1 EXECUTIVE SUMMARY the PLP for 2016-17 Has Been
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PLP : 2016-17 Yavatmal District EXECUTIVE SUMMARY The PLP for 2016-17 has been prepared with reference to the Base PLP - 2012-17 and based on a realistic sectoral analysis. RBI has revised the Priority Sector Lending (PSL) norms vide circular dated 23 April 2015. 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 sub-sectors and activities covered under each broad sector have also undergone revision. 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. 1. Theme of the PLP – 2016-17 Theme for PLP 2016-17 continued to be “Accelerating the pace of capital formation in agriculture and allied sector”. Importance of capital formation in agriculture and allied sector for increasing the production and productivity and also income level of rural people need not be emphasized. It is, however, observed that capital formation in agriculture is not taking place to a desired level. A growth of at least 25% is expected in disbursement of agriculture term loan. 2. Specific characteristics of Yavatmal district Yavatmal district is an agrarian district in the Vidarbha region of Maharashtra. The total population of the district as per the 2011 census is 27.75 lakh, which showed growth of 12.90% over that of 2001 census. The district accounts for 2.47 % of state population. With per capita income at ` 66,287 as compared ` 1,17,091 for the state during 2013-14, the district occupied 30th place in the state and last place in Amravati Division. The GDDP of the district at current prices was ` 20,481 crore (1.36% of state GSDP) during 2013-14. Average annual rainfall of the district is 911 mm. The gross area under cultivation during the year 2014-15 was 10.02 lakh ha. Of this, 0.55 lakh ha i.e. 5.49% of gross cropped area was under irrigation. The cropping intensity was 114% during 2014- 15. Main crops grown are cotton, soyabean, tur & other pulses, jowar and oilseeds. Soyabean has emerged as a diversified crop. Large scale dependence on cotton cultivation by farmers over the years, low level of irrigation, lack of diversification, low farming income and indebtedness have resulted in extreme steps like suicides by farming community. However, the implementation of the packages announced by the Hon'ble PM and the State Government involving various developmental schemes, Debt Waiver and Debt Relief schemes by GoI and GoM along with credit expansion by banks are addressing these issues. 3. Credit flow for last 3 years During last 3 years, average achievement of overall ACP targets by banks was 82%. Credit flow for priority sector was ` 1663.84 crore in 2012-13 (92% of ACP); ` 1730.99 crore in 2013-14 (75 % of ACP) and ` 2024.89 crore in 2014-15 (78% of ACP). However, crop loan disbursement has stagnated to around ` 1000 crore in past few years. Though disbursement under agriculture term loan jumped to ` 254 crore in 2012-13, it came down to ` 121 crore in 2013-14 much below the ACP target but then increased to ` 203.41 crore during 2014-15. Achievements under non-farm sector have been more than 100% of ACP target during 2012-13 to 2014-15. Disbursement for OPS also grew from ` 365 crore in 2012-13 to ` 454 crore in 2013-14 and ` 569 crore in 2014-15. For the year 1 PLP : 2016-17 Yavatmal District 2015-16, total ACP target of ` 2828 crore is assigned to banks which comprise of ` 1704 crore of crop loan, ` 444 crore for ATL, ` 144 crore for MSME/ NFS and ` 535 crore under OPS. 4. Banking network and performance Yavatmal district has a network of 254 bank branches covering all its 16 blocks with 160 Rural Branches and 94 Semi-urban branches. Yavatmal DCCB has largest network with 89 branches while VKGB has 25 branches. Commercial Banks altogether have 140 branches in the district including 13 branches of Private Sector Banks. CBs accounted for 65% share in total deposits while share of DCCB and VKGB was 29% and 6% respectively. In loan outstanding, share of CBs, DCCB and VKGB was 62%, 34% & 4% respectively. As on 31.03.2015, overall CD ratio of the district was 80% but for VKGB it was 52%. 5. Potential projections for 2016-17 For the year 2016-17, total projection of ` 3047 crore has been made for the district. Projection for crop loan has been worked out as ` 1790.51 crore. Aggregate projection for ATL is arrived at ` 403.08 crore. Among the major sectors under ATL are Water Resources (` 125 crore), Farm Mechanisation (` 114 crore), Dairy (` 63 crore) and Goatery (` 46 crore). Projection for Agri infrastructure including storage facilities is assessed as ` 60 crore. Under Ancillary activities including Food/ Agro processing, projection is ` 29 crore. Projection for MSME sector has been enhanced to ` 141 crore considering the increasing awareness and interest, particularly among educated youth, to set up MSME units and good support from banks for the sector. Projections for export, education and housing are assessed as ` 3.50 crore, ` 69 crore and ` 117 crore respectively whereas for Renewable energy it is ` 1.95 crore. Projection under `Others` which include loans for SHG/JLG, PMJDY, Transport operators, Retail trade, Professionals, etc. is arrived at ` 422 crore. For social infrastructure involving bank credit, projection of ` 10 crore is made. 6. Major constraints/ suggested action points i. Crop Loan : The extension machinery, input supply mechanism and market support need further strengthening. Farmers need to be educated for taking up mixed crops/ crop rotation and be organized in Producers’ Group. Banks should increasingly finance for drip & sprinkler sets, shadenets, warehouses, etc. and also cover landless farmers through JLGs. ii. Minor Irrigation (MI)/ Farm Mechanisation (FM) : Individual LIS should be preferred over cooperative LIS to exploit surface water potential. Model structures for rainwater harvesting may be introduced to conserve water. Use of small tractors (25/35 HP), low cost threshers should be encouraged for small farm operations. Banks should meet increasing demand of credit for capital formation in agriculture. iii. Plantation and Horticulture : Agriculture Dept may encourage use of shadenet and promote floriculture as a commercial activity. A dedicated wing for horticulture with specialized technical staff need to be created in Agri. Dept. iv. Animal Husbandry: Availability of good quality milch animals may be ensured by setting up of breeding farm in the district. Milk procurement and marketing infrastructure needs to be improved and closed dairy societies should be revived. Commercial cultivation of fodder may be encouraged. Banks should adopt area based approach for financing dairy in clusters with backward and forward linkages. For 2 PLP : 2016-17 Yavatmal District poultry development, a hatchery may be set up for better availability of DOC. Further, backyard poultry should be promoted through SHGs/ JLGs. Goatery is the most popular small animal activity. Absence of goat breeding farm and inadequate pastures/ fodder development are major constraints which need to be addressed. v. Storage Facilities : Scientific assessment of taluka-wise storage capacity required should be carried out. Negotiable Warehouse Receipt System may be promoted. APMCs should develop facilities for grading, processing and marketing of agri produce. vi. Land Development : Farmers may be made aware of the benefits of land development and improved technology/ farming practices. Farm ponds and other water harvesting structures would enable the farmers to take suitable second crop. vii. MSME : Single window system for various licences and clearances should be adopted for setting up of enterprises. Matured SHGs, rural youth trained by R’SETI/ MCED/MITCON should be supported for establishing tiny industries. Food/ Agro processing units like Dal mills, Flour mills, etc. may be encouraged through Farmers’ Groups, SHGs, entrepreneurs, etc. Banks may ensure timely and adequate credit / working capital for new as well as existing units. viii. Other Priority Sector and Micro Finance : There is increased demand for consumer & educational loans and also conducive environment for small sector service providers. Credit to rural students for undergoing technical courses in polytechnic colleges should be made hassle free to address the growing demand for technicians/ skilled workers in time to come. Yavatmal is one of the major districts for SHG credit linkage in the state. More emphasis is needed on activities like repeat finance, support for micro enterprises, formation of SHG federation, and promotion/ credit linking of Joint Liability Groups (JLGs). 7. Area Based Schemes Two area based schemes have been formulated for implementation in the district. First schemes is for ‘Dairy Development in 43 villages of Umarkhed, Kalamb and Babhulgaon blocks’. Under the scheme, 11 clusters of dairy with 675 units each of 2 milch animals will be promoted. TFO of the scheme is arrived at ` 742.50 lakh and bank loan would be ` 631.12 lakh. The second scheme is for ‘Goatery with backyard poultry in 60 villages of Pusad, Digras, Ghatanji and Ner blocks’. It envisages promotion of 15 clusters with 1200 units of 10 goats coupled with 20 poultry birds in each unit. It involves financial outlay of ` 720 lakh and bank loan of ` 612 lakh. Both these schemes aim at increasing production of milk and meat in the district and provide additional source of income to rural poor. 8. New Initiatives and Thrust Areas Yavatmal is one of the districts wherein banks have to provide loans at 4% to eligible women SHGs under NRLM.