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Executive Summary

I. General:

a) The Theme of the PLP – 2016-17 is ‘Accelerating the pace of Capital Formation in agriculture and allied sector’.Sidhi district is situated in the eastern part of Madhya Pradesh. It has five blocks with a total geographical area of 4720 sq. km. constituting 1.53% of the total area of the State. The average rainfall of the district is 1141.50 mm per annum which precipitates in about 90 - 120 days. The district population (2011 Census) is 11.27 lakh with 10.37 lakh in rural areas. The population below poverty line is 24%. The Gross Domestic Product (GDP) of the district during 2012-13 was 3.65% of the State GDP. The total irrigated area as a percentage to net sown area is 25.90%. There are 1902 SSI units with an investment of Rs. 30.56 cr providing employment to around 2500 persons. This apart, 01 mega industry with an investment of Rs. 1880.61 cr. providing employment to 1500 persons was established in the district. The district is having 28% tribal population.

b) Ground level credit flow (GLC) :Total GLC of the district under priority sector which was ₹365.84 cr, ₹222.54 cr and ₹260.72 cr during 2012-13, 2013-14 and 2014-15 respectively. The agricultural loans issued during the last three years were ₹116.68cr, ₹165.12cr and ₹203.35 cr respectively. The share of agriculture in GLC which stood at 31.89% in 2012-13 has increased to 77.99% during 2014-15. The agriculture term loan constituted 5.42% of the total agriculture lending during 2014-15.This share is showing decreasing trend since 2012-13.

c) Highlights of banking benchmarks: The district has 127 bank branches with 32 branches of Commercial Banks (including Private Sector Banks), 23 branches of MadhyanchalGramin Bank (MGB), 14 branches of DCCB, 04 branches of DCARDB and 54 PACS. The performance of banks in achieving the parameters stipulated by RBI was not satisfactory. The CD ratio of the district was as on 31.03.2015 was 146% against the norm of minimum 60%. The PS advances of 23.32%, agricultural advances of 16.21% and weaker section advances of 12.51% against the stipulation of 40%, 18% and 10% respectively reflected the poor performance of the banks. Submission of LBRs by banks needs to be improved. Achievement under ACP 2014-15 at ₹260.72 cr formed 94.02% of the target. The performance under Financial Inclusion was also satisfactory, as the targets regarding coverage of villages through USB, appointment of BCs, number of transactions of BCs, etc., were achieved.

d) Sectoral assessment of potential :(i) The potential, under Priority Sector, in each sector / sub sector for 2016-17 that could be tapped with institutional credit has been assessed and presented in chapter titled “Summary of sector / sub sector wise projections”. The potential for 2016-17 has been assessed at ₹668.78cr as against ₹514.34 cr for the year 2015-16 showing 29.96% growth over previous year. The potential under various sectors include crop loans ₹337.71cr, investment credit for agriculture comprising various sectors viz., water resources, farm mechanisation, plantation & horticulture, forestry & wasteland development, dairy, poultry, sheep/goat/piggery, fisheries and other activities at ₹147.17 cr, agriculture infrastructure at ₹28.45 cr, ancillary activities at ₹18.25 cr, MSME at ₹55.45 cr, education at ₹6.84 cr, housing at ₹44.51 cr, renewable energy at ₹2.54 cr, others at ₹6.22 cr and social infrastructure involving Bank credit at ₹21.60 cr. The share of crop loan and agriculture term loan in total agriculture credit is 63.52% and 27.68% respectively. The share of crop loan and term loan in total GLC is 73.76% & 4.23% respectively. The potential has been assessed keeping in view the GoI / GoMP’s priorities, existing / likely improvements in infrastructure, past GLC, revision in SoF / unit cost and various subsidy schemes of GoI / GoMP.

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e) Some of the major constraints envisaged in achieving the potential assessed are low KCC coverage, majority area under forest, changes in rainfall pattern, etc. Implementation of Vision 2018 document of GoMP would go a long way in realizing the potentials assessed.

II. Thrust areas and Developmental Initiatives of NABARD a) In order to realise the theme envisaged in the document, viz., Accelerating the pace of

Capital Formation in Agriculture and Allied sector, a few Area Based Schemes have been identified. The sectors identified are poultry for Sihawal block and dairy for Sidhi block. Tentative banking plans have been prepared for these activities. The models indicated are only pilots for the understanding of the banks for making a beginning and it is expected that more such schemes will be prepared by banks thereby improving the flow of GLC in particular and agriculture term loan in particular.

b) NABARD had also identified a few thrust areas for 2016-17 viz., JLG / SHG financing, micro warehousing, improving dairy development, Producer Organizations, etc. To promote the above areas, NABARD has also initiated several developmental activities in the form of support to Self Help / JLG Promoting Institutions, conduct of workshops, seminars, training camps, support to farmers clubs, FPOs, farm productivity improvement schemes, Natural Resource Management through Watershed, loan based training for NFS development, etc.

III. Infrastructure

a) The district fares badly in certain crucial indicators such as cropping intensity, irrigation facilities, no. of tubewells, etc. which are lower than the State average. Incidence of poverty is lower than State average. Infrastructure facilities act as catalysts for development. Under RIDF, thirtyone projects with a cumulative loan component of ₹116crore were sanctioned by NABARD for the district covering mainly Road, Bridge, School buildings, ITI building, etc. projects.

b) In order to improve the credit off-take in the district, the State Govt may consider improving the various critical infrastructure identified in the district viz., setting up of soil-testing laboratories in each block, strengthening the existing extension network, technology transfer, improving irrigation, popularisation of improved agricultural implements and machinery through demonstrations in farmers' fields, popularizing high density cropping systems, improving animal health care, activating/increasing he milk routes, establishment of poultry/fish hatcheries, establishment of fish markets, improving road network, uninterrupted power supply to the industries, etc.

c) There are certain critical infrastructure which can be supported through private investment in the district viz., setting up of warehouses, micro warehouses, cold storages/cold chains, etc.

IV. Conclusion: In order to achieve the overall credit potential assessed and in particular to enhance the capital formation in Agriculture in the district, there is a need to have a coordinated approach by all the stakeholders, viz., banks, Govt. Departments and NGOs. The reporting system by banks through LBRs, regular monitoring of achievements vis-à-vis the targets in DLCC / BLBC meetings assume greater importance. The implementation of SHG, JLG, RuPay enabled KCC and Financial Inclusion drive will ultimately result in achieving the various objectives of inclusive growth in the rural areas of the district.

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Broad sector wise PLP projections – 2016 – 17

( ₹. in lakh)

Sr. No. Particulars PLP projections 2016-17

A Farm credit

i Crop production, maintenance & marketing 33771.47

ii Term loan for agriculture and allied activities 14717.40

Sub total 48488.87

B Agriculture infrastructure 2845.56

C Ancillary activities 1825.72

I Credit potential for agriculture (A+B+C) 53160.15

II Micro, Small & Medium enterprises 5545.80

III Export credit 0.00

IV Education 684.00

V Housing 4451.40

VI Renewable energy 254.80

VII Others 622.00

VIII Social infrastructure involving Bank credit 2160.08

Total priority sector (I to VIII) 66878.23

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Appendix B to Annexure 1

Summary of sector / sub sector wise PLP projection – 2016 – 17

(₹. in lakh)

Sr. No.

Particulars PLP projections 2016-17

I Credit potential for agriculture

A Farm credit

i Crop production, maintenance & marketing 33771.47

ii Water resources 2296.85

iii Farm mechanisation 5970.28

iv Plantation, Horticulture & Sericulture 1179.54

v Forestry & waste land development 327.87

vi Animal Husbandry - Dairy 3456.79

vii Animal Husbandry – Poultry 326.00

viii Animal Husbandry – Sheep, goat, piggery, etc. 541.79

ix Fisheries (Marine, inland, brackish water) 384.63

x Others – Bullock, bullock carts, etc. 233.64

Sub total 48488.86

B Agriculture infrastructure

i Construction of storage facilities (warehouses, market yards, godowns, silos, cold storage units / cold storage chains)

1851.50

ii Land development, soil conservation, watershed development 415.34

iii Others (tissue culture, agri bio technology, seed production, bio pesticides / fertilizers, vermin composting)

578.72

Sub total 2845.56

C Ancillary activities

i Food and agro processing 1591.27

ii Others (loan to Cooperative Societies of farmers for disposing of their produce, Agri clinics / Agri business centres, loans to PACS / FSS / LAMPS, loans to mFIs for onlending)

234.45

Sub total 1825.72

Total agriculture 53160.14

II Micro, Small & Medium enterprises

i MSME – Working capital 924.30

ii MSME – Investment credit 4621.50

Total MSME 5545.80

III Export credit 0.00

IV Education 684.00

V Housing 4451.40

VI Renewable energy 254.80

VII Others (loans to SHG / JLGs, loans to distressed persons to prepay non institutional lenders, PMJDY, loans to State sponsored organizations for SCs / STs)

622.00

VIII Social infrastructure involving Bank credit 2160.08

Total priority sector 66878.22

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BROAD SECTOR-WISE PLP PROJECTIONS – 2016-17

DISTRICT MAP OF

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