PLP 2016-17 Tiruvallur District

Executive Summary

The Theme of the PLP continues to be “accelerating the pace of capital formation in agriculture and allied sector”. The updated PLP for 2016-17 has been prepared with the guiding factor of Shri Arvind Panagariya, Vice Chairman, NITI Aayog. A. Introduction Tiruvallur District, curved out by bifurcating erstwhile Chengalpattu district, (part of Kancheepuram district) is located in the North East part of Tamilnadu. The total geographical area of the district is 3422 sq km and the number of villages in the district stands 825. It is one of the urbanized districts. The district's major strength and at the same time threat, is its close proximity to Chennai resulting in rapid urbanisation. Conversion of agricultural land for real estate purpose is very common in the district. The smart city planned across 3000 ha will include industrial parks, commercial space and industrial infrastructure. Indian Bank is the Lead Bank in the district. As on 31 March 2015, the district had a banking network of 392 branches of 34 commercial banks, Kancheepuram DCCB, Pallavan Grama Bank. There are 122 PACS and 10 PCARDBs functioning in the district. The banks have opened 2.03 lakh accounts under PMJDY in which the deposit balance stood at Rs 649.63 lakh. Further about 1.98 lakh RuPay cards have been issued and about 48,500 accounts are Aadhaar seeded. The banks in the district have been able to achieve the overall targets fixed under DCP during the last three years. However, during 2013-14 and 2014-15, there was a shortfall in achievement under agriculture Term Loan. The target for GLC for 2015-16 has been fixed at Rs 264169.58 lakh. The Ground Level Credit achievement for the last three years and target for 2015-16 are as detailed below:

(Rs. lakh) Broad 2012-13 2013-14 2014-15 2015-16 Sector Target Achievem Target Achieveme Target Achievemen Target ent nt t

Crop Loan 85309.98 84372.91 80162.57 110820.95 78087.55 129104.93 85414.00

Term 17443.49 19639.38 56582.33 21405.44 74912.08 35766.14 78202.58 Loan

NFS 29958.45 28019.83 41739.60 49019.30 44581.83 50957.49 48866.00

OPS 55205.08 57804.69 37240.72 51403.03 42859.76 45858.85 51687.00

TOTAL 187917.00 189836.81 215725.22 232648.72 240441.22 261687.41 264169.58 This year’s PLP has been prepared with reference to the Base PLP 2012-17 and the revised priority sector guidelines issued by RBI in April 2015. The updated PLP projection for 2016-17 has, therefore, aligned the credit projections as per the revised PS guidelines under eight broad sectors viz., (i) Agriculture (ii) Micro, Small & Medium Enterprises (iii) Export Credit (iv) Education (v) Housing (vi) Social infrastructure (vii) Renewable energy and (viii) Others and the total PLP projections has been estimated at Rs.306739.64 lakh. B Updated PLP Projections: The Updated PLP has projected an overall increase of 13% over the Base PLP projection of Rs.271717.25 lakh and 16% over the updated PLP for 2015-16. The estimates have been made, taking into account Government’s focus on certain priority sectors, programmes under National Missions, cost escalation, ground level credit flow, outreach of banks through Financial Inclusion measures, etc. Details are given below Crop Production, Maintenance and Marketing: Despite the rapid urbanization taking place in the district, the net sown are has increased from 104899 ha in 2012-13 to 108459 ha in 2013-14.Taking into account the, conversion of land for real estate purposes the physical estimates have tapered down, however increased cost of cultivation, SOF etc has resulted in increased potential which has been estimated at Rs 115946 lakh for 2016-17. Term loan for Agriculture & Allied Activities: An amount of Rs 54998.89 lakh is estimated as Term PLP 2016-17 Tiruvallur District

Loan for agriculture and allied activities. Taking into consideration the need for mechanization of agriculture in view of non-availability of agricultural labourers an amount of Rs 18413.35 lakh has been estimated as potential for 2016-17. Further in view of the focus of the State Government and the various schemes being implemented in the State in Animal Husbandry sector an amount of Rs 14420.66 lakh has been estimated as the potential for credit off take in this sector. The total Farm Credit potential has been projected at Rs 170935 lakh. Agricultural Infrastructure & Ancillary Activities: Agriculture infrastructure which includes, Storage/ Godown/ Market Yard, Land Development activities, Tissue culture, Bio Technology etc potential for credit for the year has been pegged at Rs 10773.33 lakh. While Ancillary activities mainly food & Agro Processing has been estimated at 18336.12 lakh for 2016-17. Micro, Small & Medium Enterprises: This sector, plays a crucial role in the economy of the district. The exploitable potential under this sector, including working capital and investment credit has been, for 2016-17 has been assessed at Rs 52456.02 lakh. Other Priority Sectors, including Renewable Energy& Social Infrastructure: Estimate of potential of Rs 1800 lakh for Export of mangoes, Rs 15930 lakh for Education, Rs 21330 for Housing and Rs 2534.28 lakh for Renewable Energy has been estimated for 2016-17. Further a potential of Rs 11635 lakh has been estimated for credit off take of beneficiaries of PMJDY, distressed people, consumption needs etc. Credit under Social Infrastructure which now forms part of Priority Sector has been estimated at Rs 1010 lakh. C. Major Constraints & suggested Action Points Conversion of land for real estate purpose, especially near Chennai is a major threat. Further the district has an urbanisation rate of 65%. It is essential that the State Government takes adequate steps to arrest conversion. There is need to set up cold storages in Puzhal and Ellapuram for storage of vegetables, chillies and flowers. There has been increased focus on milk production in the district. However value addition to milk needs to be undertaken, in order increase its shelf life and also higher income to the farmers. For the year 2015-16, 800 Joint Liability Groups are to be formed in the district. Banks may finance JLGs for ensuring credit off take in on farm and off farm activities. Banks may adopt cluster approach for financing setting up of renewable energy source plants to reduce cost of monitoring, provision of better support service and establish bankability of such ventures. D. NABARD initiative The programme on Enhancing NRM based livelihood development of small and marginal farmers, is being implemented in the rainfed areas in the Tiruvalangadu block. The project will benefit about 2000 SF/MF and result in generation of about 8000 -10000 litres of milk. NABARD supports Farmer Producer Organisations in order to develop these organisations into a sustainable with appropriate business plans. In Tiruvallur, an amount of Rs 45.30 lakh has been sanctioned to the National Agro Foundation (NAF) for developing about 500 jasmine farmers into a sustainable organisation. E.Thrust Area

Tiruvallur District, due to its close proximity to Chennai is facing the problem of conversion of land for real estate. The area under Agriculture is rapidly decreasing. In order to ensure consistent income rearing/ breeding and Pig fattening can be taken up as an activity by both the landed and non-landed farmers of the district. Though this is a very highly profitable activity, very few farmers have learnt to use scientific and modern methods of pursuing this activity. It is necessary to take up this activity on commercial basis in order to ensure proper returns from the asset thus created. Area Development scheme has been prepared for Tiruttani, Tiruvalangadu and Puzhal blocks. Details are given in Chapter 12.

There is need for coordinated approach for ensuring capital formation in agriculture and allied activities. More efforts need to be made to finance through Joint Liabilities Groups, in order to bring the landless famers, oral lessees, tenant farmers etc into the formal banking fold. The monitoring and review of the schemes being implemented needs to be done on a regular basis at the block level (BLBC) and district level(DCC) meetings PLP 2016-17 Tiruvallur District

Appendix A to Annexure I

BROAD SECTOR WISE PLP PROJECTIONS 2016-17

State : Tamil Nadu District : Tiruvallur

Sl. No. Particulars Amt Rs lakh

A Farm Credit Crop, Production, Maintenance and I Marketing 115946.00 Term Loan for agriculture and allied Ii activities 54988.89

Sub-Total 170934.89

B Agriculture Infrastructure 10773.33

C Ancillary Activities 18336.12 Credit potential for Agriculture (A+B+C) 200044.34

II Micro, Small and Medium enterprises 52456.02

III Export Credit 1800.00

IV Education 15930.00

V Housing 21330.00

VI Renewable Energy 2534.28

VII Others 11635.00 Social Infrastructure Involving Bank VIII Credit 1010.00

Total Priority Sector (I to VIII) 306739.64

PLP 2016-17 Tiruvallur District

Appendix B to Annexure I

SUMMARY OF SECTOR/SUB SECTOR WISE PLP PROJECTIONS - 2016-17 State: Tamil Nadu District: Tiruvallur

Sl. No. Particulars Amt Rs in lakh I Credit Potential for Agriculture A Farm Credit i Crop production, Maintenance and Marketing 115946.00 ii Water Resources 5452.86 iii Farm Mechanization 18413.35 iv Plantation & Horticulture (including Sericulture) 10701.15 v Forestry &Wasteland Development 2570.63 vi Animal Husbandry - Dairy 13188.70 vii Animal Husbandry - Poultry 736.06 viii Animal Husbandry - Sheep, Goat, Piggery etc 495.90 ix Fisheries (Marine, Inland, Brackish water) 2067.37 x Others – Bullock, Bullock cart etc. 1362.87 Sub Total 54988.89 Total Farm Credit 170934.89 B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market 8060.92 Yards, etc) ii Land Development, Soil Conservation, Watershed 808.34 development iii Others (Tissue Culture, Agri Bio Technology etc) 1904.07 Sub Total 10773.33 C Ancillary Activities i Food and Agro Processing 17826.12 ii Others (Loans to Cooperative Societies, Loans to MFIs for 510.00 on lending etc) Sub Total 18336.12 Total Agriculture(A+B+C) 200044.34 II Micro, Small and Medium Enterprises i MSME--Working Capital 21332.00 ii MSME--Investment Credit 31124.02 Total MSME 52456.02 III Export Credit 1800.00 IV Education 15930.00 V Housing 21330.00 VI Renewable Energy 2534.28 VII Others (Loans to SHGs/ JLGs, loans to distressed persons 11635.00 to prepay non-institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST) VIII Social Infrastructure involving Bank Credit 1010.00 TOTAL PRIORITY SECTOR 306739.64 District Profile

District - Tiruvallur State - Tamilnadu Division -

1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE Total Geographical Area (Sq.km) 3422 Agro-climatic Zone XI East Coast Plains & Hills Region III No. of Sub Divisions 3 No. of Blocks 14 Climate Tropical No. of Villages (Inhabited) 825 Soil Type Red loam,laterite,black, sandy ocastal, alluvial & red sandy No. of Village Panchayats 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER Total Area Reported 342243 Normal 2011-12 2012-13 2013-14 Actual Forest Land 19736 Rainfall [in mm] 1139.6 1315.4 1315.4 980.6 Barren & Uncultivable uses 13636 Variation from Normal 175.8 175.8 -159.0 Permanent Pasture and Grazing Land 8143 Availability of Ground Water Net annual recharge Net annual draft Balance Land under Miscellaneous Tree Crops 7458 [Ham] NA NA NA Cultivable Wasteland 7076 5. DISTRIBUTION OF LAND HOLDING Current Fallow 29935 Holding Area Classification of Holding Other Fallow 38446 Nos. % to Total Ha. % to Total Net Sown Area 108459 <= 1 Ha 185059 84 56295 43 Total or Gross Cropped Area 148369 >1 to <=2 Ha 22572 10 30743 24 Area Cultivated More than Once 39910 >2 Ha 11978 5 43308 33 Cropping Inensity [GCA/NSA] 1.37 Total 219609 100 130346 100 6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000] Cultivators 79 Category Total Male Female Rural Urban Of the above, Small/Marginal Farmers 74 Population 3727 1875 1852 1299 2428 Agricultural Labourers 159 Scheduled Caste 823 410 411 452 369 Workers engaged in Household Industries 39 Scheduled Tribe 47 24 23 35 12 Workers engaged in Allied Agro-activities Literacy rate 84 90 78 Other workers 573 BPL NA NA NA NA NA 8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households] Total Households 605 Having brick/stone/concrete houses NA Having electricity supply 534 Rural Households 279 Having source of drinking water 828 Having independent toilets 343 BPL Households 176 Having access to banking services 234 Having radio/tv sets 605 10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos] Villages Electrified 825 Anganwadis 1998 Dispensaries 14 Villages having Agriculture Power Supply NA Primary Health Centres 44 Hospitals 12 Villages having Post Offices 552 Primary Health Sub-Centres 303 Hospital Beds 873 Villages having Banking Facilities 526 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE Villages having Primary Schools 587 Fertiliser/Seed/Pesticide Outlets [Nos] 602 Agriculture Pumpsets[Nos] 40991 Villages having Primary Health Centres 52 Total N/P/K Consumption [Tonnes] 43067 Pumpsets Energised [Nos] 28628 Villages having Potable Water Supply 678 Certified Seeds Supplied [qtl] NA Agro Service Centres [Nos] 4 Villages connected with Paved Approach Roads 689 Pesticides Consumed [lts] 5478 Soil Testing Centres [Nos] 2 13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 629 Plantation nurseries [Nos] 3 Total Area Available for Irrigation (NIA + Fallow) 157207 Power Tillers [Nos] 342 Farmers' Clubs [Nos] Irrigation Potential Created 111249 Threshers/Cutters [Nos] 414 Krishi Vigyan Kendras[Nos] 1 Net Irrigated Area(Total area irrigated at least once) 110266 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING Area irrigated by Canals / Channels 4240 Rural/Urban Mandi/Haat [Nos] 12 Wholesale Market [Nos] 2 Area irrigated by Wells 63983 Length of Pucca Road [Km] 1655 Godown [Nos] 35 Area irrigated by Tanks 42012 Length of Railway Line [Km] 321 Godown Capacity[MT] 75000 Area irrigated by Other Sources 1846 Public Transport Vehicle [Nos] 312 Cold Storage [Nos] 6 Irrigation Potential Utilized (Gross Irrigated Area) 145269 Goods Transport Vehicle [Nos] 30297 Cold Store Capacity[MT] 16837 15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS Type of Processing Activity No of units Cap.[MT] 2012-13 2012-13 Avg. Yield Crop Food (Rice/Flour/Dal/Oil/Tea/Coffee) 214 NA Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) [Kg/Ha] Sugarcane (Gur/Khandsari/Sugar) NA NA Paddy 78336 250209 78337 300455 333 Fruit (Pulp/Juice/Fruit drink) 3 NA Millets 476 373 478 730 751 Spices (Masala Powders/Pastes) NA NA Pulses 8270 3910 8844 5849 2428 Dry-fruit (Cashew/Almond/Raisins) NA NA Groundnut 1023 36400 1023 46900 284 Cotton (Ginnining/Spinning/Weaving) NA NA Sugarcane (in canes) 5897 636876 7669 746013 9 Milk (Chilling/Cooling/Processing) NA NA Vegetables 680 32012 680 32012 4709 Meat (Chicken/Motton/Pork/Dryfish) NA NA Animal feed (Cattle/Poultry/Fishmeal) NA NA Production of Cotton(lint), Jute, Mesta & Sanhemp are in Bales(177.8 kg per bale in India) 17. ANIMAL POPULATION AS PER CENSUS 2010 tentative 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES [in '000] Category of animal Total Male Female Veterinary Hospitals/Dispensaries [Nos] 42 Animal Markets [Nos] 1 Cattle - Cross bred NA NA Disease Diagnostic Centres [Nos] Milk Collection Centres [Nos] 324 Nil 11 Cattle - Indigenous NA NA Artificial Insemination Centers [Nos] 126 Fishermen Societies [Nos] 181 Buffaloes 194 NA NA Animal Breeding Farms [Nos] 2 Fish seed farms [Nos] 1 Sheep - Cross bred NA NA Animal Husbandry Tng Centres [Nos] 1 Fish Markets [Nos] 3 93 Sheep - Indigenous NA NA Dairy Cooperative Societies [Nos] 70 Poultry hatcheries [Nos] 1 Goat 321 NA NA Improved Fodder Farms [Nos] Nil Slaughter houses [Nos] 1 Pig - Cross bred NA NA 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY 7 Pig - Indigenous NA NA Fish Production [MT] (2012-13) 12286 Per cap avail. [gm/day] NA Horse/Donkey/Camel 6 NA NA Egg Production [Lakh Nos] 718 Per cap avail. [nos/p.a.] NA Poultry - Cross bred NA NA Milk Production [lakh lts] Per cap avail. [ml/day] 1105 379 NA Poultry - Indigenous NA NA Meat Production [MT] 1796 Per cap avail. [gm/day] NA

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

Tamil Nadu Lead Bank - Indian Bank District Tiruvallur State -

1. NETWORK & OUTREACH (As on 31/03/2015)

No. of No. of Branches No. of non-formal agencies assoiated Per Branch Outreach Agency Banks/Soc. Total Rural Semi-urban Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Households Commercial Banks 34 351 78 132 141 NA NA NA NA NA Regional Rural Bank 1 8 4 4 NA NA NA NA NA District Central Coop. Bank 1 21 6 9 6 NA NA NA NA NA Coop. Agr. & Rural Dev. Bank 1 10 5 5 NA NA NA NA NA Primary Agr. Coop. Society 122 NA NA NA NA NA Others 2 2 2 NA 2045 NA NA NA All Agencies 161 392 88 150 154 2045 2. DEPOSITS OUTSTANDING No. of accounts Amount of Deposit [Rs. lakh] Agency 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) Commercial Banks NA NA NA 1205716.04 1421779.71 1775593.83 24.9 96.8 Regional Rural Bank NA NA NA 3098.71 2614.98 7984.23 205.3 0.4 Cooperative Banks NA NA NA 57133.92 59340.58 50617.48 -14.7 2.8 Others NA NA NA 443.32 536.44 746.46 2.1 0.0 All Agencies 1266391.99 1484271.71 1834942.00 23.6 100.0 3. LOANS & ADVANCES OUTSTANDING No. of accounts Amount of Loan [Rs.lakh] Agency 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) Commercial Banks NA NA NA 885149.89 1192737.60 1324478.45 11.0 91.9 Regional Rural Bank NA NA NA 4311.87 6272.19 8922.64 42.3 0.6 Cooperative Banks NA NA NA 79500.82 110064.95 101555.59 -7.7 7.0 Others NA NA NA 6982.68 32254.09 5960.94 -81.5 0.4 All Agencies 975945.26 1341328.83 1440917.62 7.4 100.0 4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs) CD Ratio During 2013-14 Cumulative Agency Agency 31-Mar-13 31-Mar-14 31-Mar-15 Deposit Credit Deposit Credit Commercial Banks 73% 84% 75% Commercial Banks NA NA NA NA Regional Rural Bank 139% 240% 112% Regional Rural Bank NA NA NA NA Cooperative Banks 139% 185% 201% Cooperative Banks NA NA NA NA Others 1575% 6013% 799% Others NA NA NA NA All Agencies 77 90 79 All Agencies 6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015) Priority Sector Loans Loans to Agr. Sector Loans to Weaker Sections Loans under DRI Scheme Loans to Women

Agency Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total [Rs.lakh] Loans [Rs.lakh] Loans [Rs.lakh] Loans [Rs.lakh] Loans [Rs.lakh] Loans

Commercial Banks 874295.96 73.30 328921.35 27.58 171689.2 14.39 262.86 0.02 119255.94 10.00 Regional Rural Bank 7212.31 114.99 4720.26 75.26 4192.46 66.84 846.18 13.49 Cooperative Banks 16186.41 14.71 9524.10 8.65 6439.3 5.85 0.33 0.00 1370.20 1.24 Others 811.30 2.52 All Agencies 898505.98 62.36 343165.71 23.82 182320.96 12.65 263.19 0.03 121472.32 8.43 7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

2012-13 2013-14 2014-15 Average Agency Target Ach'ment [Rs. Target Ach'ment [Rs. Ach'ment [Rs. Ach[%] in last Ach'ment [%] Ach'ment [%] Target [Rs.lakh] Ach'ment [%] [Rs.lakh] lakh] [Rs.lakh] lakh] lakh] 3 years

Commercial Banks 157231 162512.68 103 189582.120 199410.13 105 214163.070 224335.83 105 104 Regional Rural Bank 1108 967.36 87.30 4705.320 5102.28 108 4597.280 2707.90 59 85 Cooperative Banks 29131 18291.40 62.79 20509.360 25836.23 126 20744.740 25953.86 125 105 Others 447 8065.37 928.360 2300.08 248 936.130 8689.82 928 392 All Agencies 187917.00 189836.81 101.02 215725 232648.72 108 240441.22 261687.41 109 106 8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

2012-13 2013-14 2014-15 Average Broad Sector Target Ach'ment [Rs. Target Ach'ment [Rs. Ach'ment [Rs. Ach[%] in last Ach'ment [%] Ach'ment [%] Target [Rs.lakh] Ach'ment [%] [Rs.lakh] lakh] [Rs.lakh] lakh] lakh] 3 years

Crop Loan 85309.98 84372.91 98.90 80162.57 110820.95 138.25 78087.55 129104.93 165.33 134.16 Term Loan (Agr) 17443.49 19639.38 113 56582.33 21405.44 37.83 74912.08 35766.14 47.74 66.05 Total Agri. Credit 102753.47 104012.29 101 136744.90 132226.39 96.70 152999.63 164871.07 107.76 101.89 Non-Farm Sector 29958.45 28019.83 94 41739.60 49019.30 117.44 44581.83 50957.49 114.30 108.42 Other Priority Sector 55205.08 57804.69 105 37240.72 51403.03 138.03 42859.76 45858.85 107.00 116.58 Total Priority Sector 187917.00 189836.81 101 215725.22 232648.72 107.84 240441.22 261687.41 108.84 105.90 9. RECOVERY POSITION

2012-13 2013-14 2014-15 Average Rec. Agency Demand [Rs. Recovery [Rs. Demand [Rs. Recovery [Rs. Demand [Rs. Recovery [Rs. [%] in last 3 Recovery [%] Recovery [%] Recovery [%] '000] '000] '000] '000] '000] '000] years

Commercial Banks NA NA NA NA NA NA Regional Rural Bank NA NA NA NA NA NA Cooperative Banks NA NA NA NA NA NA Others NA NA NA NA NA NA All Agencies

Sources : Lead Bank & SLBC