2109162152PLP 2016-17 Chittoor (AP).Pdf
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. 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.