PLP 2016-17 Dimapur District EXECUTIVE SUMMARY The Potential Linked Credit Plan (PLP) of Dimapur district for the year 2016-17 has been prepared with the theme of “Accelerating the pace of capital formation in agriculture and allied sector”. The PLP projectections are made under priority sector covering Agriculture (Farm Credit, Agriculture Infrastructure and Ancillary Activities), MSME, Education, Housing, Renewable Energy and Others with emphasis on capital formation under Agriculture & Allied sector in tune with the theme. The PLP seeks to present a comprehensive assessment of potentials available under various sectors of the economy, the credit requirements for exploiting the potentials, available infrastructure as well as credit absorption capacity of the borrowers. It also show-cases the non-credit inputs required and aspects that require the attention of the Government and other agencies involved in the development process. This document will also attempt to provide an insight on the potential for development in different sectors of the rural economy, serve as a road map to banks for extending credit to important sectors / sub sectors / activities in the district and for Government departments including various developmental agencies to provide necessary infrastructure and linkage support. The PLP also converge Government plans with that of banks, thereby, facilitating increased credit flow and overall development. The PLP projections given in Annexure I of this document will form the basis for banks in preparing the Annual Credit Plan for the year 2016-17. Dimapur, the 8th district of Nagaland established in December 1997, is bound by Assam on its North and West, Kohima on the East and Peren District in the South. The district comprises of six rural development blocks with an area of 927 Square kilometers. Dimapur town is the commercial hub of the state and is the magnet around which the economic and developmental activities of the district are centered; it is one of the fastest developing township of the North East. The business of the town can trace its history to British times. The town is also a gateway to Nagaland and Manipur state. It is an important rail head and also has an airport. The performance of banks vis-a-vis Annual Credit Plan (ACP) is not satisfactory. During the years 2013-14 and 2014-15, the banks in Dimapur district had achieved 77 % and 45 % respectively of the allocated targets under Priority Sector. The achievement vis-à-vis target under Crop Loan during the year 2014-15 was 326% and and the percentage share of Crop Loan to GLC under Priority Sector during the same period was 15 %. The break-up of sub-sector and activity-wise data under agriculture and allied sectors is not available. However, on a perusal of the broad-sector wise data, it is found that the achievement during the year 2014-15 was 32% of the target and and the percentage share of Agri Term Loan to GLC under Priority Sector during the same period was 14 %. The achievement vis-à-vis target under Micro and Small Enterprises (MSE) and Other Priority Sectors (OPS) during the year 2014-15 was 45% and 37% respectively. The percentage share of MSE and OPS to GLC under Priority Sector during the same period was 31% and 39% respectively. The Reserve Bank of India (RBI) vide their circular No.FIDD.CO.Plan.BC.54 /04.09.01/2014-2015 dated 23rd April 2015 has revised and classified Priority Sector Lending (PSL) norms 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. Accordingly, in view of the changes brought out by RBI, the composition and content of PLP document have also been revised so as to align with the revised guidelines on PSL. The PLP of Dimapur district has estimated an institutional credit potential of Rs. 28775.74 lakh for the year 2016-17 out of which credit potential for Agriculture (including Agriculture Infrastructure) has been estimated at Rs. 10101.94 lakh. Credit potential for Ancillary activities (including others) at Rs. 346.50 lakh, Micro, Small and Medium Enterprises at Rs. 7387.50 lakh, Export Credit at Rs. 480.48 lakh, Education at Rs. 3720.00 lakh, Housing at Rs. 5806.40 lakh, Renewable Energy at Rs. 305.52 lakh, Social Infrastructures at Rs. 274.40 lakh, and Others (SHGs, JLGs, etc) at Rs. 353.00 lakh. For 01 PLP 2016-17 Dimapur District arriving at the potentials, the latest Scale of Finance (SOF) and Unit Cost (UC) have been followed. Hence, it will be seen that suitable upward revision has been made in the Base PLP projections for the year 2016-17. The above mentioned potentials could be effectively utilized only with investment in rural infrastructure as it will create new economic opportunities and activities. Here, GoN needs to identify and commercialize infrastructure projects through Private Public Partnership (PPP) covering power, transportation and information technology. Also, projects which are commercially viable may be developed through private sector investment. The challenges faced by our country in securing food as well as nutritional security to a fast growing population need an integrated approach for livestock and vegetable farming. Hence, dairy development and development of kitchen garden for raising vegetables through group modes viz. Joint Liability Group (JLG) and Self Help Group (SHG) have been identified as two Area Development Schemes in this document for implementation with support from government departments / KVK and banks. This co-ordinated approach will encourage and enhance capital formation in agriculture, thereby, leading to sustainable development. In Annexure – I (enclosed), the above potentials have been segregated Block wise. Broad Sector-wise PLP Projections for the year 2016-17 Name of the district: Dimapur State: Nagaland (Rs Lakh) Sr. Particulars PLP Projections 2016-17 A Farm Credit i Crop Production, Maintenance and Marketing 1946.40 ii Term Loan for agriculture and allied activities 7892.02 Sub Total 9838.42 B Agriculture Infrastructure 263.52 C Ancillary activities 346.50 I Credit Potential for Agriculture (A+B+C) 10448.44 II Micro, Small and Medium Enterprises 7387.50 III Export Credit 480.48 IV Education 3720.00 V Housing 5806.40 VI Renewable Energy 305.52 VII Others (SHG, JLGs, etc) 353.00 VIII Social Infrastructure involving bank credit 274.40 Total Priority Sector (I to VIII) 28775.74 02 PLP 2016-17 Dimapur District Sector-wise PLP projections of Dimapur district for the year 2016-17 03 PLP 2016-17 Dimapur District Summary of Sector/Sub-sectorwise PLP Projections for the year 2016-17 (Rs. in Lakh) Sr. No. Particulars PLP Projections 2016-17 I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 1946.40 ii Water Resources 244.12 iii Farm Mechanisation 298.48 iv Plantation and Horticulture (including sericulture) 2656.11 v Forestry and Waste Land Development 156.46 vi Animal Husbandry – Dairy 404.40 vii Animal Husbandry – Poultry 1370.64 viii Animal Husbandry – Sheep, Goat, Piggery, etc. 2447.96 ix Fisheries (Marine, Inland, Brackish water) 313.85 Sub Total 9838.42 B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market yards, 105.00 Godowns, Silos, Cold storage units/ Cold storage chains) ii Land development, Soil conservation, Watershed development 70.20 iii Others (Tissue culture, Agri bio-technology, Seed production, Bio 88.32 pesticides/ fertilizers, Vermin composting) Sub Total 263.52 C Ancillary activities i Food and Agro processing 346.50 ii Others - Loans to MFIs for onlending to agriculture 0.00 Sub Total 346.50 Total Agriculture II Micro, Small and Medium Enterprises i MSME – Working capital 2400.00 ii MSME – Investment credit 4987.50 Total MSME 7387.50 III Export Credit 480.48 IV Education 3720.00 V Housing 5806.40 VI Renewable Energy 305.52 VII Others – 353.00 (SHG, JLGs, Overdraft facility to PMJDY account holders ) VIII Social Infrastructure involving bank credit 274.40 Total Priority Secor 28775.74 04 PLP 2016-17 Dimapur District 05 12 PLP 2016-17 Dimapur District DISTRICT PROFILE OF DIMAPUR DISTRICT Dimapur the eighth district of Nagaland, was formed out of the Dimapur sub-division and Niuland sub-division of the then undivided Kohima district in December 1997. It is considered as the ‘gateway’ to Nagaland and holds the distinction of being the only district in Nagaland to be connected by both airways and railways. Being the commercial hub it is one of the busiest districts as well as home to the biggest town in Nagaland. The main factor contributing to large increase in population of the district is migration from other parts of the state. Dimapur can be considered as a ‘land of opportunities’ with favourable topography and ample connectivity. It has the highest urban population at 52.2 percent as compared to the other districts of the state. As per the Census of 2011, Dimapur district has a working population of 39.95 percent engaged as cultivators, daily wage earners, government service, business, and others and the vibrancy of the working force is well complemented by various schemes. Dimapur holds the distinction of being the district with the highest number of private enterprises which makes Dimapur the hub of trade and commerce. The district has a total area of 92700 hectares out of which 68699 hectares comes under cultivable land. Dimapur is marked by hot summers and abundant rainfall which favors cultivation of rice, making it the major crop of the district. Production of maize is also quite high in the district along with high yield of pulses, oilseeds and other commercial crops.