Executive Summary The credit planning is very important in agriculture as a large section of population is dependent on it for its livelihood. As per the guidelines of the Reserve Bank of India (RBI), the Potential Linked Credit Plans (PLPs) prepared by National Bank for Agriculture and Rural Development (NABARD) through consultative approach forms the base for preparation of Annual Credit Plans (ACP) for the banks in a district. This document has been prepared accordingly by taking into account the current developments, especially revision in priority sector guidelines and policy initiatives of Government. NABARD has redesigned the Potential Linked Credit Plans for all the districts in the country to make it more meaningful link between development planning and credit planning.The theme for the PLP 2015-16 shall be “Accelerating the pace of capital formation in agriculture and allied sector” The exploitable potential that could be tapped with institutional credit during the reference year i.e. 2016-17 is mapped in the PLP document. Adilabad district is located in the northern end of the state bordering the state of Maharashtra. The total geographical area of the district is 16105 sq.kms. The district is situated between 77.46 and 80.0 degrees of eastern longitude and 18.40 and 19.56 degrees of northern latitude. The district is bounded on north by Yeotmal, on the east by Chanda district, on the west by Nanded district of Maharashtra State and on the south by Karimnagar and Nizamabad districts. The district headquarters, Adilabad, is situated at 311 kms from the State Capital.The district is divided into 5 Revenue divisions. It has 52 mandals and 10 Assembly Constituencies.About 43% of the geographical area of the district is covered by the forest. As per the census 2011, the population of the district is 27.41 lakh. 35% of the population of the district belongs to SC/ST. The average annual rainfall of the district is 1157 mm. The major soil types are Red soils, black soils and loamy soils. 80% of the rainfall is received through South West Monsoon and remaining 20% through North East Monsoon. Agriculture is the main stay of the economy of Adilabad district. The main crops grown in the district are Rice, Maize, Cotton and Soyabean. The gross cropped area of the district is 654000 ha and the gross irrigated area is 210624 ha. Adilabad has a banking network with 280 branches(Rural-158,Semi-Urban-122). The district has a network of 155 branches of Commercial Banks, 101 branches of Telangana Grameena Bank, 19 branches of Adilabad District Central Cooperative Bank, and 77 Primary Agricultural Cooperative Societies. Non formal agencies associated with dispensation of credit viz. SHGs are about 37350. The banks could achieve 85% of the targets set under annual credit plans during the year 2014-15 During the year 2014-15 the credit flow under priority sector was `2726.38crore as against the target of ` 3205.64 crore. The GLC rose from `1179.06 crore during 2012-13 to ` 1935.04 crore during 2013- 14 and further to ` 2726.38 crore during 2014-15. Credit flow under crop loans was ` 1765.08crore as against the target of ` 2228.60 crore. The achievement under term loans (` 457.01 crore) is exceeded the DCP target (` 195.11 crore) clearly showing the importance given to investment activities. During FY 2013-14 and FY 2014-15, deposits increased by 29% and 105 % over the respective previous years. The loan outstanding as on 31.03.2015 was marginally increased by 3%. The overall CD ratio had decreased from 101.91% in FY 2013-14 to 88.33 % in FY 2014-15. PLP Projections 2016-17 The total credit potential for 2016-17, underpriority sector for Adilabad district is estimated at ` 5277 crore registering a growth rate of 31 % over the PLP projection and 23% over the ACP target(revised by SLBC) for the year 2015-16. 25% of the credit potential is estimated for agriculture term lending and allied activities The crop loans have been projected at `3250 crore, term investment for Agriculture and Allied Activities at ` 1119 crore, MSME at `444.34 crore. Other Priority Sector ` 464 crore (i.e inclusive of ` 110.00 crore for education,` 114 crore for Housing) 1 PLP 2016-17 | Adilabad Area based schemes Considering large number of small and marginal farmers and people below the poverty line and as also the extensiveness of agriculture and rural development there is a need for promoting single purpose small scheme on a cluster basis which was aggregated into area development scheme. Area development schemes on dairy, sheep have been prepared in consultation with line departments & Banks. These schemes may be encouraged by banks in the identified cluster which would also facilitate planning and execution of infrastructure facilities viz., backward and forward linkages for full realization of the benefits of the scheme. Thrust Areas Thrust areas for 2016-17 are JLG / SHG financing, financing of post-harvest infrastructure, mini processing units, Producer Organizations, financing against NWRs, area based schemes etc Conclusion There is a need for a coordinated approach for enhancing capital formation, strengthening of SAMIS reporting system, better monitoring and review at JMLBC, DCC meetings, effective implementation of financial inclusion plans including coverage of Oral Lessees, Tenant Farmers into Joint Liability Groups, to take timely and corrective measures for accelerating the pace of capital formation in Agriculture and allied activities. 2 PLP 2016-17 | Adilabad Appendix A to Annexure 1 Broad Sector wise PLP projections 2016-17 (` lakh) Broad Sector wise PLP projections – 2 01 6 17- Sr No. Particulars PLP Projections 2016-17 A Farm Credit 1 Crop Production Maintenance and Marketing 324978.35 2 Term Loan for agriculture and allied activities 103536.71 Sub total 428515.06 B Agriculture Infrastructure 5373.37 C Ancillary activities 3007.60 i Credit Potential for agriculture (A+B+C) 436896.03 ii Micro Small and Medium Enterprises 44434.54 iii Export credit 0.00 iv Education 11000.00 v Housing 11475.00 vi Renewable Energy 440.04 vii Others 19538.85 viii Social Infrastructure involving bank credit 3976.23 Total Priority Sector (I to VIII) 527760.68 3 PLP 2016-17 | Adilabad Appendix B to Annexure 1 Summary of Sector / Sub - sector wise PLP Projections -2016-17 (` lakh) Sr. PLP Projections Particulars No. 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 324978.35 ii Water Resources 5274.70 iii Farm Mechanisation 16710.58 iv Plantation & Horticulture(including Sericulture) 3554.80 v Forestry & Waste Land Development 691.08 - vi Animal Husbandry Dairy 7053.23 - vii Animal Husbandry Poultry 1207.40 - viii Animal Husbandry Sheep / Goat / Piggery etc. 2317.55 ix Fisheries ( Marine,In , Brackish water) 546.14 land x Others (Bullock, Bullock Carts etc.) 66181.22 Sub Total 428515.06 B Agriculture Infrastructure Construction of Storage facilities ( Warehouses,Market i 1365.00 Yards,Godowns, Silos, Cold Storage) ii Land Development, Soil Conservation,Watershed development 1512.70 Others (Tissue Culture, Agro Bio-technology, Seed iii 2495.67 production,Bio-pesticides/fertilizers, Vermin Composting) Sub Total 5373.37 C Ancillary activities i Food & Agro Processing 2767.60 4 PLP 2016-17 | Adilabad Others (Loan to Coop. Socities of Farmers for disposing of their ii produce, Agri Clinics/ Agri Buisness Centres, Loans to PACs / 240.00 FSS/ LAMPs, Loans to MFIs for onlending Sub Total 3007.60 Total Agriculture 436896.03 II Micro, Small and Medium Enterprises i MSME - Working Capital 10254.12 ii MSME - Investment Credit 34180.42 Total MSME 44434.54 iii Export Credit@ 0.00 iv Education 11000.00 v Housing 11475.00 vi Renewable Energy 440.04 vii Others 19538.85 vii Social Infrastructure involving Bank Credit 3976.23 Total Priority Sector 527760.68 @ credit dispensed at port centre 5 PLP 2016-17 | Adilabad DISTRICT PROFILE The district derives its name Adilabad from its headquarters town which was named after Adil Shah, the ruler of Bijapur. The total geographical area of the district is 16105 sq.kms. The district is situated between 77.46 and 80.0 degrees of eastern longitude and 18.40 and 19.56 degrees of northern latitude. The district is bounded on north by Yeotmal, on the east by Chanda district, on the west by Nanded district of Maharashtra State and on the south by Karimnagar and Nizamabad districts. The district headquarters, Adilabad, is situated at 311 kms from the State Capital. The district is divided into 5 Revenue divisions. It has 52 mandals and 10 Assembly Constituencies.There are 866 Grama Panchayats in the district, out of which 27 are Notified and remaining 839 are Non-Notified. The GDDP of the district at constant prices (2004-2005) is estimated at ` 10837crore during the year 2013- 14.The literacy rate is 61.01% as against the State literacy rate at 66.5% .17 APMCs are functioning in the district and are well connected with Road network. Adilabad district is famous for the Goddess Saraswati temple situated at “Basar” town in Mudhole mandal. The Nirmal toys and paintings made at Nirmal town of the district by a group of artisans are very popular. The district is also known for the Kuntala and Pochera waterfalls located in Boath mandal. The other prominent feature of the district is the tribal jatra celebrated during January / February of each year in Keslapur village of Utnoor mandal. Agriculture is the main activity of the district. Besides agriculture, the people of eastern region of the district depend on industry for employment. A large chunk of tribal population, besides agriculture, depend upon minor forest produce for their livelihood.