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EXECUTIVE SUMMARY 1. Introduction Ratlam district is situated in the Malva Region-2 in Western part of Madhya Pradesh. It has 06 blocks with a total geographical area of 4864 sq. km constituting 2.00% of the total area of the State. The average rainfall of the district is 895.96 mm per annum which precipitates in about 130 days. The district population (2011 Census) is 14.54 lakh with 10.19 lakh in rural areas. The population below poverty line is 5.78%. The Gross Domestic Product (GDP) of the district is 2.42% of the state GDP. The total irrigated area as a percentage to net sown area 20.42% . As on 31.3.2015, there were 2116 small and tiny industries with an investment of ₹561.00 crore providing employment to 20430 persons, 284 Large and Medium Industrial Units with total investment of ₹. 1935.00crore providing employment to 14564 persons and 35 Mega Industries with an investment of ₹.1260.00 crore providing employment to 8400 persons established in the district. 2. Review of Ground Level Credit (GLC) Total GLC of the district under priority sector which was ₹. 1268.64crore during 2012-13, increased to 1497.24crore during 2013-14 and further to ₹. 1869.22crore during 2014-15. The agricultural loans issued during the last three years were ₹.1007.91crore, ₹.1154.95 crore and ₹.1531.49 crore respectively. The disbursements under NFS (including OPS) during the above period were ₹.260.53 crore, ₹.342.29 crore and ₹.337.73 crore respectively. The share of agriculture in GLC which stood at 14.00% in 2013-14 has increased to 81.93% during 2014-15. 3. Sectoral assessment of potential a) 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 the year 2016-17 period co-terminus with the XII Five Year Plan has been assessed and presented in Annexure I. The potential for priority sector lending for the year 2016-17 has been assessed at ₹.2888.87 crore. While the potential under crop loans has been assessed at ₹.1525.87crore, that of agriculture term loans at ₹.486.49 crore. Projections under MSME244.11,Export credit3.70 crores,Education45.00 crores,, housing 102.44 crores, R.E. 3.46 crores, and others 169.00 crores have been assessed. The share of crop loan, agriculture term loan, MSME is 52.81%, 29%, 8.5% respectively. The Credit Linked Subsidy Schemes of GOI implemented through NABARD such as Dairy Entrepreneurship Development Scheme; Venture Capital Fund for Poultry, Construction / renovation of Rural Godowns, Scheme for Development of Agriculture Marketing Infrastructure Grading and Standardisation etc., are expected to facilitate creation of rural infrastructure through credit intensification from banks. Farmers have adopted dairy and plantation & horticulture as their second important Occupation due to change in weather condition

b) Major constraints / infrastructure gaps in increasing the credit flow include inadequate extension support, lack of post harvest facilities for horticulture crops, absence of milk routes in some portion of the district, etc., in rural areas. 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.

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4. Infrastructure The district fares fairly well under some of the infrastructure indicators such as roads, schools, colleges and IT institutes, hospitals, transportations etc. where the ranking of the district is better than the State average. However certain other indicators such as good quality of concrete roads for both urban and rural areas, sanitations, drinking water, good quality of school buildings and hostels, working women and men hostels, a number of good quality of hospitals and clinics and dedicated doctors and nursing staffs at rural areas, public vehicle parking and gardens, tourisms recognitions 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,43 projects with an outlay of ₹.68.85 crore and loan component of ₹.68.85 crore was sanctioned by NABARD for the district covering mainly rural roads and bridges, minor irrigation projects, power projects, etc. The following are some of the critical infrastructure projects / areas which when provided will help to a great extent in overall development of the district. a) Tambolia Dam for 200 hac, Bajna b) Patli Check Dam, Palsodi, Ratlam c) Thikria Dam 125 hec., Sailana d) Maintenance & Extension of Irrigation canals of Dholawad Dam, Bajna e) Kaneri Dam (Proposal submitted)

5. New schemes of NABARD: In order to improve the income of the farmers, NABARD has launched (i) a Pilot Project on Augmenting the Productivity of Lead Crops through adoption of sustainable agricultural practices, (ii) WADI projects for sustainable increase in the income of farmers of ST Category,(iii) Village development programme for creating awareness of various developmental schemes of GOI and GoMP.etc. 6. Government sponsored programmes The GoI & GoMP have introduced several schemes to encourage investments in rural areas for increasing the production and productivity of agriculture & related sectors and also to increase the earnings of the rural masses. Important programmes include SGSY, SJSRY, NRLM, PMEGP, Capital Investment Subsidy Schemes, Balaram Talab Scheme, Rani Durgavati Swarojgar Yojana, Parivar Mulak Ikar Sthapana Yojana, Rashtriya Kishori Shakti Yojana, Ladli Lakshmi Yojana, Sabala Yojana, etc. The recovery performance under Govt. sponsored programmes is a cause of concern and needs to be tackled through coordinated efforts of banks, revenue officials and line departments. 7. Informal credit delivery system: Micro finance through Self Help Groups (SHGs) is in vogue in the district for past several years. Of the total 15117 SHGs in the district,963 have been credit linked with banks with financial assistance of ₹. 744.02 crore till 31 March 2015. The various agencies which are promoting SHGs include NGOs (08), Women & Child Devt. Dept, Ratlam CBs,(SBI&CBI) Ratlam DCCB and Central Madhya Pradesh Gramin Bank. In order to upscale the SHG programme, SHPI proposal has been sanctioned to Gramin Vikas Trust, Society for Natural Resouce Management and Social Welfare, Shreepati Shikshan Samajik Lok Kalyan Samiti

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and Arunodaya Sarveshwari Lok Kalyan Samiti, Jaora based on BPL population, there is a potential for forming another 4000 SHGs in the district during the next three years. 8. Performance of credit agencies: District has 140 bank branches with 104 branches of Commercial Banks, 14 branches of Gramin Bank, 22 branches of DCCB, 2 branches of LDB, besides 103 PACS affiliated to the DCCB, which cater to the credit needs of the rural population. The performance of banks in achieving the parameters stipulated by RBI was satisfactory under Priority Sector Advances such as CD ratio of 79.00%, PSA advances of 114.00%, Agricultural Advances of 103.00%, as against the stipulation of 65%, 40% and 18% respectively. Submission of LBRs by banks needs to be improved. Achievement under ACP 2013-14 at ₹.1497.248 crore formed 106.00% of the target. Implementation of Vaidyanathan Committee Package and Core Banking Solution (CBS) are expected to make the DCCB and PACS in the district financially strong and better equipped to serve the rural populace better. 9. Financial Inclusion: In order to ensure access to financial services and timely and adequate credit at an affordable cost by the vulnerable groups, including poor farmers, weaker sections and low income groups, NABARD is closely involved with the Financial Inclusion programme of GoI/RBI and assisting the Financial Institutions in various ways. The objective of the Comprehensive Financial Inclusion would be to provide a holistic set of services encompassing all the financial services viz., a basic ‘No-Frills’ banking account, a savings product, money transfer facilities, small loans and overdrafts for productive, personal and other purposes, insurance, pension, financial counseling, etc. 10. Farmers’ response: Feedback from farmers from different blocks was obtained through direct interactions/ Farmers Clubs regarding their expectations. Farmers expect better irrigation facilities, supply of quality power, good quality seeds, fertilisers and pesticides, concessional interest rates from all agencies for their loans, timely and adequate credit from banks, good infrastructural facilities like, roads, transport, communication facilities, good marketing facilities and better returns for their agricultural produce. 11. 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. Sector / Activity Financial Projection 2016-17

A Farm Credit

I Crop Production, Maintenance and Marketing 152587.50

Ii Term Investment for Agriculture and Allied Activities

48648.89

Total Investment under Agriculture and Allied Activities(1+2)

201236.39

B Agriculture Infrastructure 19614.07

C Ancillary Activities 1580.05

i Credit Potential for Agriculture (A+B+C) 222430.51

ii Micro, Small and Medium Enterprises 24411.32

iii Export Credit 370.00

iv Education 4500.00

v Housing 10244.40

vi Renewal Energy 346.86

vii Other (Loans to SHGs/ JLGs & PMJDY) 16900.00

viii Social Infrastructure Involving Bank Credit 9684.00

Total Priority Sector (i to viii) 288887.09

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Appendix B to Annexure 1

Summary of Sector/Sub Sector wise PLP projections - 2016-17 ( ₹ Lakh)

Sr. no. Particulars PLP Projection 2016-17

I Credit Potential for Agriculture A Farm Credit

i Crop Production, Maintenance and Marketing 152587.50

ii Water Resources 10877.06

iii Farm Mechanisation 16352.62

iv Plantation and Horticulture 12655.45

v Forestry and Wasteland Development 186.21

vi Animal Husbandry- Dairy 4269.75

vii Animal Husbandry- Poultry 306.20

viii Animal Husbandry- Sheep, Goat and piggery, etc. 2967.10

ix Fisheries 327.10

x Others- Bullock, Bullock Cart, etc. 707.40

A- Sub Total (1+10) 201236.39

B Agriculture Infrastructure

i Construction of Storage facilities ( Warehouse, Market Yards, Cold storage units)

10734.00

ii Land Development, Soil conservation, Watershed development

2529.18

iii Others (Tissue Culture, Seed production, vermin composting 2066.40

B-Sub Total (i+iii) 15329.58

C Ancillary Activities

i Food and Agro Processing 4284.49

ii Others (Agri Clinics/ Agri Business Centres, Farmers’ Producers Organisation, Others)

1580.05

C- Sub Total (i+ii) 5864.54

Total Agriculture 222430.51

ii Micro, Small and Medium Enterprises

i MSME- Investment Credit 22191.97

ii MSME- Working Capital 2219.35

Total MSME (i+ii) 24411.32

III Export Credit 370.00

IV Education 4500.00

V Housing 10244.40

VI Renewable Energy 346.86

VII Others (Loans to SHGs/ JLGs, PMJDY) 16900.00

VIII Social Infrastructure involving bank credit 9684.00

Total Priority Sector 288887.09

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BROAD SECTOR-WISE PLP PROJECTIONS – 2016-17

DISTRICT MAP OF

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