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EXECUTIVE SUMMARY

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

agriculture and allied sector’. b) Jhabua district is situated in the Western part of Madhya Pradesh. It has 06 blocks with

a total geographical area of 3539 sq. km. constituting 1.06% of the total area of the State. The average rainfall of the district is 828 mm per annum which precipitates in about 74 days. The district population (2011 Census) is 10.24 with 8.39 lakhs in rural areas. The population below poverty line is 54%. The Gross Domestic Product (GDP) of the district during 2012-13 was 1.55% of the state GDP. The total irrigated area as a percentage to net sown area is 34.22%.

c) Ground Level Credit Flow (GLC): Total GLC of the district under priority sector

which was ₹410.13 crore during 2012-13, increased to ₹534.14 crore during 2013-14

and further to ₹ 612.15 crore during 2014-15. The agricultural loans issued during the

last three years were ₹359.38 crore, ₹462.52 crore and ₹494.66 crore respectively.

The disbursements under NFS (incl. OPS) during the above period were ₹50.75 crore,

₹71.61 crore and ₹117.48 crore respectively. The share of agriculture in GLC which

stood at 86.51% in 2013-14 has decreased to 80.80% during 2014-15. The Agriculture Term Loan constituted 4.04% of the total agriculture lending during 2014-15.

d) Highlights of banking benchmarks: The district has 63 bank branches with 27

branches of Commercial Banks, 21 branches of Gramin Bank, 13 branches of DCCB, 2 branches of CARD Bank and 45 PACS. The performance of banks in achieving the parameters stipulated by RBI was satisfactory under Priority Sector Advances such as CD ratio of 80.20%, PSA advances of 90.73%, Agricultural Advances of 63.11%, respectively. Submission of LBRs by banks has been not satisfactory and needs to be improved. Achievement under ACP 2014-15 at ₹612.15 crore formed 99.60% 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 as reported by the Banks.

e) Sectoral assessment of potential : 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 Exhibit I. The potential has been assessed at ₹.1049.42 crore

as against ₹.791.55 crore for the year 2015-16 showing 24.58% growth over previous

year. The potential under Farm Credit ₹.863.77 crore which include Crop production

₹.604.15 crore and Term loan for agriculture and allied activities ₹.259.62 crore,

Agriculture Infrastructure ₹.7.32 crore, Ancillary activities ₹.9.26 crore, MSME ₹. 73.08

crore. The potential envisaged first time for the year 2016-17 include Education ₹.12.69

crore, Housing ₹.48.96 crore, Renewable energy ₹.0.57 crore, Others ₹.18.00 crore and

Social Infrastructure ₹.15.75 crore. under various activities shares of agriculture (Farm

Credit, Agriculture infrastructure and Ancillary activities), MSME, Education, Housing, Renewable energy, others and social Infrastructure are be 83.89%, 6.96%, 1.20%, 4.66%, 0.05%, 1.71% and 1.50% respectively. The potential has been assessed keeping in view the RBI’s priority sectors guidelines, GoI/GoMP’s priorities, existing/likely improvements in infrastructure, past GLC, revision in SoF/Unit Cost and various subsidy schemes of GoI/GoMP. (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 Exhibit I.

f) Some of the major constraints envisaged in achieving the potential assessed are banks are reluctuant to give term loans due to increasing NPAs, farmers are not

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willing to shift for advanced farming and not interested to take investment credit as term loan for Agriculture activity etc. Implementation of Vision 2018 document of GoMP would go a long way in realizing the potentials assessed.

I. 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 Dairy and Poultry (Kadaknath). Tentative banking plans have been prepared for these activities. An estimated amount of ₹195.42 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 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.

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

road, Electricity, etc. where the ranking of the district is better than the State average. However certain other indicators such as Literacy rate, irrigated area to net sown area etc are lower than the State average. Incidence of poverty is higher than State average. Infrastructure facilities act as catalysts for development. Under RIDF, 41 projects was sanctioned by NABARD for the district.

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, establishment of poultry/fish hatcheries, establishment of fish markets, improving road network, uninterrupted power supply to the industries, etc.

III. 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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Appendix A to Annexure 1

Broad Sector wise PLP projections - 2016-17 ( ₹ Lakh)

Sr No Particulars PLP projections 2016-17

A Farm Credit

i Crop production, maintenance and marketing 60415.08

ii Term loan for agriculture and allied activities 25962.16

Sub total 86377.24

B Agriculture Infrastructure 732.93

C Ancillary Activities 926.10

I Total Credit potential for agriculture 88036.27

II Micro small and medium enterprise 7308.96

III Export credit 0.00

IV Education 1269.00

V Housing 4896.00

VI Renewal Energy 57.24

VII Others 1800.00

VIII Social Infrastructure involving bank credit 1575.00

Total priority sector ( I to VIII) 104942.47

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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 60415.08

II Water resources 10040.13

III Farm mechanization 9507.20

IV Plantation and horticulture 3315.92

V Forestry and Wasteland Development 103.76

VI Animal Husbandry-Dairy 2295.18

VII Animal Husbandry-Poultry 127.08

VII Animal Husbandry-Sheep, goat, piggery 211.81

IX Fisheries 240.48

X Others-Bullock, Bullock cart 120.60

Sub Total 86377.24

B Agriculture Infrastructure

I Construction of storage facilities (warehouse, cold storage)

131.46

II Land Development, soil conservation, watershed development

477.45

II Others( Tissue culture, Seed production, bio pesticide/fertilizer, vermin compost)

124.02

Sub total 732.93

C Ancilliary activites

I Food and agro processing 584.10

II Others ( Loans to agriclinincs/agri business center)

342.00

Sub total 926.10

Total agriculture 88036.27

II Micro, small and medium enterprise

I MSME-Working capital 2022.00

II MSME-Investment credit 5286.96

Total MSME 7308.96

III Export credit 0.00

IV Education 1269.00

V Housing 4896.00

VI Renewal Energy 57.24

VII Others ( Loans to SHG/JLG, PMJDY) 1800.00

VIII Social Infrastructure involving bank credit 1575.00

Total Priority Sector 104942.47

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BROAD SECTOR-WISE PLP PROJECTIONS – 2016-17

DISTRICT MAP OF JHABUA

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