EXECUTIVE SUMMARY About District Rohtak District with a Geographical Area of 1745 Sq
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PLP – 2016-17 Rohtak District EXECUTIVE SUMMARY About District Rohtak district with a geographical area of 1745 sq. Km. (1668.47 Sq, Km. according to village papers) is situated in the Middle Eastern part of the Haryana state. The district is surrounded by Hisar and Jind districts in the North, Jhajjar district in the South and Sonepat district in the East and Bhiwani district in the West. The district comprises of 2 tehsils, 2 sub-tehsils, 5 development blocks, 3 towns, 146 inhabited villages. Agro-climatically Rohtak district falls under sub-humid and semi-arid/ arid zones. The economy of the district is purely agrarian and is supported by other economic activities like dairy, horticulture, service, trade and business. The district has been identified as a backward district in respect of industrial development. According to 2011 census, the population of the district is 10.61 lakh with a population density of 608 persons per KM. The Sex ratio in the district is alarmingly low at 867 females per thousand males. The district is in a better position with respect of roads, education, electricity and water availability and lagging behind in respect of irrigation, transportation, marketing facilities, etc. than the State Infrastructure Average Index. Total geographical area of Rohtak district is 1,66,847 hectares out of which cultivable area is 1,56,000 hectares. Net-cropped area during 2014-15 was 1,40,000 hectares, whereas gross cropped area was 2,28,353 hectares. The net irrigated area of the district was 1,17,555 hectares, which was 83.9% of net-cropped area. The gross irrigated area was 1,80,955 hectares, which was 79.2% of gross cropped area. The cropping intensity of the district is 163%. The district has a network of 211 Bank branches and 22 PACS. PLP Preparation: 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 a five year credit potential under priority sector covering Primary, Secondary and Tertiary sectors, with emphasis on the Primary sector. These projections were based on parameters such as technical feasibility, availability of infrastructure, availability of exploitable resources, cropping pattern, agriculture practices and other developmental indices such as access to markets, etc. Some of these parameters may have undergone a change in the district since the finalization of Base PLP on account of factors such as changes in Government’s priorities and policies, strengthening of rural infrastructure, market forces, cost escalation, etc., necessitating a relook at the credit potential for the year 2016-17. The District Profile also gives information related to the district, both demographic as well related to Agriculture sector. It also describes the major crops grown and various aspects linked to it. The main theme of this year’s PLP is ‘Accelerating the pace of capital formation in agriculture and allied sector’ and keeping that in mind the PLP has made Term Loan in Agriculture as thrust area this year. 2. Flow of Ground Level Credit (GLC) The flow of GLC (priority sector) in the district during the last 3 years is exhibited below: (` Lakh) Year Sector 2012-13 2013-14 2014-15 Agriculture Sector 136236 189669 165476 MSME Sector 32692 52722 49148 Other Priority Sector 29187 44046 71753 Total Priority Sector 198116 286437 286377 Percentage increase 10.01 % 44.58% (-)0.02% over previous year i PLP – 2016-17 Rohtak District The share of crop loan in total agriculture during last three years was 88.65%, 52.37% and 62.20% respectively. The variation observed during 2013-14 is due to wrong reporting by the banks. However, it is observed that the share of term credit in total agriculture has increased over previous years as thrust is now being given to investment credit. The financing of Kisan Credit Card (KCC) caters to other credit needs of farmers besides meeting cost of cultivation. 3. PLP 2016-17 - Projection of Sector-wise Potentials Based on various factors, like long-term potential, availability and identified gaps in infrastructure, marketing support, State/Central Govt. policies, recent credit flow trends, credit absorption capacity and other strengths and weaknesses of the credit delivery system, a plan of Rs. 372989.03 lakh has been prepared. Major components are Crop Loans (Rs. 161879.90 lakh), Allied Agriculture (Rs. 72028.46 lakh), MSME Sector (Rs.59954.75 lakh) and Other Priority Sector (Rs.79125.92 lakh). The projections as compared to the projections in base PLP 2012-17 have been revised keeping in view the current infrastructure and other requirements at the field level. Accordingly reasons have been mentioned in the respective chapters. The PLP also indicates the projections with regard to formation of 200 SHGs and credit linkage of at least 350 SHGs and 15 more Kisan clubs. In Rohtak district, a total of 1,27,303 KCCs were issued upto 31.03.2015. It is essential on the part of banks to make sincere efforts for issuing KCCs to cover all the cultivators (1,43,314) under KCC by the end of 2016-17. The Block Wise Potential takes into account the existing cultivation area, credit flow trends, potential available, possibility of grounding new schemes, etc. while at the same time endeavouring to have a balanced credit flow for all regions within the district. Other contents and Issues The PLP has endeavoured to address the areas for diversification in all sectors and needs to be noted down by the banks. The Mission for Integrated Development of Horticulture (MIDH) subsidies on offer are referred to in the document. The Micro Finance Sector states the need to credit link at least 350 SHGs in 2016-17. The growth rate of linkages has been slow and the NRLM and NGOs need to work with Banks aggressively. The section on Non-Renewable energy may be perused for obtaining an insight into the priorities of the government and the possible sub sectors which can be financed. The Central Government Priority for Export Credit, micro finance, MSMEs and Housing and Education has been factored in assessing the potential for MSME Sector/ Other Priority Sector. The Chapter on Agro Processing/ Food Processing Sector has been included under Allied Activities chapter. The Animal Husbandry Section in Chapter-3.1.6 incorporates the credit flow which can be tapped through the Dairy Schemes and other schemes. Term Loans to Agriculture need to be stepped up by banks so as to facilitate asset creation in the agriculture sector. Central Govt. through its Budget has also emphasized on extending loaning to this sector. Farm Mechanisation section requires a perusal to understand the need to move beyond tractor financing to other farm equipments. The PLP briefly addresses issues of Infrastructure especially Marketing Infrastructure sector. PLP also provides details regarding all the important Government sponsored programmes with a review of the same. Critical analysis has been attempted to review the performance of the financial institutions. Role of informal credit delivery system has also been assessed. The details regarding various policy initiatives by Government of India, Reserve Bank of India, National Bank for Agriculture and Rural Development (NABARD) & Government of Haryana for over all development, have been consolidated at Chapter I. The details of initiatives taken under SHG- Bank Linkage Programme are explained in Chapter XI. ii PLP – 2016-17 Rohtak District II. A new approach to PLP has been made by focusing on one activity which gives thrust to the sector in which there is lot of scope and potential and thus PLP focuses this year on Dairy in Chapter 12 under Area Based Scheme. Model scheme to develop this sector is being proposed. Some innovative banking products like Rupay KCC, Financial Inclusion measures have been mentioned in PLP. The PLP also focuses on formation of atleast 100 JLGs this year by giving fillip to oral lessees, landless farmers and other tenant farmers. It also focuses on Wet and Dry storage financing, Post Harvest infrastructure, Producers Organisations and other commercial agriculture activities in the district. III. Every Chapter briefly describes the Critical infrastructure which needs to be supported by the State Govt. and it has a bearing on the credit potentials assessed in this PLP. Govt. needs to support Cold chain infrastructure, rural godowns and other value chain interventions wherever necessary. IV. District Coordinators of banks need to guide entrepreneurs as also Line departments for sectors such as Horticulture, Fisheries, Animal Husbandry, Market Yards/Rural Godowns, etc. Reporting in ‘Agriculture Others’ under LBR needs to be realistic by banks while Crop Loans or the relevant sub sector in term loans needs to be reported accurately. The Banks need to focus upon the Micro Finance Sector for scaling up MSME as also to double credit flow to MSMEs by the end of 12th Plan. The DIC may facilitate growth in MSME by sponsoring more cases of Industry. Banks may also encourage such prospective entrepreneurs. The Branch Heads need to overcome attitudinal barriers for general SHG financing – specially the need to finance both Consumption and Income Generating activities in a flexible manner. The Farmers Clubs movement is confined to a few Banks only. The Clubs need to be regular in their meetings and activities also. The clubs have also been envisaged as Business Facilitators. Banks may form clubs in the light of increasing business through these clubs. Branch Heads may guide the Clubs accordingly and ensure proper functioning and regular reporting to uphold the objectives of these clubs. The SAMIS has stabilized in the district but incorrect/untimely reporting distorts the credit flow analysis and needs corrective measures. Banks also need to create a real time database for General SHGs, Swarozgar Credit Cards, General Credit Cards, Artisan Credit Cards, Weavers’ Credit Cards and Kisan Credit Cards with on time reporting to the LDM.