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EXECUTIVE SUMMARY

I. Introduction a) The Theme of the PLP – 2016-17 is ‘Accelerating the pace of Capital Formation in

agriculture and allied sector’. b) With the objective to assess potential in different sectors of economy and to facilitate

bank financing in those sectors NABARD had prepared base PLP for five years i.e. from 2012-13 to 2016-17. It is necessary to update PLP every year by keeping in view changes in unit cost and other factors. Keeping this in mind PLP for 2016-17 has been prepared for Satna district.

c) Satna district is situated in the Camour Plateau in Eastern part of Madhya Pradesh. It has 8 blocks with a total geographical area of 7424 sq.km. constituting 0.02% of the total area of the State. The average rainfall of the district is 817.60 mm per annum which precipitates in about 30 days. The district population (2011 Census) is 22.28 lakh with 15.60 lakh in rural areas. The population below poverty line is 75 %. The total irrigated area as a percentage to net sown area is 38.3 %. As on 31.3.2015, there were 197 Micro Industries, 85 Small industries and 5 mega Industries providing employment to 5000 persons in the district. The district is classified as backward district of the region.

d) Review of Ground Level Credit (GLC): Total GLC of the district under priority sector which was ₹62971.24 lakh during 2013-14 increased to ₹70368.81 lakh the agricultural loans issued during the last three years were ₹40905.03 lakh and ₹44509.99 lakh and ₹50516.06 respectively. The disbursements under NFS during the above period were ₹6241.00 lakh and ₹10003.47 lakh and ₹ 11957.75 lakh respectively. The disbursement under OPS during same period were ₹7689.00 lakh, ₹8320.28 lakh and ₹ 7895.00 lakh respectively. The share of agriculture in GLC which stood at 70.9% as on 31.03.2014 increased to 71.7%. The Agriculture Term Loan constituted 47.5 % of the total agriculture lending during 2014-15. This share has increased by 7 % since 2014-15. Disbursement under head poultry, fisheries, sheep/goat and plantation horticulture is negligible though there is good potential for activities under this sector.

e) Highlights of banking benchmarks: The district has 185 bank branches with 94 branches of Commercial Banks, 67 branches of Gramin Bank, 15 branches of DCCB, 9 branches of PCARDB and 156 PACS. The performance of banks in achieving the parameters stipulated by RBI was satisfactory under Priority Sector Advances such as CD ratio of 49.9 %, PSA advances of 69.46 %, Agricultural Advances of 37.44 %, as against the stipulation of 60%, 40% and 18% respectively. Submission of LBRs by banks has been satisfactory at 98%. Achievement under ACP 2014-15 at ₹ 70368.81 lakh formed 91 % of the target. The performance under Financial Inclusion was not satisfactory as the targets regarding coverage of villages through USB, appointment of BCs, number of transactions of BCs, etc., were given by Govt but banks could not achieve these targets satisfactorily. Approx. 6.00 lakh new savings bank accounts were opened in district under PMJDY. About 80000 accounts are found to be regular and are eligible for overdraft of ₹ 5000.Nearly 1.25 lakh account holders have been covered under PMJSY. Efforts are on to cover all eligible account holders under all insurance schemes of PM and also under Atal pension yojana.

f) Sectoral assessment of potential 1) The PLP has been redesigned with the objective of making it a meaningful link between

development planning and credit planning process, leading to action planning. The potential, under Priority Sector, in each sector / sub sector that could be tapped with institutional credit during 2016-17 has been assessed in this PLP and is presented at Exhibit I. The total PLP projection for the year 2016-17 has been assessed at ₹ 2589.99 crore as against ₹ 1862.46 crore for the year 2015-16 showing 39.1% growth over

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previous year. While the potential under crop loans has been assessed at ₹1051.76 crore, that of agriculture term loans at ₹ 784.18 crore. The percentage of agriculture loans to total loans is 74.5 %. Projection under Non-farm sector has been assessed at ₹ 498.29 crore. 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.

2) Major constraints / infrastructure gaps in increasing the credit flow include inadequate extension support, delay in energisation of pump sets, lack of assured and quality power supply in rural areas, lack of post harvest facilities for horticulture crops, absence of milk routes in major parts of the district, poor roads and communication network, etc., Forward and backward linkages such as quality planting material, post harvest facilities, organised marketing facilities for P & H and floriculture crops could trigger exploitation of latent potential for P & H sector in the district. 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 realize 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 Dairy, Bamboo handicrafts etc. Tentative banking plans have been prepared for these activities. An estimated amount of ₹30.00 lakh is expected to be financed by banks under these models. The models indicated are only pilots and it is expected that more such schemes will be prepared by banks.

b) NABARD has 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 initiated several developmental activities in the form of support to SHG/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.

c) There is much demand for Capital Investment subsidy scheme of rural godown in district under which subsidy of 25% and 33% is available. Subsidy of 25% is also available under dairy scheme (DEDS) which is popular in district.

III. Infrastructure a) The district fares fairly well under some of the infrastructure indicators such as

electricity, road density, literacy rate etc. where the ranking of the district is better than the State average. However certain other indicators such as rural roads, telephones, tube wells etc., are lower than the State average. Incidence of poverty is higher than State average. Infrastructure facilities act as catalysts in the development. Under RIDF, 3 projects with an outlay of Rs 100.00 lakhs and loan component of ₹75.00 lakh was sanctioned by NABARD for the district covering mainly rural roads and minor irrigation projects, etc.

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 the milk routes, improving road network, uninterrupted power supply to the industries, etc.

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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. Banks have to play an active role in financing such investments. There is good potential for cold storages in the district.

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, and 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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Appendix A to Annexure 1

Broad Sector wise PLP projections - 2016-17

( ₹ Lakh)

Sr. No.

Sector PLP Projection

A. Farm Credit

1 Crop Production, Maintenance and Marketing 105176.18

ii Term Loan for Agriculture and Allied activities 78418.71

Sub Total 183594.89

B Agriculture Infrastructure 3633.19

C Ancillary activities 4901.40

I Credit Potential for agriculture(A+B+C) 192129.48

II Micro, Small, Medium Enterprises 49829.04

III Export Credit 72.00

IV Education 2700.00

V Housing 7920.00

VI Renewable Energy 369.00

VII Others 4900.00

VIII Social infrastructure involving bank credit 1080.00

Total Priority Sector 258999.52

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Appendix B to Annexure 1

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 105176.18 ii Water Resources 43222.41

iii Farm Mechanisation 21316.60 iv Plantation and Horticulture (including sericulture) 2342.03 v Forestry and Waste Land Development 249.41

vi Animal Husbandry – Dairy 6518.70 vii Animal Husbandry – Poultry 248.40

viii Animal Husbandry – Sheep, Goat, Piggery, etc. 275.40 ix Fisheries (Marine, Inland, Brackish water) 3814.65

x Others – Bullock, Bullock cart, etc. 431.10 Sub total 183594.88

B Agriculture Infrastructure i Construction of storage facilities (Warehouses, Market yards, Godowns,

Silos, Cold storage units/ Cold storage chains) 317.11

ii Land development, Soil conservation, Watershed development 2519.62

iii Others (Tissue culture, Agri bio-technology, Seed production, Bio pesticides/ fertilizers, Vermin composting)

796.46

Sub total 3633.19

C Ancillary activities i Food and Agro processing 4725.00 ii Others (Loans to Cooperative Societies of farmers for disposing of their

produce, Agri Clinics/ Agri Business Centres, Loans to PACS / FSS/ LAMPS, Loans to MFIs for on lending)

176.40

Sub total 4901.40

Total Agriculture 192129.47 II Micro, Small and Medium Enterprises

i MSME – Working capital 8304.84 ii MSME – Investment credit 41524.20

Total MSME 49829.04 III Export Credit 72.00

IV Education 2700.00 V Housing 7920.00

VI Renewable Energy 369.00 VII Others (Loans to SHGs/ JLGs, loans to distressed persons to prepay non-

institutional lenders, PMJDY, loans to state sponsored organisations for SC/ST)

4900.00

VIII Social Infrastructure involving bank credit 1080.00 Total Priority sector 258999.51

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BROAD SECTOR-WISE PLP PROJECTIONS – 2016-17

DISTRICT MAP OF SATNA

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