PLP 2016-17 Deogarh Executive Summary 1. District of Deogarh is situated in the Western region of the State having its Head Quarter at Deogarh. The district is located between 21o 11' -21 43" N Latitude and 84o 28'-85 15’ E Longitude. It is bounded by Sambalpur in the west, Sundargarh in the north and Angul in the south-east. The district has one sub-division, 3 blocks, 60 GPs and 711 inhabited villages and a municipal town. 2. The district is predominantly agriculture based having net sown area of around 66950 ha. About 34 % of the net sown area is irrigated. Despite continued fragmentation of land holdings, the core sector of the economy continues to be agriculture. The principal crops grown in the district are paddy, pulses, oilseeds, vegetables and water melon. The agro- climatic condition of the district is suitable for horticulture development. The district is famous for fruits like, Mango, Orange and litchi. 3. Sectors like goatery, dairy, fishery and agro-based and food processing industries have enough potential for development in the district. 4. The district has a network of 38 bank branches - 27 branches of Commercial Banks, 08 branches of Utkal Grameen Bank and 03 branches of Sambalpur District Central Cooperative Bank. 5. The ground level credit flow to Priority Sector increased from `9089.83 lakh in 2012-13 to `16346.21 lakh in 2014-15 registering a growth of 80% over last two years. The credit deployment to agriculture increased from `6830.25 lakh to `13029.39 lakh registering growth of 91 % during the same period. This shows the adoption of latest technology, orientation of farmers towards farm mechanisation and diversification of crops in the district. 6. The share of investment credit needs to be increased which will help in “accelerating the pace of capital formation in agriculture and allied sector”. Efforts are required to enhance the investment credit in the total portfolio of agricultural credit. Around 85% of the people directly or indirectly depend on agriculture. Small and marginal farmers constitute 83% of total farm families in the district. Irrigation is more critical for development of agriculture as only 34 % of net sown area have assured irrigation. Remaining parts depend on rainfall which is erratic and unpredictable. The district had achieved around 81% of the overall target under ACP during 2014-15 where the achievement under agriculture and allied sector was to the tune of 83 % of the target. The share of investment credit is only 13 % of total agriculture credit during 2014-15. Hence, there is a need to improve the credit flow to agriculture term loan sector by the banks. The CD ratio of the district remained at 39 % which is much below the mandated 60%. This is mainly due to non-achievement by the Commercial Banks. In PLP 2016-17, while assessing the exploitable potential that could be tapped with institutional credit during the reference year, some revisions have been made over the Base PLP projections for 2016-17. These revisions are required because of various factors like change in the scale of finance and unit costs, the pattern of Ground Level Credit flow, revision in priority sector lending by RBI, changing practices at the field and the prevailing infrastructure etc. 1 PLP 2016-17 Deogarh Accordingly, a financial projection of `28813.38 lakh has been made for 2016-17, including crop loan of `12080.64 lakh, agricultural term loan of `9079.95 lakh, MSME loan of `4244.89 lakh and other sectors to the tune of `3407.90 lakh which includes sectors like education, housing, renewable energy, others and social infrastructure. 7. Interventions of Government agencies for providing necessary infrastructural support and creating a conducive atmosphere for proper exploitation of latent potentials of the area as well as providing the required credit by bankers are essential to achieve the full potential. In order to exploit the potential under water resources, irrigation percentage has to be improved by making the defunct LI points and bore wells functional followed by energisation of pump-sets. Water harvesting structures have to be created/renovated in convergence with MGNREGS. Efforts may be made to popularise drip and sprinkler irrigation systems among the farmers. To promote, Plantation & Horticulture sector, construction of a cold storage as planned by the State Government may be expedited. With extension of milk route to Reamal and proposed installation of a bulk milk cooler at Kandhal, the farmers of these area need to be supported with credit for development of dairy sector in the district. SHGs in the district need to be encouraged for backyard poultry (Vanraj variety) for which the marketing tie up has to be established by DSMS. Goatery sector can be upscaled with timely guidance by the extension staff and early settlement of insurance claims. To make fish culture more remunerative, the department may popularise schemes like integrated fish culture i.e. polyculture of fish and prawn. Banks may adhere to seasonality in financing so as to enable the beneficiaries to complete the projects in time. Since MSME Sector provides maximum employment opportunities and the State Government has planned to establish a Mega Food Park in the district, training of unemployed youth and credit support from banks will develop economy of the district. SHGs in course of time have emerged as the most vibrant organisations under informal credit delivery system. District OLM cell has to strengthen the identified livelihood clusters in association with line departments for absorption of more credit by the SHGs. DSMS has to make suitable arrangements for marketing of SHG products. As water melon is produced plenty in Barkote block and orange is of high quality in Reamal block, their processing units may be financed by the banks. Similarly, to secure remunerative price to the onion growers of Reamal block, District Administration may establish an Onion Godown at Reamal on public private participation mode. They may also set up a cold storage at Deogarh for encouraging the farmers to take up horticulture crops like fruits and vegetables in a bigger way. 8. The infrastructure requirements for the district has been identified in consultation with District administration and implementing departments. Creation of more number of godowns, cold storages, onion storages, adequate and timely supply of fertilisers and seeds are some of critical infrastructures and interventions required for overall development of district's agricultural sector. 9. The potential estimated in different sectors will be realised with the coordinated approach of all stakeholders and convergence of their resources. In order to track the sectoral credit flow, SAMIS reporting system need to be reintroduced for better monitoring and review of ACP at BLBC and DCC meetings. Further, a comprehensive effective Financial Inclusion plan has to 2 PLP 2016-17 Deogarh be implemented within the time frame with special focus to cover Oral Lessees, Tenant Farmers and share croppers into Joint Liability Groups. 10. About 253 farmers clubs have been promoted by banks / NGOs in the district. They can act as catalysts of social and economic development in the district. There is an urgent need of proper networking between farmers’ clubs and agriculture scientists, voluntary agencies, line departments and extension service providers. 11. It has been proposed to implement area based schemes for Dairy, Goatery and Poultry in different blocks. There is a potential of 224 dairy units, 710 goatery units and 564 poultry units with aggregate bank loan of `1148.50 lakh. 12. In Deogarh district, the financial services are provided by 22 rural and 16 semi urban branches of Commercial Bank, RRB and Cooperative Banks. To provide banking facility at each GP, banks have been entrusted to open brick and mortar branch / USB /BC model there. Out of 60 GPs in the district, 17 GPs have bank branches and remaining 43 GPs have been allotted to different banks by SLBC. State Bank of India has engaged six CSPs to provide banking services. Under PMJDY, 11883 accounts have been opened by the bank branches in the district as on 31 March 2015. Besides, the banks are also extending social security schemes, viz., PMSBY, PMJJBY and APY to their customers. 3 PLP 2016-17 Deogarh Broad Sector-wise PLP Projections- 2016-17 (` Lakh) Sr. PLP Projections Particulars No. for 2016-17 A Farm Credit i Crop Production, Maintenance and Marketing 12080.64 ii Term Loan for agriculture and allied activities 7522.24 Sub Total 19602.88 B Agriculture Infrastructure 1135.71 C Ancillary Activities 422.00 I Credit Potential for Agriculture (A + B + C) 21160.59 II Micro, Small and Medium Enterprises 4244.89 III Export Credit 0.00 IV Education 408.00 V Housing 652.50 VI Renewable Energy 192.00 VII Others 2085.00 VIII Social Infrastructure involving bank credit-linked 70.40 Total Priority Sector (I to VIII) 28813.38 2.26% Projections (2016‐17) Agriculture 7.24% MSME 0.67% 1.42% 0.24% Export Credit 0.00% Education 14.73% Housing 73.44% Renewable Energy Others Social Infrastructure involving Bank Credit 4 PLP 2016-17 Deogarh Summary of Sector / Sub-Sector wise PLP Projections- 2016-17 (` lakh) Sr. No. Particulars PLP Projections - 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 12080.64 ii Water Resources 944.47 iii Farm Mechanization 2509.03 iv Plantation and Horticulture 1101.72 v Forestry and Wasteland Development 234.63 vi Animal Husbandry – Dairy 627.05