539800 1393400 (-)10 1 All Agencies 1420581 1728968 1399403 100 78852500 108349700 117339000 108 100 4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs) CD Ratio During 2014-15 Cumulative Agency Agency 31-Mar-13 31-Mar-14 31-Mar-15 Deposit Credit Deposit Credit Commercial Banks 76 88 87 Commercial Banks 209290 NA 813777 NA Regional Rural Bank 113 117 98 Regional Rural Bank 80557 NA 373644 NA Cooperative Banks 279 239 228 Cooperative Banks 6115 NA 24431 NA Others NA NA NA Others NA NA NA NA All Agencies 87 97 93 All Agencies 295962 NA 1211852 NA 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Priority Sector Loans Loans to Agr. Sector Loans to Weaker Sections Loans under DRI Scheme Loans to Women Agency Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total [Rs.'000] Loans [Rs.'000] Loans [Rs.'000] Loans [Rs.'000] Loans [Rs.'000] Loans Commercial Banks 72443700 79 49845100 55 17334600 19 46200 0.05 11458200 13 Regional Rural Bank 18861400 90 15689800 75 3537600 17 NA -- 3034000 15 Cooperative Banks 5260100 100 5260100 100 3347300 63 NA -- 431500 8 Others 1393400 100 NA -- NA -- NA -- NA -- All Agencies 97958600 83 70795000 60 24219500 20 46200 0.039 14923700 13 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2012-13 2013-14 2014-15 Average Agency Target Ach'ment Ach'ment Target Ach'ment [Rs. Ach'ment Target Ach'ment Ach'ment Ach[%] in [Rs.'000] [Rs. '000] [%] [Rs.'000] '000] [%] [Rs.'000] [Rs. '000] [%] last 3 years Commercial Banks 23772100 24466600 103 28476100 32226700 113 30242333 21836400 72 96 Regional Rural Bank 9308700 12330700 132 13203500 15000800 113 13647948 7721300 57 100 Cooperative Banks 4382200 3561700 81 3661100 3587000 98 4225107 2834600 67 82 Others 5001 5001 100 403800 -- -- 294100 161800 55 78 All Agencies 37468001 40859100 109 45744500 50814500 111 48115288 32554100 68 96 8. SECTOR WISE PERFORMANCE UNDER ANNUAL CREDIT PLAN 2012-13 2013-14 2014-15 Average Broad Sector Target Ach'ment Ach'ment Target Ach'ment [Rs. Ach'ment Target Ach'ment Ach'ment Ach[%] in [Rs.'000] [Rs. '000] [%] [Rs.'000] '000] [%] [Rs.'000] [Rs. '000] [%] last 3 years Crop Loan 24760500 24920300 101 31273000 34405700 110 33150034 19666267 59 90 Term Loan (Agr) 3404700 2966100 87 4138700 8131000 196 5399019 6090701 113 132 Total Agri. Credit 28165200 27886400 99 35411700 42536700 120 38549053 25756968 67 95 Non-Farm Sector 2739000 3165900 115 3114000 3182800 102 3770137 2800243 74 97 Other Priority Sector 6558800 9806800 149 7218800 5095000 71 5796098 3997041 69 96 Total Priority Sector 37463000 40859100 109 45744500 50814500 111 48115288 32554116 68 96 9. RECOVERY POSITION 2012-13 2013-14 2014-15 Average Agency Demand Recovery Recovery Demand Recovery [Rs. Recovery Demand Recovery Recovery Rec. [%] in [Rs. '000] [Rs. '000] [%] [Rs. '000] '000] [%] [Rs. '000] [Rs. '000] [%] last 3 years Commercial Banks NA NA NA NA NA NA NA NA NA NA Regional Rural Bank NA NA NA NA NA NA NA NA NA NA Cooperative Banks NA NA NA NA NA NA NA NA NA NA Others NA NA NA NA NA NA NA NA NA NA All Agencies NA NA NA NA NA NA NA NA NA NA

Sources : Lead Bank & SLBC

PLP 2016-17 Ananthapuram

BANKING PROFILE Banking network

The district has a network of 284 branches of Commercial Banks, 106 branches of Andhra Pragathi Grameena Bank, 28 branches of Ananthapuram District Central Cooperative Bank, one branch of APSFC and 98 Primary Agricultural Cooperative Societies.

Population Though the population per branch in the district, as on 31.03.2015 is 7894 still there are few under banked areas in all the 16 blocks of the district, particularly Brahmasamudram, Settur, Kambadur, D. Hirehal, Kundurpi, NP Kunta, Vidapanakal & Vajrakarur Mandals offer good scope for opening branches. Performance Parameters (as on 31 March 2015) a) Deposits: During 2014-15, deposits increased by 12.88% over the previous year. During 2014-15, while the share of Commercial banks in the total deposits was highest at 81%, that of APGB (RRB) & Cooperative Banks was 17% & 2% respectively. b) Loans outstanding: The loans outstanding as on 31 March 2015 increased by 8.29% only compared to the previous year. The Commercial banks’ share in the total loans outstanding, as on 31March 2015, was highest at 76%, followed by RRB at 18%. c) C.D. Ratio: The overall CD ratio is 93% against the RBI stipulation of 60%. d) Performance as on 31 March 2015 to fulfill the national goals: The Priority sector advances constituted 83% of the total loans and advances outstanding. Advances to Agriculture sector, weaker sections, and women were 60%, 20% and 13% to the total loans outstanding, respectively. e) Annual Action Plans- Performance during last three years: The overall achievement under ACP during 2012-13, 2013-14 and 2014-15 was 109%, 111% and 68% respectively. f) Recovery position and NPA: On account of recurrent drought conditions in the last three years and also due to loan waiver programme of the state government, recovery of loans was badly affected. However, implementation of interest subvention scheme of GoI, weather based crop insurance scheme by AIC and input subsidy by the state government has helped the banks to certain extent in improving the loan recovery. Financial Inclusion plan and performance there against up to 31 March 2015 A Banking network of 419 branches caters to the financial services and needs of the people of the district. The insurance services are provided by 15 public sector and private insurance companies through their network of 23 branches in the district.

Banks are required to appoint BCs in villages having >2000 population as well as <2000 population and to open Brick & Mortar branches/Ultra Small branches in <5000 population villages. The number of villages under various population categories is given in the table below. No of No. of No. of villages No. of villages villages villages Name of the with with Total No. Of with with District population population villages 2000+ population 1000-2000 500-1000 population up to 500

Ananthapuram 394 412 109 49 964 The details of the Bank wise unbanked villages having population up to 2000, and above allocated to various participating banks in the district are furnished below.

PLP 2016-17 Ananthapuram

No. of villages allotted No. of Name of the <2000 Total >2000 villages Remarks Bank Popln villages Popln covered alloted 57 91 Six new Andhra Bank 34 75 branches & BCs 154 336 Ten new Andhra Pragathi 182 336 branches and Grameena Bank BCs appointed 21 36 USBs created Canara Bank 15 24 and BCs appointed 5 12 USBs created Corporation Bank 7 19 and BCs appointed ING Vysya Bank 11 11 22 23 BCs appointed 6 11 USBs created Karnataka Bank 5 5 and BCs appointed 0 1 Covered Karur Vysya Bank 1 1 through BC State Bank of India 72 87 159 142 BCs appointed State Bank of 0 1 1 1 BC appointed Mysore 68 130 Five new branches Syndicate Bank 62 104 opened and BCs appointed. Union Bank of 3 6 3 5 BC appointed India Vijaya Bank 1 0 1 1 BC appointed Total 394 412 806 736

As per the Department of Financial Services (DFS) directions, the concept of Sub Service Area (SSA) of size 1000 to 1500 households has been introduced. Each SSA has to be serviced either with brick and mortar branch or business correspondent for extending banking services. As per the SSA mapping of villages in the district, 964 villages were segregated into 858 SSAs which are provided with banking services by 714 BCs and the 195 rural and semi urban branches.

Total no of KCCs issued are 636255. Banks have started issuing Rupay KCCs & APGB too had issued Rupaya KCCs in the district in the recent past.

At present there are three Financial Literacy Centers (FLCs) functioning in the district. The first FLC was opened by Syndicate Bank/ Lead bank in September 2012. APGB has opened an FLC on 26 June 2014 at Kalyandurg. ADCC Bank has opened an FLC at Puttaparthy of Dharmavaram revenue division. The SBI and Andhra Bank shall open one FLC each at the other two revenue divisions namely Kadiri & Penukonda respectively. NABARD provided grant assistance for the purpose of capital investment expenses as well as operational

PLP 2016-17 Ananthapuram expenses from FIF as one time measure. The Banks have also appointed necessary staff for undertaking various activities of the FLCs.

Syndicate Bank & Canara Bank together with Sri Dharmasthala Manjunatha Trust have set up the RUDSETI in the district. During 2014-15, 30 training programmes were conducted through which 878 persons were trained. The cumulative number of trainings conducted were 371 and 11476 candidates were trained since inception of RUDSETI at Ananthapuram. About 45% of the total trainees were women. The settlement rate i.e., self employed persons to the total trained is about 61%.

Pradhan Mantri Jan Dhan Yojana (PMJDY):Since launching of the programme on 28 August 2014, the banks in the district have opened 295962 basic savings bank deposit (BSBD) accounts up to 05th Jan 2015 and the district was declared as 100% covered on 10th Jan 2015. Banks are requested to operationalise the accounts by motivating the customers through bank mitras and also provide over draft (OD) facility for eligible accounts as provided in the scheme.

Social Security Schemes : Government of India has also launched three schemes namely Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevana Jyothi Bima Yojana (PMJJBY) and Atal Pension Yojana (APY) on 09 May 2015. It was launched simultaneously in 55 cities/ towns across the country including Ananthapuram. Banks are requested to attempt enrollment of all the eligible customers under these schemes.

Progress under CBS in Cooperative Banks

The APCOB brought all the 22 District Co-operative Central Banks and their 569 Branches in the undivided Andhra Pradesh on Core Banking Solutions (CBS) platform. It has created a common data center at Hyderabad and Disaster Recovery Site (DRS) with connectivity to the DCCB Head Offices and their branches. Accordingly all the 28 branches of DCCB, Ananthapuram were computerized on 02 January 2013 and enabled with Core Banking Solution, virtually transformed the Cooperative Credit Structure (CCS) into a single entity releasing a vast potential of doing online transactions, and improved the efficiency in customer service to the target clientele of the structure. The network would also afford the opportunity of opening up sizeable extent of hitherto unexplored businesses by enabling ATMs, online fund remittances, Anywhere banking, loan monitoring, MIS, etc..

The Co-option technologies have undertaken the project of providing hardware and software solutions to the Primary Agricultural Cooperative Societies in the State. Under this project the said firm has provided infrastructure to 42 PACS affiliated to DCC Bank in the District.

PLP 2016-17 Ananthapuram

CHAPTER 1

POLICY INITIATIVES A. The Government of India, Reserve Bank of India, State Governments and NABARD have been taking a number of policy measures for the development of agriculture and rural sectors and accelerating credit flow. The important measures/initiatives/ innovations are given below. Policy Initiatives –Govt. of India • Ministry of Agriculture renamed as Ministry of Agriculture and Farmers Welfare. • Digitization of land resource inventorization for micro-level agricultural land use planning. • Project for hill agriculture under National Mission on Sustaining Himalayan Ecosystem (to applicable states). • Countrywide digital agricultural research database - Knowledge based Resource Information Systems Hub for Innovations (KRISHI) in agriculture. • Soil Health Cards (SHCs) to all 14 crore holdings in the country. • Groups of farmers to be motivated to take up organic farming under Paramparagat Krishi Vikas Yojna (PKVY). In three years 10,000 clusters to be formed covering 5.0 lakh acre area under organic farming. • Launching of Swatch Bharat Mission. • Ganga Action Plan (to applicable states). • National Rural Drinking Water Programme (NRDWP) for the benefit of all segments of rural population. • Attracting and Retaining Youth in Agriculture (ARYA) towards agriculture and agriculture related income generating enterprises to check rural migration. • Student READY (Rural Entrepreneurship and Awareness Development Yojana) to promote professional skills, entrepreneurship, knowledge and marketing through hands-on experience. • Special scheme in North-Eastern Region for promotion of organic farming and export of organic produce. (To applicable states) • Pradhan Mantri Krishi Sinchai Yojana (PMKSY): To ensure access to some means of protective Irrigation to all agricultural farms to increase production and productivity and enhance farm Income (more crop per drop). • Promotion of National Market through Agri Tech Infrastructure Fund (ATIF) to provide e-marketing platform at the national level in 642 regulated markets across the country. • Price Stabilisation Fund to support market interventions for price control of perishable agri-horticultural commodities. • Make in India: Facilitate investment, foster innovation, protect intellectual property, and build best-in-class manufacturing infrastructure. • Announced an increase of 50% in the relief on input subsidy given to farmers and the threshold for eligibility has been reduced to 33% for farmers affected by hailstorms and unseasonal rains and other natural calamities. • Micro Units Development and Refinance Agency Ltd (MUDRA) launched to extend finance and credit support to Microfinance Institutions (MFI) and agencies that lend money to small businesses, retailers, self-help groups and individuals. • The schemes of Mega Food Parks, Cold Chain and Modernization of Abattoirs further up- scaled during the 12th Plan. 12 new Mega Food Park projects, 75 Cold Chain projects and 50 Abattoir projects have been approved for implementation during the 12th Plan. • Parity in Development to Eastern and North Eastern regions was also advocated. • Improve employability of rural youth under the Deen Dayal Upadhyay Gramin Kaushal Yojana. • Promotion of Solar Energy. • Pradhan Mantri Suraksha Bima Yojna, Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana launched.

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• Pradhan Mantri Jan Dhan Yojana (PMJDY). NABARD’s efforts in this field include facilitation of financial literacy and supporting technological upgradation of cooperative banks and RRBs.

Policy Initiatives --Reserve Bank of India In terms of the Revised Priority Sector Guidelines: • Categories of the priority sector: Medium Enterprises, Social Infrastructure and Renewable Energy will form part of priority sector, in addition to the existing categories. • Small and Marginal Farmers: A target of 8 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Small and Marginal Farmers within agriculture, to be achieved in a phased manner ie., 7 percent by March 2016 and 8 percent by March 2017. • Micro Enterprises: A target of 7.5% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Micro Enterprises, to be achieved in a phased manner ie., 7% by March 2016 and 7.5 % by March 2017. • Bank loans to food and agro processing units will form part of Agriculture. • The loan limits for housing and MFI loans qualifying under priority sector revised. • Banks to ensure that their overall agriculture direct lending to non-corporate farmers does not fall below the system-wide average of the last three years achievements. • Banks to continue to maintain all efforts to reach the level of 13.5% direct agriculture lending to the beneficiaries who earlier constituted the direct agriculture sector. • Guidelines for relief measures by banks in areas affected by Natural Calamities have been revised.

Policy Initiatives --NABARD

 Medium Term Refinance Product- The medium term refinance product will include all the investment credit activities eligible for getting long term refinance from NABARD.  Long Term Rural Credit Fund: An amount of `15000 crore has been allocated under LTRCF  NBFC-Relaxation: Refinance to NBFCs and NBFC-MFIs registered and operating in the states in the Eastern region, North-Eastern region including Hilly states, Lakshadweep and Chhattisgarh with rating norms relaxed.  Under RIDF, `25,000 crore for 2015-16.

Following new activities have been included for financing under RIDF:- a) Solid Waste Management and Infra works related with sanitation in Rural areas b) Infrastructure works related with alternate sources of energy viz. Solar, wind, etc., Energy conservation c) Hydel projects upto 25MW ( from existing 10 mw) d) 5/10 mw Solar Photovoltaic Power Plant

• Assistance to RRBs and Cooperative Banks for training the BCs/CSPs/BCAs/BFs engaged by them is available for capacity building in the areas of banking/financial products and services. • A Special Fund with a corpus of `2000 crore was created in NABARD 2014-15 for making available affordable credit to agro-processing units in the Designated Food Parks (DFPs) and individual processing units set up in the DFPs. • Funding under NIDA to State Government and State owned institutions for development of infrastructure in rural areas. • NABARD has been accredited as National Implementing Entity of Green Climate Fund. • The Green Climate Fund has been designated as an operating entity of the financial mechanism of the UNFCCC to promote a paradigm shift towards low emission and climate resilient development pathways. • Constituted National Advisory Committee on Produce Fund along with other officials from MoF, MoA, GoI, NDDB, SFAC etc., to review the critical issues relating to FPO sector. 13

PLP 2016-17 Ananthapuram

• NABKISAN Finance Ltd., a subsidiary of NABARD to provide financial support to eligible FPOs with refinance assistance and other support facilities from NABARD. • A scheme has been introduced for promotion of Farmer Producer Organisations (FPOs) for implementation by partnering with technically competent agencies. • NABARD has started a Pilot programme for Digitization of SHGs.

B. Policy initiatives of Government of Andhra Pradesh: Pursuant to the enactment of the AP State Re-organization Act, 2014 on 2 June 2014, the residuary Andhra Pradesh became the eighth largest state in India covering an area of 1.60 lakh square kilometers and with a population of 4.93 crore. The state has the second longest coastline of 972 km among all the states of India. There are 13 districts in two regions viz., Coastal Andhra (9 districts) and Rayalaseema (4 districts). The Government of Andhra Pradesh has taken various policy initiatives for development of agriculture and rural development, some of which are given below:

(i) Agriculture budget highlights Andhra Pradesh – 2015-16: A special budget of `4,814 crore for Agriculture was presented for 2015-16 with planned agriculture expenditure at `4,513 crore and unplanned expenditure at `9,670 crore. The major highlights of the agriculture budget were allocation of `100 crore for Interest free crop loans below `1 lakh, reduced rates of crop loan interest for loan amounting 1 lakh to 3 lakh @0.25paise, allocation of `5,000 crore for crop loan waiver, `3,000 crore for free power supply, `2717.61 crore for allied industries, `17.83 crore for Agricultural Marketing, `36.50 crore for Fisheries Sector, `672.73 crore for Animal Husbandry, `144.07 crore for Horticulture Sector, `141.63 crore for Farm Mechanization, `90.95 crore for Soil Testing, `172 crore for Crop Insurance, etc.

(ii) The State Government aims to develop Andhra Pradesh as  One of the three high-performing states in India by 2022-23  Best state in the country by 2029-30  A leading investment destination in the world by 2050-51

To achieve the above goals, GoAP has launched 7 Missions viz., (i) Primary, (ii) Social empowerment, (iii) Infrastructure, (iv) Knowledge & Skill Development, (v) Urban Development, (vi) Industry Sector and (vii) Service Sector; 5 Grids viz,. (i) Road, (ii) Water, (iii) Gas, (iv) Power, (v) Fiber optic; 5 Campaigns viz., (i) Sanitation, (ii) Health, (iii) Education, (iv) Financial Inclusion and (v) Gender Empowerment. With a view to achieve the target of Double Digit Growth in Primary Mission, Paddy, Maize, Groundnut in Agriculture; Chilies, Banana, Mango in Horticulture; Milk, Meat and Egg in Livestock; Marine and Inland Fish under Fisheries Sectors have been identified as growth engines.

(iii) Constitution of Krishi Cabinet: To make agriculture remunerative, sustainable and to achieve the target of growth rate of 18.2% during 2015-16, the State Government will be constituting a "Krishi Cabinet" which will look into the challenges of Primary Sector. The cabinet will meet every month to discuss and solve the problems of farmers in the State.

(iv) New MSME Policy: AP Cabinet approved Micro Small and Medium Enterprises (MSME) Policy 2015-20. The major highlights of the Policy include:

 100% VAT/CST/SGST reimbursement for Micro and Small enterprises for five years from commencement of commercial production and 75% for Medium enterprises for 07 years or upto realization of 100% fixed capital investment.  50% investment subsidy on fixed capital investment upto `20 Lakh for Micro and Small enterprises  100% stamp duty and transfer duty reimbursement on purchase of land, mortgages and hypothecations and reimbursements to be done within 06 months.  4.50% cost reimbursement for skill upgradation and training up to `5,000 per person for 10 persons in Micro enterprises and 20 persons in Small and Medium enterprises.

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 15% land reserved (at least 40 acres for MSME industries in 2 of APIIC’s developed Industrial Parks in each district).  25% rebate in land cost (in Industrial Estates/Parks) upto `10 Lakh for MSMEs.

(v) State Govt’s Initiative to strengthen SHGs

 SHG Capital Infusion Scheme: The State Government has decided to reinforce the women empowerment efforts and strengthen the economic development of rural as well as urban poor households by way of infusion of capital to SHG/DWCRA groups @ `10,000 for every member of Group. An initial amount of `3000 per SHG /DWACRA Group has been transferred by the GoAP to the Group Account.  Interest redemption: The Interest charged by the banks on loans to SHGs for the period from 01 February 2014 and 31 March 2015, as arrived at by the Mahila Sadhikara Samstha in close coordination with the SERP and MEPMA based on the transaction data provided by the banks will be transferred to Mahila Sadhikara Samstha in two instalments. The group loan accounts declared as non-performing assets as of March 31 2014 as per the database maintained by SERP and MEPMA will not be eligible for interest redemption.

(vi) The Andhra Pradesh Single Desk Policy 2015: GoAP is committed to improve ease of doing business in the State. Single Desk forms, a key constituent of ease of doing business aims to create a one stop shop to provide all necessary clearances for starting and operating an industry, within 21 working days. The policy aims to eliminate the need to physically interact with regulatory authorities by providing for online filing and tracking of applications. It also allows payments to be made electronically to obtain timely approvals online.

(vii) Vaddi Leni Runalu/Pavala Vaddi Scheme: The GoAP is implementing Vaddi Leni Runalu (VLR) / Pavala Vaddi Scheme on Crop Loans in respect of farmers who have availed crop loans up to `1.00 lakh and from `1.00 to 3.00 Lakh, respectively and timely repaid the crop loan.

(viii) Subsidy Administration Scheme for Govt. Sponsored Scheme: In view of the problems faced over years in prompt release of subsidy and timely grounding of Govt. Sponsored Schemes, the Govt. of Andhra Pradesh has decided to streamline the process of release of subsidy through e-payment to the beneficiaries.

(ix) Integration of Land records: Government of AP in coordination with NIC have made available to banks the facility of online viewing the digitalized land records from their branches. NIC has provided user IDs and passwords to banks for the purpose. More importantly, Loan charge creation module has also been made operational to enable the banks to create the charge on the land against which financing has been made. A technical help desk has been created by NIC to enable the banks to send the feedback and raise technical doubts in operation of the module.

(x) Andhra Pradesh Solar Policy 2015: With the increasing consumption of solar energy in India, the state government of Andhra Pradesh has also decided to avoid the power crisis by utilizing solar power in the state. To boost the solar energy sector, the government plans to facilitate installation of about 5,000 MW of solar power generation by 2019. The Government intends to develop solar parks with the necessary utility infrastructure facilities to encourage developers to set up solar power projects in the State, to promote local manufacturing facilities which will generate employment in the State.

PLP 2016-17 Ananthapuram

CHAPTER 2

GOVERNMENT SPONSORED PROGRAMMES WITH BANK CREDIT

1. National Project on Organic Farming* Objective  To promote organic farming in the country by making available the organic inputs such as bio fertilizers, bio pesticides and fruit and vegetable market waste compost.  Increase agricultural productivity while maintaining soil health and environmental safety.  Reduce dependence on chemical fertilizers and pesticides.  Convert organic waste to plant nutrient resources.  Prevent pollution and environment degradation by proper conversion and utilization of organic waste.

Implementing agency Department of Agriculture and Co-operation through National Centre of Organic Farming (NCOF). Eligibility / norms / coverage 1. Bio fertilizers and Bio pesticides Individuals, Group of farmers/ Growers, Proprietary, and production units Partnership firms, Co-operative, Fertilizer industry, companies, corporations, NGOs 2. Fruit & Vegetable waste compost Unit APMCs, Municipalities, NGOs and Private entrepreneurs. 2. Nature of support / assistance 1. Bio fertilizers and Bio pesticides 25% of TFO subject to maximum of `40 lakh per unit, whichever is production units less.

2. Fruit & Vegetable waste compost Unit 33% of TFO subject to maximum of `63 lakh per unit, whichever is less. The original TFO sanctioned by the bank or the actual expenditure incurred by the promoter, whichever is less will be reckoned for subsidy.

2. Integrated Scheme for Agricultural Marketing (ISAM)

Objective  To promote creation of agri marketing infrastructure for effectively managing marketable surplus of agriculture including horticulture and allied sectors.  To promote innovative and latest technologies in agriculture marketing infrastructure.  For creation of scientific storage capacity for storing farm produce, processed farm produce and agriculture inputs.  To create infrastructure facilities for grading, standardization and quality certification of agricultural produce.  To promote Integrated Value Chains etc. Implementing agency Directorate of Marketing and Inspection through NABARD, NCDC, SFAC Eligibility / norms / coverage Eligible Beneficiaries: Individuals, farmers, Group of farmers/growers, Registered Farmer Producer Organisations, Partnership/ Proprietary firms, Companies, Corporations, Non-Government Organizations, Self Help Groups, Co-operatives, Co-operative marketing Federations, Autonomous Bodies of Govt., Local Bodies other than Municipal Corporations, State Agencies including State Government Depts State Owned Cooperatives viz., Agricultural Produce Marketing Committees, Marketing Boards , State Warehousing Corporation, State Civil Supplies Corporation etc. Location should be outside the limits of Municipal Corporation areas except in cases where they are situated within Food Parks, Market yards, APMCs, industrial areas established or approved by State or Central Agencies etc. Nature of support / assistance Credit Linked Assistance

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Rate of subsidy shall be: For storage infrastructure projects a) 33.33% of the capital cost of the project to Registered FPOs, Panchayats, Women SC/ST beneficiaries or their self-help groups/ Co-operatives subject to a maximum ceiling on subsidy of `3.00 crore.

b) 25% of the capital cost of the project to all categories of beneficiaries subject to a maximum ceiling on subsidy of `2.25 crore. The total subsidy that can be availed by a promoter during the XII Plan period under the scheme for storage infrastructure (including other functional infrastructure projects)shall be restricted to a minimum of 50MT and maximum capacity of 30000 MT. For infrastructure projects other than storage infrastructure a) 33.33% of the capital cost of the project to Registered FPOs, Panchayats, Women SC/ST beneficiaries or their self-help groups/ Co-operatives subject to a maximum ceiling on subsidy of `5.00 crore.

b) 25% of the capital cost of the project to all categories of beneficiaries subject to a maximum ceiling on subsidy of `4.00 crore. For projects involving standalone mobile infrastructure the maximum amount of subsidy that can be availed by a promoter during the XII Plan period is `4.00 crore or `5.00 crore as the case may be. 3. Central Sector Scheme- Establishing Agri Clinic and Agri Business Centres (www.nabard.org, www.agriclinics.net)*

Objective  To supplement the efforts of public extension by necessarily providing extension and other services to farmers, to support agriculture development and create gainful self-employment opportunities for unemployed agri-graduates, agriculture diploma holders etc.  For details please refer - Compendium of Instructions for implementing the revised ACABC scheme 2010 available at www. agriclinics.net Implementing agency Ministry of Agriculture, GOI and NABARD The subsidy would be admissible only in respect of agricultural entrepreneurs as per the revised guidelines. Eligibility / norms / coverage All candidates trained under the scheme shall be eligible for subsidy with respect to investments made after July 9, 2006 (applicable to loan amounts sanctioned on/after this date.) Salient Features of the revised ACABC Scheme: Nature of support / assistance a) Change from Capital & Interest Subsidy to Composite Subsidy. b) Rate of subsidy - 44% of project cost for women & SC/ST, North Eastern, Hilly States and 36% of project cost for all others.

c) Ceiling of Project Cost: `20.00 lakh for individual & `100.00 lakh for a Group project (minimum 5 individuals). 4. The Scheme of MNRE, GoI for promoting Solar Photovoltaic Water Pumping System for Irrigation purpose (www.nabard.org) www.mnre.gov.in*

Objective To meet the irrigation requirements of land holdings of small and marginal farmers and reduce their dependence on diesel pumpsets and also increasing cropping intensity. Implementing agency Ministry of New and Renewable Energy (MNRE), GoI and NABARD Eligibility / norms / coverage Individuals, groups of individuals, SHGs, JLGs, NGOs, Farmers' Clubs and Farmers Producers Organisation are eligible. Private/ Public Ltd Companies/ Corporates are not eligible. Subsidy under the scheme is available only for solar systems that are procured from MNRE empanelled manufacturers/ entrepreneurs. Nature of support/ assistance  For DC pumps upto 2HP and for >2 to 5HP the maximum subsidy is `57600/- and `54000 per HP respectively.

PLP 2016-17 Ananthapuram

 For AC pumps upto 2HP and for >2 to 5HP the maximum subsidy is `50400/- and `43200 per HP respectively.  For pumps >5HP to 10 HP, subsidy amount is fixed at `194,400 per pump.  The capital subsidy is applicable on system cost, inclusive of installation commissioning, transportation, insurance, 5 years maintenance and taxes wherever applicable.  Beneficiary margin of 20% has been waived. 5. Dairy Entrepreneurship Development Scheme (www.nabard.org) www.dahd.nic.in*

Objective  To generate self-employment and infrastructure for dairy sector.  Set up dairy farms and infrastructure for production of clean milk.  To bring structural changed in unorganized sector, upgrade traditional technology and handle milk on commercial scale.  Value addition of milk through processing and production of milk products. Implementing agency Dept. of Animal Husbandry, Dairying and Fisheries and NABARD Eligibility / norms / coverage Farmers, Individual Entrepreneurs, Groups of Organized Sectors and unorganized sectors, (Organized sector include Self Help Groups, Dairy Co- operative Societies, Milk Unions, Milk Federations, Panchayati Raj Institutions). Nature of support / assistance Under the scheme a Subsidy of 25% of the outlay (33.33% for SC/ST entrepreneurs) being provided to dairy farmers. Margin of 10% shall not be required for loans less than `1.00 lakh or amount specified by RBI from time to time. To be eligible for subsidy the claim should reach NABARD within two months of release of first instalment. Small dairy units 2 to 10 animals Unit Cost `6.00 lakh for 10 animal units. per member Subsidy ceiling of `15000/- per animal (`20000/- for SC/ST) Rearing of Heifer calves -upto 20 Unit Cost `5.30 lakh for 20 calves. calves Subsidy ceiling of `6600 per calf (`8800 for SC/ST) Vermi-compost with milch animal Unit Cost `22000/- unit Subsidy ceiling of `5500 per unit (`7300 for SC/ST) Milking machines, milk-testers, Unit Cost `20 lakh. Bulk milk cooling units Subsidy ceiling of `5.00 lakh (`6.67 lakh for SC/ST) Dairy processing equipment Unit Cost `13.20 lakh. Subsidy ceiling of `3.30 lakh (`4.40 lakh for SC/ST) Transportation facility and cold Unit Cost `26.50 lakh. storage chain Ceiling of `6.625 lakh (`8.830 lakh for SC/ST) Cold storage for milk and milk Unit Cost `33.00 lakh. products Subsidy ceiling of `8.25 lakh (`11.00 lakh for SC/ST) Private veterinary clinics Unit Cost of `2.60 lakh for mobile clinic and `2.00 lakh for stationary clinic. Subsidy ceiling of `65000/- and `50000/-respectively (`86600/- and `66600/- for SC/ST) Dairy Marketing Outlets/ dairy Unit Cost `1.00 lakh. Parlours Subsidy ceiling of `25000/- (`33000/- for SC/ST)

**Under DEDS- Scheme continuation for FY 2015-16 has been received. The budget provision of `127.00 crore has been made which includes `99 crore under General /ST component. The amount is just sufficient to clear the pending claims at NABARD level. However, sufficient funds are available under SC category. Banks are advised to focus on SC beneficiaries.

@The Gramin Bhandaran Yojana (GBY) and Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS) were subsumed under Agricultural Marketing Infrastructure (AMI) sub scheme of Integrated Scheme for Agricultural Marketing (ISAM) w.e.f 01 April 2014. ISAM was suspended w.e.f 05 August 2014.

NB: All the above schemes are subject to guidelines that may be issued by GoI from time to time.

PLP 2016-17 Ananthapuram

CHAPTER 3

CREDIT POTENTIAL OF AGRICULTURE

“NABARD in the year 2012-13 had prepared Base PLP for five years coterminus with the 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 infrastructure, 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 finalization of Base PLP on account of factors such as changes in Government’s priorities and policies, strengthening of rural infrastructure, market forces, cost escalation, etc., necessitating a relook at the credit potential for the year 2016-17.

3.1 FARM CREDIT

3.1.1 CROP PRODUCTION, MAINTENANCE AND MARKETING

3.1.1.1 Introduction

Ananthapuram is the southern-most district of the Rayalaseema region of Andhra Pradesh. While agriculture remains the most important economic activity of the district, it is characterised by high levels of instability and uncertainty. Being located in the rain-shadow region of Andhra Pradesh, the district is drought-prone. According to Hand Book of Statistics 2013-14, Ananthapuram district, the net sown area in the district is 10,38,980 ha and the gross cropped area is 11,06,371 ha. Cropping intensity is very low at 106%, on account of lack of irrigation facilities for double/ multiple cropping. As much as 90% of the net sown area is cultivated under rain fed conditions. There are no perennial rivers in the district. Tanks, Project canals, tube wells and dug wells are chief sources of irrigation, together providing irrigation water to 1,30,488 ha. i.e., about 12.56% of the net sown area.

Total numbers of farmers in the district are 6.576 lakh and the area held by them is 12.55 lakh ha. About 66% of the total holdings are small and marginal, together possessing only 36% of the total area. Whereas, the share of large holdings of the total holdings is 1.2% and possesses 9.3% of the total area.

Groundnut is the main crop grown in over 80% of cultivated area and 90% of it is under rainfed conditions. Redgram, paddy, maize, sunflower, cotton, castor, ragi, jowar, bajra & korra are the other crops grown in the district.

The mean annual rainfall in the district is 553 mm with a coefficient of variation (CV) of 28 percent and this is higher than the threshold level of 25 percent and the district experiences recurrent drought conditions once in every three years. The length of growing period (LGP), which is an assessment of the period during the year when both moisture availability and temperature are conducive to crop growth, is calculated to be 119 days in Anantapur district; Out of these eighteen weeks of growing period thirteen weeks experience dry spells with a probability of more than 60 percent and fifteen weeks experience dry spell with a probability of more than 50 percent. In view of the aforesaid weather aberrations during the crop growth period, Weather based crop insurance has been introduced in the region to safeguard the interests of the farming community. The Government have notified for the first time groundnut crop under weather based crop insurance scheme (WBCIS) vide reference G.O. Rt No. 759, Agriculture & Co-operation (FP. II.1) Department, Dt.01.07.2011

PLP 2016-17 Ananthapuram for implementation during kharif 2011 season in the four districts of Rayalaseema Region i.e., Ananthapuram, Kadapa, Kurnool and Chittoor districts. The WBCIS scheme is continued in the current year and is likely to continue in 2016-17 also.

3.1.1.2 Assessment of exploitable potential for the year 2016-17 The average gross cropped area of the last five years is 10,61,769 hectares. 100% SF/ MF and 85% other farmers are expected to avail institutional credit for crop production. Therefore the GCA reckoned for assessing crop loan potential is 966635 hectares. The total crop loan required in the district is assessed as per revised KCC scheme i.e., Scale of finance multiplied by extent of area under various crops plus 10% of the limit towards post harvest household consumption requirement and 20% of the limit towards repairs and maintenance expenses of farm assets plus crop insurance. The District Level Technical Committee (DLTC) has fixed scale of finance for various crops for the year 2015-16 which is furnished in Annexure V. The assessment of potential for the year 2016-17 is made based on the assumption that the Scale of Finance (SoF) would go up by 10% over that of 2015-16.

The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `. 249203 lakh, `. 344057 lakh and `. 196662 lakh respectively, indicating a drastic decline in crop loan disbursements in 2014-15 on account of debt waiver scheme of GoAP. (` lakh) Base PLP(2016-17) Revised (2016-17) Sr . Crop/ Unit Phy Fin. Bank Fin. No. Activity Phy Units Bank Loan Units Outlay Loan Outlay 1 Paddy ha 44000 23100 23100 48783 23306 23306.08 2 Jowar ha 28205 7700 7700.24 3 Maize ha 18349 6262 6261.60 4 Bajra ha 1854 380 379.61 5 Korra ha 2731 559 559.17 6 Ragi ha 1894 388 387.80 7 Redgram ha 50000 15750 15750 41449 11316 11315.58 8 Bengal gram ha 65000 21093 21093 87664 25642 25641.72 9 Ground Nut ha 708412 283365 283365 625202 277355 277358.36 10 Sunflower ha 43000 19565 19565 31644 11930 11929.79 11 Castor ha 9160 2352 2351.83 12 Cotton ha 6977 3809 3809.44 13 Others ha 163000 62723 25685 25685.07 Sub Total 428072 428072 966635 396683 396686.28 12 Agril.produce M T 0 0 22000 8250 8250 loans Total 428072 428072 404933 404936.28

There has been more land conversions from agriculture to non-agricultural purposes in the last few years. There was also gradual change in crops/ cropping pattern, area under groundnut is coming down and area under coarse cereals and millets is increasing, area under cotton crop under both irrigated and rainfed situations has gone up. New crops such as Guar and Quinoa have been introduced. The Department of Agriculture is promoting Guar cultivation by making available guar seed at subsidized prices. The Agricultural Cooperative Marketing Federation (MARKFED) is likely to undertake procurement operations of guar during 2015-16.

Keeping in view the fluctuations in acreage under various crops and ground level situations, the exploitable potential for the year 2016-17 is pegged at `. 4049.33 crore bank loan. It includes `. 82.50 crore towards produce pledge loans/ marketing loans against NWRs.

PLP 2016-17 Ananthapuram

3.1.1.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed

The Revenue Department said to have issued 8 lakh Pattadar Pass Books/Title Deeds. ATMA, located in the district, conducts training to farmers, demonstrations, exposure visits, exhibitions, information dissemination of technology, give awards to best farmers and also facilitates interaction with scientists. Agriculture Research Station located at Kadiri, DATT Centre and KVK provide training programmes to the farmers apart from developing new technologies / new cultivators & other farm equipment in groundnut.

The Agriculture Department has been drawing plans and making efforts to make available seeds, fertilisers, pesticides, etc.. Crop like groundnut, where seed volume is high, seeds retained by the farmers are used and the involvement of private sector in seed production is absent. More than one-third of the total seed requirement of the district is met by the department since 2006, as a distress-alleviating measure. Since rabi 2011, the department of agriculture has implemented the seed village programme. The seed produced under the programme was exchanged/ sold amongst the farmers of the same village and/ or neighbouring villages. Thus, it has increased the confidence among the farming community in quality seed production.

IPM and INM demonstrations are being organised. Organic farming practices are encouraged by reimbursing 100% of certification fees paid by the farmer(s). Farm mechanaisation implements and sprinkler sets are being supplied at subsidised prices under RKVY Yantra Laxmi programme. Under Bhoo-Chetana programme, the Department of Agriculture has been collecting soil samples from the farmers. Based on the soil test data, remedial measures in respect of micro nutrient deficiencies are taken up, by arranging the micro nutrient formulations at subsidized prices under various on-going programmes. Village level farmers training programmes (Polam Badi) were conducted focusing on transfer of technology, educating the farmers with help of models and live demonstrations, by mandal level team of Agriculture and allied departments.

During 2014-15, banks have disbursed an amount of `.2705.69 crore loans under priority sector. Of that `.1966.62 crore was disbursed by way of crop loans (including loans to Agriculture against hypothecation of gold jewellery). Government of India/ RBI has directed all the banks to finance crop production upto `. 3.00 lakh @ 7% rate of interest. GoI is also implementing the scheme of interest subvention @ 2% to banks and interest rebate @ 3% as an incentive for prompt repayment of crop loans. NABARD has been providing ST-SAO refinance against crop loans disbursed by RRBs and DCCBs at just 4.5%.

The Kisan Credit Card Scheme aims at providing adequate and timely credit support. As per revised KCC guidelines, the crop loan component should include the scale of finance for the crop plus 10% of the limit towards post-harvest/ household consumption requirements + 20% of limit towards maintenance expenses of farm assets. The validity of the KCC limit is extended for five years from three years earlier. It is a savings bank cum loan account, now agriculture term loan requirement can also be sanctioned as a separate component under KCC. A flexi limit for marginal farmers has to be provided. Disbursement has to be promoted through various delivery channels, including ICT driven channels like ATM/ PoS/ Mobile handsets. Debt waiver scheme of GoAP: Government of Andhra Pradesh has implemented crop loan waiver scheme for the crop loans disbursed in kharif 2013 and outstanding as on 31.03.2014. The total loan waiver eligibility for an individual farmer was `. 1.5 lakh. It was released in full for the farmers having outstanding up to `. 50000, whereas, for other farmers it was to be released in five equal instalments. Accordingly they could get 20% of 21

PLP 2016-17 Ananthapuram their outstanding or 20% of the maximum eligibility i.e., `. 1.5 lakh, whichever is lower. The Scheme has adversely affected the crop loan disbursements in 2014-15 but the credit flow to this sector has regained normalcy in kharif 2015. Critical issues which affect realization of potential& interventions required to create a definite impact are as under:  Seed replacement rate (SRR) should be enhanced from the present SRR of 14% by making available certified seeds of suitable crop varieties as adoption of certified seed alone would enhance crop productivity by 15 – 20%. Coverage of more villages under the seed village programme will enable farmers produce good quality seed by themselves.  More custom hiring farm machinery Agro Service Centres shall obviate the current farm labour crisis.  Drought proofing measures viz., Large scale excavation of farm ponds for rainfed farmers which would help them in providing one or two life saving irrigations during dry spells and it shall go a long way in protecting the drought stricken farmers of the district. Action Points Banks  Sanction & disbursement of crop loans to the eligible tenant farmers should be based on the Loan eligibility cards issued by Revenue department.  Cooperative banks may raise the individual maximum borrowing power (IMBP) to a realistic level.  Financing non loanee farmers. Financing through debt swaping may be encouraged.  An estimated area of 49206 ha is the potential created under completed RIDF projects in the district. Similarly, under Comprehensive Land Development Programme, an area of 11850 ha was treated and brought under cultivation which is now available for financing crop loans by banks.  The scheme for setting up Agri Clinics and Agri-Business Center (ACABC) by agriculture graduates for providing a package of soil / input testing facilities and extension services may be promoted by the banks.  Post harvest loans to small and marginal farmers against Negotiable Warehouse Scheme: GoI is providing 2% interest subvention to banks for providing marketing / post harvest loans to SF/MF against NWRs, for a period upto maximum of 6 months or date of repayment whichever is earlier. The Objective of the scheme is to discourage distress sale and to fetch remunerative price of the produce. Banks are required to implement the scheme.

Development Departments of Government  To focus on crop diversification, the Department of Agriculture is required to make necessary arrangements for making available the cerified seeds of recommended crops.  Non pesticidal management/ organic farming practices may be popularized to reduce cost of cultivation of crops in general and Ground Nut in particular and also to improve land productivity.

PLP 2016-17 Ananthapuram

3.1.2 WATER RESOURCES

3.1.2.1 Introduction

Irrigation water provision would improve the farm productivity as well as production through increased cropping intensity by making possible double or triple cropping. While major and medium irrigation structures are taken up in the public domain, majority of the minor irrigation structures are created through private investments only. MI structures are grouped into two categories viz. Ground water based structures (dug wells, bore wells dug cum bore well and tube wells) and surface water (lift irrigation). Besides efficient irrigation systems like drip and sprinkler as also water saving devices like lining of channels, underground pipe lines are also included in MI. The district is experiencing semiarid conditions characterized by scanty and erratic rainfall, lack of surface water resources, over dependence on meager groundwater resources for its domestic, industrial and agricultural purposes. Out of the gross cropped area of 11.06 lakh hectares, only 1.61 lakh hectares are irrigated through canals, tanks and other sources forming 14.62% of total cropped area. The net cultivated area is about 10.389 lakh ha while the net irrigated area is about 1.305 lakh ha (83% area irrigated through groundwater) as per Hand Book of Statistics, Anantapuram district, 2013-14. Based on the level of exploitation of Ground Water, the categorization of Mandals in the district as per Ground Water estimates, 2013-14 is 24 safe, 16 semi-critical, 2 critical and 21 over exploited. There is need for exercising abundant caution in further ground water development. The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `. 2123 lakh, `. 906 lakh `. 249 lakh respectively, indicating a decreasing trend. This was on account of recurrent drought conditions, lesser recharge of ground water, high incidence of failed bore wells both existing ones and new drillings. This phenomenon has discouraged the bankers from extending loans to new bore wells. Accordingly potential assessment of new bore wells is restricted to ‘safe’ mandals only. 3.1.2.2 Assessment of exploitable potential for the year 2016-17

The potential for the year 2016-17 has been re-assessed vis a vis base PLP 2012-13 to 2016- 17, taking into account the rainfall, ground water recharge, level of exploitation, and the bankable potential is given in the table below. (`. lakh) Base PLP(2016-17) Revised (2016-17) Sr Activity Unit Phy Fin. Bank Phy Fin. Bank No. Units Outlay Loan Units Outlay Loan 1 Bore wells + SMP No. 325 312.00 280.80 200 231.00 207.90 2 SMP sets No. 2800 1288.00 1159.20 1715 1131.90 1018.71 3 EM / Oil Engines No. 730 204.40 183.96 525 161.70 145.53 4 Drip sets (for Ac 4300 1720.00 430.00 7350 5739.42 1434.85 various crops) 5 Sprinkler Irrigation Ha 5350 1070.00 267.50 4500 1692.90 423.05 6 Pipeline Ha 6000 1200.00 1080.00 4400 1016.40 914.76 Total 5814.40 3419.46 9973.32 4144.80 For Drip & Sprinkler sets the subsidy available to the farmers is in the range of 100% (for SC/ ST farmers) to 70% (for big farmers), therefore 25% of the unit cost is adopted as the average bank loan portion.

PLP 2016-17 Ananthapuram

3.1.2.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed

The Groundwater Department has been established in the district. There are 20 private geologists registered with the Groundwater Department. 223 Rigs were registered with the Department up to March 2015. The APMIP has been established in the district and is overseeing supply of DRIP and Sprinklers. There are dealers for supply of various makes of Pump sets. There is good number of service / repair units even in remote areas. APBIRED, Hyderabad and RUDSETI, Anantapur have been training rural youth in this trade every year. Free power is being supplied by APTRANSCO for agricultural pump sets. The notification of APWALTA Act 2002 by the State Government is a step in the right direction in stopping indiscriminate digging of bore wells, over exploitation of Ground Water resources in the district. Measures for improving the Groundwater potential: The District Water Management Authority (DWMA) under NREGS has taken up on a very large scale various measures for improving the recharge of groundwater through percolation tanks, trenches on the hills, ponds in farmers fields, etc.. In the year 2014-15 de-siltation was done in large number of tanks under ‘Neeru-Chettu’ programme of GoAP.

During 2014-15, the concept of water sharing between the bore-well owner and the neighbouring farmers through network of pipes and portable sprinklers was attempted on a pilot basis. It has helped in rendering life saving irrigation to the crops during the times of dry spells and has promoted social harmony and cooperation amongst the farming community. Looking at the success of the pilot the state government has planned for up scaling the pilot to 50000 ha in 2015-16.

Critical issues which affect realization of potential & interventions required to create a definite impact are as under  The issue of inadequate technical staff with Ground water department has to be addressed immediately so that it would help in timely technical help to farmers in selection of sites, size, designs etc., based on the aquifers.  There are time lags in providing power connection by APTRANSCO.  There is every need for fitting all the agriculture bore wells in the district with water saving application devices such as drip or sprinkler sets depending on the crops/ cropping pattern. It needs increased allocations to the district under APMIP. There is also need for replacing the drip sets supplied about 8 - 10 years back.  There is dire need for introducing a scheme for compensating the farmers if he failed to strike water in the new drillings.

Action Point Banks - The replacement requirement needs of MI structures required to be supported by banks.

Development Departments of Government  The GWD is to be strengthened to extend guidance to farmers in selection of sites and design of MI structures.  New MI structures may be taken up only in safe and semi-critical basins with prior advice of GWD.  The DWMA may construct more percolation tanks and check dams in the district under NREGS. Similarly, DWMA may also take up desiltation of tanks, supply channels and feeder channels in a big way.

PLP 2016-17 Ananthapuram

 Irrigation tanks with ayacut of less than 10 ha. may be converted into percolation tanks for augmenting water yield in the irrigation bore wells down the stream.  The Government may declare Ground water a common property resource and adopt measures for equitable sharing of ground water.  Ground water recharge through water harvesting on the up stream side of every new and existing bore wells so as to avoid failures and improve water yields.

3.1.3 FARM MECHANISATION 3.1.3.1 Introduction Farm Mechanisation (FM) while reducing drudgery in agriculture operations, plays a key role in increasing production and productivity, better utilisation of irrigation potential by facilitating timely agricultural operations, adoption of multiple cropping system etc., It increases the efficiency of other factors of production, i.e., land & labour. Acute shortage of labour for farm operations and its cost warrants expedited mechanization. Anantha planter(both animal drawn and tractor drawn) developed Agricultural Research Station, Ananthapuram is the most appropriate implements for the district. On rural roads, tractors have emerged as important means of farm transport. Several mineral based industries in the district also offer good scope for tractors as a means of rural transport.

The average supply of power in agriculture in the state/ district has to be increased from present level of 3.25 kw/ ha (2013-14) to 4 kw/ha in order to achieve planned production levels. The additional power has to be supplied mostly by tractors, power tillers and self propelled machines and to some extent by engines and motors for pumpsets. Farmers have to a great extent shifted from animal drawn farm machinery to tractor drawn machinery for various field operations. Considering the existing number of tractors, power tillers and draught animals vis-a-vis the requirement there is scope for adding another 525 standard tractors (including replacement of old tractors) and 290 mini tractors. The requirement of agricultural implements can be considered at two and half times of the tractor requirement. There is also demand for machinery like rotavators, seed cum fertilizer drills, G Nut decorticators, threshers, etc.. The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `. 3123 lakh and `1018 lakh and `. 259 lakh respectively, indicating a decreasing trend. This was on account of recurrent drought conditions and crop failures farmers are not able to get any returns so that they can re-invest, neither they are motivated to avail bank loan so that capital assets can be created. However, keeping in view the deficit in farm power requirement and the existing number of tractors and other farm machinery, exploitable potential assessment under the sector was made. 3.1.3.2 Assessment of exploitable credit potential for 2016-17 The potential for the year 2016-17 has been re-assessed vis-a-vis base PLP 2012-13 to 2016-17, taking into account the infrastructure and support services available and the same is given in the table below.

PLP 2016-17 Ananthapuram

(`. lakh) Base PLP(2016-17) Revised (2016-17) Sr. Activity Unit Phy Fin. Bank Phy Fin. Bank No. Units Outlay Loan Units Outlay Loan 1 Tractor with attachments o. 1100 5170.00 4394.50 525 4134.38 3100.78 2 Mini tractor with No. 290 1370.25 1164.71 implements 3 Rotavator No. 60 61.74 49.39 4 Tractor drawn implements No. (a) 9 tyne spring loaded No. 1780 505.52 428.94 cultivator (b) Seed cum Fertiliser drill No. 50 15.25 12.94 (manual) (c) Seed cum Fertiliser drill No. 200 119.80 101.75 (automated) 5 Other Agriculture No. 1738 382.36 191.18 2000 190.00 94.50 implements – MB plough & Seed cum Fertiliser Drill(Animal drawn) 6 Ground Nut decorticator No. 200 94.60 75.60 7 Multi crop thresher(MCT) No. 300 315.00 252.00 8 Maize dehusker cum sheller No. 19 13.55 4.74 20 9.24 7.39 9 Paddy combined harvester No. 1 29.28 10.25 1 21.00 15.75 10 Transplantor No. 3 26.62 9.32 1 15.75 11.81 11 Laser guided land leveler No. 11 38.50 13.48 2 7.35 5.51 12 Solar fencing with five lines 20 12.60 9.45 and 7’ poles Total 5660.31 4623.46 6872.48 5330.52 For animal drawn implements the subsidy is as high as 50% therefore the remaining 50% is reckoned as bank loan. Similarly, the bank loan portion of the cost of various farm machinery & equipment is in the range of 75 to 85% depending on the quantum (or) proportion of subsidy available. Keeping in view the technical prescriptions, existing policies and farmers’ choices necessary changes have been made in the bankable activities and the physical & financial projections for the year. Moreover there is dire need to accelerate the pace of capital formation in agriculture and allied sector, it is imperative that agricultural term loans should form at least 30% of the total agricultural lending. Hence there is an increase in projections of 2016- 17 over base PLP estimates for the year. 3.1.3.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed

Tractor manufacturers like Mahindra & Mahindra, Escorts, Eicher, Massey-Fergusson and HMT have their dealers in the district for supply of tractors. A good number of suppliers of implements are also available in the district offering choice in selection of tractors. Availability of good servicing facilities and spare parts is in abundance. Large number of Companies provide credit for purchase of the various farm machinery & equipment especially tractors at very flexible terms and conditions. Some of the banks viz., Andhra Pragathi Grameena Bank, State Bank of India, Syndicate Bank, ING Vysya Bank have already tied up with these firms to extend necessary benefits to farmers. There is no infrastructure gaps for the activities in the district. Data on sales of second hand tractors is not available in the district. The State Department of Agriculture is implementing centrally sponsored RKVY – Yantralaxmi programme a comprehensive scheme for sanction of high cost machinery to

PLP 2016-17 Ananthapuram

Rythu Mitra Groups (RMGs) at subsidized prices. Crop specific machinery & equipment along with suitable tractor for crops such as paddy, groundnut, cotton etc., are supplied to enable them to establish and run it on custom-hiring basis. Subsidy @ 50% of the cost of the tractor & machinery, subject to maximum ceiling of `. 1.50 lakh for tractors, is available under the scheme. Allocations are available to the district for farm machinery under various schemes such as NFSM, FM, RKVY-Yantralaxmi. For the year 2015-16, the Department has a programme of supporting 2000 animal drawn implements, 360 tractor drawn implements, 180 self propelled agricultural machinery, 35 power tillers, 1100 P.P. equipment etc., with a projected outlay of `. 135.75 lakh. Critical issues which affect realization of potential & interventions required to create a definite impact are as under: In view of the acute labour shortage and high production costs, the technical line departments may encourage farm mechanization in all the possible farm operations.  Banking personnel may have to be involved whenever there is an interface meeting for the stake holders Farm machinery viz., R&D personnel, industry and farmers/ end user is conducted.  Agriculture Department may put on display entire range of farm machinery at an appropriate place in the district HQ.  To popularise various farm equipment by holding demonstration in farmers fields in selected villages.  Banks may consider liberalising the terms and conditions for sanction of loans to farm mechanisation.  The thrust on farm mechanization should continue and a model bankable project should be prepared for custom hiring unit of Farm machinery.  Under Agri Clinic Agri Business Centre (ACABC) scheme, farm machinery component may be included and individual entrepreneur loan eligibility under the scheme may have to be raised from 20 lakh (at present) to 30 lakh.

3.1.4 PLANTATION & HORTICULTURE AND SERICULTURE 3.1.4.1 Introduction

Horticulture : Ananthapuram is one of the potential districts identified for development of horticulture crops in the state. GoAP has a plan to develop a horticulture hub in Ananthapuram district under Primary sector mission. The Primary sector mission is an integration of the three schemes Mission for Integrated Development of Horticulture (MIDH), Rashtriya Krishi Vikaas Yojana (RKVY) and the State Plan components. Area under horticulture crops (fruits, vegetables, plantation crops, medicinal & aromatic plants, spices & flowers) as enumerated by the Horticulture Department as on 31 March 2015 was 1,44,617 ha., with a total production of 2828415 MT (excluding coconuts, betel leaves and loose flowers). With a recorded area of 41190 ha under citrus fruits, they occupy about 40% the area under orchard crops. Of late, area under mango has increased substantially and at present 39738 ha is under mango. The other major fruit crops grown in the district are banana, pomegranate, sapota, papaya, ber, guava and grape. Potential exists in the district for dry land horticultural crops like ber, sapota, guava, pomegranate, amla, etc., particularly in watershed areas. Melons (Muskmelon & Watermelon) are grown in about 12522 ha in the district. Area under vegetables is picking up and it has reached 28206

PLP 2016-17 Ananthapuram

Ha and the major crops are tomato, green chillies, onion, brinjal, beans, bitter gourd & ladies finger. Flowers are grown in an area of 3125 ha in the district of which marigold, crossandra, jasmine and tuberose are the major ones. Sericulture : Ananthapuram is one of the traditional districts for sericulture accounting for 46% of the total cropped area under mulberry in the state. Sericulture encompasses all the activities involved in raising the mulberry plantation, rearing silk worms on the mulberry leaves for obtaining cocoons, reeling the silk thread and twisting it to make it suitable for weaving. It is an important sector taking the income accruals and employment generation potential. Further, it also provides employment and income in associated activities such as (i) grainages, chawki rearing centres, seed farms and mulberry nurseries which provide backward linkages and (ii) dyeing, weaving, garment making and marketing at different stages which provide forward linkages.

The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `. 4399 lakh and `. 796 lakh and `. 574 lakh respectively, indicating falling trend. This was on account of poor off take of bank loan by horticulture farmers, limited subsidy under the on-going programmes and use of own resources to meet the non-subsidy portion of the investment. However potential assessment is made with an assumption that more and more farmers will take up horticulture activity and would approach the banks for term loan.

2. Assessment of exploitable credit potential for 2016 -17 The potential for the year 2016-17 has been re-assessed vis a vis base PLP 2012-13 to 2016- 17, taking into account the infrastructure, support services and the subsidy available under on-going programmes such as MIDH, RKVY and the State Plan; crop-wise and bankable activity-wise potential is indicated in the table below.

Horticulture (`. lakh) Unit Base PLP(2016-17) Revised (2016-17) (No. Phy Activity Phy Fin. Outlay Bank Fin. Outlay Bank /Are Unit Units Loan Loan a) s Mango ha 2000 1500.00 375.00 2000 1008.00 504.00 Mango rejuvenation ha 175 52.50 5.25 110 23.10 11.55 Citrus ha 2250 2081.25 520.31 2250 1129.50 564.75 Guava ha 305 179.66 44.91 90 31.50 15.75 Ber ha 250 307.50 76.88 85 25.50 6.38 Pomegranate ha 550 311.85 77.96 400 235.20 117.60 Sapota ha 175 53.90 26.95 Grape (with own root) ha 1350 2295.00 1721.25 200 581.80 290.90 Banana (Tissue culture) ha 1260 1260.00 315.00 1000 801.00 400.50 Papaya ha 5500 357.50 89.38 400 393.60 196.80 Loose flowers ha 60 240.00 216.00 60 45.60 22.80 Nursery for raising seedlings No. 65 95.55 47.78 50 1000.00 500.00 of vegetables Bio-fencing with Henna ha ------Pack House No. 21 52.50 39.38 10 40.00 20.00 Vegetables – Investment ha 1250 3750.00 2812.50 1250 4375.00 3937.00 cost* 0 0 Aloevera ha 33 16.54 12.40 12 6.30 3.15 Aonla ha 61 41.33 31.00 40 28.56 14.28 Citronella ha 66 25.14 18.85 13 4.78 2.39 Lemon grass ha 68 23.92 17.94 15 5.99 2.99

PLP 2016-17 Ananthapuram

Aswagandha ha 972 194.48 145.86 16 3.36 1.68 Total 12957.21 6584.89 9792.69** 6639.97 The subsidy available for eligible crops and activities under MIDH, RKVY & State Plan is to the extent of 50%, therefore the non subsidy portion only is reckoned as bank loan.

*The area under vegetables has been increasing at a growth rate of 20 to 25 % every year because of support measures available under on-going schemes of the department. Farmers have to incur investment for erecting/ installing certain semi-permanent structures such as pandals/ trellis, shade nets, mulch sheets etc., for which subsidy is available and only non- subsidy portion is reckoned for bank loan. ** The drastic reduction in TFO in 2016-17 vis a vis base PLP 2016-17 is owing to rationalization of unit costs and also physical units projected under various crops.

Sericulture (`. lakh) Activity Unit Base PLP(2016-17) Revised (2016-17) (No. Phy Fin. Outlay Bank Phy Fin. Outlay Bank /Are Units Loan Units Loan a) Mulberry plantation Ha 5051 909.21 772.83 3000 1584.00 1346.40 Silk worm rearing cost No. 5051 454.60 454.60 4000 900.00 450.00 Rearing shed No. 1025 1516.81 758.40 250 687.50 515.63 Rearing equipment No. 1025 307.46 153.73 300 210.00 157.50 Chawki raering centre No. 37 137.26 68.63 10 60.00 45.00 Drip Irrigation sets No. 1757 333.81 83.45 1000 926.00 231.50 Vermi compost units No. 1757 245.97 122.98 1000 200.00 100.00 Kisan nurseries No. 44 74.67 37.33 10 17.60 8.80 Common mounting halls No. 7 18.30 14.64 5 12.50 6.25 Mobile disinfection units No. 3 5.86 4.39 2 4.00 2.00 Total 4003.95 2471.00 4601.10 2863.08

Grand Total 16961.16 9055.89 14393.79 9503.04 (Horti & Seri) In view of varying quantum/ proportion of subsidy available under various seri activities viz.,mulberry seedlings, rearing shed, supply of inputs, vermi compost, kissan nurseries, mounting halls and disinfection units, the non subsidy portion of the respective unit cost is considered for reckoning bank loan requirement. Keeping in view the new policies, programmes and ground level realities the physical and financial projections for 2016-17 are modified suitably. Moreover there is dire need to accelerate the pace of capital formation in agriculture and allied sector, therefore it is imperative to increase the term loan component to atleast 30% of the total agricultural lending. In tandem with that slight change has been effected in the projections of 2016-17 over base PLP estimates. 3.1.4.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed Under the infrastructure, an enabling policy & programmes, qualified and trained man power, requisite physical infrastructure for delivering the project inputs and the production inputs required by the farmers etc., are largely available and the same are described in the following paragraphs.

The district is segregated into two administrative divisions and allocated between two Assistant Directors AD – I & AD-II and both the divisions are now overseen by the Deputy Director Horticulture stationed at Ananthapuram district HQ. At the mandal level, there is an acute shortage of technical manpower in the district. Against the requirement of 70 there are only 33 Horticulture officers working. 29

PLP 2016-17 Ananthapuram

Regional Horticulture Training Institute has been established at Ananthapuram that caters to the capacity building requirements of both Ananthapuram & Kurnool farmers. 19 Horticulture Resource Centres were established throughout the District at various potential clusters.

Model nurseries & small nurseries were established in the district in both public & private sectors to cater to the planting material requirements of the farmers in the district.

The fruits, mango and sweet orange produced in the district are being marketed at Market yard for fruit crops, Anantapur. The International Airport at Bangalore, located at 200 kms distance from Anantapur provide good connectivity and offers scope for exports. Refrigerated vans may have to be supported as forward linkage. Although data is not available, substantial quantities of muskmelon, watermelon, pomegranates, fresh vegetables and loose flowers are taken to Banglore, Chennai and Delhi and perhaps they are in turn exported to Middle East.

Formation of crop specific growers societies (grapes, papaya, pomegranate & vegetables) to transform the farmers into good entrepreneurs and to facilitate collective marketing.

The initiatives under Mission for Integrated Development of Horticulture (MIDH) like area expansion, rejuvenation of old orchards, Integrated Pest Management(IPM), Integrated Nutrition Management (INM), protected cultivation, farm mechanization, organic farming coupled with post harvest infrastructure support has given a new dimension to the Horticulture sector in the district. Crops like mango, sweet orange, guava, acid Lime, sapota etc., under assured irrigation and mango, jamun, custard apple under dry land horticulture shall be taken up. Against the target area of 10750 acres the area identified is 10162 Acres. Cluster approach was followed and four clusters at Anantapur, Kalyandurg, Kadiri, Madakasira identified where about 10162 acres in about 208 villages spread over 26 Mandals shall be covered under the programme.

Under RKVY hybrid seed of vegetables, vegetable nurseries, pandals, trellis, shade nets etc., are supplied. Integrated vegetable cultivation was promoted in identified clusters by providing input support i.e., Hybrid vegetable seeds, plastic crates, poly sheets, PP equipment, vermi-compost units, vegetable nurseries on 50% subsidy to ensure availability of vegetables round the year, with an outlay of `.27.382 lakh. Establishment of nutritional gardens (planting of fruit plants and vegetable cultivation in backyards) in Indiramma Housing Colonies in convergence with NREGS & Horticulture to combat malnutrition in rural areas. 30000 Hybrid Vegetable Minikits were supplied on 90% subsidy to the Rural Households through IKP-DRDA to encourage kitchen garden concept for Nutrional security. Anantapur district has been identified for implementing Oil palm development project during the year 2011-12. Bommanahal, Uravakonda, Kanekal, Kuderu, Vajrakarur are the five mandals identified for Oil plam cultivation. It is envisaged to reach the area target of 727 ha. APMIP: Under AP Micro Irrigation Project, a total area of 9955 ha was covered under drip and sprinkler irrigation under horticulture crops during 2014-15. With this, the total area covered under drip irrigation in the district stood at 153757 ha. MG-NREGS project in convergence with State Horticulture Mission with 100% subsidy for the benefit of SC/ ST and assignees covering an extent of 3084 acres with an outlay of `. 814.00 lakh in the district to provide sustainable returns by creating valuable assets by way of plantations. There is near adequate supply of quality planting material for various horticulture crops as there is adequate production in two government and 50 private nurseries. The Horticulture 30

PLP 2016-17 Ananthapuram

Department has two nurseries located at Reddipalli and Chigicherla. The total capacity of planting material including private sector is 2.58 lakh planting material of various fruit crops. Besides, the department has identified private nurseries for major crops which can supply plant material at various places (certain of them are located in Kadapa District) for sweet orange.

Organic inputs – Use of chemical fertilizers in horticulture crops particularly for fruit crops is minimum and the same is discouraged. Majority Orchard growers have had their own arrangements for production of organic & farm grown inputs. Vegetable growers to certain extent use chemical fertilisers to boost the production and adequate quantities are available through wide net work of Dealers. There is wide spread awareness on non chemical pest control where as supply of NPM tools/ materials is limited.

Under Protected cultivation of RKVY, vegetable cultivation on permanent pandals, shade nets, Trellis etc., was promoted with an outlay of `. 92.00 lakhs on 50% subsidy. Plastic crates and polysheets were distributed on 50% subsidy to minimize post harvest losses in horticulture produce.

Infrastructure gap : (i) There is no organised market except a few Rythu bazars

(ii)Need for strengthening the existing nursery operations for meeting future demand. (iii) Infrastructure for post harvest management of fruits and vegetables has to be strengthened. (iv)Grading and packing unit for fruits especially for pomegranate in Raydurg. (v)Banana ripening chamber and pack house needs to be established.

Sericulture : The existing acreage under mulbery is 29369 acres and number of farmers is 27242 spread across 1335 villages. The Department had supplied saplings for raising new mulberry gardens in 1274 acres in 2012-13, 2638 acres in 2013-14 and 3175 acres in 2014- 15 taking the acreage to 29369 acres. During 2015-16, new plantation of mulberry is being taken up in 3800 ac.

The Sericulture department has 6 Technical Service Centres in the district for farm sector and non farm sector and to perform extension functions. There is one seed farm for local race (LR) third pilial (P3) generation and five P2 seed farms {3 local race(LR) and 2 foreign race/ bi-voltine (FR)} in the district that produce P3 and P2 seed cocoons. The Department has plans to increase the number of Technical Service Centers (TSCs) to 16 during 2015-16.

The Govt.. Grainages centres have production capacity of 50.80 lakh crossbred Disease Free Layings (DFL) and 9.00 lakh Bivoltine hybrid DFLs. There are a total of five grainages in the district for supply of commercial DFLs to the sericulturists. Of these, four grainages are under the control of Department of Sericulture. The total production of DFLs in the Govt., Grainages during 2014-15 99.80 lakh DFLs, while that of private grainages stood at 70 lakh DFLs, against the total requirement of about 273 lakh DFLs leaving huge gap in the requirement. The neighbouring district of Karnataka viz., Ramnagar and Kolar district is able to meet the gap in the supply of DFLs.

 of these centres is about 62.62 lakh DFLs, of which the capacity of private units is about 60.77 lakh DFLs. There are 44 CRCs in Hindupur division, 30 units in Madakasira division, 25 in Penukonda division, 14 in Kadiri division, 9 in Kalyandurg division and 2 units in Dharmavaram division.  There are 374 charka basins, 48 cottage basins, 348 multi end basins, and 48100 spindles in 157 twisting units in the district. 31

PLP 2016-17 Ananthapuram

 The Department of Sericulture is implementing CPP, SCP, TSP and MNREGA and encouraging construction of a rearing shed of 40' x 20' (800 sft) for the farmers having one acre of mulberry with a unit cost of `. 1.00 lakh, of which Rs.50000 (@ `. 62.50 per sft is given as subsidy. Supply of shoot rearing equipment @ 50% subsidy, drip irrigation @70% subsidy, supply of saplings, health insurance etc., under the aforesaid programmes. Under non-farm sector the department supplies 4 Kgs silk yarn to each weaver family at 600/- @ `. 150/- per Kg.  268 and 237 rearing sheds were constructed in the district in 2013-14 and 2014-15 respectively and the total no. of rearing sheds in the district (as on 31.03.2015) is 6301 and the programme continues in 2015-16 and the achievement as on 31 August 2015 is 62 rearing sheds against the target of 300.  Production of 15102 MT of reeled cocoons, valued at `. 721.96 crore was achieved during the year 2014-15. Of this, the bivoltine cocoon production at 1054.09 MT is valued at `. 268.95 crore. The prices of cocoons are increasing and therefore more farmers are taking up sericulture.  The APMIP is extending drip irrigation facility to mulberry farms at 60 - 90% subsidy for other farmers and 100% subsidy for SC/ST farmers.

In Anantapur district, the Department of Sericulture (DOS) proposed to cover 11855 ha under V-1 plantations during XII Five Year Plan, for which it had formulated a plan for 444 Kissan Nurseries, 4020 rearing sheds/ shoot rearing racks/ shoot rearing equipment, 909 shoot harvesting machines, 3017 vermi compost units, 4094 humidifiers, 4305 hygrometers, 3660 synthetic water tanks, 37 mobile disinfectants, 111 common mounting halls, 15 chawki rearing centres, 352 power sprayers and 6080 ha under drip irrigation, with a total subsidy component of `. 9708.28 lakh. Infrastructure gap : (i)Additional allocations (physical) of drip is required for Mulbery plantations. (ii)In view of the increased labour costs and cost of production, mechanization of farm operations has to be encouraged. (iii)Banks are required to be pro active in financing Sericulture Farm sector activities. (iv)Price stabilization measures are to be taken up by Government.

Critical issues which affect realization of potential& interventions required to create a definitive impact are as under Horticulture  Arrangements have to be made for adequate and quality planting material keeping in view the rising demand.  Marketing infrastructure may be strengthened by organising more ’Rythu Bazars’  Creation of processing facility in the district for Sweet Orange and Mango would go along way in ensuring remunerative prices to the farmers and also avoid wastage.

A. Banks  Banks in close coordination with the Horticulture Departments prepare area development plans for development of wasteland with suitable horticulture crops.  Banks to support dryland horticulture and appropriate medicinal and aromatic crops in consonance with potential of these crops. B. Development Depts. of Govt..  Strengthen the nurseries to meet the demand for plant material.  The acreage and production/ productivity of horticulture in the district has to be increased through land productivity augmentation and also requisite mechanization.

PLP 2016-17 Ananthapuram

Sericulture

Banks /Development Depts. of Govt.. Promotion of Mulberry Plantations with V-1, Promotion of Bivoltine strains of silk worms, Intensive rearing with 8-10 crop cycles per year, Propagation of Improved Rearing Technology, Promotion of Chawki Rearing Centres (CRCs) etc., have to be promoted through sustained campaign by the Department and other stakeholders.

3.1.5 FORESTRY AND WASTELAND DEVELOPMENT

3.1.5.1 Introduction

In Ananthapuram district, out of the total geographical area of 19,13,000 ha, the area under forest is 1,98,931 ha., which is 10.39% of the geographical area which is far below the State average of 23.2%. Of the total forest area 1,93,746 ha is Reserve Forest, 1467 ha is Protected Forest and 3718 ha is Un classified Forest. The total Forest area is spread over 110 distinct Forest blocks. About one third forest area is covered with barren hillocks and very steep slopes and hence not available for development/ afforestation. About 73000 hectares (36.98% of total RF) of Reserve Forest land is classified as degraded forest land. The degraded forest areas in the district suffer due to lack of moisture and natural regeneration; nevertheless, there is another promising area for forest development in the form of wasteland. The extent of wastelands available for new forest development is 324134 ha and it falls under various categories such as gullied and / or ravinous land, upland with or without scrub, land affected by salinity/alkalinity/ underutilized degraded notified forest land, degraded pastures grazing land, mining/industrial wastelands, barren rock/ stony waste/ sheet rock area and steep sloping area.

The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `.16 lakh, `. 2 lakh and `.234 lakh respectively, indicating poor credit flow under the sector. This was on account of lack of incentives and special schemes to the entrepreneurs interested in wasteland development.

3.1.5.2 Assessment of exploitable credit potential for 2016 -17 The potential for the year 2016-17 has been re-assessed vis a vis base PLP 2012-13 to 2016- 17, taking into account the infrastructure and support services available and the same is given in the table below. (`. lakh) Activity Unit (No. Base PLP(2016-17) Revised (2016-17) /Area) Phy Fin. Bank Phy Fin. Bank Units Outlay Loan Units Outlay Loan

Development of Nurseries of No. 20 60.00 48.00 25 96.25 81.81 Forest sps Farm forestry – Eucalyptus ha 125 72.25 57.80 300 193.71 164.73 clonal plantation Wasteland Development Subabul plantation ha 175 116.03 92.82 200 145.86 123.93 Bamboo plantation ha 65 28.34 22.67 175 83.93 71.40 Neem plantation ha 75 37.50 30.00 200 110.00 93.50 Total 314.12 251.29 629.75 535.37

PLP 2016-17 Ananthapuram

3.1.5.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed

a) The existing forests are mostly located around Kadiri (east and west), Bukkapatnam, Penukonda. b) The forest lands can be developed through Government/NGO involvement and this approach is being followed in respect of forest lands which are being developed through public funding under Joint Forest Management (JFM) under APFP, RIDF etc. c) Watershed approach is followed for wasteland development by selecting appropriate species as per the land capability. d) (iv)The Forest Department had taken up 700 ha plantation of Pongamia in degraded forest lands under RIDF X. Under RIDF XI, 408 ha., under RIDF XII, 404 ha., and under RIDF XIII, 182 ha., wasteland development was taken up. e) The Forest department has done new plantations in 927.10 ha and 720.19 ha in 2013-14 and 2014-15 respectively and has planned for 735.0 ha plantation in 2015- 16. f) The Department has regularly undertaking social forestry plantation both avenue plantation and block plantation and also supplying seedlings to the public from the nurseries established and maintained by it. g) The Department has established 26 Nurseries located with a total capacity of 22,75,000 seedlings per annuum. h) There are 281 Vana Samrakshana Samitis formed and working under the Forest department and 63835 ha of forest land was allotted to VSSs for conservation and development. i) (ix)DWMA has plan to support regeneration and afforestation in the ridge areas of the watershed and also other common lands (CPRs). j) (x)NABARD provides 100% refinance facility for all the banks for Wasteland development projects (Forest & Non-Forest Wastelands).

Infrastructure Gap: (i)Shortage of planting material (ii) High cost of raising forestry saplings and lack of demand from general public discourages the entrepreneurs (iii) Poor survival of forestry plantations taken up under various public sponsored programmes on account of lack of allocations for watering.

Critical issues which affect realization of potential& interventions required to create a definitive impact are as under:  Linkage between bankers, growers and users in the district.  Large scale plantation under contract farming or under captive plantation with assurance to buy back the production by companies. Action Points for Banks /Development Depts. of Govt.  Adequate awareness among banks has to be created for extending credit for commercial nurseries, farm forestry and agro-forestry.  Tree borne oil seeds like jatropha, neem and pongamia may be promoted which have got tremendous potential to produce non-edible oil. It will also help in recovering a large area of waste lands and create significant employment opportunities.  Forest department can promote development of commercial plantations/ productive green belts under public sponsored programmes as well as under PPP

PLP 2016-17 Ananthapuram

mode wherein Forest department can facilitate earning of carbon credits by the private partner.  The Forest Department can come up with a plan for production/ sustainable collection of various herbs, processing unit establishment and marketing of the products.

3.1.6 ANIMAL HUSBANDRY – DAIRY DEVELOPMENT

3.1.6.1 Introduction

Dairy activity is the second most important economic activity after agriculture in the district and is undertaken by all categories of farmers. The Vision 2020 document of the Department envisages a compound growth rate of 7.83% in milk production and 5.27% in per capita milk consumption. The district had achieved 4.82 lakh M.Ts. and 6.23 lakh M T of milk production in 2013-14 and 2014-15 (estimated figures) respectively and has a target of 7.20 lakh M.T.s for 2015-16. Buffaloes accounted for nearly 80% of the district milk production. The average yield based on animals in milk is 3.451 kgs/ day as against state average of 5.133 kg/day. Cows and buffaloes accounted for 39% and 61 % of the total milk production , respectively. As per Livestock census 2012, there are 6.172 lakh cattle and 3.711 lakh buffaloes in the district. Total female breedable milch animal population is 4.743 lakh comprising of 2.188 lakh buffaloes and 2.553 lakh cattle. The CB cattle account for 26% of total cattle population in the district. Estimation of potential for 2016-17

Particulars Indigenous GMBs Cross Calf Cows Bred rearing Cows (CBCs) Number of milch animals as per 2007 217942 304922 55564 __ census – above three years Female breedable population for the year 251832 386794 91014 __ 2012-13 @63.8% growth for CBC, 15.55% for Ind. Cows, 26.85% for GMB. Addition of milch animals based on past 96475 410001 98295 __ trends/estimates Good quality animals 50% of c 16079 68334 49147 __ No of animals in milk -60% of d 8040 37739 29488 __ No of animals in up to 3rd lactation- 50% 4824 22644 14744 __ of e Number of animals available for bank 1636 13973 9812 4297 finance during 2016-17(60% for GMBs, 15% for local buffaloes, 50% for CB Cows and 15% for indigenous cows of item f) Animals to be bought from outside the NA NA 6992 NA state

The estimated good quality animals for bank finance for the year 2016-17 works out to 1636 indigenous cows, 9812 CB cows and 13973 buffaloes.

The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `. 5270 lakh, `. 1235 lakh and `. 8712 lakh respectively.

PLP 2016-17 Ananthapuram

3.1.6.2 Assessment of exploitable credit potential for 2016 -17 The potential for the year 2016-17 has been re-assessed vis a vis base PLP 2012-13 to 2016- 17, taking into account the infrastructure and support services available and the same is given in the table below. (`. lakh) Activity Unit Base PLP(2016-17) Revised (2016-17) (No. Phy Fin. Bank Phy Fin. Outlay Bank Loan /Are Units Outlay Loan Units a) Traditional CBC 8 LPD (1+1) No. 8000 6272 5644.80 1000 1043.00 938.70 SHG mode of finance - CBC No. 7102 7407.39 6666.65 8 LPD (1+1) GMB 6 LPD (1+1) No. 500 381.50 343.35 400 434.40 390.96 SHG mode of finance - GMB No. 2000 2172.00 1954.80 6 LPD (1+1) Mini Dairy - CBC 5 (3+2) No. 325 786.50 707.85 100 298.50 268.65 Animals Mini Dairy - GMB 5 (3+2) No. 200 619.00 557.10 Animals Mini Dairy – CBC 10 (5+5) No. 80 381.92 343.73 10 62.55 53.17 Animals Mini Dairy – GMB 10 (5+5) No. 60 388.50 330.23 Animals Emerging Female calf rearing No. 28 5.30 10 2.78 2.50 Gopalmitras No. 50 22.50 30 15.75 14.18 Milking machines No. 132 118.80 10 10.50 9.45 Fodder cultivation No. 2123 328.63 7500 1357.50 1357.50 Total 7821.92 7514.96 13811.87 12543.88 Depending on the nature of activity and the Unit Cost, the bank loan portion is in the range of 85%(for Mini Dairy) to 100%(for Fodder cultivation) of the respective Unit Cost. In respect of the two animal units, calf rearing, motor bikes for gopala mitras, automated milking machines the bank loan is reckoned @90% of the Unit Cost.

It is estimated that about 175 units of two animals size (125 CBC & 50 GMB) with bank loan of `. 117.15 lakh could be financed under Department schemes under state plan.

The BMCUs and Integrated dairy units projected earlier under this chapter are since shifted to the chapter on agri infrastructure .

3.1.6.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed : The Department of Animal Husbandry (DOAH) provides veterinary health services through one Veterinary Polyclinic at Hindupur, 16 veterinary hospitals at the erstwhile block head quarters, 110 veterinary dispensaries, 61 rural live stock supervisory units, 3 rural and Mobile Veterinary clinics. In all the AHD have 191 Veterinary Institutions and 202 Gopalamitras. Joint Director of Animal Husbandry supported by sixteen Assistant Directors, 86 Veterinary surgeons, 90 Junior Veterinary Officers/ Vetrinary Assistants/ Livestock Inspectors placed at various locations is the manpower available with the Department. There is a vacancy of 32 Veterinary Asst. Surgeon posts in the district.

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Breeding Facilities : 175 AI centers under government sector and 202 gopalamitras and 20 JK Trust and 5 BAIF Mobile AI Centre ( total of 402 centres) are undertaking AI. During 2014-15, 208482 AI undertaken against the target of 2,05,600 with a conception rate of 44.9%. The Department has a target of 256600 AI during the year 2015-16. The number of AI centers required to achieve the norm of 1 AI center per 1000 breedable animals is 474 where as the existing are 402 leaving a gap of 72 AI Centres.

There is a Animal Disease Diagnostic Center (ADDC) located in Ananthapuram.

The Andhra Pradesh Dairy Development milk producers Co-operative Federation Limited (A.P. Dairy) is has two milk chilling plants (Anantapur and Hindupur) with a handling capacity of 1.25 lakh liters per day. The dairy operates through 80 milk routes covering 1043 milk collection centers. There are 40 bulk milk chilling/cooling Units and 5 mini bulk chilling/colling units with total handling capacity of over 1.00 lakh liters per day. The procurement during 2014-15 stood at 4.81 lakh litres. Besides A.P. dairy, there are two units under private sector with a milk handling capacity of nearly 60000 liters per day. They have more than 300 milk collection centres. M/s Gayathri Dairy Ltd. completed its modernisation and expanded its handling capacity for which NABCONS had conducted a feasibility study. Gemini Dairy has also started procuring milk. Dairy processing centres from other districts are also operating in the district.

The area under permanent pastures and other grazing lands is 8952 ha (0.47% of total geographical area). The availability of fodder is estimated at 24.70 lakh MT for the year 2014-15 as against requirement of 27.77 lakh MT for total livestock units leaving a gap of 304696 MT which has to tackled through multi area approach. The area under fodder production (PC-23, jowar, CO-1,CO-III, red napier etc.) stood at 1339 acres with 1.7 lakh MT of fodder. The Department is regularly arranging the supplies in the summer season camps to tide over the fodder shortage. Grass seed and perennial fodder rooted slips/ cuttings are also being supplied. There are 15 feed mixing plants in the district. Chaff cutters are being supplied at 75% subsidised prices; milk testing equipments are being supplied; vaccination, preventing measures, mineral mixture, deworming drugs, calcium, magnesium, etc., feed supplements are in place, animal insurance, etc., facilitation is also arranged.

There are 11 shandies in the district and cattle fairs are held on a weekly basis. Animals are also available in Bellary district. Pure Murrah buffaloes are bought from Punjab and Haryana. Graded murrah buffaloes are purchased from coastal districts of AP. Cross-bred cows are mostly purchased from Punganur in Chittoor district, Bagepalli, Kolar and Bangalore of Karnataka State.

Department of Animal Husbandry, Dairying and Fisheries (DAHD&F) GoI has continued the scheme “Dairy Entrepreneurship Development Scheme” in 2015-16 for SC beneficiaries only and it is likely to continue in the remaining one year of XII FYP. The components of the scheme, unit cost and pattern of assistance and other norms are given in Chapter – 2 : Government sponsored schemes. Under RIDF XIV, an amount of `. 249.50 lakh was sanctioned for strengthening of 27 veterinary units. Another 150 veterinary units (dispensaries, ploy clinics, hospitals, training establishments) were sanctioned under RIDF XVIII & XIX.

Infrastructure Gap : The vacancy of 32 Veterinary Asst. Surgeon posts in the district needs to be filled up. The gap in 72 AI centres needs to be bridged.

PLP 2016-17 Ananthapuram

Critical issues which affect realization of potential & interventions required to create a definite impact are as under :  Dairy loans to be encouraged on a cluster basis with tie up arrangements involving Milk Cooperative Societies and milk shed areas surrounding BMCUs

Action Points :

(a) Dept. of Animal Husbandry a) The vacancy of 32 Veterinary Asst. Surgeon posts in the district needs to be filled up. The gap in 72 AI centres needs to be bridged b) The department should endeavor to increase area under fodder crops particularly encouraging fodder cultivation in watershed areas in association with NGOs. Apart from promoting fodder grasses and legumes in irrigated plots, there is greater need for popularizing rainfed grasses/ legumes. There is acute shortage of seed of fodder species. There is need for mass multiplication of fodder seed in State owned farms as well as through progressive farmers on buy-back mode. c) The Department may establish Fodder banks to stock the fodder meet the needs during shortage d) Under NREGA Village ranges and grass lands are required to be regenerated. The Community Property Resources (CPRs) such as foreshore areas of village tanks and foot hill region of revenue lands have to be converted into Community Fodder Plots so that resource poor and the landless households also can take up Dairy as livelihood activity.

(b) Banks a) Various financing agencies should build the capacity of their branch managers so as to take proactive steps for financing innovative investments under dairy sector for enhancing the ground level credit flow. b) Gopalmitras have to be provided bank loans for purchasing two wheelers so as to facilitate easy mobility to villages.

3.1.7 ANIMAL HUSBANDRY – POULTRY DEVELOPMENT

3.1.7.1 Introduction

Poultry provided cheaper source of animal protein through eggs and meat. As per Livestock census, 2012, the poultry population was 15.89 lakh (2.0 lakh commercial layers and 2.24 lakh commercial broilers ) in the district. The egg production in the district is estimated at 2188 lakh numbers for the year 2014-15. Poultry accounts for 37.4% of total meat production in the district. National Institute of Nutrition has recommended per capita consumption of 180 eggs per year i.e. 0.5 egg/person/day. However, the per capita availability of eggs is low at 53 eggs per year in the district.

The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `. 698 lakh, `. 49 lakh and `. 124 respectively, indicating a decreasing trend. There is limited entrepreneurship under poultry sector in the district due to high cost of production and limited net returns etc..

PLP 2016-17 Ananthapuram

3.1.7.2 Assessment of exploitable credit potential for 2016 -17 The potential for the year 2016-17 has been re-assessed vis a vis base PLP 2012-13 to 2016- 17, taking into account the infrastructure and support services available and the same is given in the table below.

(`. lakh) Activity Unit Base PLP(2016-17) Revised (2016-17) (No. Phy Fin. Bank Phy Fin. Bank /Area) Units Outlay Loan Units Outlay Loan (lakh) (lakh) (lakh) (lakh) Contract Broiler farming – No. 160 448.00 403.20 450 796.95 717.26 1000 Birds Independent Broiler units No. 30 420.00 315.00 44 774.40 696.96 – 5000 Birds Commercial Layer – 1000 No. 20 76.00 68.40 0 0 0 Birds Commercial Layer – 5000 No. 5 100.00 75.00 0 0 0 Birds Commercial layers – 50000 No. 1 230.00 172.50 3 816.75 612.56 birds Feed mixing units No. 5 80.00 60.00 5 88.00 74.80 EMU Birds Units* No. 5 150.00 112.50 0 0 0 Mother unit of backyard No. 2 2.72 2.31 0 0 0 poultry Poultry working capital No. 60 240.00 240.00 5 77.00 77.00 Chicken processing & No. ------10 22.00 22.00 marketing units Total 1746.72 1448.91 2575.10 2200.58 *Considering the present constraints no projection has been made for emu farming.

Depending on the activity 75 to 90% of the respective unit cost and the entire amount of net working capital gap is reckoned as the bank loan portion.

3.1.7.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed a) The district is dependent on outside for supply of Day Old Chicks (DOCs). DOC for commercial layers and broiler chicks are procured from hatcheries at Hyderabad, Chittoor, Bangalore and Chennai. b) Big Commercial layer farmers usually have their own feed plant to manufacture feed. Poultry feed and feed ingredients are available in local market. Eggs /cull birds are sold through traders. Hatcheries supplying the DOCs are providing vaccination and other health care support for the commercial layers and broilers, besides Animal Husbandry Department and private consultants. c) The area under maize is insignificant, a major feed ingredient in economising the cost of production in layer units. Presently poultry farmers are purchasing maize from Karnataka. A positive sign is that, of late area under Maize (both irrigated and rainfed) is showing increasing trend in the district.

Action Points for Dept. of AH & Banks (i) Progressive entrepreneurs are required to be motivated for taking up Poultry enterprise with institutional credit in coordination with Hatcheries and Integrators. (ii)Training of the beneficiaries to enable them to manage the poultry farms on scientific lines which is an essential prerequisite for profitable poultry farming 39

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(iii) Area under Maize has to be increased that would in turn lead to establishment of feed mixing units and improving viability of poultry units. (iv) Department may prepare plan to encourage, back yard poultry with improved birds, among SHGs. (v)To be pro active in financing poultry units of small holders under contract farming mode. (vii) To finance for working capital requirement of existing units and also to promote establishment of more number of poultry feed mixing units.

3.1.8 ANIMAL HUSBANDRY – SHEEP, GOAT AND PIGGERY 3.1.8.1 Introduction

Sheep and goat rearing can be taken up advantageously as the district has suitable climatic conditions. The population of sheep, goat and pigs as per the livestock census (2012) is 38.798 lakh, 7.852 lakh and 0.0.218 lakh, respectively. The district is number one in terms of sheep population in the state (28.6 % of total state population). Piggery is on a low profile. The meat production in the district is estimated at 34130 MT (8.3% of state meat production) for the year 2014-15. Sheep and goats account for nearly 50% of meat production in the district. The per capita availability of meat in the state is about 9.73 kg per annum against the recommended consumption of 11 kg per annum (30 gm per day). This indicates that there is tremendous potential for encouraging sheep rearing, which contributes significantly for meat production, with credit support.

The population of the professional sheep rearing communities account for 6.8% population of the district. The Nellore Brown sheep breeds constitute about 35% of total sheep population and are used for mutton purposes. Bellary breed of sheep exists in the erstwhile taluqs of Raydurg, Kalyandurg, parts of Anantapur, Urvakonda, Hindupur, Madakasira and Penukonda. Good numbers of women in the SHGs are starting small units as they are credit linked to the banks. Some of the shepherds and farmers also undertake Ram lamb fattening units. The estimates of availability of sheep and goat for bank finance shows a potential of about 89,277 Goat and 1,52,652 sheep. The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `. 2199 lakh and `. 587 lakh and `. 4947 lakh respectively, indicating an increasing trend. 3.1.8.2 Assessment of exploitable credit potential for 2016 -17 The potential for the year 2016-17 has been re-assessed vis-a-vis base PLP 2012-13 to 2016-17, taking into account the infrastructure and support services available and the same is given in the table below. (`. lakh) Activity Unit Base PLP(2016-17) Revised (2016-17) (No. Phy Fin. Bank Loan Phy Fin. Bank Loan /Area) Units Outlay Units Outlay

Sheep breeding units – No. 1450 1242.65 1118.39 2000 2448.00 2203.74 Nellore breed 20+1 SHG mode : Sheep No. 4500 5508.00 4958.42 breeding units – Nellore breed 20+1 JLG mode : Sheep breeding No. 500 612.00 550.94 units – Nellore breed 20+1 Sheep breeding unit – No. 150 225.00 202.50 ------Nellore breed 40 +2

PLP 2016-17 Ananthapuram

Goat breeding unit – No. 100 109.50 98.51 Osmanabadi 20+1 SHG mode : Goat breeding No. 50 54.75 49.25 unit – Osmanabadi 20+1 JLG mode : Goat breeding No. 50 54.75 49.25 unit – Osmanabadi 20+1 No. Sheep breeding units – No. 5 125.00 93.75 5 137.50 103.13 500+25 Ram lamb fattening units No. 300 149.40 134.46 1000 702.00 631.62 (SHG mode) Goat rearing unit 20+1 No. 35 29.82 26.84 30 36.39 32.76 Piggery – Breeding Unit – 3 No. 5 3.90 3.51 50 42.90 38.61 +1 Piggery – Breeding Unit – No. 2 3.57 3.03 10 19.62 17.66 10 +1 Piggery – Fattener unit No. 10 2.72 2.45 30 8.97 8.08 Stall fed Goat rearing unit No. 2 6.00 4.50 3 18.15 14.52 100+4 Meat shop/ Salughter No. 15 24.00 18.00 15 57.75 49.09 house Total 1812.06 1607.42 9810.28 8803.92 It is estimated that about 500 units of 5+1 size with bank loan of `. 75.0 lakh could be financed under Department schemes under state plan. Depending on the activity, 75 to 90% of the respective unit cost is reckoned as the bank loan portion.

3.1.8.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed

There are two sheep supervisory units, 38 sheep growers cooperative societies and 239 sheep breeders cooperative societies for promoting the sheep rearing activities. With a view to produce high pedigree Nellore Brown rams were distributed earlier among the sheep breeders. In order to upgrade the local sheep, 305 Nellore Brown sheep are maintained at Multiplication Farm, Siddarampuram and sheep farm, Penukonda. improved/ indigenous breed bucks and rams are supplied to farmers from Penukonda Farm for breeding purpose. Farmers need to be encouraged to establish open nucleus flocks to produce quality breeding rams. An Asst. Director with two Veterinary Asst. Surgeons look after sheep and wool demonstration units and 13 sheep extension centers existing in 8 mandals. The Department is cultivating 281.3 acres of land for fodder cultivation for distribution of fodder slips free of cost to the farmers. Fodder can be grown in the areas covered under Watershed areas where there is a specific allocation for fodder development. The district has about 52819 acres of cultivable waste, 1.43 lakh ha current fallows and 0.84 lakh ha other fallows. Low productivity of the stock, unscientific rearing of the sheep and market approach are major problems. Training may be given to shepherd youth as also SHG members on the lines of Gopal Mitras to provide improved health services. The district has a mini slaughter house and there are 11 other recognized slaughter houses. There is a need to modernise slaughter houses at municipal and major panchayat levels in the district.

PLP 2016-17 Ananthapuram

Action Points (a) Dept. Of AH (i)The department may make more efforts to encourage pasture development and create awareness on preventing forest fires. (ii) SHGs may be encouraged to take up semi-stall fed goat rearing which is very much suitable for them. (iii) The Sheep Breeders Coop societies could be involved on a selective basis for promoting area based scheme for sheep rearing

(b) Action points for banks (i)Banks may finance sheep rearing activity in a big way, preferably to the traditional shepherds, SHG women, small & marginal farmers preferably in JLG mode. (ii)Banks may extend loans for establishment / modernisation of slaughter houses

(c) Insurance agency: Procedure involved in insurance of animals and the claim settlement may be simplified so that the beneficiaries are not put to hardship. The district has a mini slaughter house and on an average 240 sheep/ goat are slaughtered daily.

3.1.9 FISHERIES DEVELOPMENT

3.1.9.1 Introduction

In Ananthapuram district, inland aquaculture and capture fisheries provide gainful employment opportunities to rural poor apart from providing the cheapest animal protein. Per capita fish consumption works out to 1.03 kg per annum against the recommended level of consumption of 11 kg. There are four major reservoirs in the district i.e., Mid Pennar reservoir, upper ennar reservoir, Bhairavani Thippa Project and PABR (Pennar Ahobilam Balancing Reservoir) project with water spread area (WSA) of 7,168 ha. All these reservoirs are under the control of the Fisheries Department. There are 325 MI tanks under the control of Fisheries Department for the purpose of development and disposal of fishery wealth. There are 11 seasonal tanks with total WSA of 4592.73 ha for fish culture, out of which 1130 ha is under fish farming. All the tanks are being disposed for one fasli year only i.e., from July to June next year. The societies working here are taking up culture of carps. Major fishes grown are Catla, Rohu, Mrigala and Common carp. Major fishes captured in the district are Murrel, Prawn, Wallago attu, Labeo calbasu, Labeo fimbriatus, Cirrihinus reba, barbus etc. Cast nets and gill nets are used in the reservoirs to catch the fish and the coracles are used for conveyance. Fish Production in the district during last 3 years i.e. 2012-13, 2013-14 and 2014-15 was 3547 MT (`.17.74 crore)., 4996 MT (`.24.98 crore). and 5447 MT (`.27.24 crore) respectively. The targeted fish production for 2015-16 is 6984 M T. There are only seasonal rivers like, Penna, Chitravathi, Hagari, Jayamangali, Papagni, Kushavathi, Swarnamukhi, Maddileru, Pandameru are flowing in the district. The villages adjoining these rivers have scope for fish culture in ponds.

At present there are 50 fish ponds located in various parts of the district. Of that 17 fish ponds namely Gandlaparthi – 8.00 ha in Rapthadu mandal, Kattakindapalli – 1.00 ha, Nagalapuram – 3.00 ha, Yerraguntla – 0.75 ha, Pamurai – 2.00 ha, Krishnapuram – 3.80 ha, Muttavakunta – 1.00 ha, Garudapuram – 1.00 ha, Devendrapuram thanda – 0.50 ha, Obulapuram – 1.00 ha, Muttala – 0.50 ha, Kuderu – 1.00 ha, Sajjaladinne – 1.00 ha are

PLP 2016-17 Ananthapuram being used for fish culture. There is a potential to construct about 36 more ponds in these areas, Rapthadu having highest potential of 13 ponds.

There are 84 Fishermen Cooperative Societies and 4 Fisherwomen Cooperative Societies in the district. Of these, only 12 societies are functioning.

The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `.35 lakh, ‘nil’ and ‘nil’ respectively, indicating poor credit flow to this sector. This is on account of recurrent drought like conditions, uncertainty of water inflows and production risks associated with the activity. In view of that bankers are also not very keen in extending finance to the activity. 3.1.9.2 Assessment of exploitable credit potential for 2016 -17 The potential for the year 2016-17 has been re-assessed vis-a-vis base PLP 2012-13 to 2016-17, taking into account the infrastructure and support services available and the same is given in the table below: (`. lakh) Unit Base PLP(2016-17) Revised (2016-17) Activity (No./ Phy Fin. Bank Phy Fin. Bank Area) Units Outlay Loan Units Outlay Loan Inland fish farming ponds Ha 55 148.50 133.65 55 163.35 130.68 (new) Nets and Boats No. 225 33.75 30.38 225 42.57 34.05 Working capital – No. 45 45.00 45.00 50 50.00 50.00 Fishermen Societies Fresh water prawn culture Ha 12 17.64 15.88 15 24.25 19.40 Total 244.89 224.90 280.17 234.13 80% of the unit cost of various activities and the entire amount of net working capital gap is reckoned as the bank loan portion.

3.1.9.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed

Particulars Requirement Available + Planned Gap Manpower Adequate manpower available Extension services Being provided Water quality testing This service is rendered by Soil &Water testing laboratories of agriculture department Fish Seed Farms 450 lakh 450 lakh Nil (capacity - seedlings nos.) Fish Feed mill 2 0 2 Other production infrastructure Being provided Organised Market yards 5 1 4 Fishermen/ Women Coop Societies 83(79+4)

Infrastructure gap

a) There are no marketing facilities and insulated vehicles are required to transport the fish during peak harvesting season. b) There is only one fish stall located at Rythu bazar, Anantapur. There are un- organised markets at Anantapur, Dharmavaram, Hindupur, Guntakal, Gooty and Rayadurg. c) There are no separate feed mills pertain to fish culture.

PLP 2016-17 Ananthapuram

Action Points  Fisheries Department may identify potential pockets for financing and facilitate financing.  New Fish farm ponds may be created under MGNREGA scheme and ownership may be accorded to a group of fishermen so that it would provide them a sustainable livelihood.  The fishermen cooperatives may be provided with entire range of services including the arrangements for marketing of the product so that there will not be any income leakages.

3.1.10 AGRICULTURE – OTHER ACTIVITIES 3.1.10.1 Introduction

As per livestock census 2012 there are 184593 male cattle (above 3 years) and 222770 young cattle available in the district, indicating a potential to finance 875 bullock pairs per annum. Small and marginal farmers still prefers farm transport through bullock carts only. While local carts are reducing in numbers pneumatic carts enjoy the farmers’ preference. Apart from bullocks and bullock carts micro loans given to SHGs for unspecified agricultural purposes, loans to farmers under distress & indebted to money lenders and loans to small & marginal farmers for purchase of land for agricultural purposes are included now in this chapter.

The trends of the credit flow under this sector are not readily available as it has been clubbed with animal husbandry sector & certain other heads, while reporting by banks.

3.1.10.2 Assessment of Credit potential for 2016-17 Taking into consideration the availability of infrastructure and support services, the exploitable potential during 2016-17 has been assessed as follows:- (`. lakh)

Base PLP(2016-17) Revised (2016-17) Unit Activity Phy Fin. Bank Phy Fin. Outlay Bank Loan units outlay Loan Units Plough bullocks No. 500 150.00 135.00 100 39.60 35.64 (pair) – non descript Plough bullocks No. 400 200.00 180.00 300 198.00 178.20 (pair) – Hallikar Bullock carts – Pneumatic No. 250 91.00 81.90 1000 472.00 424.80 Bullock carts – Local cart No. 200 85.80 77.22 100 40.00 36.00 SHG micro loans to No. - - - 2587 25875.00 25875.00 unspecified agril. purposes 5 Loans to distressed farmers No. - - - 1000 500.00 500.00 indebted to money lenders/ debt swapping Loans to small and marginal No. - - - 100 200.00 180.00 farmers for purchase of land for agricultural purposes Total 441.00 396.90 27324.60 27229.64 The bank loan portion is 100% in respect of debt swap & micro loans to SHGs and whereas other activities it is reckoned at 90% of the respective unit cost.

PLP 2016-17 Ananthapuram

3.1.10.3 Infrastructure and Linkage support – Availability, Planned and Gap

Due to shortage of fodder and lack of work for a major part of the year under rainfed conditions, farmers are selling the male calves within a week of birth. However, availability of work animals is not a constraint for the units which can be financed by the banks. Availability of bullocks is 10000 against the requirement of 3620 bullocks for the small farmers.

Good quality bullock-carts are made within the district. Training, subsidy and credit assistance is provided to a number of carpenters under various Government Programmes.

The Animal Husbandry department through its field institutions, as indicated in dairy sector, is providing the requisite health cover to the animals.

Declining wood resources, lack of awareness about the tyre carts and inclination towards farm mechanisation under group concept are major constraints in financing the bullocks and bullock carts.

Micro loans given to SHGs for unspecified agricultural purposes: There is a tendency amongst SHG members availing micro loans through SHG mode and use it for various agricultural purposes and hence there is need for recognizing the fact and put it in the appropriate category for credit planning and also for reporting purposes, by the bankers.

Loans to farmers under distress & indebted to money lenders : Due to recurrence of natural calamities – drought, flood etc., farmers loose entire crop and they end up with nothing to pay back the loans taken up by them on the other hand they require to invest afresh. Similarly farmers who avail loans from money lenders at a very high rate of interest could not repay the same as the returns from their livelihood are hardly sufficient to meet the basic needs and yet again require fresh borrowing to pursue the livelihood activity and thus end up in debt trap. Institutional credit should be made available on such occasions and to such persons. Loans to small & marginal farmers for purchase of land for agricultural purposes: Small and marginal farmers with their non – viable land holdings often feel desperate to increase size of their holding by purchasing an additional bit of land by availing by availing bank loan may have to be supported so that they would get an opportunity to make a decent living out of the land based activity.

Critical issues which affect realization of potential & interventions required to create a definitive impact are as under:  Carpenters are to be trained for manufacturing of tyre carts  Male buffaloe calf rearing needs to be encouraged for production of good quality draught animals.  There is a need for an integrated mechanism of indemnifying the farmers against crop loss during calamities and also fresh financing. Action Points for Banks & Development Departments of Government  Systematic campaign for promotion of bullock driven tyre carts should be initiated.  A scheme involving health care services, quality feed and fodder provisions, pro active financing may be devised to promote use of draught animals for various farm power requirements.  JLG mode of financing may be followed while financing farmers under distress and persons with high indebtedness.

PLP 2016-17 Ananthapuram

3.2 AGRICULTURE INFRASTRUCTURE

3.2.1 Construction of storage facilities including cold storage units/ chains

3.2.1.1 Introduction

Marketing of agriculture produce in a proper way is single most important determinant of the profitable agriculture and economic well being of the rural poor. The farming community is required to be safeguarded against distress sale on account of price drop during the time of glut in market at harvest time. Setting up of scientific storage godowns for safe storage of food grains and other farm produce and cold storage units for perishables is the only solution to ensure remunerative price to farmers and also enhance the shelf life of fruits and vegetables and to make available these products during the off season to the consumer. The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `. 592 lakh, `. 1384 lakh and `. 72 lakh respectively, indicating mixed trend. 3.2.1.2 Assessment of exploitable credit potential for 2016 -17 The potential for the year 2016-17 has been re-assessed vis-a-vis base PLP 2012-13 to 2016-17, taking into account the infrastructure and support services available and the same is given in the table below: (`. lakh) Base PLP(2016-17) Revised (2016-17) Activity Unit Phy Fin. Bank Phy Fin. Bank Units outlay Loan Units outlay Loan Cold storage units of 2000 M T No. 1 200 150.00 9 1080.00 810.00 capacity @ 6000/- per M T Godowns of 1000 M T No. 80 1000 750.00 55 1925.00 1443.75 capacity23500/- per M T Ground nut decorticator No. 475 950 712.50 - - - Seed processing unit No. 4 200 150.00 - - - Agriculture Marketing No. - - - 5 33.00 24.75 Infrastructure – Misc., Weigh bridges etc.. Bulk Milk Cooling Unit (BMCU) No. - - - 5 63.00 53.55 Integrated Dairy – procurement & No. - - - 3 551.25 413.44 processing 20000 lpd capacity Total 2350 1762.50 3652.25 2745.49 For Bulk Milk Cooling Unit(BMCU) the bank loan portion is 85% of the unit cost where as other activities it is reckoned at 75% of the respective unit cost.

3.2.1.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed

Assistant Director, Agricultural Marketing is looking after the Market Yards. Market Committees have been constituted. The total agricultural production in the district is about 1053000 MT. Bengalgram is grown on a large scale in the district in rabi season in Guntakal, Tadipatri, Yadiki, Yellanur, Putlur, Pedda Vadugur, Pamidi, Gooty, Uravakonda, Vajrakarur, Vidapanakal, Kanekal & Bommanahal mandals. Similarly there is good amount of production of tamarind and chillies also in the district.

The demand for the services of storage godowns and market yards varies with the marketable surplus and arrivals at the mandi which in turn depending on various other factors. The arrivals of various agri produce (Paddy, G Nut pods &seeds, bengal gram, maize,

PLP 2016-17 Ananthapuram sunflower, redgram, fruits & vegetables) in the market in 2014-15 was 19.67 lakh quintals and whose market value was about `. 47596 lakh. All Mandals have electricity, good road and transport network, etc. All materials for constructions of godowns are available in the district. The district has 13 Agricultural Market Committees and 7 Sub-market yards spread over 13 blocks. There are 74 godowns with a total capacity of 46590 MT. 69 Godowns with 38280 MT are under utilisation and there are 6 godowns with a storage capacity of 3760 MT are vacant. There are plans to construct two Market Yards of 5000 MT at Anantapur and Tadipatri to take care of storage of fruits & vegetable production.

Nine Rural Godowns were constructed in the district (Two each at Guntakal, Vajrakarur, Uravakonda and one each at Hindupur, Beluguppa, Tadapatri) under Central Sector subsidy scheme with a total capacity of more than 50000 MT. There are 7 cold storages in the district with 6 in Hindupur and one in Madakasira with a total capacity 3050 M. T. Considering the market arrivals and fluctuations in the market price, there is a need for additional cold storages one in each of Madakasira, Tadipatri, Anantapur and Kalyandurg. There are three Banana Ripening chambers (2 in Anantapur and one in Tadipatri) with 20 tonnes capacity per day. Potential for establishing a few more Ripening Chambers exists at Dharmavaram, Hindupur, Nayanpalli Cross near Bukkarayasamudram. Department of Marketing and Inspection, Ministry of Agriculture, GoI has been implementing the credit linked capital scheme “Integrated Scheme for Agricultural Marketing (ISAM)” clubbing the two earlier schemes namely Gramin Bhandaran Yojana (Rural Godowns Scheme) and Development of Agricultural Marketing Infrastructure, Grading and Standardisation (AMIGS). The norms of the schemes are given in the chapter-2 : Government sponsored schemes.

For the XII five year plan period (2012-13 to 2016-17) the storage gap in the district was assessed to be 2.0 lakh MT. Of that about 0.25 lakh MT was created in 2013-14 & 2014-15 and another 0.15 M T capacity is expected to be created in the current year 2015-16, the remaining 1.60 lakh is the exploitable potential in 2016-17 & beyond. Of this 50% (0.80 lakh MT) is expected to be created by public sector and the remaining 0.80 lakh M T can be by private entrepreneurs by availing bank loan. Therefore the current year exploitable potential is 0.72 lakh MT, by both public sector & private entrepreneurs.

Critical issues which affect realization of potential& interventions required to create a definite impact are as under:  All Godowns above 1000 MT capacity need to be registered with warehousing Authority after due accreditation.  Negotiable warehouse receipt system may be encouraged, as this will reduce distress sale immediately after harvest. Action Points Banks-To identify entrepreneurs who can take up cold storage / godown units to bridge the gap.

PLP 2016-17 Ananthapuram

Development Departments of Government (i)The Agriculture Marketing Department may identify suitable places for rural storage godowns and popularise the central sector schemes especially encourage the construction of small size godowns. (ii)Uninterrupted power supply and assured storage tie-ups for running the cold storage on profitable lines should be ensured, which will motivate some entrepreneurs to setup cold storage facilities. (iii) In view of the wide fluctuations in production productivity and also market arrivals in the district not many private ventures are forthcoming and hence there is a need for creation of storage and market yard infrastructure by public sector agencies.

3.2.2 LAND DEVELOPMENT, SOIL CONSERVATION AND WATERSHED DEVELOPMENT

3.2.2.1 Introduction

Of the total geographical area of 19.13 lakh ha, the degraded lands constitute 3.23 lakh ha (16.88%). While the thrust on Watershed based development continue, addressing the land productivity and on-farm water management issues require special attention in order to enhance the farm income. Major activities involved are (i) land levelling and on-farm development works in major, medium, minor commands, (ii) moisture and soil conservation (iii) integrated farm development and land development to raise plantation and horticulture crops (iv) reclamation through soil amendments and (v) production and use of organic sources of nutrients for improving soil fertility and productivity. Red soil is the predominant soil type in the district. Red and black soils occur in 76% and 24% of the total area respectively. In Kanekal, Bommanahal, Vidapanakal, Uravakonda, Vajrakarur, Guntakal, Gooty, Pamidi, Peddavadugur, Yadiki, Tadipatri, Yellanur, Peddapappur and Putlur mandals, red and black soils occur almost in equal proportion.

On Farm Development - Under RIDF assisted major and medium irrigation projects an extent of 485 ha. is assessed as the exploitable potential.

Soil Improvement by Tank silt application: There are 306 tanks with an ayacut of 41953 hectares under the control of minor irrigation department and 2351 tanks with an ayacut of 21387 hectares under the control of Panchayatraj engineering department. Banks may therefore, finance this activity mainly towards transportation of silt and application in the farm. About 2500 ha has been assessed to be the potential for tank silt application in the year 2016-17.

Reclamation of problem soils: As per the data published by the NBSSLUP - National Bureau of Soil Survey and Land Use Planning, Nagpur, the saline sodic soils constitute about 205730 ha spread over all the mandals of the district, except 18 mandals. The farmers in the district expect the State Government to extend support for land reclamation activities and therefore it is assessed that just 600 ha is likely to avail bank finance.

Production of organic manure: Vermi-composting and NADEP composting are considered to produce good quality organic manures. Considering the crops grown, it is assessed that annual requirement of compost will be about 97.50 lakh tonnes. Accordingly, about 1100 units of various sizes and capacities are expected to avail bank finance.

The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `. 587 lakh, `. 797 lakh and `.421 lakh respectively, indicating mixed trend.

PLP 2016-17 Ananthapuram

3.2.2.2 Assessment of exploitable credit potential for 2016-17

The potential for the year 2016-17 has been re-assessed vis a vis base PLP 2012-13 to 2016- 17, taking into account the infrastructure and support services available and the same is given in the table below: (`. lakh) Activity Unit Base PLP (2016-17) Revised (2016-17) Phy Fin. Bank Phy Fin. Bank Units outlay Loan Units Outlay Loan Land reclamation Ha 705 105.75 95.18 1200 198.00 178.20 Tank silt application Ha 605 98.31 88.48 5000 990.00 891.00 SMC works in the micro Ha 660 115.50 103.95 1000 363.00 326.70 catchment Land leveling Ha 1605 317.79 286.01 4000 1117.60 948.60 Farm Ponds in red soils Nos. 137 82.20 73.98 500 616.00 554.40 Farm Ponds in black soils Nos. - - - 100 178.20 160.38 Mini Farm Ponds Nos. - - - 1000 686.40 617.40 Integrated Farming System Ha - - - 200 593.20 538.88 Fencing with cement poles Ha - - - 200 51.70 46.62 Fencing with stone poles Ha - - - 100 16.50 14.85 Total 719.55 647.60 4810.60 4272.03 For various activities under land development the bank loan portion is considered at 90% of the respective unit cost. In order to accelerate the pace of capital formation in agriculture and allied sector, it is imperative that agricultural term loans should be atleast 30% of the total agricultural lending. Hence there is an increase in projections of 2016-17 over base PLP estimates. 3.2.2.3 Availability of infrastructure, critical gap & interventions required, action points/ issues to be addressed

The district has a total potential of 8.78 lakh ha treatable catchment in 16 blocks under various watershed programmes, of which an area of 2.72 lakh ha was covered earlier under DDP/ DPAP/ EAS/ APRLP. 848 watersheds covering an area of 4.19 lakh ha were identified and are in various stages of implementation. Thus the total area coverage is 6.91 lakh ha. At present 60 mega watersheds are under implementation under IWMP. Works in 28 watersheds (about 30000 ha) supported under WDF by NABARD are on the verge of completion. These watersheds are expected to provide sustainable livelihood opportunities to the farmers. Preparation of banking plan for watershed plus activities is under progress.

CLDP is being implemented in the district under RIDF IX, X, XIII, XV and XVII through DWMA. Indira Jala Prabha (IJP) is being implemented to provide equitable and judicious access to irrigation for the rural poor SC/ST households. Critical issues which affect realization of potential& interventions required to create a definitive impact are as under:  Area based schemes need to be formulated for the promotion of the land development activities particularly for problem soils reclamation. Farm pond based rainfed agriculture also has to be promoted in a big way by providing bank finance.  Inadequate attention to this sector by extension staff of the technical line departments and banking personnel are the major reasons for poor credit flow. There is need for creating awareness among the bankers about activities to be financed under this sector.

PLP 2016-17 Ananthapuram

The Irrigation Dept./APSIDC should coordinate with bankers in ensuring credit flow for OFD in the new command areas. Action Points (for Banks, Departments and Watershed implementing agencies)

 The implementing agencies like DWMA and NGOs may implement watershed programmes by involving the banking sector for meeting the credit needs for watershed plus activities  Creation of awareness among the farmers about land development activities is required to be taken up on a large scale through Watershed Committees.  The extension staff of agriculture department should do the needful to accelerate the use of compost by organising demonstrations and encouraging the farmers.

3.2.3 AGRI INFRASTRUCTURE – OTHERS 3.2.3.1 Introduction

Land productivity enhancement through use of organic manures, bio fertilizers, compost made of NADEP, vermin-culture etc., goes a long way in sustaining the production and productivity levels of crops. Further, good quality seed and plant propagules plays crucial role in realizing the potential productivity of various crops and varieties.

Therefore the bankable activities identified under agri infrastructure – others are NADEP compost making units, vermi-compost making units, Bio-fertiliser & Bio-pesticide units, Seed processing units, Tissue culture units etc.. Some of these are new and certain others were financed yet classified under a different head and hence the break-up figures of credit flow and trends are not available.

3.2.3.2 Assessment of exploitable credit potential for 2016-17 The potential for financing these activities by banks in the year 2016-17 has been assessed and presented in the following table. (`. lakh) Base PLP(2016-17) Revised (2016-17) Activity Unit Phy Fin. Bank Phy Fin. Bank Units outlay loan Units outlay loan Vermi-compost units -Tiny Nos. 825 165.00 148.50 2000 440.00 396.00 Vermi-compost units -Mini Nos. - - - 200 510.00 433.50 Vermi - Hatchery cum Nos. - - - 4 44.80 35.84 compost units NADEP compost units Nos. 138 17.19 15.47 400 55.20 49.68 Bio-fertilizer/pesticide units Nos. - - - 1 210.00 157.50 Seed processing units Nos. 4 200.00 150.00 6 600.00 450.00 Tissue culture laboratories Nos. 1 75.00 56.25 for plant propagule New activity under priority multiplication - small sector lending Tissue culture laboratories Nos. 1 150.00 112.50 for plant propagule multiplication – medium Tissue culture laboratories Nos. 1 250.00 187.50 for plant propagule multiplication - big Total 2335.00 1878.77 Depending on the nature of activity and the bank loan portion is reckoned at 75% to 90% of the respective unit cost.

PLP 2016-17 Ananthapuram

3.2.3.3 Availability of Infrastructure, critical gap & interventions required, action points/ issues to be addressed

The climate of the district is congenial for agri-input i.e., seed, plant material, manure& compost production. Compost making is normally done by the farmers themselves to meet their own requirements. There are also good number of commercial compost making units to cater to the requirements of fruit growers, vegetables cultivating farmers and nurserymen. There is one public sector bio-fertiliser/ bio-pesticide production unit managed by Department of Agriculture and there is good scope for such commercial units by private entrepreneurs. There are two tissue culture units in the district and producing about 15.0 lakh nos., of planting material mainly banana and small quantity of pomegranate and others. Critical issues which affect realization of potential& interventions required to create a definite impact are as under:  Production and use of organic inputs would form part of sustainable agriculture practices therefore the commercial units should be supported by providing capital subsidy so that the price of the inputs will be affordable to the farmers. Polpularisation of organic inputs should be done in a campaign mode  Capital subsidy for Seed processing units would go a long way in establishment of more and more units so that good quality seeds are made available that in turn helps in increase of Seed Replacement Rate (SRR) to the desirable level.

Action Points

Creation of awareness among the farmers about seeds/ plant material of good quality and high yielding crop varieties has to be done through awareness camps and field demonstrations.

The extension staff of agriculture department should do the needful to accelerate the use of compost by organising demonstrations and encouraging the farmers.

3.3 AGRI- ANCILLARY ACTIVITIES

3.3.1 FOOD AND AGRO PROCESSING

3.3.1.1 Introduction The district offers vast scope for Agro processing as it accounts for 42% of the State’s production of groundnut, 37% of total oilseeds produced in the State, 10% of Bengal gram, 15% of ragi (finger millet). Besides, it accounts for 12.84% of total production of fruits and vegetables, 46.4% of citrus, 39% of tamarind, 63.62% of papaya, 5.83% of banana, 12.52% of guava, 11.32% of marigold, 14.41% of milk and 7.4% of meat. It is also one of the major producer of pomegranate in the State.

The trends of the credit flow under this sector are not separately available and it is likely that the same has been clubbed with MSME while reporting by the banks. 3.3.1.2 Assessment of exploitable credit potential for 2016 -17 The potential for the year 2016-17 has been re-assessed vis a vis base PLP 2012-13 to 2016- 17, taking into account the infrastructure and support services available and the same is given in the table below:

PLP 2016-17 Ananthapuram

(`. lakh) Activity Unit Base PLP(2016-17) Revised (2016-17) Phy Fin. Bank Phy Fin. Bank Units outlay loan Units outlay loan Jam/ Jellies No. 10 3.00 2.70 20 20.00 15.00 Pickles No. 30 9.00 8.10 50 50.00 37.50 Squashes/ Canned juices No. 12 43.20 43.20 20 100.00 75.00 Distillation Units for No. 2 6.00 5.40 2 20.00 15.00 Medicinal and Aromatic Plants (MAPs) Aloe Vera processing No. 1 10.00 9.00 0 0.00 0.00 Agro Inputs No. 18 180.00 162.00 50 500.00 375.00 Value chain financing of G No. - - - 40 2000.00 1500.00 Nut, Maize, Bengalgram, Redgram, Jowar & Ragi AH (Milk, Meat & Eggs) No. 32 240.00 216.00 60 600.00 450.00 based units

Category-I No. - - - 50 250.00 187.50 (WC gap : upto 5 lakh) Category-I No. - - - 10 200.00 150.00 (WC gap : upto 20 lakh) Total 491.20 446.40 3740.00 2805.00 The bank loan is reckoned at 75% of the respective unit cost of various activities.

3.3.1.3 Availability of Infrastructure, critical gaps & interventions required, action points/ issues to be addressed

The National Food Processing Industries Policy provides incentives for setting up of new industries for agro processing, technology upgradation/ modernization of existing industries. The following are the potential places in the districts for establishing various food processing industries.

Fruit processing zone

Item Areas that holds potential Guava Tadipatri, Garladinne, Pamidi & Mudigubba Papaya Gooty, Guntakal, Ananthapuram, Penukonda, Madakasira, Chilamathur & Gorantla Lemon Tadipatri, Yellanur, Yadiki, Madakasira & Narpala Sweet Tadipatri, Yellanur & yadiki. Lemon Pomegranate Rayadurgam, Kalyandurgam & Madakasira

Agri-processing zones

Item Areas that holds potential Chillies Hindupur, Madakasira Tamarind Hindupur, Madakasira Rice Yellanur. Garladinne & Narpala Ground Nut Total district Redgram Total district

PLP 2016-17 Ananthapuram

Infrastructure gap

(i) Quality Power and water are a problem in rural areas. (ii) Arrangements for transfer of established technology for food processing is not in place. (iii) Absence of regular training programmes. (iv) There is lack of awareness among the public on opportunities available in Agro & food processing sector. (v) There is lack of incubation type of support for first generation entrepreneurs.

Action Points for Banks/ Development Departments of Govt: a) The single window system has to be made effective. b) The entrepreneurs under this sector need venture like support and some handholding measures such as exposure visit, project preparation, market exploration and other requisite linkages by DIC. c) In view of the small and medium farmers among the Orchard growers there is need for promoting Producers’ Organisation, pooling of produce/products, collective marketing and also processing for value addition. d) (iv)Mostly agro processing units are established in the villages where the power supply is erratic. Special consideration or dedicated lines to be given for these units as the processing is season bound. e) (v)Banks need to encourage lending to this sector as it is considered as sun rise industry. f) (vi)Marketing is the major problem especially for unregistered units as they lack standards and standardisation in product. A mother unit supplying material, technology and brand name for identical activities in a cluster need to be explored. g) (vii)Large scale opportunities exist for exporting quality products especially under agro processing. A systematic effort to tap the same by encouraging farmers to use less chemical fertilisers and pesticides or shift to organic farming, providing incentives, setting up of Agri export zones could be considered.

.3.2 AGRI ANCILLARY ACTIVITIES - OTHERS

3.3.2.1 Introduction

Prior to the revision of priority sector norms by Reserve Bank of India in April 2015, finances made to any agri- ancillary enterprise were reckoned under indirect finance to agriculture, since done away with the classification. Ancillary activity or ancillary enterprise are those that provide inputs or supporting services to a main enterprise or takes the product or by-product for processing till its end use. For instance aggregation of farm produce, primary or basic processing such as drying, cleaning, grading and packing also regarded as ancillary activity. The agencies or organizations or societies involved in such ancillary activity (ies) and avail bank loan for such operations shall also be included for potential assessment in this chapter. Agri–Clinic and Agri- Business Center (ACABC) that not only provide technical advisory services to the farmers often arrange input supplies, farm machinery is recognized as an important ancillary activity. Aggregators who undertake processing or otherwise shall be reckoned as bankable enterprise as it indirectly helps the farmer by providing market at door step.

The trends of the credit flow under this sector are not separately available perhaps it has been clubbed with certain other heads.

PLP 2016-17 Ananthapuram

3.3.2.2 Assessment of exploitable credit potential for 2016 -17 The potential for the year 2016-17 has been assessed for the miscellaneous ancillary activities. (`. lakh) Base PLP(2016-17) Revised (2016-17) Activity Unit Phy Fin. Bank Phy Fin. Bank Units outlay loan Units Outlay loan Loans to Cooperative Societies No. New activity under priority 2 200.00 180.00 for disposing of the members sector lending produce i.e., working capital for procurement Agri – Clinic and Agri- Business No. 2 40.00 36.00 2 40.00 36.00 Center (ACABC) Bank loans to PACS, FSSs, LAMPS No. New activity under priority 5 500.00 450.00 & FPOs sector lending Total 2 40.00 36.00 740.00 666.00 The bank loan is reckoned at 90% of the unit cost of various activities.

3.3.2.3 Availability of Infrastructure, critical gaps & interventions required, action points/ issues to be addressed

There have been Farmers’ collectives registered or un registered providing the services and arranging input supplies and also undertake aggregation of farm produce for collective marketing. They are normally organized, guided and provided handholding support by any facilitating agency such as NGO/ Voluntary Organization/ Contract farming agency. At present there is no policy or programme to finance the farmers’ collectives directly by commercial bank or financial institution and the facilitating agency has to play a catalytic role by offering collateral to the financing institution or the bank. Although the Banks in the cooperative fold DCCBs and Apex Co operative Banks operating in various states support ad provide finance to PACS, FSSs, LAMPS the range of activities and quantum of finance provided by them is limited.

Infrastructure gap  A net work of Agri-Clinic & Agri-Business Center (ACABC) should be established in every district so that the objective of strengthening the agricultural extension system by creating a parallel, fee based extension arm would be achieved and it also would provide gainful self-employment to graduates of agriculture and allied subjects.  PACS, FSSs, LAMPS should not confine to credit purveying agencies, they should undertake ancillary activities in the form of providing backward & forward linkages so as to better serve the members. Infact these services provide them good margins compared to credit function.  It has been proved now that SHG groups, Farmers clubs, PACS, FSSs, LAMPS MACS and other farmers’ collectives and POs are better players than the individual commission agents and petty traders in the marketing chain. Therefore, there is need for appropriate policy for promoting such groups and collectives in post harvest activities and marketing. There is also need for providing them finances on liberal terms for procurement operations as well as infrastructure viz., transport vehicle, storage godown, processing machinery etc..

Action Points for Banks/ Development Departments of Govt: (i) Agricultural marketing department may have to bring out a new policy frame work to encourage the farmers collectives to undertake marketing operations.

PLP 2016-17 Ananthapuram

(ii) National Institute for Agricultural extension Management (MANAGE), Rajendranagar Hyderabad, the nodal agency for administering ACABC scheme should play pro active role in establishment of requisite number of ACABCs in every district. (iii) Societies under cooperative fold should evolve themselves as multi-service centers with appropriate business plan.

PLP 2016-17 Ananthapuram

CHAPTER - 4 CREDIT POTENTIAL FOR MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) – 2016-17

4.1 Introduction

The Government of India has enacted the Micro, Small and Medium Enterprises development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under. Enterprises engaged in the manufacture or production, processing or preservation of goods  A micro enterprise is an enterprise where investment in plant and machinery does not exceed `.25 lakh;  A small enterprise is an enterprise where the investment in plant and machinery is more than `.25 lakh but does not exceed `.5 crore;  A medium enterprise is an enterprise where the investment in plant and machinery is more than `.5 crore but does not exceed `.10 crore. In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No. S.O. 1722 (E) dated 5 October 2006.

Enterprises engaged in providing or rendering of services and whose investment in equipment  A micro enterprise is an enterprise where the investment in equipment does not exceed `.10 lakh;  A small enterprise is an enterprise where the investment in equipment is more than `.10 lakh but does not exceed `.2 crore;  A medium enterprise is an enterprise where the investment in equipment is more than `.2 crore but does not exceed `.5 crore.

In terms of RBI Circular dated 23 April 2015 on revised Priority Sector Guidelines, for the first time a separate sub limit of 7.5% of ANBC has been created for lending to Micro Enterprises under Priority Sector to be achieved in a phased manner i.e. 7% by March 2016 and 7.5% by March 2017.

As per revised Priority Sector Guidelines, Bank loans to Micro, Small and Medium Enterprises, for both manufacturing and service sectors are eligible to be classified under the priority sector as per the following norms:

(a) Manufacturing Enterprises The Micro, Small and Medium Enterprises engaged in the manufacture or production of goods to any industry specified in the first schedule to the Industries (Development 41 and Regulation) Act, 1951 and as notified by the Government from time to time. The manufacturing Enterprises are defined in terms of investment in plant and machinery.

(b) Service Enterprises Bank loans up to `.5 crore per unit to Micro and Small Enterprises and `.10 crore to Medium Enterprises engaged in providing or rendering of services and defined in terms of investment in equipment under MSMED Act, 2006.

(c) Khadi and Village Industries Sector (KVI) All loans to units in the KVI sector will be eligible for classification under the sub-target of 7 percent /7.5 percent prescribed for Micro Enterprises under priority sector.

PLP 2016-17 Ananthapuram

(d) Other Finance to MSMEs (i) Loans to entities involved in assisting the decentralized sector in the supply of inputs to and marketing of outputs of artisans, village and cottage industries. (ii) Loans to co-operatives of producers in the decentralized sector viz. artisans, village and cottage industries. (iii) Loans sanctioned by banks to MFIs for on-lending to MSME sector as per the conditions specified in paragraph IX of priority sector guidelines (iv) Credit outstanding under General Credit Cards (including Artisan Credit Card, Laghu Udyami Card, Swarojgar Credit Card, and Weaver’s Card etc. in existence and catering to the non-farm entrepreneurial credit needs of individuals). (v) Outstanding deposits with SIDBI on account of priority sector shortfall.

Small Industries Development Bank of India (SIDBI) has been established as the apex institution for financing the MSME. Specific schemes have been designed for implementation through SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc. Loans upto `.5 lakhs are made available by the banks without insisting on collaterals. Further Credit Guarantee Fund for micro, small and medium enterprises has been set up to provide guarantee for loans to MSME up to `.25 lakhs extended by Commercial Banks and some Regional Rural Banks.

Highlights of Union Budget 2015-16  A Trade Receivables discounting System (TReDS) which will be an electronic platform for facilitating financing of trade receivables of MSMEs will be established.  (SETU) Self-Employment and Talent Utilization will be established as Techno- financial, incubation and facilitation programme to support all aspects of start-up business. `.1000 crore to be set aside as initial amount in NITI  Government will encourage new start ups and entrepreneurship. Skill development is another area which the government is focusing. For this purpose National Skill Mission has been launched through skill development and entrepreneurship ministry, to develop employability of youth, especially below 25 years of age

Financial assistance is available from institutions such as Nationalized Banks, Small Industries Development Bank of India, Regional Rural Banks, National Small Industries Corporation, State Financial Corporations etc. depending upon the project requirement and promoters background. Financial assistance has two components. Loan for fixed capital is used to acquire Plant and Machinery, land and building. Working capital loan is used to meet day to day operational cost of the production. State Financial Corporation and National Small Industries Corporation generally provide working capital. However, under a package assistance, State Financial Corporations also provide a composite loan covering plant and machinery and working capital.

As per Nayak Committee Report, working capital limits to SSI units is computed on the basis of minimum 20% of their estimated turnover up to credit limit of `.5 crore.

A composite loan limit of Rs.1crore can be sanctioned by banks to enable the MSME entrepreneurs to avail of their working capital and term loan requirement through Single Window. Cluster based approach to lending is intended to provide a full-service approach to cater to the diverse needs of the MSE sector which may be achieved through extending banking services to recognized MSE clusters. The banks have, therefore, been advised to treat it as a thrust area and increasingly adopt the same for SME financing.

PLP 2016-17 Ananthapuram

Chemicals, Glass, Food, Electrical, Metallurgical, Electronic, Textiles, Leather, sports goods, etc. are some of the industries under SME sector. Retails traders, small road transport operators, auto repair service, carpentry business, etc. are some of the service sector activities under SME.

The Industrial Development Policy 2015-20 of Andhra Pradesh aims to promote manufacturing, enhance inclusivity, foster innovations and create employment opportunities across sectors.

(i) Policy Targets  Increase the contribution of manufacturing to GSDP from 9.95%(2013-14)to 15% by 2020  Increase the contribution of industries to GSDP from 20.7% (2013-14)to 25% by 2020  Attract investment to the tune of 2 lakh crore by the end of 2020  Create employment opportunities for an additional 10 lakh people by the end of 2020

(ii) GoAP has identified 10 thrust areas for greater focus:

 Agro & Food Processing  Life sciences (including pharmaceutical, biotechnology & medical equipment)  Textile & Apparel  Electronics & Information Technology  Aerospace& Defence  Automobiles& Auto Components  Petroleum, Chemicals, (including Fertilizers) and Petrochemicals  Energy  Mineral based industry  Leather

(iii) Location wise key investment opportunities:

PLP 2016-17 Ananthapuram

(iv) Services Sector:

In services sector trade, hotel, restaurants, transportation, Housing, Real estate are identified for having good potential.

(v) Skilling people to meet industry requirements

GoAP has set up Andhra Pradesh State Skill Development Corporation (APSSDC)on the lines of National Skill Development Corporation (NSDC), a not-for-profit company under theCompanies Act, 2013. APSSDC will provide funding to build scalable, for-profit vocational training initiatives. It will also enable support systems such as quality assurance, information systems and train the trainer academies either directly or through partnerships.

State will identify required quantum of skilled manpower, map industry specific skill sets andprovide courses at different levels of education – matriculation and above.

Training institutions at divisional level shall be setup through PPP approach to facilitate industry wide initiatives aimed at enhancing the employability of unskilled/semi-skilled labour.

Special emphasis will be laid on skilling first generation entrepreneurs, women, minorities,SC/ST and backward class entrepreneurs.

(vi) Incentives for MSME

GoAP places strong impetus on development of MSMEs. The Government intends to offer a conducive eco-system and competitive fiscal incentives to MSMEs. Details of fiscal incentives pertaining to MSMEs will be charted in a dedicated MSME policy. Incentive with regards to stamp duty and VAT/CST/SGST are mentioned below:  Stamp Duty : 100% of stamp duty and transfer duty paid by the industry on purchase of land meant for industrial use will be reimbursed 100% of stamp duty for lease of land/shed/buildings, mortgages and hypothecations will be reimbursed . Stamp duty will be reimbursed only one time on the land.  VAT/CST/SGST for micro & small enterprises, 100% of net VAT/CST/SGST will be reimbursed for a period of 5 years from the date of commencement of commercial production. For medium industries, 75% of net VAT/CST/SGST will be reimbursed for a period of 7 years from the date of commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier.  For sector specific industries like apparel, food processing, biotech, automobile VAT/CST/SGST concession may vary.

(vii) Khadi and handloom Sector:

Andhra Pradesh is one of the important states in the handloom industry with 200310 handloom weavers in cooperative fold and 158902 in outside cooperative fold. There are about 81000 power looms working in the state both in the cooperative and outside the cooperative sector. There are 1282 weaver cooperative societies in the state engaged in cotton , silk and woollen fabrics. Major centres are Mangalagiri, Pedana, Uppada, pochampalli, Dharmavaram, Narayanpet,Venkatagiri, Chirala, Bandarulanka, Gadwal,Madhavaram etc. ( Source: Dept of Handlooms and textiles , GoAP)

PLP 2016-17 Ananthapuram

Various recommendations to bring vibrancy in Khadi and village industries the following recommendations were made in the Double digit growth GoAP vision 2015 document.

 Establishing artisan parks by reforming existing Shilparamams as artisan parks with production cum sales outlets, sales huts etc.  Government information cum sales based Portal for weavers  Online portal for registration of weavers with their detailed profiles  Technology driven e-commerce, to help small town communities and micro business clusters based on traditional skills  Organised clusters/mega cluster to be shaped into producer companies with end to end support from procuring raw material to marketing produce

The importance and relevance of Non Farm Sector (NFS) and MSME activities in rural areas has assumed special significance in the context of ever increasing rural labour force and relatively declining opportunities of employment in the farm sector. The development of Rural Non Farm Sector (RNFS) is the only way out for solving the ever growing unemployment and under employment problem in the district. The district holds potential for seri culture non-farm sector activities, weaving –both silk and cotton handlooms as well as power looms, other rural artisans with skill based professions as well as traditional profession, Khadi & village cottage units and various micro, small and medium units in rural and semi urban areas.

The Credit flow to this sector during 2012-13, 2013-14 and 2014-15 was `.31659 lakh and ` `.31828 lakh and `.28002 lakh respectively, indicating mixed trend and the target for the current year 2015-16 is `.40822 lakh. 4.2 Assessment of Credit potential for 2016-17 Taking into consideration the availability of infrastructure and support services, the exploitable potential during 2016-17 for MSME Investment has been assessed as follows: (`. lakh) Base PLP(2016-17) Revised (2016-17) Activity Unit Phy Fin. Phy Bank Loan Fin. Outlay Bank Loan Units Outlay Units Sericulture – Non farm sector Motorised Charkas No. 88 11.42 10.28 100 15.00 13.50 Reeling Units No. Reeling Sheds No. 20 124.74 93.56 Multi end reeling units – No. 15 168.37 151.53 25 319.08 271.21 10 Basin Multi end reeling units – No. 06 114.20 102.78 15 243.42 206.91 20 Basin Reeling cum Twisting No. 37 256.22 230.60 Units Automatic reeling units – No. 9 20.20 18.18 10 843.15 674.52 200 spindle Automatic reeling units – No. 59 263.54 237.18 10 1559.25 1247.40 400 spindle MSME – Fixed Capital Manufacturing Micro Industries (<5.0 No. 2928 10248.70 9223.83 3750 15000.00 12000.00 lakh) Micro Industries (5.0 to No. 1250 9375.00 7500.00 25.0 lakh) Small Industries (25 to No. 22 7686.53 6917.87 25 10000.00 7500.00

PLP 2016-17 Ananthapuram

500 lakh) Medium Industries (500 No. 5 3750.00 2812.50 to 1000 lakh) Service Micro enterprise <2.0 No. 4099 3607.54 3246.79 12000 13860.00 11088.00 lakh Micro enterprise 2.0 to No. 4000 8000.00 6400.00 10.0 lakh KVI No. 1500 15000.00 12000.00 Small enterprise upto No. 100 5000.00 4000.00 200.00 lakh Medium enterprise upto No. 25 5250.00 4200.00 500.0 lakh GCC/SCC/Weavers’ No. 4832 1691.04 1521.93 10000 12000.00 10800.00 credit card SHG mode : Micro No. 4000 20000.00 20000.00 enterprise (Service) Small Road & Water 250 1250.00 1000.00 Transport Operators (SRWTO) Professionals self 500 5000.00 3750.00 employed MSME – Fixed Capital 24067.75 21660.98 126589.64 105557.60 (Total) I +II MSME – Working Capital Micro Industries No. 659 3953.07 3557.76 300 3000.00 2250.00 Small Industries No. 29 351.38 316.25 45 2250.00 1687.50 Medium Industries No. 10 2000.00 1500.00 Handloom No. 732 10248.70 9223.83 5000 2500.00 1875.00 KVI No. 9663 2898.92 2609.03 250 625.00 468.75 Retail Trade & Small No. 12700 19050.00 14287.50 Business 17452.07 15706.86 29425.00 22068.75 Total 41519.83 37367.84 156014.64 127626.35 Depending on the nature of enterprise the bank loan portion vary from 75 to 90% of the respective unit cost where as it is reckoned as 100% of the unit cost for the micro enterprises (service sector) financed in SHG mode.

4.3 Availability of Infrastructure, critical gaps & interventions required, action points/ issues to be addressed

The district has potential for development of clusters like handloom and silk weaving, ready made garments, granite-stone cutting and polishing, lime stone based industry, etc.. GOI is implementing various schemes for supporting technology upgradation, exports, MSME promotion, Handlooms, Artisans, etc.. Single Window system for providing all permissions and clearances with DIC as convenor is in implementation to avoid delays and time lag in establishing industries.

There are 3753 registered MSME units with a total investment of `.1339 crore and providing employment to 64867 persons and there are also more than a lakh un registered MSME units with an estimated investment of `.1560 crore and providing employment to 244093 persons.

Anantapur is one of the traditional districts for sericulture accounting for 46% of the total cropped area under mulberry in the State. In Handloom/Powerloom sector, 58000 weaver

PLP 2016-17 Ananthapuram households with a population of about 260000 are dependent on the activity for their livelihood. There are about 55000 handlooms and about 12000 power looms existing in the district. Further, there are 154 silk, 64 Cotton and 16 wool weavers’ societies in the district. The sales and production of both handlooms and power looms stood at `.1790 crore and `.1340 crore respectively during 2013-14 and the figures are `.1680 crore & `.1250 crore respectively for 2014-15. Silk looms are spread over mandals like Dharmavaram, Pedapappur, Yadiki, Narpala, Mudireddipalli, Tadipatri, Kadiri etc.. Cotton looms in Uravakonda, Pamidi, Raydurg etc., and power looms are concentrated in and around Hindupur mandal.

Handlooms clusters at Yadiki, Mudireddypalli, Tadipatri, Dharmavaram and Uravakonda have been taken up and are likely to emerge as vibrant clusters offering scope for extending bank finance. There is scope for establishment of more handloom weaving clusters and modern technical training centre on silk dyeing and weaving.

There is scope for Power loom weaving clusters at Hindupur with an investment of `.75 crores which generates employment to about 20000 families with value addition of `.350.0 crore.

Scope for 204 additional Readymade garments units with investment of `.84 crore, employment opportunities to 6450 persons in next three years and value addition of `.300 crore. Critical issues which affect realization of potential & interventions required to create a definite impact are given under:  It is expected that RRR package benefit will be passed on to the societies so that they are eligible for fresh finance by the Banks.  Weavers Credit Card scheme and other welfare schemes are continued in 2015-16 and likely to continue in 2016-17 also.  Establishment of Silk Reeling and Twisting Units - There are 620 basins which is far short of the requirement. The Department has to encourage establishment of 10 and 20 basin multi-end silk reeling machinery.

Action Points for Banks and Government Departments  Govt. may extend tax concessions  Setting up of Common Facility centre for the benefit of weavers  The DIC may help banking system by way of preparation of project profiles / consultancy support.  Banks may provide loans for working capital requirements & coverage of units under CGTMSE and motivating units to avail grant under technology upgradation scheme  Banks should take pro-active measures in issue of Swarojgar Credit Cards and artisan cards apart from supporting MSMEs.

PLP 2016-17 Ananthapuram

CHAPTER- 5

POTENTIAL FOR EXPORT CREDIT - 2016-17

5.1 Introduction

Export sector is an important sector on account of its advantages in earnings in foreign currency and its significant contribution to the economy. Export in India needs to be managed to reduce the import basket mainly of petroleum and manufactured goods. The reliance on exporting raw material and importing finished goods has detrimental effects on the economy. The ‘Made in India’ campaign aims to improve self-reliance and establish brand ‘India’ image.

To give fillip to the sector, GoI has given various incentives, rationalized the procedures and provided tax benefits, etc., from time to time. Now for the purpose of availing export credit, only three documents viz. Bill of Lading/ Airway Bill, Commercial Invoice cum Packing List, Shipping Bill/ Bill of Export are required. GoI has also announced the Foreign Trade policy 2015-20 which is expected to diversify Indian products and give a boost to India’s exports.

In order to achieve the requisite growth during XII plan, Ministry of Commerce, GoI has envisaged following export growth in sectors: Plastic - 15%, Textile & Clothing - 15.17%, Handicrafts - 18%, Manufacturing / Engineering – 18%. The growth in Agriculture export has been projected at 4% commensurating with the overall XII plan growth target for agriculture.

Andhra Pradesh has 5 Agro Climatic Zones suitable for cultivation of a wide range of crops. The State is one of the major producers of agricultural, horticultural and aqua products in India. Andhra Pradesh ranks first in terms of production of eggs, mango, papaya, lime / lemon, oil palm, chillies, turmeric & okra; second in meat, aqua products, cashew, groundnut, paddy, maize & brinjal; third in milk, millets, coconut & banana; fifth in sugarcane and sixth in onions.

As many as 9 of the 13 districts of AP have sea coast along the Bay of Bengal, which has created manufacturing and export centric industry. The fertile river plains in the delta regions of major peninsular rivers of Godavari and Krishna are rich with agriculture-based industries and the mineral deposits found in the districts of Rayalaseema, Eastern Ghats and neighbouring states has led to large-scale ore exports. The marine products exports from the State during 2013-14 constituted 40% of All India exports. According to the Marine Products Export Development Authority (MPEDA), the total marine exports from AP stood at `.9,296 crore with `.7,578.27 crore coming only from Visakhapatnam port. The exports growth of marine products during 20114-15 in Andhra Pradesh was 10.67 per cent as compared to 7.33 per cent in the previous fiscal.

The State has 5 airports (Kadapa, Renigunta, Gannavaram, Rajahmundry & Visakhapatnam), besides 1 at Hyderabad, and 6 Sea Ports (Krishnapatnam, Machilipatnam, Rawa, Kakinada, Gangavaram & Visakhapatnam) with good network of roads & railways. According to Andhra Pradesh Infrastructure Mission, 18 ports are to be made operational by the GoAP (6 currently operational, 6 under development and 6 to be identified for development). Further, the State is to be developed into a hub for ship building and repairs. Similarly, the Mission indicates the plan to have airports in 12 out of 13 districts of the State.

As per the data from the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), out of 32 SEZs notified in residuary Andhra Pradesh, only 17 are functional. Similarly, it has

PLP 2016-17 Ananthapuram developed over 300 industrial parks (including SEZs) spread over an extent of about 1,21,655 acres. APEDA has set up Agri-Export Zones (AEZs) in different districts of the country. The position of outstanding export credit as on 31 March 2015 in Andhra Pradesh was as under: (`. crore) Name of Agency O/S Amount Public Sector Banks 1585.37 Private Sector Banks 215.70 Total 1801.70

5.2 Assessment of Credit Potential for 2016-17 The scheme of export financing by the Banks was introduced in 1967. Under the scheme, banks provide loans to the export2ers at two stages. The first one is Packing Credit (PC) for working capital to purchase raw materials, processing, packing, transporting and warehousing of goods meant for export. The second stage namely, Post Shipment (PS) finance was provided by the banks against the shipping documents after liquidating the PC advances.

Export Credit has been included in the Priority Sector during the year 2015-16 and projections are being made for the first time in PLP-2016-17. Assuming that 50% of the existing units and the new units will avail Export credit, the Block-wise Activity-wise projections under the sector for 2016-17 are indicated at Annexure – I and the summary is given below. (`. lakh) Base PLP (2016-17) PLP (2016-17) Activity Unit Phy. Fin. Bk. Phy. Fin. Bank Units Outlay Loan Units Outlay Loan Pre-shipment/ Packing New Activity included Credit under Priority sector Groundnut Kernels Nos. 2 150 112.50 Fruits & Vegetables Nos. 1 200 150.00 Silk sarees & readymade Nos. 2 250 187.50 garments Mineral ore Nos. 2 500 375.00 Post-shipment credit Nos. Groundnut Kernels Nos. 2 200 150.00 Fruits & Vegetables Nos. 1 250 187.50 Silk sarees & readymade Nos. 2 300 225.00 garments Mineral ore Nos. 2 600 450.00 Total Export Credit 2450 1837.50 The bank loan portion is reckoned at 90% of the TFO for various export activities.

5.3 Availability of Infrastructure, critical gaps & interventions required, action points/issues to be addressed In Ananthapuram district there are a few units exporting products such as ground nut kernels, melons, pomegranate, silk sarees, readymade garments, handicrafts, limited quantities of ore & granite. As far as export credit is concerned, there are not many units availing export credit. There are indications that a few could manage the export credit from corporate branches of the banks and the data/information is not available at the district controllers.

PLP 2016-17 Ananthapuram

NABARD is extending 100 % refinance to all client institutions (CBs, RRBs, SCBs, SCARDBs) with NPA not exceeding 5%. All contract farming arrangements within and outside AEZs are eligible for availing special refinance package.

‘Made in India’ is expected to invigorate the export sector also. However, the critical gaps, intervention required and issues to be addressed in the sector are:

 Availability of power supply and road connectivity needs to be addressed.

 Settling the Pre shipment credit within the stipulated time after the dispatch of goods or converting them into Post Shipment credit may be ensured.

 Lack of forex branches in the district and the operation handling outside district makes the credit access difficult for the exporter.

 Due precaution, in case of the export of agricultural products especially for factors such as domestic and international demand and supply situation, price competitiveness, quality concerns, sanitary & phytosanitary requirements and relevant rules & regulations of the importing countries. Temporary restrictive measures sometime adopted by the importing countries in view of non- conformity to any of these standards/rules ruin the unit.

 Exporters may be encouraged to avail the export credit insurance facilities extended by ECGC.

 Micro, Small and Medium Exporters should be properly trained by MSME / export organizations with technical assistance from banks regarding correct filling up of forms.

 Collateral security should not be insisted upon as far as possible and Gold Card scheme should be popularized.

 The banks should put in place a control and reporting mechanism to ensure that the applications for export credit are disposed of within the prescribed time frame.

PLP 2016-17 Ananthapuram

CHAPTER - 6 CREDIT POTENTIAL FOR EDUCATION 6.1 Introduction Education is undoubtedly a core sector and the long-term economic, social as well as personal gains from education are well proved for individuals, families, communities and the development of a nation. Education can truly lead to change in social environment, increased employment, higher skill level, human resource development and reduction in poverty, malnutrition & inequality. Unlike the earlier period, education now is seen as a vehicle for “human capital formation”, industrial & technological progress, economic development of an economy and improving the quality of life of people.

The educational system in India is broadly classified into four stages viz., (a) primary education (b) upper primary education (c) secondary education, (d) higher secondary education (e) vocational education, and (f) adult education. The top 6 States in terms of highest number of colleges in India are Uttar Pradesh, unified Andhra Pradesh, Maharashtra, Karnataka, Rajasthan and Tamil Nadu. The Gross Enrolment Ratio (GER) in Higher education for 18‐23 years of age group worked out to 20.4.

(a) Need for financial support for Education Sector

Supporting higher education depends on various factors, among which finance plays a major role. According to revised RBI guidelines, Priority Sector Lending includes educational loans upto `.10 lakh, including vocational courses. The Government of India has launched a scheme to provide full interest subsidy during the moratorium period of Education Loan i.e., Course Period plus one year or six months after getting job, whichever is earlier, on loans taken by students belonging to Economically Weaker Sections from Scheduled Banks under the Educational Loan scheme of the Indian Banks’ Association, for pursuing any of the approved courses of studies in technical and professional streams, from recognized institutions in India.

(b) Population & Literacy – 2011 Census

Population Particulars Literacy% Rural Urban Total All India 8330.88 3771.06 12101.93 74.0 Andhra Pradesh 347.76 146.10 493.86 67.4 (population > 6 years being 297.72 lakh) Ananthapuram 29.35 11.46 40.81 63.57 (population . 6 years being 35.88 lakh) Source : DISE data 2011

Of the total 49373 habitations in Andhra Pradesh, 2117 habitations are without Primary 2117 (4.3%) and Upper Primary Schools 2485 (5.0%). However, Andhra Pradesh has 18 State Universities, five Deemed Universities & one Autonomous University and considerable number of higher educational institutions. The number of students qualified in various CETs for the year 2014-15 was 97,642 compared to 82,576 during 2013-14, which shows the potential in the sector for higher education.

The recent initiative of GoAP to achieve “Double Digit Inclusive Growth” has set up various missions, grids and campaigns, of which one of the campaigns is Education. The Govt is also

PLP 2016-17 Ananthapuram taking various other initiatives in the field of education like setting up of Veterinary College, Horticulture College, Fine Arts University, and Tribal University for improving the education system in the State. Further, the GoAP will be establishing one IIT & IIM as announced by the Prime Minister.

(d) Progress under Educational Loans – 2014-15

The Department of Financial Services, Ministry of Finance, GoI had advised the SLBCs to allocate targets for 2014-15 under Education Loans keeping a minimum growth of 10% in number of accounts and 15% in Loans Outstanding. The table below indicates the progress made by banks in Andhra Pradesh during 2014-15 under Education Loans. (`. crore) Target for 2014-15 O/S as on 31.3.2015 Gap in target Name of bank No. of No. of No. of Amt Amt Amt A/Cs A/Cs A/Cs Public Sector Banks 155788 3600 135910 2905 19878 695 Private Sector Banks 1960 79 1144 40 816 39 RRBs 8960 132 6558 117 2402 15 Coops 402 4 32 0.5 370 3.5 Total 167110 3815 143644 3062.5 23466 752.5 (Source: SLBC, AP)

In Ananthapuram district educational loans (priority sector) disbursed during 2014-15 and o/s as on 31.03.2015 is given in the following table. (`. lakh) Target & Disbursements during 2014-15 O/S as on 31.3.2015 Target Achievement Name of bank No. of No. of a/c Amt No. of A/Cs Amt Amt A/Cs Public Sector Banks Bank-wise targets 968 2082 6102 13527 Private Sector Banks under Educational RRBs loans was not 106 218 905 1448 Coops furnished in ACP 2014- 0 0 0 0 Total 15 1074 2300 7007 14975 (Source: Lead Bank returns)

6.2 Assessment of Potential for the year 2016-17 (`. lakh) Base PLP (2016-17) PLP 2016-17 Unit Activity Bank Bank s Phy TFO Phy TFO Loan Loan Educational Loans to Engineering, Nos. 1600 4000 4000 1600 8000 8000 Medicine and other professional courses in Indian colleges & Universities Other Vocational courses Nos. 397 991 991 400 800 800 Total 1997 4991 4991 2000 8800 8800 As the margin money is not to be insisted under education loans entire TFO is reckoned for bank loan. The overall literacy rate in the district is 63.50%, literacy among males is 73.02% and among females it is only 53.97%. The Gross Enrolment Ratio (GER) in Higher education for 18‐23 years of age group worked out to 18.9.

PLP 2016-17 Ananthapuram

6.3 Availability of Infrastructure, critical gaps and interventions required, action points / issues to be discussed

There are about 31 D.Ed colleges, 25 B. Ed colleges, 14 Poly technic colleges, 18 Engineering Colleges, one Medical college, 02 Pharmacy colleges, 12 MBA colleges and 6 MCA colleges.

Taking into account the total strength and actual enrollment data in the last three years the average gap is about 28%. The loan requirement was assessed to be 10 to 12% of the enrollment. Whereas the % of Educational loans disbursed by the banks in the districts and outstanding as on 31.03.2015 is 5.8% of the total loans outstanding indicating shortfall to the norm.

Critical issues that needs to be addressed to realize the potential and have definite impact  Tri-partite meetings can be arranged between bankers, college management and the parents of the students so as to bring out the list of students deserving financial assistance.  College management should track the cases of Educational loans so that it facilitate better recovery.

Action Points :

 Banks should finance education loans liberally and rather pro activeness in identifying good students would fetch better business and quality portfolio.  Government may identify nodal officers in the concerned departments to recommend the cases to the banks so as to facilitate easy and quick process.

PLP 2016-17 Ananthapuram

CHAPTER - 7

CREDIT POTENTIAL FOR HOUSING

7.1 Introduction

Housing in India has emerged as the most vibrant and dynamic sector for the country’s economy as well as real-estate industry, with the entry of numerous real-estate developers, availability of finance schemes, and increasing demand for residential property. With changes in the economic condition of families and their aspirations, there is a growing need for housing.

The Ministry of Rural Development (MoRD), GoI has estimated that there is a shortage of 439.3 lakh houses in rural India during the XII Plan period. The MoRD, has formalised the vision for Rural Housing as “Ensure adequate and affordable housing for all and, facilitate development of sustainable and inclusive habitats in rural areas by expanding government support, promoting community participation, self‐help and public‐private partnership within the framework of Panchayati Raj”. In the Union Budget-2015, an allocation of `.22,407 crore was made for housing development in the country to realize the aim of 'Housing for All by 2022'.

According to the NSSO, about 66 per cent financing of new construction in rural areas in 2010–11 was done by rural families with their own resources; about 27 per cent construction had some amount of finance from non-institutional sources such as moneylenders, family / friends, while only 9 per cent of new construction was financed by institutional channels such as Government schemes, banks and so on.

The Status of Housing Development & Finance in Andhra Pradesh

Andhra Pradesh State Housing Corporation Limited (APSHCL) aims to bring dignity to each and every BPL family by assisting them, both financially and technically, for construction of permanent (Pucca) houses. The financial support is provided as per the schemes of State and Central Government. In addition, APSHCL brings innovative technologies in house construction, besides supply of cost effective building material through the Nirmithi Kendras and materials at a subsidized rate. The various schemes being implemented by APSHCL are Indiramma, Rachabanda, Indira Awaas Yojana, Beedi Workers Housing in Rural & Urban areas, Integrated Housing & Slum Development Programme, Jawaharlal Nehru National Urban Renewal Mission, etc..

The Andhra Pradesh Rajiv Swagruha Corporation is a Special Purpose Vehicle (SPV) launched by the Government of Andhra Pradesh in 2007. The objective of the Corporation is to make available ‘affordable housing’ scheme called “Rajiv Swagruha” for moderate income groups in the urban areas of the State. The Rajiv Swagruha scheme provides best quality houses at affordable cost, in four categories, having all basic infrastructure and facilities of modern day. The mandate of the State Government is to provide houses at relatively 25% less than the prevailing market cost. The Corporation has prepared projects in respect of 85,961 units at a project cost of `. 17,866 crore and has grounded around 49,353 units.

The Government of Andhra Pradesh in its Budget for 2015-16 has allocated `. 897 crore for Housing Sector.

PLP 2016-17 Ananthapuram

Flow of Ground Level Credit in Andhra Pradesh – 2014-15 (`. crore)

Total Outstanding Disbursements Name of bank No. of A/Cs Amt No. of A/Cs Amt 2013-14 336689 15621 N/A N/A 2014-15 342135 17424 44873 2957 (Source: SLBC, AP)

Flow of Ground Level Credit in Ananthapuram district– 2014-15 (`. lakh) Total Outstanding Disbursements Avg. Size Name of bank No. of No. of of loan Amt Amt A/Cs A/Cs 2013-14 18929 69860 1923 16662 8.665 2014-15 11944 65410 1833 16815 9.173 (Source: SLBC II returns as submitted by Lead District office, Ananthapuram)

7.2 Assessment of Credit Potential for 2016-17

In tandem with the XII Five Year Plan growth targets, a 273% rise over Base PLP and 62.65% over previous projections have been envisaged in the current PLP. The Block-wise Activity-wise projections under the sector during the year 2016-17 are indicated at Annexure – I. (`. lakh)

Base PLP (2016-17) Revised (2016-17) Activity Unit Phy. Fin. Bank Phy. Fin. Bank Units Outlay Loan Units Outlay Loan Housing loans to Individuals No. 3527 17636 13227 4000 80000 72000 up to 20.0 lakh(including purchase of plots for housing purpose) Housing loans to Individuals No. - - - 500 1000 900 up to 2.0 lakh for carrying repairs to the existing house Total 3527 17636 13227 4100 81000 72900 The bank loan portion is reckoned at 75% of the TFO.

7.3 Availability of Infrastructure, critical gaps & interventions required, action points/issues to be addressed

As per Census 2011, out of the total 9.68 lakh Households in Ananthapuram district, (7.00 lakh households in rural and 2.68 lakh in urban area) 2845 households in rural areas and 2094 households in urban area does not have any house at all whereas 12 to 18% households in rural areas and 15 to 20 % households in urban area dwell in either semi- permanent or total temporary houses.

Government of India, under Indira Awaas Yojana(IAY), 2015-16 has allocated a target of 78258 units with total financial allocation of `.28818.24 lakh to Andhra Pradesh state. Of that 3865 units and `.3415.90 lakh is the allocation for Ananthapuram district. The A P State Housing Corporation Ltd., Ananthapuram, has made mandal wise allocations and initiated the process for identifying the beneficiaries.

PLP 2016-17 Ananthapuram

The Department has also received additional allocations of 1290 units (440 of 2014-15 & 850 for 2015-16) for displaced families under Relief & Rehabilitation programme.

The critical gaps, interventions required and issues to be addressed in the sector are:

 Rising land cost, spiraling construction costs, and inadequate availability and reach of micro-finance measures are affecting the sector.  Long gestation period of six to eight years of housing projects, accentuated by multiple approvals to be obtained from multiple authorities in a two to three year time period needs to be simplified.  There is a need to address the issue of inadequate assistance for purchase of house‐sites as well as streamline homestead plot provision through collaborative working of various departments.  As residential housing loans do not create direct additional income, recovery of loan may prove to be difficult even though loan may be adequately secured. There are many legal and other hurdles to be tackled in this regard.

PLP 2016-17 Ananthapuram

CHAPTER – 8 RENEWABLE SOURCES OF ENERGY AND WASTE MANAGEMENT

8.1 Introduction

Energy is necessary for human existence. Fossil fuel is a major source of energy, however the stock of resources is limited and it has its own constraints. Therefore, there is a dire need for exploring the alternate sources of energy. In this backdrop, renewable sources of energy would play an increasingly important role in the times to come. GOI has established a separate department viz., Ministry of New and Renewable sources of Energy (MNRE) and is offering many incentives for promoting the activities and there is a state government nodal department namely New & Renewable Energy Development Corporation of A.P Limited (NREDCAP) formerly Non-conventional Energy Development Corporation of Andhra Pradesh Ltd.(NEDCAP). The credit flow to renewable sources of energy is picking in the last 2 years but the exact data is not readily available to comment on the credit flow. 8.2 Assessment of Credit potential for 2016-17 Taking into consideration the availability of infrastructure and support services, the exploitable potential during 2016-17 has been assessed as follows:- (`. lakh) Base PLP(2016-17) Revised (2016-17) Activity Unit Phy Fin. Bank Phy Fin. Bank Loan Units Outlay Loan Units Outlay Biogas units of 2 cum No. 1500 249.00 224.10 3000 510.00 459.00 capacity Solar Home lighting 3750 1012.50 911.25 (Off grid roof top panel) 100 wp No. 4000 672.00 604.80 200 wp No. 2000 672.00 604.80 500 wp No. 500 252.00 201.60 1 Kv No. 50 84.00 75.60 Solar water heating No. 200 36.00 36.00 100 18.00 16.20 system Solar lights (LED No. 1000 40.00 36.00 200 21.60 19.44 luminaire) Solar lights (LED No. 100 18.00 16.20 luminaire) Solar pumpsets with AC No. ------20 100.00 85.00 motor of 5 hp Solar pumpsets with DC ------50 279.00 237.15 motor of 5 hp Solar Home lighting units No. ------400 360.00 306.00 with grid connected roof top panel. 1 KVA Solar Power Plants of 1 No. 1 600.00 450.00 40 30000.00 22500.00 MW capacity Solar Power Plants of 2 No. ------15 22500.00 16875.00 MW capacity Wind power Farms No. ------60 36000.00 27000.00 Total 1937.50 1657.35 91486.60 69000.79 Depending on the nature of activity and the TFO, the bank loan portion is reckoned at 75%(Solar power generation units) to 90%(for domestic solar lighting) of the respective unit cost.

PLP 2016-17 Ananthapuram

The joint mandal (erstwhile Block) wise physical and financial projections for the year 2016-17 are furnished in Annexure - I.

8.3 Availability of Infrastructure, critical gaps & interventions required, action points/ issues to be addressed

New & Renewable Energy Development Corporation of Andhra Pradesh Ltd., (NREDCAP) is implementing the following programmes / schemes / activities which are covered under 15 point programme. 01. National Biogas manure management programme 02. Improved Chulhas programme 03. Solar Energy programmes 04. Energy Conservation Programme & 05. Wind power Generation projects

Biogas programme commenced during the year 1982-83 and successfully implementing in the district. Up to 2014-15, 23963 Biogas Plants have been installed in the district. The Unit cost of 1 Cum & 2 Cum Deena bandu Biogas plants and subsidy particulars for the year 2015-16 furnished hereunder. The Unit cost and subsidy allowed by the Ministry of New and Renewable Energy (MNRE) Govt. of India is as follows.

Size of the Plant Unit Cost Subsidy 1 Cum 15000.00 5500.00 2 Cum & 3 Cum 20000.00 9000.00

The details of Targets and Achievements during 2012-13 To 2014-15 are as follows.

Year Target Achievement Percentage of Achievement 2012-13 900 924 100% 2013-14 950 1051 111% 2014-15 860 891 103%

The Biogas programme is being implemented through Self Employed Workers (SEWs) and Biogas Development Agencies (BDAs) working under the supervision of NREDCAP field officers.

Improved Chulhas programme: Percentage of Year Target Achievement Achievement 1800 1800 Fixed Chulhas 2012-13 100% 9226 9226 Portable Chulhas 1000 1000 Fixed Chulhas 2013-14 100% 5350 5350Portable Chulhas

Solar Power Projects/ Programs:

Anantapuramu has a location advantage in receiving abundant radiant energy from the Sun as it is located in the equatorial sun belt of the earth. Majority of the Indian continent is bestowed with clear sunny weather in all most 280–300 days of a year. Daily solar energy incidence over India varies from 5 -7 KWh per sq. meter depending on the region. Solar energy can be used in two ways.

PLP 2016-17 Ananthapuram

Solar Thermal Conversion: Conversion of solar energy into heat using devices of steel, copper, aluminium is called solar thermal conversion. A solar thermal device captures and transfers the heat energy available in the solar radiation. The energy generated can be used for varied applications in the household and industrial sectors like water heating systems, air heating systems, cooking and other household utilities contributes a good impact to save the conventional energy.

Solar Photovoltaic (SPV) conversion: This is the conversion of solar energy into electricity using semi conductors and their hybrids to convert the solar energy into direct current form of electricity for the application of DC and AC. The electricity thus generated can be used to needs of home lighting, street lighting and running motor pumps etc. The direct current form of solar energy is a major technical consideration for SPV application.

64 MWs SPV projects and 50 MW Solar Thermal Power projects was commissioned in the district. Project wise details are furnished here under.

Project Project Location Remarks Sanctioned Commissioned Kutagulla 7 MW 7 MW T. Veerapuram 5 MW 5 MW Borampalle 20 MW 20 MW Nallacheruvu 5 MW 5 MW Captive use Hindupuram 14 MW 14 MW 3rd party sale Gooty 01 MW 01 MW Beechuganipalle 10 MW 10 MW Ubicherla 2 MW 2 MW Peddavaduguru (Solar thermal) 50 MW 50 MW

Govt. of Andhra Pradesh entered MOU with NTPC for setting up of 1000 MW Ultra Mega Solar Power Project in N.P. Kunta Mandal of the district. 6780 Acres of Land advance possession was taken for Ultra Mega Solar Power Park. The Land was handed over to NTPC for establishing 1000 MW Solar Power Project.

Out of 1000 MW 250 MW ground works are under progress. The works will be completed by March 2016.

Solar P.V. Systems: Govt. of India declared Jawaharlal Nehru Solar Energy Mission – incorporating various Solar energy devices and P.V. Power generating systems with 15% subsidy. The programme mainly aims at propagating and implementation of sustainable systems for Diesel abatement and meeting power requirement of remote villages providing grid quality power.

Solar Pump sets: MNRE sanctioned Solar Pump sets programme of 3 & 5 HP Capacity with 30% Subsidy. The State Govt. is proposed for implementation through DISCMS & NREDCAP with State Govt. Financial support.

Model / Capacity Unit Cost MNRE Beneficiary PFC / DISCOMS Subsidy Share share 3 HP AC Model 320360 97200 40000 183160 5 HP AC Model 490000 162000 55000 273000

PLP 2016-17 Ananthapuram

The Solar Pumping Systems is feasible for below 200 feet water table availability in the proposed land. The interest beneficiaries may contact the respective AP DISCOM authorities for installation of Solar Pump set.

WIND ENERGY

New & Renewable Energy Corporation of AP Ltd., (NREDCAP) is conducting wind monitoring studies in selected locations under the guidance of Centre for Wind Energy Technology (CWET), Chennai and Ministry of New & Renewable Energy Govt. of India. So far following locations are declared as windy sites by installing 20/25/50/80/100 mts height wind monitoring stations.

1. Ramagiri 7. Borampalli 13. Basavapuramu 2. Tallimadugula 8. Nallakonda 14. Vyasapuram 3. Singanamala 9. Chinnababaiahpalli 15.Kuttalapalli 4. MPR Dam 10. Madugupalli 16. Devireddypalli 5. Bhadrampallikottala 11. Kadavakallu

6. Vajrakarur 12. Talaricheruvu

Apart from the above developers are also permitted to conduct wind monitoring studies in Govt /Private Lands. Among the declared locations 752.54 MW capacity Wind power projects were established in the following locations.

Location Name Installed capacity in MW Ramagiri 51.74

Tallimadugula 19.70

Kadavakallu 86.65

Rekulakunta 5.95

Vajrakarur 102.90

Kondameedapalli 10.40

Nallakonda 108.00 Bala Venkatapuram 151.20 Tagguparthi 200.00 Borampalli 16.00 Total 752.54

Wind power projects works are in progress at the following locations.

Location Name of the developer Capacity in MW Kadavakallu RCI 41.8 Balavenkatapuram Rayala Wind power 8.00 Singanamala HCL group 12.8

PLP 2016-17 Ananthapuram

To cater the evacuation needs of the projects AP Transco has taken up exclusive substations at the following locations. 1. Ramagiri 220 KV 2. Komatikuntla 132 KV 3. Vajrakarur 132 KV 4. Nallakonda 220 KV 5. Komatikuntla 220 KV 6. Papampalli 220 KV 7. Ramsagaram 132 KV

Apart from the above Government of AP has contemplated to take up a 400 KV sub-stations to create Wind and Solar corridor is proposed between Jammalamadugu to Uravakonda as phase I and Uravakonda to Hindupur as phase II with intermittent 220/132 KV substations to cater to the evacuation needs of the wind and solar power projects in these areas. The 1st phase works are expected to be complete by October, 2015.

Critical issues which affect realization of potential & interventions required to create a definitive impact are as under:  Awareness creation at the ground level regarding alternative sources of energy, various subsidy schemes of GoI.  Designing suitable credit products

Action Points:

 NREDCAP needs to change its strategy to popularize credit linked schemes. (Action: NREDCAP)  The CSR initiatives of many leading public & private corporates may be tapped to create model villages for creating awareness on so that renewable energy sources are exploited for various energy requirements of the village(s). (Action: NREDCAP)

 Banks may pro actively extend finance on solar home lighting system, water heating system & solar pumping system. (Action: Banks)

PLP 2016-17 Ananthapuram

CHAPTER – 9

PRIORITY SECTOR - OTHERS

9.1 Introduction

The activities which are grouped under Priority Sector – Others are grossly welfare programmes in nature, for instance Loans under various schemes of state sponsored corporations. In order to inculcate credit discipline the schemes are credit linked so that asset creation and functioning of the unit will be ascertained by the financing bank. Similarly Loans to the distressed persons to prepay their debt to non institutional lenders. It is a deliberate attempt to extend bank finance and bring back all the persons who have resorted to borrowing from non-institutional sources. Under PMJDY, it is expected that all the households in the country to open and maintain at least one Basic Savings Bank Deposit (BSBD) account. On successful operation of such account they are entitled to Over Draft facility of about `.5000/- OD facility extended to such customers also form part of this chapter. As the activities listed under Priority Sector – others are altogether different and hence credit flow figures for the same are not available. 9.2 Assessment of Potential for 2016-17 The Credit potential for Priority Sector – others for the year 2016-17 is assessed based on the extant policy of the governments and targets envisaged under it. (`. lakh) Base PLP 2016-17 Revised 2016-17 Unit Activity Bank s Phy TFO Phy TFO Bank Loan Loan Micro Loans to SHGs for misc. Nos. These are the new 10000 10000.00 10000.00 livelihood activities including activities under the consumption needs & others priority sector revised Loans not exceeding Rs. 50000/- Nos. norms. 1000 500.00 500.00 per borrower directly or to their SHGs, JLGs. Loans to the distressed persons to Nos. 500 250.00 250.00 pre pay their debts to non- institutional lenders OD extended by Banks upto Rs. Nos. 4000 200.00 200.00 50000/- per borrower under PMJDY Loans under various schemes of Nos. 5000 3000.00 1500.00 state sponsored corporations Total 13950.00 12450.00

Entire unit cost is reckoned as bank loan for all the activities indicated in the above table except the Loans under various schemes of state sponsored corporations where non subsidy portion only is taken as bank loan. 9.3 Availability of Infrastructure, critical gaps & interventions required, action points/ issues to be addressed

In Ananthapuram district about 2.96 lakh accounts were opened since the launch of PMJDY. However there are duplications as many people particularly the urban dwellers have morethan one account. There is also ambiguity on whether the benefits i.e., insurance for accidental death and disability, life coverage, OD facility are available for the persons who have BSBD accounts prior to launch of PMJDY programme.

PLP 2016-17 Ananthapuram

Critical issues which affect realization of potential & interventions required to create a definite impact are given under:  Transparency in identifying the eligible borrowers is vital.  The data base on eligible borrowers, details of credit linkage & loan repayment and defaulters etc., should be maintained.  Revenue department should also help the bankers in effecting recovery.

Action Points for Banks and Govt. Departments

 The District Administration and other line departments particularly the welfare departments should create awareness and give adequate publicity on the aforesaid credit facilities available with banks.  Bankers should be pro active in financing the eligible borrowers.

PLP 2016-17 Ananthapuram

CHAPTER 10

INFRASTRUCTURE SUPPORT

10.1 INFRASTRUCTURE - PUBLIC INVESTMENTS Infrastructure Development in rural areas is crucial for inclusive growth of the economy and for bridging the rural-urban divide. Economic infrastructure like irrigation water, power, transport & communication facilitates the growth of economic activities and enable production and distribution of goods and services for human welfare. Provision of adequate and quality infrastructure in rural areas is necessary for increasing the productivity and efficiency of agriculture, improving the credit absorption capacity, enhancing the productivity of crops and livestock, generating employment and increasing farmers’ income thereby minimizing the incidence of rural poverty. Rural Infrastructure Development Fund With the objective of assisting State Governments in the completion of ongoing rural infrastructure projects and to take up new infrastructure projects, the Rural Infrastructure Development Fund (RIDF) was set up with NABARD in 1995-96. The total corpus covering RIDF I (1995-96) to XX (2014-15) is `.1,99,000 crore. Government of Andhra Pradesh has been sanctioned `.10566 crore under RIDF I to XX. Under RIDF XX, Government of India has enhanced the RIDF corpus to `.25000 crore and an additional `.5000 crore was earmarked exclusively for warehousing infrastructure. Thirty four activities are eligible for sanction under RIDF the list of which is given at the end of the chapter. Priority would be given to the incomplete, ongoing projects and new projects which could be completed within 3 years. NABARD Warehousing Scheme

For our country, achieving food security has always remained one of the prime objectives. Although Food grain self sufficiency has largely been achieved proper storage of the produce and thereby minimizing wastage has been a cause of concern till date. To alleviate this problem, NABARD Warehousing Scheme was launched in 2011-12. Under the scheme, loans given by banks towards creation of warehousing infrastructure were refinanced at a concessional rate of interest and support was also extended to State Governments, Public Sector Corporations under RIDF - Warehouse finance window.

To give a fillip to this sector an allocation of `.10,000 crore (in two spells `.5,000 crore each in 2013-14 & 2014-15) was made to NABARD to support creation of infrastructure for storage of agriculrual commodities. Reserve Bank of India issued guidelines for creation of Warehouse Infrastructure Fund in NABARD. With a view to operationalising WIF, NABARD has formulated a scheme viz., NABARD Warehousing Scheme (NWS), 2013-14 and Warehouse Infrastructure Fund (WIF) was created in 2014-15 which envisaged extension of loans for construction of warehouses, silos, cold storages and other cold chain infrastructure. No fresh sanctions are being made after 2014-15 under WIF.

NABARD sanctioned an amount of `.105.70 crore to APSWC under RIDF XVIII for construction of 26 warehouses / godowns and RO has disbursed RIDF loan of `.84.00 crore to APSWC (`.80.296 crore to Andhra Pradesh) for construction of 20 Warehouses / Godowns, so far. The allocation in 2014-15 for the unified state was `.330 crore. In principle approval for of an amount of ` 342 cr. has been accorded to APSWC under WIF 2014-15.

PLP 2016-17 Ananthapuram

NABARD INFRASTRUCTURE DEVELOPMENT FUND (NIDA) NIDA was launched by NABARD to fund infrastructure projects that could not be met using our traditional credit products. These projects typically involved long gestation period with a pay back over a decade or more and a moratorium period of over three years. The fund was created to finance Rural Infrastructure Projects outside RIDF. Assistance under NIDA is available for a period of 15 years with 2 to 3 years repayment holiday. Initially, NIDA was created to support state owned entities. However, the scope of NIDA has been broadened and from the year 2014-15, PPP projects and refinancing of NBFCs and Public Financial Institutions have been made eligible under NIDA. During 2011-12 and 2012-13 an amount of `.140 crore and `.200 crore has been sanctioned to Andhra Pradesh Transmission Company (APTRANSCO) for various power transmission projects under NIDA. A cumulative amount of `.157.26 crore has been disbursed as on 31 March 2015. Under NIDA, there is a possibility to finance one Solar Power Generation Project of 5/ 10 MW proposed by Ananthapuram Muncipal Corporation to meet its own power requirement for pumping of drinking water and street lighting. The savings affected due to establishment of captive solar power plant will suffice to repay the loan & interest amount.

Rural Infrastructure Promotion Fund Despite making remarkable progress under RIDF a number of constraints like inadequate planning, lack of awareness of officials involved in implementation of the projects etc., have been experienced while implementing the RIDF projects. Recognising the need for capacity building of officials, creation of experimental/critical infrastructure of smaller investments with focus on last mile connectivity benefiting the community may generate demand for RIDF funding for other infrastructures of higher order, NABARD has set up a separate fund titled 'Rural Infrastructure promotion Fund (RIPF). The objective of the fund is to support activities required for promotional efforts for RIDF which will include support for conducting knowledge sharing workshops, creation of experimental infrastructure projects by Gram Panchayat, SHG/SHG Federation, Farmers Clubs/FC Federation, and support for survey of potential assessment/demand survey for new agri/rural infrastructure projects. During the year 2014-15, a last mile connectivity project with grant assistance of ` 5.00 lakh was sanctioned for laying a metal road of 320 meters stretch of an incomplete road of 2.5 km in East Godavari District. During the year 2015-16, a project for construction of Market Yard for collective marketing of banana produce of 10 villages in Thotlavalluru mandal of Krishna District has been sanctioned with grant assistance of ` 6.00 lakh, 50% of the Project cost being met by FPO of banana farmers. The project envisages to increase the net income of 500 Banana farmers. 4. Current status of the sector wise critical infrastructure requirements assessed in the Base PLP (a) The sector wise critical infrastructure requirements assessed in the Base PLP have not been grounded for want of funds.

RURAL WATER SUPPLY : There is an acute shortage of drinking water in almost one third of the villages. Various schemes of GoAP and GoI are being tapped for creating the necessary infrastructure, there is still scope for financing under RIDF. In the district there were 167 No Safe Source (NSS) habitations. Most of these habitations are in Penukonda RWS division ( particularly in Kadiri and Nallamada constitutencies) where fluoride level is high. For 84 Public Water Suppy (PWS) Schemes and 37 extension of

PLP 2016-17 Ananthapuram

Community Public Water Schemes (CPWS) Schemes an amount of `.629.35 lakh is estimated. RURAL CONNECTIVITY - Panchayat Raj and Roads & Buildings Departments are entrusted with the responsibility of developing rural connectivity in the district. Roads & Buildings Department is responsible for maintaining 3,201.477 km, the category-wise break-up is given below. Classification Length ( km) State Highways 505.913 Major District Roads 1851.450 Z.P roads taken over 844.114 Total 3201.477

There is potential for expansion of the road network of about 4293 kms under PR Department.

AP Education & Welfare Infrastructure Development Corporation (APEWIDC): The District Administration is also contemplating of providing educational infrastructure of high standards in the district so that quality education can be given to the children of the district that would help them compete well in the state level and national level competitive examinations to secure highly remunerative jobs. Therefore the physical infrastructure of educational institutions can be proposed for financing under RIDF. Major irrigation Projects - To stabilize the ayacut, the TBP-HLC canals have to be maintained properly to prevent excess seepage losses. Thus, the following improvements are required to maintain the registered ayacut. Improvements to High Level Main Canal System: (Modernisation Works) costing about `.1108.16 lakh. Modernisation (Improvements) of Guntakal branch Canal including Alur branch canal that would cost about `.696.49 lakh. Balance works of P.A.B.R.Right Canal including Dharmavaram Branch Canal and Pappur Branch Canal costing about `.1573.00 lakh. Thus, for stabilising the ayacut under Major Irrigation project an amount of `.3377.65 lakh is required.

Minor Irrigation Projects - There are 306 tanks with an ayacut 41953 hectares under the control of minor irrigation department. Besides, there are 2351 tanks under the control of Panchayatraj Engineering Department with 21387 hectares as ayacut. The requirements of funds for treatment of existing water bodies or new structures required along the drainage line is about `.10054.14 lakh. as per the constituency wise requirement assessed by the departments. 4(b)Last Mile Projects (`.lakh) Name of the activity Location & Expected Funds required Mandal benefits Kalludevarahalli LIS Bommanahal 320 ac 480.00 Singanahalli LIS Bommanahal 574 ac 480.00 P C Revu LIS Mudigubba 160 ac DPR under prepn. J rampuram LIS Vajrakarur 900 ac -do- Havaliga LIS Uravakonda 200 ac -do- SriRajapuram LIS Bommanahal 360 ac -do- Ligadahalli LIS Bommanahal 360 ac -do- Banduru LIS Bommanahal 330 ac -do-

PLP 2016-17 Ananthapuram

Haresamudram LIS Bommanahal 300 ac 60.00 Hanakanehal Vidapanakal 142 ac 73.00 4(c) Primary Sector Mission of GoAP - Infrastructure Projects proposed by the line departments Rolling Plans are prepared for achieving double digit growth under primary sector. Under the plans growth engines were identified and requisite infrastructure requirements were spelt out. In Ananthapuram district, the proposed infra projects include (i) total coverage of the district with micro irrigation devices, (ii) community sprinklers to render life saving irrigation to crops during the dry spells, (iii) Developing a horticulture hub (iv) Improving livestock productivity (v) establishment of terminal market with supporting infrastructure such as cold storage, ripening chambers, grading, packing & labeling units (vi) High way bazaars at three places Pamidi, Penukonda, Kodikonda cross for sale of garments, handicrafts & fruits respectively (vii) 1000 MW mega Solar Power plant by NTPC at N P Kunta and another 250 MW by private players at Tadipatri, Mudigubba, Dharmavaram & Hindupur. (viii)Wind farms at different feasible locations with total power generation capacity of 500 MW (ix) promoting silk industry – power loom complex at Hindupur and Handloom clusters at few highly potential locations; Garment making industry at Rayadurg, Genaral Engineering products at Tadipatri have been planned (x)Development of Tourist destinations viz., Lepakshi, Puttaparthy, Penukonda, Gooty, Dharmavarm & Kadiri with historical temples, monuments, forts and with modern spiritual town ship of Puttaparthy as centre of attaraction has been envisaged. 5. Infrastructure requirements in agriculture and allied sector  Conservation of rain water through water harvesting structures like recharge wells; check dams, percolation tanks, farm ponds etc. in a big way  Treatment of problem soils viz., saline and alkaline soils and developing appropriate land use would go a long way in bringing additional area under plough and creating livelihood for the farmers holding these lands.  Promotion of micro irrigation projects (drip & sprinkler) through Andhra Pradesh Micro Irrigation Project (APMIP) in a big way to cover all the bore wells in the district.  Custom hiring centers and agro service centers so that farmers may go for mechanized cultivation.

PLP 2016-17 Ananthapuram

List of Eligible activities under RIDF

Agriculture and related sectors (RIDF Loan: 95%) 1. Minor Irrigation Projects / Micro Irrigation 2. Soil Conservation 3. Flood Protection 4. Watershed Development / Reclamation of waterlogged areas 5. Drainage 6. Forest Development 7. Market Yard / Godown, Mandi, rural haats and other marketing infrastructure 8. Cold storage, Public or Joint sector cold storage at various exit points 9. Seed / Agriculture / Horticulture Farms 10. Plantation and Horticulture 11. Grading and certifying mechanisms such as testing and certifying laboratories etc.. 12. Community irrigation wells of irrigation purposes for the village as a whole 13. Fishing harbour / jetties 14. Riverine Fisheries 15. Animal Husbandry 16. Modern Abattoir 17. Medium Irrigation Projects 18. Mini Hydel Projects / Small Hydel Projects (upto 25 MW) 19. Major Irrigation Projects (already sanctioned and under execution) 20. Village Knowledge Centres 21. Desalination plants in coastal areas 22. Infrastructure for Information Technology in rural areas 23. Infrastructure works related with alternate sources of energy, viz. Solar, Wind etc. and Energy Conservation. 24. 5/10 MW Solar Photovoltaic Power Plan Social Sectors (RIDF Loan : 85%) 1. Drinking Water 2. Infrastructure for Rural Education Institutions 3. Public Health Institutions 4. Construction of toilet blocks in existing schools, where necessary, specially for girls 5. "Pay & use" toilets in rural areas 6. Construction of Anganwadi Centres 7. Setting up of KVIC industrial estates / centres 8. Solid Wasste Management and Infrastructure works related with sanitation in rural areas Rural Connectivity (RIDF Loan : 80%) 1. Rural Roads 2. Rural Bridges

PLP 2016-17 Ananthapuram

10.2 SOCIAL INFRASTRUCTURE INVOLVING BANK CREDIT

10.2.1 Introduction

Social infrastructure such as education, health care, water supply, sanitation, housing, integrated child development services etc., help in human capital formation and human development. High rates of human development indicators will help in economic growth of a country. The provision of drinking water, sanitation, education, and health defines the quality of life of an individual. These services affect day-to-day life of people and have long- term impact in terms of longevity and earning capacity. Piped drinking water which is treated and transported to households is an expensive commodity and more so in a sparsely populated village. However, villagers need good quality potable water as much as anyone else in the country. Swacch Bharat campaign has re emphasised the need of basic amenities for hygiene and dignity of an individual. India is on the cusp of reaping demographic dividend. Education of the young takes centre stage for future growth. Government of India through various programme has strived to achieve ‘Education for All’. To keep the work force active and contributing to the GDP, delivery of health care especially in the rural area has taken priority.

“Social Infrastructure” covering schools, health care facilities, drinking water and sanitation facilities in tier II to tier VI centers have now been brought under the ambit of Priority Sector Lending (PSL) norms and the potential available under this has to be exploited now through public, private investments as well as joint ventures. The following Social Infrastructure are eligible activities under RIDF : 1. Drinking Water 2. Infrastructure for Rural Education Institutions 3. Public Health Institutions 4. Construction of toilet blocks in existing schools, where necessary, specially for girls 5. "Pay & use" toilets in rural areas 6. Construction of Anganwadi Centres 7. Setting up of KVIC industrial estates / centres 8. Solid Waste Management and Infrastructure works related with sanitation in rural areas

10.2.2 Assessment of Credit Potential for 2016-17 (`. lakh)

Base PLP(2012-13 PLP (2016-17) to 2016-17) Activity Unit Bank Phy TFO Phy TFO Bank Fin Fin Schools - primary No. 50 750.00 600.00 Schools – secondary No. 30 750.00 600.00 Schools – higher secondary No. 20 900.00 720.00 Health care centers No. 50 1000.00 800.00 Drinking water schemes No. It’s a new chapter in 50 2500.00 2000.00 Water purification plant (RO No. the PLP hence no 75 375.00 300.00 projections were plant) made in the Base PLP Sanitation facilities - ISL No. 50000 10000.00 8000.00 Sanitation facilities – CC Roads 100 2000 1000.00 800.00 with drainage lines on either mts mts side of the road Total 17275.00 13820.00 The bank loan portion is taken at 75% of the TFO.

PLP 2016-17 Ananthapuram

10.2.3 Availability of Infrastructure, critical gaps & interventions required, action points/issues to be addressed

In the normal course, people expect the state government or PRI bodies (i.e., Zila Parishad/ MPP/Gram Panchayats) to create social infrastructure such as schools, health care centers and village internal roads and drainage as welfare measures. However in the post economic reforms period, infrastructure facilities are created on Build, Operate and Transfer (BOT) mode and user fee is collected from the public. Therefore, State Government, PRI bodies, Muncipal bodies, even Community Based Organisations, Residential Welfare Organisations etc., can think of availing bank loan for creation of desired social infrastructure so that it can be repaid by levying certain tax/ cess/ user fee /pro –rata instalment from all those who utilize such infrastructure facility.

In Ananthapuram district there are 3116 primary schools, 929 upper primary schools and 674 high schools. Out of 3447 habitations, as many as 630 habitations do not have a primary school within 2.0 kms distance. 2719 habitations do not have a upper primary school within 2 kms distance. 2989 habitations do not have a high school within 2.0 Kms.

Drinking water facility in Villages : Out of 3378 inhabited villages, 9 villages do not have drinking water at all. Another 48 are facing perennial water problem. They have the source at a long distance and require tanker to fetch water, moreover as many as 833 villages are having high fluorides in the drinking water and another 16 villages have brackish water, which is a serious concern. Medical facilities in villages : Only 507 out of 3447 habitations are having medical facility. 2871 habitations do not have medical facility within 2.0 kms distance.

While public sector is expected to play dominant role, private sector participation is also forthcoming. Therefore it is proposed that the gap in the social infrastructure shall be met by public sector and private sector in 55 : 45 proportion and the investments perhaps come in the staggered manner and it is assumed that the gap will be filled up one- third every year in the next three years. Accordingly the potential for 2016-17 has been arrived at.

Critical issues which affect realization of potential & interventions required to create a definite impact are given under:  Whenever a PRI body raises resources by way of loan for creating social infrastructure, Government should support such initiative by standing as guarantor.  Bankers should finance the social infrastructure proposals of any non government stakeholders on a liberal terms & conditions. Action Points for Banks and Govt. Departments  The District Administration and other line departments particularly the engineering departments may create awareness and give adequate publicity on the aforesaid credit facilities available with banks.  Bankers should devise appropriate products/ schemes for financing social infrastructure.

PLP 2016-17 Ananthapuram

CHAPTER – 11

INFORMAL CREDIT DELIVERY SYSTEM 1. Introduction

In Anantapur, SHG movement has its roots in South Asian Poverty Alleviation Programme (SAPAP) implemented in seven mandals in the year 1995 under UNDP. The objective of the programme was to combat rural poverty through social mobilization and active participation of beneficiaries in grass roots development. It relied on a three pronged strategy i.e. social mobilization of the poor, skill development and capital formation. The poor were organised at three levels: through small homogenous SHGs at hamlet/ sub- hamlet level, village level organisations and the mandal level mahila mandal samakhyas. Development programmes like literacy, preventive health care, girl child education, elimination of child labour etc., were dovetailed to the SHG concept under the programme. The project was extended to the remaining mandals and presently the entire district is covered under the project, Velugu / Indira Kranti Patham (IKP). The project aims to build strong institutions of the rural poor and enhance their livelihood opportunities so that the vulnerability of poor is reduced. Society for Elimination of Rural Poverty (SERP), an autonomous body registered under the Societies Registration Act, has been established for management of Velugu/ IKP through DRDAs at the district level. Development agenda of the state in the last few years, of placing the poor people especially women in the forefront has enabled the formation of large number of self-help groups throughout State. The state government is making efforts to assist SHGs by providing revolving fund/ interest subsidy under various programmes. SERP has relentlessly worked on a unique structure of community based organization by organizing rural women into organizing 11.69 crore rural women into 10.73 lakh SHGs, 45111 Village Organizations, 1099 Mandal Samakhyas and 22 Zilla Samakhyas in the undivided state of Andhra Pradesh. 52492 SHGs, 2572 Village Organizations, 63 Mandal Samakhyas and one Zilla Samakhya are established in Ananthapuram district.

2. Status of SHG-BLP

The total number of SHGs in the district as on 31 March 2015 stood at 52492 of which 50046 SHGs have been credit linked and the outstanding amount in respect of these SHGs stood at `1106.95 crore as on 31 March 2015. The average credit outstanding per SHG works out to `2.22 lakh. The recovery position of SHG has been reported to be satisfactory in as much as only 6.17% of the amount outstanding was reported to be overdue. Nonetheless, there are reports of non-repayment by SHGs during the last one year, especially in the wake of announcement of debt waiver. The DRDA has planned to sanction new limits to 4523 SHGs and renew existing limits of 34132 SHGs, totaling to 38655 SHGs and `1159.73 crore during 2015-16. National Rural Livelihood Mission (NRLM) National Rural Livelihood Mission (NRLM) – ‘Aajeevika’ has been launched by MORD, GOI, by restructuring and replacing the existing Swarnajayanti Gram Swarozgar Yojana (SGSY) with effect from 01 April 2013. NRLM is the flagship program of Govt. of India for promoting poverty reduction through building strong institutions of the poor, particularly women, and enabling these institutions to access a range of financial services and livelihoods services. NRLM is a Centrally Sponsored Scheme and the financing of the programme would be shared between the Centre and the States in the ratio of 75:25. NRLM would reach all districts by the end of 12th Five-year Plan. NRLM focuses on building, nurturing and strengthening the institutions of the poor women, including the SHGs and their Federations at village and higher levels. In addition NRLM will promote livelihoods institutions of rural

PLP 2016-17 Ananthapuram poor. The mission will provide a continuous hand-holding support to the institutions of poor for a period of 5 – 7 years till they come out of abject poverty. The support from NRLM will include all round capacity building of the SHGs ensuring that the group functions effectively on all issues concerning their members, financial management, providing them with initial fund support to address vulnerabilities and high cost indebtness, formation and nurturing of SHG federations, making the federations as strong support organizations, making the livelihoods of the poor sustainable, formation and nurturing of livelihoods organizations, skill development of the rural youth to take up self-employment activities. Under Interest Subvention Scheme for SHGs under NRLM, all women SHGs will be eligible for interest subvention to avail credit upto `. 3 lakhs at 7% per annum. Banks (PSBs, RRBS and Cooperative Banks) will lend to all the women SHGs upfront at 7% interest per annum. Women SHGs who will repay in time will get an additional subvention of 3%, reducing the effective rate of interest to 4%. Government of Andhra Pradesh has an ongoing 4% interest subvention scheme for loans issued to SHGs upto `5.00 lakh making the effective rate of interest 'Nil“. Apart from that, under Stree Nidhi, a cooperative bank of SHGs, Government is also extending financial support to SHG members. NRLM is presently working in 1009 blocks in an ‘intensive’ mode. Of these, 50 blocks are being developed as resource blocks to create local human and social capital (IoPs, CRPs - Community Resource Persons, etc.) that would support in implementing NRLM in other blocks. The implementation in resource blocks is supported by National Resource Organisations (NROs) such as SERP (AP), Jeevika (Bihar), Kudumbashree (Kerala) etc. In about 50 blocks, NRLM is partnering with existing Federations and NGOs to saturate the block. In the remaining intensive blocks, the NRLM is fielding its field implementation teams.

Status of NRLM in Ananthapuram

NRLM is being implemented in all the 63 Mandals of the district. Under ‘Vaddil Leni Runalu’ state government makes payment of the total interest portion of the eligible SHG loans. Whereas, under NRLM, all women SHGs will be eligible for interest subvention to avail credit upto `. 3 lakhs at 7% per annum. Further, Women SHGs who will repay in time will get an incentive of 3%, reducing the effective rate of interest to 4%. State Government while reckoning the sum of interest payable to banks in respect of the SHG loans take into account the aforesaid interest subvention and incentive.

Implementation of Anchor Agency scheme in LWE affected districts The Society for Elimination of Rural Poverty (SERP) has been coordinating as an Anchor Agency to implement the WSHG scheme in 8 LWE districts of the State on priority basis as per GOI/ HO instructions. MoU has been signed between the major banks and SERP in all 8 districts so far. Except West Godavari, Kadapa, Chittoor, Nellore & Krishna districts all districts are in Andhra Pradesh are identified as LWE affected districts.

State initiatives

Vaddi Leni Runalu (VLR) With a view to incentivize prompt payment, and to make the rural enterprises more remunerative, Government of A.P started Pavala Vaddi scheme under which interest on all bank loans upto `. 5.0 lakh was available at just 3% roI per annum and the differential of actual interest charged and the 3% (Pavala Vaddi) was reimbursed directly to SHGs. From 1st Jan 2012, the Pavala Vaddi scheme was also converted into ‘Vaddil Leni Runalu’ under which total interest reimbursement is being made by the Government to further strengthen

PLP 2016-17 Ananthapuram the viability of rural enterprises. The PV as well as VLR till now was reimbursed to SHGs based on their prompt repayment.

From July 2012 onwards, the VLR scheme was modified under which SHGs have to pay only the principal portion, called SHG portion of the EMI, and the rest of the EMI is credited directly by the Government into the loan accounts of SHGs. The SHG portion of the EMI is arrived at by dividing the loan amount by number of instalments. The present administration of the scheme is ‘Vaddi Leni Runalu’ in its true sense.

In case of cash credit limit, entire interest charged by the bank is credited back by the government provided the SHG has paid at least 3% of the previous month’s loan outstanding. *Source SERP

Capital Infusion to SHGs- a special programme The State is having around 90 lakh SHG members, out of which around 75 lakh SHG members are active. The State Government has initiated a programme to infuse capital @ `. 10,000/- each to these active members of the SHGs existing as on March 2014. The 1st instalment of capital infusion @ `. 3,000/- per member has been credited to the savings bank account of SHGs along with the interest payable on their bank loans to the respective loan accounts. The main motive behind the capital infusion is to support SHG members with enhanced credit limits, through various economic activities. NABARD Support : NABARD provides financial support by way of grant for capacity building of partner agencies viz., NGOs, Banks, Govt. officials and also capacity building of primary stakeholders i.e., SHG leaders & members through basic trainings, Micro Enterprise Development Programmes (MEDPs), exposure visits to successful SHGs, financing banks/institutions, other pioneering mF initiatives etc.. 3. Issues related to micro finance

The SHG portfolio is the major portfolio in rural bank branches in the district, the other being crop loans. The strong network of SERP/IKP/DRDA personnel in the district has contributed to the growing SHG loan portfolio. a. Asset Creation & Micro enterprise development - Given the huge number of SHGs and credit limits availed by SHGs, the focus should be on asset and livelihood creation. This did not seem to have happened to the expected level. The economic activities taken up by group members are dairy, ram lamb rearing, rope making, vegetable /fruit vending, small business, etc., They also pursue activities like papad making, basket making, pickle making and other such activities. To encourage SHG women to take up Dairy Development activity, 24 Bulk Milk Cooling Units with capacity ranging between 1000 lpd and 5000 lpd were established in the district. However at present only few of them are functioning where as others are lying idle. Similarly more than 1000 Pala Pragathi Kendras were established by groups, yet again majority of the units disposed off on account of failures and losses.

b. Monitoring performance and repayment - The Project Velugu (erstwhile IKP) has developed/ evolved certain sound implementation strategies which inter alia include Community Recovery Mechanism (CBRM) at bank branch level, institution of Bank Mitra for poorly staffed bank branches, bank linkage committees at federation level, etc.. However, there is a need to strengthen especially CBRM at branch level in the wake of growing concerns over the increasing overdues in respect of SHG lending.

PLP 2016-17 Ananthapuram

c. Other issues - The other issues in the SHG-Bank Linkage programme in the district include the following:

 Lack of monitoring / supervision by banks. CBRM meetings are not held by many bank branches.  No proper credit appraisal or rating of SHGs before extending bank loan  Inadequate training to bank staff

Micri Finance Institutions (MFIs) – Issues

There were four major issues with MFIs with regards to their operational methodology viz. charging usurious rates of interest including levying of other charges, recovery of loans in weekly installments, multiple loans to a single borrower/group, opaqueness in operations and coercive recovery methods adopted. These Issues with MFIs have necessitated boosting of SHG bank-linkage.

NABARD’s Strategic Focus on SHG-BLP (2013-17)

 All eligible poor rural households in the country to be covered through SHGBLP by March 2017. • Strategic shift from State/District-based planning for SHG-BLP to Block/ Village based planning, to address the issue of intra-district imbalances in promotion of SHGs. • Special schemes to revive dormant SHGs through effective capacity building and hand holding support. • Initiate additional financial literacy drive at the SHG level to eliminate over indebtedness at the member-level, especially in high SHG density States. • Focus on convergence of SHG-BLP and Financial Inclusion (FI) initiatives. • Priority to shift from promotion of SHGs to provide livelihood opportunities to the SHG members in a calibrated manner through skill building, production optimisation, value chain facilitation and market linkage. • Community based organizations to be encouraged as the nodal points for promoting livelihood activities of members of SHGs. • Convergence with Government Programmes like National Rural Livelihood Mission (NRLM) to maximise benefits to the SHG members.

4. Road map for the future

The roadmap for the future to take the robust SHG structure in the district to a higher trajectory should focus on creation of assets by SHG members at individual level or group level, increasing income levels by taking productive activities, strengthening recovery mechanism, etc. The roadmap for extending the outreach and having a meaningful impact of SHG-BLP may include the following:

i. Identification of potential activities for setting up of Micro Enterprises and motivating members for taking up the activity, training and capacity building of identified SHG members who are availing higher doses of finance under the programme.

ii. Need to identify dormant groups and initiate steps for their revival iii. Training and capacity building of stakeholders including bank branches and other staff of banks.

PLP 2016-17 Ananthapuram

iv. Strengthening supervisory and monitoring mechanism over SHGs at branch level;

v. Strengthening recovery mechanism at branch/mandal level.

5. Estimation of Potential under SHG-BLP

All eligible poor rural households in the district need to be covered under SHG-BLP by 31 March 2017. Accordingly, all the blocks in the district need to be saturated with SHGs by 31 March 2017. The number of SHGs as on 31 March 2015 stood at 52492. The promotion of new SHGs may be limited to only some areas where addition to women population occurs due to marriages, etc.. While arriving at the potential for financing, it is assumed that all the SHGs are eligible for availing bank finance during the year 2016-17 in view of switching over to cash credit system from term loans. SERP indicated that the drawing power of SHGs would increase by `. 50000 p.a. The potential for credit linkage of the SHGs has been estimated, based on the repayment and drawing power of SHGs. The cumulative drawing power (dp) including expected increment is `. 1169.0 crore for the current year, 2015-16. Block-wise potential for savings linkage and credit linkage of SHGs during 2016-17 is given in the Annexure VI (A) & VI (B)

Table: SHG-Bank Linkage Programme in the District (`. lakh) Agency 2014-15 2015-16 (up to 30.6.2015) No. of SHGs credit Loans Bank Loan issued Loan o/s No. of SHGs Bank loan linked o/s at at end of credit (Rs. beginnin the year linked lakh) g of the year Fresh Repeat Fresh Repeat Fre Repe Fres Repeat sh at h CBs 296 8494 49655 150 28340 60675 0 306 0 1173 RRBs 374 7401 40950 185 23005 49505 0 294 0 1127 DCCB 10 700 395 5 200 515 0 0 0 0 Total 680 16595 91000 340 51545 110695 0 600 0 2300

Projection for SHG lending during 2016-17 (`. lakh) Base PLP PLP 2016-17 (2012-13 to 2016-17) Particulars No of SHGs Amount No of Amount SHGs Fresh groups 1000 500 3132 10278 Repeat groups 22500 87671 37410 151934 Total 23500 88171 40542 162212

6. Financing through Joint Liability Groups (JLGs)

A large number of small, marginal and tenant farmers do not have access to credit from banking institutions for various reasons which inter alia, include very small land holdings, inability of banks to serve more number of clients individually, lack of proper titles, etc.. Various committees including the Committee on Financial Inclusion has specifically mentioned about the need for covering tenant farmers by banks so as to further the process of Financial Inclusion. The extent of exclusion among tenant farmers is high who constitute 23% of total farmers. The JLG mode of financing serves as collateral substitute for loans provided to these clientele. It enables the banks to reach farmers through group approach, adopt cluster approach, facilitate peer

PLP 2016-17 Ananthapuram education and credit discipline. Hence, the banks in the district may increase their financing to the small, marginal, tenant farmers and oral lessees through JLG mode of financing. Government of Andhra Pradesh has enacted an act to provide Licenced Cultivators Eligibiity Cards (LECs) to tenant and oral lessee farmers so that they could access credit from pubic financial institutions. As the credit dispensation to these farmers has not been satisfactory, NABARD has been advocating formation of JLGs of LEC card holder to access credit from banks. Keeping in view the LEC cards issued by the Revenue Department in the last three years and potential available for organizing JLGs amongst shepherds and other artisans/ craftsmen a moderate potential of 2640 JLGs (15 JLGs each for 176 rural branches) to the tune of `. 1320.00 lakh has been estimated for 2016-17.

PLP 2016-17 Ananthapuram

CHAPTER - 12

AREA BASED SCHEMES

Considering large number of small and marginal farmers and people below the poverty line and as also the extensiveness of agriculture and rural development there is a need for promoting single purpose small scheme on a cluster basis which was aggregated into area development scheme. These cluster based single purpose small projects taken together reckoned as Area Development Projects / Schemes (e.g. financing of sericulture farmers, sheep rearers/ breeders, horticulture farmers etc.) and can be sanctioned by a single bank or by a number of banks. Besides the exigency of economic development of the people at large, it facilitates planning and execution of infrastructure viz., backward and forward linkages for full realization of the benefits of the projects / schemes. Those backward and forward linkages could also be planned and executed with credit support. If the needs of inter-related activities are addressed in a focused manner, the overall results will be self sustaining. Implementation of the area development plans would also fulfill the objective of scientific lending and creation of quality assets through infrastructural and subsidy support from State Government, if any, and credit support by Banks with refinance assistance from NABARD.

6.1 Area Development scheme on Sericulture

Introduction:

Sericulture is an important source of subsidiary income to small / marginal farmers, agricultural labourers and women. There is a possibility of finding employment throughout the year for many persons through sericulture. Sericulture forms the chief livelihood for many a farmers in certain pockets of the district namely Hindupur, Somandepalli, Lepakshi, Madakasira, Nallamada and Kalyandurg mandals where necessary linkages and department support services are available to the farmers. Sericulture activity could yield sustainable income to the farmers even during the times of drought.

Project Area: Operational area of the project included cluster of villages from each of the seven sericulture divisions namely Ananthapuram, Dharmavaram, Hindupur, Kadiri, Kalyandurg, Madakasira & Kalyandurg. The Assistant Directors heading each Seri – division have identified the farmers and furnished the list. About 660 farmers were identified from 100 villages. The identified villages have the scope for strengthening the activity which traditionally been practiced there.

Unit Size: One acre of Mulberry cultivation that would support 250 DFL in one cycle and four to five cycles are possible in a year.

Unit Cost: (`. lakh) Activity Units Unit cost Margin money Net Bank + Subsidy Loan Mulberry cultivation (V-1 variety) with ac 50300 10500 39800 one year maintenance Silk worm rearing (One cycle) 18000 3000 15000 Construction of rearing shed 275000 100000 175000 (50’X20’X15’) Rearing stands & other equipment 70000 35000 35000 Total 264800

PLP 2016-17 Ananthapuram

Backward - Forward linkages  All the farmers involved shall be trained on scientific ailk worm rearing and mulberry cultivation.

 The Department shall arrange for quality inputs to the farmers.

 The farmers requisitions for eligible subsidies under the on-going schemes shall be sanctioned and released by the department.

 Department personnel shall inspect the Mulberry gardens and rearing sheds for on-site guidance to the farmers.

 The farmers shall be motivated to take up community disinfection of rearing sheds.

 The Department shall facilitate arranging drip sets for all the seri-farmers.

 The Department shall endeavour to organize farmers in creating community facility centres.

 Providing market information and also need based intervention shall ensure remunerative prices to the farmers.

Physical and Financial Programme (`. lakh) Major Banks in the No. of Physical identified Cluster/ Seri- Financial Outlay branches (Units) division 2015-16 2016-17 2015-16 2016-17 I. Ananthapuram SBI(ADB) 1 5 5 13.24 13.24 Syndicate bank 1 5 5 13.24 13.24 APGB 2 7 7 18.54 18.54 Total 4 17 17 45.02 45.02 II. Dharmavaram APGB 2 7 8 18.54 21.18

III. Penukonda APGB 3 39 40 103.27 105.92 Canara bank 1 20 20 52.96 52.96 SBI 2 10 10 26.48 26.48 Total 6 69 70 182.71 185.36 IV. Madakasira Karnataka Bank 1 10 10 26.48 26.48 Syndicate Bank 1 10 10 26.48 26.48 Andhra ank 1 10 10 26.48 26.48 APGB 2 25 25 66.20 66.20 ADCC Bank 1 10 10 26.48 26.48 Total 6 65 65 172.12 172.12 V. Kalyandurg Syndicate Bank 2 24 25 63.55 66.20 APGB 3 36 35 95.33 92.68 ADCC Bank 1 12 10 31.78 26.48 SBI 2 24 30 63.55 79.44 Total 8 96 100 254.21 264.80 VI. Hindupur SBI 1 10 10 26.48 26.48

PLP 2016-17 Ananthapuram

SBH 1 10 10 26.48 26.48 Andhra bank 1 10 10 26.48 26.48 APGB 1 10 10 26.48 26.48 Syndicate Bank 1 10 15 26.48 26.48 Total 5 50 55 132.40 145.64 VII. Kadiri SBI(ADB) 1 10 10 26.48 26.48 APGB 3 10 12 26.48 31.78 Total 4 20 22 52.96 58.26 Grand Total 35 317 337 839.42 871.20 654 1710.62

6.2 Area Development scheme on Sheep Rearing

Sheep and goat rearing is a popular economic activity in rainfed areas of the district among small/marginal farmers and agricultural labourers. There are also good numbers of traditional shepherd families whose chief livelihood is sheep rearing. The activity is popular among the above category farmers the sheep are reared by grazing on various types of vegetation and in the grazing lands available in the vicinity with no additional cost on feeding. The activity is also largely undertaken by the beneficiaries identified under different Government Sponsored Programmes. As per the live stock census, 2012 there were 3879800 sheep, in the district. The district is on the top in terms of small ruminant population. There are 214 sheep breeders’ societies in the district and more than 40000 traditional shepherd households in the district.

There are many shepherds in the proposed area who are keen to take up the activity. However, for reasons like non-availability of finance many have moved away from the activity. The sheep rearing has been proven profitable for the farmers over the years. The district is having adequate resources and huge demand for consumption of meat, but the farmers are unable to cater to the demand of the consumers. The shepherds and landless farmers are also willing to take up but not accessed credit from banks.

Project Area: Based on the potential and the suitability the proposed project is planned to implement in 7 mandals namely Rapthadu, Atmakuru, Kanaganipalli, Ramagiri, B K Samudram, Pamidi & Kalyandurg of Ananthapuram district. In each mandal about 100 JLGs (of 4 members each) shall promoted under the scheme.

Unit Size: 20+1 for individual beneficiary Unit Cost: Project Cost of 20+1 unit is about Rs. 1.00 lakh

Backward and Forward linkages  AH department would ensure availability of suitable breeds from the local mandies and facilitated the farmers during the purchase of sheep units by involving the veterinary department.  AD, AH-Sheep, Integrated Sheep Development Programme (ISDP) is exclusively looking after the sheep development in the district. They would organise awareness camps on scientific management and disease control of sheep from time to time by involving sheep societies.  Veterinary and AI services would be arranged to each of the identified farmers through Department of Animal Husbandry  Proper Support from Department would be available for supply of De-worming medicine twice a year on 100% subsidy, supply of all types of vaccines on free of cost, special health camps will be organized at every village by the State Govt.

PLP 2016-17 Ananthapuram

subsidised insurance, accidental insurance coverage of 1.0 lakhs to the shepherds and supply of breeding rams on subsidy to prevent In-breeding  Govt would popularise the Sheep Insurance Scheme being implemented with 66% subsidy in the premium payable to prevent losses of livestock to the poorest of the poor.  Local demand for sheep meat is very high and hence there would be no problems in marketing of sheep.

Subsidy: At present there is no subsidy available from GoI as well as state government

Physical and Financial Programme:The financial requirement under the project will be met through margin money from entrepreneurs and bank loan. The details are furnished below. Banks are eligible for refinance @90% on Bank loan under Automatic Refinance Scheme of NABARD.

(`. lakh) Physical Programme Financial Outlay (` lakhs) Major Banks in the No. of (Units) cluster branches 2015-16 2016-17 2015-16 2016-17 Rapthadu Mandal APGB(RRB) 2 110 160 110 160 Canara bank 1 50 80 50 80 Atmakur Mandal Syndicate Bank 1 80 120 80 120 SBI 1 80 120 80 120 Kanaganipalli Mandal ABFL 110 160 110 160 SBI 1 50 80 50 80 Ramagiri Mandal APGB(RRB) 3 120 180 120 180 Canara Bank 1 40 60 40 60 B K Samudram Mandal SBI 1 100 100 100 100 ABFL 100 100 100 100 Pamidi Mandal APGB 1 50 50 50 50 ABFL 50 50 50 50 Kalyandurgam Kambadur SBI 1 40 60 40 60 ABFL 30 40 30 40 APGB 1 30 50 30 50 Total 1040 1410 1040 1410

Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT STATE : Andhra Pradesh (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

MINOR IRRIGATION BOREWELLS & SMP No. 1.155 1.040 200 207.90 5 5.20 4 4.16 4 4.16 8 8.32 40 41.58 0.00 8 8.32 SMP SETS No. 0.660 0.594 1715 1018.71 100 59.40 101 59.99 100 59.40 90 53.46 100 59.40 110 65.34 85 50.49 100 59.40 EM/Oil Engines No. 0.308 0.277 525 145.53 35 9.70 25 6.93 20 5.54 20 5.54 15 4.16 20 5.54 20 5.54 20 5.54 DRIP IRRIGATION SETs Ha. For Sweet Orange ac 0.407 0.102 2200 223.85 115 11.70 105 10.68 310 31.54 105 10.68 115 11.70 165 16.79 120 12.21 160 16.28 For Mango ac 0.380 0.095 350 33.25 25 2.38 25 2.38 25 2.38 25 2.38 25 2.38 25 2.38 25 2.38 20 1.90 For Pomegranate ac 0.457 0.114 500 57.13 35 4.00 30 3.43 30 3.43 30 3.43 40 4.57 35 4.00 30 3.43 30 3.43 For Papaya ac 0.937 0.234 300 70.28 20 4.69 20 4.69 20 4.69 20 4.69 20 4.69 20 4.69 15 3.51 20 4.69 For Sapota ac 0.359 0.090 200 17.95 10 0.90 10 0.90 10 0.90 10 0.90 20 1.80 10 0.90 15 1.35 10 0.90 For Watermelon/ Muskmelon ac 0.660 0.165 500 82.50 35 5.78 30 4.95 30 4.95 30 4.95 40 6.60 35 5.78 30 4.95 30 4.95 For Vegetables ac 1.298 0.325 2000 649.00 100 32.45 210 68.15 110 35.70 100 32.45 100 32.45 110 35.70 200 64.90 100 32.45 For Mulberry cultivation ac 0.926 0.232 1300 300.95 100 23.15 100 23.15 100 23.15 50 11.58 100 23.15 50 11.58 100 23.15 50 11.58 SPRINKLER IRRIGATION SETS FOR 2 HA Ha. 0.376 0.094 4500 423.00 215 20.21 225 21.15 435 40.89 150 14.10 150 14.10 250 23.50 250 23.50 400 37.60 PIPE LINES - '00 Mtrs 0.231 0.208 4400 914.76 250 51.98 250 51.98 250 51.98 250 51.98 250 51.98 300 62.37 300 62.37 300 62.37 Sub Total : Minor Irrigation 4144.80 231.52 258.36 268.69 200.28 225.28 280.12 257.78 249.40

FARM MECHANISATION TRACTORS WITH IMPLEMENTS No. 7.875 5.906 525 3100.78 35 206.72 35 206.72 35 206.72 25 147.66 35 206.72 25 147.66 35 206.72 35 206.72 MINI TRACTOR WITH IMPLEMENTS No. 4.725 4.016 290 1164.71 19 76.31 17 68.28 19 76.31 17 68.28 19 76.31 17 68.28 19 76.31 17 68.28 ROTAVATOR No. 1.029 0.823 60 49.39 3 2.47 3 2.47 3 2.47 3 2.47 3 2.47 3 2.47 3 2.47 3 2.47 TRACTOR DRAWN IMPLEMENTS No. (a) 9 Tyne spring Loaded cultivator No. 0.284 0.241 1780 428.94 110 26.51 116 27.95 103 24.82 110 26.51 115 27.71 110 26.51 103 24.82 110 26.51 Seed cum Fertiliser Drill (Manual) No. 0.305 0.259 50 12.94 3 0.78 4 1.04 3 0.78 4 1.04 3 0.78 3 0.78 3 0.78 3 0.78 Seed cum Fertiliser Drill (Automated) No. 0.599 0.509 200 101.75 12 6.10 12 6.10 12 6.10 12 6.10 12 6.10 12 6.10 12 6.10 12 6.10 Other Agricultural Implements - MB Plough & Seed cum Fertiliser Drill (Animal drawn) No. 0.095 0.047 2000 94.50 125 5.91 125 5.91 125 5.91 125 5.91 125 5.91 125 5.91 125 5.91 125 5.91 Ground Nut Decorticator No. 0.473 0.378 200 75.60 12 4.54 12 4.54 12 4.54 12 4.54 12 4.54 12 4.54 12 4.54 12 4.54 MULTI CROP THRESHER No. 1.050 0.840 300 252.00 18 15.12 18 15.12 18 15.12 18 15.12 18 15.12 22 18.48 18 15.12 23 19.32 MAIZE DEHUSKER CUM SHELLER with 2.0 HP Engine No. 0.462 0.370 20 7.39 1 0.37 1 0.37 1 0.37 1 0.37 2 0.74 1 0.37 1 0.37 2 0.74 PADDY COMBINED HARVESTERS No. 21.000 15.750 1 15.75 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 TRANSPLANTOR No. 15.750 11.813 1 11.81 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Lazer guided land leveller No. 3.675 2.756 2 5.51 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 2.76 0 0.00 0 0.00 Solar Fencing with five lines and 7' poles No. 0.630 0.473 20 9.45 1 0.47 1 0.47 1 0.47 2 0.95 1 0.47 2 0.95 1 0.47 2 0.95 Sub Total : Farm Mechanisation 5330.52 345.29 338.96 343.60 278.93 346.86 284.78 343.60 342.30

PLANTATION & HORTICULTURE FLORICULTURE ac 0.760 0.380 60 22.80 10 3.80 4 1.52 0.00 6 2.28 12 4.56 2 0.76 0.00 3 1.14 MANGO ac 0.504 0.252 2000 504.00 125 31.50 115 28.98 110 27.72 100 25.20 225 56.70 110 27.72 105 26.46 110 27.72 MANGO REJUV ac 0.210 0.105 110 11.55 0.00 25 2.63 0.00 25 2.63 0.00 20 2.10 0.00 CITRUS ac 0.502 0.251 2250 564.75 300 75.30 70 17.57 290 72.79 275 69.03 75 18.83 70 17.57 75 18.83 75 18.83 GUAVA ac 0.350 0.175 90 15.75 6 1.05 6 1.05 6 1.05 5 0.88 6 1.05 4 0.70 4 0.70 6 1.05 BER ac 0.300 0.075 85 6.38 4 0.30 4 0.30 5 0.38 5 0.38 4 0.30 4 0.30 5 0.38 4 0.30 POMOGRANATE ac 0.588 0.294 400 117.60 25 7.35 20 5.88 25 7.35 35 10.29 25 7.35 25 7.35 25 7.35 40 11.76 SAPOTA ac 0.308 0.154 175 26.95 11 1.69 10 1.54 15 2.31 10 1.54 10 1.54 5 0.77 5 0.77 5 0.77 GRAPE ac 2.909 1.455 200 290.90 10 14.55 10 14.55 20 29.09 15 21.82 20 29.09 10 14.55 15 21.82 15 21.82 BANANA (TC) ac 0.801 0.401 1000 400.50 50 20.03 25 10.01 60 24.03 50 20.03 50 20.03 75 30.04 40 16.02 40 16.02 PAPAYA ac 0.984 0.492 400 196.80 100 49.20 0 0.00 90 44.28 0 0.00 0 0.00 0 0.00 0 0.00 90 44.28 NURSERIES FOR RAISING VEGETABLE SEEDLINGS ac 20.000 10.000 50 500.00 4 40.00 2 20.00 4 40.00 0.00 6 60.00 1 10.00 2 20.00 5 50.00 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

MINOR IRRIGATION BOREWELLS & SMP No. 1.155 1.040 0.00 35 36.38 4 4.16 4 4.16 35 36.38 8 8.32 45 46.78 200 207.90 SMP SETS No. 0.660 0.594 100 59.40 250 148.50 80 47.52 85 50.49 85 50.49 70 41.58 215 127.71 44 26.14 1715 1018.71 EM/Oil Engines No. 0.308 0.277 25 6.93 45 12.47 20 5.54 55 15.25 50 13.86 50 13.86 55 15.25 50 13.86 525 145.53 DRIP IRRIGATION SETs Ha. For Sweet Orange ac 0.407 0.102 110 11.19 115 11.70 120 12.21 160 16.28 165 16.79 120 12.21 110 11.19 105 10.68 2200 223.85 For Mango ac 0.380 0.095 20 1.90 20 1.90 20 1.90 20 1.90 15 1.43 20 1.90 20 1.90 20 1.90 350 33.25 For Pomegranate ac 0.457 0.114 30 3.43 30 3.43 30 3.43 30 3.43 30 3.43 30 3.43 30 3.43 30 3.43 500 57.13 For Papaya ac 0.937 0.234 15 3.51 20 4.69 20 4.69 15 3.51 15 3.51 20 4.69 20 4.69 20 4.69 300 70.28 For Sapota ac 0.359 0.090 15 1.35 0 0.00 15 1.35 10 0.90 15 1.35 15 1.35 15 1.35 20 1.80 200 17.95 For Watermelon/ Muskmelon ac 0.660 0.165 30 4.95 30 4.95 30 4.95 30 4.95 30 4.95 30 4.95 30 4.95 30 4.95 500 82.50 For Vegetables ac 1.298 0.325 100 32.45 100 32.45 100 32.45 150 48.68 200 64.90 100 32.45 100 32.45 120 38.94 2000 649.00 For Mulberry cultivation ac 0.926 0.232 50 11.58 100 23.15 100 23.15 50 11.58 100 23.15 100 23.15 50 11.58 100 23.15 1300 300.95 SPRINKLER IRRIGATION SETS FOR 2 HA Ha. 0.376 0.094 375 35.25 275 25.85 200 18.80 350 32.90 225 21.15 400 37.60 200 18.80 400 37.60 4500 423.00 PIPE LINES - '00 Mtrs 0.231 0.208 300 62.37 300 62.37 250 51.98 250 51.98 300 62.37 290 60.29 285 59.25 275 57.17 4400 914.76 Sub Total : Minor Irrigation 234.31 367.84 212.12 245.99 303.75 245.77 339.31 224.30 4144.80

FARM MECHANISATION TRACTORS WITH IMPLEMENTS No. 7.875 5.906 25 147.66 35 206.72 30 177.19 35 206.72 35 206.72 35 206.72 35 206.72 35 206.72 525 3100.78 MINI TRACTOR WITH IMPLEMENTS No. 4.725 4.016 19 76.31 17 68.28 19 76.31 17 68.28 19 76.31 19 76.31 19 76.31 17 68.28 290 1164.71 ROTAVATOR No. 1.029 0.823 4 3.29 4 3.29 4 3.29 5 4.12 5 4.12 5 4.12 4 3.29 5 4.12 60 49.39 TRACTOR DRAWN IMPLEMENTS No. (a) 9 Tyne spring Loaded cultivator No. 0.284 0.241 115 27.71 110 26.51 105 25.30 115 27.71 115 27.71 116 27.95 113 27.23 114 27.47 1780 428.94 Seed cum Fertiliser Drill (Manual) No. 0.305 0.259 3 0.78 3 0.78 3 0.78 3 0.78 3 0.78 3 0.78 3 0.78 3 0.78 50 12.94 Seed cum Fertiliser Drill (Automated) No. 0.599 0.509 12 6.10 12 6.10 12 6.10 12 6.10 16 8.14 12 6.10 12 6.10 16 8.14 200 101.75 Other Agricultural Implements - MB Plough & Seed cum Fertiliser Drill (Animal drawn) No. 0.095 0.047 125 5.91 125 5.91 125 5.91 125 5.91 125 5.91 125 5.91 125 5.91 125 5.91 2000 94.50 Ground Nut Decorticator No. 0.473 0.378 12 4.54 12 4.54 12 4.54 12 4.54 14 5.29 14 5.29 12 4.54 16 6.05 200 75.60 MULTI CROP THRESHER No. 1.050 0.840 18 15.12 22 18.48 23 19.32 15 12.60 18 15.12 18 15.12 15 12.60 18 15.12 300 252.00 MAIZE DEHUSKER CUM SHELLER with 2.0 HP Engine No. 0.462 0.370 1 0.37 2 0.74 1 0.37 1 0.37 1 0.37 2 0.74 1 0.37 1 0.37 20 7.39 PADDY COMBINED HARVESTERS No. 21.000 15.750 0 0.00 1 15.75 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 15.75 TRANSPLANTOR No. 15.750 11.813 0 0.00 1 11.81 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 11.81 Lazer guided land leveller No. 3.675 2.756 0 0.00 0 0.00 0 0.00 1 2.76 0 0.00 0 0.00 0 0.00 0 0.00 2 5.51 Solar Fencing with five lines and 7' poles No. 0.630 0.473 1 0.47 2 0.95 1 0.47 1 0.47 1 0.47 1 0.47 1 0.47 1 0.47 20 9.45 Sub Total : Farm Mechanisation 288.26 369.85 319.58 340.34 350.93 349.51 344.32 343.41 5330.52

PLANTATION & HORTICULTURE FLORICULTURE ac 0.760 0.380 0.00 0.00 8 3.04 5 1.90 3 1.14 3 1.14 0 0.00 4 1.52 60 22.80 MANGO ac 0.504 0.252 100 25.20 150 37.80 115 28.98 215 54.18 115 28.98 115 28.98 90 22.68 100 25.20 2000 504.00 MANGO REJUV ac 0.210 0.105 0.00 0.00 0.00 40 4.20 0.00 0.00 0.00 0.00 110 11.55 CITRUS ac 0.502 0.251 75 18.83 60 15.06 65 16.32 65 16.32 75 18.83 70 17.57 80 20.08 530 133.03 2250 564.75 GUAVA ac 0.350 0.175 6 1.05 6 1.05 6 1.05 6 1.05 5 0.88 5 0.88 5 0.88 8 1.40 90 15.75 BER ac 0.300 0.075 5 0.38 4 0.30 5 0.38 4 0.30 5 0.38 5 0.38 5 0.38 17 1.28 85 6.38 POMOGRANATE ac 0.588 0.294 25 7.35 20 5.88 20 5.88 25 7.35 25 7.35 25 7.35 20 5.88 20 5.88 400 117.60 SAPOTA ac 0.308 0.154 9 1.39 9 1.39 8 1.23 8 1.23 5 0.77 10 1.54 10 1.54 45 6.93 175 26.95 GRAPE ac 2.909 1.455 10 14.55 12 17.45 13 18.91 15 21.82 10 14.55 8 11.64 7 10.18 10 14.55 200 290.90 BANANA (TC) ac 0.801 0.401 40 16.02 40 16.02 50 20.03 200 80.10 50 20.03 50 20.03 40 16.02 140 56.07 1000 400.50 PAPAYA ac 0.984 0.492 0 0.00 0 0.00 0 0.00 80 39.36 40 19.68 0 0.00 0 0.00 0 0.00 400 196.80 NURSERIES FOR RAISING VEGETABLE SEEDLINGS ac 20.000 10.000 2 20.00 2 20.00 2 20.00 3 30.00 4 40.00 4 40.00 4 40.00 5 50.00 50 500.00 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT STATE : Andhra Pradesh (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

DEVELOPMENT OF NURSERIES OF FOREST Sps Ha. 3.850 3.273 25 81.81 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 5 16.36 3 9.82 3 9.82 FARM FORESTRY -EUCALYPTUS CLONAL PLANTATION Ha. 0.646 0.549 300 164.73 35 19.22 30 16.47 30 16.47 25 13.73 15 8.24 20 10.98 15 8.24 15 8.24 WASTE LAND DEV-SUBABUL Ha. 0.729 0.620 200 123.93 15 9.29 15 9.29 12 7.44 13 8.06 15 9.29 12 7.44 13 8.06 12 7.44 WASTE LAND DEV-BAMBOO Ha. 0.480 0.408 175 71.40 15 6.12 5 2.04 5 2.04 5 2.04 15 6.12 5 2.04 0 0.00 20 8.16 WASTE LAND DEV-NEEM Ha. 0.550 0.468 200 93.50 20 9.35 0 0.00 0 0.00 0 0.00 15 7.01 0 0.00 0 0.00 30 14.03 Sub Total : Forestry & Waste Land Development 535.37 43.98 27.81 25.95 23.82 30.66 36.82 26.11 47.67 TOTAL : INVESTMENT CREDIT FOR AGRICULTURE 19513.74 1467.24 945.67 1437.43 831.92 1410.92 1194.74 1283.21 1335.87

DAIRY DEVELOPMENT Crossbred Cows 8 LPD (1+1) No.(1+1) 1.043 0.939 1000 938.70 110 103.26 88 82.61 80 75.10 75 70.40 82 76.97 52 48.81 50 46.94 95 89.18 SHG mode of finnaving :Crossbred Cows 8 LPD (1+1) No.(1+1) 1.043 0.939 7102 6666.65 765 718.11 565 530.37 600 563.22 565 530.37 600 563.22 415 389.56 340 319.16 590 553.83 Gr.Murrah Buffaloes (6 LPD) 1+1 No.(1+1) 1.086 0.977 400 390.96 25 24.44 21 20.53 26 25.41 21 20.53 21 20.53 30 29.32 27 26.39 30 29.32 SHG mode of financing : Gr.Murrah Buffaloes (6 LPD) 1+1 No.(1+1) 1.086 0.977 2000 1954.80 220 215.03 176 172.02 160 156.38 150 146.61 164 160.29 104 101.65 100 97.74 190 185.71 Mini Dairy - CBC : 5(3+2) Animals No.(1) 2.985 2.687 100 268.65 8 21.49 7 18.81 5 13.43 8 21.49 5 13.43 7 18.81 5 13.43 7 18.81 Mini Dairy - GMB : 5(3+2) Animals No.(1) 3.095 2.786 200 557.10 16 44.57 14 39.00 10 27.86 17 47.35 10 27.86 13 36.21 10 27.86 13 36.21 Mini Dairy - CBC : 10(5+5) Animals No.(1) 6.255 5.317 10 53.17 1 5.32 0 0.00 1 5.32 1 5.32 1 5.32 1 5.32 0 0.00 1 5.32 Mini Dairy - GMB : 10(5+5) Animals No.(1) 6.475 5.504 60 330.23 4 22.02 4 22.02 4 22.02 3 16.51 4 22.02 4 22.02 4 22.02 4 22.02 Emerging Female Calf rearing – Number of Calf No. 0.278 0.250 10 2.50 1 0.25 1 0.25 1 0.25 1 0.25 0 0.00 1 0.25 0 0.00 1 0.25 Vehicle for Gopal Mitra No. 0.525 0.473 30 14.18 3 1.42 2 0.95 2 0.95 2 0.95 2 0.95 2 0.95 2 0.95 2 0.95 Milking machine 1.050 0.945 10 9.45 1 0.95 1 0.95 1 0.95 1 0.95 1 0.95 0 0.00 0 0.00 0 0.00 Fodder cultivation Ha 0.181 0.181 7500 1357.50 470 85.07 470 85.07 470 85.07 470 85.07 470 85.07 470 85.07 470 85.07 470 85.07 Sub Total : Dairy Development 12543.88 1241.90 972.55 975.94 945.79 976.59 737.96 639.54 1026.65

POULTRY CONTRACT BROILER FARMING(1000 birds) No. 1.771 1.594 450 717.26 100 159.39 25 39.85 30 47.82 25 39.85 30 47.82 20 31.88 20 31.88 20 31.88 INDEPENDENT BROILER UNITS(5000 birds) No. 17.600 15.840 44 696.96 8 126.72 0.00 7 110.88 5 79.20 5 79.20 3 47.52 0 0.00 2 31.68 COMMERCIAL LAYERS (50000 Birds) No. 272.250 204.188 3 612.56 1 204.19 0.00 0.00 1 204.19 1 204.19 0 0.00 0 0.00 0 0.00 Feed Mixing Units No. 17.600 14.960 5 74.80 1 14.96 0.00 0.00 0 0.00 0.00 0.00 0.00 1 14.96 Working capital for commercial Layer units No. 15.400 15.400 5 77.00 1 15.40 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 15.40 Chiken processing & marketing units No. 2.200 2.200 10 22.00 2 4.40 0 0.00 1 2.20 1 2.20 1 2.20 0 0.00 0 0.00 1 2.20 Sub Total : Poultry 2200.58 525.06 39.85 160.90 325.44 333.40 79.40 31.88 96.12

Sheep, Goat & Piggery Sheep breeding – Nellore Breed, 20+1 No. 1.224 1.102 2000 2203.20 125 137.70 120 132.19 125 137.70 120 132.19 125 137.70 120 132.19 125 137.70 120 132.19 SHG mode of financing : Sheep breeding Unit – Nellore Breed, 20+1 No. 1.224 1.102 4500 4957.20 270 297.43 270 297.43 270 297.43 270 297.43 270 297.43 270 297.43 315 347.00 255 280.91 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

DEVELOPMENT OF NURSERIES OF FOREST Sps Ha. 3.850 3.273 2 6.55 0 0.00 0 0.00 2 6.55 2 6.55 4 13.09 2 6.55 2 6.55 25 81.81 FARM FORESTRY -EUCALYPTUS CLONAL PLANTATION Ha. 0.646 0.549 12 6.59 18 9.88 12 6.59 13 7.14 15 8.24 15 8.24 15 8.24 15 8.24 300 164.73 WASTE LAND DEV-SUBABUL Ha. 0.729 0.620 18 11.15 10 6.20 10 6.20 10 6.20 10 6.20 10 6.20 13 8.06 12 7.44 200 123.93 WASTE LAND DEV-BAMBOO Ha. 0.480 0.408 15 6.12 15 6.12 15 6.12 15 6.12 15 6.12 15 6.12 15 6.12 0 0.00 175 71.40 WASTE LAND DEV-NEEM Ha. 0.550 0.468 20 9.35 25 11.69 20 9.35 20 9.35 15 7.01 15 7.01 20 9.35 0 0.00 200 93.50 Sub Total : Forestry & Waste Land Development 39.76 33.89 28.26 35.35 34.11 40.66 38.31 22.22 535.37 TOTAL : INVESTMENT CREDIT FOR AGRICULTURE 935.03 1048.38 1322.52 1359.80 1096.39 1086.88 1092.64 1665.11 19513.74

DAIRY DEVELOPMENT Crossbred Cows 8 LPD (1+1) No.(1+1) 1.043 0.939 38 35.67 60 56.32 55 51.63 38 35.67 55 51.63 37 34.73 40 37.55 45 42.24 1000 938.70 SHG mode of finnaving :Crossbred Cows 8 LPD (1+1) No.(1+1) 1.043 0.939 310 291.00 385 361.40 385 361.40 315 295.69 297 278.79 325 305.08 330 309.77 315 295.69 7102 6666.65 Gr.Murrah Buffaloes (6 LPD) 1+1 No.(1+1) 1.086 0.977 23 22.48 27 26.39 22 21.50 22 21.50 25 24.44 29 28.34 23 22.48 28 27.37 400 390.96 SHG mode of financing : Gr.Murrah Buffaloes (6 LPD) 1+1 No.(1+1) 1.086 0.977 76 74.28 120 117.29 110 107.51 76 74.28 110 107.51 74 72.33 80 78.19 90 87.97 2000 1954.80 Mini Dairy - CBC : 5(3+2) Animals No.(1) 2.985 2.687 5 13.43 6 16.12 8 21.49 5 13.43 5 13.43 6 16.12 5 13.43 8 21.49 100 268.65 Mini Dairy - GMB : 5(3+2) Animals No.(1) 3.095 2.786 10 27.86 15 41.78 16 44.57 10 27.86 10 27.86 10 27.86 10 27.86 16 44.57 200 557.10 Mini Dairy - CBC : 10(5+5) Animals No.(1) 6.255 5.317 0 0.00 1 5.32 1 5.32 0 0.00 0 0.00 0 0.00 1 5.32 1 5.32 10 53.17 Mini Dairy - GMB : 10(5+5) Animals No.(1) 6.475 5.504 3 16.51 4 22.02 3 16.51 4 22.02 3 16.51 4 22.02 4 22.02 4 22.02 60 330.23 Emerging Female Calf rearing – Number of Calf No. 0.278 0.250 0 0.00 1 0.25 0 0.00 1 0.25 0 0.00 1 0.25 0.00 1 0.25 10 2.50 Vehicle for Gopal Mitra No. 0.525 0.473 2 0.95 2 0.95 2 0.95 2 0.95 1 0.47 2 0.95 1 0.47 1 0.47 30 14.18 Milking machine 1.050 0.945 0 0.00 0 0.00 0 0.00 1 0.95 1 0.95 1 0.95 1 0.95 1 0.95 10 9.45 Fodder cultivation Ha 0.181 0.181 470 85.07 470 85.07 470 85.07 470 85.07 470 85.07 450 81.45 470 85.07 470 85.07 7500 1357.50 Sub Total : Dairy Development 567.24 732.90 715.95 577.66 606.66 590.06 603.10 633.39 12543.88

POULTRY CONTRACT BROILER FARMING(1000 birds) No. 1.771 1.594 20 31.88 20 31.88 30 47.82 20 31.88 20 31.88 25 39.85 20 31.88 25 39.85 450 717.26 INDEPENDENT BROILER UNITS(5000 birds) No. 17.600 15.840 0 0.00 2 31.68 1 15.84 4 63.36 0 0.00 3 47.52 1 15.84 3 47.52 44 696.96 COMMERCIAL LAYERS (50000 Birds) No. 272.250 204.188 0 0.00 0.00 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 3 612.56 Feed Mixing Units No. 17.600 14.960 0.00 1 14.96 0 0.00 1 14.96 0 0.00 0.00 1 14.96 0.00 5 74.80 Working capital for commercial Layer units No. 15.400 15.400 0 0.00 1 15.40 0 0.00 0 0.00 1 15.40 0 0.00 1 15.40 0 0.00 5 77.00 Chiken processing & marketing units No. 2.200 2.200 0 0.00 1 2.20 0 0.00 0 0.00 1 2.20 0 0.00 1 2.20 1 2.20 10 22.00 Sub Total : Poultry 31.88 96.12 63.66 110.20 49.48 87.37 80.28 89.57 2200.58

Sheep, Goat & Piggery Sheep breeding – Nellore Breed, 20+1 No. 1.224 1.102 115 126.68 115 126.68 125 137.70 125 137.70 125 137.70 125 137.70 155 170.75 135 148.72 2000 2203.20 SHG mode of financing : Sheep breeding Unit – Nellore Breed, 20+1 No. 1.224 1.102 330 363.53 255 280.91 315 347.00 255 280.91 330 363.53 270 297.43 255 280.91 300 330.48 4500 4957.20 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT STATE : Andhra Pradesh (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

FISHERIES FISH PONDS Ha. 2.970 2.376 55 130.68 15 35.64 0.00 0.00 8 19.01 0.00 10 23.76 0.00 0.00 NON-MECH.BOATS/NETS No. 0.189 0.151 225 34.06 45 6.81 0.00 0.00 43 6.51 0.00 42 6.36 0.00 0.00 Working capital to societies No. 1.000 1.000 50 50.00 8 8.00 0.00 7 7.00 6 6.00 6 6.00 3 3.00 0.00 4 4.00 FRESH WATER PRAWN Ha. 1.616 1.293 15 19.39 3 3.88 0.00 2 2.59 2 2.59 4 5.17 0.00 0.00 2 2.59 Sub Total : Fisheries 234.13 54.33 0.00 9.59 34.10 11.17 33.12 0.00 6.59

OTHER AGRIL. & ALLIED ACTIVITIES PLOUGH BULLOCKS – Non descript No. 0.396 0.356 100 35.64 8 2.85 5 1.78 7 2.49 5 1.78 8 2.85 5 1.78 7 2.49 5 1.78 PLOUGH BULLOCKS – Hallikar No. 0.660 0.594 300 178.20 18 10.69 18 10.69 18 10.69 18 10.69 18 10.69 18 10.69 18 10.69 18 10.69 BULLOCK CARTS - Local cart No. 0.400 0.360 100 36.00 8 2.88 8 2.88 6 2.16 6 2.16 6 2.16 6 2.16 6 2.16 6 2.16 BULLOCK CARTS -Pneumatic No. 0.472 0.425 1000 424.80 70 29.74 60 25.49 80 33.98 60 25.49 60 25.49 70 29.74 60 25.49 70 29.74 SHG MICRO LOANS FOR UNSPECIFIED AGRIL. PURPOSES No. 1.000 1.000 10000 10000.00 650 650.00 700 700.00 650 650.00 700 700.00 650 650.00 700 700.00 650 650.00 700 700.00 Loans to distressed farmers indebted to money lenders No. 0.500 0.500 1000 500.00 60 30.00 70 35.00 64 32.00 70 35.00 66 33.00 70 35.00 66 33.00 70 35.00 Loans to small & marginal farmers for purchase of land for agricultural purposes No. 2.000 1.800 100 180.00 6 10.80 7 12.60 6 10.80 7 12.60 7 12.60 7 12.60 6 10.80 7 12.60 Sub Total : Other Allied activities 11354.64 736.96 788.44 742.13 787.72 736.79 791.97 734.63 791.97 Total : Agri-allied activities 35137.15 3109.97 2328.25 2431.46 2619.91 2626.11 2162.43 1985.72 2442.23 TOTAL: AGRICULTURE 459587.16 30488.05 25558.71 24418.38 32996.92 28775.48 26256.22 29522.32 33196.27

AGRI-INFRASTRUCTURE CONSTRUCTION OF STORAGE FACILITIES INCLUDING COLD STORAGE UNITS AND COLD STORAGE CHAIN GODOWNS (1000 MTs) @ 3500/- per M T No. 35.000 26.250 55 1443.75 5 131.25 2 52.50 2 52.50 3 78.75 2 52.50 3 78.75 4 105.00 3 78.75 COLD STORAGE UNIT OF 2000 M T Capacity @ 6000/- per M T No. 120.000 90.000 9 810.00 0.00 0.00 0.00 0.00 2 180.00 0.00 0.00 1 90.00 Agril. Marketing Infrastructure - Misc.. Weigh bridges etc.. 6.600 4.950 5 24.75 1 4.95 0 1 4.95 1 4.95 Milking machines/ Milko testers/ Bulk Milk Coolers(2000 liters ) No. 12.600 10.710 2 21.42 0 0.00 1 10.71 0 0.00 1 10.71 0 0.00 0.00 0 0.00 0.00 Integrated dairy – procurement & processing No. 183.750 137.813 2 275.63 1 137.81 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Sub Total : Storage Godowns & Cold storage units 2575.55 274.01 63.21 52.50 89.46 232.50 83.70 105.00 173.70

LAND DEVELOPMENT, SOIL CONSERVATION AND WATERSHED DEVELOPMENT LAND RECLAMATION Ha. 0.165 0.149 600 89.10 40 5.94 40 5.94 40 5.94 40 5.94 40 5.94 48 7.13 36 5.35 35 5.20 TANK SILT APPLICATION Ha. 0.198 0.178 2500 445.50 200 35.64 200 35.64 150 26.73 75 13.37 125 22.28 0.00 175 31.19 160 28.51 WATERSHED DEV : CONTOUR BUNDING, EGP & SGPs Ha. 0.363 0.327 500 163.35 35 11.43 40 13.07 40 13.07 40 13.07 40 13.07 40 13.07 0.00 30 9.80 LAND LEVELLING/OFD Ha. 0.279 0.237 2000 474.30 175 41.50 110 26.09 110 26.09 80 18.97 90 21.34 100 23.72 100 23.72 100 23.72 Farm ponds in Red Soils No. 1.232 1.109 250 277.20 25 27.72 15 16.63 15 16.63 12 13.31 13 14.41 12 13.31 13 14.41 12 13.31 Farm Ponds in Black soils No. 1.782 1.604 50 80.19 3 4.81 3 4.81 3 4.81 3 4.81 3 4.81 3 4.81 3 4.81 3 4.81 MINI FARM PONDS No. 0.686 0.617 500 308.70 45 27.78 40 24.70 40 24.70 45 27.78 25 15.44 40 24.70 36 22.23 40 24.70 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

FISHERIES FISH PONDS Ha. 2.970 2.376 0.00 8 19.01 0.00 0.00 12 28.51 2 4.75 0.00 0.00 55 130.68 NON-MECH.BOATS/NETS No. 0.189 0.151 0.00 46 6.96 0.00 0.00 49 7.42 0.00 0.00 0.00 225 34.06 Working capital to societies No. 1.000 1.000 4 4.00 2 2.00 0.00 5 5.00 0 0.00 5 5.00 0 0.00 0.00 50 50.00 FRESH WATER PRAWN Ha. 1.616 1.293 0.00 0.00 0.00 2 2.59 0.00 0 0.00 0.00 0.00 15 19.39 Sub Total : Fisheries 4.00 27.97 0.00 7.59 35.93 9.75 0.00 0.00 234.13

OTHER AGRIL. & ALLIED ACTIVITIES PLOUGH BULLOCKS – Non descript No. 0.396 0.356 8 2.85 5 1.78 7 2.49 5 1.78 8 2.85 5 1.78 7 2.49 5 1.78 100 35.64 PLOUGH BULLOCKS – Hallikar No. 0.660 0.594 18 10.69 18 10.69 18 10.69 20 11.88 25 14.85 21 12.47 18 10.69 18 10.69 300 178.20 BULLOCK CARTS - Local cart No. 0.400 0.360 6 2.16 6 2.16 6 2.16 6 2.16 6 2.16 6 2.16 6 2.16 6 2.16 100 36.00 BULLOCK CARTS -Pneumatic No. 0.472 0.425 60 25.49 50 21.24 60 25.49 50 21.24 80 33.98 60 25.49 50 21.24 60 25.49 1000 424.80 SHG MICRO LOANS FOR UNSPECIFIED AGRIL. PURPOSES No. 1.000 1.000 650 650.00 700 700.00 600 600.00 600 600.00 600 600.00 500 500.00 400 400.00 550 550.00 10000 10000.00 Loans to distressed farmers indebted to money lenders No. 0.500 0.500 64 32.00 70 35.00 60 30.00 60 30.00 60 30.00 50 25.00 40 20.00 60 30.00 1000 500.00 Loans to small & marginal farmers for purchase of land for agricultural purposes No. 2.000 1.800 6 10.80 7 12.60 6 10.80 6 10.80 6 10.80 5 9.00 4 7.20 7 12.60 100 180.00 Sub Total : Other Allied activities 733.99 783.47 681.63 677.86 694.65 575.90 463.79 632.72 11354.64 Total : Agri-allied activities 1918.49 2143.28 2049.97 1889.91 1989.80 1804.08 1695.26 1940.26 35137.15 TOTAL: AGRICULTURE 28660.78 27153.97 24961.42 25418.86 26614.53 26595.07 39769.75 29200.42 459587.16

AGRI-INFRASTRUCTURE CONSTRUCTION OF STORAGE FACILITIES INCLUDING COLD STORAGE UNITS AND COLD STORAGE CHAIN GODOWNS (1000 MTs) @ 3500/- per M T No. 35.000 26.250 3 78.75 5 131.25 4 105.00 3 78.75 3 78.75 3 78.75 5 131.25 5 131.25 55 1443.75 COLD STORAGE UNIT OF 2000 M T Capacity @ 6000/- per M T No. 120.000 90.000 0.00 1 90.00 1 90.00 0.00 2 180.00 0.00 0.00 2 180.00 9 810.00 Agril. Marketing Infrastructure - Misc.. Weigh bridges etc.. 6.600 4.950 1 4.95 1 4.95 5 24.75 Milking machines/ Milko testers/ Bulk Milk Coolers(2000 liters ) No. 12.600 10.710 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0.00 0.00 2 21.42 Integrated dairy – procurement & processing No. 183.750 137.813 0 0.00 0 0.00 0 0.00 1 137.81 0 0.00 0 0.00 0 0.00 0 0.00 2 275.63 Sub Total : Storage Godowns & Cold storage units 78.75 226.20 195.00 216.56 258.75 78.75 136.20 311.25 2575.55

LAND DEVELOPMENT, SOIL CONSERVATION AND WATERSHED DEVELOPMENT LAND RECLAMATION Ha. 0.165 0.149 40 5.94 34 5.05 35 5.20 35 5.20 35 5.20 32 4.75 35 5.20 35 5.20 600 89.10 TANK SILT APPLICATION Ha. 0.198 0.178 105 18.71 200 35.64 200 35.64 200 35.64 200 35.64 250 44.55 110 19.60 150 26.73 2500 445.50 WATERSHED DEV : CONTOUR BUNDING, EGP & SGPs Ha. 0.363 0.327 40 13.07 40 13.07 37 12.09 38 12.41 40 13.07 40 13.07 0.00 0.00 500 163.35 LAND LEVELLING/OFD Ha. 0.279 0.237 110 26.09 125 29.64 158 37.47 140 33.20 130 30.83 110 26.09 200 47.43 162 38.42 2000 474.30 Farm ponds in Red Soils No. 1.232 1.109 12 13.31 16 17.74 15 16.63 15 16.63 15 16.63 16 17.74 22 24.39 22 24.39 250 277.20 Farm Ponds in Black soils No. 1.782 1.604 3 4.81 3 4.81 3 4.81 3 4.81 3 4.81 3 4.81 3 4.81 5 8.02 50 80.19 MINI FARM PONDS No. 0.686 0.617 40 24.70 30 18.52 25 15.44 15 9.26 20 12.35 24 14.82 15 9.26 20 12.35 500 308.70 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT STATE : Andhra Pradesh (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

AGRI-INFRASTRUCTURE : OTHERS VERMI COMPOST UNITS - TINY No. 0.220 0.198 1000 198.00 95 18.81 65 12.87 65 12.87 55 10.89 40 7.92 45 8.91 50 9.90 50 9.90 VERMI COMPOST UNITS - MINI No. 2.550 2.168 100 216.75 5 10.84 6 13.01 5 10.84 6 13.01 5 10.84 6 13.01 5 10.84 6 13.01 VERMI HATCHERY CUM COMPOSTING UNIT (260 TPA) No. 11.200 8.960 2 17.92 2 17.92 0 0 0 0 0 0 0 NADEP compost units No. 0.138 0.124 200 24.84 10 1.24 11 1.37 10 1.24 13 1.61 10 1.24 12 1.49 8 0.99 12 1.49 Bio-fertiliser & Bio-Pesticide unit No. 210.000 157.500 1 157.50 1 157.50 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Tissue culture laboratories for plant propagule multiplication - small No. 75.000 56.250 1 56.25 1 56.25 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Tissue culture laboratories for plant propagule multiplication - medium No. 150.000 112.500 1 112.50 1 112.50 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Tissue culture laboratories for plant propagule multiplication - big No. 250.000 187.500 1 187.50 1 187.50 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Seed processing Units No. 100.000 75.000 2 150.00 1 75.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Sub Total :Agri.Infrastructure - Others 1121.26 637.56 27.24 24.95 25.51 20.00 23.41 21.73 24.40 Total : Agri-Infrastructure 5832.82 1081.59 234.72 210.75 232.74 364.13 212.07 240.95 326.46

ANCILLARY ACTIVITIES FOOD AND AGRO PROCESSING JAMS/JELLIES No. 1.000 0.750 20 15.00 4 3.00 0.00 2 1.50 2 1.50 3 2.25 3 2.25 2 1.50 PICKLES No. 1.000 0.750 50 37.50 10 7.50 0.00 6 4.50 3 2.25 3 2.25 4 3.00 4 3.00 SQUASHES/CANNED JUICES No. 5.000 3.750 20 75.00 4 15.00 0.00 4 15.00 4 15.00 DISTILLATION UNITS FOR MAPs No. 10.000 7.500 2 15.00 1 7.50 0.00 0 0.00 0 0.00 ALOEVERA PROCESSING No. 12.000 9.000 0 0.00 0 0.00 0.00 0.00 0.00 0.00 AGROINPUTS No. 10.000 7.500 50 375.00 6 45.00 1 7.50 6 45.00 3 22.50 5 37.50 3 22.50 3 22.50 3 22.50 Value chain financing of G Nut, Maize, Bengal gram, Redgram, Jowar & ragi No. 50.000 37.500 40 1500.00 5 187.50 2 75.00 1 37.50 1 37.50 5 187.50 1 37.50 2 75.00 2 75.00 AH BASED UNITS No. 10.000 7.500 60 450.00 10 75.00 12 90.00 6 45.00 4 30.00 4 30.00 3 22.50 4 30.00 Working capital loans to Agro & Food processing units Cat-I : WC gap upto 5.0 lakh No. 5.000 3.750 50 187.50 6 22.50 1 3.75 6 22.50 3 11.25 5 18.75 3 11.25 3 11.25 3 11.25 Cat - II : WC gap upto 20.0 lakh No. 20.000 15.000 10 150.00 2 30.00 0 0.00 1 15.00 1 15.00 1 15.00 0 0.00 0 0.00 1 15.00 Sub Total : Food & Agro processing 2805.00 393.00 86.25 216.00 150.00 308.25 101.25 136.50 158.25

ANCILLARY - OTHERS Loans to Cooperative Societies for disposing of the produce of the members No. 100.000 90.000 2 180.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

Agri- Clinic and Agri-Business Centers (ACABCs) No. 20.000 18.000 2 36.00 1 18.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 18.00 0 0.00 Bank Loans to PACS, FSSs, LAMPS & FPOs No. 100.000 90.000 5 450.00 0 0.00 1 90.00 0 0.00 0 0.00 0 0.00 1 90.00 1 90.00 0 0.00 Loans to MFIs No. 0.000 0.000 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Others No. 0.000 0.000 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Sub Total : Ancillary Others 666.00 18.00 90.00 0.00 0.00 0.00 90.00 108.00 0.00 Total : Agri-ancillary activities 3471.00 411.00 176.25 216.00 150.00 308.25 191.25 244.50 158.25

MSME - Fixed Capital I. MSME - Sericulture (Non Farm sector) Motorised Charkas No. 0.150 0.135 100 13.50 0 0 20 2.70 0 50 6.75 0 0 0 Reeling Units Reeling Shed 6.237 4.678 20 93.56 0 0 4 18.71 0 8 37.42 0 0 0 Multi end Reeling Units - 6 Basin No. 12.763 10.849 25 271.21 0 0 5 54.24 0 10 108.49 0 0 0 Multi end Reeling Units - 10 Basin No. 16.228 13.794 15 206.91 0 0 3 41.38 0 6 82.76 0 0 0 Reeling cum Twisting Units Automatic Reeling Units - 200 spindle No. 84.315 67.452 10 674.52 0 0 2 134.90 0 4 269.81 0 0 0 Automatic Reeling Units - 400 spindle No. 155.925 124.740 10 1247.40 0 0 2 249.48 0 4 498.96 0 0 0 II. MSME - Manufacturing Micro Industry (< 5.0 lakh) No. 4.000 3.200 3750 12000.00 375 1200.00 100 320.00 300 960.00 175 560.00 460 1472.00 115 368.00 235 752.00 160 512.00 Micro Industry (5.0 - 10.0 lakh) No. 7.500 6.000 1250 7500.00 75 450.00 10 60.00 250 1500.00 70 420.00 100 600.00 20 120.00 60 360.00 55 330.00 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

AGRI-INFRASTRUCTURE : OTHERS VERMI COMPOST UNITS - TINY No. 0.220 0.198 60 11.88 55 10.89 80 15.84 65 12.87 60 11.88 60 11.88 80 15.84 75 14.85 1000 198.00 VERMI COMPOST UNITS - MINI No. 2.550 2.168 7 15.17 6 13.01 8 17.34 6 13.01 5 10.84 6 13.01 8 17.34 10 21.68 100 216.75 VERMI HATCHERY CUM COMPOSTING UNIT (260 TPA) No. 11.200 8.960 0 0 0 0 0 0 0 0 2 17.92 NADEP compost units No. 0.138 0.124 14 1.74 13 1.61 16 1.99 13 1.61 12 1.49 15 1.86 14 1.74 17 2.11 200 24.84 Bio-fertiliser & Bio-Pesticide unit No. 210.000 157.500 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 157.50 Tissue culture laboratories for plant propagule multiplication - small No. 75.000 56.250 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 56.25 Tissue culture laboratories for plant propagule multiplication - medium No. 150.000 112.500 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 112.50 Tissue culture laboratories for plant propagule multiplication - big No. 250.000 187.500 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 187.50 Seed processing Units No. 100.000 75.000 0 0.00 1 75.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 150.00 Sub Total :Agri.Infrastructure - Others 28.79 100.51 35.17 27.49 24.21 26.75 34.92 38.64 1121.26 Total : Agri-Infrastructure 234.69 469.05 380.87 381.82 419.58 251.85 300.06 491.48 5832.82

ANCILLARY ACTIVITIES FOOD AND AGRO PROCESSING JAMS/JELLIES No. 1.000 0.750 0.00 0.00 1 0.75 0 0 0.00 0 0.00 3 2.25 20 15.00 PICKLES No. 1.000 0.750 2 1.50 1 0.75 2 1.50 5 3.75 10 7.50 50 37.50 SQUASHES/CANNED JUICES No. 5.000 3.750 4 15.00 4 15.00 20 75.00 DISTILLATION UNITS FOR MAPs No. 10.000 7.500 0 0.00 1 7.50 2 15.00 ALOEVERA PROCESSING No. 12.000 9.000 0 0.00 0 0.00 AGROINPUTS No. 10.000 7.500 1 7.50 2 15.00 2 15.00 4 30.00 2 15.00 3 22.50 3 22.50 3 22.50 50 375.00 Value chain financing of G Nut, Maize, Bengal gram, Redgram, Jowar & ragi No. 50.000 37.500 1 37.50 1 37.50 5 187.50 1 37.50 3 112.50 1 37.50 4 150.00 5 187.50 40 1500.00 AH BASED UNITS No. 10.000 7.500 3 22.50 2 15.00 3 22.50 3 22.50 3 22.50 3 22.50 60 450.00 Working capital loans to Agro & Food processing units Cat-I : WC gap upto 5.0 lakh No. 5.000 3.750 1 3.75 2 7.50 2 7.50 4 15.00 2 7.50 3 11.25 3 11.25 3 11.25 50 187.50 Cat - II : WC gap upto 20.0 lakh No. 20.000 15.000 0 0.00 1 15.00 0 0.00 0 0.00 1 15.00 0 0.00 1 15.00 1 15.00 10 150.00 Sub Total : Food & Agro processing 48.75 76.50 233.25 99.75 172.50 112.50 221.25 291.00 2805.00

ANCILLARY - OTHERS Loans to Cooperative Societies for disposing of the produce of the members No. 100.000 90.000 0 0.00 1 90.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 90.00 2 180.00

Agri- Clinic and Agri-Business Centers (ACABCs) No. 20.000 18.000 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 36.00 Bank Loans to PACS, FSSs, LAMPS & FPOs No. 100.000 90.000 0 0.00 0 0.00 0 0.00 2 180.00 0 0.00 0 0.00 0 0.00 0 0.00 5 450.00 Loans to MFIs No. 0.000 0.000 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Others No. 0.000 0.000 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Sub Total : Ancillary Others 0.00 90.00 0.00 180.00 0.00 0.00 0.00 90.00 666.00 Total : Agri-ancillary activities 48.75 166.50 233.25 279.75 172.50 112.50 221.25 381.00 3471.00

MSME - Fixed Capital I. MSME - Sericulture (Non Farm sector) Motorised Charkas No. 0.150 0.135 0 0 0 30 4.05 0 0 0 0 100 13.50 Reeling Units Reeling Shed 6.237 4.678 0 0 0 8 37.42 0 0 0 0 20 93.56 Multi end Reeling Units - 6 Basin No. 12.763 10.849 0 0 0 10 108.49 0 0 0 0 25 271.21 Multi end Reeling Units - 10 Basin No. 16.228 13.794 0 0 0 6 82.76 0 0 0 0 15 206.91 Reeling cum Twisting Units Automatic Reeling Units - 200 spindle No. 84.315 67.452 0 0 0 4 269.81 0 0 0 0 10 674.52 Automatic Reeling Units - 400 spindle No. 155.925 124.740 0 0 0 4 498.96 0 0 0 0 10 1247.40 II. MSME - Manufacturing Micro Industry (< 5.0 lakh) No. 4.000 3.200 245 784.00 160 512.00 225 720.00 275 880.00 325 1040.00 100 320.00 200 640.00 300 960.00 3750 12000.00 Micro Industry (5.0 - 10.0 lakh) No. 7.500 6.000 85 510.00 90 540.00 80 480.00 85 510.00 100 600.00 60 360.00 60 360.00 50 300.00 1250 7500.00 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT STATE : Andhra Pradesh (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

UC FOR ANANTHAPURAM CKPALLI DHARMAVARAM GOOTY HINDUPUR KADIRI-EAST KADIRI-WEST KALYANDURG Bank loan (Net of SECTOR/ ACTIVITY Units Unit cost Margin) Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Small scale industry upto 500.0 lakh No. 400.000 300.000 25 7500.00 5 1500.00 1 300.00 2 600.00 2 600.00 3 900.00 1 300.00 1 300.00 1 300.00 Medium industry upto 1000.0 lakh No. 750.000 562.500 5 2812.50 3 1687.50 2 1125.00 0.00 III. Service Micro Enterprise (<2.0 lakh) 1.155 0.924 8000 7392.00 750 693.00 200 184.80 600 554.40 400 369.60 800 739.20 300 277.20 470 434.28 450 415.80 Micro Enterprise (2.0 to 10.0 lakh) 2.000 1.600 2000 3200.00 125 200.00 18 28.80 250 400.00 125 200.00 175 280.00 40 64.00 100 160.00 100 160.00 KVI 10.000 8.000 1500 12000.00 150 1200.00 25 200.00 200 1600.00 105 840.00 110 880.00 45 360.00 60 480.00 110 880.00 Small Enterprise upto200.00 lakh 50.000 40.000 100 4000.00 10 400.00 3 120.00 2 80.00 9 360.00 10 400.00 4 160.00 6 240.00 10 400.00 Medium Enterprise upto 500.00 lakh 210.000 168.000 25 4200.00 5 840.00 1 168.00 2 336.00 2 336.00 3 504.00 1 168.00 1 168.00 1 168.00 Others 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MSME through MFI 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 GCC/ SCC/ Weavers credit card 1.200 1.080 10000 10800.00 1000 1080.00 250 270.00 800 864.00 500 540.00 1000 1080.00 400 432.00 650 702.00 600 648.00 Cooperatives of Artisans, Village & Cottage Industries 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 MSME (SHG mode particularly for service sector activities 5.000 5.000 4000 20000.00 400 2000.00 100 500.00 300 1500.00 200 1000.00 460 2300.00 150 750.00 235 1175.00 180 900.00 Small Road & water Transport Operators (SR&WTO) 5.000 4.000 250 1000.00 50 200.00 10 40.00 20 80.00 20 80.00 30 120.00 10 40.00 10 40.00 10 40.00 Professionals & self employed No. 10.000 7.500 500 3750.00 100 750.00 20 150.00 40 300.00 40 300.00 60 450.00 20 150.00 20 150.00 20 150.00 Sub Total : MSME - Fixed Capital 98661.60 12200.50 2341.60 9275.82 5605.60 11854.39 3189.20 4961.28 4903.80 MSME - Working Capital Micro Industries No. 10.000 7.500 300 2250.00 15 112.50 3 22.50 15 112.50 18 135.00 25 187.50 5 37.50 40 300.00 13 97.50 Small Industries No. 50.000 37.500 45 1687.50 8 300.00 2 75.00 4 150.00 2 75.00 3 112.50 2 75.00 2 75.00 1 37.50 Medium Industries No. 200.000 150.000 10 1500.00 6 900.00 4 600.00 0.00 Handlooms No. 0.500 0.375 5000 1875.00 500 187.50 125 46.88 400 150.00 250 93.75 500 187.50 200 75.00 325 121.88 300 112.50 KVI 2.500 1.875 250 468.75 50 93.75 10 18.75 20 37.50 20 37.50 30 56.25 10 18.75 10 18.75 10 18.75 Retail Trade & Small Business 1.500 1.125 6350 7143.75 600 675.00 200 225.00 450 506.25 300 337.50 600 675.00 300 337.50 320 360.00 325 365.63 Sub Total : MSME Working Capital 14925.00 2268.75 388.13 956.25 678.75 1818.75 543.75 875.63 631.88 MSME Total :MSME - Fixed Capital +MSME Working Capital 113586.60 14469.25 2729.73 10232.07 6284.35 13673.14 3732.95 5836.91 5535.68 EXPORT CREDIT Pre-Shipment/ Packing credit Groundnut kernels No. 75.000 56.250 2 112.50 0 0.00 1 56.25 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Fruits & Vegetables No. 200.000 150.000 1 150.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 150.00 Silk sarees & readymade garments No. 125.000 93.750 2 187.50 0 0.00 0 0.00 1 93.75 0 0.00 1 93.75 0 0.00 0 0.00 0 0.00 Mineral ores No. 250.000 187.500 2 375.00 0 0.00 0 0.00 0 0.00 1 187.50 0 0.00 0 0.00 0 0.00 0 0.00 Post-Shipment credit Groundnut kernels No. 100.000 75.000 2 150.00 0 0.00 1 75.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 Fruits & Vegetables No. 250.000 187.500 1 187.50 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 187.50 Silk sarees & readymade garments No. 150.000 112.500 2 225.00 0 0.00 0 0.00 1 112.50 0 0.00 1 112.50 0 0.00 0 0.00 0 0.00 Mineral ores No. 300.000 225.000 2 450.00 0 0.00 0 0.00 0 0.00 1 225.00 0 0.00 0 0.00 0 0.00 0 0.00 Sub Total : Export Credit 1837.50 0.00 131.25 206.25 412.50 206.25 0.00 0.00 337.50

EDUCATION LOANS Educatioal Loans to Students pursuing Engineering, Medicine and other professional courses viz., MBA, CA and MCA etc., in Indian Colleges and Universities No. 5.000 5.000 1600 8000.00 250 1250.00 75 375.00 100 500.00 100 500.00 125 625.00 80 400.00 75 375.00 110 550.00 Educatioal Loans to Students pursuing other Vocational courses No. 2.000 2.000 400 800.00 60 120.00 18 36.00 22 44.00 22 44.00 28 56.00 17 34.00 10 20.00 25 50.00 Sub Total : Education Loans 8800.00 1370.00 411.00 544.00 544.00 681.00 434.00 395.00 600.00 HOUSING LOANS Housing loans to individuals up to 20.0 lakjh (including purchase of plots for housing purpose) 20.000 18.000 2000 36000.00 250 4500.00 18 324.00 125 2250.00 125 2250.00 175 3150.00 40 720.00 100 1800.00 100 1800.00 Housing loans to individuals up to 2.0 lakjh for carrying repairs to the existing house No. 2.000 1.800 100 180.00 10 18.00 3 5.40 2 3.60 9 16.20 10 18.00 4 7.20 6 10.80 10 18.00 Sub Total : Housing Loans 36180.00 4518.00 329.40 2253.60 2266.20 3168.00 727.20 1810.80 1818.00

RENEWABLE ENERGY AND WASTE MANAGEMENT BIOGAS UNITS 2Cum capacity No. 0.170 0.153 3000 459.00 200 30.60 175 26.78 200 30.60 175 26.78 200 30.60 175 26.78 200 30.60 175 26.78 SOLAR HOME LIGHTING : 100 Wp No. 0.168 0.151 4000 604.80 300 45.36 230 34.78 225 34.02 225 34.02 250 37.80 250 37.80 250 37.80 250 37.80 200 Wp No. 0.336 0.302 2000 604.80 150 45.36 125 37.80 150 45.36 125 37.80 150 45.36 125 37.80 150 45.36 125 37.80 500 Wp No. 0.504 0.403 500 201.60 30 12.10 35 14.11 30 12.10 35 14.11 30 12.10 35 14.11 30 12.10 35 14.11 1 KV No. 1.680 1.512 50 75.60 5 7.56 2 3.02 3 4.54 2 3.02 5 7.56 2 3.02 3 4.54 2 3.02 Solar Water Heating No. 0.180 0.162 100 16.20 25 4.05 5 0.81 5 0.81 5 0.81 5 0.81 5 0.81 5 0.81 5 0.81 Solar Lights (LED Luminarie) No. 0.108 0.097 200 19.44 50 4.86 10 0.97 10 0.97 10 0.97 10 0.97 10 0.97 10 0.97 10 0.97 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

UC FOR KAMBADUR KANEKAL MADAKASIRA PENUKONDA RAYDURG SINGANAMALA URVAKONDA TADIPATRI DISTRICT-TOTAL Bank loan (Net of SECTOR/ ACTIVITY Units Unit cost Margin) Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Phy units Bank loan Small scale industry upto 500.0 lakh No. 400.000 300.000 0 0.00 1 300.00 1 300.00 2 600.00 2 600.00 0 0.00 2 600.00 1 300.00 25 7500.00 Medium industry upto 1000.0 lakh No. 750.000 562.500 5 2812.50 III. Service Micro Enterprise (<2.0 lakh) 1.155 0.924 500 462.00 425 392.70 425 392.70 550 508.20 650 600.60 400 369.60 430 397.32 650 600.60 8000 7392.00 Micro Enterprise (2.0 to 10.0 lakh) 2.000 1.600 160 256.00 175 280.00 150 240.00 125 200.00 150 240.00 110 176.00 105 168.00 92 147.20 2000 3200.00 KVI 10.000 8.000 75 600.00 110 880.00 90 720.00 105 840.00 90 720.00 85 680.00 80 640.00 60 480.00 1500 12000.00 Small Enterprise upto200.00 lakh 50.000 40.000 6 240.00 5 200.00 4 160.00 4 160.00 5 200.00 8 320.00 8 320.00 6 240.00 100 4000.00 Medium Enterprise upto 500.00 lakh 210.000 168.000 0 0.00 1 168.00 1 168.00 2 336.00 2 336.00 0 0.00 2 336.00 1 168.00 25 4200.00 Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0.00 MSME through MFI 0 0.00 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 GCC/ SCC/ Weavers credit card 1.200 1.080 625 675.00 500 540.00 520 561.60 625 675.00 750 810.00 500 540.00 530 572.40 750 810.00 10000 10800.00 Cooperatives of Artisans, Village & Cottage Industries 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0.00 MSME (SHG mode particularly for service sector activities 5.000 5.000 245 1225.00 190 950.00 225 1125.00 275 1375.00 325 1625.00 215 1075.00 200 1000.00 300 1500.00 4000 20000.00 Small Road & water Transport Operators (SR&WTO) 5.000 4.000 5 20.00 10 40.00 10 40.00 15 60.00 15 60.00 5 20.00 20 80.00 10 40.00 250 1000.00 Professionals & self employed No. 10.000 7.500 10 75.00 20 150.00 20 150.00 30 225.00 30 225.00 10 75.00 40 300.00 20 150.00 500 3750.00 Sub Total : MSME - Fixed Capital 4847.00 4952.70 5057.30 7370.69 7056.60 3935.60 5413.72 5695.80 98661.60 MSME - Working Capital Micro Industries No. 10.000 7.500 45 337.50 20 150.00 20 150.00 20 150.00 16 120.00 15 112.50 15 112.50 15 112.50 300 2250.00 Small Industries No. 50.000 37.500 1 37.50 2 75.00 3 112.50 2 75.00 3 112.50 4 150.00 3 112.50 3 112.50 45 1687.50 Medium Industries No. 200.000 150.000 10 1500.00 Handlooms No. 0.500 0.375 310 116.25 250 93.75 260 97.50 325 121.88 375 140.63 250 93.75 265 99.38 365 136.88 5000 1875.00 KVI 2.500 1.875 5 9.38 10 18.75 10 18.75 15 28.13 15 28.13 5 9.38 20 37.50 10 18.75 250 468.75 Retail Trade & Small Business 1.500 1.125 375 421.88 350 393.75 300 337.50 400 450.00 425 478.13 400 450.00 400 450.00 605 680.63 6350 7143.75 Sub Total : MSME Working Capital 922.50 731.25 716.25 825.00 879.38 815.63 811.88 1061.25 14925.00 MSME Total :MSME - Fixed Capital +MSME Working Capital 5769.50 5683.95 5773.55 8195.69 7935.98 4751.23 6225.60 6757.05 113586.60 EXPORT CREDIT Pre-Shipment/ Packing credit Groundnut kernels No. 75.000 56.250 0 0.00 0 0.00 0 0.00 1 56.25 0 0.00 0 0.00 0 0.00 0 0.00 2 112.50 Fruits & Vegetables No. 200.000 150.000 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 150.00 Silk sarees & readymade garments No. 125.000 93.750 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 187.50 Mineral ores No. 250.000 187.500 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 187.50 2 375.00 Post-Shipment credit Groundnut kernels No. 100.000 75.000 0 0.00 0 0.00 0 0.00 1 75.00 0 0.00 0 0.00 0 0.00 0 0.00 2 150.00 Fruits & Vegetables No. 250.000 187.500 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 187.50 Silk sarees & readymade garments No. 150.000 112.500 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2 225.00 Mineral ores No. 300.000 225.000 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 225.00 2 450.00 Sub Total : Export Credit 0.00 0.00 0.00 131.25 0.00 0.00 0.00 412.50 1837.50

EDUCATION LOANS Educatioal Loans to Students pursuing Engineering, Medicine and other professional courses viz., MBA, CA and MCA etc., in Indian Colleges and Universities No. 5.000 5.000 75 375.00 105 525.00 85 425.00 85 425.00 85 425.00 85 425.00 75 375.00 90 450.00 1600 8000.00 Educatioal Loans to Students pursuing other Vocational courses No. 2.000 2.000 10 20.00 15 30.00 20 40.00 33 66.00 25 50.00 25 50.00 25 50.00 45 90.00 400 800.00 Sub Total : Education Loans 395.00 555.00 465.00 491.00 475.00 475.00 425.00 540.00 8800.00 HOUSING LOANS Housing loans to individuals up to 20.0 lakjh (including purchase of plots for housing purpose) 20.000 18.000 160 2880.00 175 3150.00 150 2700.00 75 1350.00 70 1260.00 95 1710.00 250 4500.00 92 1656.00 2000 36000.00 Housing loans to individuals up to 2.0 lakjh for carrying repairs to the existing house No. 2.000 1.800 6 10.80 5 9.00 4 7.20 4 7.20 5 9.00 8 14.40 8 14.40 6 10.80 100 180.00 Sub Total : Housing Loans 2890.80 3159.00 2707.20 1357.20 1269.00 1724.40 4514.40 1666.80 36180.00

RENEWABLE ENERGY AND WASTE MANAGEMENT BIOGAS UNITS 2Cum capacity No. 0.170 0.153 200 30.60 175 26.78 200 30.60 175 26.78 200 30.60 175 26.78 200 30.60 175 26.78 3000 459.00 SOLAR HOME LIGHTING : 100 Wp No. 0.168 0.151 250 37.80 250 37.80 250 37.80 250 37.80 250 37.80 250 37.80 250 37.80 270 40.82 4000 604.80 200 Wp No. 0.336 0.302 125 37.80 100 30.24 100 30.24 100 30.24 125 37.80 125 37.80 100 30.24 125 37.80 2000 604.80 500 Wp No. 0.504 0.403 30 12.10 35 14.11 20 8.06 25 10.08 30 12.10 35 14.11 30 12.10 35 14.11 500 201.60 1 KV No. 1.680 1.512 3 4.54 2 3.02 3 4.54 5 7.56 3 4.54 2 3.02 3 4.54 5 7.56 50 75.60 Solar Water Heating No. 0.180 0.162 5 0.81 5 0.81 5 0.81 5 0.81 5 0.81 5 0.81 5 0.81 5 0.81 100 16.20 Solar Lights (LED Luminarie) No. 0.108 0.097 10 0.97 10 0.97 10 0.97 10 0.97 10 0.97 10 0.97 10 0.97 10 0.97 200 19.44 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT STATE : Andhra Pradesh (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

Priority Sector - Others Micro Loans to SHGs for miscellaneous livelihoods (including consumption) No. 1.000 1.000 5000 5000.00 500 500.00 125 125.00 400 400.00 250 250.00 500 500.00 200 200.00 325 325.00 300 300.00 Loans not exceeding Rs. 50000/- per borrower directly or to the SHGs/ JLGs No. 0.500 0.500 1000 500.00 95 47.50 65 32.50 65 32.50 55 27.50 40 20.00 45 22.50 50 25.00 50 25.00 Loans to distressed persons to prepay their debt to non institutional borrowers No. 0.500 0.500 500 250.00 30 15.00 35 17.50 30 15.00 35 17.50 30 15.00 35 17.50 30 15.00 35 17.50 OD extended by Banks up to Rs. 5000/- under PMJDY No. 0.050 0.050 4000 200.00 300 15.00 230 11.50 225 11.25 225 11.25 250 12.50 250 12.50 250 12.50 250 12.50 Loans under various schemes of state sponsored Corporations etc.. No. 0.600 0.300 5000 1500.00 500 150.00 125 37.50 400 120.00 250 75.00 500 150.00 200 60.00 325 97.50 300 90.00 Sub Total : Priority Sector - Others 7450.00 727.50 224.00 578.75 381.25 697.50 312.50 475.00 445.00

SOCIAL INFRASTRUCTURE INVOLVING BANK CREDIT Schools - primary No. 15.000 12.000 50 600.00 0 0.00 3 36.00 5 60.00 3 36.00 3 36.00 3 36.00 3 36.00 3 36.00 Schools - secondary No. 25.000 20.000 30 600.00 0 5 100.00 4 80.00 5 100.00 0 0 0 0 Schools higher secondary No. 45.000 36.000 20 720.00 2 72.00 1 36.00 2 72.00 1 36.00 2 72.00 1 36.00 1 36.00 1 36.00 Health care centers No. 20.000 16.000 20 320.00 2 32.00 1 16.00 2 32.00 1 16.00 2 32.00 1 16.00 1 16.00 1 16.00 Drinking water schemes No. 50.000 40.000 50 2000.00 0 0.00 3 120.00 5 200.00 3 120.00 3 120.00 3 120.00 3 120.00 3 120.00 Water purification plant (RO Plant) No. 5.000 4.000 30 120.00 0 5 20.00 4 16.00 5 20.00 0 0 0 0 Sanitation facilities - ISL No. 0.200 0.160 50000 8000.00 1000 160.00 1500 240.00 4000 640.00 3000 480.00 5000 800.00 3000 480.00 3500 560.00 3000 480.00 Sanitation facilities - CC roads with drainage provision on either side of the road 100 mtrs 0.500 0.400 2000 800.00 200 80.00 115 46.00 90 36.00 115 46.00 125 50.00 115 46.00 120 48.00 95 38.00 Sub Total : Social Infrastructure involving bank credit 13160.00 344.00 614.00 1136.00 854.00 1110.00 734.00 816.00 726.00 GRAND TOTAL : PRORITY SECTOR 703155.87 53635.78 44058.09 39970.69 49340.39 49165.44 32752.25 45691.92 47806.69 Annexure I PLP 2016 -17 - ANANTHAPURAM DISTRICT (RS.LAKH) JOINT MANDAL-WISE/ SECTOR-WISE/ACTIVITY-WISE POTENTIAL LINKED PHYSICAL AND FINANCIAL ESTIMATES

Priority Sector - Others Micro Loans to SHGs for miscellaneous livelihoods (including consumption) No. 1.000 1.000 310 310.00 250 250.00 260 260.00 325 325.00 375 375.00 250 250.00 265 265.00 365 365.00 5000 5000.00 Loans not exceeding Rs. 50000/- per borrower directly or to the SHGs/ JLGs No. 0.500 0.500 60 30.00 55 27.50 80 40.00 65 32.50 60 30.00 60 30.00 80 40.00 75 37.50 1000 500.00 Loans to distressed persons to prepay their debt to non institutional borrowers No. 0.500 0.500 30 15.00 35 17.50 20 10.00 25 12.50 30 15.00 35 17.50 30 15.00 35 17.50 500 250.00 OD extended by Banks up to Rs. 5000/- under PMJDY No. 0.050 0.050 250 12.50 250 12.50 250 12.50 250 12.50 250 12.50 250 12.50 250 12.50 270 13.50 4000 200.00 Loans under various schemes of state sponsored Corporations etc.. No. 0.600 0.300 310 93.00 250 75.00 260 78.00 325 97.50 375 112.50 250 75.00 265 79.50 365 109.50 5000 1500.00 Sub Total : Priority Sector - Others 460.50 382.50 400.50 480.00 545.00 385.00 412.00 543.00 7450.00

SOCIAL INFRASTRUCTURE INVOLVING BANK CREDIT Schools - primary No. 15.000 12.000 3 36.00 3 36.00 3 36.00 3 36.00 4 48.00 3 36.00 3 36.00 5 60.00 50 600.00 Schools - secondary No. 25.000 20.000 0 0 3 60.00 1 20.00 2 40.00 2 40.00 4 80.00 4 80.00 30 600.00 Schools higher secondary No. 45.000 36.000 1 36.00 1 36.00 1 36.00 1 36.00 1 36.00 1 36.00 1 36.00 2 72.00 20 720.00 Health care centers No. 20.000 16.000 1 16.00 1 16.00 1 16.00 1 16.00 1 16.00 1 16.00 1 16.00 2 32.00 20 320.00 Drinking water schemes No. 50.000 40.000 3 120.00 3 120.00 3 120.00 3 120.00 4 160.00 3 120.00 3 120.00 5 200.00 50 2000.00 Water purification plant (RO Plant) No. 5.000 4.000 0 0 3 12.00 1 4.00 2 8.00 2 8.00 4 16.00 4 16.00 30 120.00 Sanitation facilities - ISL No. 0.200 0.160 3000 480.00 3000 480.00 3000 480.00 3500 560.00 4000 640.00 2500 400.00 3000 480.00 4000 640.00 50000 8000.00 Sanitation facilities - CC roads with drainage provision on either side of the road 100 mtrs 0.500 0.400 120 48.00 120 48.00 155 62.00 115 46.00 125 50.00 105 42.00 135 54.00 150 60.00 2000 800.00 Sub Total : Social Infrastructure involving bank credit 736.00 736.00 822.00 838.00 998.00 698.00 838.00 1160.00 13160.00 GRAND TOTAL : PRORITY SECTOR 39351.40 38450.46 35887.58 44476.22 44217.62 35145.11 55111.52 48094.72 703155.87 ANNEXURE - II (A) AN OVERVIEW OF FLOW OF GROUND LEVEL CREDIT STATE:ANDHRA PRADESH

Sr. No. Agency/Category 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 1 Crop Loan Target Ach. Target Ach. Target Ach. Target Ach. Target Ach. Target CBs 110800 140693 132892 123072 141527 135212 182645 222455 193969 144413 217217 SCB 27200 19441 29050 25375 40850 35130 34520 35870 39698 28136 43667 SCARDB 0 0 0 0 0 0 0 0 0 0 RRB 42000 50516 51200 63143 65228 78861 95565 85732 97833 24113 98618 Others 0 0 0 0 0 0 0 0 0 0 Sub-Total (A) 180000 210650 213142 211590 247605 249203 312730 344057 331500 196662 359502 2 Term Loan (MT+LT)* CBs 15789 39855 29345 42238 29116 28231 36237 46004 42573 33362 59408 SCB 597 44 637 19 1437 11 1841 0 2264 210 3907 SCARDB 0 0 0 0 0 0 0 0 0 0 0 RRB 1023 2359 7225 15273 3494 1419 3309 35306 9154 27335 17015 Others 0 0 0 0 0 0 0 0 0 0 Sub-Total (B) 17409 42258 37207 57530 34047 29661 41387 81310* 53991 60907 80330 3 Total Agri Credit CBs 126589 180548 162237 165310 170643 163443 218882 268459 236542 177775 276625 SCB 27797 19485 29687 25394 42287 35141 36361 35870 41962 28346 47574 SCARDB 0 0 0 0 0 0 0 0 0 0 0 RRB 43023 52875 58425 78416 68722 80280 98874 121038 106987 51448 115633 Others 0 0 0 0 0 0 0 0 0 0 0 Sub-Total (C) 197409 252908 250349 269120 281652 278864 354117 425367 385491 257569 439832 Total Agri Credit [ i.e. (A)+(B)] (D) 4 Non-Farm Sector/MSME CBs 15727 15820 18927 19251 24441 24304 22849 18120 31565 20233 30581 SCB 700 0 567 0 710 0 0 0 2 0 0 SCARDB 0 0 0 0 0 0 0 0 0 0 0 RRB 2400 2861 2582 3693 2239 2354 4253 13708 6134 6151 7022 Others- APSFC 3485 3887 5273 5402 0 5001 4038 0 0 1618 3219 Sub-Total (E) 22312 22568 27348 28346 27390 31659 31140 31828 37701 28002 40822 5 Other Priority Sector (including finance to SHGs)*** CBs 31719 16031 20724 15913 42637 56919 43030 35688 34315 20356 39981 SCB 21 415 540 389 825 476 250 0 288 0 316 SCARDB 0 0 0 0 0 0 0 0 0 0 RRB 11165 20133 7908 18265 22126 40673 28908 15262 23358 19614 20913 Others 0 0 0 0 0 0 0 0 Sub-Total (F) 42905 36579 29172 34567 65588 98068*** 72188 50950** 57961 39970 61210 6 Grand Total CBs 174035 212399 201888 200474 237721 244666 284761 322267 302423 218364 347187 SCB 28518 19900 30794 25783 43822 35617 36611 35870 42251 28346 47890 SCARDB 0 0 0 0 0 0 0 0 0 0 0 RRB 56588 75869 68915 100374 93087 123307 132035 150008 136479 77213 143568 Others 3485 3887 5273 5402 0 5001 4038 0 0 1618 3219 Grand Total(D+E+F) 262626 312055 306869 332033 374630 408591 457445 508145 481153 325541 541864 * The Term loan (for Agril. & Allied sectors also include 30069 lakh disbursed to SHGs for Farm sector purposes. ** Under OPS, out of the total disbursements made during 2013-14, 25090 lakhs is reported to be the financing to SHGs, 2619 lakh for education, 16662 lakh for housing and 6580 lakh for OPS(miscellaneous). *** Under OPS, out of the total disbursements made during 2012-13, 59784 lakhs is reported to be the financing to SHGs, 10 lakh for retail trade, 3544 lakh for education, 16121 lakh for housing and 18593 lakh for OPS(miscellaneous). ANNEXURE II - B

SUBSECTOR DETAILS OF GROUND LEVEL CREDIT DISBURSEMENTS UNDER AGRICULTURE & ALLIED ACTIVITIES BY ALL AGENCIES DURING 2012-13 to 2014-15 STATE:ANDHRA PRADESH (Amount in Lakh) Sector 2012-13 2013-14 2014-15 2015-16(Target) CBs Coops RRBs Total CBs Coops RRBs Total CBs Coops RRBs Total CBs Coops RRBs Total I. CropLoan 135212 35130 78861 249203 222455 35870 85732 344057 144413 28136 24113 196662 217217 43667 98618 359502 Minor Irrigation 1983 3 137 2123 595 0 311 906 164 7 78 249 3006 571 222 3799 Land Development 587 0 0 587 793 0 5 797 418 0 3 421 1752 161 161 2074 Farm Mechanisation 3064 0 59 3123 937 0 82 1018 181 0 78 259 3542 486 494 4522 Plantation &Horticulture (incldg Sericulture) 4395 4 0 4399 678 0 118 796 555 0 19 574 6189 454 438 7081 Forestry & Wasteland Development (including 16 0 0 16 1 0 2 2 155 0 79 143 0 120 263 ATL - Others viz., Bullock, Bullock carts; Solar domestic lighting & water heating systems etc..) 234 Others including SHG Farm sector 43694 14628 25 13502 28155 2900 255 401 3556 AH - Dairy Development 4910 4 356 5270 1067 0 168 1235 5663 0 3049 8712 9244 860 1985 12089 AH- Poultry Development 653 0 45 698 46 0 3 49 124 0 0 124 1515 36 50 1601 AH - Sheep, Goat & Piggery 2088 0 111 2199 492 0 95 587 2571 3 2373 4947 4699 366 950 6015 Others (includes SHG- Allied activities & other 7366 0 3253 10619 0 14380 30842 8832 175 8153 Misc..) 16462 17160 24343 524 12128 36994 Fisheries 35 0 0 35 0 0 0 0 0 0 0 0 166 23 6 195 Storage Godowns & Marketing Infrastructure 507 0 85 592 1383 0 1 1384 71 0 1 72 1909 173 60 2142 Subtotal - II 25604 11 4046 29661 22453 0 15164 81310 33362 210 27335 60907 59408 3907 17015 80330 Grand total (I + II) 160816 35141 82907 278864 244908 35870 100896 425367 177775 28346 51448 257569 276625 47574 115633 439832 Annexure IV

Indicative Unit Costs for Major Activities as Arrived at by NABARD for its internal use

Sl. Unit Cost Name of the Activity Unit No. (`Rs) Water Resources 1 Bore well + Submersible Pump set ( Max. 400 ft depth) 1 105000 2 Submersible Pump set 1 60000 33000 to 3 Drip irrigation (for 1 ac)- Sweet Orange, Mango, Pomegranate, Sapota 1 38000 4 Drip irrigation - Watermelon & Muskmelon ha 60000 5 Drip irrigation - Vegetables ha 118000 6 Drip irrigation - Mulberry cultivation ha 84000 7 Sprinkler irrigation 2ha (pipe dia-90 mm) ha 34000 8 Pipe line (3”x 3.5”) 150 m per ha ha 21000 Land Development 10 Land reclamation ha 15000 11 Tank silt application ha 18000 Watershed development involving works such as Contour bunding, 12 ha 37000 Stone gully plugs & Earthen gully plugs 13 Land leveling/ OFD works (2% slope) ha 25400 14 (a) Vermi compost unit (1.8 TPA capacity) 1 20000 14(b) Vermi compost unit (20 TPA) 1 233000 14(c) Vermi-Hatchery (260 TPA) 1 1017000 15 (a) Farm pond - 15m x 15m X 3m (Red soils) 1 112000 15(b) Farm pond - 18m x 18 m X 3m (Black soils) 1 162000 15(c) Mini Farm pond - 10m x 10m X 2.5m 1 62400 16 NADEP compost unit (10’x6’x3’) 1 12500 17(a) Fencing with cement pole ha 23500 17(b) Fencing with rock poles ha 15000 18 Bio-fertiliser and Bio-pesticide unit (200TPA) 1 19307300 Farm Mechanisation 550000 19 Tractor with matching equipment and trolley (30 to 47 hp) 1 to 850000 20 Power Tiller with matching equipment 1 225000 21 Mini Tractor (15-24 HP) 1 450000 22 Multi crop thresher 1 100000 23 Multi crop thresher, Tractor drawn 1 145000 24 Combine Harvester 1 2000000 Ground Nut thresher of capacity 300-500Kg/ hrwith 10 hp air cooled 25 1 130000 diesel engine Groundnut decorticator rocking type, 200 to 400 Kgs/ hr with 2 hp 26 (a) 1 45000 electric motor Groundnut decorticator rotary type, 200 to 400 Kgs/ hr with 2 hp 26 (b) 1 28000 electric motor 26 (c) Groundnut sheller (7.5 hp diesel engine operated) 1 200000 27 Solar fencing –five lines and 7’ poles ha 60000 Plantation Horticulture & Sericulture 28 Mango ac 50400 29 Sweet orange/Citrus ac 50200 30 Banana tissue culture (1.65 x1.65 M) ac 80100 31 Pomegranate ac 58800 32 Sapota ac 30800 33 Papaya ac 98400 34 Floriculture ac 76000 35 Medicinal &Aromatic plants ac 43000 36 Mulberry plantation ac 23000 37 Rearing shed Type- I : 1000 sq.ft : 50’X20’X15’ 1 275000 38 Rearing shed Type-II : 700 sq.ft : 30’X20’X15’ 1 175000 39 Rearing equipment 70000 40 Rearing cost for two crops @ 4500/- per cycle 1 9000 41 Silkworm rearing shed (50’X20’X15’) – 100 sq.ft 1 275000 42 Chawkie rearing unit 1 600000 43 Kissan nurseries 1 176000 Forestry & Wasteland development 44 Farm Forestry (Eucalyptus - Clonal) ha 58700 72500 43600 45 Wasteland development (Teak, Bamboo, Casuarinas, Subabul etc.) ha 71400 66300 Dairy Development 46 Graded Murrah Buffaloes (6 LPD) Pair 1+1 99300 47 CB Cows (8 LPD) Pair 1+1 103400 48 Female Calf rearing – 20 no.s unit 1 26500 49 Mini Dairy (3+2) CBC 3+2 284300 50 Mini Dairy (3+2)GMB 3+2 294800 51 Mini Dairy (5+5)CBC 5+5 595750 52 Mini Dairy (5+5)GMB 5+5 616650 53 Fodder cultivation acre 17200 54 Bulk Milk Cooling Units (2000 liters capacity) 1 1200000 55 Milk processing unit (10,000 liters capacity) 1 17500000 Poultry Development 56 Contract Broiler farming (1000 Birds) @161/- per bird 1 161000 57 Independent Broiler Units (5000 Birds)@ 320/- per bird 1 1600000 58 Commercial Layer units (50000 Birds) @ 495/- per bird 1 2475000 59 Working Capital for layer Unit 1 1400000 60 Feed mixing Plant (1 ton/hr capacity) 1 1600000 61 Chicken processing / Marketing Units 1 200000 Sheep, Goat & Piggery 62 Sheep breeding (Nellore breed) 20 +1 111300 63 Goat breeding (Osmanabadi breed) 20 +1 99500 64 Ram lamb fattener - 20 per batch 1 63800 65 Goat rearing (Osmanabadi) 20 +1 1 110300 66 (a) Piggery small breeding unit 3 +1 78000 66 (b) Piggery breeding unit 10 +1 10+1 178400 66 (c) Piggery fattener unit 10 27200 67 Meat Shops 1 160000 Fisheries 68 Inland fish farming (new ponds) – 2 ha ha 329300 69 Insulated ice boxes 1 6000 Storage Godowns and Marketing Infrastructure 70 Rural Godowns - @3000/- per MT (capacity: 5000 tons) 1 15000000 71 Cold storage unit - @4000/- per MT (Capacity: 5000 MT) 1 20000000 72 Seed processing unit 2 TPH 1 8000000 Renewable Sources of Energy & others 73 Installation of solar Inverter for Home lighting Wp 270/- 74 (a) Solar Water Pumping System with AC motor 5.0 hp 1 500000 74 (b) Solar Water Pumping System with DC motor 5.0 hp 1 558000

75 (a) Bullocks - non descript Pair 36000 75 (b) Bullocks – Hallikar Pair 60000 76 (a) Bullock carts (3 MT) with pneumatic tyre cart 1 42900 76 (b) Carts of local make with wooden frame 1 36400

Note: (i) While estimating projections for 2016-17, we have assumed notional increase of upto 10% over and above the Unit Cost fixed by State Level Unit Cost Committee for the year 2015-16.

PLP 2016-17 Ananthapuram

Annexure V Scale of Finance for Major Crops fixed by District Level Technical Committee (DLTC) for 2015-16

Sl No Name of the Crop Scale of Finance AGRICULTURE 1 Bajra Rainfed 4500 - 5500 2 Bajra (Irrigated HYVs) 5000 - 6000 3 Jowar (Rain fed) 6500 - 7500 4 Jowar (Irrigated HYVs) 11000 – 12000 5 Jowar ( Seed Production) 12000 – 12500 6 Maize ( Rainfed) 6500 - 7500 7 Maize ( Irrigated) 10500 – 11500 8 Paddy (Short Term) 12500 – 13000 9 Paddy (long term) 13500 – 14000 10 Paddy (Sri paddy) 12500 – 15000 11 Ragi (Irrigated ) 7500 – 8000 12 Bengal Gram (Rain fed/ Irrigated Dry) 8000 – 8500 13 Black Gram 6000 – 6500 14 Green Gram 8000 – 9000 15 Redgram 7500 – 8000 16 Castor ( Rainfed) 7000 – 7500 17 Castor ( Irrigated) 8500 - 9000 Ground nut - Rainfed (Intercrop 18 Redgram) 12500 – 13000 19 Groundnut (Irrigated) 15500 – 16000 20 Sesamum 5500 – 6000 21 Sunflower – Rain fed 8000 – 9000 22 Sunflower (Irrigated) 10000 - 11000 23 Cotton Short Term 15000 – 16000 24 Cotton ( Irrigated) 21000 - 22000 25 Sugarcane (Plantation) 25000 – 26000 26 Sugarcane (Ratoon) 21000 – 22000 27 Chillies ( Irrigated ) 10000-11000 28 Coriander (Rainfed) 5500-6500 29 Guar (Seed gum) 9000 - 9500 30 Onions HYVP 13000 – 14000

PLP 2016-17 Ananthapuram

Scale of Finance(SoF) Sl No Name of the Crop per acre MULBERY CULTIVATION 31 Variety V1 35000 – 38000 32 Other Varieties 20000 - 22000 SILK WORM REARING 33 Bivoltine Variety 23000 – 25000 34 Other Varieties 15000-18000 HORTICULTURE (FRUITS, VEGETABLES, FLOWERS & PLANTATION CROPS) 35 Banana Tissue culture 65000 - 70000 36 Banana Tissue culture (2nd Year) 32500 - 35500 37 Ber 20500 - 225000 38 Citrus 26000 - 27000 39 Fig 10500 – 11500 40 Grape 78500 – 80000 41 Guava 17500 - 19500 42 Mango 21000 - 22000 43 Musk melon /watermelon 35500 - 40500 44 Papaya 45500 - 50500 45 Pomegranate 48000 - 50000 46 Sapota 18000 – 19000 47 Brinjal (Hybrid) 16500 – 17500 48 Tomato (Hybrid) 16500 – 17500 49 Other Vegetables 10500 – 12500 50 Jasmine / Lily 14500 – 15500 51 Rose 50500 - 53500 52 Arecanut 37000 - 40000 53 Coconut 10500 - 12500 54 Curry leaves 20500 - 21500 55 Oil palm 15500 - 20500 56 Tamarind 13500 – 14500

Note: (i) While estimating projections for 2016-17, we have assumed notional increase upto 10% over and above the scale of finance fixed by District Level Technical Committee for the year 2015-16. (ii) As per revised KCC scheme guidelines, banks may sanction the crop loan amount based on scale of finance plus 10% towards post harvest / consumption plus 20% towards repairs and maintenance of farm assets. Annexure VI (i) Block wise details of potential available for promotion and savings linkage of SHGs

Total potential No. of SHGs savings No. of SHGs to be No. of SHGs to be Sl. Balance potential as on Name of the block/ Joint mandal for promotion of linked promoted and savings promoted and savings No. 31 March 2015 SHGs as on 31 March 2015 linked during 2015-16 linked during 2016-17

I Velugu programme : Rural SHGs 1 Ananthapuram 4336 4241 95 51 44

2 C K Palli 2470 2403 67 35 32

3 Dharmavaram 2453 2384 69 35 34

4 Gooty 3966 3869 97 49 48

5 Hindupur 5409 5292 117 57 60

6 Kadiri - East 3461 3345 116 55 61

7 Kadiri - West 3995 3873 122 61 61

8 Kalyandurg 3080 3029 51 28 23

9 Kambadur 3926 3836 90 46 44

10 Kanekal 1853 1803 50 26 24

11 Madakasira 4750 4632 118 63 55

12 Penukonda 5418 5274 144 74 70

13 Rayadurg 2200 2130 70 32 38

14 Singanamala 4118 4023 95 49 46

15 Uravakonda 3057 2984 73 37 36

16 Tadipatri 3589 3468 121 64 57

Sub Total : Rural SHGs 58081 56586 1495 762 733 MEPMA : Urban SHGs in 12 II 16271 14826 1445 740 705 Muncipalilties Dist. Total 74352 71412 2940 1502 1438