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EXECUTIVE SUMMARY

The theme for this year’s State Focus Paper is “Accelerating the pace of capital formation

in agriculture and allied sector” so as to make it a sustainable and profitable enterprise for

the farmers. Capital formation in agriculture through public sector or private corporate

sector contribute immensely to the agriculture production process. However, when

compared with the overall capital formation in the economy (about 40 % of GDP), capital

formation in Agriculture sector is much lower. The share of capital formation in

agriculture (GCFA) to GDP has stagnated at a level below 3 percent.

The share of investment credit which is a major driver of capital formation has declined

from 37% of total agriculture credit in 1999-2000 to 22% in 2012-13. The same needs to

be reversed. While better infrastructure helps in lowering cost of production, greater

share of long term credit in total agriculture credit will give sustainability to farmers’

income. Keeping the theme in view, out of total projection made under agricultural credit

at ` 13999.07 crore, an amount of ` 5015.37 crore (36%) has been earmarked for capital

formation in agriculture & allied activities including agri-infrastructure & ancillaries. `

8983.70 crore has been assessed under Crop production, Maintenance and Marketing.

The total credit potential has been estimated at ` 23182.15 crore which is 10.5% more

than the previous year’s projection of `20978.81 crore.

On an all India basis, the GCF in Agriculture and allied sectors as a percentage to Agri-

GDP improved from 13.5% in 2004-05 to 20.17% in 2010-11 to 21.2% in 2012-13 at

constant prices. This growth is led by private sector investment which ranged between

10% and 17% during 10th

and 11th

plan period. The growth in Agriculture has been affected

by lesser share of public investment which ranged between 2 % to maximum 3.7% during

the above mentioned plan periods. On an average, contribution of public sector and

private sector towards Agri-capital formation is hovering around 3% & 17% of agri-GDP

respectively. However, in Chhattisgarh agricultural capital formation through public

investment has remained significant and crucial in the backdrop of low level of term

lending averaging around ` 1300 crore which amounts to only 3.25% of State Agri-GDP.

A glimpse of State economy During 2014-15, the contribution of the Primary sector is 30% (` 0.64 lakh cr) out of

which Agriculture including Animal Husbandry and Pisciculture contributed 18% (` 0.38

lakh cr). The contribution of the Secondary sector is also 30% (` 0.62 lakh cr). The largest

share is from the Services sector which contributed 40% (` 0.84 lakh cr). Thus, the GSDP

stood at ` 2.10 lakh crore at current prices.

Brief coverage on specific characteristics of state

Chhattisgarh is India’s tenth largest state accounting for 4.19% of geographical

area with a population of 2.55 crore (2011 Census) which constitutes 2.15% of the

population of India. The state produced on an average 3% of food grains on all

India basis. The State has 27 districts covering 146 Blocks, of which 85 blocks are

predominantly tribal inhabited.

Chhattisgarh has varied topography - high mountains, plateaus, hills and plains. It

has about 44% forest coverage which provides forest based livelihood support to

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the tribal populace. The State has 3 Agro-climatic Zones, viz. Bastar Plateau (7

districts), Chhattisgarh Plains (15 districts) and Northern Hilly Region (5

districts).

Agriculture continues to be the mainstay of livelihood of about 80% of state’s

population. Even through the agriculture sector is characterized by rain fed

farming the farmers of Chhattisgarh plains have been able to manage production

fluctuations through on farm water management programs and canal irrigation.

However, 12 districts of Bastar Plateau and Northern Hills, which covers 31% of

total Net Sown Area mostly rain-fed agriculture is practiced due to absence of

suitable on farm water management programs. The area under irrigation in 7

districts of Bastar plateau is only 5%, the same is only 11% in 5 Northern Hills

districts. Paddy and Maize are major cereal kharif crops and Arhar and Soyabean

are major Kharif pulse and oilseed crops respectively. Similarly Rabi Paddy and

Wheat are major Rabi cereal crops whereas Gram and Tiwra are major Rabi pulses

crops and Mustard is major Rabi oilseeds crop.

Chhattisgarh has made remarkable progress in food grains production and has

been conferred with “Krishi Karman Award” successively three times under “Rice

Category”. The State currently produces paddy in the range of 100-120 lakh MT

and contributes substantially to the Central pool thereby ensuring food security of

the nation. The state has also bagged another “ Krishi Karman Award” in pulses

production during the year 2014-15 to the extent of 6.55 lakh MT.

The state ecosystem and biodiversity are extremely rich in herbs and non-wood

forest produces. Chhattisgarh has forest area of 59772 sq. kms which is 43.85 %

(12.26% of the country) of the total geographical area of 137898 sqkms. The state

has promoted an intensive JFM programme for scientific harvest of forest

produce with a view to extending sustainability as well as livelihood support to

villagers dependent upon forest produces. Chhattisgarh is a leading producer of

lac, and minor forest produce like harra & katha. Under Joint Forest

Management, 11185 villages situated within five kilometers from the forest areas

out of 19720 have 7887 JFMs which are managing a whopping 55% i.e.33190

sq.kms of forest areas of the state. Further, the state has issued 3.37 lakh forest

rights certificates covering 2.58 lakh ha of agriculture land.

Chhattisgarh was declared as herbal state on 4.7.2001. As per the policy framed,

alongside establishment of Ayurvedic hospitals, emphasis has also been given on

cultivation of medicinal plants. Policy also stresses on local participation for

strengthening of local economy involving the sector. It is estimated that the state

has more than 1200 species of medicinal plants. Government also plans to set up a

Herbal Medicinal Park in Bagoud village, Kurud, Dhamtari near New Raipur on

about 154 acres of land aiming at promotion and processing of medicinal and

aromatic plants.

Chhattisgarh produces almost 30% kosa silk and is having the highest share on all

India basis. The eco-race named Raily is found in Chhattisgarh. Since

Chhattisgarh is one of the leading producers of kosa silk and has potential to be a

strong player in apparel industry, the Chhattisgarh State Industrial Development

Corporation is establishing an apparel park on about 20 ha. for development of

textile and textile-based industries to attract new investments.

Chhattisgarh offers as many as 125 tourist destinations including country’s biggest

waterfall at Chitrakoot nicknamed as Niagra of India. With 12% share of India’s

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forests including 03 National Parks and 11 wildlife sanctuaries Chhattisgarh is best

suited for eco-tourism.

The state produces 100% of tin, 15% of steel, 15% of cement, 30% of aluminium

and 27% of sponge iron of the country.

The state has a unique and evolving ICT based PDS system which has been praised

by Hon’ble Supreme Court. Despite being a leading state in Social and

Developmental expenditures as a percentage to GSDP, its fiscal management has

been acclaimed by RBI in their study reports successively. It has been awarded e-

Governance Portal Jury Award under CHOiCE for its remarkable progress in

making available various government services online to its populace. It has been

awarded for its innovative implementation of MNREGA. It is a Zero Power Cut

State since 2008. Chhattisgarh became the second state after Karnataka in

preparing Agri-budget since 2012-13. Chhattisgarh has given its youth the right to

acquire skill and announced a youth budget focusing on public investment in

schemes that directly relate to the Youth with enforceable right to skills under

Chhattisgarh Right of Youth to Skill Development Act, 2013. It has established 27

livelihood colleges under RIDF and these colleges will have e-classrooms. Some of

the other welfare initiatives/ announcements are indicated below:

Free medical facility of ` 50000.00 to each family per annum.

Distribution of free tablet to graduates under Digital India drive.

“Zero” rate of interest on Education loan to tribal students.

“Zero crop loan interest rate” on prompt repayment and 1st state to make online

submission of interest subvention claims.

It has own award for e-procurement innovation which ensures online price

payment to 90% of the participating farmers.

Leader among the states of the country in giving piped drinking water supply

during 2014-15.

Banking

Key banking statistics

As on 31.03.2015, the deposits stood at `105022 crore with an approximate growth of 13%

over 31.03.2014 position. Similarly, Advances stood at ` 67691 crore showing an

approximate growth rate of 15%. The CD ratio stood at 64.45% with slight improvement

over 31.03.2014 position. Achievement under the Priority Sector and Agricultural

advances stood at 44.54% and 14.44% respectively. However, on all India basis, the State’s

share in credit flow remained less than 1% requiring accelerated deposit mobilisation and

increasing the size of credit flow and more particularly in favour of Priority sector. As on

31.03.2013, State’s share in credit flow stood at only 0.8% against deposit share of 1.19%.

Excluding 1333 PACS, there were 2333 of bank branches in the State as on 31.03.2014,

with 47.5% of them in rural areas and per branch population stands at 10943. As on

31.03.2015, total bank branches were 2454 and per branch population was 10391.The

rural, the semi-urban and the urban branches were 1165,651 and 638 respectively. There

was increase of 121 branches over the 31.03.2014 position.

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Focusing on branch opening in under banked areas

To improve the availability of banking infrastructure in neglected areas, the SLBC decided

to open 150 branches in the far flung areas of Bastar division (07 districts) and

Rajnandagaon district in the next one year or two. Out of 150, nationalized banks are

likely to open 54 branches by 31.03.2016 out of which 41 are earmarked for Bastar region.

Extension of banking services through BCs /CSPs in 1050 financially excluded villages

with population above 2000 and 18233 financially excluded villages with population

between 1000 to 2000 have been completed. Further, conversion of CSPs into ultra-small

branches in LWE districts has also been done. In order to solve the internet connectivity

problem, of approved 146 mobile towers, 73 towers will be installed in Sukma, Bijapur,

Narayanpur, Dantewada districts of Bastar Division. Out of 146, as of December 2015, a

total of 110 towers had started sending signals. This drive will improve internet

connectivity facilitating smooth functioning of BCs/CSPs/USBs. As of December 2015, 33

banks had employed 2996 Bank Mitras in the state.

Status of Financial Inclusion in Chhattisgarh

As on 15.01.2016, the status of flagship programmes of GoI is as under:

Total PMJDY A/cs stood at 89.92 lakh out of which 49.23 lakh accounts (approx.

55%) were active. RuPay card accounts stood at 68.18 lakh with 52% activation.

Aadhaar seeded status was only 27%.

Remaining HHs for coverage under PMJDY was only 10168 as on the above date

Under PM insurance total enrollment stood at approximately 56.47 lakh (PMJJBY

at 9.59 lakh + PMSBY at 46.63 lakh + APY at 0.25 lakh)

The last date of enrollment under both the insurance schemes has been extended

to 31.05.2016 .The last date for government co-contribution under APY has been

extended upto 31.03.2016

Chhattisgarh occupied 1st and 6th position under PMSBY and PMJJBY as on 30.11.2015.

Banking issues including legal framework

The overall CD ratio in the State was 64.45% as on 31 March 2015, compared to the

benchmark of 60% while the national average is 77.4 %.

CD Ratio in respect of 20 out of 27 districts was below stipulated 60% whereas in 09

districts the same was below 40%, which is a major area of concern.

Earlier, stamp duty on credit to agriculture was exempted for borrowers belonging to

SC/ ST and in case of other borrowers 1% stamp duty was payable for borrowing above `

10 lakh. The State Government vide their notification F10-19/2013/CT (W)/5(26) dated 3

April 2013 has exempted stamp duty for credit provided by banks for agriculture.

• As per Revenue Recovery Act the farmers holding up to 6 ha. of land in scheduled area

and up to 4 ha. of land in other areas shall not be subjected to attachment and sale of land

holding. In Chhattisgarh, more than 95% borrowers are having less than 4 ha. of land.

• The State government is required to initiate steps for setting up of a Debt Recovery

Tribunal which will facilitate early settlement of pending cases.

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• Recording of equitable mortgage in respective registrar’s office of the State will

safeguard bank’s interest against multiple financing.

• In Chhattisgarh banks cannot sell mortgaged land of tribal without permission of DM

even under SARFAESI Act. At the request of banks to either amend or alternatively create

a credit guarantee trust Fund, a sub-group of SLBC has been formed to make alternate

suggestions.

Overall and Sectoral trends in credit flow

Disbursement under Priority sector increased from ` 10215.81 crore in 2013-14 to

`13734.17 crore in 2014-15. The banks registered an achievement of 68.31% of the overall

target for Priority Sector credit in 2014-15. However, the achievements under total

agricultural credit at 62.8% and crop loan at 84% fell short of the target.

Agri-Credit

During last three years, the average Agri-credit stood at ` 6331 crore and during 2014-15,

it was ` 6921 crore showing a moderate growth. Low share of Term lending at an average

of ` 1300 crore during the past three years has a dampening effect on the growth of

overall agriculture credit.

MSME including Food and Agro-Processing

Under Non-Farm sector including Food and Agro-processing, there is impressive growth

in credit flow in percentage terms. The average lending during last three years remained

at ` 3000 crore. Skill Chhattisgarh and Make in Chhattisgarh initiatives coupled with a

progressive Industrial Policy will have a positive impact on the MSME sector in near

future.

Other Priority Sector

Loan flow under exports remained subdued due to less diversification of agriculture. Most

of the exports are being made by export and trading houses stationed outside the state.

Investment in renewable energy was concentrated in installation of bio-gas plants and to

some extent roof-top solar plants.

The credit flow under other priority sector averaged at ` 1968 crore. Much of the

investment in Education, Housing, Social Infrastructure like Schools, Health Care System

with complementary nutrition and drinking water supply came from State’s budgetary

provision and with inclusion of social sector activities in revised Priority Sector, banks will

start advancing credit to this integrated sector.

State Potential Credit Outlay - 2016-17

On the basis of PLPs for 2015-16, the Potential Credit Outlay of the state for 2015-16 was

pegged at ` 20979.52 crore. Subsequently, in the wake of revision in Priority Sector

Guidelines in terms of RBI Circular FIDD.CO.Plan.BC.54/04.09.01/2014-15 dated

23.04.2015, the Potential Agri Credit Outlay has been segmented into three categories viz.

Farm Credit, Ancillary Credit and Credit for Agricultural infrastructure. With inclusion of

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medium enterprises, the SME chapter renamed as MSME. With renewed focus on rural

housing, education, export credit and social infrastructures, separate credit projections

have been made. This has resulted in regrouping of investment activities. The credit

projections have been made based on the updated scale of finance and unit cost for the

year 2015-16. The sector-wise projection in comparison to base year or previous year have

also been revised upward or downward as per both the macro and micro level investment

perceptions prevailing in that particular sector.

State Credit Plan 2015-16 – Target vis-a-vis Achievement

(` in lakh)

Broad sector Target Target Achievement as on 30.09.2015

% achievement

Crop loan 817404 1195400 504729 42.22 Long Term Loan 378000 SME 392768 254815 64.88 OPS 509780 132630 26.02 Total Priority Sector 2097952 892171 42.53

SFP projections -2016-17 as per revised Priority Sector Guidelines of RBI

(` in lakh)

Sl. No.

Particulars Credit Projection

I Credit Potential for Agriculture A Farm Credit i Crop Production, Maintenance and Marketing 898370.91 ii Water Resources 37173.65 iii Farm Mechanisation 93489.76 iv Plantation and Horticulture 45247.81 v Forestry and Waste Land Development. 3267.99 vi Animal Husbandry-Dairy 33317.02 vii Animal Husbandry-Poultry 18919.33 viii Animal Husbandry-Sheep, Goat, Piggery 11263.18 ix Fisheries 19777.65 x Others 6802.46 Sub Total 1167629.76 B Agriculture Infrastructure i Construction of storage facilities 97292.21 ii Land Development 18846.52 iii Others 5973.97 Sub Total 122112.7 C Ancillary Activities i Food and Agro processing 97002.29 ii Others 13162.62 Sub Total 110164.91 Total Agriculture 1399907.37 II Micro Small and Medium Enterprises 618533.81 III Export Credit 30514.90 IV Education 39550.40 V Housing 120254.22 VI Renewable Energy 5896.20 VII Others 84640.85

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VIII Social Infrastructure involving Bank Credit 18917.93 Total Priority Sector 2318215.68

Initiatives of NABARD in Chhattisgarh having bearing on credit flow and development of the State

Cumulatively, NABARD’s financial assistance in Chhattisgarh of January 2016

reached ` 19737 crore out of which Refinance, Loan and Grant support were `

9252 crore, ` 10197 crore and ` 288.28 crore respectively. The bulk of the

refinance support has been infused into short-term credit structure of the state.

Similarly, for diversification of agriculture and capital formation by the private

sector, refinance against the agricultural term loan was extended to commercial

banks along with concessional refinance to the Cooperatives and the RRB.

NABARD cumulatively disbursed ` 3527 crore against sanction of ` 5092 crore

under RIDF. RIDF helped the State to have 3.39 lakh hectares of irrigation

(sanctioned capacity), 5.33 lakh MT of storage space, 11,000 km rural roads and

231 bridges.

Under Warehouse Infrastructure Fund, 54 projects worth ` 79.66 crore were

sanctioned to State Government for creation of 3.12 lakh MT of storage capacity.

Under NIDA, Term loan assistance of ` 258.29 crore was sanctioned and ` 129.18

crore was disbursed to CSPTCL for establishment of Power Transmission System

with the aim of improving power supply in rural areas of the state

Under “Credit Facility to Federations” NABARD has sanctioned MARKFED with a

cumulative credit support of ` 6500 crore which has facilitated better price

realization for paddy farmers.

Under Wadi Development Programme, NABARD assisted 73 projects in 45 blocks

of 18 districts covering 52716 tribal families with 42000 wadis involving grant

support of ` 199 crore. The flagship programme has not only stabilized income of

wadi farmers but also organized them in the form of FPOs as market players.

Under Watershed Programme, NABARD assisted 55 projects with treatment area

of 61892 ha covering 20264 families in 28 blocks in 14 districts including 38 in 15

drought prone blocks involving grant support of ` 45 crore. This has improved soil

and water conservation in the eroded farmland and augmented crop productivity.

Under Financial Inclusion drive, NABARD, disbursed total grant of ` 6.92 crore as

of 31.01.2016. 07 and 09 Financial Literacy Centres were sanctioned to RRB & 03

DCCBs respectively. Chhattisgarh Rajya Gramin Bank has been assisted for

issuance of RuPay Debit and Rupay Kisan Cards. Cumulatively, 800 financial

literacy programmes were sanctioned for creation of awareness on banking habits

covering approximately two lakh rural population. Grant assistance has been

sanctioned to SLBC and CRGB for printing and distribution of standardized

Financial Literacy material and also to IGKV for printing and distribution of Krishi

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Panchang. NABARD has produced a film in vernacular language viz. “Disha”, to

promote Financial Literacy. The film was released by the Hon’ble Chief Minister.

Under socio-economic mobilization, as on 31.03.2015, approximately 1.48 lakh &

0.90 lakh SHGs have been savings & credit linked respectively in the state

covering 17.66 lakh SHG members out of which 85% are women SHGs. Similarly

19,000 JLGs are credit linked covering about 80000 marginal farmers.

Cumulatively NABARD has committed ` 19 crore for promotion and credit linkage

of 26,000 SHGs and 7,000 JLGs to 69 partner NGOs. Digitization of SHGs is to be

piloted by NABARD in Rajanandgaon district during 2016-17. Under Women SHG

programme in 14 Left Wing Extremism (LWE) affected districts, NABARD has

sanctioned projects to 29 NGOs for promotion and nurturing of 10685 WSHGs

with a grant support of ` 10.68 crore. MoUs have been signed by all these NGOs

with 190 branches of commercial banks, RRBs and DCCBs.

Under Producer Organization Development & Upliftment Corpus (PRODUCE),

grant of over ` 4.66 crore committed for strengthening of 60 agri-based FPOs.

The cumulative number of farmers’ club in the State as on 31.03.2015 has reached

3702. Under Village Development Programme (VDP), cumulatively 140 villages

were covered and development plans were executed.

During 2014-15, NABARD released subsidies under various GoI schemes viz.

Integrated Scheme for agriculture Marketing (ISAM) (` 11.88 crore), Dairy

Entrepreneurship Development Scheme (` 1.89 crore), Poultry Venture Capital

Fund (` 7.82 crore) and Integrated Scheme for Small Ruminants and Rabbits (`

0.64 crore)

NABARD CBS Project for Cooperatives

Out of the 7 Cooperative banks (06 DCCBs and 01 StCB) and one RRB in the State

of Chhattisgarh, 05 DCCBs (Ambikapur, Bilaspur, Durg, Jagdalpur and

Rajnandgaon) and the StCB were included in the NABARD CBS project.

Post CBS

All the Cooperative Banks in the State are now fully on CBS i.e. both HO Module

and Branch module are fully operational. Services like NEFT, SMS alert, Rupay

Debit IIN (Rupay Debit Card), deployment of ATMs under sponsorship model

with Axis Bank as the sponsor and DBT are now available with all the cooperative

banks.

Status of automation in CRGB

Chhattisgarh Rajya Gramin Bank is fully on CBS and except for internet and mobile

banking all other electronic services has been deployed by it. NABARD has

sanctioned ` 4.83 crore to CRGB towards cost of RuPay debit and KCC for 03 years

w.e.f 2014 – 15 and made payment of ` 2.50 crore to the bank for the year 2014 –

15. CRGB has also applied to RBI for net banking / mobile banking and currency

chest.

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PACS Development Centre

Disbursed ` 6.95 lakh to STCCS under institutional development towards setting up of

PACs Development Cell(PDC) in DCCB, Rajnandgaon, infrastructural development

support to LAMPs of DCCB, Jagdalpur& to support various training programmes for

capacity building of staff of DCCBs.

Supervisory initiatives for strengthening RFIs

As mandated, NABARD through its institutional development tools influenced positively

financial intermediation role of the Cooperatives and the Chhattisgarh Rajya Gramin

Bank. As regards the Apex Bank, the financial health of the Bank remained satisfactory.

However, corporate governance remained a matter of concern as there was no elected

Board in 04 DCCBs viz. Ambikapur, Rajnandgaon, Raipur & Bilaspur& Apex Bank and as

also CEOs were not posted as per “Fit & Proper” criteria. Out of 06 DCCBs, 03

viz.(Ambikapur, Bilaspur& Jagdalpur are having < 7% CRAR. They require capital

infusion of ` 237.29 crore to reach 7% CRAR & ` 267.69 crore for 9% CRAR. Net worth of

Ambikapur & Bilaspur DCCBs remained negative as on 31.03.2015 and both the banks

were not complying with Section 11(1) of BR Act 1949 (AACS).

Sectoral issues and suggestions

Low per hectare Agri-Credit and low share of Agricultural Term Lending by Cooperatives & RRB

Chhattisgarh has been contributing around 3% of the total food grain production in the

country which is growing with increase in productivity level and expansion of Rabi

coverage. However, share of its farmers in total agriculture credit disbursed in the country

remains less than 1%. Moreover, compared to ` 23000-` 28000 per ha. credit for

agriculture in other Eastern states and Rs.36348 on all India level, Chhattisgarh farmers

got only ` 13585.00 as per- hectare credit during 2014-15.

(Amt in `)

Items 2012-13 2013-14 2014-15 Remarks Per capita Ag Credit

17177 16122 18475 Per capita land holding is 1.36 ha

Per ha 12630 11854 13585

KCC coverage is around 69%. Out of 37.46 lakh farmers approximately 26 lakh farmers

have been issued KCC as per SLBC data. The level of disbursement of term loan, interalia,

particularly by the Cooperatives and the RRB is the major reason for low per ha Agri-

credit. During last three years, on an average, lending under ATL is ` 1300 crore which is

only 20% of Agri-credit disbursed during the same period as against the stipulated 35%.

The share of Cooperatives and the Chhattisgarh Rural Gramin Bank was only 2.97% and

3.67% respectively in the total ATL disbursed during last three years. Decelerating term

lending trend in Cooperatives and the RRB needs to be reversed.

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Small farmers’ concentration

Out of the total farmers about 58.28% are marginal and 22.18 % are small farmers

occupying 41.94% of land. In absolute number, 30.14 lakh small and marginal farmers

own 21.32 lakh ha. As such, their per capita land availability is 0.71 ha. Considering their

concentration and lower per capita availability of land, policy should focus on increasing

productivity and diversifying farm income. Organising farmers into FPOs will facilitate

procurement of inputs, farm mechanisation, development of irrigation sources, switching

over to integrated farming, promoting area based schemes, aggregation, post-harvest

management and marketing. This will bring the desired benefits to the small and

marginal farmers.

Bridging productivity gap in food grains production

Per ha. yield of paddy (rice) in the State during 2013-14 (4th AE) was estimated at 2158

kg/ha against all India average of 2419 kg/ha., maize - 1850 kg/ha against all India

average of 2596 kg/ha., Tur - 670 kg/ha against all India position of 848 kg/ha.,

Rapeseed/mustard - 590 kg/ha against all India productivity of 1188 kg/ha. The State

fared well under total pulses particularly under chana. It stood 7th in area and 6th in yield

in respect of the crop with productivity level of 1099 kg/ha against all India position of

967 kg/ha.

Slow crop diversification

Out of total average net sown area of 48 lakh ha. in Kharif , paddy occupied 37 lakh ha

leaving only 11 lakh ha for other Kharif crops. Till now, there is negligible variation in

paddy coverage. As such, expansion of area under pulses was affected. Since, there is slow

and limited expansion of Rabi coverage, there is need for diversification towards Kharif

pulses, oilseeds, Soybean and Chana.

Rain fed farming and limited irrigation Irrigation infrastructure is available only in about 34% of the agricultural land in

Chhattisgarh with the remaining area under rainfed farming. There is need for creation of

irrigation capacity keeping in view the available surface and ground water resources.

Inadequate Crop Insurance Coverage During previous 14 Kharif seasons, 95.85 lakh loanee farmers and 1.75 lakh non-loanee

farmers have been insured covering cultivated area of 188.10 lakh hectare and 3.15 lakh

hectare respectively. During Kharif 2015, a record 11.68 lakh loanee farmers and 0.39 lakh

non-loanee farmers have been insured covering cultivated area of 21.63 lakh hectare and

0.60 lakh ha respectively. On an average, 7 lakh farmers which is approximately 19% of

the farming families were covered under Crop insurance.

Slow growth of allied sectors and value chains

Inadequate awareness, lack of extension services and low risk bearing capacity of

entrepreneurs have delayed development of potential allied sectors such as horticulture,

dairy, poultry and slow expansion of fisheries. In the absence of marketable surplus, the

value chain is fragmented and processing sector is under developed.

Climate Change, Agriculture & Industry In view of the climate change and consequent global temperature rise, a strategy for

carbon emission reduction and adaptation is required. India ranking 4th in the emission

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list has established a National Adaptation Fund on Climate Change (NAFCC) with a

corpus of ` 350 crore for 3 years 2015-16 to 2017-18 to combat the challenges of climate

change. NABARD has been designated as National Implementing Entity for Green

Climate Fund under UNFCCC and National Adaptation Fund on Climate Change of GoI.

In this direction, the State Government has prepared an action plan for meeting both the

mitigation and adaptation requirements covering areas like Agriculture and Allied

Sectors, Forest & Biodiversity, Water resources, urban development, Transport, Energy,

Industry & Mining and Human health. The immediate requirements are to enhance

adaptation capability of its farmers and spread use of renewable energy more in favor of

bio-gas and solar energy in rural areas. The adaptation strategy in agriculture will involve

introduction of later-maturing varieties, changing cropping sequence more in favor of

hardy crop varieties, timely sowing, improved weather forecasting and preparedness.

Forest cover need to be increased for enhancing carbon sink capacity, maintenance of

water ecosystems and wet zones, conserving wildlife, reducing overdependence on forest

resource and protecting ecology.

Diversification in MSME ecosystem

MSME ecosystem of the state initially consisted of a few core group of medium level

downstream industries. Emphasis has been given for broad-basing and promotion of non-

core industries under the new industrial policy and “Make in Chhattisgarh” drive. This

has prompted private players to invest in a big way in Agro and Food Processing,

Electronics, Automotive and IT sectors. However, since SMEs including household

industries exert a significant impact on growth, poverty alleviation and income inequality,

higher SME share should be ensured under MSME sector.

Exports promotion

The state has potential in exports of both traditional and non-traditional items such as

Rice, Processed food items, Fish, Kosa silk, Lac, Handicrafts, Ready-made garments,

Leather and Leather products, Gems& Jewellery and Non-timber forest produces.

However, most of the export and trading houses are stationed outside the state resulting

in less value addition and lesser export credit flow in the state. Thus, there is a need to

promote more numbers of state level export and trading houses and providing them

suitable incentive.

Improving education and skills for employment

Education sector needs to be adequately funded keeping in view the goals of high

standards and employability. An important tasks is to upgrade the facilities of the existing

schools and colleges including introduction of vocational courses, internet facility etc.

SHG and Women empowerment The SHG-Bank Linkage programme has been accepted as an effective vehicle for

empowerment of women, livelihoods promotion and poverty alleviation. With the

launching of the NRLM, efforts are made to develop grass root institutions for promotion

of sustainable livelihood. The coverage under the programme needs to be enhanced

through promotion of higher number of quality SHGS and their partner institutions.

Other related issues are the ready availability of bank loans for SHGs, enhancement of

Executive Summary

xxiv

bank loan disbursement to atleast Rs.1.00 lakh from present level of Rs.0.64 lakh,

capacity building of the bank personnel, NGOs, leaders/ members of SHGs.

Support to JLGs Almost 80% land holding in the state are owned by small and marginal farmers covering

about 42% of agricultural land. This has prompted land leases from relatively large land

owners to relatively small land owners mostly by oral land leasing arrangement. Often

JLGs find it difficult to obtain bank finance as well as support from Government

departments in the absence of formal leaseholds. Policy support from the government and

banks is required to ensure greater inclusion of this important segment.

Importance of Rural Infrastructure

Rural infrastructure in sectors like irrigation and connectivity is essential for increasing

productivity of land, capital formation, employment generation, reducing post-harvest

losses and improving living standards of the people.

In terms of infrastructure development index, the state ranks 17th in the country. The

infrastructure index of the state, in many important aspects like irrigation, roads,

drinking water, telecommunication, school buildings etc. is far behind the national

average.

Chhattisgarh is ranked 23rd out of 28 states in respect of Road Index of IDFC (2010).

With a total road length of 93, 965 kms (2010-11), road density of the State works out to

69.81 km against the national average of 142.68 km per 100 sq. km.

In 12 districts of Bastar Plateau region and Northern Hills, covering 31% of total Net

Sown Area there is scanty irrigation facility and mostly dryland agriculture is practised.

While the area under irrigation in 7 districts of Bastar plateau is only 5%, the same is only

11% in 5 Northern Hills districts.

Critical infrastructure including Agri-infrastructure

Critical infrastructure could be defined as that infrastructure, which if created, will

support increased credit flow under agriculture and benefit a large number of people.

Critical infrastructure therefore covers the following:

• Infrastructure having a large impact on Livelihoods and Income Levels of rural

population

• Critical constraints in improving productivity/ production levels of farmers

• Infrastructure that leads to environmentally sustainable development

Based on the above, critical infrastructure gaps in each of the districts in various sectors

have been presented in this document so that those gaps could be bridged through RIDF/

NIDA or otherwise. Presently, under RIDF, about 33% of the funds are utilized to finance

core sectors like agriculture and irrigation. The way forward is to progressively shift RIDF

funding in core sectors to the level of 70%.

Identified critical infrastructure under various sectors • Watershed and water management practices as also model agriculture/ horticultural

farms/ nurseries.

• Poly houses and green houses, Floriculture auction centers and Sericulture

infrastructure.

Executive Summary

xxv

• Milk and meat processing units and cooling chains are required, particularly in

Northern and Southern Chhattisgarh. Infrastructure for fish markets and cold storage are

critical for development of fisheries sector in the state.

• Projects for desilting of Reservoirs/ Tanks and Ponds need to be taken up on priority

basis. Lift Irrigation Projects need to be encouraged around anicut areas developed so far.

• Water Harvesting structures, Check dams, Percolation tanks, etc. need to be created.

• Creation of ware housing facilities, rural godowns, milk cooling chains, food Parks, etc.

are very critical for post-harvest management of produce.

• Rural roads and bridges are critical for ensuring rural connectivity and hence rural

development.

• Equipping PHCs & Anganwadi Centres, upgradation of facilities in Primary and

Secondary schools, investment in nutrition care, better sewerage, drainage system,

sanitation infrastructure like piped drinking water and sustainable waste management are

to be pursued to enhance access to affordable health services, child and mother

healthcare, quality education and hygiene.

Prioritization of Critical Infrastructure Gaps

For the purpose of identification and prioritization of Critical Infrastructure Gaps,

through dialogue and interaction with line departments, a list of critical infrastructure

and linkage support required for important sectors in each of the districts has been

prepared and is furnished in Annexure III in detail. The critical infrastructural gaps

presented in Annexure III have been identified as priority area for action by the State

Government with an option to avail funds under RIDF/ NIDA, as most of the activities are

eligible for funding thereunder.

State Profile

MAP OF CHHATTISGARH

State :

137898

27

146

19567

149

137.90 Normal 2013 2014

63.36 1317.50 1363.60 1182.70

10.19 -46.10 -134.80

8.55

0.01

3.55

2.53

2.75 Nos.(lakh) % to Total Ha.(lakh)

46.86 21.83 58 9.53

56.98 8.31 22 11.79

10.12 7.32 20 29.52

121.60 37.46 100 50.84

4005 Total Male Female Rural

3044 25545 12833 12712 19608

5091 2419 1213 1206 1899

187 6617 3288 3329 6265

2895 15380 8808 6572 11009

10411 - - 8890

5651 NA

4366 4092

2260 NA

19219 43567

19219 793

3144 5180

37755

792 778

84746.00

NA

61810

4300

1878

1462

874 185.00

18 57495.00

49 2293.00

510 8397.00

1751 11709.00

No of units Cap.[MT]

27 NAArea

(000Ha)

Prod.

('000'MT)Area (000Ha) Prod. ('000'MT)

NA NA 3982.20 8162.70 38.00 8200.00

6 NA 116.80 225.10 286.00 529.00

NA NA 968.00 981.58 1139.00 907.00

4 NA 305.75 295.80 586.00 436.00

NA NA 102.20 143.20 143.20 231.10

17 65000 23.24 64.70 28.72 79.41

NA NA

1 NA

Category of animal Total Male Female 1442

Cattle -cows-oxen 96.35 47.83 48.52 16

Cattle -buffaloes 13.90 7.90 6.00275

Sheep 1.68 .59 1.09 9

Goat 32.25 9.98 22.27 2

Pig 4.39 NA NA 623

Others 0.01 NA NA 2

Poultry 179.55 NA NA

Fish 314165.00 8.93 Per cap requirement(Kg per annum) 11.00

Egg 14732.00 57.00 Per cap requirement(Nos per annum) 182.00

Milk 12.31 130.00 Per cap requirement(gm/day) 250.00

Meat 37764.00 1.45 Per cap requirement(Kg per annum) 10.95

Agro-climatic Zone

State Profile

Chhattisgarh

1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE

“The Bastar Plateau”,Northern Hilly Region &”plains of Chhattisgarh”No. of Districts

No. of Blocks Climate Tropical & humid to Sub-humid

No. of Villages (Inhabited)Soil Type Predominantly red and yellow sandy loam.

No. of Tehsils

Total Geographical Area (Sq.km)

3. LAND UTILISATION [lakh Ha] 4. RAINFALL & GROUND WATER

Total Area Reported

Rainfall [in mm]Actual

2015

Forest Land 1008.90

Area Not Available for Cultivation Variation from Normal -308.60

Permanent Pasture and Grazing Land Availability of Ground Water

[Ham]

Total annual recharge Existing Gross GW draft Balance

Land under Miscellaneous Tree Crops 1279536.44 439834.49 839701.95

Cultivable Wasteland 5. DISTRIBUTION OF LAND HOLDING

Current FallowClassification of Holding

Holding Area

Other Fallow % to Total

Net Sown Area Marginal 19

Total or Gross Cropped Area Small 23

Area Cultivated More than Once Other 58

Cropping Inensity [GCA/NSA](%) Total 100

6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000]

Cultivators Category Urban

Of the above, Small/Marginal Farmers Population 5937

Agricultural Labourers Scheduled Caste 520

Workers engaged in Household Industries Scheduled Tribe 352

Other workers Literate 4371

BPL 1521

8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households]

Total Households Having brick/stone/concrete houses Having electricity supply 2793

Rural Households Having source of drinking water Having independent toilets 2083

BPL Households Having access to banking services Having radio/tv sets

10. INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos]

Villages Electrified Anganwadis Civil Dispensaries 31

Villages having Agriculture Power Supply Primary Health Centres District Hospitals 27

Post Offices Primary Health Sub-Centres Hospital Beds 10503

Villages having Banking Facilities 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE

Primary Schools Fertiliser/Seed/Pesticide Outlets [Nos] Agriculture Pumpsets[Nos]

Primary Health Centres Total N/P/K Consumption [000MT] Pumpsets Energised [Nos] 327000

Villages having Potable Water Supply Certified Seeds Supplied [MT] Agro Service Centres [Nos] 298

Villages connected with Paved Approach Roads Pesticides Consumed [MT] Soil Testing Centres [Nos] 11

13. IRRIGATION COVERAGE [000HA] Agriculture Tractors [Nos] Plantation nurseries [Nos] 146

Total Area Available for Irrigation (NIA + Fallow) Power Tillers [Nos] Farmers' Clubs [Nos] 3291

Irrigation Potential Created Threshers/Cutters [Nos] Krishi Vigyan Kendras[Nos] 20

Net Irrigated Area(Total area irrigated atkeast once) 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING

Area irrigated by Canals / Channels Rural/Urban Mandi [Nos] Wholesale Market [Nos] NA

Area irrigated by Wells Length of Pucca Road [Km] Godown [Nos]

Area irrigated by Tanks Length of Railway Line [Km] Godown Capacity[MT] 3108000

Area irrigated by Tube Wells including other sorces Public Transport Vehicle [Nos] Cold Storage [Nos] 47

Irrigation Potential Utilized (Gross Irrigated Area) Goods Transport Vehicle [Nos] Cold Store Capacity[MT] 342000

15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS

Crop

2012-13 2013-14

Avg. Yield [Kg/Ha]Seed Processing Centre

Type of Processing Activity

Sugarcane (Gur/Khandsari/Sugar) Paddy 2158

Fruit & Veg Proc/grading Maize 1850

Spices (Masala Powders/Pastes) Pulses 796

Dry-fruit (Cashew/Almond/Raisins) Oilseeds 744

Cotton (Ginnining/Spinning/Weaving) Wheat 1614

Milk (Chilling/Cooling/Processing)Sugarcane 2765

Meat (Chicken/Motton/Pork/Dryfish)

Animal feed (Cattle/Poultry/Fishmeal)Production of Cotton(lint), Jute, Mesta & Sanhemp are in Bales(177.8 kg per bale in India)

17.Animal Population-Census 2012(In lakh) 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES

Veterinary Clinics/Dispensaries [Nos] Animal Markets [Nos] 71

Disease Diagnostic Centres [Nos] Milk Collection Centres [Nos]

Artificial Insemination Centers

[Nos]including sub-centresFishermen Societies [Nos] 1315

Animal Breeding Farms [Nos] Fish seed farms [Nos] 57

Animal Husbandry Tng Centres [Nos] Fish Markets [Nos]-proposed 3

Dairy Cooperative Societies [Nos] Poultry hatcheries [Nos] 35

Improved Fodder Farms [Nos] Slaughter houses [Nos]

19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY

Production [MT] Per cap avail. [kg/annum]

Sources (if not mentioned against the

respective item):

Item Nos. 1, 7, 9 & 10 - Census 2011; Item Nos. 2, 3, 5, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of Agr./Water Resources; Item No. 8 - BPL Survey 2011-12; Item No. 15 - District Ind Centre/Dir.

of Eco. & Stat.; Item No. 16 - DACNET; Item No. 17 - AH Census 2012; Item Nos. 18 Item no. 6- Directorate of Economics and Statistics 2011-12, Chhattisgarh & 19 - Dir. of Animal Hus./Dir. of Eco. & Stat,Agriculture

Statistics at a glance,2013

Production [Lakh Nos] Per cap avail. [nos/p.a.]

Production ['lakh ltr] Per cap avail. [gm/day]

Production [000 kg] Per cap avail. [kg/annum]

State -

Total Rural Semi-urban Urban

Commercial Banks 42 1608 554 512 542

Regional Rural Bank 1 584 464 78 42

Coop. Banks 7 244 147 61 36

Primary Agr. Coop. Society1333 1333 1333

Others(Urban Coop. Banks)6 18 18

All Agencies(Banks+PACS/

LAMPS)

1389 3787 2498 651 638

31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%)

Commercial Banks 76909.04 81019.11 92128.64 13.7 87.7

Regional Rural Bank 6048.11 6587.76 7341.11 11.4 7.0

Cooperative Banks 4381.77 5164.97 5552.74 7.5 5.3

Others 0 0 0 0

All Agencies 87338.92 92771.84 105022.49 13.2 100.0

31-Mar-13 31-Mar-14 31-Mar-15 Growth(%) Share(%) 31-Mar-13 31-Mar-14 31-Mar-15

Commercial Banks44471.51 54338.38 62745.6 15.47204757 92.7 Commercial

Banks 58 67 68

Regional Rural Bank1992.15 2088.03 2271.6 8.790582511 3.4 Regional

Rural Bank 33 32 31

Cooperative Banks2630.07 2204.47 2673.8 21.28856369 3.9 Cooperative

Banks 60 43 48

Others Others

All Agencies49093.73 58630.88 67690.99 15.45279552 100.0

All

Agencies 56 63 64

Commercial Banks 25952.48 86.09 6430.05 65.79 5433.85 68.56 7.74 100.00 3240.21 86.06

Regional Rural Bank 1760.87 5.84 1115.42 11.41 1419.32 17.91 0 0 356.84 9.48

Cooperative Banks 2433.53 8.07 2228.14 22.80 1072.64 13.53 0 0 168.07 4.46

Others

All Agencies 30146.88 100.00 9773.61 100.00 7925.81 100.00 7.74 100.00 3765.12 100.00

Commercial Banks 10611.31 7059.81 67 12863.68 6836.53 53 13053.11 9947.09 76 65

Regional Rural Bank 1083.16 954.53 88 1287.82 673.25 52 2855.2 762.38 27 46

Cooperative Banks 1894.56 2173.07 115 2099.18 2706.04 129 4198.16 3024.7 72 96

Others 18.35 22.02 #DIV/0!

All Agencies 13607.38 10187.41 74.87 16272.70 10215.82 62.78 20106.47 13734.17 68.31 68

Crop Loan 5468.13 4411.14 81 6102.88 5104.54 84 7225 5538.27 77 80

Term Loan (Agr) 3081.87 1623.54 53 3172.12 934.75 29 3715 1382.29 37 40

Total Agri. Credit 8550 6034.68 71 9275 6039.29 65 11016.83 6920.56 63 66

Non-Farm Sector/MSME 1778.38 2311.68 130 2876.07 2606.67 91 4157.67 4320.89 104 105

Other Priority Sector 3279 1841.05 56 4121.63 1569.86 38 4931.97 2492.72 51 48

Total Priority Sector 13607.38 10187.41 74.87 16272.70 10215.82 62.78 20106.47 13734.17 68.31 68

Commercial Banks 4994.30 4124.81 82.59 9885.56 6985.64 70.67 10270.16 7043.56 68.58 72.18

Regional Rural Bank 924.53 706.94 76.46 1026.05 797.47 77.72 1285.74 950.17 73.90 75.84

Cooperative Banks 2246.89 1357.93 60.44 3243.42 2358.04 72.70 3828.18 2587.63 67.59 67.65

Others

All Agencies 8165.72 6189.68 75.80 14155.03 10141.15 71.64 15384.08 10581.36 68.78 71.38

Sources : SLBC

Agency

2012-13 2013-14 2014-15

24386/7112

Average

Rec. [%] in

last 3 yearsDemand [Rs.

crore]

Recovery

[Rs. crore]Recovery [%]

Demand [Rs.

crore]

Recovery

[Rs. crore]

Recovery

[%]

Demand [Rs.

crore]

Recovery [Rs.

crore]

Recovery

[%]

Ach'ment

[Rs. crore]

Ach'ment

[%]

Target

[Rs.crore]

Ach'ment [Rs.

crore]

Ach'ment

[%]

8. RECOVERY POSITION

7. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

Broad Sector

2012-13 2013-14 2014-15 Average

Ach[%] in

last 3 yearsTarget

[Rs.crore]

Ach'ment

[Rs. crore]

Ach'ment

[%]

Target

[Rs.crore]

Target

[Rs.crore]

Ach'ment

[Rs. crore]

Ach'ment

[%]

Target

[Rs.crore]

Ach'ment [Rs.

crore]

Ach'ment

[%]

% of Total

Loans

6. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

Agency

2012-13 2013-14 2014-15 Average

Ach[%] in

last 3 yearsTarget

[Rs.crore]

Ach'ment

[Rs. crore]

Ach'ment

[%]

% of Total

Loans

Amount

[Rs.crore]% of Total

Loans

Amount

[Rs.crore]% of Total

Loans

Amount

[Rs.crore]

Amount

[Rs.crore]

5. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2015)

Agency

Priority Sector Loans Loans to Agr. SectorLoans to Weaker

SectionsLoans under DRI Scheme Loans to Women

Amount

[Rs.crore]% of Total

Loans

3. LOANS & ADVANCES OUTSTANDING 4. CD-RATIO

AgencyAmount of Advances [Rs.crore]

AgencyCD Ratio

31113/3537

92794/4617

148293/ 15266

2. DEPOSITS OUTSTANDING

AgencyAmount of Deposit [Rs. crore]

AgencyNo. of

Banks/Soc.

No. of Branches No. of non-formal agencies assoiated

SHGs/JLGs

Banking Profile Chhattishgarh Lead Bank - State Bank of India

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