2109162152PLP 2016-17 Chittoor (AP).Pdf

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

 Chittoor

 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 INDEX

Chapter Particular Page Executive Summary 1 District Profile 7 Banking Profile 9 1 Policy Initiatives 11 2 Government Sponsored Programmes with Bank Credit 15 3 Credit Potential for Agriculture 2016-17 3.1 Farm Credit 18 3.1.1 Crop production, Maintenance and Marketing 18 3. 1.2 Water Resources 22 3. 1.3 Farm Mechanization 23 3. 1.4 Plantation and Horticulture 25 3. 1.5 Forestry and Waste Land Development 29 3. 1.6 Animal Husbandry - Dairy 30 3. 1.7 Animal Husbandry - Poultry 32 3. 1.8 Animal Husbandry - Sheep, Goat, Piggery 34 3. 1.9 Fisheries 35 3. 1.10 Others 36 3.2 Agriculture Infrastructure 3.2.1 Construction of Storage Facilities 37 3.2.2 Land development, Soil conservation, Watershed development 39 3.2.3 Others 41 3.3. Ancillary Activities 3.3.1 Food and Agro Processing 43 3.3.2 Others 45 4 Credit Potential for Micro Small and Medium Enterprises 2016-17 48 5 Potential for Export Credit --2016-17 51 6 Credit Potential for Education --2016-17 54 7 Credit Potential for Housing --2016-17 56 8 Credit Potential for Renewable Energy --2016-17 58 9 Credit Potential for Others --2016-17 60 10 Infrastructure Support 10.1 Infrastructure – Public Investments 62 10.2 Social Infrastructure Involving Bank Credit 66 11 Informal Credit Delivery System 69 12 Area Development Plan/ Scheme 72 Annexures Annex I Activity-wise/ Block-wise Physical and Financial Projections 73 Annex II An Overview of GLC – Agency-wise and Sector-wise 81 Annex III Sub-Sector-wise and Agency-wise Credit Flow under Agriculture and 82 Allied Activities Annex IV Indicative Unit Cost for Major Activities as Arrived at by NABARD for 83 its Internal Use Annex V Scale of Finance for Major Crops Fixed by District Level Technical 85 Committee for 2015-16 Annex VI (i) Block wise Details of Potential Available for Promotion and Saving 86 Linkage of SHGs/ JLGs Annex VI (ii) Block wise Potential for Credit Linkage of SHGs / JLGs 87

EXECUTIVE SUMMARY

The theme for PLP 2016-17 shall continue to be “Accelerating the pace of capital formation in agriculture and allied sector”. The geographical area of Chittoor district is 15152 sq. km. and it is divided into 3 revenue divisions viz., Chittoor, Madanapalle and Tirupati. The population of the district as per 2011 census was 41.74 lakh, of which the share of rural and urban population was at 71% and 29%, respectively. The district receives an annual rainfall of 934 mm, soils are predominantly red/alluvial type and irrigation is primarily from bore wells or tanks with only 39.46% of net sown area under irrigation, reflecting the rain fed nature of agricultural economy. Tourism is the next most important economic activity in the district with renowned pilgrimage centers viz., Tirumala, Tiruchanoor, Srikalahasthi, Kanipakam and other tourist centers like Chandragiri fort, Horsely hills, Kailasakona and Talakona, which contribute significantly to the District economy in addition to handicraft and handloom sector.

The PLP - 2016-17 is prepared with reference to the Base PLP - 2012-17 and based on a realistic sectoral analysis. Further, RBI has revised the Priority Sector Lending (PSL) norms. The Priority Sector has been classified into eight broad sectors viz, (i) Agriculture (ii) Micro, Small and Medium Enterprises (iii) Export Credit (iv) Education (v) Housing (vi) Social Infrastructure (vii) Renewable Energy and (viii) Others. The revisions in the sub sectors and activities covered under each broad sector have been suitably incorporated in the document. In view of the changes brought out by RBI in the coverage, composition and classification of activities covered under PSL, the composition and content of PLP document have been revised so as to align with the revised guidelines on PSL. The Farmers in the district have practiced crop and enterprise diversification with tree based cropping (mango, other fruit crops), enterprise diversification (mulberry sericulture), animal husbandry (dairy, sheep rearing), commercial crops (tomato, sugarcane), and with good processing industry base effectively adopting risk mitigating techniques. The District has also rich tradition of handicrafts and weaving activities. The processing industry thrive in the district due to proximity to two metros viz. Chennai and Bangalore, wherein the local entrepreneurs are able to effectively leverage skilled manpower. NABARD was able to showcase how a JLG can be profitable under UPNRM and Kamadhenu programmes. The Stage is set for formation of Farmer Producer Organizations (FPOs) which are likely to address to marketing by aggregating the produce in the district.

The revised KCC norms envisage fixing of comprehensive credit limit for a period of 5 years, by including the cost of crop production, marketing, maintenance of assets, working capital needs of allied sector and planned capital investments, besides insurance and consumption/emergent needs. Besides the traditional crops receiving production credit, focus is sought in crops like mango, tomato, potato, and mulberry, besides pledge finance for produce marketing through accredited warehouses or cold storages. The potential for the year 2016-17 under Crop Production is assessed at `356,655.44 lakh.

The depleting ground water table in the district has been a cause for concern as 15 out of the 66 Mandals are over exploited (> 100%), 7 are critical (90-100%), 18 are Semi critical ( 70- 90%) and remaining 26 are safe (< 70%). Since the available water resources are limited, Department of Agriculture and Horticulture are promoting use of micro irrigation, mulching and conservation of soil and moisture under watershed approach by DWAMA and NABARD. A credit potential of ` 14042.05 lakh for the year 2016-17 is assessed under Water Resources Chapter. Mechanisation in agriculture is transforming from traditional tillage and harvesting model to comprehensive crop based mechanisation in crops like sugarcane, groundnut and paddy. Considering these structural changes and Customer Service Centre models promoted by Department of agriculture, the PLP projections under Farm Mechanisation are estimated at ` 16767.85 lakh. 1

Plantation and Horticulture is also predominant in Chittoor district owing to its proximity to metros viz., Chennai and Bangalore. The Credit flow to horticulture and sericulture sector is focused on ultra-high density orchards for meeting processing needs, contract production of vegetables on trellis for organized retail/processing, packing credit for bearing orchards under aegis of AEZ/ SEZ/ Mega Food Parks, working capital needs of mulberry farmers and most importantly on post-harvest management viz., collection centers, logistics, ripening chambers, mechanization and solar powered operations. Farm ponds as a source of irrigation during summer periods is projected to be a major credit linked initiative for climate proofing of horticulture in the district. The potential for the year 2016-17 under Plantation Horticulture and Sericulture is assessed at ` 17527.07 lakh.

Milch animal rearing is a major subsidiary activity in the district, especially for small and marginal farmers and women. Milch animal rearing is being encouraged by the State Government through Animal Husbandry Department actively. A credit potential of ` 77499.14 lakh has been projected for the year 2016-17 under Dairy Sector. Under poultry sector, credit intensification through individual or value chain approach for broiler and layer sector is sought to be achieved in a phased manner. In addition, backyard poultry through integrated services is projected as a major livelihood activity in the district, besides supporting hatcheries, feed mills and market outlets. The availability of grazing lands, abundance of fodder developed in private lands and the initial success of silages is sought to be leveraged for financing of sheep and other small ruminants, through active involvement of traditional shepherds and SHG network. The potential for the year 2016-17 under Animal Husbandry –Poultry and Sheep, Goat and Piggery is estimated at ` 7058.04 lakh and `13191.36 lakh, respectively.

As per the revised PSL guidelines, the following activities are covered under Agriculture Infrastructure viz. Loans for construction of storage facilities (warehouses, market yards, godowns and silos) including cold storage units/ cold storage chains designed to store agriculture produce/products, irrespective of their location, land Development, soil conservation and watershed development, plant tissue culture, agri-biotechnology, seed production, production of bio-pesticides, bio-fertilizer, and vermi composting. The credit estimated under PLP 2016-17 in respect of the above activities is `3761.12 lakh, `11,299.43 lakh and `5,488.29 lakh, respectively. Under Ancillary Activities, the potential for Loans up to `5 crore to co-operative societies of farmers for disposing of the produce of members and Loans for setting up of Agri-clinics and Agri-business Centres together with Loans for Food and Agro-processing from the banking system is estimated at `28638.60 lakh.

The credit potential for Micro Small and Medium Enterprises (MSMEs) has been assessed keeping in view the GoI’s programmes to make the country a manufacturing hub through “Skill India” and “Make in India” programmes. The activities covered under MSME sector have been arrived at in consultation with District Industries Department. The credit potential under MSME assessed for the year 2016-17 is at `141,529.20 lakh in this regard. Export credit sub sector has now been brought under the ambit of PSL which includes preshipment and post shipment export credit. Accordingly, a credit potential of ` 40,128.00 lakh has been made. The Education Loans to individuals for educational purpose including vocational courses up to `10 lakh, as per new guidelines, is assessed at ` 14,080.00 lakh. The Housing (Loans to individuals `20 lakh in non-metro centres for purchase/ construction of dwelling units and for repairs up to `2 lakh) covered under “Other Priority Sector” is now assessed separately under “Housing” at ` 30,800.00 lakh.

In terms of revised RBI guidelines on PSL, loans not exceeding ` 50,000/- per borrower provided directly by banks to individuals and their SHG/JLG, loans to distressed persons to prepay their debt to non-institutional lenders and overdrafts extended by banks up to ` 5,000/- under PMJDY besides loans sanctioned to State Sponsored Organisations for SCs/ STs specifically for purchase and supply of inputs and/or the marketing of the outputs of the beneficiaries of these organisations are assessed under the sector ‘’Others’’ at a credit potential of ` 117910 lakh. The potential for investments which can come up through private participation has been assessed under Infrastructure Support for Social infrastructure involving bank credit, is ` 3020.00 lakh.

BROAD SECTOR WISE PLP PROJECTIONS - 2016-17

(` lakh) Sr. Particulars Projections 2016-17 No. A Farm Credit i Crop Production, Maintenance and Marketing 356,655.44 ii Term Loan for agriculture and allied activities 151,241.09 Sub Total 507,896.53 B Agriculture Infrastructure 20,548.84 C Ancillary activities 28,638.60 I Credit Potential for Agriculture (A+B+C) 557,083.97 II Micro, Small and Medium Enterprises 141,529.20 III Export Credit 40,128.00 IV Education 14,080.00 V Housing 30,800.00 VI Renewable Energy 1,520.88 VII Others 117,910.00 VIII Social Infrastructure involving bank credit 3,020.00 Total Priority Sector (I to VIII) 906,072.05

SUMMARY OF SECTOR / SUB-SECTOR WISE PLP PROJECTIONS - 2016-17

(` lakh) S. No. Particulars Projections 2016-17 1 Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 356,655.44 ii Water Resources 14,042.05 iii Farm Mechanisation 16,767.85 iv Plantation and Horticulture (including sericulture) 17,527.07 v Forestry and Waste Land Development 1,985.78 vi Animal Husbandry – Dairy 77,499.14 vii Animal Husbandry – Poultry 7,058.04 viii Animal Husbandry – Sheep, Goat, Piggery, etc. 13,191.36 ix Fisheries (Marine, Inland, Brackish water) 225.14 x Others – Bullock, Bullock cart, etc. 2,944.66 Sub Total 507,896.53 B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market yards, 3,761.12 Godowns, Silos, Cold storage units/ Cold storage chains) ii Land development, Soil conservation, Watershed 11,299.43 development iii Others (Tissue culture, Agri bio-technology, Seed production, Bio 5,488.29 pesticides/ fertilizers, Vermicomposting) Sub Total 20,548.84 C Ancillary activities i Food and Agro processing 27,418.60 ii Others (Loans to Cooperative Societies of farmers for disposing 1,220.00 of their produce, Agri Clinics/ Agri Business Centres, Loans to PACS / FSS/ LAMPS, Loans to MFIs for on lending) Sub Total 28,638.60 Total Agriculture II Micro, Small and Medium Enterprises i MSME – Working capital 41,452.40 ii MSME – Investment credit 100,076.80 Total MSME 141,529.20

III Export Credit 40,128.00 IV Education 14,080.00 V Housing 30,800.00 VI Renewable Energy 1,520.88 VII Others (Loans to SHGs/ JLGs, loans to distressed persons to 117,910.00 prepay non-institutional lenders, PMJDY, loans to state sponsored Organisations for SC/ST) VIII Social Infrastructure involving bank credit 3,020.00 Total Priority Sector 906,072.05

At a Glance

Total Geographic Area : 15152 sq km Gross Cropped Area : 4.17 lakh ha Net irrigated area : 1.46 lakh ha % area under agri/allied : 70.74%

Major Crops/ Activities Production (in Million MTs.) 2014-15

Paddy Tomato 0.44 0.34 Groundnut Fruits 0.17 0.73 Mango Vegetables 0.66 0.95

Sugarcane Egg 2.56 10.11 M numbers

Agricultural Research Stations Citrus Research Station, Tirupathi KVK Karakambadi & Kalikiri

District Profile District - Chittoor State - Andhra Pradesh Division - Rayalaseema

1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 15152 Agro-climatic Zone Southern Plateau & Hills Region No. of Sub Divisions 3 No. of Blocks / Mandals 66 Climate Semi Arid No. of Villages 1540 Soil Type Red Loamy, Red Sandy, Medium Black, Coastal Alluvial and Laterite No. of Panchayats 1381 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported 1515100 Normal 2011-12 2012-13 2013-14 Actual Forest Land 452018 Rainfall [in mm] 934 934 936 745 Area Not Available for Cultivation 152700 Variation from Normal -20.00% Permanent Pasture and Grazing Land 33540 Availability of Ground Water Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops 30561 [MCM] 1684 1198 486 Cultivable Wasteland 46097 5. DISTRIBUTION OF LAND HOLDING Current Fallow 120944 Holding Area Classification of Holding Other Fallow 150207 Nos. % to Total ac % to Total Net Sown Area 371717 Marginal Farmers (<2.47 ac) 455190 68.23% 491382 32% Total or Gross Cropped Area 417066 Small farmers (2.47-4.93 ac) 144431 21.65% 501986 32% Area Cultivated More than Once 45349 Semi Medium farmers (4.97-9.87 ac) 54981 8.24% 351787 23% Cropping Inensity [GCA/NSA] 112 Medium Farmers (9.88-24.7 ac) 11511 1.73% 157438 10% Large farmers (>24.71 ac) 1069 0.16% 43841 3% Total 667182 100.00% 1546434 6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000] Cultivators 434 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers Population 4174 2090 2084 2943 1231 Agricultural Labourers 748 Scheduled Caste 786 390 396 Workers engaged in Household Industries 57 Scheduled Tribe 159 80 79 Workers engaged in Allied Agro-activities Literate 2668 1485 1183 Other workers 693 BPL 8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 848 Having brick/stone/concrete houses NA Having electricity supply 816908 Rural Households 744 Having source of drinking water NA Having independent toilets NA BPL Households 466 Having access to banking services 861000 Having radio/tv sets NA 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 1498 Anganwadis 4764 Dispensaries 2 Villages having Agriculture Power Supply 1498 Primary Health Centres 94 Hospitals 39 Villages having Post Offices 760 Primary Health Sub-Centres 644 Hospital Beds 4154 Villages having Banking Facilities 1498 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools 1413 Fertiliser/Seed/Pesticide Outlets [Nos] 1190 Agriculture Pumpsets[Nos] 266924 Villages having Primary Health Centres 443 Total N/P/K Consumption [MT] 52943 Pumpsets Energised [Nos] 265434 Villages having Potable Water Supply 1540 Certified Seeds Supplied [MT] 8533 Agro Service Centres [Nos] 360 Villages connected with Paved Approach Roads 924 Pesticides Consumed [MT] 84 Soil Testing Centres [Nos] 5 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 28615 Plantation nurseries [Nos] 21 Total Area Available for Irrigation (NIA + Fallow) Power Tillers [Nos] 102 Farmers' Clubs [Nos] 370 Irrigation Potential Created Threshers/Cutters [Nos] 267 Krishi Vigyan Kendras[Nos] 2 Net Irrigated Area(Total area irrigated at least once) 146687 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING Area irrigated by Canals / Channels 4866 Rural/Urban Mandi/Haat [Nos] 106 Wholesale Market [Nos] 44 Area irrigated by Wells 20253 Length of Pucca Road [Km] 5110 Godown [Nos] 78 Area irrigated by Tanks 16011 Length of Railway Line [Km] 290 Godown Capacity[MT] 80000 Area irrigated by Other Sources Public Transport Vehicle [Nos] 1964 Cold Storage [Nos] 15 Irrigation Potential Utilized (Gross Irrigated Area) 190580 Goods Transport Vehicle [Nos] 8070 Cold Store Capacity[MT] 44185 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) 309 Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) [Kg/Ha] Sugarcane (Gur/Khandsari/Sugar) 6 15000 TCD Groundnut 151089 135406 155078 175318 1131 Fruit (Pulp/Juice/Fruit drink) 52 Paddy 48171 174825 49860 169015 3390 Spices (Masala Powders/Pastes) Sugarcane 28106 2255928 28152 2562925 91039 Dry-fruit (Cashew/Almond/Raisins) - Tomato 16320 293760 13596 349042 25672 Cotton (Ginnining/Spinning/Weaving) - Mango 69256 314699 66615 588344 8832 Milk (Chilling/Cooling/Processing) 128 17 LLPD Meat (Chicken/Motton/Pork/Dryfish) - Animal feed (Cattle/Poultry/Fishmeal) 25 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] 321 Animal Markets [Nos] 9 Cattle - Cross bred* 927 72 478 Disease Diagnostic Centres [Nos] 1 Milk Pick up centres [Nos] 9142 Artificial Insemination Centers [Nos] 618 Fishermen Societies [Nos] 44 Buffaloes* 84 1 45 Animal Breeding Farms [Nos] 1 Fish seed farms [Nos] 7 Sheep - Cross bred 1250 Animal Husbandry Tng Centres [Nos] 1 Fish Markets [Nos] 2 Dairy Cooperative Societies [Nos] 806 Poultry hatcheries [Nos] 6 Goat 429 Improved Fodder Farms [Nos] 2 Slaughter houses [Nos] 8 Pig - Cross bred 8 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY Fish Production [MT] 2949 Per cap avail. [gm/day] 1 Egg Production [Lakh Nos] 10115 Per cap avail. [nos/p.a.] 242 Poultry - Cross bred 12601 Milk Production ['000 MT] 1010 Per cap avail. [gm/day] 639 * incl young stock Meat Production [MT] 61000 Per cap avail. [gm/day] 39 Item Nos. 1-11, 13 & 14: CPO, Chittoor, Item Nos.12 & 16- Dept. of Agr/Horti., Chittoor Item No. 15 - District Ind Centre/Dir. of Eco. & Stat., Item Nos. 17- Sources (if not mentioned 19- Dept. of AH, Chittoor . against the respective item):

DISTRICT PROFILE

A. Major economic activities and livelihood options in the district: Groundnut, Sugarcane, Mango, Tomato, Banana and Paddy are major crops grown in the district. Dairy, Sericulture, Mango production & Processing and Poultry are the predominant rural economic activities in the district. New trends emerging are the fodder cultivation and storage in silages; Integration of dairy with azolla, silage, bio-gas and vermin-composting; Sheep rearing in mango orchards, etc., Organized marketing of the perishables viz., loose milk, fruits and vegetables, both through rural/urban SHGs, minorities is a major transformation in the livelihood canvass of the district

B. Special features of the district: Chittoor district, a part of Rayalaseema region of Andhra Pradesh lies in the extreme south of the state approximately between 12°37' - 14°8' north latitudes and 78°3' - 79°55' east longitude. It is bounded on the north by Anantapur and YSR Kadapa districts, on the east by Nellore and Tiruvallur district of Tamilnadu, on the south by Vellore and Dharmapuri districts of Tamilnadu and on the west by Kolar District of Karnataka state.

The district can be divided into two natural divisions, the mountainous plateau comprising 31 mandals of Madanapalle division in the western part and on the east comprising the mandals of Puttur, Narayanavanam, Vadamalapeta, Ramachandrapuram, Karvetinagar, Vedurukuppam, S.R.,puram, Palasamudram, Nagari, Nindra, Vijayapuram, Pichatur, Nagalapuram, Satyavedu, Varadaiahpalem, B.N.Kandriga, K.V.B.Puram, Thottambedu, Srikalahasti and Yerpedu. 8 mandals viz., Chittoor, G.D.Nellore, Puthalapattu, Penumuru, Gudipala, Yadamarri, Thavanampalle and Irala, stand almost as a dividing line between the two natural divisions of the district. The Eastern Ghats are predominant in the western region and they gradually bend towards the sacred Sheshachalam hills of Tirupati, passing through Chandragiri erstwhile taluk and entering into Nellore district. The general elevation of the mountains of the district is 2,500 ft above the sea level.

C. Major food/ commercial and Plantation / horticultural crops: Groundnut, Sugarcane, Mango, Tomato, Banana and Paddy are the major food and fruit crops. In dry farming tracts of the zone, mono cropping of groundnut is the main crop whereas double cropping is practiced in the areas irrigated by tanks, wells & borewells.

D. Special/ additional features relevant to credit potential estimates: Changes in cropping pattern, fodder cultivation is being encouraged and the area under fodder cultivation is increasing gradually. Further, planting of fodder trees namely Sesbania grandiflora (Avisa) and Subabul and Azola cultivation is being supported. Progressive farmers are bringing more area under SRI cultivation which is less water intensive. Use of drum seeder for SRI is picking up in the district as there is labour scarcity. Supply of quality groundnut seed is being given priority. Support for alternate crops is given by providing seed subsidy under contingency plan prepared for the season. Other factors affecting the district rural economy are onslaught of drought each year and the rapid depletion of groundwater. As many as 42 mandals have been declared as drought affected by the State Government during Kharif 2014.

E. Important Socio-economic developments in the district: District is ranked number one in SHG bank linkage programme, Bank-JLG linkage programme and credited with transforming SHGs in to Livelihood federations under Kamadhenu programme. Select SHG members who have the willingness and capability to undertake dairy as economic have been formed in to JLGs and 14500 of them have been provided with bank credit and backward and forward linkages through MMS managed BMCs in the district. This has resulted in increasing the milk procurement from 2.5 to 3.5 lakh litres per day. Inspired from Kamadhenu, GoAP has launched Milk Mission and the Pala Pragati Kendras are pilot tested in the district, where the JLGs manage collectively owned assets as a new change in the SHG movement.

Banking Profile

District - Chittoor State - Andhra Pradesh Lead Bank - Indian Bank

1. NETWORK & OUTREACH (As on 31/03/2015) No. of Branches No. of non-formal agencies associated Per Branch Outreach Agency No. of Banks/Soc. Total Rural Semi-urban Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Households Commercial Banks 37 404 116 141 147 6 39390 8 Regional Rural Bank 1 109 81 21 7 3 26262 20 District Central Coop. Bank 1 31 16 7 8 300 63 Coop. Agr. & Rural Dev. Primary Agr. Coop. Society 76 76 76 Others 1 1 1 All Agencies 116 621 289 169 163 9 65952 5 2364 2. DEPOSITS OUTSTANDING Amount of Deposit [Rs.'000] Agency No. of accounts 41729 42094 Growth(%) Share(%) 41364 41729 42094 Growth(%) Share(%) Commercial Banks 4198224 4367173 4405896 1% 93% 1.65E+08 1.79E+08 2.21E+08 23% 90% Regional Rural Bank 854956 216899 260504 20% 5% 16009900 19347700 23265253 20% 9% Cooperative Banks 61619 74403 88834 19% 2% 1527400 1635500 1856472 14% 1% Others 2400 All Agencies 5114799 4658475 4755234 2% 1.83E+08 2E+08 2.46E+08 23% 3. LOANS & ADVANCES OUTSTANDING Amount of Loan [Rs.'000] Agency No. of accounts 41729 42094 Growth(%) Share(%) 41364 41729 42094 Growth(%) Share(%) Commercial Banks 667559 880264 824960 -6% 65% 99118200 1.17E+08 1.24E+08 7% 80% Regional Rural Bank 266356 298144 273332 -8% 22% 20297700 26136890 25346588 -3% 16% Cooperative Banks 236482 154642 171946 11% 14% 5104500 5390882 5122562 -5% 3% Others 458 1499100 182300 1097831 All Agencies 1170397 1333050 1270238 1.26E+08 1.48E+08 1.56E+08 4. CD-RATIO CD Ratio During 2014-15 Cumulative Agency Agency 31 Mar 13 31 Mar 14 31 Mar 15 Deposit Credit Deposit Credit Commercial Banks 60.86 64.76 56.78 Commercial Banks Regional Rural Bank 126.78 127.34 108.94 Regional Rural Bank Cooperative Banks 334.19 316.21 275.92 Cooperative Banks Not available Others Others All Agencies 68.92 73.67 63.37 All Agencies #VALUE! 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 [Rs.'000] Amount [Rs.'000] Amount [Rs.'000] % of Total Amount % of Total Amount % of Total % of Total Loans % of Total Loans Loans [Rs.'000] Loans [Rs.'000] Loans Commercial Banks 90658860 76 57732504 70 35373944 89 88264 100 17340549 96 Regional Rural Bank 22046400 19 21140600 26 138018 0 58164 0 Cooperative Banks 5105295 4 3581827 4 4319070 11 603910 3 Others 1097831 1 All Agencies 118908386 100 82454931 100 39831032 100 88264 100 18002623 100 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2012-13 2013-14 2014-15 Average Agency Ach'ment Target Ach'ment Ach'ment Ach[%] in Target [Rs.'000] Ach'ment [Rs. '000] Ach'ment [%] Target [Rs.'000] Ach'ment [Rs. '000] [%] [Rs.'000] [Rs. '000] [%] last 3 years Commercial Banks 24964400 21641900 86.69 29423290 33622700 114.27 32964017 27423070 83.19 95 Regional Rural Bank 7807200 13435200 172.09 10343682 15431800 149.19 17026583 17889417 105.07 142 Cooperative Banks 2230900 2185400 97.96 2908428 4630900 159.22 2815692 987241 35.06 97 Others 558200 579700 103.85 432061 85045 35 All Agencies 35560700 37842200 106.42 42675400 53685400 125.80 53238353 ####### 87.13 106 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS 2012-13 2013-14 2014-15 Average Broad Sector Ach'ment Target Ach'ment Ach'ment Ach[%] in Target [Rs.'000] Ach'ment [Rs. '000] Ach'ment [%] Target [Rs.'000] Ach'ment [Rs. '000] [%] [Rs.'000] [Rs. '000] [%] last 3 years Crop Loan 17672400 18332200 103.73 20448600 27930900 136.59 23330450 20623101 88.40 110 Term Loan (Agr) 4200700 7779500 185.20 6876000 14919100 216.97 12404674 9578176 77.21 160 Total Agri. Credit 21873100 26111700 119.38 27324600 42850000 156.82 35735124 30201277 84.51 120 Non-Farm Sector 3305700 2340400 70.80 4070900 5713500 140.35 6223292 4199893 67.49 93 Other Priority Sector 10381900 9390100 90.45 11279900 5121900 45.41 11279937 11983603 106.24 81 Total Priority Sector 35560700 37842200 106.42 42675400 53685400 125.80 53238353 46384773 87.13 106 9. RECOVERY POSITION 2012-13 2013-14 2014-15 Average Rec. Agency Demand [Rs. Recovery Recovery [%] in last 3 Demand [Rs. '000] Recovery [Rs. '000] Recovery [%] Demand [Rs. '000] Recovery [Rs. '000] Recovery [%] '000] [Rs. '000] [%] years Commercial Banks Regional Rural Bank Cooperative Banks Others All Agencies Sources : Lead Bank & SLBC 9

BANKING PROFILE

Performance of banks in Chittoor district A. Bank and Branch Network

The district has 40 Banks operating as on 31.3.2015 with 37 Commercial Banks, 01 Regional Rural Bank, District Cooperative Central Bank and Andhra Pradesh State Financial Corporation. There is a strong branch network of 545 branches with 404 Commercial bank branches with, 109 Saptagiri Grameena Bank branches, 31 Cooperative Bank branches and 01 branch pertaining to APSFC. There are 76 Primary Agricultural Cooperative Societies affiliated to Chittoor DCCB providing credit to the rural clientele.

B. Performance Parameters

Deposits: The total deposits mobilized by the Banks in the district as on 31.3.2015 were `2458,435 lakh with Commercial Bank’s share being `2207218 lakh, RRB’s share `232652 lakh and Cooperative Bank’s share being `18565 lakh. The market share of deposits of the banks in the district is shared by Commercial Banks at 89.78 %, RRBs at 9.46 % and Cooperative Banks at 0.76%. The deposits increased by 23% year-of-year.

Advances: The total advances outstanding as on 31.3.2015 were `1558141 lakh. The total advances outstanding of Commercial Banks in the district were `1242471.07 lakh followed by RRB with `253465.88 lakh and `51225.62 lakh of Cooperative Bank. The APSFC has also an amount of `10978.31 lakh outstanding as on 31.3.2015. The share of Commercial banks in advances outstanding was 79.74% with RRB following at 16.27% and 3.29% by Cooperative Bank. The total business of all the financial institutions in the district was shared by APSFC with 0.3%, Cooperative bank 1.74%, RRB 12.10% and Commercial Banks (Public Sector and Private banks) 85.89%.

Credit Deposit Ratio: The district has a CD ratio of 63.37% as on 31.3.2015 as against a national goal of 60% prescribed by the RBI. Though, the CD ratio appears to within the limits of the banking sector in the district, the CD ratio of the DCCB at 275.92% and the RRB at 108.94% appears to be very high.

The progress under PMJDY in the district is given below. (No of accounts) No of Banks PMSBY PMJJBY APY 41 361362 101699 466704

C. Agency wise performance under Annual Credit Plans for the year 2014-15: The performance of all banks target vis-à-vis achievement under Annual Action Plan for the year 2014-15 was 87.13% under Priority Sector advances.

(` lakh) Particulars Target Achievement % of Achievement 2014-15 2014-15 Agriculture 3573.52 3020.10 84.51 Of which crop loans 2333.05 2062.29 88.39 Micro & Small Enterprises 622.23 419.98 67.48 Other under Priority Sector 1127.99 1198.35 106.24 Total Priority Sector 5323.84 4638.43 87.12 Non Priority Sector 814.88 1031.22 126.55 Total Credit Plan 6138.72 5669.65 92.36

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 Infor- mation 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. • 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 Renew- able 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., Ener- gy 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. • 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.  15% land reserved (at least 40 acres for MSME industries in 2 of APIIC’s developed In- dustrial 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 Sam- stha 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.

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 production units is 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 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.  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.

CHAPTER 3

CREDIT POTENTIAL FOR AGRICULTURE- 2016-17

NABARD in the year 2012-13 had prepared Base PLP for five years coterminous with the XII Five year plan-(2012-17). The Base PLP projected 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 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 (i) Crop Production, Maintenance and Marketing

Agriculture in Chittoor district is predominantly rain fed with only 39.46% of the net sown area under irrigation, In terms of land utilization, the gross cropped area constitutes 4.17 lakh ha and net sown area is 3.72 lakh ha, recording a cropping intensity of only 112%. The district has about 0.45 lakh ha of area sown more than once. The total irrigated area with the available resources is 1.90 lakh ha of which 1.47 lakh ha is net irrigated area.

Groundnut is the most important kharif crop in the district, production and productivity of which hinges on the intensity and distribution of South West monsoon, which has become most erratic during last decade. Rainfall received during North East monsoon is very important for filling up of tanks and recharging of ground water which helps sowing of paddy mainly in Eastern parts of the district. Sugarcane is grown under irrigated conditions during Rabi season.

Major crops cultivated are groundnut, sugarcane, paddy, tomato, vegetables, pulses and other cash crops. Mango, coconut and mulberry sericulture are important horticulture crops in the district. The area sown under important crops during Kharif 2014 and Rabi 2014-15 taken together is given in table below:

Major Crops Actual Area sown (Ha) Groundnut 131408 Paddy 40965 Sugarcane 26147 Ragi 4556 Maize 2693

It may be noted from the above table that Groundnut is the main crop pf Chittoor District with Actual area sown during the year 2014-15 was 1.31 lakh ha. Variation in the rainfall pattern has impacted groundnut production in the district. The major groundnut crop also faced moisture stress mainly in different stages of crop growth like flowering stage, peg formation and pod development, resulting in poor yields.

The area, production and productivity of major crops in the district during the last three years are furnished in the following table.

Area, production and productivity of major crops in Chittoor district

2012-13 2013-14 2014-15 Crop Produ- Produ- Produ- Area Prdn Area Prodn Area Prodn ctivity ctivity ctivity (ha) (t) (ha) (t) (ha) (t) (kg/ha) (kg/ha) (kg/ha) Paddy 48171 6816 169577 49860 5981 145713 40965 7535 151170 Groundnut 151089 5410 135405 155078 3399 156220 131408 3568 104417 Sugarcane 28106 80265 2255928 28152 91039 2562930 26147 74887 1958070 Ragi 7350 2364 6870 8647 2952 11562 5108 3093 7016 Maize 1739 9303 7841 3208 8071 7681 3677 4047 10898 Redgram 7610 327 1217 7611 253 1923 6840 247 1689 Horsegram 6814 1307 4458 7555 954 3702 5071 457 2317 Sun Flower 997 1266 528 1136 1425 51 1368 1296 882 Source: Agriculture department, Chittoor.

Chittoor district is predominantly a rainfed area. It may be observed from the above table that Groundnut being a major crop in the district with an average of 1.50 lakh ha area coming under cultivation during the last three years.

The status of disbursement of crop loans during the last 4 years in Chittoor is given below: (` lakh) Year Target Achievement 2011-12 134585.00 151759.00 2012-13 176724.00 183322.00 2013-14 204486.00 279309.00 2014-15 233305.00 206229.00

The disbursement data in respect of crop loan by the banks in Chittoor during the last 4 years indicates that the achievement has been above 100%, except during the year 2014-15 which was due to various reasons.

Category wise farmers in Chittoor

Category of farmers No Area ( ha) Average ( ha) Margin Farmers (< 1ha) 455190 491382 1.08 Small farmers ( 1-2 ha) 144431 501986 3.48 Semi Medium farmers (2-4 ha) 54981 351787 6.4 Medium Farmers ( 4- 10 ha ) 11511 157438 13.68 Large farmers (> 10 ha) 1069 43841 41.01 Total 667182 1546434 2.32 Source: Handbook of Statistics Chittoor-2014, Chief Planning Officer, Chittoor

Agriculture in Chittoor district is predominantly driven by Small and Marginal farmers. The driving force behind the diversified cropping pattern noticed in the district and the farm size matrix is given in the table. The Small and Marginal Farmers in the district constitute 90% of the total farmers, holding 993,368 ha of land(64%). Whereas 10% of the remaining farmers holds 553,066 ha (36%) of land. The average holding of SF/MF is 1.66ha but the average holding of other farmers is 8.19 ha.

Interest Subvention of GOI: With a view to facilitate agricultural credit flow at concession- al rate, Government of India is offering interest subvention to various public sector banks, RRBs and Cooperatives. Interest subvention at 2% is being provided to the banks for crop

production loans up to `.3.00 lakh. Further interest incentive of 3% is provided to the farmers for prompt repayment

Pavala Vaddi: The State Government is continuing with Pavala Vaddi Scheme (at 3% interest) on crop loans from `.1.00 lakh to `.3.00 lakh. The scheme shall be applicable to those farmers who have availed crop loans from banks and is linked to prompt repayment.

Vaddi Leni Runalu: Government of Andhra Pradesh has extended “Zero Interest Scheme” on crop loans to all the farmers in the State. The farmers who access crop loans up to `1.00 lakh will have the facility of Zero Vaddi that means they need not pay the interest. The scheme is also linked to prompt repayment.

Negotiable Warehouse Receipts Scheme (NWR): In order to discourage distress sale of produce, GoI has been implementing Interest Subvention Scheme on post-harvest /marketing loans for small and marginal farmers (SF/MF) since 2011-12. Under the scheme, banks are required to provide post-harvest loans to SF/MF, having KCC, at 7% interest p.a for a period up to six months. Bank can claim 2% interest subvention from GoI for a period up to six months or date of repayment, whichever is earlier. Banks need to implement the scheme, as GoI is attaching utmost importance for strengthening and popularising the Negotiable Warehouse Receipts (NWRs) system in the country.

Revised KCC guidelines: The demand and availability of credit for crop production, maintenance and marketing are linked to the recent revision in policy guidelines in KCC, where the limits are fixed for a 5 years period, with 10% rise annually and 30% of the cost of production is provided towards maintenance of other assets and consumption/insurance and the loan period is made flexible to include 6 months for delayed marketing.

3.1.1 (ii) Assessment of credit potential for 2016-17

As per the assessment the crop production maintenance and marketing for the year 2016- 17 is estimated at `356655.44 lakh as against `306306.35 lakh estimated in base PLP. There is an upward of potential assessed for 2016-17 as compared to the potential assessed in the base PLP is the reason attributed for this increase is on account of revised KCC guidelines, marginal increase in Scales of Finance for the major crops in the district. lakh Base PLP (2016-17) Revised (2016-17) Activity Unit Phy BL Phy TFO BL Paddy ha 45000 42824.925 49860 42266.32 42266.32 Groundnut ha 120000 70077.15 155078 93118.14 93118.14 Sugar cane ha 40000 59868.38 28152 54689.76 54689.76 Sunflower ha 1500 519.09 1144 323.26 323.26 Ragi ha 2000 562.34 8647 1832.56 1832.56 Vegetables ha 22000 15226.64 1693 1195.97 1195.97 Tomato ha 18000 23359.05 13596 26412.41 26412.41 Chilli ha 1000 778.635 1751 1236.94 1236.94 Mulberry ha 2000 1730.30 0 0.00 0.00 Mango/Coconut ha 35000 30280.25 66615 51763.85 51763.85 Jowar/Fodder crops ha 6000 1816.81 0 0.00 0.00 Potato ha 1000 865.15 1297 1374.34 1374.34 Maize ha 0 0.00 3208 906.48 906.48 Bajra ha 0 0.00 1790 252.89 252.89 Pledge / marketing Loan 45000 58397.62 75335 80796.79 80796.79 Total 338500 306306.35 410012 356655.44 356655.44 *the scale of finance has been duly reckoned while estimating the credit potential for 2016-17 20

3.1.3 (iii) Availability of Infrastructure, critical gaps, interventions required and action points/issues to be addressed

The Department of Agriculture is headed by a Joint Director, assisted by DDAs, AOs, AEOs, who are providing the extension support through over 2500 Adarsha Rythus under Polam Badi or Seed Village programme. Two seed multiplication farms (Mahadevamangalam, Na- galapuram), 4 soil testing laboratories, one Farmers Training Centers, 2 KVKs, ATMA, Col- lege of Agriculture, Regional Agriculture Research Station, Tirupati, Weather Forecasting division and Price Forecasting Cell of ANGRAU, Tirupati form the core of the technology transfer mechanism in agriculture sector. Infrastructure available for input supply includes 45 agro service centers, 221 seed supply outlet (PACS, AVSKS, APSSDC) and 587 fertilizer outlets. Marketing infrastructure includes 44 notified markets, 2 Rytu Bazaars, 14 warehouses and 9 cold storages.

Dept of Agriculture and IKP are promoting organic farming through promotion of INM, IPM technology, where in vermi-composting units, vermi-hatcheries, biological input production are encouraged under subsidy programmes of Department.

Department of Agriculture may explore Seed village for local production and consumption of back up seeds in drought years and consider incentivizing units in good monsoon periods. The State Government may also introduce experimental water budgeting procedures to conserve water and check indiscriminate sinking of borewells in the district. A law may be enacted to monitor the usage of water with focus on establishment of water users association.

The State government need to focus on adoption of technology transfer initiatives with crop specific approach on lines of SRI model implemented by NABARD, so that there is a change in perception of farmers towards technology.

Contingency Crop Planning (CCP) way forward

Chittoor having witnessed drought like conditions more frequently during the last 5 years, there is an imperative need to address the issue comprehensively. The focus should be mitigating the risk on account of climate variability being caused by rising temperature, erratic rainfall, droughts etc. There is a need to plan at all levels i.e. farmers, input providers, banks, government, extension agencies, research institutions, etc. for such emergent situations. This planning process is an effort to suggest immediate course of action during a long dry spell which could lead to a total failure of the crop. The farmers should be made aware to sow alternate crop or its variety which can fetch maximum returns to the farmer with the conditions prevailing at that time. The decision on alternate crop and variety depends on its expected yield/ return and is the crux of CCP.

In order to implement CCP, necessary preparations, like arrangements for alternate crop seed and inputs, awareness among farmers, extension workers and marketing intervention to meet changed cropping pattern, etc. should be put in place in the beginning of the crop season. Further, these arrangements are required to be reviewed on regular basis till harvesting is over. A group, may be of District Consultative Committee, can be formed which would monitor the status of the calamity. This Group should be empowered to take decision to press the “Emergency Button” so that all the stakeholders take immediate action to manage the situation.

3.1.2 WATER RESOURCES 3.1.2 (i) Introduction

Chittoor district is located in the southern end of the Andhra Pradesh State occupying an extent of 15152 sq km. The rainfall received is very irregular with scanty and with long dry spells. The farmer community mainly depends upon the ground water source only. The domestic and industrial needs are also making stress on the ground water regime. The district is frequently affected by droughts. There are no perennial rivers flowing in the district but about ten small ephemeral rivers viz. Palar, Pincha, Ponnai, Arainiar, Swarnamukhi, Bahuda, Kalyani, Kusastali, Beema, Pedderu and some seasonal hill streams are flowing in the district. The total yield of these rivers is of the order of 61 TMC out of which, 58 TMC is harvested with remaining balance of 3 TMC only. There are 8 medium and minor irrigation projects and four LI projects in the district covering an ayacut of 15,310 ha and 1,387 ha, respectively. The other MI structures include 8152 minor irrigation tanks and 1.65 lakh wells with an ayacut of 2.41 lakh ha and 1.26 lakh ha, respectively.

A number of bore wells are getting dried up year by year as the ground water zones at different depths are getting exhausted and there has been no sufficient recharge to the ground water. In the Western part of the district, bore wells are being drilled even beyond 200 m and upto 300 m, as the top aquifers are getting exhausted. This is leading to rapid depletion of both ground water levels and ground water resources.

With respect to ground water utilization, out of the total 66 mandals, there are 11 in overexploited category, 5 in critical and 16 in semi critical category mandals in the district, as per latest estimates from the Ground Water Dept. Further, out of 2.34 lakh agriculture wells, nearly 0.45 lakh Dugwells and about 0.60 lakh BWs are already dried up. This is due to failure of monsoon leading to reduced recharge during recent years as well as over exploitation of Ground water

As per the area irrigated by various sources of irrigation in Chittoor district, the tube wells irrigate about 1.52 lakh ha followed by dug wells irrigation in 0.24 lakh ha. Though, there are tanks in the district utilized for irrigating 0.18 lakh ha, the canals cater to 0.09 lakh ha in the district. The Gross area irrigated in the district is 2.03 lakh ha with 0.50 lakh ha area irrigated more than once. The total net irrigated area of Chittoor district is 1.46 lakh ha.

3.1.2 (ii) Assessment of credit potential for 2016-17

Taking into consideration the availability of infrastructure and support services, the total credit potential assessed for the year 2016-17 is `14042.05 lakh as compared to `10153.12 lakh in the base PLP 2012-17. The projections have been revised considering the emerging needs and government’s thrust area on primary sector mission.

(` lakh) Base PLP (2016-17) Revised (2016-17) Activity Unit Phy BL Phy BL TFO units units Borewell+PS No 4000 3000.00 1600 2024.00 1518.00 Pumpsets No 6500 3412.50 4060 3126.20 2344.65 Dripsets ha 12000 1800.00 16400 10824.00 9200.40 Sprinklers ha 1500 140.62 2600 800.80 680.68 Water distribution ha 8000 1800.00 2260 497.20 298.32 pipelines 32000 10153.12 20920 17272.20 14042.05

3.1.2 (iii) Availability of infrastructure, critical gaps, interventions require and action points / issues to be addressed

The State Ground Water Department is the nodal agency and is headed by a Deputy Director. The State Groundwater Department (SGD) has set up 139 observation wells besides 29 observation wells set up by CGWB, to monitor the pre-monsoon and post-monsoon period water levels. Ground water levels are being monitored through a network of 59 piezometers covering 58 mandals except Ramsamudram, Gangavaram, Rompicherla, Ramachandra-puram, Nindra, Vadamalapeta, Tirupati rural and Narayanavanam mandals. 9 stream gauging stations have been set up to monitor the behavior of groundwater regime and to record the influent and effluent behavior of groundwater and streams/rivers.

Power supply for irrigation pump sets needs to be segregated and the duration of power availability be increased during critical periods of crop growth. Since the power is free, there is no incentive to farmers to change to Energy efficient pump sets, hence a way needs to be found by the State Government for replacing the old pumps with the energy efficient pumps.

Besides promoting drip/sprinkler, use of mulching can further save the loss of water. Piped distribution of water need to be promoted through awareness and building a subsidy scheme, which can save water and increase the command area.

The beneficiaries have to obtain permission from SGD to construct wells in notified areas as per the new ground water rules under AP Water Land and Tree Act (AP WALTA ACT 2002). The act is meant to promote water conservation and tree cover and also to regulate the exploitation and use of ground and surface water. Construction of artificial recharge structures such as check dams, percolation tanks, etc are necessary to increase the recharge. Farmers should be educated on the need to site wells scientifically, restriction on bore well drilling both on depth and number.

3.1.3 FARM MECHANISATION

3.1.3 (i) Introduction

Farm Mechanization leads to increased production and productivity, better utilization of irrigation potential, adoption of multiple cropping patterns, besides minimizing cost, increasing income, reducing drudgery in operations. The traditional pre-sowing mechanization (tractors/power tillers attached with tillage, sowing equipment) in vogue, mechanization is emerging in the areas of mechanized transplanting, pruning/training, laying of drip/mulches, pest & disease management, weeding, inter-cultivation and harvesting. Post- harvest machinery helps in reduction of loss during harvest and adds value thorough clean- ing, grading and packing scientifically. The need and demand for mechanization is emerging due to unavailability of affordable labor in time, due to migration and acute shortage of labour.

Mini tractors, Power Tillers, Multi Crop Threshers, Paddy Transplanters, 3 types of cultivators, Power Sprayers, Power Weeders are the major mechanization possibilities in Chittoor district. In addition, sugarcane and mango being other major crops in the district, mechanization can also focus on these two crops, besides milking machines, silage making in dairy sector.

The total tractors and trailers available in the district for the years 2012-13 and 2013-14 are given below.

2012 - 13 2013 – 14 Item On Road On Roll On Road On Roll (No.) (No.) (No.) (No.) Agriculture 19022 15162 15150 11715 Non-Agriculture 3780 3469 3660 3006 Total 22802 18631 18810 14721 Source: Statistics Hand Book

3.1.3 (ii) Assessment of credit potential for 2016-17

Mechanization in agriculture is transforming from traditional tillage (tractor) and harvesting (combined harvesters) model to comprehensive crop based mechanization in crops like sugarcane, groundnut and paddy, where service provider is undertaking package operations viz., tillage to transplanting, harvesting to bagging, etc., thus agri-operation service providers is developing as a separate segment of rural entrepreneurship. The estimated potential for the sector the year 2016-17 is `16767.86 lakh as against `21067.50 lakh assessed in Base PLP. The projections have been moderated keeping the ground level credit flow in the district as the major portion of the same is expected under group mode. (` lakh) Base PLP (2016-17) Revised (2016-17) Activity Unit Phy Phy BL TFO BL units units Tractors No. 2000 7500.00 1110 6715.50 5036.63 Horticulture Mechanisation No. 2000 2500.00 500 2475.00 1237.50 (Mini Tractors) Second Hand Tractors No. 750 1350.00 500 1650.00 990.00 Power Tillers/Biomass No. 300 225.00 120 297.00 148.50 chipping unit Seed - Fertiliser drill/PHM No. 1000 250.00 1000 715.00 357.50 Equipment Implement Service Stations No. 1200 1500.00 700 1486.10 743.05 (Power Weeders /Rotovators/ Tillage Equipment) Plant Protection & Pruning/ No. 1800 1800.00 1455 480.15 240.08 Misc equipment Groundnut Mechanisation No. 1000 3000.00 960 3960.00 1980.00 Multi crop Threshers No. 400 200.00 240 264.00 132.00 Paddy Mechanisation No. 25 312.50 14 338.80 169.40 (Combined Harvestors, Trans planter, etc.,) Custom Hiring Centres No. 0 0.00 8 1320.00 660.00 Sugarcane Sugarcane Trans planter No. 20 750.00 90 99.00 59.40 Sugarcane Nurseries No. 150 180.00 0 0.00 0.00 Fodder Mechanisation No. 2000 1500.00 1200 1227.60 613.80 Custom Hiring Centers No. 0 0.00 640 8800.00 4400.00 Groundnut Total 21067.50 8537 29828.15 16767.85

3.4.3 (iii) Availability of Infrastructure, critical gaps & interventions required and action points/issues to be addressed

The initiative taken by the Agriculture department in setting up Custom Hiring Centers (CHCs) as a package of machinery for ground nut, a major crop in the district by providing Tractor drawn Multi Crop Planter (Seed Drill) and Power operated Ground nut wet Pod thresher or dry pod thresher (power operated) are made mandatory under the scheme. The department is providing these implements through Rythu Mitra Groups (RMGs) with 05 Members in the group are required to pay the Margin upfront through Mee Seva Kendras and the remaining is being contributed by the department to the Dealer/ Company. The total subsidy being offered for these Custom Hiring Centers is 50%.

Action Points

 Banks may finance for the margin money requirement on a pilot basis to progressive farmers to enable them to adopt new technologies and improve productivity in the district.  State Government: Conducting Mechanization exhibitions, especially with new equipment and tools for crops like groundnut, sugarcane, mango, tomato where farmers can have hands on experience of the implements and feel their usage. Field demonstrations of new equipment in crop clusters for bringing familiarity before purchasing decision viz, boom sprayers, biomass chipping units, paddy transplanters, mini-tractors in horticulture would motivate farmers to adopt to these technologies.

3.1.4 PLANTATION AND HORTICULTURE INCLUDING SERICULTURE

3.1.4 (i) Introduction

Horticulture in Chittoor district is one of the major economic activity owing to its predominantly rain fed nature, suitable agro-climatic conditions and geographical proximity to two major metros namely Chennai and Bangalore. The total area under horticulture in the district is 1.33 lakh ha with Mango cultivation in 74204 ha followed by Vegetables cultivation in 48,727 ha and about 1804 ha of flowers cultivation. The production of fruits is 732,834 MT followed by Vegetables at 946,971 MT and Flowers recording at 9,327 MT. The suitable climatic conditions in Madanapalli division have promoted extensive and specialized tomato cultivation together with sericulture in the district. Taking advantage of large raw material base, local entrepreneurs have built a solid mango canning industry, which is now transforming in to aseptic processing industry with entry of corporate sector and setting up of food parks under the initiative of Agri Export Zone (AEZ) and Special Economic Zone (SEZ) schemes of Government of India. Good rail and road network and proximity to two major sea ports at Chennai and Nagapatnam and International Airports at Bangalore and Chennai offer good potential for export of fresh fruits and vegetables.

The district can be classified into two different horticultural zones, mountainous plateau in the west and plains on the eastern part of the district. The crops grown in western part are mango, tomato, grapes, coconut, brinjal, chillies, potato, etc., and banana, mango, flowers etc., and in the eastern part. About 1.32 lakh ha of cultivable area is under horticulture and area and production of major crops are given in the following table.

Area and Production of major horticulture crops in Chittoor District for 2013-14 & 2014-15

Area (Ha) Prdn (MT) Area (Ha) Prdn (MT) Crop 2013-14 2014-15 Fruits Banana 1350 31050 1550 37200 Water Melon 643 16075 2654 84928 Mango 71589 572712 74204 667836 Papaya 520 39520 741 57798 Tamarind 2154 21540 4004 40040 Vegetables Tomato 12985 233730 19727 355086 Beans 1242 7452 3242 19452 Brinjal 1594 31880 3512 70240 Bhendi(okra) 731 8772 4252 51024 Chillies (dried) 1702 5106 3000 9000 Source: Dept of Horticulture

It is evident from the above table that Mango occupies prime position in the district horticulture economy accounting for 97.5% of fruit crop area and 64% of horticulture area with `667 cr gross value addition during 2014-15. The second major horticultural crop being cultivated in the district is Tomato. Tomato is cultivated in about 19727 ha with 355086 MT being the production during 2014-15.The gross value in monetary terms is `471 cr. The agro climatic condition is the main reason attributed to this high volume of Tomato production in the district. Though, Banana is also considered to be one of the growth engines for accelerating the pace of horticultural growth contributing `471 cr to the district economy. Banana cultivation is taken up in 1550 ha with its production recorded at 37200 MTs. The category of other vegetable, fruits, flowers and cut flowers is cultivated in 40374 ha with production at 484488 MTs, contributing `542.65 cr to the district exchequer.

The temple district of the state is known for its flower cultivation with traditional flowers like rose, chrysanthemum, cross-andra, marigold and jasmine. Dhavanam is a conventionally cultivated traditional aromatic crop grown in western part of the district The Mission for Integrated Development of Horticulture (MIDH) under XII plan aims to promote holistic growth of horticulture sector by closely working with the National Mission on Sustainable Agriculture (NMSA) towards development of micro-irrigation for all horticultural crops and protected cultivation on farmer's field.

Sericulture

Sericulture being an important economic activity in Chittoor district, is carried out in an extent of 26960 acres in the district and occupies top position in terms of achievement in the State. There are about 20,550 Sericulturists covering majority in Kuppam, Palamner and Madanapalli divisions with few in Chittoor and Tirupati area. Sericulture encompasses various activities like mulberry plantation, chawki rearing, silk worm rearing, besides non- farm activities like reeling, twisting of silk yarn from raw cocoons and eventually weaving of silk saris. Further, it also provides employment and income in associated activities such as (i) grainages, chawki rearing centers, seed farms and mulberry nurseries which provide backward linkages and (ii) dyeing, weaving, garment making and marketing at different stages which provide forward linkages. Sericulture activity is basically a family enterprise in predominantly rural setting with 60% women involvement, generating employment.

The focus of Dept. of Sericulture is for strengthening of rearing houses, irrigation/micro irrigation infrastructure and solar powering of the production system, besides recycling of the bio-mass and strengthening of back ward linkages under private sector or PPP mode.

3.1.4 (ii) Assessment of Credit Potential for 2016-17

The assessment is based on three categories considered a) traditional activities funded by banking sector b) ongoing economic activities which can be intensified through credit and c) emerging investments which need bank credit. The potential for various bankable economic activities in Chittoor district for the sector during the year 2016-17 assessed at `13665.97 lakh under Horticulture as against `17356.50 lakh assessed in the base PLP. Likewise, the potential assessed under Sericulture for the FY 2016-17 is `3861.11 lakh as against `4150.50 lakh as assessed in Base PLP. Considering the ground level credit during the last five years, the projections for the sector have been moderated as a few activities have been categories under agriculture infrastructure. (` lakh) Base PLP (2016-17) Revised PLP (2016-17) Activity Unit Phy Phy BL TFO BL units units Mango ha 5000 2250.00 2000 2728.00 2182.40 UHD Mango ha 1500 1575.00 310 409.20 327.36 Rejuvenation of mango ha 500 90.00 500 181.50 145.20 orchards Guava ha 1000 375.00 500 561.00 448.80 Banana TC ha 500 656.25 200 433.40 346.72 Grapes ha 20 120.00 20 173.80 139.04 Amla/Papaya/other fruits ha 300 112.50 800 1434.40 1147.52 Orchards in pre-bearing ha 4000 750.00 3500 962.50 770.00 periods Coconut/Cocoa as intercrop ha 100 37.50 0 0.00 0.00 Loose Flowers ha 500 225.00 660 598.95 539.06 Green House cultivation of No. 250 900.00 100 1215.50 972.40 Flowers/Vegetables (units of 1000 sq m each) Vegetables on Pendals/ ha 2500 1875.00 1650 2450.25 2205.23 Trellies (Climbers/Tomato) Farm Ponds for Orchards No. 800 1920.00 0 0.00 0.00 Aromatic grasses ha 50 18.75 50 34.38 27.50 Small Fruit/ Vegetable No. 50 120.00 320 1408.00 1126.40 nurseries Pack houses/PHM No. 150 360.00 325 1430.00 1144.00 Units/Collection Centres Fruit/Vegetable Transpor- No. 400 960.00 0 0.00 0.00 tation/ Vending Units Plastic Crates No 1200 180.00 6350 1676.40 1508.76 Ripening Chambers No. 40 144.00 107 706.20 635.58 Packing credit for bearing No. 12500 4687.50 0 0.00 0.00 orchards Kiosks / Mobile agri marts ha 0 0.00 0 0.00 0.00 Sub Total 31360 17356.50 17392 16403.48 13665.96

Sericulture Mulberry plantation (new) ac 4000 840.00 4000 2717.00 1901.90 Rearing shed No. 600 1470.00 600 1815.00 1270.50 Rearing equipment No. 600 84.00 500 385.00 269.50 Commercial chawki rearing No. 20 56.00 20 132.00 92.40 centers Drip irrigation ac 1500 225.00 0 0.00 0.00 Kisan nurseries No. 50 59.50 50 93.50 65.45 Mechanisation/Solar No. 600 216.00 600 435.60 261.36 Powering Sericulture Working Capital for No. 8000 1200.00 0 0.00 0 Mulberry Rearers Sub Total 15370 4150.50 5770 5578.10 3861.11 Total PH sector 46730 21507.00 23162 21981.58 17527.07 3.1.4 (iii) Availability of Infrastructure critical gaps & interventions required and action points/ issues to be addressed

Plantation & Horticulture: The Horticulture department with improvement of productivity and additional income generation through the interventions in the district is expecting about 15000 ha of area under Mango coming to bearing stage during the year. Additional area of 6200 ha has been brought under micro irrigation for Horticulture crops during the year 2014-15 and about 21000 ha of additional area is likely to be covered during the year 2015- 16. Mango being the prime horticulture crop next to Groundnut in the district, rejuvenation and canopy management practices have been adopted for Mango in an area of 4000 ha, improving productivity of Mango. Technology Transfer and Extension Services are the next critical infrastructure for scientific horticulture. DoH has 2 Asst Directors located at Piler and Madanapalli. The ADs are supported by 8 Horticulture Officers, whose primary focus is on implementation of various programmes.

Mechanization of horticulture production system is critical for overcoming the shortage of labour in rural areas and to also to rationalize the cost of production. Small tractors with boom sprayers, rotovators, power saws, SS wires for pendals are some of the equipments needed for commercial horticulture, which may be promoted by Govt., as Agro-Service Centers with 50% subsidy.

Sericulture: The Sericulture Department encourages Bivoltine Hybrid cocoon production at field level. The department in association with the Central Silk Board under scheme of Cata- lytic Development Programme provides necessary infrastructure to the farmers. This aid in enhancement of productivity levels as the farmers are in a position to get yields upto 60-65 kgs per 100 Dfls.

There are four Government Cocoon Markets operating in the district located at Palamaner, Kuppam, Madanapalli and V Kota which account for only about 15% of the local production and the balance is being traded in the markets located in boarder areas of Karnataka. Madanapalli is the second largest cocoon market in the State after Hindupur in Anantapur district, while Palamaner and Kuppam markets stand at fifth and sixth position with regard to the volume of transactions.

Under sericulture, cluster based approach for adoption of new technologies through formu- lation of capital investment subsidy schemes like solar power to rearing units, oozy fly control, micro irrigation of mulberry plantations and chawki rearing centers can result in productivity improvement, making sericulture a sustainable economic activity, irrespective of international fluctuations in prices.

Action Points

Banks: Banks may finance Agro Service Centers or Horticulture Machines by Producers Or- ganizations / SHGs through Capital Investment Subsidies and Credit linkages. Banks may also come for forward financing of Kiosk / mobile agri-marts to individuals at a low cost model so as to mitigate distress sale of produce. The farmers need not venture too far to market as the same can be planned nearer to their habitations.

Under Sericulture, new entrepreneurs may be encouraged with financial assistance for establishment of Multiend Reeling units of 6 & 10 Basin- which are eligible for 75% subsidy. Financing for farm mechanization can be explored for Sericulture cultivators under Custom Hiring Mechanism.

3.1.5 FORESTRY AND WASTE LAND DEVELOPMENT

3.1.5 (i) Introduction Chittoor district has 4.5 lakh ha of land under forests which constitutes about 29.83% of the total geographical area, out of which about 50% of area is degraded, offering potential to forest department for development of commercial plantations viz., sandalwood, teak, Pongamia, bamboo, etc. In Chittoor district, 587.2 sq km of area comprising 38.76% of geographical area is reported to be degraded forest lands, uplands with or without scrub (Source: www.dolr.nic.in). Area development within notified forest areas, is mostly covered under Joint Forest Management projects under APFP, RIDF, etc. Under Watershed Development Projects, Government is treating non-forest wastelands and so far 2.02 lakh ha has been treated through 343 completed watersheds. Another 1.24 lakh ha is being covered under 342 ongoing watersheds and in both cases, increasing green cover through farm forestry or block plantation is envisaged, which can be credit linked.

3.1.5 (ii) Assessment of credit potential for 2016-17 Considering the agro-climatic suitability, local demand, fast growing/coppiceable species identified for credit linked farm forestry/ agro-forestry in Chittoor are Eucalyptus, Tamarind, Aonla, Prosophis, Ber, Neem, Jatropha, Subabul, Teakwood, Cassia, Bamboo, etc, Based on the trends at ground level, the potential for 2016-17 is assessed at `1985.78 lakh as against of ` 1147.50 lakh assessed in Base PLP. (` lakh) Activity Unit Base PLP (2016-17) Revised (2016-17) (No./ Physical BL Physical TFO BL Area) Units (` lakh) units Eucalyptus/Farm Ha 500 225.00 400 264.00 198.00 forestry Nurseries No 15 22.50 145 350.90 263.18 Vana Samrakshana No 200 900.00 280 2032.80 1524.60 Samithis for Livelihoods Total 715 1147.50 825 2647.70 1985.78

3.1.5 (iii) Availability of infrastructure, critical gaps interventions required and action points / issues to be addressed

The social forestry wing of the forest department, Govt of Andhra Pradesh is the extension and promotion agency for social & farm forestry in the district. A part of the district is covered under Drought Prone Area Program (DPAP) where wasteland development works are taken up on watershed basis. Availability of nurseries for supply of quality seedlings or 29 clones is a basic infrastructure required for farm/agro-forestry. Forest Dept. has sufficient nursery capacity for meeting their requirement.

Action Points Department / Government: Watershed projects have substantial resources invested for physical measures of soil and water conservation, which will be effective only when combined with bio-logical methods like bund plantations. Development of forest plantations should form an integral component in watershed management programmes so as to establish alternative source of green cover in the district.

The Department may also consider raising commercial forest plantations by Forest Corporation in waste lands under PPP model / with NREGS funding for building of forest cover.

3.1.6 ANIMAL HUSBANDRY- DAIRY 3.1.6 (i) Introduction

As per the 19th Live Stock census, the district has 9.27 lakh cattle and 0.84 lakh buffaloes. District is the home tract for Punganur breed of cattle. The details are given the table. CB cattle account for 79 % of total district cattle population and the district is first in terms of CB animals. During 2011-12, DRDA, Dept of Animal Husbandry, NABARD, banking sector collectively implemented “Kamadenu” project, where about 14500 units of 2 animal dairy were financed under DEDS scheme to the SHG members on a JLG mode, which resulted in rise in milk collection from BMCs managed by IKP from 2.4 LLPD to 4.5 LLPD. Success of the program has inspired the State Govt. to formulate Milk Mission and Pala Pragati programme. Majority of Small and Marginal farmers are largely dependent on dairy production for their livelihood.

Category 19th th Live Stock Female Breedable Census population Crossbred cattle 732022 401710 Indigenous cattle 195754 156131 Total Cattle 927776 557841 Buffaloes 84605 44979 Source: DAH, Chittoor

3.7.2 (ii) Assessment of credit potential for 2016-17

The Animal Husbandry department envisages milk production in the district to increase from present 10.10 lakh MTs to 11.48 lakh MT under the Andhra Pradesh Double Digit Growth Mission. This would be possible by having an integrated dairy projects with components embedded like milch animals, feed and fodder, biogas and vermi-composting under one roof. NABARD under UPNRM has promoted projects with integrated dairy concept in Bangarupalyam, Palamaner and Baireddypalli mandals. The idea of promoting direct liquid milk by Mandal Mahila Samakhyas a well-established chain of Cooperative Societies having fleet of BMCUs throughout the district is likely to take off during the year.

Taking into consideration the above availability of animals and the present infrastructure and support services, the PLP projections have been worked out to ` 77499.74 lakh as against 24494.00 lakh in the base PLP. Further, Dairy Sector in Chittoor has been identified as thrust area in addition to the activity identified under Area Based Scheme formulated for the year 2016-17.

(` lakh) Base PLP (2016-17) Revised (2016-17) Activity Unit Phy Phy BL TFO BL units Units CBC No. 42000 11760.00 20000 17710.00 15053.50 GMB No. 4000 1176.00 0 0.00 0.00 Mini dairy (CBC)s 25+25 200 2800.00 3200 55200.00 49680.00 Mini dairy (CBC)s 5 1440 2520.00 4000 9944.00 8949.60 Silages No. 2400 1680.00 0 0.00 0.00 Calf rearing (CBC, GMB) No. 6000 792.00 4300 804.10 723.69 Fodder cultivation Ac 4000 1080.00 1425 517.28 465.55 Support to Gopal Mitras No. 200 150.00 150 136.18 108.90 Bulk milk coolers 2000 lt 100 900.00 0 0.00 0 Private vety.clinics No. 24 36.00 5 9.08 7.26 Cattle feed plant No. 10 17.50 0 0.00 0 Milk Processing units 10 kl 12 720.00 40 2904.00 2323.20 Chaff cutters No. 1500 135.00 1000 99.00 79.20 Milking equipment Clean Milk No. 250 187.50 150 135.30 108.24 Equipment Milk Retailing Milk Parlours No. 240 540.00 0 0.00 0 Total 24494.00 34270 87458.88 77499.14

The potential previously assessed under Bulk Milk Coolers (BMCUs), Cattle feed Plants and Milk parlors has since been mentioned under Agriculture Infrastructure- Other chapter.

3.7.3 (iii) Availability of Infrastructure, critical gaps, interventions required and action plan and issues to be addressed

The milk production in the district is 10.10 lakh MT (10.5% of state milk production, 3rd position among districts) for the year 2014-15 and cows accounted for nearly 91% of the district milk production. CB cows alone accounted for 78% of total district milk production. The average yield based on animals in milk is 5.977 kgs/ day as against state average of 5.133 kg/day.

The per capita availability of milk is estimated to be 639 gm, which is higher than State average. District has a network of 35 milk chilling units both under public and private sector, apart from procurement by the un-organized sector. Out of the total milk production (27 lakh litres), 14-15 lakh litres is being collected every day by Government dairies as well as Private dairies in the district.

DRDA has established 94 Bulk Milk Coolers with a capacity of 3.5 lakh lt per day. The units are managed by Mandal Samakyas and have an agreement with Balaji and Vijaya Dairy for supply of chilled milk. There are 15 Veterinary Hospitals, 135 Veterinary Dispensaries and 171 Rural Livestock Units (RLUs) functioning in the district besides 2 mobile clinics and one Veterinary Poly Clinic (VPC). The number of AI centres are 306 with AH Dept. in addition to 297 Gopal Mitras and 15 other centres are operating in the field for taking care of AI activity. Based on the norm of one AI centre for 1000 breedable animals, the district requires 603 AI centres against existing 618 centres which is satisfactory.

Further, Introduction of direct marketing of liquid milk through SHGs/MMS can be scaled up from the existing collection points. This will empower the cooperative structure in the district which may inculcate entrepreneurial acumen amongst women folk. The demand for quality dairy products is on the rise and so is the production in the district. Therefore, in order to increase the competitiveness of dairy industry, efforts should be made to reduce cost of production. Increasing productivity of animals, better health care and breeding facilities and

31 management of dairy animals can help reduction of cost of milk production. The Government and dairy industry can play a vital role in this direction. The next step would be imperative that Department should develop proper production, processing and marketing infrastructure, which is capable of meeting international quality requirements.

Setting up of milk chilling unit under IKP system, around which other dairy farmers in the catchment area could be integrated. Considering the huge success of interest free loans on prompt repayment under SHG, crop loan, and similar incentive for promoting livelihoods under JLG mode may help graduating the SHGs to livelihoods.

The calf rearing activity is also an important activity to be promoted in the district to meet demand for animals without having to venture into neighboring States. This rearing activity is likely to mitigate huge transportation costs being incurred by the farmers currently. Further, the quality of the animal is assured as the animals are under supervision of robust Veterinary services in the district. Action points

Shortage of Feed and Fodder: While the livestock population is increasing, the gap between the requirement and availability of feed and fodder is increasing primarily due to decreasing area under fodder cultivation and reduced availability of crop residues as fodder. The shortage of fodder increases during summer months due to drought like conditions prevailing in the district. Further, there is continuous shrinkage of common property resources leading to over grazing in the existing grasslands. It is imperative to arrange sufficient good quality feed and fodder for efficient utilization of genetic potential of the various livestock species and for sustainable improvement in productivity. The Chittoor district administration has put in place effective shortage mitigating procedures by procuring fodder from the eastern mandals of the district and supplying to the mandals located in the west facing acute shortage.

Inadequate Infrastructure for Marketing, Processing and Value Addition

The livestock sector is well equipped with various Government and Private Dairies in the district. The robust milk production in the district has attracted not only local Dairies but also few from the neighboring States. These Dairies procure milk from the farmers and process the same. However, with addition of new animals in the district, there is a need to equip ourselves with processing infrastructure so as to enable the primary producers get remunerative prices most of the times. The dairy cooperatives may modernize the existing infrastructure to handle marketable surplus of milk and other livestock products which would not only reduce post-production losses and wastages but yield better price realization to the farmers.

3.1.7 ANIMAL HUSBANDRY- POULTRY

3.1.7 (i) Introduction

Chittoor district has favorable climate, raw materials, access to major markets for development of poultry industry. As per Livestock census, 2012, the poultry population was 126.00 lakh (7.8 % of total state poultry population). The commercial layers and broilers were 48.45 lakh and 64.58 lakh, respectively. During the year 2013-14 the total chicken meat production in the district was 0.396 lakh MTs (60% of total meat production in the district). The meat production in the district assumes greater significance which ranks next to Dairy activity. Poultry farming can provide subsidiary income and gainful employment round the year, either through layer or broiler farming. Layer farming is viable for only large units of above 30000 birds, while smaller 32 units can be viable, more so under contract farming for broiler production. In the recent past, many breeding units (under contract) have also come up in Palamaner, Kuppam, Punganur and Madanapalli areas, considering the climate for better hatching egg production. Major integrators like Suguna, Shanthi, VHPL etc., have large breeding units in this belt, which have shown the way for enterprising farmers to associate with these integrators. The egg production in the district is estimated at 10115 lakh numbers for the year 2014-15. (7.7% of total state egg production).

3.1.7 (ii) Assessment of credit potential for 2016-17

The demand for credit is for expansion of existing layer units as well as setting up of breeding infrastructure. Taking into consideration the availability of infrastructure and support services, the PLP projections for 2016-17 are `7058.04 lakh as against `10271.25 lakh assessed in the Base PLP. The potential assessed for the year 2016-17 has been moderated in comparison to the potential assessed in the base PLP, keeping in view the ground level credit flow during the previous years. (` lakh) Base PLP (2016-17) Base PLP (2016-17) Phy Activity Unit Phy Phy BL Units units units Commercial broiler No. 1080000 1539.00 630000 2182.95 1746.36 Commercial layer No. 720000 2538.00 683000 3756.50 3005.20 Backyard Poultry No. 4500 168.75 7500 412.50 330.00 Poultry Integrators Credit/ No. 2160000 648.00 1200000 726.00 580.80 WC of poultry units Chicken meat outlet with No. 300 562.50 260 786.50 629.20 processing facility Feed Godown & feed mill 0.5 t/hr 15 135.00 15 297.00 237.60 Parent Breeding farms No. 450000 2025.00 375000 330.00 264.00 (contract) Emu Farms 50 pairs 90 2025.00 0.00 0.00 0.00 Solar powering/Poultry No. 900 630.00 301 331.10 264.88 mechanization Sub Total 10271.25 8822.55 7058.04

3.1.7 (iii) Availability of Infrastructure, critical gaps & interventions required and action plan/issues to be addressed

Hatcheries, feed mills, AH services are the major infrastructure needed in poultry sector. There are 3 layer hatcheries and 6 broiler hatcheries supplying day old chicks in the district and to neighboring states. The capacity of the broiler hatcheries is in excess of 12-15 lakh DOC per week and that of layer hatcheries is 5 lakh DOCs per month in the district. The veterinary infrastructure details have been covered under dairy sector.

Further, critical interventions required under poultry sector are Capital investment subsidy for technology up gradation/capacity expansion/setting up of feed mills for existing poultry units and encouragement for financing poultry integrators and promotion of backyard poultry in selected clusters.

Action Points

Banking Plans are required to focus on timely credit availability to contract farming farmers (broilers, parent birds). As a part of the Poultry scheme, the promoters may be encouraged to go in for installation of Solar Power structures for these new Poultry units which enables significant reduction on power reducing the cost of rearing the birds for commercial purpose.

The department of Animal Husbandry may promote back yard poultry as economic activity among SHG Members. Suitable banking models for financing of poultry integrators may be explored.

3.1.8 ANIMAL HUSBANDRY- SHEEP, GOAT, PIGGERY, ETC.

3.1.8 (i) Introduction

The agro-climatic conditions, prevailing grazing lands, predominant traditional shepherds community (Kurubas and Yadavs) are conducive for developing sheep and goat activities. Sheep, Goat and Piggery activities are basically traditional activities, carried on to generate supplementary income, besides providing protein rich food to the growing population. The present per capita availability of meat is about 14.10 kg per annum (39 gm per day), which is more than the recommended consumption of 11 kg per annum (30 gm per day).

The population of sheep, goat and pigs as per the livestock census (2012) is 12.49 lakh, 4.29 lakh and 0.093 lakh, respectively. The population of pigs has decreased over the years as the demand for this activity is coming down. Nellore breed of sheep is mostly reared in the district. The meat production in the district is estimated at 61000 MT (11.6% of state meat production) for the year 2014-15. Sheep and goats account for 26% of meat production in the district.

3.1.8 (ii) Assessment of credit potential for 2016-17 The potential for credit under sheep, goat and piggery sector during 2016-17 is assessed at 13191.37 lakh as against ` 5414.22 lakh assessed in Base PLP. The potential assessed for the year 2016-17 has been revised upwards in comparison to the potential assessed in the base PLP, as a major portion of the credit to the sector is availed by the SHG Members as an income generating activity under group mode. (` lakh) Base PLP (2016-17) Revised (2016-17) Activity Unit Phy Phy BL TFO BL units units Sheep/Goat rearing 20+1 8000 4760 9800 12936.00 11642.40 Silages No. 500 175 0 0.00 0.00 Pig breeding 3+1 12 6.72 13 11.15 7.81 Ram lamb rearing 20 1000 350 3000 2105.40 1473.78 Meat Marketing shop No. 100 122.50 50 96.25 67.38 Total 9612 5414.22 12863 15148.80 13191.36

3.1.8 (iii) Availability of Infrastructure, critical gaps, interventions required and action points / issues to be addressed

Non availability of good stock, poor quality feed resources, inadequate grazing land, disease prevalence and unorganized marketing are the major constraints for development of this activity in the district. To overcome these, there is a need to revive the breeding units at Government Farms and encourage nucleus breeding units by private individuals.

Although stall feeding of sheep is practiced only to a limited extent, promoting silages, fodder trees, in sheep rearing clusters will increase the unit size and profitability of sheep rearing. There are 8 recognised slaughter houses in the district. Further, the critical interventions required under the sector are making fodder available at the village level would be a force multiplier in development of this sector.

Action points  The Department of Animal Husbandry may promote on a large scale commercial Ram rearing and lamb fattening units through bank credit. The units may be as small as 04 animals at the cost of `.4000/- per animal which are about 03-04 months. These Rams and Lambs may be reared up to 6-7 months and sold in the market for a sum of `.7000 per animal. These low cost income generating activities may be encouraged by the department and in consultation with the District Rural Development Agency for beneficiary identification.  The Department of Animal Husbandry may also associate in formation and strengthening of Sheep Rearer’s Association for introduction of new production systems and upgrading quality animals. The LDM Office may also propagate small bankable units of Sheep farming for JLG / SHG Members. The Department of Animal Husbandry provide vaccination, de-worming to the sheep JLGs which have been financed through banks in the district. The surrounding areas of Piler, Madanapalle and Kuppam areas are potential areas for propagation of the above schemes. 3.1.9 FISHERIES 3.1.9 (i) Introduction The Chittoor district consists of 66 Mandals with a geographical area of 15152 square KMs. There are about 684 departmental tanks and 8 Reservoirs with water spread area of 37900.02 Ha in the district for disposal of fishery rights by the Fisheries Department, besides 7374 Gram Panchayat tanks with water spread area of 39111.62 Ha under the control of District Panchayat Officer of Chittoor District.

The fishermen population in the district is about 17,750. Though, the fisherman population may not be significant in terms of numbers compared to the district population, the department has envisaged different activities for these fisherman. The Chittoor district has no perennial rivers but has 10 small ephemeral rivers viz, Ponnai, Kusasthali, Beema, Pedderu, Pincha, Palar, Arani, Swarnamukhi, Bahuda and Kalyani which have water flow during rainy season only. These rivers feed 8 reservoirs, 684 departmental tanks and 6711 Minor irrigation tanks under the control of Gram Panchayats.

Though there are 8 Fish Seed Farms under the administrative control of Assistant Director of Fisheries in Chittoor District, only 7 are operational with 1 Fish seed farm being defunct. The Fisheries Development Officers / Assistant Inspector of Fisheries, Palamner are in-charge of these fish seed farms. The district has 8065 tanks/ reservoirs with an extent of 77011.64 Ha in all the 66 Mandals. As there are no perennial rivers flowing across in the district, all the water sources are rain fed and irrigation dependent on monsoon every year. The district has 44 fishermen Cooperative Societies with a total membership of 2619. Likewise, there are 13 fisherwomen Cooperative Societies with 327 members. In addition to these societies, there are 15 MMG groups with a membership of 150.

The inland fish production in Chittoor is given in table below:

Year Production(Tons) GVA ( ` lakh) 2012-13 2298.00 901.70 2013-14 2948.50 2088.21 2014-15 4124.50 2706.00

3.1.9 (ii) Assessment of credit potential for 2016-17

The Fisheries Department has focus on JLGs among the fishing community with input subsidization from Dept. The members under this livelihood activity are entitled to a subsidy 35 of 90% to 100% for various interventions of the department. The PLP projections for 2016- 17 under fisheries sector is `225.14 lakh as against `195.75 assessed in the Base PLP. The potential assessed for the year 2016-17 has been revised upwards in comparison to the potential assessed in the base PLP, keeping in view the “Double Digit Growth” envisaged by the State Government. (` lakh) Base PLP (2016-17) Revised (2016-17) Activity Unit Phy Phy BL TFO BL units units Fish Ponds Ha 70 105.00 60 181.50 108.90 Fish Seed Farms/Stunned No. 20 12.00 40 48.40 29.04 Seed Farms Working capital for fish ha 750 78.75 755 124.58 87.20 farming in tanks Total 195.75 855 354.48 225.14

3.1.9 (iii) Availability of Infrastructure, critical gaps, interventions required and action points / issues to be addressed

In Chittoor District there are 8 fish seed farms (Major Carp and Common Carp) under Fisheries department and one under private sector having a capacity to supply about 69.80 lakh fingerlings as against the requirement of 422.25 lakh in a year, leaving a gap of 352.45 lakh fingerlings. This gap is filled in by procurement from other districts of the State and few from private traders.

The Department of Fisheries headed by an Assistant Director of Fisheries is mainly into rearing of MC and CC production for stocking into the water bodies. The department also deals with leasing of departmental tanks together with implementation of welfare & development schemes to the fishermen Cooperative Societies.

The department initiated steps in stocking of advance fingerlings size fish seed (80 to 100 mm) in all water bodies. The department is likely to introduce cage culture in all the district reservoirs. Under the “Double Digit Growth”, the department would introduce new varieties of Tilapia culture, Freshwater scampi poly culture in addition to the present major carps and common carps. The department is also to assist the fishermen in De-silting and de-weeding in all the MI tanks.

Action Points

Banks: Banks may consider extension of working capital needs of fish seed farms and fishing gear to the fishermen community identified by the Fisheries department. Department: Identification of entrepreneurs willing to take up ornamental fish culture which would yield high returns to the fishermen.

3.1.10 OTHERS – BULLOCK, BULLOCK-CARTS, ETC 3.1.10 (i) Introduction

In the present scenario Animal drawn carts, especially bullock carts, are the oldest mode of transportation, existing in India. The Animal drawn carts are still visible in rural parts of the district. The fact is that despite modern implements and wide variety of transportation modes evolved over a period of time, bullock carts co-exist as the most important mode of transportation in few parts of rural district. There is an imperative need to improve the

36 technology of the carts as more than 80% bullock carts are of conventional type. Only a few numbers of carts have been partially converted to metallic (technically which may not qualify as ‘improved’).

The Improved bullock carts will be durable (more than 25 years), which provide better economy to the farmers or poor people for whom the bullock carts are meant for livelihood. Further, scientifically produced sources of energy (fossil fuel) which are depleting, use of animal energy should be encouraged as much as possible. The bullock carts are sustainable mode of communication where road connectivity is poor and time is not a limiting factor. These carts will help to transport agricultural produce to the nearby mandis / storage godowns and are environment friendly. The other advantage would be reduction in deforestation as the improved carts will use steel as the main material. The bullock carts made of steel are very rigid. The design and configuration is very simple, and can be manufactured by rural fabricators easily. The weight of the carts is less as compared to the conventional carts. A 2.0 Tonne capacity cart would weigh 280 kgs and a 0.5 Tonne capacity will weigh about 210 Kgs. The maintenance of these carts is minimal.

3.1.10 (ii) Assessment of credit potential for 2016-17 As no disbursements were reported under 'Bullocks & Carts' during the past several years, bankers are also not encouraging financing of these carts. As per the assessment of credit potential for 2016-17 under Others, the total works out to ` 2944.66 lakh.

(` lakh) Base PLP (2016-17) Revised (2016-17) Activity Unit Phy Phy BL TFO BL Units units Bullock Pairs No. -- -- 40 15.84 14.26 Bullock carts (1 + 1) No. -- -- 8000 3256.00 2930.40 Total 8040 3271.84 2944.66

3.1.10 (iii) Availability of Infrastructure Critical gaps, interventions required and action points /issues to be addressed

Banks may consider financing of these activities where the road connectivity remains a major hindrance for transportation of agriculture produce to local mandis.

Action Points : Banks may finance low cost Bullock carts in remote villages for transportation of agriculture produce from villages /farms to markets at the Mandal level.

3.2 AGRICULTURE INFRASTRUCTURE

3.2.1 Construction of Storage facilities 3.2.1 (i) Introduction

Agricultural produce requires scientific storage and handling to minimize post-harvest losses and to maintain nutritional quality for the consumer. The farmers also need efficient marketing arrangements for realizing fair and remunerative prices. Therefore, it is essential to develop the right type of product-specific marketing and storage facilities at various locations which are accessible to farmers and primary processors.

Horticulture has emerged in the last decade as the focal commercial sector among all agricultural activities in the district. The district has been successful in producing Mango and Tomato in the district and is continuously searching avenues for processing and protecting what is grown. It may be noted that production is lost due to poor post-harvest handling and

storage facilities. The rough estimates run as high as 30 per cent. Therefore, it is very important to recognize the need and importance of cold storages and Rural Godowns which serve as a vital link between the production and consumption of fruits and vegetables.

Availability of the scientific storage and stock holding capacity with farmers can help getting better prices for their produce. After introduction of commodity trading, standardization of produce has become a prerequisite, which requires huge infrastructure investments, both in private and public sector.

Proper infrastructure at AMCs for efficient grading, weighing and market intermediation along with transparent price discovery is critical for fair trade practices and the Govt. initiatives of ticker boards and capital investment subsidy scheme for up gradation /expansion of existing AMC markets is towards that end. Proper storage and market infrastructure is critical for functioning of the spot markets, in addition to online commodity markets permitted recently by GoAP, which provide direct access to farmers to the entire trading community in the country. This is expected to provide better price discovery.

Although APMC Act has been amended in AP to permit private participation in market infrastructure, it has so far effected licensing to some corporate sector for procurement across jurisdiction of many AMCS, while the contract farming and direct marketing reforms are yet to become a reality. Cold storage infrastructure is restricted to few clusters like Madanapalli and Punganur Regions for tamarind and Mango concentrate. The existing facilities are yet to be utilized for perishables like fruits & vegetables for lack of multi-chamber small storages.

3.2.1 (ii) Assessment of credit potential for 2016-17

The policy level initiatives in Market development will trigger private participation in the Storage and marketing infrastructure. The revision in the capital investment subsidy amount and the eligible capacities under Rural Godowns and Cold Storage schemes, agri marketing infrastructure schemes, implemented through NABARD would encourage private participation.

PLP projections under construction of storage facilities in Chittoor for the year 2016-17 are estimated to be `3761.12 lakh as against `4475.00 lakh estimated for 2016-17 in Base PLP. The potential for the year 2016-17 has been moderated in comparison to the potential assessed in the base PLP, keeping in view the ground level credit flow during the previous years. ( ` lakh) Base PLP (2016-17) Revised (2016-17) Unit Activity Phy Phy BL TFO BL units units Multipurpose cold storages No. 15 2250.00 12 2640.00 2112.00 Kiosks/Mobile agri No. 100 100.00 70 169.40 135.52 marts/Distribution networks Standardisation/ Grading Units No. 75 375.00 25 302.50 242.00 Rural Godowns -1000MT No. 75 1500.00 40 1452.00 1161.60 Mini Market yards/Rytu bazars No. 50 250.00 25 137.50 110.00 Total 315 4475.00 172 4701.40 3761.12

3.11.3 (iii) Availability of Infrastructure, critical gaps, interventions required and action points / issues to be addressed.

There are 19 Agricultural Marketing Committees with 44 notified markets in the district, dealing in agricultural produce. Out of 44 notified markets, 25 markets are having Market Yards. Of this, 16 market yards are functioning seasonally. The Tomato and Mango trade is centralized in 16 market yards. Apart from the notified markets, 2 Rythu Bazaars are functioning, one at Chittoor and the other at Tirupati. Around 150-180 farmers are utilizing these Rythu bazaars and average arrivals / sale of vegetables in these bazaars is estimated at 240 quintals per day.

Chittoor district is identified under Agri-Export Zone for mango and vegetables. Presently, a food park is in Kuppam with necessary infrastructure like good roads for connectivity and cold storages. On the basis of potential available, another Food Park namely Srini Foods with integrated facilities for ripening, processing, aseptic packing, IQF, tetra packing has become operational at Mogili area. Presently there are 12 cold storages in Punganur and Madanapalli with a storage capacity of 30000 MT. Cold storages store Tamarind and fruit pulp and also potato, at times.

The Department of Agriculture Marketing is headed by an Asst Director with the necessary complement of supporting staff. PACS are potential institutions which can be roped in for creating storage and marketing infrastructure in the district. Awareness on the importance of accreditation of Godowns above 1000 MT capacity under WRDA needs to be created, so that it enables functioning of warehouse receipt scheme for improving the holding capacity of the farmers, for which 6 months additional time is provide under KCC without interest subvention.

3.2.2 LAND DEVELOPMENT, SOIL CONSERVATION AND WATERSHED DEVELOPMENT

3.2.2 (i) Introduction

Land development comprises all the activities undertaken by farmers to improve productivity of land, to prevent erosion and to improve land quality. Land development encompasses land leveling, on-farm development works, reclamation, soil improvement, water management, fodder development, soil & water conservation and watershed development. Restoration of soil health through soil organic matter management, selection of appropriate crops and crop rotations, rain water harvesting, watershed development and construction of small water reservoirs need greater attention which can improve soil moisture regime and recharge ground water.

Total geographical area of the district is 15.152 lakh ha, of which, fallow lands occupy 2.71 lakh ha representing 17.89% of the total area. The fallow lands are concentrated in Penumur, Nindra, Nimmanapalle, B.Kothakota, Kurabalakota, Thamabalapalle, Peddamanyam, Gurramkonda, Kalakada, Rompicherla, Gudipala and Sodam mandals. Dept of Land Resources, GoI, has estimated that 38.76% geographical area of the district is classified under Waste lands, comprising mainly of uplands with or without scrubs (2.23 lakh ha) & underutilized / degraded notified forest land (3.429 lakh ha). Of these wastelands, an extent of 4.775 lakh ha is treatable area in the District of which 2.02 lakh ha has been treated (under 343 completed watersheds) and another 1.24 lakh ha is being covered under 342 ongoing watersheds.

Various programs are being implemented by the line departments as indicated below:

Comprehensive Land Development Program (CLDP): A project named Indira JalaPrabha to irrigate land with prime focus on SC/ST and other assigned lands is taken up for 39 development under MGNREGS. Various works taken up under CLDP with NABARD funds include land development works requiring use of machinery such as bush clearance, land leveling, boulder removal, drilling of borewells, installation of motors and energization in addition to other SMC works approved under MGNREGS. It is being implemented in the district in the name of ‘Indira Prabha’. NABARD had supported to the extent of 2817 lakh under RIDF IX, X , XIII & XV covering 12338 ha. DWMA had tied up with other programs like APMIP, NHM, NREGS etc., so that comprehensive development takes place. In developed CLDP blocks, there is a scope for credit linking for livelihoods like dairy, sheep, farm ponds, organic inputs, so that benefits of public investment could be reaped by land owners.

Land Leveling and On Farm Development Works: Scope exists for taking up On-Farm Development (OFD) works in the ayacut of 2 medium and 6 minor Irrigation Projects and 7735 MI tanks in the district. Under 4 major irrigation projects (Jalayagnam), new ayacut to the extent of 3.76 lakh ha is being developed. Land leveling works are also undertaken by farmers as part of soil and water conservation measure.

Watershed Development: NABARD is directly implementing 31 grant based watershed projects in the western part of the district through NGOs, covering an area of 30,927 ha. District Water Management Agency (DWMA) is implementing 314 watershed projects under DPAP, Hariyali & IWDP, covering 4.38 lakh ha. The Department of Soil Conservation has implemented 12 NWDPRA watersheds covering an area of 5812 ha during the X plan period. DWAMA is implementing 27 mega watersheds in the district. Some of the developed watersheds offer scope for bank credit for crop diversification and other livelihood activities.

Integrated Farming System: These is ever increasing requirements for food and fodder as there is a mismatch between production and consumption of food grains / agriculture commodities primarily due to disproportionate growth in human population. Further, there is a decline in total factor productivity, resource use efficiency resulting in reduced farm household income. In the current scenario of shrinking agricultural resource base viz. land, water and labor and miniaturization of operational holdings there is an imperative need for development a validated region specific Integrated Farming System model for enhanced productivity, profitability and sustainability. In the IFS model there is an attempt made to optimize individual components in the regional perspective. Therefore, the main objective of IFS approach is to enhance the efficiency of resources, to increase subsidiary source of income with main aim to increase food supply. The by-product of this approach results in saving of fertilizer nutrients through recycling of farm and animal wastes. This model also generates regular employment and income of farmers and restores soil fertility and conservation of environment.

3.2.2 (ii) Assessment of credit potential for 2016-17: Easy availability of machines, shortage of irrigation water are the demand drivers under Land and water management sector, increasing the demand for credit under the sector, most importantly under financially viable activities like farm ponds, land levelling, tank silt application, organic farming, will trigger credit in the district. PLP projections for 2016-17 under Land development sector is assessed as ` 11299.43 lakh as against `8450.25 lakh estimated in Base PLP. The projections for the year 2016-17 have been revised in comparison to the potential assessed in the base PLP, keeping in view the emerging needs under the sector. The details of which are given below: (` lakh) Base PLP (2016-17) Revised (2016-17) Activity Unit Phy Phy BL TFO BL units units Watershed / CLDP/Land ha 12000 1680.00 16425 6775.31 4742.72 reclamation

Land Levelling & OFD works ha 8000 3080.00 7000 1955.80 1369.06 NADEP composting No. 2000 182.00 4000 572.00 400.40 Vermi composting/Hatchery No. 4000 2240.00 0 0.00 0.00 Tank Silt Application & Soil ha 1750 551.25 1200 237.60 166.32 enrichments Farm Ponds No. 2000 600.00 840 1034.88 620.93 Agri clinics- E sagu No. 19 117.00 0 0.00 0.00 FPOs No. -- -- 16 800.00 800.00 Integrated Farming System (IFS) No. -- -- 400 4000.00 3200.00 Total 29769 8450.25 29881 15375.59 11299.43

3.2.2 (iii) Availability of Infrastructure, critical gaps, interventions required and action points / issues to be addressed

Availability of earth moving equipments, pond silt, organic inputs, soil testing laboratories and engineering expertise for implementation of watershed approach for soil and water conservation are the critical infrastructure required for the sector. With various road and canal works being implemented in the district, earth moving equipments are easily available and farmers are engaging them by taking on hire basis for land levelling.

Financing of mini JCBs as rural mechanization equipment for facilitating their easy availability in rural areas for Watershed works and LD works under bank credit. Promoting bio-mass chipping machines for easy recycling of agri-biomass, especially in sugarcane farms, for which a capital investment subsidy may be considered. Organic input production is a low capital, low cost technologies, whose popularity hinges on local production and distribution through Farmer Clubs, MACS, as it is not attractive for distribution through dealers network.

Action points

Banks: Banks may finance mini JCBs as rural mechanization equipment for facilitating their easy availability in rural areas for Watershed works and LD works under bank credit. Further, Banks may incorporate Comprehensive Land Development Programme in their banking plans.

Department: The department may promote organic input production units by SHGs/JLGs/FCs so that they are readily available for adoption.

3.2.3 OTHERS 3.2.3 (i) Introduction

Agriculture in Chittoor district is predominantly rain fed with only 38% of the net sown area is under irrigation. Groundnut is the most important kharif crop in the district, whose production and productivity hinges on the intensity and distribution of SW monsoon, which has become erratic during the last decade.

The total land area held by Small and Marginal farmers is about 60% and the remaining is held by medium and large farmers. Water being a scarce commodity in Chittoor district, technologies which saves on water is critical for productivity improvement. The need of the hour directs to improvements in technology so that productivity could be improved and sustained to meet the ever growing needs of the population. Though, there have been specific

41 interventions in the field of agriculture with reference to improved technologies viz. SRI Method of cultivation in Paddy and also Direct Drum Seeding which have been demonstrated to yield better productivity. NABARD has financed RASS-KVK, Chinnagottigallu, for transfer of Direct Drum Seed Technology in Paddy and other productivity improvement techniques under Lead Crop Program.

Bio-pesticides / Bio-Fertilizers: The Department of Agriculture & Cooperation, Government of India (GoI) through National Centre of Organic Farming (NCOF) in collaboration with NABARD has been implementing a Capital Investment Subsidy Scheme for Commercial Production Units of Organic Inputs under National Project on Organic Farming. Individuals, Group of farmers/Growers, Proprietary, and Partnership firms, Co-operatives, Fertilizer industry, Companies, Corporations, NGOs are eligible to avail the benefits under the scheme. The quantum of subsidy under the scheme is 25% of total financial outlay subject to the maximum of `40 lakh per unit, whichever is less for Bio fertilizer / Bio Pesticide scheme. Under the Scheme, the promoter/ owner’s contribution is 25-33% depending on the category of the farmer. The subsidy from Government of India is released to a maximum ceiling of 25% with Bank loan ranging between 42-50%. The eligible financing institutes could be Commercial Banks, Regional Rural Banks and other institutions which are eligible for refinance from NABARD. Commercial Production of Vermi composting: Vermicomposting scheme which is Bankable and viable if commercial production of vermicomposting is undertaken by the farmer. Vermicomposting is basically a managed process of worms digesting organic matter to transform the material into a beneficial soil amendment. Good quality compost production in ambient temperature can be accomplished in shorter time by the process of vermi composting that involves use of proper species of earthworms. The earthworms being voracious eaters consume the biodegradable matter and give out a part of the matter as excreta or vermi-castings. The vermi-casting containing nutrients are rich manure for the plants. Vermi compost, apart from supplying nutrients and growth enhancing hormones to plants, improves the soil structure leading to increase in water and nutrient holding capacities of soil. Fruits, flowers and vegetables and other plant products grown using vermi compost are reported to have better keeping quality. A growing number of individuals and institutions are taking interest in the production of vermi compost utilising earthworm activity. As the operational cost of production of this compost works out to less than `.2.0/Kg., it is quite profitable to sell the compost even at `.4.00 to `.4.50/Kg.

3.2.3 (ii) Assessment of credit potential for 2016-17

The dairy activity is also pre-dominant in Chittoor district taken up by a large number of farmers as an income generating activity. The locally available cow dung can be utilised by the farmers for Vermi Composting activity. The PLP projections for 2016-17 under others viz. Bio-pesticides / fertilizers and vermi composting are assessed as `5488.29 lakh. The details of which are given below: (` lakh) Unit Base PLP (2016-17) Revised (2016-17) Activity Phy Fin Phy TFO Fin Bio Pesticides / Bio No. 40 7040.00 3520.00 Fertilizer production Vermi composting/ No. 80 1505.68 1129.26 Hatchery (200TPA) Bulk Milk Coolers (BMCUs) No. 40 440.00 396.00 Cattle fee Mixing plants No. 40 84.70 76.23 Milk Parlours No. 150 407.55 366.80 Total 350 9477.93 5488.29

3.2.3 (iii) Availability of Infrastructure, critical gaps, interventions required and action points / issues to be addressed

The availability of subject matter specialist to guide the entrepreneurs in setting up of the commercial unit remains a challenge. Further, the prohibitive initial cost is acting as deterrent for taking up the production of Bio-fertiliser / Bio-pesticides.

The worms feed on any biodegradable matter and vermi composting units are ideally suited for locations / units with generation of considerable quantities of organic wastes. Of about 350 species of earth worms in India with various food and burrowing habits, Eisenia fetida, Eudrilus eugeniae and Perionyx excavatus are some of the species that are reared to convert organic wastes into manure. Availability of these worms for the unit remains a challenge together with marketability

Action points Banks: Banks may finance taking into the financial viability, technical feasibility and availability of forward linkages. Department: The agriculture department may promote concept of organic farming in the district and RMGs can act as knowledge dispensing agencies. 3.3 ANCILLARY ACTIVITIES 3.3.1 Food and Agro-Processing 3.3.1 (i) Introduction

Chittoor is endowed with climate suitable for Mango and Tomato with area of cultivation being 68377 Ha and 30295 ha respectively. The production of these two major crops in the district has 6.15 lakh MTs and 6.06 lakh MTs with Mango fruit processing cluster being the largest in the country with 61 small scale Fruit Canning units and 15 Medium & Large Scale industries employing IQF, Aseptic Packing technologies. A mega food park with horticulture as focal point at Mogili has become operational with facilities like ripening, aseptic line, IQF, tetra packing.

Milk processing is another major food processing sector in the district with 36 Milk processing and milk products manufacturing units and, supported by a chain of over 100 BMCs under SHG sector. Major Fruits and Vegetables in Chittoor Dist Crop Area ( in Ha) Production (MTs) Mango 68377 615393 Tomato 30295 605897 Onion 10767 193806 Brinjal 4107 82140 Bhendi 6253 93801

Production of Milk and Meat in Chittoor

Product Production (MTs) Milk 948000 Meat 65120

Initiatives of Government of India: MoFPI, GoI and State Industrial Policy have laid special emphasis on growth of Agro based Food Processing industry. One integrated mega Food Park for processing fruits and vegetables spread over 142 acres with a total investment of `.125 crore was set up at Mogili village in Chittoor district with following infrastructure:

Central Processing Centre Capacity Aseptic Multi fruit processing line 10 T/Hr IQF 2 T/Hr Tetrapack 200 ml slim line & 1 ltr Pre Cooling Chambers (3) 5 MT each Ripening Chambers (11) 200 MT each Banana Ripening Chambers (4) 20 MT each Freezer Room 1000 MT Dry Warehouse 1,00,000 SFT Cold Storage (6) 100 MT each CA Cold Storage 5000 MT

Thrust Areas: The following thrust areas are identified by NABARD for development in Agro- Processing in the district. The Chittoor fruit processing cluster under the aegis of Chittoor district Fruit Processers federation has 67 functional units under its jurisdiction with a turnover of `.12500.00 lakh domestic market and `.33000.00 lakh being from Export marketing. These clusters have created employment for 20000. However, the clusters are unable to maximize their production due to various issues like inadequate product quality and standards being offered to these processing industries and limited facilities for testing and research in the district also are a major impediment for growth of these clusters. The fruit processing clusters are facing constraints due to poor linkages with developmental institutions and also due to weak linkages between farmers and the processing industries. The clusters are also facing high handling losses to an extent of 15% of the produce and have post-harvest losses of 20%.

Components identified for processing and Export in Chittoor district:

Total processing & Export Total gross value addition Crop Name Component during 2014-15 (tonnes) during 2014-15 (` cr) Processing 153000 765.00 Mango Exports 1006 4.75 Tomato Processing 39000 156.00 Other Vegetables Exports 203 2.5 928.25

The above components under processing and exports in respect of Mango, Tomato and Other Vegetables during the year has added value to the tune of `928.25 cr during the year 2014-15. However, the horticultural crops identified as growth engines under “Double Digit Growth” envisaged by the State Government and the District Administration would enable the district to have a Gross value estimated at `1240.29 cr during the year 2015-16. These sectors other than gross addition in financial terms also acts as employment generator under this sector with large number of Small and Marginal farmers are now inclined to take up Horticulture as an full time profession in the district. This demand may eventually result into more number of agro-processing industries coming up in the district would have a spiraling effect.

The milk processing plants are mostly in the private sector as these processing plants have supply from neighboring States due to topographical advantage. The Village organizations (federation of SHGs) have started Bulk Milk chilling units in the district with an average capacity of 3000 lit per day/per unit. As on date 102 such chilling plants are functional with a procurement rate at 3.5lakh liters per day. The other dairies in the private sector have the capacity of about 13.46 lakh litres per day but are able to procure only 7.38 lakh lit. The potential gap of 6.08 lakh lit per day can be filled up by encouraging dairy farmers for setting up of new dairy units.

Chittoor is abundant in tomato production with an area of 30295 ha being covered. At present about 600 MTs is being processed in the Fruit Processing industries within the existing capacity. Scope for tomato processing units for making Tomato sauce, ketchup etc can be encouraged.

3.3.1 (ii) Assessment of credit potential for 2016-17: The potential estimated under Food and Agro Processing in the district for the year 2016-17 is estimated to be ` 27418.60 lakh as against ` 32815.00 lakh assessed in the base PLP. The potential assessed for the year 2016-17 has been moderated as compared to the potential assessed in the base PLP keeping in view the ground level credit flow of the district. (` lakh) Base PLP (2016-17) Revised (2016-17) Unit Activity Phy Phy TFO BL TFO BL units units Milk Chilling Units No. 40 4000.00 2400.00 32 3872.00 2323.20 Traditional Milk No. 5 10.00 7.00 110 266.20 186.34 Product Mfg Units Tamarind/MFP No. 40 80.00 48.00 25 60.50 36.30 processing Value addition to No. 60 600.00 360.00 26 314.60 188.76 waste from Food Processing Sector Working Capital to No. 250 50000.00 30000.00 170 41140.00 24684.00 Food Processing Sector Total 395 54690 32815.00 363 45653.30 27418.60

3.3.1 (iii) Availability of infrastructure, critical gaps, interventions required and action points / issues to be addressed

As all industries in the economic scenario, there are certain constraints which the processing industry is facing. There is low capacity utilization in the existing due to lack of availability of raw materials all year around. Further, processing centres are situated around cities and towns which entail transportation of raw material from distant centres resulting in higher transportation costs added to the above, lack of storage infrastructure and cold chain marketing facility for both fresh and processed commodities are resulting in huge post- harvest losses. The huge transaction costs between various levels of producers to the processors resulting higher cost of production and marketing activities and low margins for the processors.

3.3.2 OTHERS

3.3.2 (i) Introduction

This chapter covers ancillary activities like loans to Cooperative Societies of farmers for disposing of their produce, Agri-clinic/Agri-Business Centres, Loans to PACS/FSS/LAMPS, Loans to MFIs for on-lending to agriculture, etc. Considering that price realization by farmers for most food crops like paddy, plantation crops, cashew, vegetables, host of forest produce etc., which are predominantly grown in the district are subject to market fluctuations, there is a need to take care of the post-harvest needs of farmers especially in marketing the surplus. Promotion of Farmers’ producers’ organizations both by NABARD and Govt. of AP is a positive step in this direction and this would also provide enhanced credit flow to the members of these organizations. The loans under this category would be to those institutions

45 who are typically farmers’ producers’ societies and other PACS for providing loans against agri produce. The Agri-Clinic/Agri-Business Centres have an important role in not only providing advisory services to farmers, but also in supplying of necessary farm inputs. MFIs, one of the important last-mile financial service providers, have been able to bridge the gap between the formal banking institutions and the needy farmers and other sections of the society.

Farmers’ Producers Organisations: NABARD has been extending support to producers’ organizations adopting a flexible approach to meet the credit and other supporting needs of the Producers. FPO works for the benefit of the members and share portion of profits among the members. Realizing the importance of collectivization and role of FPOs in enhancing the producer’s income through collective action, Govt of India in the Union Budget 2014-15 announced creation of “PRODUCE” fund of `.200 crore in NABARD to be utilized for the building and promotion of FPOs in the next two years. This initiative would go a long way in addressing the initial requirements of the emerging FPOs which, in turn, would provide new business opportunities for financing institutions, by extending credit support to FPOs. In order to further boost the flow of bank credit to FPOs, RBI has included lending to FPO by commercial banks and RRBs under Priority Sector. In Chittoor district NABARD has sanctioned a proposal for promotion an FPO to Origo Commodities in Kuppam Area. The FPO promoting agency has formed 10 Farmers Interest Groups (FIGs) with about 50 farmers per FIG. These FIGs are federated to form a Farmers Producers Organisation. There are varying credit needs of the Farmers Producers Organisation as the activities taken up these FPOs are aggregation of the produce and better price realization for the farmers. The requirement may range from `.25-50 lakh per FPO depending upon the scale of business. Small Farmers Agri-Business Consortium (SFABC), a society promoted by Government of India has been playing a catalytic role in promotion of FPOs and the services offered by them include credit guarantee, grant assistance for certain activities, etc. Agri Clinics and Agri Business Centres: A centrally sponsored credit-linked subsidy scheme to encourage agricultural graduates and diploma holders to start Agri Clinics and Agri Business Centres (ACABC) is under implementation. The district has potential for Soil and input testing service centers, farm machinery hiring services, e-trading, agri. Extension etc., under the scheme MFIs: There are a few Mutually Aided Cooperative Thrift Societies (MACTS) operating in the district and taking up thrift and credit activities, including extending credit for agricultural and allied activities. The Watershed projects which are coming to an end have been advised to register themselves as MACS and the Livelihood Component in the watershed project is transferred to MACTS as Capital contribution. However, the success of these MACTS largely depends upon the Membership. The MACTS are required to have minimum members to be viable in the scale of operations to which it intends to operate. These MACTS once stabilized are required to raise finances from organized sources to fund its member requirements. The Members both landless and also the farmers owning land may contribute thrift on a regular basis to enlarge its own sources of funds and gradually reduce dependence on the other financial institutions.

3.3.2 (ii) Assessment of credit potential for 2016-17

The potential was not estimated under base PLP for the above components except for ACABC, which was covered under ‘Land Development’ in the earlier PLPs. Consequent to the revision in Priority Sector guidelines by the RBI, the activity is now being reported under “Ancillary Activities”. Taking into account the information and also the informal discussions with the

46 stakeholders of the above activities, a credit potential of `1220.00 lakh is estimated as against `117.00 lakh in the Base PLP.

The sub-sector wise loan projections estimated for the year 2016-17 are given below: (` lakh) Base PLP 2016-17 Revised PLP 2016-17 Activity Unit Phy Fin Bank Phy Fin Bank units outlay Loan units outlay Loan Loans To Coop. Societies Nos. 20 600.00 600.00 of Farmers/FPO Agri-Clinics And Agri Nos. 19 195.00 117.00 12 120.00 120.00 Business Centres Loans to mfis for On- Nos. - - - 10 500.00 500.00 Lending to agriculture Total 19 195.00 117.00 22 1220.00 1220.00

3.3.2 (iii) Availability of infrastructure, critical gaps, Interventions required and action points/issues to be addressed

 NABARD has sanctioned PACS as Multi Cooperative Service (MSCs) a credit limit of `837.00 lakh. The potential for the year 2016-17 has been fixed marginally higher as the number of PACS credit requirement may go up due to increase in lending activities.  Though, there is direct relation to the amount of business the PACS are able to garner under the PACS as MSC scheme, indirectly, the members may approach banks for their additional credit requirement.  FPOs proposed to be promoted by NABARD and State Government Departments in the ensuing years banks may actively engage with these societies and extend both term loans and working capital loans for taking up the activities by the FPOs.  The banks need to sensitize their branch managers to encourage agricultural graduates in setting up of agri clinics and agri business centres for providing last mile services to the farmers.  Banks may also provide financial services to reputed and established MFIs selectively with a condition that the borrowers are not subjected to high and prohibitive interest rate structure.

CHAPTER 4

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

4.1 Introduction

As per the Micro, Small and Medium Enterprises Development Act (MSMED Act 2006), cate- gorization of Micro, Small and Medium Enterprises is based on the investment in Plant & machinery and the limits vary among production and services sector, as under:

(` lakh) Sector/Enterprise Investment in Plant and Machinery Manufacturing /Production of goods Micro <25 Small > 25 but < 500 Medium > 500 but < 1000 Services Micro <10 Small > 10 but < 200 Medium > 200 but < 500

RBI has restructured the Priority sector guidelines, whereby advances to Micro and Small Enterprise sector (MSE) are reckoned in computing the priority sector target of 40% of ANBC or credit equivalent amount of Off Balance Sheet Exposure.

In addition, banks have been advised to lend with a positive bias to smaller units under MSE segment with i) 40% of total advances to micro and small enterprises sector should go to Micro (manufacturing) enterprises having investment in plant and machinery up to `5 lakh and micro (service) enterprises having investment in equipment up to `2 lakh; (ii) 20% of total advances to micro and small enterprises sector should go to Micro (manufacturing) enterprises with investment in plant and machinery above `5 lakh and up to `25 lakh, and micro (service) enterprises with investment in equipment above `2 lakh and up to `10 lakh.

Reserve Bank of India has revised Priority Sector guidelines and lending to Medium enterprises has also been brought under the priority sector. A separate sub-limit of 7.5% of Aggregate Net Bank Credit (ANBC) has been created for lending to Micro Enterprises under Priority Sector to be achieved in a phased manner by March 2017. In addition, banks have been advised to lend with a positive bias to smaller units under MSE segment with i) 40% of total advances to micro and small enterprises sector should go to Micro (manufacturing) enterprises having investment in plant and machinery up to `5 lakh and micro (service) enterprises having investment in equipment up to `2 lakh; (ii) 20% of total advances to micro and small enterprises sector should go to Micro (manufacturing) enterprises with investment in plant and machinery above `5 lakh and up to `25 lakh, and micro (service) enterprises with investment in equipment above `2 lakh and up to `10 lakh.

Micro Units Development and Refinance Agency limited (MUDRA) was launched on 8 April 2015 to extend finance and credit support to Microfinance Institutions (MFI) and agencies that lend money to small businesses, retailers, self-help groups and individuals. MUDRA Bank has launched three loan instruments: o Shishu: covers loans upto ` 50,000/- o Kishor: covers loans above ` 50,000/- and upto ` 5 lakh o Tarun: covers loans above ` 5 lakh and upto ` 10 lakh

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

Details of existing Micro & Small Enterprises and Artisan Units in the District

According to the Industries Dept, Govt of AP, Chittoor has 16562 Small Scale / Tiny industries with an investment of `.304.98 crores and providing employment to 75151 persons. Food industries seem to be the dominating industrial group in the district, having a share of nearly 30% in the total number of units, 34% of total employment and 19% of investment. The rich agro resources in the district provide ample opportunities for food processing industry. The second major industrial category is textile based industry, comprising of small power looms, yarn twisting and dyeing, handlooms, and readymade garments industry.

The structural composition of the MSE sector, in percentage terms, is as given below

Category % of number % of total % of total of units investment Employment Agriculture based 29.79 18.93 34.17 Forest based 8.14 3.38 4.65 Textile based 18.45 23.44 16.26 Mineral 4.44 19.23 4.65 Engineering 12.53 15.14 12.47 Chemical 4.00 4.06 7.24 Leather 7.00 7.11 7.24 Others 15.62 8.68 16.34 Source: MSME

4.4 Importance of MSE sector in the district economy

MSE sector (Rural Non-Farm sector) in rural areas comprises of enterprises and artisan activities in household, decentralized, tiny and small scale industry sector involved in production/manufacturing, processing, preserving, storing and marketing of goods and /or engaged in services and agro-processing having a bearing on providing employment and income to persons residing in Rural Areas. MSE sector for the purpose of promotion/development can be categorized as raw material based, demand based, skill based, export oriented, rural artisans and emerging sector of the economy.

Chittoor has agriculture raw material base, industrial infrastructure, existing entrepreneurial base and geographical advantage for sourcing raw materials from three states and market opportunities offered by two major metros for promoting food processing industries and supporting ancillary /agro-processing industry in the district. Rural Tourism, Micro Enterprises by SHGs, Rural Housing are other sectors under MSE, who have potential for investments and employment generation in the district, with ancilliarization potential.

Housing and Construction: Construction of low cost rural housing is the need of the hour which would require availability of skilled local labour. The unemployed rural youth can be trained in various construction related activities like masonry, carpentry, house wiring etc., through National Academy of Construction (NAC) to meet the requirements of the construction industries both within and outside the state. Skilled development initiatives in other fields like nursing, automobile driving, home and corporate security etc., will create additional employment opportunities in the rural and semi urban areas.

4.2 Assessment of potential for the year 2016-17

The total handlooms in the district are 4541 including the looms outside cooperative fold. Out of the total hand looms, around 20% are estimated to be need working capital. Accordingly, the working capital requirement has been estimated approximately for 1000 units. Handloom weavers groups are being formed in the district by the department of Handlooms & Textiles. Around 290 groups have been formed till date and 25 groups have been given credit linkage by the banks.

PLP projections under MSME sector for 2016-17 are estimated to be 141529.20 lakh as against 95004.00 lakh assessed in Base PLP. The potential assessed for the year 2016-17 has been revised upwards as compared to the potential assessed in the base PLP keeping in view the emergent needs and growth of sunrise sectors under MSME.

( ` lakh) Base PLP (2016-17) Revised (2016-17) Activity Unit Phy Fin Phy TFO Fin units Units Processing of Agl Commodities No. 20 144.00 160 2288.00 1830.40 (Rice /Dal/Oil Mills) Primary processing at Village No. 45 135.00 340 2057.00 1645.60 level Horticulture Processing No. 30 2700.00 135 26730.00 21384.00 Power /hand loom No. 600 225.00 500 550.00 440.00 Micro Enterprises No. 7500 8437.50 5300 11660.00 9328.00 Village industry No. 3000 2250.00 4000 4840.00 3872.00 Rural artisans No. 3000 1125.00 3000 1815.00 1452.00 Silk reeling No. 300 562.50 300 907.50 726.00 Small Scale Sector (other than FP) No. 1000 15000.00 4000 968.00 774.40 MSME- Investment Credit No. 17735 51815.50 41452.40 WC for handlooms No. 1500 562.50 1200 660.00 528.00 WC for SSI No. 3000 45000.00 4000 96800.00 77440.00 WC for retail trade/ Business, No. 5000 18750.00 4100 27306.00 21844.80 SRTO etc WC for HWGs No. 300 112.50 300 330.00 264.00 MSME- Working Capital 9600 125096.00 100076.80 Total MSME 25295 95004.00 27335 176911.50 141529.20

4.3 Availability of Infrastructure, critical gaps, Interventions required and action points / issues to be addressed

The District Industries Center is catering to the needs of entrepreneurs, guiding, motivating and providing training facilities. The Industries Center is headed by a General Manager and assisted by limited number of staff. DIC has established Industrial Estates at Tirupati, Madanapalli, Gajulamandyam, Chittoor, Palamaner, Kuppam and Sri Kalahasthi. In these industrial estates, there are 1329 plots for setting up industries. So far, 1293 plots are allotted for setting up of industries.

For direct participation of horticulture farmers in the food processing sector and adoption of technology for meeting international standards and most importantly utilize the GoI subsidized Mega Food park, investment on promoting Horticulture Producers’ Organization with good equity base, is critical. Credit linking the POs for enabling utilization of processing infrastructure, require an incentive package viz., waiver of excise/import duty on packing material, subsidization of farmers organizations on processing, so that both food processing industry and farmers get the intended benefits of large mega food parks.

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% commiserating 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 Sugar- cane 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 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 2014-15 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 developed over 300 industrial parks (including SEZs) spread over an extent of about 121,655 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

3.2 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 exporters 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. The credit potential is assessed at ` 40128.00 lakh for the year 2016-17.

(` Lakh) Base PLP (2016-17) PLP (2016-17) Activity Unit Phy. Fin. Phy. Bk. Loan Fin. Outlay Bank Loan Units Outlay Units Pre Shipment / No. 80 3960.00 3168.00 Packing Credit New activity included under Post Shipment No. Priority Sector 80 2200.00 1760.00 EoU No 80 44000.00 35200.00 Total 240 50160.00 40128.00

3.3 Availability of Infrastructure, critical gaps, interventions required and action points/issues to be addressed

The mega Food Park located at Mogili village of Chittoor district is one of India's largest integrated food parks. The Food Park provides end-to-end solutions to food processing industries with backward and forward linkages. Mega Food Park is first of its kind in India providing state-of-the-art food processing infrastructure designed as per global standards and veritable market place with common facilities on the lines of a software park or a textile park. Mega Food Park supported by the government (the Ministry of Food Processing Industries and the Andhra Pradesh Infrastructure Investment Corporation) benefits all components of the value chain.

The Food Park is equipped with technologies like pulp dumping, blending section with recipe management, Homogenizer and de-aerator. The Food Park has host of other export oriented units being set up by the entrepreneurs. Once operationalized to its full capacity, the largest beneficiaries would be Mango and Vegetable farmers in the district with assured forward linkage.

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.

 For export of agricultural products factors such as domestic as well as an international demand and supply situation, price competitiveness, quality concerns, sanitary & phyto-sanitary requirements and relevant rules & regulations of the importing countries need to be duly considered. 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.

CHAPTER 6

CREDIT POTENTIAL FOR EDUCATION - 2016-17

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 (lakh)

Population Particulars Literacy% Rural Urban Total All India 8330.88 3771.06 12101.93 74.0 New Andhra 347.76 146.10 493.86 67.4 (population > 6 years being 297.72 lakh) District 29.41 12.29 41.70 71.53

Of the total 49373 habitations in Andhra Pradesh, 2117 habitations are without Primary schools (4.3%) and 2485 habitations are without Upper Primary Schools (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 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 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 Chittoor 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 a/cs Amt Amt Amt a/cs a/cs Public Sector Banks 2304 103.11 1110 35.05 1194 68.06 Private Sector Banks 52 2.65 21 0.68 31 1.97 RRBs 160 4.00 65 1.72 95 2.28 Coops 0 0 0 0 0 0 Total 2516 109.76 1196 37.45 1320 72.31 (Source: SLBC, AP)

6.2 Assessment of Potential for the year 2016-17

As per the latest data available in respect of higher / professional educational colleges in the district, there are 130 educational institutions with an enrolment at 58952 students. There are about 116 private unaided professional colleges with 40220 students pursuing engineering curriculum. The District literacy rate being 71.53%, the potential for the district is assessed at `.14080.00 lakh for the year 2016-17 as per the table given below: (` lakh) Potential as per Potential for 2016-17 2016-17 (Base PLP) Activities No. of No. of A/Cs Amt TFO Amount A/Cs 1000 16500.00 13200.00 Technical Courses Not assessed in Base PLP 200 1100.00 880.00 Management / MCA 1200 17600 14080.00 Total

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

The district has about 63 Engineering colleges with 04 under Government and the remaining 59 colleges under Private Management. Further, there are about 23 Colleges offering MBA courses and 10 colleges offering MCA courses with all the colleges come under Private Management. Though, the students come through entrance examination, the fee structure vary from college to college with varied requirement.

CHAPTER 7

CREDIT POTENTIAL FOR HOUSING-2016-17

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.

Flow of Ground Level Credit in Chittoor – 2014-15 (` Cr)

Total Outstanding Disbursements Year No. of A/Cs Amt No. of A/Cs Amt 2011-12 25466 532.83 1408 54.06 2012-13 25724 807.94 1535 102.26 2013-14 20941 1018.45 3603 159.75 2014-15 30294 1183.56 3589 178.47 (Source: SLBC, AP)

7.2 Assessment of Credit Potential for 2016-17

Owning a dwelling unit is a basic requirement of every household, however, there is a huge mismatch between demand and supply in housing sector. Availability and access to institutional credit at affordable rate is one of the reasons for this mismatch. Rating agency CRISIL predicts the collective portfolio of all lenders (NBFCs, HFCs and banks) to housing sector to double to 5 lakh crore by March 2019. The growth of housing portfolio of NBFCs and HFCs is faster than the Comm Banks. The growth is significant in loans up to `30.00 lakh. This category accounts for 75% of total home loans. The credit potential for the year 2016-17 is estimated at ` 30800.00 lakh. The potential assessed for the year 2016-17 has been moderated as compared to the base PLP, keeping in view the ground level credit flow.

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. Phy. Fin. Bank Bank Loan Units Outlay Units Outlay Loan Housing loans (including No. 12500 62500.00 46875.00 1000 38500.00 30800.00 purchase of plots for housing purpose) Total 12500 62500.00 46875.00 1000 38500.00 30800.00

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

As per Census 2011, out of the total 10.4 lakh Households in Chittoor, 7.37 lakh of households in rural and 3.03 lakh in urban area dwell in either semi-permanent or total temporary houses.

The critical gaps, interventions required and issues to be addressed in the sector are:  Due to rapid urbanization in the district, the cost of land is on a tangential growth coupled with spiraling construction costs, and inadequate availability and reach of micro-finance measures have impacted 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.

CHAPTER 8 CREDIT POTENTIAL FOR RENEWABLE ENERGY -2016-17

8.1 Introduction

Energy consumption per head is a proxy/index for the state of development of a nation or region. The energy source continuum starts with non-renewable sources like wood, coal, diesel, natural gas or nuclear power, which graduates to renewable/green alternatives like bio-mass, bio-fuels, wind, solar, tidal, etc. This transition to renewable/alternatives becomes financially viable, once the natural resources are priced at market values, price of environmental impact is factored in to economy and the technology gets stabilized and scales of economies starts working on cost of technology adoption.

In rural areas of the Chittoor district, the biogas as viable and functional source of fuel is now gaining acceptance under UPNRM saturation model. NEDCAP is pioneering in promoting renewable energy sources in addition to energy saving devises for the existing power utilities. Among various renewable sources, solar energy has gained importance due to stabilization of technology, falling prices due to scales of economies achieved and off grid applications promoted in the country. Solar PV has found wide application in rural areas for various important activities besides rural home lighting.

National Project on Biogas Development: Basing on the studies conducted and on the success of the plants already installed in AP there is huge demand/potential for the establishment of Biogas Plants. Out of conceivable and alternative renewable energy sources, biogas plant has been given significant importance. NABARD under its UPNRM Channel Partners have promoted installation of bio gas units with subsidy support from NEDCAP

Solar Off grids: Under Jawaharlal Nehru Solar Mission, MNRE, Govt of India New Delhi is promoting off- grid Solar power plants of smaller size capacities under project mode for individual/ Community/ Institutional/ Industries. Various capacities of off- grid solar Photovolta- ic power plants up to a maximum of 100 KWp per site to meet/ supplement the power/ electricity for different applications are being provided capital subsidy by MNRE at 30% of project cost/installation. NABARD is implementing the scheme with 40% subsidy upto 300 WP and 30% subsidy upto Kw. For Institutions /Industrial/ Commercial estates upto100 KWp 30% of the project cost.

Capital Subsidy cum Refinance Scheme for Installation of Solar Off-grid & Decentralised Applications under Jawaharlal Nehru National Solar Mission.

The Scheme started from 01 November 2010 in order to meet the energy needs under of Agriculture under water pumping, The Scheme of Ministry of New and Renewable Energy, Gol for installation of 10,000 solar photovoltaic water pumping systems for irrigation purpose, being implemented through National Bank for Agriculture and Rural development (NABARD) was launched on 01.04.2014.

8.2 Assessment of credit potential for 2016-17 Assessment of the potential for various bankable renewable sources of energy investment in Chittoor district during 2016-17 works out to ` 1520.88 lakh as against ` 4532.50 lakh estimated during 2016-17, base PLP. The potential assessed for the year 2016-17 has been moderated in comparison to the base PLP keeping in view the ground level credit flow in the district.

(` lakh) Base PLP (2016-17) Revised (2016-17) Activity Unit Phy Phy BL TFO BL units units Bio -gas No. 2000 160.00 1500 330.00 165.00 Solar Lighting for Rural Livelihoods No. 2500 62.50 900 54.45 27.23 Biogas+ equipment No. 300 60.00 100 48.40 24.20 Solar Water heaters No. 500 125.00 100 60.50 30.25 Solar Home Lighting Systems No. 5000 2250.00 400 330.00 165.00 Solar Pumping Systems No. 1500 3000.00 380 1839.20 919.60 On-grid roof top solar PV system-3 – No. -- -- 200 316.00 189.60 10 kw Total 11800 4532.50 3580 2978.55 1520.88

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

General Lack of awareness among banks and public about the relevance of alternative energy sources has become a major impediment in implementation of the scheme. There are no trainings being imparted not any sensitization & awareness creation on bio gas, solar, bio mass based energy systems resulting in non-off take of credit under the said schemes. There- fore, there is an imperative need to organise several awareness programmes and conduct exhibition cum sales in respect of various alternative sources of energy devices including photovoltaic systems. The dealer and service network at village/mandal level needs to be strengthened in order to extend various services to rural people/farmers. The delay in release of subsidy is also hampering the progress under the scheme. The Bankers are hesitant to finance solar PV systems. The net metering concept has not received due recognition due to lack of publicity and low unit charges being paid by State Government. As there is a growing demand for alternate sources of energy, banks may finance approved products. Government offices/schools/colleges should be encouraged to go for solar lighting and solar water heating system. Mass campaigning and exhibition on alternative sources of energy has to be undertaken jointly by NABARD/NEDCAP. The line departments has an important role to play in facilitating grounding of more units by organising workshops for bankers and other government departments. State government should encourage establishment of PV cell manufacturing units in the by extending tax con- cessions. State Government may provide additional subsidy for water pumping devices under Solar.

There is huge demand from farmers for solar fencing and solar street lighting from Village panchayats. A suitable additional subsidy/incentive may be introduced by State Government for these activities. Detailed mapping of various potentials available in the district under the renewable energy sector need to be carried out on site specific basis by NEDCAP and the same should be given wide publicity even at the district level.

There is an imperative need from the bankers to respond to the demand for setting up of On-grid PV systems in the district. Considering that a domestic consumer requires about 3kw of power systems with a system to supply to the grid during day time and draw the required power during night time. Similarly, the small scale industries / ancillaries with an average of `9/- per unit is incurred would require a 10kw PV systems. The cost for setting up these systems is `80/- per watt with `80000/- per KW.

CHAPTER 9 CREDIT POTENTIAL FOR OTHERS

9.1 Introduction

This chapter covers assessment of credit potential for others widely covering activities like Loans to individuals and their SHGs/ JLGs, Loans to distressed persons to pre-pay non- institutional lenders (other than farmers), Pradhan Mantri Jan Dhan Yojana (PMJDY) and Loans to State sponsored organisations for SC/ST. District is ranked number one in SHG bank linkage program, Bank –JLG linkage program and credited with transforming SHGs in to Livelihood federations under Kamadhenu programme. Select SHG members willing and has capability to undertake dairy as economic activity have been formed into JLGs and provided bank credit together with backward and forward linkages through Mandal Mahila Samakhyas which are managing BMCs in the district. This has resulted in increase in milk production from a modest 2.5 lakh liters per day to 3.5 lakh liters per day. The district DRDA has been forefront in providing the linkages to these JLGs.

Loans to individuals and their SHGs / JLGs: Andhra Pradesh being a pioneer in SHG movement in the country, the success is replicated in Chittoor district. The SHG Members primary occupation being Agriculture labour followed by Agriculture. Landless and Marginal farmers are equally represented in the SHG groups. Due to homogeneity in the groups and also awareness the groups are able to graduate from basic savings to taking up entrepreneurial activities in the district. The tremendous success is visible in Kamadhenu project and Pala Pragathi Kendralu. Therefore, there is a huge dependency on banks for either savings or availing credit for financial needs of the groups and group members. Loans to distressed persons to prepay non-institutional lenders (other than farmers) the objective of the scheme is to provide credit to the indebted farmers to repay loans taken from non-institutional lenders ie. Private money lenders. The relief measures are intended to cover existing non farmer borrowers by assessment of separate limit for repayment of non- institutional debt as per the eligibility criteria. Pradhan Mantri Jan Dhan Yojana (PMJDY): Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner. The initial step involves opening of bank account in any bank branch or through Business Correspondent (Bank Mitr) outlet. The PMJDY accounts are being opened with Zero balance. However, if the account-holder wishes to get cheque book, he/she will have to fulfil minimum balance criteria. However, there are various benefits under the scheme viz. Interest on deposit (if account holder maintains deposit), accidental Insurance cover of `1.00 lakh and life Insurance cover of `30,000. The account holder will be able to transfer money across India. The beneficiaries will be able to get Direct Benefit Transfer in these accounts. The Banks, after satisfactory operation of the accounts for 6 months, an overdraft facility for `5000 will be permitted. The account holders will also be able to get access to pension and Insurance products. The OD facility will be available in only one account per household, preferably lady of the household. Loans to State sponsored organisations for SC/ST: Special emphasis has been given to the welfare of the scheduled castes and scheduled tribes by initiating certain measures like stepping up their advances to SCs/STs. A certain certain weightage is being given to scheduled castes/ scheduled tribes in the planning process. The credit planning is weighted in favour of scheduled castes/scheduled tribes and special bankable schemes formulated to suit members of these communities. A larger flow of credit is envisaged to these communities with theme being generating self-employment. The District Level Consultative Committees 60

formed under the Lead Bank Scheme continue to co-ordinate between banks and development agencies. As most of the schemes are credit linked banks periodically review their lending procedures and policies to see that loans are sanctioned in time, are adequate and production-oriented and that they generate incremental income to make them self- liquidating. 9.2 Assessment of credit potential for 2016-17

No potential was estimated under base PLP for the above activities. Taking into account the information and also the informal discussions with the stakeholders of the above activities, a credit potential of `117910.00 lakh is estimated.

The sub-sector wise loan projections estimated for the year 2016-17 are given below: (` lakh) Base PLP 2016-17 Revised PLP 2016-17 Activity Unit Phy Fin Bank Phy Fin outlay Bank Loan units outlay Loan units Loans to individuals and No. Not assessed in Base PLP 32000 112000.00 112000.00 their SHGs / JLGs Loans to distressed No. 1000 1200.00 1200.00 persons to prepay non institutional lenders (other than farmers) PMJDY No. 48000 2400.00 2400.00 Loans to state sponsored No. 3500 3850.00 2310.00 organisations for SC/ST Total 84500 119450.00 117910.00 * Out of total loans to SHGs assessed in Informal Credit Delivery System under Chapter 11 is `255394.60 lakh for the year 2016-17, it is assumed that ` 143394.60 lakh is towards farm sector activities like Dairy, Poultry, SGP etc.

9.3 Availability of infrastructure, critical gaps, Interventions required and action points/issues to be addressed

a) Banks may finance SHG members under JLG mode for taking up income generating activities or setting up micro enterprises b) Under loans to distressed persons to pre-pay non-institutional lenders may be supported with working capital limits and a portion of term loans for creation of employment and liquidate bank loan c) A large number of people who have opened Bank accounts under the PMJDY will be now eligible for overdue facility of `.5000, preferably given to the female member of household will also be interested to plough these funds into activity likely to be taken up / taken up under SHG Bank linkage scheme. Banks, if are able to identify members of the same SHG and provide may lend group loans for setting up micro enterprises and create alternate employment channels d) Advances sanctioned to State sponsored organizations of SC/ST, for the specific purpose of purchase and supply of inputs to and/or the marketing of outputs of the beneficiaries viz. artisans, village and cottage industries of these organizations, which are treated as priority sector advances, may be encouraged to avail other lines of credit facilities of the banks. e) Self-employment ventures may be encouraged under loans to State sponsored organisations for SC/ST

CHAPTER 10 INFRASTRUCTURE SUPPORT

“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 PSL norms and the potential for this sector through public and private investments needs to be assessed separately with reference to ‘Infrastructure Index’ for the district. a. Infrastructure – Public investments b. Infrastructure – Social Infrastructure – Bank credit

10.1 Infrastructure – Public investments

10.1.1 Status of infrastructure: 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. As availability of infrastructure in the district indicates index of development status, attempt to assess adequacy of appropriate infrastructure essential to exploit full development potential has been made through certain identified indicators and also a comparison with the state index. Irrigation: There are 8 medium irrigation projects in the district. They are Swarnamukhi, Anicut, Araniyar,Mallimadugu, Kalangi, Bahuda, Siddalagandi Project, Krishnapuram Reservoir and Peddedur Project. The total registered ayacut under 8 projects is 15,310 ha. There are 7515 minor irrigation tanks with a total ayacut of 54,336.14 ha. The district has a total of 116,239 irrigation wells. The upcoming Major irrigation projects are Telugu Ganga with a projected ayacut of 37983 acres, Handri Neeva Sujala Sravanthi with projected ayacut of 180450 acres, S.S. Canal with projected ayacut of 48840 acres and Galeru Nagari Sujala Sravanthi with projected ayacut of 1,03,500 acres.

Electricity: As per the 2001 census 1540 villages (100%) in the district are electrified. Communication: The communication facilities are satisfactory in the district Transportation: The district has a total 1289.68 kms of National Highways crossing across the district. The district also has a length of 293.38 kms of State Highways facilitating movement of transport vehicles. Agriculture Markets: There are 19 Agriculture Marketing Committees facilitating trading activities in the district. Setting up of modern / mechanized handling, grading infrastructure at the 19 Agricultural Market Committees with 44 Notified markets would facilitate interstate trade and quality based pricing to the farmers. There are 106 weekly markets located in rural areas, having substantial business turnover. The markets are being used by farmers, SHG members, and traders. Most of the markets have limited infrastructure relating platforms, shade / covered outlets, drinking water, toilets. NABARD under its Rural Haat scheme has supported 13 shandies. Having established the economic utility of these Gram Panchayat owned assets, RIDF funding may be explored for quick upgrading over 100 haats in the district, which can be developed as Primary Collection centres. Agriculture Productivity: The low productivity in agriculture is attributed to rain fed nature and adoption of water saving techniques viz. SRI, SSI are expected to stabilize and improve productivity. 62

Education, Health, Drinking water Supply: The district has about 6370 Schools including Elementary, Upper Primary and High Secondary Schools with a student strength of 603685.The district has about 132 Government Hospitals catering to the district population. These hospitals are in addition to Ayurvedic, Homeopathy, Unani and Naturopathy. The total beds in these hospitals are 4154 with 530 Doctors proving service to the patients. 10.1.2 Sector-wise critical infrastructure gaps assessed in the Base PLP The sector-wise critical infrastructure assessed in the PLP include major activities viz. Minor Irrigation, Land Development, Farm Mehanisation, Horticulture, Dairy etc. The RIDF has brought in perceptible change in the critical infrastructure like Roads and Bridges in the district. The strengthening of Animal Husbandry extension centres by setting up of veterinary clinics/AI centres for Animal Husbandry, has been phenomenal. Keeping in view the critical infrastructure gaps, the following interventions would enhance the pace of overall development of the district:

Sector Critical Infrastructure Identified Minor Irrigation  Construction of artificial recharge structures such as check dams, percolation tanks  Promotion of farm ponds Land Development  Demonstrative models at farmers level viz. micro irrigation Farm Mechanisation  Agri Service Centres and Agri Implement Stations can promote mechanization by small farmers on hire basis Horticulture  Horticulture Training Centres and Model farms for imparting skills on managing UHD Mango , pruning, training linking producers to processors  Green house cultivation, training systems in tomato, grape, vegetables Dairy  The district has majority of veterinary hospitals supported under RIDF, however, assistance for IT infrastructure, mobile vet clinics, disease surveillance will further improve effectiveness and efficacy of veterinary personnel Poultry  Infrastructure needs to be developed for back yard poultry which has im- mense potential as llivelihood activity amongst SHG members in the district  On the similar lines of contract broiler production, backyard poultry can be developed where in the chicks, feed, vaccination and veterinary care is provided by IKP staff  Centralised feed mills may be initiated by the Animal Husbandry with out- sourced to SHG Members Agriculture  Strengthening of available infrastructure in the weekly markets by provid- Marketing ing shade outlets, protective platforms, electronic weigh scales together with drinking water facilities and sanitation by availing RIDF assistance.

Rural Infrastructure Development Fund (RIDF): 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. Thirty four activities are eligible for sanction under RIDF the list of which is given at the end of the chapter. Since inception, 1611 projects were sanctioned involving RIDF assistance of `.74730.57 lakh as on 31 March 2015. The details of projects sanctioned in Chittoor district are given below. The position indicated in the table is as on 31.3.2015.

(` lakh)

No. of RIDF Amount Project Activity Projects Assistance Disbursed cost Infra support to field veterinary 139 2896.56 895.53 3057.93 institutions Junior Colleges – AP Horticulture 1 25.60 0 272.00 University Junior Colleges – Commiserate of 14 943.50 434.87 111.00 Intermediate Education Polytechnic Colleges 4 1209.05 707.56 1422.70 Girijan Cooperative Storage Depots 2 15.58 14.84 16.40 Primary Health Centres 3 4680.73 936.14 5512.00 Minor Irrigation Projects 10 4243.08 2691.53 4570.81 Road-PRDT 76 7443.02 5118.07 9441.33 Bridges-RBDT 9 3464 1277.75 4330.00 Road-RBDT 16 3514.72 1816.88 4400.00 Comprehensive Land Development 3 3341.81 2667.28 10312.31 Programme Road-Tribal welfare Engineering 1 71.30 71.30 99.50 Department Tribal Welfare Residential Schools 2 85 17.06 100.00 Anganwadi Centres 10 411.81 136.76 484.50 Total 290 32345.76 16785.57 44130.48

The infrastructure projects funded under RIDF resulted in: a) Improved connectivity from Rural Areas to mandal headquarters resulting in improved marketing facilities for agricultural produce. b) improvement in education and health care facilities to the rural populace, c) Improved health care for animals

Based on the discussions with various departments, creation of following infrastructure under RIDF support will have positive impact on the development of the district: ( ` lakh) No. of Unit Purpose Nodal Department Fin outlay Units cost Grading and standardization Department of 10 25.00 250.00 infrastructure in APMC Markets Marketing / DCO Infrastructure for integrated dairy Animal Husbandry 20 150.00 3000.00 and milk handling at MMS Mobile Vet clinics & Disease Animal Husbandry 10 15.00 150.00 Surveillance Centres Horticulture Training Centres cum Horticulture 3 250.00 750.00 Demonstration Farms department Recharging /farm storage DWMA 500 3.00 1500.00 structures percolation tanks, check dams, farm ponds in private lands Upgrading of Rural Haats Dept Marketing / DCO 70 12.00 840.00 Drip & Micro Irrigation APMIP 7500 0.50 3750.00 Micro Irrigation Projects APMIP 25 75.00 1875.00 Roads PRDT 50 150.00 7500.00 Rural Drinking Water Supply RWS 50 20.00 1000.00 Primary Health Centres HMDC 30 30.00 900.00 Total 21515.00

Rural Infrastructure Promotion Fund (RIPF) 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. Recognizing 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 the 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, being 50% of the Project cost. The project envisages increasing the net income of Banana farmers. NABARD Warehousing Scheme For our country, achieving food security has always remained one of the prime objectives. Though the problem of low production has been largely solved, proper storage of the produce has been a cause of concern till date. To alleviate this problem, NABARD Warehousing Scheme was launched in 2011-12. To give a fillip to this sector an allocation of ` 5,000 crore each to NABARD was made in the budget for 2013-14 & 2014-15 for supporting creation of infrastructure for storage of agricultural 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 2013-14(NWS) and WIF 2014-15 which envisages extension of loans to Public and Private sectors for construction of warehouses, silos, cold storages and other cold chain infrastructure. Regional Office has sanctioned an amount of `105.70 crore to APSWC under RIDF XVIII for construction of 26 Warehouses / Godowns. 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. NABARD Infrastructure Development Assistance (NIDA) 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. Public Financial Institutions are 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 as against a target of ` 250 crore. A cumulative amount of `157.26 crore has been disbursed as on 31 March 2015.

List of eligible activities under RIDF (A) Agriculture and related sectors (RIDF Loan: 95%) 1) Minor Irrigation Projects / Micro 14) Riverine Fisheries Irrigation 15) Animal Husbandry 2) Soil Conservation 16) Modern Abattoir 3) Flood Protection 17) Medium Irrigation Projects 4) Watershed Development / Reclamation 18) Mini Hydel Projects / Small Hydel of waterlogged areas Projects (upto 25 MW) 5) Drainage 19) Major Irrigation Projects (already 6) Forest Development sanctioned and under execution) 7) Market Yard / Godown, Mandi, rural 20) Village Knowledge Centres haats and other marketing infrastructure 21) Desalination plants in coastal areas 8) Cold storage, Public or Joint sector cold 22) Infrastructure for Information storage at various exit points Technology in rural areas 9) Seed / Agriculture / Horticulture Farms 23) Infrastructure works related with 10) Plantation and Horticulture alternate sources of energy, viz. Solar, Wind 11) Grading and certifying mechanisms such etc. and Energy Conservation as testing and certifying laboratories etc. 24) 5/10 MW Solar Photovoltaic Power Plan 12) Community irrigation wells of irrigation purposes for the village as a whole 13) Fishing harbour / jetties

(B) Social Sectors (RIDF Loan: 85%) 1) Drinking Water 5) "Pay & use" toilets in rural areas 2) Infrastructure for Rural Education 6) Construction of Anganwadi Centres; Institutions 7) Setting up of KVIC industrial estates / 3) Public Health Institutions centres 4) Construction of toilet blocks in existing Solid Waste Management and Infrastructure schools, where necessary, especially for girls. works related with sanitation in rural areas

10.2. SOCIAL INFRASTRUCTURE INVOLVING BANK CREDIT 2016-17 10.2.1 Introduction The provisioning 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 villages. 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 program 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.

10.2.2. Rural Water Supply and Sanitation Department is the Nodal agency to evolve, implement and maintain water supply and sanitation infrastructure for economic development of rural areas of the district.

The Rural population in Chittoor (2001 census) 29.43 lakh No of Rural Habitations 10970

10.2.3 The nodal department for Sanitation is Rural Water Supply and Sanitation Department which aims to provide 100% Sanitation facilities. Total sanitation Campaign has been renamed as Nirmal Bharat Abhiyan( NBA) with an objective to accelerate the sanitation coverage in rural areas so as to comprehensively cover rural community through renewed strategies and saturation approach. Provision of Individual Household latrine (IHHL) of both below poverty line and identified above poverty line households within a Gram Panchayat is also priority. The strategy adopted under the scheme is to transform rural India into Nirmal Bharat by adopting the Community led and people centered strategies and community saturation approach. A demand driven approach is to be continued with emphasis on awareness creation and demand generation for sanitary facilities in houses, schools and for cleaner environment.

10.2.4 Given the importance of social infrastructure for development and its impact on ultimate credit absorption in rural and urban areas, bank financing for building infrastructure for certain activities viz., schools and health care facilities; drinking water facilities and sanitation facilities in Tier II to Tier VI centres is now considered as Priority Sector Lending.

10.2.5 A glance at the district medical facilities indicate that there are 12 doctors per lakh of population during the year 2013-14 as against 16 doctors per lakh population in 2011-12. Similarly, the district is equipped with 94 Primary Health Centres with 4154 beds with an average of 97 beds for lakh population. There is only one Ayurvedic hospital with 39 dispensaries in the district.

10.2.2 Assessment of Credit Potential for 2016-17

Education Sector

As per the available statistics there are 4450 Primary Schools with total student strength of 256517 as compared to 725 Upper Primary Schools with student strength of 74211. The literacy rate of the district is 71.53 with Male literacy rate at 79.83 and the female literacy rate of 63.28%. In both the school categories the district averages are given in the below table.

2010-11 2013-14 School Type No. of schools Students enrolled No. of schools Students enrolled Primary School 4576 259005 4450 256517 Upper Primary 820 98879 725 74211 School

It is evident from the above table that the number of schools and students enrolled during 2013-14 is coming down as compared to during the year 2010-11 in respect of both Primary schools as well as Upper Primary Schools. The plausible reduction in enrollment may be due to migration of students from Government schools to private educational institutions. However, the average intake per class/school is more than normal intake. This requires additional infrastructure either by opening new schools or creating additional class rooms.

Health Sector

As per the district statistics, the district has 94 Primary Health Centres. The numbers of beds available in the dispensaries are 4154 with an average of 97 beds per lakh of population. The density of doctors available per lakh of population increased from 663 during the year 2011- 12 to 530 in the year 2013-14. The district has also 02 ESI hospitals catering to the needs of the patients.

ALLOPATHIC 2011-12 2012-13 2013-14 Medical Colleges Hospital 1 1 1 General Hospitals 1 1 1 Area / Taluk Hospitals 9 9 9 Primary Health Centres 94 94 94 Dispensaries 0 0 0 (i) Beds 4154 4154 4154 (ii) Beds Per lakh of Population 100 98 97 (iii) Doctors 663 530 530 (iv) Doctors Per Lakh of 16 13 12 Population ESI 2 2 2

Likewise Division wise Government Medical facilities under Allopath availability together with the number of patients treated during the year 2013-14 is given in the table below.

Division/ Govt. Doctors Patients Hosp’tls PHCs Others Total Beds Mandal Disp’sry Male Female Treated Chittoor 9 25 0 197 231 46 50 630 1242068 Tirupati 17 21 2 146 186 179 101 2662 660147 Madanapalle 13 48 0 301 362 92 62 862 1740675 Total 39 94 2 644 779 317 213 4154 3642890

The district has about 39 Allopathic hospitals and 94 Primary Health Centres. In all there are 779 Medical Hospitals as per the statistics available for the year 2013-14. These hospitals are equipped with 530 doctors providing medical facilities to the district population. A division wise comparison indicates that Madanapalle has better infrastructure as compared to Tirupati and Chittoor divisions.

Social Infrastructure involving bank credit has been included in the Priority Sector during the year 2015-16. Projections are being made for the first time. The Block-wise Activity-wise projections under the sector during the year 2016-17 is assessed at `3020.00 lakh. The details 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. Bank Fin. Outlay Units Outlay Loan Units Loan Primary School No. 15 1500.00 1200.00 Upper Primary School No. New activity included under 12 1200.00 960.00 Hospitals No. Priority Sector 10 1000.00 800.00 Sanitation No. 5000 60.00 60.00 Social Infra. Involving No. 5037 3760.00 3020.00 Bank Credit Total

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

 The banks may provide loans for construction of toilets so as to encourage better sanitation conditions  Bankers may proactively take up financing of these activities to full fill their priority sector obligations  Primary and Upper Primary Schools to be encouraged at Mandal level so as to bridge the widening gap and discourage dropping out of students

CHAPTER 11

INFORMAL CREDIT DELIVERY SYSTEM

11.1 Introduction

Andhra Pradesh is a pioneer in SHG movement in the country, with 10.34 lakh SHGs covering 101.90 lakh rural women credit linked under NABARD SHG-Bank linkage program. Chittoor has 59668 SHGs with 578,144 women members. GoAP under Indira Kranti Patham (IKP) has adopted SHG as a model for poverty alleviation with a three tier hierarchical system of Village level Organization (2166 VO), federated as Mandal Mahila Samiti (66 MMS) and Zilla Mahila Samiti (ZMS) under the leadership of DRDA at the district level.

11.2. Status of SHG-BLP The geographical spread of micro-financing is given below:

Total No. of mandals in the district 66 No. of mandals where SHGs exist 66 No. of blocks where SHGs are credit linked 66

11.3 SHG- Bank Linkage Program in Chittoor District: The salient feature of SHG- BLP in the district is as under: (` lakh) 2014-15 2015-16 (up to 30.6.2015) Loan o/s at Loan o/s at No. of SHGs Bank Loan issued No. of SHGs Bank loan Agency the the end of credit linked (`. Lakh) credit linked (` lakh) beginning of the year Fresh Repeat the year Fresh Repeat Fresh Repeat Fresh Repeat CBs 11586 27254 73631.19 41469.00 108999.00 80613.84 416 419 316.00 1237.00 RRBs 5021 19041 59397.52 18053.00 73522.00 62507.32 159 584 885.00 2005.00 Coops 3 - 67.50 9.00 - 51.99 - - - - Total 16610 46295 133096.21 59531.00 182521.00 143173.15 575 1003 1201.00 3242.00

11.4 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.

Asset Creation & Micro enterprise development: In Chittoor district there are about 61,031 loan accounts with an outstanding amount of `129868 lakh as on 30.6.2015. The statistics of SHGs reveal that as many as 10,011 with an amount of `6547.90 lakh are categorised as irregular. The overall overdue position of the SHG loan accounts are at 5.04% which are alarmingly high in the context of micro finance. In the information provided by SERP on the Enterprise Survey findings, SHGs in general, it was noted that about 49% of the SHG Members surveyed availed loans for setting up of Petty business / shops under livelihood activities with closely followed by Agriculture or Horticulture based trading activities taken up by 17% of the SHG Members. The income generated from the activities taken by these SHG Members is directly proportional to the SHG Members opting for the specific activity.

Monitoring performance and repayment: Though, the IKP has 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

69 federation level, etc , the rising delinquencies in SHGs is a cause for concern. There is a need to strengthen CBRM at branch level so as to enable the banks to resume its lending to SHGs.

Multiple lending: The digitisation of SHGs which is on the anvil would mitigate most of the issues arising on account of multiple lending to a single borrower. The linkage of Aadhar to the loan accounts and up-dation of data on a real time basis under the grid will enable the Central agency to address the issue of Multiple Lending.

Other issues: The other issues in the SHG-Bank Linkage programme in the district include capacity building of field level functionaries ability to appraise credit proposal at the grass root level before extending bank loan will be a revolutionary step towards effective performance of SHGs. The other issues include lack of monitoring / supervision by banks due to inadequate training to bank staff is an issue to be addressed at the earliest.

11.5 Road map for the future

The Government of Andhra Pradesh during the year has announced Capital Infusion and Interest Redemption to the SHGs in the State. Accordingly, in Chittoor district out of the total 59,668 SHGs with a membership of 578,144 were eligible to receive a sum of ` 57,814.44 lakh at `10,000 per member being the ceiling. However, 59634 SHGs with total 558091 members were eligible to receive the Capital Infusion in the district. A total of ` 16742.73 lakh has since been received towards first instalment at ` 3000/- per members. Likewise the SHGs have received an Interest redemption grant of `17,797.10 lakh from a total of `21,096.95 lakh.

The focus has now shifted to utilisation of the Capital Infusion only for the purpose of taking up income generating activities by each SHG preparing a micro plan before withdrawal of the capital infusion instalment.

The roadmap for extending the outreach and having a meaningful impact of SHG-BLP may include the following:  Identification of potential activities for setting up of Micro Enterprises and motivating members for taking up the activity with required training being imparted to the identified SHG members.  Graduation of SHGs to a higher level by taking up entrepreneurial activities.  There is an imperative need to identify early warning signals of the SHGs before delinquency. These early warning signals would enable the Banks and the field functionaries to take precautionary measures and initiate steps for their revival  Training and capacity building of stakeholders including bank branches and other staff of banks.

11.6. Estimation of Potential under SHG-BLP 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. As per the policy adopted by Government of Andhra Pradesh regarding Capital Infusion of `.10, 000 to each Member of SHG in instalments, and the potential for credit linkage of SHGs has been estimated based on the repayment and drawing power of SHGs.

Particulars Total No. of SHGs to be savings linked 0 No. of SHGs to be credit linked for the fresh/renewal 3793 Amount ( lakh ) 255394.60

The total assessment of `255,394.60 lakh for the year 2016-17 is based on the achievement for the year 2014-15 together with the projected / target for the year 2015-16.

5.6 Financing through Joint Liability Groups (JLGs)

The JLG mode of financing serves as collateral substitute for loans provided to the small, marginal, tenant farmers, oral lessees, share croppers, etc. It enables the banks to reach farmers through group approach, adopt cluster approach and facilitate peer 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 Licensed Cultivators Eligibility Cards (LECs) to tenant and oral lessee farmers so that they could access credit from pubic financial institutions. Though, few of the banks have been financing to these LEC card holders, the financing has not been to the desired level.

As per the Ground Level Credit Flow in the district for the period 31.3.2015, a total of 19798 JLGs have been financed during the year 2014-15 with an amount of ` 686.46 lakh. The agriculture department envisages distributing agricultural implements under Farm Mechanisation through Rythu Mitra Groups (RMGs) with eligible 50% subsidy component.

CHAPTER 6

AREA BASED SCHEMES

Animal Husbandry being a significant subsector to Agriculture is playing a pivotal role in the rural economy providing gainful employment to a large number of small and marginal farmers and enhancing their income statue. Besides providing supplemental income, dependability even during drought times is one aspect that makes the activity lucrative and progressive.

The importance of dairying as an income generating activity to augment family incomes of the Poorest of the Poor (PoP) and BPL SHG families gains importance in the present situation wherein land holdings have become smaller and income from agriculture along is not enough to sustain the livelihood. This is reflected in the MCPs prepared by SHGs, where dairy is ‘the’ major income generating activity identified by the members. In district like Chittoor, dairy centric programmes like Kamadhenu have been launched successfully augmenting incomes of the rural farmers under JLG mode.

Animal Husbandry (Dairy Development) – Chittoor District  The Chittoor District stands first in cow milk production in the State with milk production estimated at 15-16 LLPD. As per provisional 19th Live Stock census, the district has 9.24 lakh cattle and 0.84 lakh buffaloes. District is the home tract for Punganur breed of cattle. The district stands first in cow milk production in the undivided state and third in total milk production. A majority of small and marginal farmers are largely dependent on dairy production for their livelihood.  Good veterinary infrastructure with Gopal mitras providing breeding services at the doorstep of farmers. The Milk procurement and marketing is well established. BMCUs of MMS playing a key role in milk procurement. Farmers are well aware of the cattle management practices.  Established Bulk Milk Chilling Centers (BMCUs), manned by Mandal Mahila Sama- khyas to ensure remunerative prices to milk pourers. Marketing tie up with Balaji Dairy (NDDB) and AP Dairy. In addition Balaji Dairy operating 20 mini BMCUs and Chilling Centers at Palamaner & Tirupati. Present milk procurement in the district is 2.71Lakhs liters per day which is the highest by any agency in the district. Price stabilisation, regular payments and transparency are the hall marks of this intervention.

Need for area based scheme: Small dairy units are predominant in the district and it is a major livelihood activity in these areas due to good marketing linkages provided by both Government and Private dairy firms. The infrastructure such as Bulk Milk Cooling Centres (BMCUs) are available in these areas, the IKP is contemplated to empower rural women through dairy development activities and prepared a comprehensive plan covering distribution of milch animals, dairy marketing, animal breeding, perennial development and health care services for the purpose.

Backward and forward linkages and gaps therein  Infrastructure presence: Dairy is perceived as traditional activity and also there is presence There are about 94 Bulk Milk Chilling Units operating under the DRDA administration and adequate supporting animal health and breeding infrastructure in all the mandals of the district.  Advantage for the sector in the district: The proximity to the metros viz. Bangalore and Chennai has enabled potential private dairies for procuring milk from farmers and transported to the nearest milk processing units.

Potential Activities under Integrated Dairy Farming in Chittoor identified under area based scheme:

Dairy Entrepreneurship Development Scheme Bank Branch wise Targets

Name of the Bank Branch No. of pourers Mandal Santhipuram 40 Santhipuram Vijalapuram 40 Kuppam 30 Kuppam Mallanur 20 Gudipalli Gudipalli 40 Saptagiri grameena Bank Vijalapuram 20 Ramakuppam Ramakuppam 40

V.Kota 30 V.Kota 30 V.Kota Ogu 30

Cheldiganipalli 30 Total Total 350

(` lakh) # Cluster Beneficiaries Total Financial Total Bank identified Outlay* Loan 1 Santhipuram 80 68.80 68.80 2 Kuppam 50 43.00 43.00 3 Gudipalli 40 34.40 34.40 4 Ramakuppam 90 77.40 77.40 5 V.Kota 90 77.40 77.40 350 301.00 301.00 *average unit cost at `.0.86 lakh.

Proposed banking plan for Term Loan Investments in Chittoor district for 2016-17

Project Area: The project area comprises of 350 beneficiaries from 05 Mandals of Kuppam Region. All the villages selected are dairy villages. It is proposed to initially set up about 350 units (2 animals) in the identified Mandals of the district. As the cost of the unit is below ` 1.00 lakh, as per RBI guidelines, the entrepreneur contribution (Margin money of 10%) need not be insisted upon. Therefore, the total financial outlay has been reflected as bank loan. It is estimated that the amount assessed under the Area Development Scheme will be a trigger point for ancillary term lending activities viz. Fodder cultivation, additional BMCUs and refer vans for transportation of Milk to various dairies may result in capital formation under agriculture.

II. Area Development scheme on Sheep Rearing

Introduction: Sheep and goat rearing is a popular economic activity in rain fed areas of the district among small/marginal farmers and agricultural laborers. The activity is popular among the above category farmers the sheep are reared by grazing on various types of vegetation and in grazing lands with no additional cost on feeding. As per the 19th livestock census there were 1249460 sheep in the district. The Animal Husbandry Department has drawn action plan for increasing the Meat production from the present 61000 MTs during the year 2014-15 to 64,000 MTs in 2015-16 with total Gross value contribution to be increased

73 from ` 837 crore to ` 947 crore. The district has robust Veterinary team to provide Health care assistance to the sheep farmers.

The Pileru Sheep Market is the main supplier of Meat to neighboring Bangalore and Chennai Markets with added domestic consumption and sale of meat in the district. As the activity being remunerative with short cycles, there is an inclination of the farmers to take sheep as a major income generating activity. Further, NABARD has demonstrated in identified areas the Scientific Sheep rearing activities under UPNRM projects thereby triggering credit demand from NABARD and other financial intermediaries.

The Chittoor DCCB in order to increase its term lending share in its portfolio has expressed its willingness to fund the sheep rearing activity in Kuppam Region.

Project Area Kuppam area has been identified for the activity as the region has natural fodder available and the entrepreneurial attitude of the farmers together with the available potential the project is planned to be grounded in Ramakuppam, Kuppam, Shantipuram and V.Kota Mandals.

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

Backward and Forward linkages

 AH department would ensure availability of suitable breeds from the local markets of Pilfer.  AH Department would organize 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  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.,supply of breeding rams on subsidy to prevent in-breeding is available from the Department  Local demand for sheep meat is very high. Further the mandals selected have sheep markets and buyers from other States also visit the markets.

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

Kuppam Branch of Chittoor DCCB will implement the programme. ( ` lakh) Physical Programme No. of Financial Outlay Bank (Units) branches 2015-16 2016-17 2015-16 2016-17 Chittoor DCCB 1 250 250 250.00 250.00 Total 250 250 250.00 250.00

The above projections are a part of PLP – 2016-17 projections and are included in Annexure – I under the respective sectors.

Annexure I

Activity wise / block wise Physical and Financial Projections 2016-17

District Chittoor State Andhra Pradesh (` lakh ) SoF(as per Unit Cost Chittor Kuppam Madanapalli Palamaner Puttur Piler Tirupathi Srikalahasthi Total for 2016-17 SNO Activity Unit Size revised KCC) Bank Loan Prop of BL 2015-16 Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy /Unit cost Crop Production, Maintenance & Marketing 1 Ground Nut ha 0.462 0.60046 0.600 100% 24341 14615.80 11389 6838.64 51152 30714.73 17102 10269.07 7032 4222.43 30635 18395.09 8804 5286.45 4623 2775.93 155078 2 Mango ha 0.598 0.77706 0.777 100% 19000 14764.14 1035 804.26 4805 3733.77 5906 4589.32 9255 7191.69 15489 12035.88 10553 8200.31 572 444.48 66615 3 Paddy ha 0.652 0.84770 0.848 100% 2446 2073.47 1220 1034.19 3965 3361.13 1513 1282.57 4250 3602.73 3079 2610.07 11780 9985.91 21607 18316.25 49860 4 Sugarcane ha 1.494 1.94266 1.943 100% 11528 22394.98 446 866.43 1629 3164.59 3288 6387.47 5991 11638.48 1040 2020.37 2560 4973.21 1670 3244.24 28152 5 Tomato ha 1.494 1.94266 1.943 100% 267 518.69 2200 4273.85 6500 12627.29 2200 4273.85 200 388.53 1800 3496.79 275 534.23 154 299.17 13596 6 Ragi ha 0.163 0.21193 0.212 100% 151 32.00 6902 1462.74 562 119.10 892 189.04 16 3.39 95 20.13 23 4.87 6 1.27 8647 7 Maize ha 0.217 0.28257 0.283 100% 0 0.00 389 109.92 2639 745.70 48 13.56 25 7.06 25 7.06 82 23.17 0 0.00 3208 8 Bajra ha 0.109 0.14128 0.141 100% 0 0.00 3 0.42 21 2.97 3 0.42 342 48.32 0 0.00 775 109.49 646 91.27 1790 9 Chillies ha 0.543 0.70642 0.706 100% 735 519.22 148 104.55 122 86.18 233 164.60 251 177.31 128 90.42 114 80.53 20 14.13 1751 10 Potato ha 0.815 1.05963 1.060 100% 50 52.98 375 397.36 422 447.16 100 105.96 0 0.00 350 370.87 0 0.00 0 0.00 1297 11 Beans ha 0.326 0.42385 0.424 100% 50 21.19 350 148.35 350 148.35 200 84.77 50 21.19 50 21.19 36 15.26 60 25.43 1146 12 Sunflower ha 0.217 0.28257 0.283 100% 4 1.13 0 0.00 206 58.21 40 11.30 632 178.58 69 19.50 124 35.04 69 19.50 1144 13 Brinjal ha 0.543 0.70642 0.706 100% 50 35.32 550 388.53 100 70.64 300 211.93 200 141.28 200 141.28 50 35.32 243 171.66 1693

14 Pledge Loan/marketing Loan 0.975 1.07250 1.073 100% 1835 1968.04 12000 12870.00 13000 13942.50 13000 13942.50 12500 13406.25 9000 9652.50 2000 2145.00 12000 12870.00 75335 Sub Total Crop Production & Marketing 60457 56996.969 37007 29299.243 85473 69222.3367 44825 41526.358 40744 41027.25 61960 48881.1608 37176 31428.798 41670 38273.33 409312

Water Resources 15 Borewell+PS No 1.150 1.265 0.949 75% 200 189.75 200 189.75 200 189.75 200 189.75 200 189.75 200 189.75 200 189.75 200 189.75 1600 16 Pumpsets No 0.700 0.770 0.578 75% 495 285.86 500 288.75 400 231.00 300 173.25 1000 577.50 498 287.60 257 148.42 610 352.28 4060 17 Dripsets Ha 0.600 0.660 0.561 85% 1000 561.00 3000 1683.00 3000 1683.00 3000 1683.00 3000 1683.00 2000 1122.00 200 112.20 1200 673.20 16400 18 Sprinklers Ha 0.280 0.308 0.262 85% 500 130.90 500 130.90 200 52.36 500 130.90 500 130.90 80 20.94 20 5.24 300 78.54 2600 19 Water distribution pipelines Ha 0.200 0.220 0.132 60% 338 44.62 563 74.32 338 44.62 225 29.70 120 15.84 338 44.62 113 14.92 225 29.70 2260

Sub Total Water Resources 2533 1212.13 4763 2366.72 4138 2200.73 4225 2206.60 4820 2596.99 3116 1664.91 790 470.52 2535 1323.47 26920 Farm Mechanisation 20 Tractors No 5.50 6.050 4.5375 75% 100 453.75 120 544.50 100 453.75 130 589.88 120 544.50 120 544.50 120 544.50 300 1361.25 1110 Horticulture Mechanisation 21 (Mini Tractors) 4.50 4.950 2.475 50% 50 123.75 125 309.38 100 247.50 50 123.75 50 123.75 50 123.75 25 61.88 50 123.75 500 22 Second Hand Tractors No 3.00 3.300 1.98 60% 50 99.00 50 99.00 100 198.00 50 99.00 50 99.00 50 99.00 100 198.00 50 99.00 500 Power Tillers/Biomass 23 chipping unit No 2.25 2.475 1.2375 50% 12 14.85 24 29.70 12 14.85 24 29.70 12 14.85 6 7.43 0 0.00 30 37.13 120 Seed - Fertiliser drill/PHM 24 Equipment No 0.65 0.715 0.3575 50% 100 35.75 100 35.75 150 53.63 150 53.63 100 35.75 150 53.63 100 35.75 150 53.63 1000

Implement Service Stations (Power Weeders/Rotovators 25 /Tillage Eqipment) No 1.93 2.123 1.0615 50% 70 74.31 105 111.46 140 148.61 105 111.46 70 74.31 70 74.31 70 74.31 70 74.31 700 Plant Protection & Pruning/ 26 Misc equipment No 0.30 0.330 0.165 50% 110 18.15 165 27.23 200 33.00 220 36.30 250 41.25 200 33.00 110 18.15 200 33.00 1455 27 Groundnut Mechanisation No 3.75 4.125 2.0625 50% 70 144.38 70 144.38 105 216.56 200 412.50 70 144.38 200 412.50 70 144.38 175 360.94 960 28 Multi crop Threshers No 1.00 1.100 0.55 50% 30 16.50 30 16.50 24 13.20 24 13.20 30 16.50 30 16.50 12 6.60 60 33.00 240 Paddy Mechanisatin (Combined Harvestors, 29 Transplanter, etc.,) No 22.00 24.200 12.1 50% 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 14 169.40 14 30 CHC -Sugarcane No 150.00 165.000 82.5 50% 4 330.00 0 0.00 0 0.00 0 0.00 4 330.00 0 0.00 0 0.00 0 0.00 8 31 Sugarcane Transplanter No 1.00 1.100 0.66 60% 36 23.76 0 0.00 9 5.94 18 11.88 9 5.94 9 5.94 9 5.94 0 0.00 90 32 Fodder Mechanisation No 0.93 1.023 0.5115 50% 144 73.66 180 92.07 180 92.07 144 73.66 120 61.38 120 61.38 180 92.07 132 67.52 1200 26 CHC-Ground nut No 12.50 13.750 6.875 50% 80 550.00 80 550.00 80 550.00 80 550.00 80 550.00 80 550.00 80 550.00 80 550.00 640 Sub Total Farm Mechanisation 856 1957.85 1049 1959.95 1200 2027.11 1195 2104.94 965 2041.60 1085 1981.93 876 1731.57 1311 2962.91 8537 Plantation & Horticulture 27 Mango ha 1.240 1.364 1.0912 80% 100 109.12 500 545.60 200 218.24 500 545.60 100 109.12 400 436.48 100 109.12 100 109.12 2000 28 UHD Mango ha 1.200 1.320 1.056 80% 50 52.80 50 52.80 50 52.80 50 52.80 20 21.12 50 52.80 20 21.12 20 21.12 310 Rejuvenation of mango 29 orchards ha 0.330 0.363 0.2904 80% 100 29.04 0 0.00 75 21.78 50 14.52 125 36.30 100 29.04 0 0.00 50 14.52 500 30 Guava ha 1.020 1.122 0.8976 80% 500 448.80 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 500 31 Banana TC ha 1.970 2.167 1.7336 80% 10 17.34 10 17.34 10 17.34 10 17.34 100 173.36 10 17.34 10 17.34 40 69.34 200 32 Grapes ha 7.900 8.690 6.952 80% 0 0.00 18 125.14 0 0.00 2 13.90 0 0.00 0 0.00 0 0.00 0 0.00 20 33 Papaya ha 1.630 1.793 1.4344 80% 100 143.44 100 143.44 100 143.44 100 143.44 100 143.44 100 143.44 100 143.44 100 143.44 800 Orchards in pre-bearing 34 periods ha 0.250 0.275 0.22 80% 0 0.00 1000 220.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 2500 550.00 3500 35 Loose Flowers ha 0.825 0.908 0.81675 90% 20 16.34 200 163.35 100 81.68 200 163.35 100 81.68 0 0.00 20 16.34 20 16.34 660 SoF(as per Unit Cost Chittor Kuppam Madanapalli Palamaner Puttur Piler Tirupathi Srikalahasthi Total for 2016-17 SNO Activity Unit Size revised KCC) Bank Loan Prop of BL 2015-16 Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy /Unit cost

Green House cultivation of Units (1000 36 Flowers/Vegetables sqm) 11.050 12.155 9.724 80% 10 97.24 60 583.44 20 194.48 0 0.00 10 97.24 0 0.00 0 0.00 0 0.00 100 Vegetables on Pendals/Trellies Units (2000 37 (Climbers/Tomato) sq m) 1.350 1.485 1.3365 90% 50 66.83 300 400.95 300 400.95 300 400.95 300 400.95 300 400.95 50 66.83 50 66.83 1650 38 Aromatic grasses ha 0.625 0.688 0.55 80% 0 0.00 10 5.50 35 19.25 5 2.75 0 0.00 0 0.00 0 0.00 0 0.00 50 Small Fruit/ Vegetable 39 nurseries nos 4.000 4.400 3.52 80% 10 35.20 50 176.00 50 176.00 50 176.00 50 176.00 50 176.00 10 35.20 50 176.00 320 Pack houses/PHM 40 Units/Collection Centres nos 4.000 4.400 3.52 80% 10 35.20 50 176.00 50 176.00 50 176.00 50 176.00 50 176.00 15 52.80 50 176.00 325

41 Plastic Crates Units (100) 0.240 0.264 0.2376 90% 200 47.52 1000 237.60 1000 237.60 1000 237.60 1000 237.60 1000 237.60 150 35.64 1000 237.60 6350 42 Ripening Chambers No 6.000 6.600 5.94 90% 7 41.58 10 59.40 20 118.80 20 118.80 10 59.40 20 118.80 10 59.40 10 59.40 107 Sub Total Horticulture 1167 1140.44 3358 2906.55 2010 1858.35 2337 2063.05 1965 1712.21 2080 1788.45 485 557.22 3990 1639.70 17392 PH - Sericulture 1 Mulberry plantation (new) ha 0.618 0.679 0.475 70% 0 0.00 1600 760.76 800 380.38 800 380.38 0 0.00 0 0.00 400 190.19 400 190.19 4000 2 Rearing shed No. 2.750 3.025 2.118 70% 0 0.00 300 635.25 120 254.10 180 381.15 0 0.00 0 0.00 0 0.00 0 0.00 600 3 Rearing equipment No. 0.700 0.770 0.539 70% 0 0.00 250 134.75 100 53.90 150 80.85 0 0.00 0 0.00 0 0.00 0 0.00 500 Commercial chawki rearing 4 centers No 6.000 6.600 4.620 70% 0 0.00 6 27.72 2 9.24 12 55.44 0 0.00 0 0.00 0 0.00 0 0.00 20 5 Kissan nurseries No 1.700 1.870 1.309 70% 0 0.00 25 32.73 10 13.09 15 19.64 0 0.00 0 0.00 0 0.00 0 0.00 50 Mechanisation/Solar 6 Powering Sericulture No 0.660 0.726 0.436 60% 0 0.00 300 130.68 150 65.34 150 65.34 0 0.00 0 0.00 0 0.00 0 0.00 600 Sub Total Sericulture 0 0.00 2481 1721.89 1182 776.05 1307 982.80 0 0.00 0 0.00 400 190.19 400 190.19 5770 Sub Total Horticulture 1167 1140.44 5839 4628.44 3192 2634.40 3644 3045.85 1965 1712.21 2080 1788.45 885 747.41 4390 1829.89 23162 Forestry & wasteland Development 37 Eucalyptus/Farm forestry Ha 0.600 0.660 0.495 75% 0 0.00 0 0.00 400 198.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 400 38 Nurseries No 2.200 2.420 1.815 75% 15 27.23 10 18.15 20 36.30 20 36.30 20 36.30 20 36.30 20 36.30 20 36.30 145 39 VSS for Livelihoods No 6.600 7.260 5.445 75% 40 217.80 40 217.80 40 217.80 40 217.80 40 217.80 40 217.80 0 0.00 40 217.80 280 Sub Total Forestry 55 245.03 50 235.95 460 452.10 60 254.10 60 254.10 60 254.10 20 36.30 60 254.10 825 AH - Dairy Development 40 CBC No. 0.770 0.886 0.753 85% 1000 752.68 2500 1881.69 1500 1129.01 3000 2258.03 3000 2258.03 3000 2258.03 3000 2258.03 3000 2258.03 20000 41 Mini dairy (CBC)s 25+25 15.000 17.250 15.525 90% 400 6210.00 400 6210.00 400 6210.00 400 6210.00 400 6210.00 400 6210.00 400 6210.00 400 6210.00 3200 42 Mini dairy (CBC)s 5 2.260 2.486 2.237 90% 500 1118.70 500 1118.70 500 1118.70 500 1118.70 500 1118.70 500 1118.70 500 1118.70 500 1118.70 4000 43 Calf rearing (CBC, GMB) No. 0.170 0.187 0.168 90% 500 84.15 600 100.98 600 100.98 600 100.98 500 84.15 500 84.15 500 84.15 500 84.15 4300 44 Fodder cultivation ha 0.330 0.363 0.327 90% 200 65.34 400 130.68 100 32.67 200 65.34 100 32.67 200 65.34 25 8.17 200 65.34 1425 45 Support to Gopal Mitras No 0.825 0.908 0.726 80% 20 14.52 20 14.52 30 21.78 30 21.78 15 10.89 10 7.26 20 14.52 5 3.63 150 46 Private vety.clinics No 1.650 1.815 1.452 80% 1 1.45 0 0.00 1 1.45 1 1.45 0 0.00 0 0.00 1 1.45 1 1.45 5 47 Milk Processing units 10,000 lpd 66.000 72.600 58.080 80% 5 290.40 5 290.40 5 290.40 5 290.40 5 290.40 5 290.40 5 290.40 5 290.40 40 48 Chaff cutters No. 0.090 0.099 0.079 80% 200 15.84 200 15.84 150 11.88 100 7.92 100 7.92 100 7.92 50 3.96 100 7.92 1000 Milking equipment/Clean Milk 49 Eqipment/Milk Retailing No 0.820 0.902 0.722 80% 23 16.60 30 21.65 23 16.60 15 10.82 15 10.82 15 10.82 15 10.82 14 10.10 150 Sub Total- Dairy 2849 8569.67 4655 9784.46 3309 8933.47 4851 10085.42 4635 10023.58 4730 10052.62 4516 10000.20 4725.00 10049.72 34270 AH-Poultry No. 50 Commercial broiler (Rs/bird) 315.00 346.500 277.20 80% 60000 166.32 90000 249.48 120000 332.64 90000 249.48 24000 66.53 60000 166.32 120000 332.64 66000 182.95 630000 No. 51 Commercial layer (Rs/bird) 500.00 550.000 440.00 80% 150000 660.00 200000 880.00 200000 880.00 3000 13.20 0 0.00 65000 286.00 65000 286.00 0 0.00 683000 52 Backyard Poultry No 0.05 0.055 0.04 80% 500 22.00 1000 44.00 1000 44.00 1000 44.00 1000 44.00 1000 44.00 1000 44.00 1000 44.00 7500 Poultry Integrators Credit/ No 53 WC of poultry units (Rs/bird) 55.00 60.500 48.40 80% 240000 116.16 240000 116.16 240000 116.16 0 0.00 0 0.00 240000 116.16 240000 116.16 0 0.00 1200000 Chicken meat outlet with 54 processing facility No. 2.75 3.025 2.42 80% 100 242.00 15 36.30 25 60.50 15 36.30 15 36.30 10 24.20 60 145.20 20 48.40 260 55 Feed godown & feed mill No. 18.00 19.800 15.84 80% 3 47.52 3 47.52 3 47.52 3 47.52 0 0.00 0 0.00 3 47.52 0 0.00 15 Parent Breeding farms No. 56 (contract) (Rs/bird) 80 88.000 70.40 80% 0 0.00 125000 88.00 0 0.00 250000 176.00 0 0.00 0 0.00 0 0.00 0 0.00 375000 57 Emu Farms 50 pair 30.00 33.000 26.40 80% 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 Solar powering/Poultry 58 mechanisation No 1.00 1.100 0.88 80% 60 52.80 60 52.80 61 53.68 30 26.40 30 26.40 30 26.40 30 26.40 0 0.00 301 59 Sub Total- Poultry 450663 1306.80 656078 1514.26 561089 1534.50 344048 592.90 25045 173.23 366040 663.08 426093 997.92 67020 275.35 2896076.00 60 AH - Sheep/Goat/Pig 61 Sheep/Goat rearing 20+1 1.200 1.320 1.188 90% 1000 1188.00 1000 1188.00 1000 1188.00 2000 2376.00 1000 1188.00 2000 2376.00 1000 1188.00 800 950.40 9800 62 Pig breeding 3+1 0.780 0.858 0.601 70% 5 3.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 8 4.80 0 0.00 13 63 Ram lamb fattening 20 no. 0.638 0.702 0.491 70% 200 98.25 400 196.50 400 196.50 400 196.50 400 196.50 400 196.50 400 196.50 400 196.50 3000 64 Meat Marketing shop 1 1.750 1.925 1.348 70% 5 6.74 5 6.74 8 10.78 5 6.74 5 6.74 5 6.74 13 17.52 4 5.39 50

Sub Total- Sheep/Goat/pig 1210 1295.99 1405 1391.24 1408 1395.28 2405 2579.24 1405 1391.24 2405 2579.24 1421 1406.83 1204 1152.29 12863 Fisheries 65 Fish Ponds ha. 2.75 3.025 1.815 60% 6 10.89 6 10.89 12 21.78 12 21.78 6 10.89 6 10.89 6 10.89 6 10.89 60 SoF(as per Unit Cost Chittor Kuppam Madanapalli Palamaner Puttur Piler Tirupathi Srikalahasthi Total for 2016-17 SNO Activity Unit Size revised KCC) Bank Loan Prop of BL 2015-16 Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy /Unit cost Fish Seed Farms/Stunned 66 Seed Farms No 1.1 1.210 0.726 60% 0 0.00 0 0.00 10 7.26 10 7.26 0 0.00 0 0.00 10 7.26 10 7.26 40 Working capital for fish 67 farming in tanks ha. 0.15 0.165 0.116 70% 60 6.93 100 11.55 150 17.33 155 17.90 60 6.93 145 16.75 0 0.00 85 9.82 755 Sub Total Fisheries 66 17.82 106 22.44 172 46.37 177 46.94 66 17.82 151 27.64 16 18.15 101 27.97 855 Other Activities 68 Bullock Pairs No 0.360 0.396 0.356 90% 5 1.78 5 1.78 5 1.78 5 1.78 5 1.78 5 1.78 5 1.78 5 1.78 40 69 Bullock Carts (1 + 1) No 0.370 0.407 0.366 90% 1000 366.30 1000 366.30 1000 366.30 1000 366.30 1000 366.30 1000 366.30 1000 366.30 1000 366.30 8000

Sub Total- Other Activities 1005 368.08 1005 368.08 1005 368.08 1005 368.08 1005 368.08 1005 368.08 1005 368.08 1005 368.08 8040

Storage Godown / Market yards 70 Multi purpose cold storages 2000 mts 200.00 220.000 176.000 80% 3 528.00 3 528.00 1 176.00 1 176.00 1 176.00 1 176.00 2 352.00 0 0.00 12

Kiosks/Mobile agri 71 marts/Distribution networks No 2.20 2.420 1.936 80% 7 13.55 11 21.30 7 13.55 11 21.30 4 7.74 4 7.74 7 13.55 19 36.78 70 Standardisation/Grading 72 Units No 11.00 12.100 9.680 80% 2 19.36 3 29.04 0 0.00 2 19.36 0 0.00 2 19.36 3 29.04 13 125.84 25 73 Rural Godowns 1000 MT 33.00 36.300 29.040 80% 12 348.48 0 0.00 0 0.00 12 348.48 0 0.00 0 0.00 0 0.00 16 464.64 40

74 Mini Market yards/Rytubazars No 5.00 5.500 4.400 80% 3 13.20 5 22.00 5 22.00 3 13.20 3 13.20 3 13.20 3 13.20 0 0.00 25 Sub Total- Storage/Market yards 27 922.59 22 600.34 13 211.55 29 578.34 8 196.94 10 216.30 15 407.79 48 627.26 172 Land Development Watershed / CLDP/Land 75 reclamation Ha 0.375 0.413 0.289 70% 750 216.56 2000 577.50 6000 1732.50 2000 577.50 1500 433.13 2000 577.50 375 108.28 1800 519.75 16425

76 Land Levelling & OFD works Ha 0.254 0.279 0.196 70% 700 136.91 350 68.45 2100 410.72 350 68.45 1050 205.36 1750 342.27 350 68.45 350 68.45 7000 77 NADEP composting No 0.130 0.143 0.100 70% 400 40.04 750 75.08 500 50.05 500 50.05 500 50.05 500 50.05 100 10.01 750 75.08 4000 Tank Silt Application & Soil 78 enrichments Ha 0.180 0.198 0.139 70% 120 16.63 24 3.33 96 13.31 240 33.26 120 16.63 120 16.63 240 33.26 240 33.26 1200 79 Farm Ponds(Red soils) No 1.120 1.232 0.739 60% 0 0.00 80 59.14 240 177.41 160 118.27 0 0.00 80 59.14 180 133.06 100 73.92 840 80 FPOs No 50.000 50.000 50.000 100% 2 100.00 2 100.00 2 100.00 2 100.00 2 100.00 2 100.00 2 100.00 2 100.00 16 Integrated Farming Systems 81 (IFS) No 10.000 10.000 8.000 80% 50 400.00 50 400.00 50 400.00 50 400.00 50 400.00 50 400.00 50 400.00 50 400.00 400

Sub Total Land Development 2022 910.1405 3256 1283.4904 8988 2883.9816 3302 1347.539 3222 1205.166 4502 1545.583 1297 853.06425 3292 1270.462 29881 Agriculture Infrastructure- Others Bio Pesticides / Bio 82 fertlizers (200 TPA) No. 160.00 176.000 88.000 50% 5 440.00 5 440.00 5 440.00 5 440.00 5 440.00 5 440.00 5 440.00 5 440.00 40

83 Vermi Composting (200 TPA) No. 17.11 18.821 14.116 75% 10 141.16 10 141.16 10 141.16 10 141.16 10 141.16 10 141.16 10 141.16 10 141.16 80 84 Bulk milk coolers 2000 l 10.000 11.000 9.900 90% 5 49.50 5 49.50 5 49.50 5 49.50 5 49.50 5 49.50 5 49.50 5 49.50 40 85 Cattle feed plant 1 T 1.925 2.118 1.906 90% 5 9.53 5 9.53 5 9.53 5 9.53 5 9.53 5 9.53 5 9.53 5 9.53 40 86 Milk Parlours No. 2.470 2.717 2.445 90% 25 61.13 25 61.13 25 61.13 35 85.59 10 24.45 10 24.45 10 24.45 10 24.45 150 Sub-Total - Agriculture Infrastructure 50 701.32 50.00 701.32 50.00 701.32 60.00 725.77 35.00 664.64 35.00 664.64 35.00 664.64 35.00 664.64 350

Food and Agro Processing 87 Milk Chilling Units No. 110.00 121.000 72.600 60% 20 1452.00 0 0.00 3 217.80 4 290.40 0 0.00 4 290.40 1 72.60 0 0.00 32 Traditional Milk Product 88 Manufacturing Units No. 2.20 2.420 1.694 70% 10 16.94 20 33.88 20 33.88 20 33.88 10 16.94 10 16.94 10 16.94 10 16.94 110 89 Tamarind/MFP processing No. 2.20 2.420 1.452 60% 5 7.26 0 0.00 5 7.26 3 4.36 0 0.00 3 4.36 8 11.62 1 1.45 25

Value addition to waste from 90 Food Processing Sector No. 11.00 12.100 7.260 60% 10 72.60 0 0.00 4 29.04 2 14.52 0 0.00 2 14.52 6 43.56 2 14.52 26 Working Capital to Food 91 Processing Sector No. 220.00 242.000 145.200 60% 50 7260.00 0 0.00 30 4356.00 15 2178.00 0 0.00 15 2178.00 45 6534.00 15 2178.00 170

Sub Total- Food Processing 95 8808.80 20 33.88 62 4643.98 44 2521.16 10 16.94 34 2504.22 70 6678.72 28 2210.91 363 Others Loans To Coop. Societies of 92 Farmers/FPO No. 30.00 30.000 30.000 100% 2 60.00 2 60.00 3 90.00 2 60.00 3 90.00 2 60.00 3 90.00 3 90.00 20 Agri-Clinics And Agri Business 93 Centres No. 10.00 10.000 10.000 100% 1 10.00 1 10.00 1 10.00 1 10.00 2 20.00 1 10.00 3 30.00 2 20.00 12 Loans to mfis for On-Lending 94 to agriculture No. 50.00 50.000 50.000 100% 1 50.00 1 50.00 1 50.00 1 50.00 2 100.00 1 50.00 2 100.00 1 50.00 10 Sub-Total - Agriculture Infrastructure 4 120 4 120 5 150 4 120 7 210 4 120 8 220 6 160 42 MSME SoF(as per Unit Cost Chittor Kuppam Madanapalli Palamaner Puttur Piler Tirupathi Srikalahasthi Total for 2016-17 SNO Activity Unit Size revised KCC) Bank Loan Prop of BL 2015-16 Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy BL Phy /Unit cost Processing of Agl Commodities (Rice /Dal/Oil 95 Mills) No 13.00 14.300 11.440 80% 20 228.80 20 228.80 20 228.80 20 228.80 20 228.80 20 228.80 20 228.80 20 228.80 160 Primary processing at Village 96 level No. 5.50 6.050 4.840 80% 50 242.00 50 242.00 50 242.00 50 242.00 50 242.00 50 242.00 20 96.80 20 96.80 340

97 Horticulture Processing No. 165.00 198.000 158.400 80% 20 3168.00 30 4752.00 20 3168.00 20 3168.00 10 1584.00 10 1584.00 10 1584.00 15 2376.00 135 98 Power /hand loom No. 1.00 1.100 0.880 80% 0 0.00 0 0.00 200 176.00 0 0.00 200 176.00 0 0.00 0 0.00 100 88.00 500 99 Micro Enterprises No. 2.00 2.200 1.760 80% 500 880.00 500 880.00 500 880.00 500 880.00 500 880.00 500 880.00 1500 2640.00 800 1408.00 5300 100 Village industry No. 1.10 1.210 0.968 80% 500 484.00 500 484.00 500 484.00 500 484.00 500 484.00 500 484.00 500 484.00 500 484.00 4000 101 Rural artisans No. 0.55 0.605 0.484 80% 240 116.16 240 116.16 450 217.80 450 217.80 600 290.40 210 101.64 210 101.64 600 290.40 3000 102 Silk reeling No. 2.75 3.025 2.420 80% 0 0.00 75 181.50 75 181.50 150 363.00 0 0.00 0 0.00 0 0.00 0 0.00 300 Small Scale Sector (other 103 than FP) No 0.22 0.242 0.194 80% 500 96.80 500 96.80 500 96.80 500 96.80 500 96.80 500 96.80 500 96.80 500 96.80 4000 MSME- Investment credit 1830 5215.76 1915 6981.26 2315 5674.90 2190 5680.40 2380 3982.00 1790 3617.24 2760 5232.04 2555 5068.80 17735 104 WC for handlooms No 0.50 0.550 0.440 80% 0 0.00 0 0.00 300 132.00 0 0.00 480 211.20 0 0.00 0 0.00 420 184.80 1200 105 WC for SSI No 22.00 24.200 19.360 80% 500 9680.00 500 9680.00 500 9680.00 500 9680.00 500 9680.00 500 9680.00 500 9680.00 500 9680.00 4000 WC for retail trade/ Business, 106 SRTO etc No 5.55 6.660 5.328 80% 500 2664.00 500 2664.00 500 2664.00 500 2664.00 500 2664.00 500 2664.00 600 3196.80 500 2664.00 4100 107 WC for HWGs No 1.00 1.100 0.880 80% 0 0.00 0 0.00 60 52.80 0 0.00 180 158.40 0 0.00 0 0.00 60 52.80 300 MSME-WC 1000 12344.00 1000 12344.00 1360 12528.80 1000 12344.00 1660 12713.60 1000 12344.00 1100 12876.80 1480 12581.60 9600 Sub Total- MSME 2830 17559.76 2915 19325.26 3675 18203.70 3190 18024.40 4040 16695.60 2790 15961.24 3860 18108.84 4035 17650.40 27335 Export Credit 108 Preshipment Credit No 45.00 49.500 39.600 80% 10 396.00 10 396.00 10 396.00 10 396.00 10 396.00 10 396.00 10 396.00 10 396.00 80 109 Post-shipment Credit No 25.00 27.500 22.000 80% 10 220.00 10 220.00 10 220.00 10 220.00 10 220.00 10 220.00 10 220.00 10 220.00 80 110 Export Oriented Units No 500.00 550.000 440.000 80% 10 4400.00 10 4400.00 10 4400.00 10 4400.00 10 4400.00 10 4400.00 10 4400.00 10 4400.00 80 30 5016 30 5016 30 5016 30 5016 30 5016 30 5016 30 5016 30 5016 240 Education 111 Technical courses No 15.00 16.500 13.200 80% 200 2640.00 100 1320.00 100 1320.00 100 1320.00 100 1320.00 100 1320.00 200 2640.00 100 1320.00 1000 112 Management / MCA No 5.00 5.500 4.400 80% 50 220.00 50 220.00 20 88.00 20 88.00 10 44.00 20 88.00 20 88.00 10 44.00 200 250 2860 150 1540 120 1408 120 1408 110 1364 120 1408 220 2728 110 1364 1200 Housing Housing loans (including purchase of plots for housing 113 purpose) No 25.00 27.500 22.000 80% 200 4400.00 100 2200.00 200 4400.00 200 4400.00 100 2200.00 100 2200.00 400 8800.00 100 2200.00 1400 Renewable sources of Energy 114 Bio -gas 2 cum 0.2 0.220 0.110 50% 200 22.00 200 22.00 200 22.00 200 22.00 200 22.00 200 22.00 100 11.00 200 22.00 1500 Solar Lighting for Rural 115 Livelihoods No 0.055 0.061 0.030 50% 200 6.05 200 6.05 300 9.08 200 6.05 0 0.00 0 0.00 0 0.00 0 0.00 900 116 Biogas+ equipment No 0.44 0.484 0.242 50% 0 0.00 20 4.84 30 7.26 20 4.84 0 0.00 20 4.84 0 0.00 10 2.42 100 117 Solar Water heaters No. 0.55 0.605 0.303 50% 13 3.93 0 0.00 13 3.93 0 0.00 0 0.00 0 0.00 74 22.39 0 0.00 100

118 Solar Home Lighting Systems No 0.75 0.825 0.413 50% 50 20.63 50 20.63 50 20.63 50 20.63 50 20.63 50 20.63 50 20.63 50 20.63 400 119 Solar Pumping Systems No 4.4 4.840 2.420 50% 50 121.00 60 145.20 25 60.50 60 145.20 50 121.00 50 121.00 25 60.50 60 145.20 380 O-grid Solar PV systems - 3kw- 120 10 kw No 1.58 1.580 0.948 60% 35 33.18 30 28.44 35 33.18 20 18.96 20 18.96 20 18.96 20 18.96 20 18.96 200 Sub Total- Renergy 548 206.79 560.00 227.16 653.00 156.57 550.00 217.68 320.00 182.59 340.00 187.43 269.00 133.47 340.00 209.21 3580 Others Loans to individuals and their 121 SHGs / JLGs No 3.5 3.500 3.500 100% 4000 14000.00 4000 14000.00 4000 14000.00 4000 14000.00 4000 14000.00 4000 14000.00 4000 14000.00 4000 14000.00 32000 Loans to distressed persons to prepay non institutional 122 lenders (other than farmers) No 1.2 1.200 1.200 100% 100 120.00 200 240.00 200 240.00 100 120.00 100 120.00 100 120.00 100 120.00 100 120.00 1000 123 PMJDY No 0.05 0.050 0.050 100% 6000 300.00 6000 300.00 6000 300.00 6000 300.00 6000 300.00 6000 300.00 6000 300.00 6000 300.00 48000 Loans to state sponsored 124 organisations for SC/ST No 1 1.100 0.660 60% 400 264.00 400 264.00 400 264.00 400 264.00 500 330.00 400 264.00 500 330.00 500 330.00 3500 10500 14684 10600 14804 10600 14804 10500 14684 10600 14750 10500 14684 10600 14750 10600 14750 84500 Infrastructure Social Infrastructure 125 Primary School No 100 100.000 80.000 80% 2 160.00 2 160.00 2 160.00 2 160.00 2 160.00 2 160.00 1 80.00 2 160.00 15 126 Upper Primary School No 100 100.000 80.000 80% 1 80.00 2 160.00 1 80.00 2 160.00 2 160.00 2 160.00 1 80.00 1 80.00 12 127 Hospitals No 100 100.000 80.000 80% 1 80.00 2 160.00 1 80.00 1 80.00 1 80.00 2 160.00 1 80.00 1 80.00 10 128 Sanitation No 0.012 0.012 0.012 100% 500 6.00 1000 12.00 500 6.00 500 6.00 500 6.00 500 6.00 500 6.00 1000 12.00 5000 504 326 1006 492 504 326 505 406 505 406 506 486 503 246 1004 332 5037 GRAND TOTAL 537921 129626 730670 97914 686346 141719 424969 112259 99697 102514 461603 113254.60 490105.00 105812 143649 102971.99 3574960 Annexure I

Activity wise / block wise Physical and Financial Projections 2016-17

District Chittoor

Total for 2016-17 SNO Activity Unit Size TFO BL Crop Production, Maintenance & Marketing 1 Ground Nut ha 93118.14 93118.14 2 Mango ha 51763.85 51763.85 3 Paddy ha 42266.32 42266.32 4 Sugarcane ha 54689.76 54689.76 5 Tomato ha 26412.41 26412.41 6 Ragi ha 1832.56 1832.56 7 Maize ha 906.48 906.48 8 Bajra ha 252.89 252.89 9 Chillies ha 1236.94 1236.94 10 Potato ha 1374.34 1374.34 11 Beans ha 485.73 485.73 12 Sunflower ha 323.26 323.26 13 Brinjal ha 1195.97 1195.97

14 Pledge Loan/marketing Loan 80796.79 80796.79 Sub Total Crop Production & Marketing 356655.44 356655.44

Water Resources 15 Borewell+PS No 2024.00 1518.00 16 Pumpsets No 3126.20 2344.65 17 Dripsets Ha 10824.00 9200.40 18 Sprinklers Ha 800.80 680.68 19 Water distribution pipelines Ha 497.20 298.32

Sub Total Water Resources 17272.20 14042.05 Farm Mechanisation 20 Tractors No 6715.50 5036.63 Horticulture Mechanisation 21 (Mini Tractors) 2475.00 1237.50 22 Second Hand Tractors No 1650.00 990.00 Power Tillers/Biomass 23 chipping unit No 297.00 148.50 Seed - Fertiliser drill/PHM 24 Equipment No 715.00 357.50

Implement Service Stations (Power Weeders/Rotovators 25 /Tillage Eqipment) No 1486.10 743.05 Plant Protection & Pruning/ 26 Misc equipment No 480.15 240.08 27 Groundnut Mechanisation No 3960.00 1980.00 28 Multi crop Threshers No 264.00 132.00 Paddy Mechanisatin (Combined Harvestors, 29 Transplanter, etc.,) No 338.80 169.40 30 CHC -Sugarcane No 1320.00 660.00 31 Sugarcane Transplanter No 99.00 59.40 32 Fodder Mechanisation No 1227.60 613.80 26 CHC-Ground nut No 8800.00 4400.00 Sub Total Farm Mechanisation 29828.15 16767.86 Plantation & Horticulture 27 Mango ha 2728.00 2182.40 28 UHD Mango ha 409.20 327.36 Rejuvenation of mango 29 orchards ha 181.50 145.20 30 Guava ha 561.00 448.80 31 Banana TC ha 433.40 346.72 32 Grapes ha 173.80 139.04 33 Papaya ha 1434.40 1147.52 Orchards in pre-bearing 34 periods ha 962.50 770.00 35 Loose Flowers ha 598.95 539.06 Total for 2016-17 SNO Activity Unit Size TFO BL

Green House cultivation of Units (1000 36 Flowers/Vegetables sqm) 1215.50 972.40 Vegetables on Pendals/Trellies Units (2000 37 (Climbers/Tomato) sq m) 2450.25 2205.23 38 Aromatic grasses ha 34.38 27.50 Small Fruit/ Vegetable 39 nurseries nos 1408.00 1126.40 Pack houses/PHM 40 Units/Collection Centres nos 1430.00 1144.00

41 Plastic Crates Units (100) 1676.40 1508.76 42 Ripening Chambers No 706.20 635.58 Sub Total Horticulture 16403.48 13665.96 PH - Sericulture 1 Mulberry plantation (new) ha 2717.00 1901.90 2 Rearing shed No. 1815.00 1270.50 3 Rearing equipment No. 385.00 269.50 Commercial chawki rearing 4 centers No 132.00 92.40 5 Kissan nurseries No 93.50 65.45 Mechanisation/Solar 6 Powering Sericulture No 435.60 261.36 Sub Total Sericulture 5578 3861.11 Sub Total Horticulture 21982 17527.07 Forestry & wasteland Development 37 Eucalyptus/Farm forestry Ha 264.00 198.00 38 Nurseries No 350.90 263.18 39 VSS for Livelihoods No 2032.80 1524.60 Sub Total Forestry 2647.70 1985.78 AH - Dairy Development 40 CBC No. 17710.00 15053.50 41 Mini dairy (CBC)s 25+25 55200.00 49680.00 42 Mini dairy (CBC)s 5 9944.00 8949.60 43 Calf rearing (CBC, GMB) No. 804.10 723.69 44 Fodder cultivation ha 517.28 465.55 45 Support to Gopal Mitras No 136.13 108.90 46 Private vety.clinics No 9.08 7.26 47 Milk Processing units 10,000 lpd 2904.00 2323.20 48 Chaff cutters No. 99.00 79.20 Milking equipment/Clean Milk 49 Eqipment/Milk Retailing No 135.30 108.24 Sub Total- Dairy 87459 77499.14 AH-Poultry No. 50 Commercial broiler (Rs/bird) 2182.95 1746.36 No. 51 Commercial layer (Rs/bird) 3756.50 3005.20 52 Backyard Poultry No 412.50 330.00 Poultry Integrators Credit/ No 53 WC of poultry units (Rs/bird) 726.00 580.80 Chicken meat outlet with 54 processing facility No. 786.50 629.20 55 Feed godown & feed mill No. 297.00 237.60 Parent Breeding farms No. 56 (contract) (Rs/bird) 330.00 264.00 57 Emu Farms 50 pair 0.00 0.00 Solar powering/Poultry 58 mechanisation No 331.10 264.88 59 Sub Total- Poultry 8822.55 7058.04 60 AH - Sheep/Goat/Pig 61 Sheep/Goat rearing 20+1 12936.00 11642.40 62 Pig breeding 3+1 11.15 7.81 63 Ram lamb fattening 20 no. 2105.40 1473.78 64 Meat Marketing shop 1 96.25 67.38

Sub Total- Sheep/Goat/pig 15149 13191.37 Fisheries 65 Fish Ponds ha. 181.50 108.90 Total for 2016-17 SNO Activity Unit Size TFO BL Fish Seed Farms/Stunned 66 Seed Farms No 48.40 29.04 Working capital for fish 67 farming in tanks ha. 124.58 87.20 Sub Total Fisheries 354 225.14 Other Activities 68 Bullock Pairs No 15.84 14.26 69 Bullock Carts (1 + 1) No 3256.00 2930.40

Sub Total- Other Activities 3271.84 2944.66

Storage Godown / Market yards 70 Multi purpose cold storages 2000 mts 2640.00 2112.00

Kiosks/Mobile agri 71 marts/Distribution networks No 169.40 135.52 Standardisation/Grading 72 Units No 302.50 242.00 73 Rural Godowns 1000 MT 1452.00 1161.60

74 Mini Market yards/Rytubazars No 137.50 110.00 Sub Total- Storage/Market yards 4701 3761.12 Land Development Watershed / CLDP/Land 75 reclamation Ha 6775.31 4742.72

76 Land Levelling & OFD works Ha 1955.80 1369.06 77 NADEP composting No 572.00 400.40 Tank Silt Application & Soil 78 enrichments Ha 237.60 166.32 79 Farm Ponds(Red soils) No 1034.88 620.93 80 FPOs No 800.00 800.00 Integrated Farming Systems 81 (IFS) No 4000.00 3200.00

Sub Total Land Development 15376 11299.43 Agriculture Infrastructure- Others Bio Pesticides / Bio 82 fertlizers (200 TPA) No. 7040.00 3520.00

83 Vermi Composting (200 TPA) No. 1505.68 1129.26 84 Bulk milk coolers 2000 l 440.00 396.00 85 Cattle feed plant 1 T 84.70 76.23 86 Milk Parlours No. 407.55 366.80 Sub-Total - Agriculture Infrastructure 9478 5488.29

Food and Agro Processing 87 Milk Chilling Units No. 3872.00 2323.20 Traditional Milk Product 88 Manufacturing Units No. 266.20 186.34 89 Tamarind/MFP processing No. 60.50 36.30

Value addition to waste from 90 Food Processing Sector No. 314.60 188.76 Working Capital to Food 91 Processing Sector No. 41140.00 24684.00

Sub Total- Food Processing 45653 27418.60 Others Loans To Coop. Societies of 92 Farmers/FPO No. 600.00 600.00 Agri-Clinics And Agri Business 93 Centres No. 120.00 120.00 Loans to mfis for On-Lending 94 to agriculture No. 500.00 500.00 Sub-Total - Agriculture Infrastructure 1220 1220.00 MSME Total for 2016-17 SNO Activity Unit Size TFO BL Processing of Agl Commodities (Rice /Dal/Oil 95 Mills) No 2288.00 1830.40 Primary processing at Village 96 level No. 2057.00 1645.60

97 Horticulture Processing No. 26730.00 21384.00 98 Power /hand loom No. 550.00 440.00 99 Micro Enterprises No. 11660.00 9328.00 100 Village industry No. 4840.00 3872.00 101 Rural artisans No. 1815.00 1452.00 102 Silk reeling No. 907.50 726.00 Small Scale Sector (other 103 than FP) No 968.00 774.40 MSME- Investment credit 51815.50 41452.40 104 WC for handlooms No 660.00 528.00 105 WC for SSI No 96800.00 77440.00 WC for retail trade/ Business, 106 SRTO etc No 27306.00 21844.80 107 WC for HWGs No 330.00 264.00 MSME-WC 125096.00 100076.80 Sub Total- MSME 176912 141529.20 Export Credit 108 Preshipment Credit No 3960.00 3168.00 109 Post-shipment Credit No 2200.00 1760.00 110 Export Oriented Units No 44000.00 35200.00 50160 40128.00 Education 111 Technical courses No 16500.00 13200.00 112 Management / MCA No 1100.00 880.00 17600 14080.00 Housing Housing loans (including purchase of plots for housing 113 purpose) No 38500.00 30800.00 Renewable sources of Energy 114 Bio -gas 2 cum 330.00 165.00 Solar Lighting for Rural 115 Livelihoods No 54.45 27.23 116 Biogas+ equipment No 48.40 24.20 117 Solar Water heaters No. 60.50 30.25

118 Solar Home Lighting Systems No 330.00 165.00 119 Solar Pumping Systems No 1839.20 919.60 O-grid Solar PV systems - 3kw- 120 10 kw No 316.00 189.60 Sub Total- Renergy 2979 1520.88 Others Loans to individuals and their 121 SHGs / JLGs No 112000.00 112000.00 Loans to distressed persons to prepay non institutional 122 lenders (other than farmers) No 1200.00 1200.00 123 PMJDY No 2400.00 2400.00 Loans to state sponsored 124 organisations for SC/ST No 3850.00 2310.00 119450.00 117910.00 Infrastructure Social Infrastructure 125 Primary School No 1500.00 1200.00 126 Upper Primary School No 1200.00 960.00 127 Hospitals No 1000.00 800.00 128 Sanitation No 60.00 60.00 3760.00 3020.00 GRAND TOTAL 1029230 906072.05 Annexure-II AN OVERVIEW OF FLOW OF GROUND LEVEL CREDIT- AGENCY WISE / SECTOR WISE for the last three years and targets for the current year

STATE: Andhra Pradesh DISTRICT: Chittoor (Rs lakh)

2011-12 2012-13 2013-14 2014-15 2015-16 Agency / Type of Loan Target Ach Target Ach Target Ach Target Ach Target Crop Loan 134585.00 151759.00 176724.00 183322.00 204486.00 279309.00 233305.00 206229.00 280818.47 CB 64601.00 58097.00 98850.00 63857.00 114377.00 172828.00 136397.00 133816.00 164173.99 Co-op Banks 22879.00 25120.00 18184.00 20566.00 21041.00 45512.00 27840.00 3178.00 33509.21 RRB 47105.00 68542.00 59690.00 98899.00 69068.00 60969.00 69068.00 69235.00 83135.27 Term Loans (MT+LT) 35632.60 51135.00 42007.00 77795.00 68759.00 149191.00 124047.00 95781.00 167655.29 CB 26656.00 38954.00 29658.00 51125.00 48767.00 84424.00 70549.00 64722.00 99734.16 Co-op Banks 1850.00 325.00 4125.00 998.00 6392.00 504.00 317.00 213.00 373.09 RRB 7126.60 11856.00 8224.00 25672.00 13600.00 64263.00 53181.00 30846.00 67548.04 Total Agriculture Credit (1+2) 170217.60 202894.00 218731.00 261117.00 273245.00 428500.00 357352.00 302010.00 448473.76

CB 91257.00 97051.00 218731.00 114982.00 163144.00 257252.00 206946.00 198538.00 263908.15 Co-op Banks 24729.00 25445.00 128508.00 21564.00 27433.00 46016.00 28157.00 3391.00 33882.30 RRB 54231.00 80398.00 22309.00 124571.00 82668.00 125232.00 122249.00 100081.00 150683.31 Non Farm Sector 25725.10 26387.00 33057.00 23404.00 40709.00 57135.00 62233.00 41998.00 139217.79 CB 21351.80 20250.00 25944.00 17103.00 31832.00 47099.00 51618.00 39469.00 117691.60 Co-op Banks 0.00 0.00 0.00 56.00 116.00 0.00 0.00 0.00 0.00 RRB 4373.30 2852.00 1531.00 448.00 1886.00 8213.00 6294.00 1679.00 12393.38 AP SFC 3285.00 5582.00 5797.00 6875.00 1823.00 4321.00 850.00 9132.81 Other Priority Sector 80793.00 72537.00 103819.00 93901.00 112799.00 51219.00 112800.00 119835.00 112804.85 CB 63784.00 52435.00 95192.00 84334.00 92380.00 30053.00 71078.00 36221.00 71082.59 Co-op Banks 850.00 250.00 0.00 234.00 1535.00 293.00 0.00 6481.00 0.00 RRB 16159.00 19852.00 8627.00 9333.00 18884.00 20873.00 41722.00 77133.00 41722.26 Grand Total 276735.70 301818.00 355607.00 378422.00 426753.00 536854.00 532385.00 463843.00 700496.40 PLP 2015-16 Chittoor

Annexure-III

SECTOR WISE AND AGENCY WISE CREDIT FLOW UNDER AGRICULTURE AND ALLIED ACTIVITIES

STATE: Andhra Pradesh DISTRICT: Chittoor (Rs. lakh)

Particulars 2012-13 2013-14 2014-15 CB CCB RRB Total CB CCB RRB Total CB CCB RRB Total A. Crop loans 63857.00 20566.00 98899.00 183322.00 172828.00 45512.00 60969.00 279309.00 133818.49 3177.52 69235.00 206231.01 B. Term loans MI 316.00 12238.10 31.54 0.00 29.00 60.54 LD 0.00 1139.00 31.42 0.00 0.00 31.42 FM 973.00 869.78 168.09 10.00 24.00 202.09 P&H 821.00 1002.90 108.33 0.00 18.00 126.33 DD 4248.00 10466.42 507.56 0.00 35.00 542.56 Poultry 0.00 334.01 517.00 0.00 35.06 552.06 SGP 0.00 1164.04 15.65 0.00 31.56 47.21 Fisheries 0.00 135.13 1.39 0.00 35.09 36.48 SMY 0.00 780.00 0.50 0.00 0.00 0.50 Others 71437.00 121061.62 63340.31 203.59 30638.67 94182.57 Sub-Total 77795.00 149191.00 64721.79 213.59 30846.38 95781.76 Grand Total 261117.00 428500.00 198540.28 3391.11 100081.38 302012.77 Annexure IV Indicative Unit Costs for Major Activities As Fixed By the Unit Cost Committee for the year 2015-16

District : Chittoor Sl.No. Activity Unit Unit Cost (`) I Minor Irrigation a. Bore Well & Pumpset No. 98000 b. Pumpset No. 60000 c. Drip Irrigation Ha. 55000 d. Sprinkler Irrigation Ha. 32000 e. Artificial recharge of dried borewell 40000 e. Pipeline Ha. 20000 II Land Development a. OFD Works Ha. 46500 b. Watershed Development Ha. 12000 c. Tank Silt application Ha. 18000 d. Farm Ponds No. 112000 e. NADEP Compost 5.4 tpa 50000 f. Vermi Compost 20 TPA 233000 III Farm Mechanisation a. Tractor No. 7.5 to 8.5 lakh b. Combine Harvester No. 2000000 c. Power Tiller No. 225000 d. Paddy Transplanters No. 1500000 e. Misc. Agril. Equipments No. 150000 f. CHC – Groundnut No. 1250000 IV Plantation & Horticulture a. Mango (New) Ac 50400 b. Mango (Rejuvenation) Ac 18000 c. Sweet Orange (New) Ac 50200 d. Banana (Tissue Culture) Ac 80100 e. Acid Lime Ac 50200 f. Papaya Ac 98400 g. Pomegranate Ac 58800 h. Jasmine Ac 59200 i. Chrysanthemum Ac 37500 j. Guava Ac 35000 k. Sapota Ac 33800 l. Ber Ac 30300 n. Pack House No. 460000 o. Small Nursery No. 490000 p. Cold Storage MT 10000 q. Amla Ha. 63000 r. Palmarosa/Lemongrass No. 37500 s. Working Capital/maintenance of existing orchards No. 25000 V Sericulture a. Mulberry Plantation Ha. 56800 b. Rearing Cost Ha. 22200 c. Rearing Shed No. 175000 d. Rearing Equipment No. 70000 e. Kissan Nurseries No. 170000 f. Commercial Chawkee Rearing centres No. 600000 g. Drip Irrigation Ha. 48000 h. Vermicompost units No. 20000 VI Forestry a. Farm Forestry Ha. 66300 b. Pongamia Ha. 0 c. Agro Forestry Ha. 71400 d. Bamboo Ha. 43600 VII Dairy Development a. CBCs No. 99300 b. GMBs No. 103400 Mini Dairy 5 animals 294800 c. Mini Dairy 10 animals No. 616700 d. Calf Rearing – CBCs No. 26500 e. Calf Rearing – GMBs Ha. 30600 f. Fodder Cultivation No. 17200 g. Vehicles for Gopalmitras VIII Poultry Development No. a. Layer - 1000 Birds No. 500000 b. Broiler - 800 Birds No. 268000 c. Feed Plants No. 1600000 d. Chick, Meat outlets No. 1100000 IX Sheep, Goat and Piggery Development No. a. Sheep (20+1 units) No. 99500 b. Ram Lamb Rearing (20) 63800 X Fisheries Development a. Inland Fish Farming Ha. 197000 b. Bicycles with Ice Box No. 7500 XI Storage Godowns a. Rural Godowns (2000 MT) No. 9000000 b. Rural Godowns (200 MT) No. 900000 c. Cold Storage (2000 MT) No. 20000000 d. Onion Godowns (50 MT) No. 150000 XII Renewable Sources of Energy a. Biogas Plants (2 cu.m.) No. 14000 b. Solar Lanterns No. 4000 c. Grid connected rooftop solar PV (3 kWh) No. 360000 d. Solar Pump sets No. 554000 XIII Bullocks & Bullock Carts a. Bullocks (Pair) No. 60000 b. Bullock Carts No. 42900

Annexure-V Scale of Finance for Major crops fixed by District Level Technical Committee (DLTC) for 2015-16 S.No Crop Scale of Finance per ha (`) 1 Paddy HYVP-Wet 24000 Srivari 21000 2 Sugarcane Plantation 55000 Rattoon 35000 3 Groundnut Irrigated Dry 17000 Rainfed Dry 15000 4 Ragi Dry 6000 Wet 7000 5 Bazra Dry 4000 Wet 6500 6 Jowar Dry 5000 Wet 8000 7 Tomato Dry(Rainfed) (Local) 17000 Hybrid 55000 8 Watermelon 12000 9 Cabbage 12000 10 Chillies 20000 11 Onion 19000 12 Potato 30000 13 Mulberry with (250 DFLS) one cycle silk worm rearing 25000 14 Sunflower 8000 15 Maize –wet 8000 16 Mango Garden (Maintenance) 22000 17 Gherkins 25000 18 Drumstick 16000 19 Papaya(Taiwan) 60000 20 Banana(TC) 70000 21 Marigold 15000 22 Brinjal 20000 23 Bhendi (Hybrid) 17000 24 French Beans 12000 25 Leaf Vegetables 8000 26 Crossandra 20000 27 Chrysanthemum 20000 28 Tuberose 50000 29 Babycorn 9000 30 Guava 20000 31 Cattle Fodder 13000

Annexure VI Block wise details of potential available for promotion and savings linkage of SHGs

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

1 Chittoor 0 678 628 12410 12410 2 Kuppam 5550 5550 0 547 497

3 Madanapalli 11711 11711 0 487 437

4 Palamaner 6819 6819 0 475 425

5 Piler 6586 6586 0 491 441

6 Puttur 7567 7567 0 202 152

7 SriKalahasthi 7137 7137 0 196 146

8 Tirupathi 6414 6414 0 242 192

Dist Total 64194 64194 0 3,843 3,793

Source: PD, DRDA, Chittoor

Annexure VIA Block wise potential for credit linkage of SHGs No. of SHGs to be credit linked during SHGs to be credit linked during SHGs 2015-16 2016-17 Sl. Name of the (credit Fresh Repeat Fresh Repeat no. block linked) as Amount Amount Amount Amount on 31 Mar. No. No. No. No. 2015 ( ` lakh) ( ` lakh) (` lakh) ( ` lakh)

1 Chittoor 6785 690 3350.72 8561 42548.87 628 794.50 9251 45899.59

2 Kuppam 3027 418 1596.59 3921 16099.77 497 364.00 4339 17696.36

3 Madanapalli 7508 781 3473.80 8840 41775.05 437 826.50 9621 45248.85

4 Palamaner 4498 482 2136.49 4994 23614.45 425 546.50 5476 25750.94

5 Piler 4553 518 2470.57 5965 28899.14 441 799.50 6483 31369.71

6 Puttur 5765 656 3158.84 6413 32180.26 152 764.50 7069 35339.10

7 Srikalahasthi 3533 390 1704.61 4893 22079.94 146 762.00 5283 23784.55

8 Tirupathi 3670 456 2413.99 4103 21925.94 192 249.00 4559 24339.93 Grand Total 39339 4,579 21164.69 47690 229123.42 3,793 5106.50 52269 250288.10

Source: PD, DRDA, Chittoor

NABAR

NABARD Consultancy Services P Ltd Sub (ISO 9001:2008 Company) www.nabcons.com

[ ]

Consultancy in agriculture, rural devp& allied areas s

idiaries

Agri Business Finance Limited (a Non-Banking Finance Company) www.ab.org.in

[ ] Financing for agriculture and allied activities

NABARD Financial Services Limited www.nabns.org

[Financial services for micro-nance]

Nabkisan Finance Limited (a Non-Banking Finance Company) www.nabkisan.org

[Commercialization of enterprises engaged in agriculture and rural non-farm activities]

Accelerating the pace of capital formation in agriculture and allied sector Inter Publicity | 9912216956

National Bank for Agriculture and Rural Development Andhra Pradesh Regional Ofice 1-1-61, RTC X Road, Musheerabad, P.B. No. 1863, Hyderabad - 500 020 Ph: 040 - 2761 3152, Fax: 040 - 2651 2651 email: [email protected] | www.nabard.org

/nabardonline