CORPORATE MISSION
“Promote sustainable and equitable agriculture
and rural prosperity through effective credit
support,
related
services,
institution
development and other innovative initiatives”.
1
POTENTIAL LINKED CREDIT PLAN
(2005-2006)
DISTRICT : BONGAIGAON, ASSAM
National Bank for Agriculture and Rural Development
Assam Regional Office
Laxmi Bhavan, Panbazar, Guwahati - 781 001
Tel: 2540873, 2540875, 2523872, 2519247 Fax: 2541131
e-mail : [email protected]
1
FOREWORD
NABARD has long been advocating decentralized credit interventions for agricultural and rural
development.
To facilitate this process, NABARD prepares Potential Linked Credit Plans (PLPs) every
year to indicate precisely the potential available in different sub-sectors in agriculture and RNFS in the
districts.
Tapping these potentials call for concerted action on the part of the banks, Government, NGOs
and other related organisations.
The recent mandate of the GoI to double the agriculture credit flow in three years offers a golden opportunity
to tap the maximum potential available for agricultural and rural development projects in the districts.
Extension of facilities like rescheduling of past debts of farmers affected by natural calamities or in
distress/arrears, One-Time Settlement (OTS), institutional loans for paying of the debts to the money lenders,
etc., are some of the measures enabling the farmers to get fresh eligibility to avail bank loans. The banks have
also been advised to cover at least 100 new farmers per branches, financing 10 agri-clinics per district, etc.
Each of such branches will also have to formulate and implement 2-3 new investment projects. NABARD has
already circulated in the form of CDs (also available with DDMs) amongst the banks a large number of model
bankable schemes.
The district administration has a crucial role to play in realising the mandate of the GoI by monitoring
implementation of the scheme of doubling of agriculture credit. The District Level Technical Committees
(DLTCs) will have to periodically meet and fix the scale of finance for various types of crops so that delayed
credit and under-financing of the crops are avoided while issuing crop loans. The BLBCs and the DCCs will
have to periodically meet, discuss and sort out the issues arising out of the implementation of various
agricultural schemes. The levels of participation in such meetings will have to be high enough to enable suitable
decision making.
The NGOs will have to step in to address the issues outside the purview of the district administration and offer
solutions in smoothening the flow of agriculture credit in the districts.
In short, the Aggregate Supply Function at the district level will have to be significantly pushed up from its
present level. This will be possible only with the concerted and coordinated efforts of all concerned.
A. K. Bandyopadhayay
Chief General Manager
Assam Regional Office
NABARD: GUWAHATI
1
INDEX
Particulars
Page No.
Foreword
Summary
Chapter - 1
Chapter - 2
1
Introduction
5
District Profile
Exhibit - I
District Profile at a glance
8
Exhibit - II
Key Banking Statistics
11
Exhibit - III
Detailed information on a selected commodity
12
Chapter - 3
Sectoral Review and Projection of Potentials
I Production Credit
1. Crop loan
14
II Investment Credit for Agriculture and Allied Activities
A. Investment Credit for Agriculture
2. Minor Irrigation
21
3. Land Development
25
4. Farm Mechanization
28
5. Plantation & Horticulture
30
6. Forestry and Wasteland Development
35
7. Sericulture
37
B. Investment Credit for Allied Activities
8. Dairy Development
9. Poultry
42
10. Sheep, Goat and Piggery
44
11. Fisheries
12. Storage/Godowns and Market yard
46
13. Non-conventional energy sources/Bio-gas
14. Other Allied Activities (Bullock/Bullock carts,
etc.)
III.
IV.
Chapter - 4
Chapter - 5
39
Credit for Non-farm Sector Activities
Other Priority and Non-Priority Sectors
Support requirement for Development of Weaker Sections of
the Society
Performance of Credit Agencies
49
50
54
56
63
65
72
Chapter - 6
Role of Informal Credit Delivery System
76
Chapter - 7
Policy Initiatives
78
Chapter - 8
Annexure I
Response from Farmers
Activity-wise/Block-wise potential linked physical and
financial estimates for 2005-06
An Overview of Flow of Credit during the last four years
89
Annexure II
Abbreviations
List of Senior Officers of RO
Address List of DDM offices in Assam
2
BROAD SECTOR-WISE PLP PROJECTIONS
FOR THE YEAR 2005-06
(Rs. lakh)
Sl.
No.
Financial
Projections
Sector
186.95
1
CROP PRODUCTION
2
TERM INVESTMENT
ACTIVITIES
3
TOTAL INVESTMENT UNDER AGRICULTURE AND ALLIED
ACTIVITIES (1+2)
939.19
4
NON FARM SECTOR
558.94
5
OTHER PRIORITY SECTOR
1077.15
6
TOTAL PRIORITY SECTOR (3+4+5)
2,575.28
FOR
AGRICULTURE
3
AND
ALLIED
752.24
SUMMARY
Consequent upon the Notification for the formation of BTC as passed by LOK SABHHA on 6th August, 2003
and Government of India’s notification dated 08 September 2003, the Governor of Assam is pleased to notify
that “ The Bodoland Territorial Areas District “under the sixth schedule to the constitution ( AMENDMENT )
BILL ,2003 has formed four Administrative units viz: Kokrajhar, Chirang, Baksha and Udalguri district. The
Bodoland Territorial Council was
officially formed after the swearing in ceremony of interim Council
members on 7th December 2003.
After the formation of BTAD, the CHIRANG DISTRICT has been carved out of Kokrajhar, Bongaigaon and
Barpeta districts. According to BTC sources, the total population of the district is 3,43,626. There are two SubDivisions in the Chirang district. They are at Kajalgaon and Bijni. Chirang district is bounded by Bhutan on the
North, by Kokrajhar district on the West , by Bongaigaon district on the South and by Baksha district on the
East. There is dense forest in the foot hills of the Royal Bhutan. The Manas National wild Life Park is the
centre for tourist attraction of the district . Manners Wild Life Park was declared as a National Park in 1990,
located at the foothills of the Bhutan with unique Bio-diversity . The National Park is included in the Tiger
Reserve network under the Tiger project in 1973 and international importance under UNESCO’S WORLD
HERITAGE convention in 1988 as well as Biosphere reserve in 1989.
The undivided Bongaigaon district is situated in a humid sub-tropical climate. There is high rainfall and
humidity .The economy of Bongaigaon and Chirang district is primarily agrarian in nature. Therefore, the
economic development of both the district is dependent on agriculture and allied activities. The Potential
Linked Credit Plan (PLPs) of Bongaigaon and Chirang district envisages deployment of bank credit to the tune
of Rs.2583.15 lakh for the development of various sectors during the year 2005-06. The share of agriculture and
allied activities, non-farm sector and other priority sector are in the range of 37%. 12% and 51% respectively.
Although the agro- climatic condition of the district is highly conducive for development of agricultural
and allied activities, the constraints on infrastructural facilities coupled with other socio- economic
conditions prevailing in the district have hampered the development of the district. The institutional credit
flow to various sectors have also been affected due to very poor recovery performance resulting in high level of
NPAs.
The major district level constraints, infrastructure and non credit inputs to be created and the action to be
initiated by various agencies are as follows:
Crop Loans :
Constraints :
Lack of knowledge of the latest crop husbandry practices.
Lack of assured inputs and support of infrastructures for storing / marketing of outputs in the district.
Lack of proper co-ordination between the Agriculture Department Officials and the bankers affected the
progress of KISAN CREDIT CARDs in the district.
Poor performance by all credit institutions in lending agricutural and allied activities.
4
Action suggested/ Recommended :The Agriculture Department should take initiative to improve the infrastructures to farmers, transparency in
selection of beneficiaries and proper implementation of Government and NABARD’s Schemes in the
district .
Bankers should take initiative for lending in this activity.
(Name of the implementing Agency : Agricultural Department, Bongaigaon)
INVESTMENT CREDIT FOR AGRICULTURE
Minor Irrigation
Constraints
Non availability of block-wise data on surface and ground water irrigation facilities in the district. Most of the
projects initiated by the state are incomplete due to financial crunch.
Lack of adequate infrastructure support, proper co-ordination among the banks and the line departments of
the State Government.
Lack of awareness among the farmers about the scientific irrigation management and crop husbandry
practices.
Action suggested/ Recommended:
The line department should take initiative to complete all the incomplete projects and also revive the non
functional projects for the benefit of the farmers.
Immediate survey should be initiated by the line department for assessing the availability and potential of
the surface and ground water in the district.
(Name of the implementing Agency : Irrigation Department, Bongaigaon.)
INVESTMENT CREDIT FOR ALLIED ACTIVITIES
Animal Husbandry
Constraints
Inadequate facilities for animal breeding , medicines, Artificial insemination and veterinary aid centers in
the district.
Lack of co-operation among the line department and bankers affecting the dairy development and other
activities in the district.
Action suggested / Recommended:
There is an urgent need for training dairy/ poultry / piggery farmers / entrepreneurs and creating adequate
marketing facilities.
Need to improve co-ordination between the line department and bankers for improved credit support to
farmers.
5
Establishment of adequate infrastructure both by the state and the private agencies.
A few agriclinics/ agribusiness centre could be explored.
Veterinary department may formulate project on Animal Husbandry for Area Development in the district.
(Name of the implementing Agency;- District Veterinary Office, Bongaigaon.)
SUPPORT REQUIREMENT FOR DEVELOPMENT OF WEAKER SECTIONS OF THE SOCIETY
Despite the introduction of poverty alleviation programmes like SGSY, APTDC, ASDC, O.B.C.(F.O.I.G.S.),
financial assistance to educated unemployed youth like PRMY, KVIC, KVIB, etc., the progress and
development of the society in the district is far behind compared to others district of the state. Reasons are as
under:
Lack of awareness among the masses about formation of SHGs under SGSY Schemes.
Misutilisation of PRMY and KVIC loans by beneficiaries, poor recovery performance, etc.
Action suggested / Recommended
The line Department of Government should take care of transparency in identification of beneficiaries and
proper implementation of schemes.
Better implementation of government sponsored programmes like SGSY, PRMY, KVIC and qualitative
credit support to poor women in rural areas,
The NGOs and SHGs are expected to play an important role in poverty alleviation, education , watershed
management, rural health, etc.
Women oriented REDP with escort and support services be organized and supported by development
agencies like DIC, Banks, etc.
NGOs and other development agencies may formulate feasible proposals to support the women members by
utilizing promotional and credit assistance available from NABARD under ARWIND and MAHIMA
Schemes.
Name of the implementing agency : DRDA, DIC and KVIC.
6
SUMMARY
SECTOR WISE PLP PROJECTIONS AND
ESTIMATED CREDIT FLOW DURING 2005-2006
NAME OF THE DISTRICT : BONGAIGAON
STATE :
ASSAM
(Rs lakh)
Sr
No.
Sector
PLP Projection
Likely Credit Flow
Resource Gap
1
Minor Irrigation
44.00
12.00
32.00
2
Land Development
13.33
5.00
8.33
3
Farm Mechanisation
208.80
50.00
158.80
4
Plantation & Horticulture
23.88
10.00
13.88
5
Sericulture
14.79
6.00
8.79
6
Forestry
and
Development
22.18
10.00
12.18
7
Dairy
120.40
80.00
40.40
8
Poultry
109.30
50.00
59.30
9
Sheep-Goatery-Piggery
78.75
70.00
8.75
10 Fisheries
79.65
50.00
29.65
11 Bio Gas
2.27
1.00
1.27
31.20
10.00
21.20
3.69
1.27
2.42
752.24
355.27
396.97
186.95
180.00
6.95
939.19
535.27
403.92
558.94
350.00
208.94
1077.15
900.00
177.15
2575.28
1785.27
790.01
Wasteland
12 Storage Godown / Market Yard
13 Bullock & Carts
Total Term loan
14 Crop Loan
Total Agricultural Credit
15 Non Farm Sector
16 Other Priority Sector
GRAND TOTAL
7
CHAPTER - 1
INTRODUCTION
Under the decentralised credit planning process, banks prepared District Credit Plans (DCPs) in
consultation and coordination with other banks and Government functionaries operating in the respective
districts. Although the District Credit Plans (DCPs) underwent several changes over the period, these
plans essentially remained as an annual budget allocation plan of every bank, divorced from the ground
level potential/absorption capacity. The DCPs thus became supply oriented documents for allocation of
resources amongst the bankers instead of becoming a potential/demand based instrument. In this backdrop,
NABARD took the initiative in 1988-89 and prepared the district-wise Potential Linked Credit Plans
(PLPs) for the agriculture and rural sector with a view to removing the above deficiencies.
The PLP endeavoured to reflect in a more realistic way, the ground level potentials and credit and non-credit
linkages. The PLP is demand driven as its basic objective is to map the existing potentials for development and
evolve an appropriate mechanism through which such potentials could be harnessed over a specified time frame.
Over the years, refinements have been made in preparation of the PLPs to address new and emerging areas of
development and reckoning the various initiatives of the Central and State Governments.
The broad strategy for formulation of PLPs envisages estimation of long term potentials (in terms of physical
units) duly phased out over annual duration in each sub sector of agriculture and rural development taking into
account the natural and human resource endowments. The approach adopted for preparation of PLPs focuses on
bottom-up planning process. The potentials are first estimated block-wise and then aggregated to form the PLP
for the district as a whole. For the purpose of translating the potentials into credit plans, the infrastructure
requirements are identified and compared with the currently available infrastructure. The requirement of
infrastructure support is also assessed on the basis of various developmental schemes/programmes
being run or proposed by Central Government/State Government/Local Bodies, etc., in the districts. The past
trends of investment made in district, Sub-Sectors, their relative growth rates, capabilities and constraints in
implementation, etc., are also kept in view while phasing the identified potentials as year -wise credit plans.
Base PLPs for a five-year period co-terminus with the Tenth Five Year Plan [2002-07] for all the districts
in the country were prepared and these
were updated annually to bring out the required revisions
/modifications in tune with the changing times and necessities. In order to make the projections in the PLP
as realistic as possible, detailed discussions were held with the officials of various developmental departments in
the State Government, Bankers, Non Governmental Agencies etc. Further, the Agriculture Policy (2004) and the
Common Minimum Programme [CMP] of the UPA Govt seek to actualize the vast untapped potential of Indian
Agriculture, strengthen rural infrastructure, promote value addition, accelerate growth of agri- business, create
employment in rural areas and secure a fair standard of living for farmers and agricultural workers. For Assam
agriculture, the year 2004-05 has been one of the worst affected due to unprecedented floods during July 2004.
As part of CMP, the GOI have directed the banks to double the flow of credit to agriculture over three
years [2004-05 to 06-07]. Towards this objective, four schemes viz:
i.
Relief to farmers who are distressed due to successive drought/ flood/ other calamities,
ii. Scheme for providing relief to farmers in arrears,
8
iii. One Time Settlement [OTS] scheme for SM and MF and
iv. Scheme for redemption of debts of farmers from non-institutional sources have been introduced. These
schemes are expected to create additional eligibility for the farmers to avail bank loans during 2004-05
and there after.
Further, the collateral for agriculture loan has been relaxed for loans upto Rs.50,000 and for non-farm sector
loans upto Rs.5 lakh. These measures have been kept in view while preparing PLPs for the year 2005-06.
NABARD has been constantly endeavouring to provide various technical and developmental support for
accelerating and smoothening the flow of credit to the rural sector. To this end in view, it has prepared a
number of area based bankable schemes covering bamboo, patchouli, safed musli, dairy, piggery, vermicompost, etc., and offered to the banks for implementing them. NABARD has also been introducing
refinement in the methodology of preparing PLPs and making improvement in its contents so that the
PLP could be used as an essential support / reference document to the District Credit Plans.
With the advent of liberalisation and globalisation process of Indian Economy in general and agriculture sector
in particular, the agricultural sector needs to be more responsive and competitive to face the external challenges.
This would necessitate considerable investments in infrastructure, technology, post harvest management,
research and development, extension services, etc. Credit planning will therefore continue to play a significant
role in ensuring prioritization and making available adequate credit to various sectors of rural economy.
Towards this end, the present PLP document for the year 2005-06 will prove to be useful to all agencies and
functionaries associated with the rural development especially to the bankers in formulating the Service Area
Plans / District Credit Plans by duly recognising the potentials available in each sector of the district economy.
9
CHAPTER - 2
EXHIBIT-I
DISTRICT PROFILE AT A GLANCE
(As on 31 March 2004)
1
2
Name of the district
Geographical area (sq.km)
(a)
No. of blocks/talukas
(b)
(c)
(d)
(e)
903 (1991 census)
816
No. of villages (inhabited)
No. of villages electrified
No. of villages connected by all weather
roads
No.of villages having supply of potable water
3
Rainfall (mm)
4
Agro-climatic Region & Zone
5
Population(in ‘000)
(a)
Male
(b)
Female
(c)
Total
6
Bongaigaon
2510 sq. km.
7
(d)
Population density / sq km.
(e)
Population below poverty line
430
1063
(habitations)
Normal 250 to 350 mm
Actual ( 2003-04) 3105.8
mm
Lower Brahmaputra valley Zone
465,970
440,345
906,315
361 per sq. km.
86744
(1991 census)
Classification of workers
(a)
Cultivators
(b)
Of (a) Small Farmers
(b) Marginal Farmers
(c)
Agricultural Labourers
(d)
Artisans
(e)
(f)
(g)
113,558
48934
28497
52,794
1,888
House-hold Cottage industries
Allied Agro-activities
Other workers
Women
SC -ST
8,312
3,182
119520
6454
13641
1998-99
census
251000 ha
93,857
368,756
11,220
Land utilisations (Give the latest available data)
8
Geographical area (in ha.)
Net Sown area (in ha.)
Forest
Fallow land (in ha.)
Land not available for cultivation (in ha.)
Cropping Intensity
Area brought under high yielding variety
seeds (in ha.)
Size of holdings
a.
a. Less than 1 ha.
b.
b. Between 1 and 2 ha.
7
(a)
(b)
(c)
(d)
(e)
(f)
(g)
40,528
162%
76,868
No.
44877
48934
1
(%)
44%
47%
Area(ha.)
(%)
23758
25
%
25 %
23369
c.
c. Above 2 ha
10646
TOTAL
11%
20903
104457
22 %
93857
Irrigation (in ha)
9
a.Net irrigated area
22,897
b.By channels
11,048
c.By wells
2,569
d.By other Sources (specify) ELIS
3,518
E. By STWs
21,378
Agriculture Support Facilities
10
Nos.
N.A.
146 nos
N.A.
Seed
Fertilizers
Pesticides depots
Rural Markets/Mandis
RuralGodowns
Cold Storages
Nos :
Nil
Nos :
Nil
47 nos
N.A.
Total capacity
- nil
Total capacity
- nil
Animal Husbandry (1997 census)
a.
Plough animals
b
Dairy Animals
87,520
(i) Cows
11
(ii) Buffaloes
c.
d.
e.
f.
12
13.
97,886
5,915
Sheep
Goat
Pigs
Poultry
7820
122799
20,541
2,082,165
Consumption of Organic and Chemical Fertiliser
and pesticides per ha.
i) Organic ii) Chem. Fertilizer
04)
iii) Pesticides
40kg/ha
77/ha( 20030.08 kg/ha
Predominant economic activities prevalent in the district
In spite of large number of ancillary units of major industries like BRPL, IOC, (LPG) Ltd. Ashok Paper Mill etc.
agriculture still remains the major economic activity of the district. Animal husbandry, fisheries, sericulture and
horticulture are other allied economic activities in the district..
14.
Major food, commercial and plantation/ horticultural crops
a.
Food crops: Paddy (winter and summer), Wheat, and Pulses.
b.
Commercial crops: Oil seeds (Rape seed, Mustard, Sesame, and Linseed), Spices, Jute and Tuber
Crops.
c.
Horticulture crops: Pineapple, Banana, Coconut, Jackfruit, Betelvine and Arecanut etc.
15.
Special/ additional/ other features of the district
a.
Consequent upon the formation of BTAD, three new district viz. Chirang, Baska and
Udalguri have been formed from the part of the existing district of Kokrajhar, Bongaigaon ,Barpeta,
2
Nalbari, Kamrup , Darrang and Sonitpur district. Chirang district under the BAC (Bodo Autonomous
Council). Dangtol, Manikpur, Borobazar and part of Sidli Chirang block come under BAC with total
population of 3,63,830.
b.
While communication has been perpetual problem in most of the districts of Assam, Bongaigaon is
comparatively far better placed in terms of interconnectivity by means of roads, rail network and
waterways. With the completion of “Naranarayan Setu” the rail cum Road Bridge over Brahmaputra,
connecting Joghighopa on the north bank and Pancharatna on the south bank, the district has become
more important in the field of surface communication.
c.
The district has good potential for industrial development. The major industries are Bongaigaon
Refinery & Petrochemical Ltd. (BRPL), Bongaigaon Aluminum factory, New Bongaigaon Bottling
Plant, IOC (LPG) Ltd. Etc.
d.
Only 21.93% of the district is covered by forest which is adversely affecting the ecological balance of
the district .This needs to be developed through farm forestry and afforestation efforts by concerned
department.. The district is affected by recurrence of floods during rainy season from northern part of
the district by river Ai. It also result in high soil erosion. Earnest attention by the concerned authority is
required and permanent measure to control of flood as well as soil erosion are to be addressed by the
state urgently.
a.
Infrastructure project under execution with support from NABARD under RIDF
The following projects have been sanctioned to the Govt. of Assam under RIDF-V.
a)
Bridge projects : Five-bridge project with RIDF loan component of Rs. 403.10 lakhs, (total cost
Rs.533.80 lakhs) have been sanctioned in the district. An amount of Rs. 49.12 lakhs (12.2%) has since
been released so far towards advance. On completion of these projects, the connectivity to outside
markets will be improved.
b)
STW project : Bongaigaon district has also
been covered
under RIDF -V programme for
implementation of STW project covering 1300 STW and 5000 STWs under phase-I and phase -II
respectively.
c)
Important Socio – economic developments in the district.
d)
Despite all the hardships including the frequent outbreak of insurgency, bandh and ethnic violence, the
people of the district are working for the socio-economic development of the district.
e)
Agriculture is the most important economic activity in the district. Animal Husbandry, Fisheries and
Weaving are the traditional activity in the tribal dominated areas.
3
EXHIBIT II
ECONOMIC INDICATORS OF THE CREDIT DELIVERY SYSTEM - KEY BANKING STATISTICS
(Rs. Lakh)
Particulars
1 No. of banks
No. of Branches :
i) Rural
2 ii) Semi-urban
iii) Urban
Total
3 No. of Staff per branch/society
4 No. of loan accounts
5 No. of loan accounts per branch
6 Average population per branch
7 Average number of villages covered per branch /per society
9 Average deposits per branch
11
12
13
Growth in Deposits
a) 2002 Over 2001
b) 2003 Over 2002
c) 2004 Over 2003
Total loans outstanding as on 31.3.04
% Increase in Outstandings :
a) 2002 Over 2001
b) 2003 Over 2002
c) 2004 Over 2003
Loan outstanding per account
14 Loan outstanding per branch
CBs
Total
2
1
10
13
2
2
11
9
3
12
5
10
16
26
12
19
21
40
10
886
10,103
17,826
28,815
443
842
685
720
6,708
21,850
20,200
19,696
29
20
7,584 34,014.46
22
43,154.87
9
1,556.41
8 Total deposits as on 31 March 2004
10
RRBs
SCB
38.91
189.6
850.36
1,078.87
155.92
223.48
0.62
1891.93
846.58
607.97
4151.92
9513.30
-1087.32
6199.77
10583.36
-328.73
181.56
1,667.82
7,824.73
9,674.11
27.50
18.53
82.05
0.37
65.32 ()15.63
9.10
0.18
(-) 25.52
24.68
37.56
0.68
29.21
19.00
33.49
0.48
165.27
151.63
413.99
322.85
n/a
n/a
n/a
15 ST/MT/LT loans per ha.
n/a
16 % of agricultural advance to total advances as on 31.3.04
12.48
21.23
0.73
23.99
5.4
31.64
5.84
29.92
17 CD Ratio (agency-wise)
% of recoveries of loans to demand therefor :
As on 30.6.2000
18 As on 30.6.2001
As on 30.6.2002
As on 30.6. 2003
19 % of overdues to loan outstandings
9.73
7.73
6.051
10.83
12.47
20.67
30.10
9.76
6.51
15.12
11.54
36.15
8.36
14.49
13.71
13.50
12.91
23.9
22.29
44.18
20 % of net NPAs to total assets
16.34
15.66
17.88
17.53
21
Brief information relating to performance of credit agencies
(Cross refer with chapter V- Performance of credit agencies.
**
** There are 2 branches of cooperative bank, 26 commercial bank branches and 12 RRBs branches in the district.
The ASCARDB branch is not functioning. The performance of the credit institutions in the district is very poor in
lending to Agricultural sector. This has resulted in very low in CD Ratio in all banks. Due to non recovery of dues
the total NPA’s is 17.53% in the district as on 31.3.2004. The position can be improved if the banks and line
department take joint actions strategy for recovery by using the state machinery and support.
4
Exhibit -III
Detailed information on a selected commodity
1. Name of the District
: Bongaigaon
2. Profile of the commodity selected
:Banana, Potato, Pineapple
i.. Name of the commodity
:Banana, Potato, Pineapple
ii. Characteristics of the commodity: Banana- Feed ratoon cropping , maximum for three generation, most of
the banana is produced on small scale under different production system by farmers and total increase area upto
942 ha. and production 15% in the district. Youth Development Society (NGO) has started producing Biscuit
from Banana powder (experimental basis). Banana produced market surplus around 640 MT. per year. The
cultivation period of Banana is during April to August and harvesting period is all the year. Potato- Late season
is to be avoided. Potato grown in area 333.20 ha producing 12383 kg per ha. in the district. Potato cultivation
is during October/ November and harvesting is in the month January.
Pineapple: The pineapple cultivation covered 294 ha. and it produce 13% in the district. Pineapple cultivation is
during March/April and harvesting is during the month of June/July. Marketable surplus produce 160 mt. per
year which is transported to other various places.
There is a tremendous scope for establishment of pineapple processing unit in the district.
iii. Area under cultivation of the commodity selected (ha):
Area under rainfed cultivation in the district ( ha): Banana -942 ha, Pineapple -294 ha
Area under irrigation (ha)
: Potato 332.20 ha.
Total area under cultivation in the district ( blockwise (ha): 1. Bongaigaon S.Div. -1530 ha.
2.Bijni S.Div.-1902 ha
3.N. Salmara S. Div. -1326 ha
Percentage of farmers producing the commodity
:Banana-15%, Potato- 25%,Pineapple -13%
iv. Inputs
Inputs and quantity required
: Inadequate
Arrangements for input supply : Local market/ Rural haat.
Extension services available
: Available through Dist. Agriculture Department.
Problems faced in procuring inputs, if any: The farmers are facing problem in procuring inputs due to non
availability of rural godown etc. in interior area.
v. Output
Quantity of output produced
:Pineapple -18531 kg. per ha , Banana- 12164 kg. per ha, and Potato-12383
kg per ha.
Output for private Consumption
: Yes
5
Marketable surplus
: Yes, Banana produce 640 MT, pineapple -160 MT per year but Potato no
surplus produces in the district.
vi. Arrangement for marketing
Quality testing
: Not available
Warehousing /godown facilities
: Nil
Availability of support services such as KVKs : Nil
Processing facilities
:
Except Banana and potato, Pineapple processing is doing in Community
Canning and training centre, Bongaigaon by SANUP processing unit under the initiative of five educated
unemployed youth .
Marketing arrangements
:
There is no marketing arrangement from the Govt.
General pricing pattern
: There is no fix pricing pattern for the said commodity.
vii. Tie- up arrangements, if any
Contract farming, possibilities: No
viii. Availability of institutional credit
Institutional credit for production purposes:
yes
Institutional credit for marketing of crops : yes
Credit from other sources
: yes
ix. Value chain : The farmers produced and sale in the local market , through middle man and procured by the
whole seller in the district.
6
CHAPTER - 3
SECTORAL REVIEW AND PROJECTIONS OF POTENTIALS
I.
Production Credit
3.1
Crop Loans
3.1.1. Introduction
The economy of Bongaigaon district is basically agrarian in nature with about 80% of the
population dependent on agriculture. Paddy is the major crop. Other important crops include
oil seeds, pulses, cash crop like jute & vegetables etc. The agro climatic conditions of the
district are conducive for various agricultural activities. Agriculture in the district is
characterized by over dependence on rainfall, predominance of seasonal crops and traditional
methods of cultivation. However, after successful implementation of STW programme the
farmers are increasingly adopting improved agricultural practices. The cropping intensity is
162% . The soils of the district are either alluvial or a mixture of red and black soil. Total
geographical area of the district is 251000 ha. Of which present net cropped area is around
93857 ha. The area brought under high yielding variety seeds is around 76868 ha. The
estimated net irrigated area is 22897 ha. The total area covered is 21378 ha (15600 ha + 5778
ha) on installation of 10689 STWs under RIDF & ARIASP project. 1552 numbers of KCC
has been issued and disbursed by banks during the year 2003-04 in the district. GOI has
diverted banks to double the agriculture credit in three years starting from the year 2004-05. In
order to create eligibility, four schemes were introduced covering Farmers in distress. Farmers
in arrears of loan. One Time Settlement Scheme and providing credit to farmers having loan
from non institutional sources. Instructions have been issued to all banks to draw out a plan
and achieve the target. The progress is closing monitored by MoF, GoI.
3.1.2
Availability and gaps in infrastructure and support services
The Agricultural Department is headed by DAO and supported by 3 SDAOs, 2 specialist
under each SDAOs who in term are helped by 14 AEOs and 101 VLEWs (Village Level
Extension Workers). The Agricultural Engineering Wing is headed by 1 Assistant Engineer, 4
junior engineers, 1 foreman, 2 mechanics and 9 tractor operators. Assam Seed Corporation is
involved in supply of seeds, fertilizers , machines, tools, equipments etc. to farmers . There
are 927 registered FMC in the district. Special programme like ICDP, OPP and ARIASP are
under implementation in the district. The progress in the issue of KCC is very slow with a
very few KCCs have been issued by banks . There is one processing unit & community
canning and Training Center of GOA (DA) in the district. There are 14 PACS in the
district. All the PACS are ceded to the branches of SCB. No financial assistant/ credit limit
could be availed by the PACS during the last five years due to high level of overdues at the
branch level as well as at PACS level.
The gap in infrastructure cover several areas. Lack of adequate irrigation facilities,
inadequate extension support, absence of strong viable and effective cooperative structure,
recurrence of floods and soil erosion, insurance coverage against natural calamities, adequate
storage and marketing arrangement, good banking net work with trained and experienced
manpower to provide timely credit support to farmers, lack of Agri-clinic, Agri Business
Centres and cold storage facilities are the major areas.
7
However, emphasis is being made to remove the above constraints by Agriculture
Department to increase the productivity and production in the district. The General
Insurance Corporation of India has already launched the Rashtriya Krishi Bima Yojona
for popularizing the crop insurance and help the growth of crop production. The list of
the STWs beneficiaries being prepared for taking up with banks to encourage crop loans
and issue of ‘KISAN CREDIT CARDS’.
3.1.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential
on account of infrastructure changes for the year 2005-06
Considering the thrust given to this sector and the past performance, the Base PLP
projections have been revised for the year 2005-2006 as under:
( Rs. lakh)
BASE PLP
Activity (All activities
having potential may be Uni
furnished)
t
Scale
of
finance
Phy.
Unit
s
1. Paddy
ha.
0.13
300
2. Wheat
3. Rapeseed/mustard
4. Jute
5. Other oil seed
6. Pulses
ha.
ha.
ha.
ha.
ha.
0.10
0.09
0.10
0.10
0.06
25
25
10
10
10
7. Potato
ha.
0.31
8. Vegetables
ha.
9. Other/ Misc.
ha.
UPDATED PLP
Fin.
Outla
y
Ban
k
Loan
Un
it
Scale
of
finance
Phy.
Units
Fin.
Outlay
39.00 43.39
ha.
0.13
700
91.00
25.00
2.25
1.00
1.00
0.60
2.88
2.44
1.08
1.08
0.66
ha.
ha.
ha.
ha.
ha.
0.10
0.09
0.10
0.10
0.06
25
25
50
10
10
2.50
2.25
5.00
1.00
0.60
30
9.30 10.75
ha.
0.31
150
46.50
0.23
40
9.20 10.41
ha.
0.23
150
34.50
0.12
30
3.60
ha.
0.12
30
3.60
1150
186.95
TOTAL
480
4.15
90.95 76.84
B
an
k
L
oa
n
91.0
0
2.50
2.25
5.00
1.00
0.60
46.5
0
34.5
0
3.60
186.
95
Block wise physical and financial program for the year 2005-2006 has been given in Annexure-I.
3.1.4
Review of Ground Level Credit
The details loan disbursed by the banks for the crops loan during past six years is given below :
Year
Amount (Rs. lakh)
1998-99
0.64
1999-00
1.54
2000-01
5.28
2001-02
28.34
2002-03
134.27
2003-04
152.47
3.1.5. Resource Gap
Based on the past trends in ground level credit flow, the expected credit flow during the year 2005-2006 would
be around Rs. 180.00 lakh. The credit gap is estimated at Rs.6.95 lakh.
8
(Rs.lakh)
Particulars
Exploitable potential
Amount
186.95
Expected credit flow
180.00
Resource Gap
3.1.6
6.95
Suggested action points:
Departments
Govt. Line department to take initiative to create infrastructural facilities in the district and support
services in tune with the PLP projections.
Banks
The bankers may take a positive attitude towards the financing of crop loans.
3.1.7
Other Issues
A.
Kisan Credit Card (KCC)
As per the recommendation of the Union Finance Minister, the KCC scheme has been introduced in all banks
handling agricultural advances.
Objectives :
Timely support from banks to the eligible farmers for short term production credit needs for cultivation of crops,
purchase of inputs.
Eligibility :
All non defaulting farmers are eligible to obtain KCC. The credit under KCC may also be provided for
agricultural term loan and consumption needs of farmers. The KCC would be in the nature of a revolving cash
credit and would be valid for three years subject to an Annual review.
Target :
As GoI directives all eligible farmers are to be issued with KCC before 31 March 2005. The bank will directly
select farmers and also take help from the Agricultural departments to provide KCC to farmers.
B. National Agricultural Insurance Scheme (NAIS)/Rastriya Krishi `Bima Yojan(RKBY)
The salient features of the RKBY are indicated below :
Objectives of the Scheme
1.
To provide insurance coverage and financial support in the event of failure of crops as a result of natural
calamities, pests and diseases.
2.
To encourage farmers to adopt progressive farming practices, high value inputs and higher technology in
agriculture.
3.
To help stabilise farm incomes, particularly in disaster years
4.
To support and stimulate primarily production of food crops and oilseeds.:
Crop covered :
All food crops (cereal, millets, pulses, oilseeds)
9
Cotton, sugarcane and potato and other annual commercial/ Horticultural crops are covered.
States and areas to be covered :
The Scheme extends to all the states and the Union Territories.
Farmers to be covered:
All farmers including share croppers, tenant farmers growing insurable crop on:
a.
Compulsory basis: All farmers growing insurable crops and availing Seasonal Agricultural Operations
(SAO) loans from financial institutions i.e. Loenee Farmers.
b. Voluntary basis: All other farmers growing insurable crops i.e. (Non-Loanee Farmers) who opt for the
Scheme.
Risks covered
The Scheme provides comprehensive risk insurance against yield losses, viz :
(i) Natural fire and lightning
(ii) Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, etc.
(iii) Flood, Inundation and Landslide
(iv) Drought and dry spells
(v) Pests/Diseases etc.
Sum insured/ limit coverage
The sum insured extends upto the value of the threshold yield of the crop, with and option to cover upto 150 %
of average yield of the crop on payment of extra premium.
Premium rate
Food crops and oilseeds:
Kharif season - 3.5% of sum insured for bajra and oilseeds and 2.5% of sum insured for other harif crops.
Rabi season - 1.5 % of the sum insured for wheat and 2.0 % for the rabi crops.
Commercial and Horticultural crops: Actuarial rates.
Premium Subsidy
50% subsidy in premium is allowed to small and marginal farmers which will be shared equally by the
government of India and State/ UT Govt. The premium subsidy shall be phased out on sun set basis.
Implementing Agency (IA)
An exclusive organisation i.e., Agricultural Insurance Company of India (AICI) has been set up for
implementation of Rashtriya Krishi Bima Yojana. The new company has taken over the business from GIC. The
new company has also introduced Farm Income Insurance Scheme (FIIS) on pilot basis in identified district
covering Paddy/Wheat crops.
Loans disbursed through Kisan Credit Cards ( KCC)
10
For the loans disbursed through Kisan Credit Cards which are also eligible for coverage banks will have to
maintain all backup records relating to compliance with “RKBY’’ and its seasonality discipline, cut off date for
submitting the declarations and end use etc. as in the case of normal crop loans. The crop loans disbursed
through KCC, but outside the purview of the provisions of the RKBY, shall not be eligible for coverage.
Responsibilities of financing banks
The important responsibilities assigned to financing banks under the scheme are indicated below :
To educate the farmers on the scheme features.
To guide the farmers in filing the proposal forms and collecting the required documents.
To follow the guidelines while disbursing crop loans and ensure proper end use of loan disbursed.
To prepare the consolidated statements for loanee and non loanee members.
To maintain the records of proposal forms, other relevant documents, statements for the purpose of
verification by the district committee or representative of the insurer.
C. Scheme for financing Farmers for Purchase of Land for Agricultural Purposes
The scheme aims at providing term loans to small and marginal farmers including share croppers and tenant
cultivators for purchase, development, and cultivation of agricultural fallow and waste lands with a view to
increasing the production and productivity and also to enable them to diversify their present activities to other
allied activities. Mortgage of the land purchased shall be the security for the loan. Quantum of loan shall depend
upon the area of the land to be purchased and its valuation and also the cost of development. Loan has to be
repaid in 7 to 10 years including a maximum moratorium period of 24 months.
The objective of the scheme is to make small and marginal farmers' holdings economically viable and aims at
boosting the production and productivity of the land purchased. However, the finance provided by bank should
not result in aquisition of land for investment purpose and encashing on increase in price of land.
D.
Scheme for Financing Setting up of Agri Clinics/ Agri Business Centres
The scheme was introduced to supplement the efforts of the Government extension machinery, to make
available supplementary sources of input supply and service to needy farmers, and to provide gainful
employment to the agricultural graduates in new and emerging areas of agricultural sector. Agri Clinics are
envisaged to provide expert services and advice to farmers on cropping pattern, technology dissemination, crop
protection, market trends and prices and also clinical services for animal health to enhance productivity of crops.
Agri Business Centres are envisaged to provide input supply, farm equipments on hire, and other services.
Agricultural Graduates/ Graduates in subjects allied to agriculture are eligible to avail assistance individually or joint/
group basis under the scheme. The group may normally be of 5, of which one could be a Management Graduate. The
outer ceiling for project cost is Rs. 10 lakh for individuals and Rs.50 lakh for a group. Refinance is available to banks
at 100% of bank loan.
For prospective borrowers who are unable to meet the prescribed margin money, the banks can provide loan
upto 50% of the margin money requirement as per the scheme 'Assistance under Soft Loan Assistance Fund of
11
NABARD' with 'nil' intrest rate. However, the bank can levy a service charge of 5 % per annum from the
borrower..
3.1.8. Environment Protection :
Conservation of a healthy environment has become a major issue in recent times. The Government of India has
worked towards ensuring a healthy environment through
emphasising
enacting
Laws on Environment
protection,
environmental clearance in case of large projects, industries selection/encouragement of
appropriate and proper technology to ensure ecological balance, sustenance in the country.
District Administration Bongaigaon has take up certain afforestation and eco-restoration activities for asset
creation and improvement of environment within the district. Accordingly four projects were selected and
implemented under the supervision of two District Afforestation & Eco- restoration committee. All the four
project i.e. 1. Development of Jogighopa Historical Site and Beach 2. Development of Bamungaon as Ecoconservation and tourism site of a natural perennial stream . 3. Development of Tamranga Vihanga Vihaar
which is a beautiful view of Migrated Birds at natural lake 4. Development of Bagheswari Temple Hill site(
tourist spot). All the four projects has been completed and opened for use of public . Apart from these, 64
Joint Forest Management Committees have been formed in division , protecting approximately 2243 ha of forest
land in the district.
On account of the necessity to ensure a proper and healthy environment supporting adoption of environmentally
proper technology, efforts towards developing appropriate technology, creation of environmental awareness has
been emphasised by NABARD.
NABARD extends refinance facilities for financing activities like :
Pollution control devices/measures as an integral part of the project and also for activities like fitting of
CNG/LPG conversion for transport vehicles/passenger vehicles.
Installation of Common Effluent Treatment plants.
Waste recycling techniques like vermicompost, NADEP (for compost making).
Commercial ventures like conversion of sericulture waste into feeds, rice husk particle boards, coconut shell
processing, Bio pesticides, Bio fertilisers etc.
Waste minimisation processes.
Energy conversion technologies/activities.
Use of non-conventional energy resources like wind and solar energy.
NABARD's Promotional Support for Environment Protection:
NABARD has introduced a special scheme called Enviornmental Promotion Assistance focusing on promotion
of sustainable enviornmental and agricultural development through assisting demonstration of eco-friendly
technologies that are replicable.
12
The support is available to NGOs, Research Institutions, Universities, Krishi Vigyan Kendras (KVKs), Krishi
Gyan Kendras(KGKs) etc.
Activities that can be assisted :a) Developing simple and cleaner technologies for Use/reuse, recycling of material and wastes.
Resource recovery.
Waste minimisation
Pollution Control devices.
Fuel efficient devices, devices using non-conventional energies.
b) Management/ treatment of : Effluent, Wastes etc.
c) Awareness creation on environmental aspects.
d) Demonstration, replication of various environmental/ eco-friendly technologies.
e) Training in various enviornmental/eco-friendly technologies.
Extent of assistance: The extent of grant assistance will be decided on a case-to-case basis
depending on merit and the purpose. (It is expected that the agency will contribute 15% of
outlay)
II. INVESTMENT CREDIT FOR AGRICULTURE AND ALLIED SECTOR
(A).
Investment Credit for Agriculture
3.2
Minor Irrigation (MI)
3.2.1
Introduction
Minor Irrigation (MI) covers the irrigation projects with a cultivable command area upto 2000 hectares. All ground
water development falls within Minor Irrigation category. Bongaigaon district is endowed with vast potential of
surface and ground water. There is plenty of scope for surface water irrigation by lift irrigation schemes and ground
water exploitation by constructing STWs in the district. Out of the total geographical area of 251000 hectares about
40528 hectares (16%) in the district are not suitable for intensive cultivation. The net sown area at present is
93857 hectares ,of which only 37.39% area is under irrigation. As per the latest ground water assessment data, all
the blocks in the district have been categorized as “ white” implying that there is vast untapped potential for
ground water exploitation. As per the data available with irrigation Deptt, the ground water in the district is
suitable for irrigation purposes. The data on block-wise block wise long term ground water potential and the
present stage of ground water development are not available. There are 39 completed MI schemes of which 21
schemes are functioning and 18 nos are not functioning for various reasons.
3.2.2
Availability and gaps in infrastructure and support services
To support the phased development of the potential, certain basic infrastructural facilities would be necessary
which are identified as follows :
A nodal agency in the district to co-ordinate the various minor irrigation development projects and provide
technical guidance about various MI structures.
A list of registered suppliers of good quality machines, tools , implements and other inputs to be published
and widely circulated.
Provision for proper maintenance of MI structures to be made available.
13
Adequate budgetary allocation by the government for infrastructural development and ongoing projects is
essential.
Revival of Nodal Agency - Assam State Minor Irrigation Development Corporation.
The Assam State Minor Irrigation Development Corporation (ASMIDC) was the major implementing agency
for commissioning the Minor Irrigation projects in the district. But due to the severe resource crunch and heavy
overdue problem, the agency has remained almost defunct since 1992-93. The Bongaigaon Irrigation Division
started functioning since 1979 with its headquarters at Bongaigaon. Presently the division is looking after the
Irrigation Development works in Bongaigaon district and part of Kokrajhar district. The division is headed by an
Executive Engineer and is assisted by three sub-divisional Engineers heading three sub-divisions viz.—
Abhayapuri, Bongaigaon and Bijni. The District Agriculture Department with its headquarters at Bongaigaon
and three sub-divisional offices at Bijni, Bongaigaon and North Salmara has been functioning since 1991. The
main objective of the Agriculture Department is to increase crop production, educating farmers about the latest
technologies in the field of agriculture including irrigation management and also implementation of STW
projects under NABARD’s RIDF and World Bank ARIASP projects. Bongaigaon Electrical Division is one of
the divisions of ASEB. In 1984 Bongaigaon REC Division was created by ASEB for execution of Rural
Electrification works. In 1993, the division was renamed as Bongaigaon Electrical Division - II with its area of
operation limited to Bongaigaon District and part of Kokrajhar District and was implementing schemes for rural
electrification which is one of the prime requisite for MI projects. The agencies viz. Assam Seed Corporation,
STATEFED, HFC and good number of private agencies are involved in supply of necessary inputs and
maintenance services for MI development in the district.
The Bongaigaon Irrigation Division has been facing difficulties in implementing their projects mainly due
to insurgency problems over the past two years. The financial crisis of the department, shortage of power
supply, lack of proper training to farmers in HYV cultivation etc. are certain other gaps which need to be
bridged.
The AEE , Irrigation ( Mechanical ), Abhayapuri, the 3 F.D.R works could not be completed due to non
availability of transformers from ASEB viz . 1. Boitamari E.L.I.S 2. Maligaon E.L.I.S 3.Bhakarapara
Jhakuwapara D.T.W Schemes and other 3 schemes are under progress. It was stated that the District
Agriculture Department is facing acute shortage of transportation facilities like jeeps, etc. The ASEB is
also facing major problems like financial constraints, manpower shortage and inadequate supply of
materials. Poor communication also appears to be an important infrastructural gap.
The Abhayapuri E & D subdivision (under Kokrajhar E & D division) is presently headed by Assistant
Executive Engineer with a limited staff. Since the district is flood prone area, a full-fledged Flood
Control Division may be required to be set up immediately at Bongaigaon. The recurrence of flood and
soil erosion by rivers needs immediate attention by the department. The suppliers of various inputs are
presently confined in the district head quarter. Therefore, there is an urgent need for such units in the
Sub-Division and at block level so as to ensure timely and adequate supply of various inputs to the
farmers at a reasonable cost. Due to lack of state Govt. initiatives, the progress in exploitation of surface
and underground water was very slow.
3.2.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
Considering the thrust given to this sector and the past performance, the revised projections in the base PLP has
been made for the year 2005-2006 as below:
14
(Rs. lakh)
Activity
(All
activities
having
potential may be Unit
furnished)
A.STW
B.LLP/
C. Dug well
TOTAL
Nos.
Nos.
Nos.
BASE PLP
Unit
Cost
Phy.
Units
0.23
0.16
0.35
0.74
200
150
20
370
Fin.
Outla
y
46
24
7
77
Bank
Loan
Unit
45.27 Nos.
23.91 Nos.
6.89 Nos.
76.07
UPDATED PLP
Phy.
Unit
Fin.
Units
Cost
Outlay
0.27
0.17
0.35
250
100
10
360
67.50
17.00
3.50
88.00
Bank
Loan
33.75
8.50
1.75
44.00
Block-wise physical and financial programme for the year 2005-2006 has been given in the Annexure I .
3.2.4
Review of Ground Level Credit
Though the district has a good potential for implementing Minor Irrigation Programmes the actual disbursement
made by the banks is very dismal. The details of the ground level disbursement made by the bank under this
sector during last five year are given below:
Year
Amount (Rs. lakh)
1998-1999
2.71
1999-2000
2.94
2000-2001
2.58
2001-2002
3.21
2002-2003
Nil
2003-2004
Nil
3.2.5. Resource Gap
Keeping in view the trend in ground level credit flow over the past few years it is expected that an amount
of Rs.12.00 lakh would be disbursed during 2005-2006 for MI. Thus the credit gap is estimated to be around
Rs.32.00 lakh.
3.2.6. Suggested Action Points:
Department
The Minor Irrigation Department in the district to increase infrastructure under MI.
Immediate need for assessing block wise ground water potential available in the district.
To ensure upkeep and maintenance of the Minor Irrigation Structures like DTWs, STWs, LLPs Dug Wells
etc. and also revive the nonfunctional structures wherever possible.
To formulate Bye- laws governing FMCs & give them legal status.
To formulate a scheme for surface irrigation like LLP etc.
To concentrate on development of infrastructure and extension services relating to introduction of new
cropping systems with HYV/ Hybrid varieties, efficient water utilisation, intensive mixed farming system,
15
backward and forward linkages for SKY (NABARD funded STW programme) & ARIASP projects which
are in various stages of implementation in the State as well as in the district and will create a future
irrigation potential.
Priority need to be given for completion of ongoing projects and improving irrigation efficiency with
institutional credit support.
Keeping in view the abundance of surface water availability and viability of the MI programme,
bankers should take active participation for increasing the credit flow.
To extend loan facility to needy and genuine farmers for installation of STWs/ LLPs under ‘ On Farm
Water Management’ a centrally sponsored programme. Under this the farmers are eligible for 30%
subsidy. Further details of the scheme are given in the following paragraph.
3.2.7
Other issues
A. On Farm Water Management Scheme
The scheme is being implemented in all the districts of Assam. Individual farmers or group of farmers will be
eligible for assistance under the scheme. Preference will be given to small and marginal farmers and SC/ST
beneficiaries.
Assistance will be available for the following activities :i.
construction of Shallow Tube Wells (STWs) with pumpsets to individual/group of farmers;
ii. community Lift Irrigation Points (LIP) to a group of farmers;
iii. electric/diesel water pumping sets to individual farmer and
iv. dugwells only in plateau areas for individual or group of farmers.
The financing bank shall adhere to spacing norms between wells, other technical norms as recommended by
NABARD for different structures in each State. The financing bank shall also ensure that the pumpsets
financed are as per IS 10804 and other accessories of each project are as per BIS standards.
All institutions eligible for NABARD refinance are eligible for participation in the Scheme. Selection of
beneficiaries will be done by the financing bank. However, assistance of Govt. agencies, Panchayats, NGO,
SHG etc. can be taken for identification/selection of beneficiaries.
The contribution of the beneficiaries will be at a minimum of 20% of the project cost. Subsidy @ 30% of the
project cost from Government of India will be available to all eligible borrowers. Subsidy will be available only
in cases where bank loan is availed. The amount of subsidy will be limited to 30% of the average unit cost as
recommended by the Unit Cost Committee of NABARD or the actual project cost whichever is lower. The
subsidy will be back-ended with a lock-in period of 2 years, i.e, the beneficiaries will not be eligible for subsidy
of the loan if liquidated completely within 2 years from the date of initial disbursement of loan.
3.3
LAND DEVELOPMENT
3.3.1
Introduction
16
Out of a total geographical area of 2510 sq. km, the net cropped area is 93857 ha. The topography of the district
represents mostly plain lands except some small portions of isolated hills in Bijni sub-division bordering Bhutan.
The district is drained by The Brahmaputra on the south and two of its major tributaries viz. Ai & Manas flowing
from the north to south. About 72% of normal rainfall is received during the four months (May-Aug). Heavy
rainfall coupled with high intensity of wind causes severe soil erosion, particularly on upper reach and in flood
prone areas. Sheet Gully erosion, and riverbank erosion, are the main types of erosion commonly seen in the
district. It may be observed that there is vast scope for land development activities, water management and soil
conservation in the district. The total estimated potential area for land development activities is 15700 hectares in
the district.
3.3.2
Availability and gaps in infrastructure and support services
In order to ensure the planned development of the above potentials certain basic infrastructures are required
which are as follows :
a.
A nodal agency with full-fledged division of soil conservation at the district level to initiate various land
development works.
b.
Adequate availability of various types of machines, tools and implements required for L.D. and water
management.
c.
Effective training programmes, demonstration and other extension facilities.
d.
Reorientation of the bankers outlook and approach towards L.D which are basic needs of sustainable
agricultural development.
Goalpara Soil Conservation Division with its head quarters at Kokrajhar is the nodal agency to oversee the soil
conservation and water management works in the district. There is only one range office in the Bongaigaon district
which was under the jurisdiction of Goalpara division . The range offices is headed by Soil Conservation Ranger
who is assisted by Soil Conservation Overseer, demonstrator, etc. Although the division is equipped with both
technical and non-technical staff, to provide necessary support and guidance to farmers it is necessary to set up
separate division with head quarter at Bongaigaon keeping in view the long-term needs.
Agriculture Engineering wing of Agriculture Department is also associated with implementation of soil and water
conservation schemes like, watershed development, drainage etc. Flood Control department also plays its role in
soil and water conservation in the district. The NWDPRA project is being implemented in the following areas by
Agriculture Department in the district with 100% budgetary assistance from the GoI .
a.
Kalabari Thorthori project (ext)
b.
Ghilaguri Tamranga Beel project (ext)
c.
Lungai (n)
d.
Chengmari
e.
Garugaon (n)
f.
Ballamguri (Ext)
g.
Barigara (n)
17
The implementing agencies are 1. Appropriate Technology Mission.2. Abhayapuri sanskritik Parishad 3.
Natures Foster 4. Sidli Biswajyoti club but withdrawn from the implementing agency. The progress of the
work under NWDPRA Schemes is not satisfactory.
3.3.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
The projections under various Land Development activities have been made in the Base PLP for the year 200506 have been revised downwards in view of slow pace of infrastructure development seen over previous year .
The details are as under :
(Rs. Lakh)
UPDATED PLP
BASE PLP
Uni
t
Cos
t
Activity (All activities having
potential may be furnished)
1. Land development for field
crops
2. Watershed management for
rainfed farming
3. Farm ponds/ Water harvesting
structure
4. Gully control/ Land reclamation
5. Vermi-culture/ improved
composed making
TOTAL
Phy.
Unit
s
Fin.
Outlay
Bank
Loan
Unit
Cos
t
Phy.
Units
Fin.
Outlay
Ban
k
Loan
ha.
0.21
30
6.30
6.44 0.25
20
4.00
3.60
ha.
0.18
50
9.00
9.42 0.08
7
1.26
1.14
ha.
0.64
20
13.00
13.39 0.64
10
6.40
5.76
ha.
0.22
30
6.60
6.86 0.22
7
1.54
1.39
ha.
0.07
35
2.45
3.76 0.08
20
1.6
1.44
0.13
165
37.35
39.87 1.31
64
14.80
13.33
Block-wise physical and financial programme for the year 2005-06 has been given in the Annexure I.
3.3.4
Review of Ground Level Credit:
As the LBR system has not been stabilized, the break up of actual physical and financial achievement for the last
3 to 5 years are not readily available. However as per feedback, no significant bank credit was made available and
most of the farmers in the district meet the expenses towards land development works from their own resources or
provided under various Govt. programmes. The subsidy extended @ 100% by the department is also affecting the
credit flow to this sector. The scope for bank credit, therefore, is not high for the sector. It is estimated that banks
would be able to disburse about Rs. 5.00 lakh during the year 2005-2006.
3.3.5
Resource Gap
Keeping in view the trend in the performance of banks during the past few years, the
anticipated credit flow has been estimated at Rs. 5.00 lakh leaving the credit gap at Rs.8.33 lakh during the year
2005-2006.
3.3.6 Suggested Action Points
Departments
State government to arrange for allotment of permanent patta and individual ownership of land.
Generate awareness among farmers about availability of bank finance for land development activities.
18
Banks
Create awareness among bankers, farmers, and government officials and include Land Development
Finance in the curriculam of a training programme to expand different bankable schemes under land
development activities.
3.4
FARM MECHANISATION
3.4.1
Introduction
In view of increasing shortage combined with management problems of human and animal labour for farm
operations, the Farm Mechanization appears to be the solution for increasing the production and productivity of
various farm products. However in the district, 47% of the farmers have land holding of less than 2 ha (of which
44% have less than 1 ha) which is again fragmented into further small pieces. Therefore, large-scale
mechanization with big machinery is difficult unless State Govt. takes up land consolidation and promote
Cooperative Farming. Therefore, financing of small tractors, power tillers, improved implements etc. should be
given priority. Successful implementation of STW programme with
NABARD's RIDF assistance
has
encouraged the state Govt. to identify tractors and power tillers as the thrust area to consolidate the benefits of
the development of irrigation.
Taking into account the number of units already existing in the district and also the fact that a substantial number of
farmers would still continue with their traditional farming practices, the total long term potential of tractors and
power tillers have estimated as below.
3.4.2
Availability and Gaps in Infrastructure and Support Services
The Basic infrastructure required for phased development in the district is as follows :
Availability of genuine machineries and accessories.
Repairing and maintenance facilities.
Training facilities for handling modern machineries.
Adequate flood control and soil conservation measures.
Adequate network for providing credit support and a nodal agency to oversee the entire farm
mechanization work.
The Agriculture extension wing of the department of agriculture is the nodal agency looking after various farm
mechanization works in the district. The DRDA is the other important agency promoting farm mechanization.
Assam Agro. Industries Development Corporation has sales outlet at Bongaigaon and supplies power tillers,
agricultural implements like MB plough, paddy weeders, sheer points, pesticides, fertilizers etc. to cultivators.
The banking sector with the network of 41 branches in the district is providing necessary credit support for
various farm mechanization activities.
The most important infrastructural gap is the lack of adequate irrigation facilities. The irrigation department
could not initiate the projects due to lack of fund constraints. The agricultural department does not have
adequate number of Subject Matter Specialist in Agriculture Engineering. After Sales services of various farm
19
machineries like tractors, power tillers, etc. need improvement. Cold storage facilities is needed in the district
and the marketing facilities are not adequate.
3.4.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
Considering the importance of the sector and the past performance the Base PLP projections have been revised
as under for the year 2005-06.
(Rs. lakh)
BASE PLP
UPDATED PLP
Activity
(All
activities
having
potential may be
furnished)
Unit
Tractors
Nos.
3.5
Power tiller
Nos.
1.25
150
185.50
Others
Nos.
0.2
10
2.00
170
224.50
224.50
Unit
Cost
Phy.
Units
Total
Fin.
Bank
Outla
Loan
y
10
35.00
35.00
Unit
Cost
Phy.
Units
Fin.
Outlay
Bank
Loan
3.50
35
122.50
98.00
187.50
1.25
110
137.50
110.00
2.00
0.20
5
1.00
0.80
150
261.00
208.80
Block-wise physical and financial programme for the year 2005-2006 has been given in the Annexure I.
3.4.4 Review of Ground Level Credit
The ground level disbursements taken place during last 5 years are as under :
(Rs lakh)
1999-2000
8.00
2000-2001
6.28
2001-2002
4.88
2002-2003
5.67
2003-2004
11.18
It may be seen from the above that the disbursement under the sector show mixed
trend over the years.
However, in view of successful implements of STW project and OFWM scheme in the district, the credit flow
would increase in the future. It is estimated that Rs. 50.00 lakh would be disbursed during the year 2005-2006.
3.4.5 Resource Gap:
It is estimated that the banks would be able to disburse an amount of Rs. 50.00 lakh during the year 2005-2006,
thus leaving the credit gap of Rs.158.80 lakh.
3.4.6
Suggested Action Points:
Banks
Coordination with Agriculture Department and FMCs to identify the progressive
entrepreneurs for financing these activities.
Transparency in selection of borrowers
20
3.5
PLANTATION AND HORTICULTURE
3.5.1
Introduction
The district of Bongaigaon is under the North East Sub Tropical horticulture zone of India. Considering the
immense potential available, Government of Assam has drawn several programmes for comprehensive
development of plantation & horticulture commercially. The district has favorable agro climatic conditions for
the development of various plantation and horticulture crops. However, the horticulture & plantation crops are
generally not grown on commercial scale in the district. Approximately 104454 farmers are involved in
growing horticultural crops. The Rubber Board is making efforts to bring adequate area under rubber
plantations. Coffee is also identified for plantation in upland and forest areas, there is no Govt. Assisted
Rubber Plantation in the district. Adequate quantity of planting material is not available in the district. Area
under plantation and Horticultural crops productivity and production in the district in the year 2002-2003 is
indicated below: .
Sl.
Name of crop
No.
1
Assam lemon
2
Productivity
Kg/ ha
Area (ha)
Production M.T
441
3600
1588
Guava
99
956
95
3
Litchi
488
7450
3636
4
Jackfruit
222
10515
2334
5
Mango
171
5247
897
6
Orange
162
8370
1356
7
Pineapple
294
18531
5448
8
Ginger
544
6125
3332
9
Corriender
324
640
207
10
Blackpepper
98
1825
179
11
Garlic
313
1510
473
12
Chilli
850
653
555
13
K/ vegetable
2600
14025
37587
14
R/ vegetable
6068
13810
83799
15
Coconut
661
79
5534
16
Arecanut
3012
150
2785
17
Amlokhi
60
44580
2675
18
Khilikha
55
5620
3091
19
Bhomora
2
3720
7
20
Banana
942
12164
11458
21
Papaya
251
15300
3840
22
Medicinal and aromatic plant
120
4921
590
3.5.2.
Available and Gaps in infrastructure and support service
The Agriculture Department is the nodal agency looking after the various horticulture programmes in the
district.
21
Assam Agro Industries Development Corporation, STATEFED, HFC, etc. are involved in the supply of
inputs.
Rubber Board has an office at Bongaigaon. Weekly markets are in operation in the district. Rubber
processing unit at Khagarpur has already been start production & functioning under the financial assistance
of SIRD.
Horticulture progeny orchards located at Boitamari (10 ha.) And Kasilotra (5 ha.) have been given on
private lease for a period of 5 years. This is expected to increase the supply of planting material.
To achieve the phased development as envisaged above, certain basic infrastructural facilities would be
necessary viz.
A full fledged nodal agency at the district Head Quarter to coordinate the plantation and horticulture
development.
Availability of good quality of seed and planting material .
Training facilities for the entrepreneur/ farmers.
Soil testing laboratories and irrigation facilities.
Cold storage and storage godowns.
Marketing arrangement, transporting facilities and good number of food processing
units, etc.
Gap : The Agriculture Department is implementing various programmes in the district as the nodal
agency. Number of progeny orchards and nurseries are inadequate in the district to meet the
requirement at present. Lack of cold storage, market yards and organized marketing system,
processing units, training and demonstration plots to educate farmers, absence of ownership to the on
land, lack of awareness of scientific cultivation practices, lack of credit facilities and general apathy
of Bankers to provide credit support, non existence of large scale processing facilities, nonavailability of important
and vital infrastructures facilities, lack of awareness of details of
programmes for Government employees, bankers, extension workers, are the major infrastructure
gaps in the district.
22
3.5.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
Considering the trend in ground level credit flow and the recent development in the infrastructure, the Base PLP
projections for the year 2005-2006 have been revised and given as follows :
(Rs. Iakh)
Activity
(All
activities
having
potential may be Unit
furnished)
1. Citrus
2. Pineapple
3. Pepper
4. Coconut
5. Arecanut
6. Rubber
7. Battlevine
8. Guava
TOTAL
ha.
ha.
ha.
ha.
ha.
ha.
ha.
ha.
BASE PLP
Unit
Cost
0.30
0.60
0.43
0.54
0.65
0.47
0.53
0.40
Phy.
Units
10
10
10
10
60
3
1
20
124
Fin.
Outlay
Bank
Loan
3.00
6.00
4.30
5.40
39.00
1.41
0.53
8.00
67.64
3.00
6.00
4.30
5.40
39.00
1.41
0.53
8.00
67.64
Unit
Cost
0.30
0.60
0.43
0.54
0.65
0.47
0.53
0.40
UPDATED PLP
Phy.
Fin.
Units Outlay
7
7
7
7
7
10
7
5
57
2.10
4.20
3.01
3.78
4.55
4.70
3.71
2.00
28.05
Bank
Loan
1.79
3.57
2.59
3.21
3.87
4.00
3.15
1.70
23.88
Block-wise physical and financial program for the year 2005-2006 has been given in the Annexure I.
3.5.4. Review of Ground Level Credit:
During the past few years disbursement were made in this sector by the banks. However, it is estimated that Rs.
10.00 lakh would be disbursed by the banks due to better services from the line departments and improvement in
infrastructural facility.
3.5.5. Resource Gap
Keeping in view the trend in performance of banks during the past few years, the projections
and anticipated ground level credit flow, the estimated credit gap would be around Rs. 13.86 lakh during the
year 2005-2006 as under :
(Rs. lakh)
Exploitable potential
23.88
Expected Credit Flow
10.00
Resource Gap
13.88
The credit gap can be met by increased lending by banks in combination with better services from the line
departments.
3.5.5
Suggested Action Points:
Departments
Better co-ordination between State Govt. Department and financial institutions in implementation of
schemes.
Educating the farmers by trained personnel and technical experts.
23
To make concrete plan for implementation of various Sponsored schemes.
Banks
To provide loan facility to good farmers and utilise the services of good FMCs for facilitating credit flow
activities.
3.1.7
Other issues
The Agriculture department / NABARD has taken initiative for implementation of innovative schemes in post
harvest technology/ export- oriented projects like
i)
Cultivation of medicinal plants.
ii)
Cultivation of Pachouli,
iii )
Horticulture Mini Mission.
SCHEME FOR AGRI EXPORT ZONES (AEZ)
With a view to boosting agricultural exports from the country, Government of India has notified 49 zones for
creation of AEZ. NABARD has also identified AEZ as a thrust area for extending necessary support through
refinance and other interventions. Accordingly, NABARD has decided to provide refinance to Commercial
Banks, RRBs and State Co-operative Banks for financing of farmers for cultivation/ production of identified
crops/ commodities in AEZ under contract farming.
The AEZs will be concerned with A to Z of the agri-exports. The emphasis will be on partnership among
various agencies / systems and convergence of interventions of various agencies like APEDA, Ministry of Food
Processing Industries, National Horticulture Board etc. The focus will be on increasing exports of identified
commodities with economies of scale for the benefit of all concerned. In AEZ, a package is offered to facilitate
exports and induce private sector investment. APEDA will be the nodal agency for notifying the zones in
various states as AEZ.
Refinance from NABARD will be available to Commercial Banks, RRBs, SCB and SCARDBs under schematic
lending for financing farmers under contract farming mode either directly or through processor/ exporter.
Refinance will be at 100% of the eligible bank loan.
Agri Export Zones approved by the State Govt. of Assam is as follows:
Sr. No.
State
Product
Districts
Kamrup,
Nalbari,
Barpeta,
Darrang,
Assam
Fresh and Processed Ginger Nagaon,
Morigaon,
1
( 9 districts)
Karbi Anglong and
North Cachar, Tinsukia
24
Organic Manure and Bio-degradable organic wastes
Indiscriminate and unscientific pattern of use of chemical fertilizers had resulted in fast depletion of soil fertility
thereby making them unfit for cultivation in the long run and fall in productivity of soils. In order to attain
sustainability in production, there is a need to increase the usage of organic manure, FYM etc., to rejuvenate the
soils and bring them back to their natural health. In view of this there is an urgent need to enhance the
production and supply of organic manures and compost through NADEP method of composting and
vermiculture etc.
The Bio- degradable waste from agriculture activities and Municipalities can be used for producing manure. The
Agro and Municipal waste from vegetable and fruit markets will be available for converting the same into
organic manure. A people-driven programme aiming at encouraging segregation of organic and inorganic
garbage at source is to be launched in the district. The segregated garbage is to be brought to NADEP and vermi
compost units where organic garbage would be recycled and manure obtained thereof could be sold.
Vermi Culture
Production of vermi casting through scientific rearing of earth worm is to be encouraged in the district. The
vermi casting is found to be a good source for sustainable agriculture. Due to its unique characteristics of
supplementing humus, plant nutrients, vitamins, enzymes, antibiotic and plant growth hormones, vermi castings
have the potential of becoming an effective and commercial bio-fertilizer. The important benefits of using vermi
castings in the field is for better crop yield, effective environment protection, optimum utilisation of biodegradable wastes, reduction in the cost of farm inputs such as water, fertilizers, pesticides etc.
Compost making
The compost making units under NADEP system, which is cost effective, employment generating, pollution free
and involving very simple technology, may also be encouraged in the district. It works on aerobic biodegradation process which requires 100 to 120 days for compost making. The efficient use of dung and agrowastes in this process makes it possible to produce 20 kgs of enriched compost from one kg of dung.
3.6
FORESTRY AND WASTE LAND DEVELOPMENT
3.6.1. Introduction
As per the Forest Survey of India, State of Forest Report (SFR)-2001, the forest cover in the district was 63100
ha. forming about 25.14% of the total geographical area. Due to unabated deforestation and encroachment, the
area under forest is dwindling very fast . The district has vast wastelands both under Govt. and private
ownership which are mostly not useful for agriculture. The socio-economic conditions of the rural people in
Bongaigaon district is mostly dependent on forest for various day to day requirements. Due to over exploitation,
the existing forest cover has deteriorated to a great extent. Therefore, there is a need for massive afforestation &
wasteland development programme through Social Forestry and Farm Forestry in particular for restoring both
ecology and economy.
25
The Agro-climatic condition of the district is found to be suitable for development of forestry sector. In view of
the local demand and commercial importance, forestry development on the uncultivated farmlands, fallow lands,
and community lands, etc. needs to be considered on a priority basis.
3.6.2. Availability and Gaps in infrastructure and support services
The district has two forest divisions viz. Ai valley forest division and Bongaigaon forest division. The division
of social forestry with headquarters at Bongaigaon is looked after by DFO (Social Forestry), with range office at
Bijni, Abhayapuri and Bongaigaon and head office at Manikpur , Kabaitary and Nakkati. Besides there are small
plantation centers at Majgaon and Boitamari. They are implementing various schemes like social forestry,
general/ tribal sub plan, area oriented fuel and fodder project and decentralized people’s nursery. The northern
part of district fall under Manas Reserve Forest. Sal, Khair, Shissoo, Acacia, Koroi, etc. are the popular tree
species found in the district. The district had one paper mill viz., Ashok Paper Mills at Jogighopa. The mill was
closed for quite a long time but now the unit has been taken over by Senko Group for revival.
Though number of good developmental agencies are available there is very less functional co-ordination
between them. Involvement of local people in various schemes is an important missing link . The Joint Forest
management (JFM) with people’s participation needs to be attempted with legal backup from Govt. of Assam
for development and maintenance of forest. Bankers need to encourage the afforestation on private lands and
include it under SAP.
For phased development of forestry sector the infrastructural facilities required are :
a. Nodal Department / Agency’s involvement in identification of suitable area, beneficiary coordination with
financial credit institutions and technical guidance to farmers etc.
b. Opening of nurseries for adequate supply of quality seeds, planting material.
c. Availability of inputs like fertilizer, pesticides , insecticides, tools and implements.
3.6.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
Based on the trend of credit flow in the district the Base PLP projections have been
retained for the year
2005-06 .
BASE PLP
Activity
1.Farm
forestry
plantation
2.Wasteland
development
3. Others
Total
Unit
(ha)
Unit
Cost
Phy.
Units
Fin.
Outla
y
Bank
Loan
Unit
Cost
Phy.
Units
(Rs. lakh)
UPDATED PLP
Fin.
Bank Loan
Outlay
ha
0.36
35
12.6
11.65
0.36
35
12.60
10.08
ha
0.36
45
16.2
14.99
0.36
40
14.40
11.52
ha
0.36
2
82
0.72
29.52
0.64
27.28
0.36
2
77
0.72
27.72
0.58
22.18
Block-wise physical and financial program for the year 2005-2006 has been given in the Annexure I.
3.6.4 Review of Ground Level Credit:
26
Since LBR system is still not stabilized ,specific data on credit flow under this sector is not readily available
However, as per information available there has not been significant credit flow to this sector for the last few
years.
3.6.5 Resource Gap
Though the ground level data on disbursement under the sector in not available, the anticipated ground level
credit flow has been estimated at Rs.10.00 lakh during the year 2005-2006, leaving credit gap of Rs. 12.18
lakh.
(Rs. lakh)
Particulars
2005-2006
Exploitable potential
22.18
Expected credit flow
10.00
Resource gap
12.18
3.6.6 Suggested Action Points
Departments
The Agriculture Department in co-ordination with Agriculture Engineering Department and other line
Department to identify compact areas and prepare location specific schemes with suitable tree species.
Involvement of communities and good SHGs in social forestry will pay good dividends.
Banks
To come forward to encourage the farmers to take up activity with bank credit. Prepare bankable/model
schemes for use by farmers.
27
3.7
SERICULTURE
3.7.1.
Introduction
Traditionally, Sericulture is one of the most important Agro based cottage industry in the State & employment
generating activities in Bongaigaon district. Climatic conditions are favourable for cultivation of crops like Eri,
Muga and Mulberry for silk worms rearing. The activity is traditional cottage industry specially practiced by the
local people including SC/ST families in the district. Most of these activities except for growing of plantation
and rearing are basically non-farm activities and is dealt separately under the relevant section. The farm sector
activities associated with sericulture are covered in this section. For taking up large- scale exploitation of this crop,
important food plants like castor, kesseru, som, and soalu bave to be grown. The production and area of plantation
of Sericulture in the district is gradually improving. The area of plantation of Sericulture in the district is as under:
Area of plantation
Sector
Private
Government
141ha
23.26 ha
2. Muga
18.56 ha
30 ha
3. Mulberry (pat)
91.02 ha
37.8 ha
1. Eri
3.7.2 Availability and gaps in infrastructure and support service
To achieve a phased development of sericulture the infrastructure requirements identified are:
Sericulture Office at District Headquarter for identification of suitable area and beneficiaries.
Development of nurseries for adequate supply of quality planting material, training facilities.
Establishment of Eri Concentration in the district for seed production programme to supply seeds to village
rearers as the district is a predominantly Eri producing area.
3.7.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
Considering the increasing demand for the indigenous silk and the importance given by the department it is
anticipated that the sector would gain importance in future and the institutional credit flow would increase.
Considering the trend of the demand, the Base PLP projection retained the same for the year 2005-2006.
( Rs. lakh)
BASE PLP
UPDATED PLP
Activity (All activities having
potential may be furnished)
Ban
Uni
Uni Unit Phy.
Fin.
Fin.
k
t
Uni
Phy.
t
Cos Units Outlay Bank Loan
Outla
Loa
t
Cos Units
t
y
n
t
1. Sericulture- Mulberry
1
0.1
10
1 0.97 1
0.1
20
2.00
1.70
2.Sericulture- Muga
1
0.04
10
0.4 3.84 1
0.4
20
8.00
6.80
3. Sericulture-Eri
1
0.37
10
3.7 3.61 1
0.37
20
7.40
6.29
TOTAL
30
5.1 8.42
0.87
60
17.40
14.79
Block-wise physical and financial programme for the year 2005-06 has been given in the Annexure I.
3.7.4. Review of Ground Level Credit:
28
The separate data of ground level disbursement under the sector is not available. However,
keeping in view the importance of credit for the development of the activity, it is estimated
that an amount of Rs.6.00 lakh would be disbursed during the year 2005-2006
3.7.5 Resource Gap
Based on the projections and anticipated level of ground level credit, the credit flow has been
estimated at Rs. 6.00 lakh for the year 2005-2006 leaving a credit gap of Rs.8.79 lakh.
(Rs. lakh)
3.7.6
Exploitable Potential
14.79
Expected credit flow
6.00
Resource Gap
8.79
Suggested Action Points
Departments
Line Department to concentrate on infrastructure and extention services to beneficiaries.
Train the identified farmers in sericulture activities and link them to bank credit through Govt. sponsored
programmes.
Banks
Extend loan facility to the needy and genuine beneficiaries for setting up of Farm and Non-Farm activities
in the district, under Sericulture.
29
B.
INVESTMENT CREDIT FOR ALLIED ACTIVITIES
3.8
ANIMAL HUSBANDRY - DAIRY DEVELOPMENT
3.8.1 Introduction
The cattle and buffalo population in the district predominantly consists of low yielding non- descript indigenous
stock. As per the livestock census (1997), the cattle and buffalo population is as under:Indigenous Cattle
Crossbreed Cattle
Milch animal
93,799
4,087
Total cattle population in the
district
Total as % of state
cattle/Buffalo
Buffaloes
2,118
289,487
9,764
5,915
3.8%
2.64%
0.8%
Based on the livestock data furnished by Animal Husbandry Department ,the quality of CB Cows, local cows
and buffaloes available for bank finance is inadequate within the district. The estimated milk production in the
district for the year 2003-04 was 40.250. The consumption of milk in the Bongaigaon district is 146.70 tonnes as
against the production of 40.250 tonnes. The per capital availability in comparable to State figures is much
below in the district.
3.8.2
Availability and gaps in infrastructure and support services
On the basis of the total population of Livestock in the district there should be around 50 veterinary
dispensaries/hospitals all over the district headed by qualified doctors whereas there are only 15 veterinary
dispensaries. As against 50 artificial insemination centers required, there are only seven insemination centers in
the district and 1536 nos Artificial Insemination done during 2003-04. There are 117 Govt./Pvt. Piggery unit,
66 Dairy farm, 51 broiler farm, 1 goatery farm, 1 poultry layer , 23 duckery farm but no slaughter houses in
the district. Kajoligaon and Bijni ,Abhayapuri, Kabaitari and Dhantola are the 5 main livestock markets in the
district. The paucity of government budgetary fund may be considered as one of the major constraints in the
process of dairy development in the district. Tribal co-operative farm and allied industries registered under Cooperative Society Act. has been functioning in the district covering 200 villages in an area of 100 sq.kms. There
are 2 functional cooperative milk societies, 15 dispensary , 15 first aid centre ,9 milk routes but no chilling and
packing facilities in the district. The staff in the dairy Development Department is inadequate . Improved
extension services are needed for the development of these sectors.
The department is headed by District Animal Husbandry and Veterinary officer. The Veterinary Department
provide the following services viz. – vaccination, castration of Scrub bulls, veterinary extension and education
on fodder development, cattle feed and livestock management. The District Rural Development Agency
(DRDA) also plays vital role in identifying interested farmers and providing credit linked Government subsidy
to procure dairy animals.
In addition to quality milch animals there are certain other factors which are important for successful
exploitation of the potential, as envisaged below.
i.
Availability of adequate green and dry fodder, concentrated feed, water, etc.
30
ii.
Suitable space for cattle housing.
iii.
Availability of facilities for animal breeding, medicines and veterinary aid centers.
iv.
Training facilities for dairy farmers/entrepreneurs and adequate marketing and transport facilities.
v.
Chilling centers and milk processing plants.
vi.
Suitable banking network to provide necessary credit support.
3.8.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06.
The credit flow to this sector during the past few years under the SAP indicated positive trend. Based on the
performance of the ground level credit flow, the Base PLP projections have been revised for the year 2005-2006
as under :
( Rs. lakh)
Activity
BASE PLP
Unit
1. CB cows with shedNo.
2 animal unit of 6-7 LPD
2.Improved cow without shed
No.
(2 animal unit)
3.Graded MuraBuffaloes
animal unit with shed
2
No.
TOTAL
UPDATED PLP
Phy.
Unit
s
Fin.
Outlay
0.35
250
87.50
70.00
59.88
0.11
450
49.50
39.60
27
56.25
0.28
50
12.50
10.80
121.8
158.07
750
150.50
120.40
Unit
Cost
Phy.
Units
Fin.
Outlay
Bank
Loan
Unit
Cos
t
0.3
150
45.3
41.94
0.11
475
49.5
0.27
200
825
Block-wise physical and financial programme for the year 2005-06 is given in Annexure I.
3.8.4. Review of Ground Level Credit
The details of ground level credit flow during the last 5 years is given in the following table:
Year
Disbursement
19992000
20002001
20012002
20022003
20032004
3.8.5.
28.58
32.99
9.56
19.66
41.96
Resource Gap
31
Bank
Loan
Keeping in view the trend in the performance of banks during the past few years and the
ground level credit flow, credit flow is estimated at Rs. 80.00 lakh during the year 20052006 leaving the credit gap of Rs. 40.40 Lakh as indicated below :
(Rs. lakh)
Particulars
2005-2006
Exploitable Potential
120.40
Expected credit flow
80.00
Resource Gap
40.40
3.8.6 Suggested Action Points:
Departments
The state Govt. should take necessary strategies for improvement of infrastructure.
The Veterinary dispensaries in the block level should be provided all facilities.
3.9
POULTRY
3.9.1
Introduction
Poultry is still taken up as a traditional backyard activity on a small scale and commercialization is yet to take
place in the district. With the increasing demand for poultry meat and eggs, there is a good scope for
commercialisation of the activity in future. Duckery is popular as an integrated component of the other
activities among the rural masses. Since the commercial farms are very few in the district there is a substantial
scope for development of this sector through bank credit.
According to the data available from District Animal Husbandry & veterinary office, the total population of
poultry birds and ducks in the district is as under :
Of which improved
species
(Desi)
Hens and Ducks
Sl.
No
Types of birds
1
Poultry
1,506,904
152,079
1,354,825
2
Ducks
575,261
137,097
438,164
2,082,165
289,176
1,792,989
TOTAL
3.9.2
Total Population
Availability and gaps in infrastructure and support services :
This has been dealt in detail under Dairy sector( para 3.8.2)
There is no hatchery and poultry-breeding farm in the district for supply of day old chicks. The day old
chicks are supplied from the neighbouring states like West Bengal.
There is no availability of quality feed, medicines, health care units etc.
No organized marketing arrangement for poultry meat and eggs exists in the district.
Recently M/S Arambagh Hatcheries (P) Ltd. and M/S Poultry Care for Cobb chicks have opened outlets for
supply of broiler chicks procured from Siliguri. The units are also supplying broiler feed. The supply of day old
32
chicks could also be ensured from hatchery unit located at Guwahati. The scope for broiler sector is showing
positive trends.
3.1.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
Considering the trend
and the ground level credit flow during the past few years,the base PLP projections
were retained. The details are given below :
BASE PLP
Activity
Unit
Cost
1. Poultry layer (500
birds)
2. Poultry broiler (500
birds)
3. Ducks (28+4)
TOTAL
Phy.
Units
Fin.
Outlay
Bank
Loan
Unit
Cost
UPDATED PLP
Phy.
Fin.
Units
Outlay
Bank
Loan
1.22
50
61
56.49
1.27
50
62.50
50.00
0.65
100
65
60.19
0.68
100
68.00
54.50
0.06
100
250
5.7
131.7
5.19
121.87
0.06
100
250
6.00
136.50
4.80
109.30
Block-wise physical and financial programme for the year 2005-06 has been given in the Annexure I.
3.9.4
Review of ground level credit
The details of the ground level credit flow to the sector during the last five years have been indicated below:
Year
Disbursement
1999-2000
0.84
3.9.5
2000-2001
7.93
2001-2002
3.97
2002-2003
0.90
2003-2004
2.03
Resource Gap:
Keeping in view the current trend in the ground credit flow, it is estimated that the credit flow from all the
agencies during the year 2005-06 is estimated at Rs.50.00 lakh and the estimated credit gap would be around
Rs. 59.30 lakh for the year 2005-06. Since each unit will have large outlay, credit disbursement is estimated at a
higher level compared to previous year disbursement. The credit gap can be met by increase lending by banks
with proper projections under the activity in the SAP. The Resource Gap for the year 2005-06 is as under:
(Rs. lakh)
Particulars
Amount
Exploitable potential
109.30
Expected credit flow
50.00
Resource gap
59.30
3.9.6
Suggested action points
Department
33
Information desk at the district veterinary office is needed to disseminate information about the potential of
poultry activity among the interested parties.
The initiatives taken by the AH Dept. in training and guiding a few rural youth in setting up of broiler units
need to be continued.
Steps to be taken to set up small hatchery cum feed mixing units with the assistance under Infrastructure
development fund of SGSY.
Similarly, custom hatching has tremendous potential and the department can look into identifying potential
pockets for setting up these units.
Banks
Banks to encourage the farmers for setting up broiler and layer units in the district.
SHG under SGSY could be identified for setting up of small scale broiler units, to cater to the increasing
demand for poultry product in the district.
34
3.10.
SHEEP, GOAT AND PIGGERY
3.10.1
Introduction
Piggery and Goatery are the popular activities under small animal development schemes in the district. Sheep
rearing is a low profile activity and goatery is more popular than sheep rearing among the people of the district.
In view of the demand, for goat meat, there is a scope for establishment of goat and piggery units in the district.
As per the 1997 livestock census, the district has a population of 7820 sheep; 116404 goat; 20,541 pigs. Of late,
pork consumers are increasing & demand is very high in N.E Region as well as in the district of Bongaigaon.
The activity is closely related to the tribal population and small and marginal farmers. There is a regular in flow
of Pigs from Bihar, U.P. and other eastern States.
3.10.2 Availability and gaps in infrastructure and support services
Infrastructural details have been covered under the dairy chapter. The significant development has been the
sanction of one Pork processing unit (capacity of 50 pigs/ day) by the Govt. of India, Ministry of food processing
with a grant-in-aid of Rs.100.0 lakh to M/S Dhaligaon Piggery Farm Cooperative Society and Allied Industries
Ltd., Dhaligaon, Bongaigaon district. The total project cost is Rs.202.58 lakh. Financial assistance to the tune of
Rs.40.75 lakh will be provided by BAC (Bodoland Autonomous council). The Govt. of India and BAC have
already released Rs.66.00 lakh and Rs.10.5 lakh respectively. The civil work of the project is over but some
machinery are yet to installed and lying for a long time without functioning . As a result the processing unit could
not be commenced in time. As per Mr. R.L. Basumatary , Secretary, informed that he need another 60 Lakh to
start the project and approached to the Governor of Assam , for financial assistance. Once the project becomes
operational at Dhaligaon, hygienic pork will be available in the district and scope for export to Bhutan etc., will
increase.
3.10.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06.
Considering the importance of the sector, SAP projections and the past performance the Base PLP projections
have been revised for the year 2005-2006.
(Rs. lakh)
BASE PLP
Activity
Uni
t
1. Goatery unit (5
female+1 male per unit)
2. Piggery breeding unit
(3+1)
3. Piggery (fattening unit
4)
TOTAL
Unit
Cost
Phy.
Units
Fin.
Outlay
Bank
Loan
Unit
Unit
Cost
UPDATED PLP
Fin.
Phy.
Outla
Units
y
Bank Loan
1
0.10
150.00
14.40
0.15
1
0.11
100
11.00
9.90
1
0.29
50.00
14.50
15.33
1
0.36
150
54.00
48.60
1
0.12
100.00
12.00
12.50
1
0.15
150
22.50
20.25
0.51
300.00
40.90
42.83
0.63
400
87.50
78.75
Block-wise physical and financial programme for the year 2005-06 has been given in the Annexure I.
3.10.4 Review of ground level credit :
35
Due to non stabilisation of SAMIS, the purpose wise breakup are not readily available. However, it is reported
that major portion of the disbursement is for piggery.
Piggery has good potential from the institutional point of view. The target vis-a-vis achievement during the last
four years under this sector is as under :
(Rs.lakh)
Year
Disbursement
2000-2001
28
2001-2002
12.57
2002-2003
10.44
2003-2004
30.25
3.10.5 Resource Gap
Taking into account the past trend in ground level credit flow ,the expected flow during 2005 - 2006 is estimated
at Rs.70.00 lakh. Thus credit gap is estimated at Rs.8.75 lakh as shown hereunder :
(Rs. lakh)
Particulars
Exploitable Potential
2005-2006
78.75
Expected credit flow
70.00
Resource Gap
8.75
Suggested Action Points:
State Govt. to take steps for improving infrastructure.
Veterinary dispensary at block level to be ensured functioning.
Services of Veterinary Dr. at block level to be ensured.
The Pork Processing Plant should be made operational, the Coop Society should take necessary steps in this
regard
36
3.11
FISHERIES DEVELOPMENT
3.11.1
Introduction
The district of Bongaigaon is endowed with fisheries resources in the form of ponds/tanks, Beel, swamps, lowlying area, derelict water bodies and a diverse network of river and revulets.
In addition to above an estimated network of 100 kms. of riverine stretches including a part of the mighty river
Brahmaputra can be considered for the exploitation of fisheries. The present annual fish production from the
above resources in the District is about 5494.21 tonnes during 2003-2004 as against a demand of 8972 tonnes
for the entire district at the recommended rate of 11 Kg. per capita per annum assuming 90% of the human
population consume fish. There is a wide gap between production and demand. The short fall is partially made
good through import of fish from other states like Andhra Pradesh, U.P, W.B., Bihar etc. Out of the total
production in the district nearly 70% comes from capture fishery resources and 30% from culture fisheries and
nearly 313.50 tonnes imported during 2003-04 and exported Karati fish nearly 50 tonnes during 2003-04.
As regards existing natural resources in the district of Bongaigaon, around 548.71 hectare of water spread area
is under ponds / tanks with average production of less than 1 tonne. per ha/year, and there is ample scope for
improving this production to 3mt/ha/year by adopting scientific culture techniques. Besides, there are low lying
and swampy areas of about 623.30 ha. available for construction of new ponds/ tanks .
By adopting scientific technology and management practices the farmers can raise the average production of
fish from Beel in the district. Thus we can assume potential of 1859.15 ha of Beel fisheries, 5336.20 ha of river
fish along with 548.71 ha. of culture fisheries development. The Fish Seed production in private sectors was
22.15 million during 2003-2004 indicating good sign for development of activity.
There is a declining trend in fish catch from rivers in the entire state in general and Bongaigaon district in
particular due to non availability of adequate quantity of catch on account of indiscriminate fishing, large scale
capture of undersized fishes and unscientific management. Thus unless steps are taken to improve and conserve
the riverine fish stock the gap between demand and supply would widen substantially.
3.11.2 Availability and gaps in infrastructure and support services
(i) Infrastructure facilities are required for fish culture in ponds/ tank, Beel fisheries, Riverine fisheries, and
Inland fisheries to cater to the development needs. There is a need for fish seed hatcheries and rearing center,
training center, cold storage/ ice plants, feed at reasonable rate, water analysis kits, Transportation facilitates
and, Marketing out.
(ii) The office of District Fisheries Development Officer was established on 2nd July 1993. The FFDA (Fish
Farmers Development Agency) was reregistered on 29th October 1993 and looked after by Additional District
Fisheries Development office. There is no separate FFDA office. No major development has taken place during
the last five years in the infrastructure availability. The Govt. Fish farms (1 in Abhayapuri) have been given on
5 years lease to private agencies. There are two Eco- hatcheries, 6 fish production, one fish grower under private
sector located at Garaimari, Kisanbazar and Nadiapara. The market of Garaimari is popular for the sale of fish
seed . Total fish seed production during the year under private sectors was 27.17 Million, which contributes
0.8% total production in the State and is active for 2 to 3 months/year and BAC, Kokrajhar has approved a
scheme for development of Nayachora Beel under Bongaigaon subdivision at a cost of Rs. 3.00 lakh but
37
approval yet to be received. There are 3106 nos of pond/tank with water area 273.02 ha developed by private
fish farmers, 847 nos with water area of 215.28 ha under F.F.D.A.
(iii) The ARIASP Schemes implemented in the district under Fisheries sector are – 46.41 ha. Farm pond, 17.31
ha. Community tank, 22.81 ha Fish cum Horticulture 2.42 ha pig- cum fish culture 2.27 ha, paddy cum fish
culture 1.60 ha and 121 beneficiaries have been given training for fish farming.
F.F.D.A. Programme- The fishery dept. is responsible for the successful implementation of fisheries dev.
Scheme in rural areas . The scheme on the development activities will be shared on 75:25 basis between the
Govt. Of India and State Govt. The subsidy will be provided at 25% for SC/ST beneficiary and 20% for general
beneficiaries .Subsidy will be provided to the beneficiary if the remaining cost of item is contributed by him
from his / her own resources. The scheme are as follows:
A) Reclamation of /Renovation of pond /tank:- The estimated outlay is Rs. 60000/- per ha.; subsidy is at 20%
with maximum ceiling of Rs. 12,000/- per ha. for all farmers except SC/ST for whom it is Rs.15,000/- per ha.
B) Input for 1st year fish culture:- The estimated outlay is Rs.30,000/-per ha., subsidy is @ 20% with
maximum ceiling of Rs. 6,000/- per ha. For all farmers except SC/ST for whom it is Rs.7,000/- per ha.
C) Construction of new pond/tank:- The estimated outlay is Rs. 2.0 lakh per ha, subsidy is @ 20% with a
maximum ceiling of Rs. 40000/- per ha for all farmers except SC/ST, for whom it is Rs. 50,000/- per ha.
D) Training of fish farmers:- Stipend @ Rs. 50/- per day during the training period of 10 days & a lum-sum of
Rs. 100/- for field visits.
(iv) The fishery department in the district has inadequate staff. Most of the staff members are on deputation
from other sub- divisions. The sub-divisional office has not been established at Bijni. There are only a limited
number of Fisheries Extension Officers and Demonstrators at the block level. The Department is functioning
without adequate infrastructure like Laboratory, Training Center, Audio-visual Equipments, & Production unit.
Posting of fishery extension officer at Sidli, Tapattari and Boitamari Dev. Blocks and fishery demonstrator at
Dantol Dev. Blocks are necessary.
Regular staff have not been posted to FFDA, Bongaigaon. The district fisheries officer holds additional charge.
3.11.3
Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
Based on the trends in credit flow in the district, the Base PLP projections and the importance of the sector the
projections have been revised as follows for the year 2005-2006.
( Rs. lakh)
Activity (All activities having
potential may be furnished)
Uni
t
1.Fish culture in new ponds
2. Fish culture in low lying areas
requiring 0.5 mexcavations (ha.)
3. Reclamation of derelict ponds /
beel. (ha)
4. Pig cum fisheries
5. Duck cum fish culture
Unit
Cost
BASE PLP
Phy.
Fin.
Unit Outlay
Bank
Loan
Unit
cost
UPDATED PLP
Phy.
Fin.
Bank
Unit
outlay
Loan
ha.
2.85
5
14.25 13.19
2.20
7
15.40
11.70
ha.
0.15
100
15.00 13.89
1.85
20
37.00
27.75
ha.
0.13
100
13.30 12.30
0.65
20
13.00
9.75
ha.
ha.
1.53
1.30
25
10
38.25 35.45
13.00 12.04
2.40
2.40
7
7
16.80
16.80
12.60
12.60
38
6. Fish seed hatcharies (acre.)
TOTAL
ha.
3.50
5
1.23
1.12
87.99
3.50
2
63
7.00
106.00
5.25
79.65
Block-wise physical and financial programme for the year 2005-06 has been given in the Annexure I.
3.11.4 Review of Ground Level Credit
An amount of Rs.6.55 lakh disbursement have been made during the 2003-2004. Discussions with Fisheries
department officials in the district revealed that in spite of a good potential, the actual credit flow so far has been
very slow. However, with the increase in demand for fish and fish products, more and more private
entrepreneurs are showing interest in taking up this activity and thus credit requirements is also expected to
grow in the coming years.
3.11.5 Resource Gap
Considering the demand for fish products in the district, it is expected that the credit flow will increase . It is
estimated that an amount of Rs. 50.00 lakh would be disbursed by the banks during 2005-2006 . The credit
gap has been estimated at Rs. 29.65 lakh.
(Rs. lakh)
Particulars
3.11.6
2004-2005
Exploitable potential
79.65
Expected credit flow
50.00
Resource Gap
29.65
Suggested Action Points:
Departments
Fishery Department to take concrete steps for development of infrastructures like fish seed hatchery,
rearing centre, cold storage
Support training for fish farmers in scientific methods and technology.
Feed to be made available at reasonable cost.
Need for better coordination between FFDA and the banks
Banks
To tap the private entrepreneurs for undertaking fisheries activity.
39
3.12.
STORAGE, GODOWNS AND MARKET YARDS
3.12.1. Introduction
The State of Assam has made a considerable progress in agricultural sector, mainly rice production in recent
years. However, the existing market yards and storage facilities are not adequate in the district. The union Govt.
have proposed to create additional cold storage capacity of 12 lakh metric tonnes and additional 4.5 lakh tones
for onion storage godowns in the country under Capital Investment Subsidy Scheme implement through
NABARD. Setting up of STWs under RIDF programme has also increased agricultural production. Therefore,
there is need to promote to investments in Storage Godowns and Market yard projects.
3.12.2. Availability and Gap in Infrastructure and Support Services.
(i)
The existing market yards and storage facilities in the Bongaigaon district are inadequate. There is a
need for construction of additional number of cold storage, rural godowns and market yards etc.
(ii)
The Bongaigaon district has a well-laid network of road and railway lines throughout the district
linking villages with major markets and railway stations. The seasonal crops like banana, pineapple,
orange, and vegetable etc. grown in the district offers good scope for storage and marketing help the
farmers to realise better prices for the products.
3.12.3 Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2004-05
The ground level credit flow during the last three years is reported as Nil. No projections have been made in
SAP for the last few years in this sector, However, it is anticipated that there will be demand for credit in future
under this sector, the Base PLP projections for the year 2005-2006 has been revised as under :
Activity (All activities
having potential may be
Uni
furnished)
t
1. Marketyard
2. Storage / godowns
3. Mini cold storage
TOTAL
No.
No.
No.
BASE PLP
Phy.
Fin.
Bank
Unit
Unit
Outlay Loan
Cost
s
18.00 1
18.00 15.87
3.50 2
7.00 12.34
7.00 2
14.00 11.57
28.50 5
21.18 39.78
Unit
No.
No.
No.
( Rs. lakh)
UPDATED PLP
Phy.
Fin.
Bank Loan
Units Outlay
Unit
Cost
18.00
3.50
7.00
10.68
1
2
2
5
18.00
7.00
14.00
21.18
Block-wise physical and financial programme for the year 2005-06 has been given in the Annexure I.
3.12.4 Resource Gap
Five units has been proposed keeping in view developmental needs of the district. Though there was no credit
disbursement toward this activity earlier, it is presumed that new entrepreneur will undertake the activity. Bank
finance is estimated at Rs 10 lakh credit The credit gap has been estimated at Rs.21.20 lakh for the year 20052006. The gap can be met by the progressive entrepreneurs, subsidy from GoI in the district. The comparative
resource gap is indicated as under :
(Rs. lakh)
Particulars
Exploitable potential
Expected credit flow
40
2005-2006
31.20
10.00
14.
5.
11.
31.
Resource Gap
3.12.5
21.20
Suggested Action Points:
Department
The District Administration, DRDA and District Agriculture Department to take necessary steps for
establishing cold storage, rural godowns and market yard in the district.
Capital investment subsidy scheme for cold storages
A capital investment subsidy scheme for construction / expansion / modernisation of cold storage and
storage for horticulture produce was introduced by Govt. of India in order to reduce the post harvest losses
of horticulture produce. The scheme envisages not only creation of additional capacity by construction of
be new cold storages but also encourages, expansion / modernisation / renovation or rehabilitation of old
cold storage units. Subsidy is available @ 33.33% of the project cost with a ceiling of Rs.60.00 lakh.
Since Assam produces about 39 lakh tonnes of fruits and vegetables every year including potatoes, the demand
for cold storages in Assam is gradually increasing. The cold storages will improve the marketing avenues for
the produce and the farmers will be able to realise higher income.
Capital investment subsidy scheme for rural godowns
The Directorate of Marketing and Inspection, MoA, Government of India in collaboration with NABARD has
formulated a credit linked subsidy scheme for construction/ renovation/expansion of rural godowns.
Creation of scientific storage capacity in rural areas for meeting the requirements of farmers for
storing farm produce, prevent distress sale of produce by farmers immediately after harvest,
promote pledge financing and marketing credit, introduce a national system of warehouse receipts
in respect of agricultural commodities stored in such godowns, etc. are the main objective of the
scheme.
The scheme provides credit-linked back-ended capital investment subsidy.
For the projects in Nort-East Region subsidy admissible @ 33.33% of the project cost with a ceiling of
Rs.50.00 lakh.
41
3.13
NON CONVENTIONAL ENERGY SOURCES/ BIOGAS
3.13.1. Introduction
Fuel scarcity is becoming acute day by day and the over exploitation of fossil fuel is also creating an irreversible
ecological peril. The significance of Bio-Gas Development was realized by KVIC in 1961, for its special
contribution in maintaining the ecological balance through exploitation of non-conventional energy resources
improving sanitation by effective use of animal excreta, converting into high value organic manure and most
importantly as an alternative to total dependence on conventional resources, especially in rural areas. In keeping
with this objective, the Govt. of India launched “National project on Bio-Gas Development (NPBD) in 1981
with the Department of Non-conventional Energy Sources (DNES) under the Ministry of Energy at the Center
and the Department of Rural Development at the State level as nodal implementation agencies. Although, the
scope for development of Bio-gas in Assam as a whole is immense as has been indicated by the DNES
harnessing of existing potential has been below 5%, large scale development of Bio-Gas in Bongaigaon district
is relatively less when compared to other districts of the state. This is due to the fact that the Cattle population in
the district is less. There are other sources which are easily available like electricity, coal, fuel wood etc.
However, there is need to change the mindset of the people towards setting up bio-gas plants.
3.13.2
(i)
Availability and gaps in infrastructure and support services
For successful installation and operation of Biogas plant, the following infrastructures are generally
required :
Cow-dung is the main raw material. Therefore, the main requisite will be availability of sufficient
number of animals to ensure supply of adequate quantity of cow- dung on a perennial basis.
For construction of plant, the material viz. cement, bricks, and steel should be available in time.
Skilled masons should be available locally for repairing and maintenance of installed Biogas plants.
Finally there should be a nodal agency to popularize the Biogas plants and to look after the execution of
plants, training to farmers and to arrange subsidy.
(ii)
The District Rural Development Agency (DRDA) and KVIB, Bongaigaon are the nodal agencies
responsible for motivation, demonstration, providing technical guidance, supervision of construction
and linkage with institutional credit. Both the agencies posses technical staff to look after the biogas
plants. At present, the DRDA Bongaigaon has 5 turn key assistants to motivate the rural people to use
Biogas and one field assistant to supervise the implementation of Biogas plant. The installation is
being made by DRDA through approved contractors. At the state level Govt. of Assam plans to
increase the installation of Biogas plants during the Xth five-year plan period.
(iii)
Comparing the ideal infrastructure required for Biogas vis-à-vis the infrastructure available in the
district, we come across the following gaps :
The district has a total cattle and buffalo population of about 3.075 lakh, definitely a limiting factor for
adequate supply of cow – dung for the Biogas plants.
Difficulty in cow dung collection due to open grazing system.
42
Skilled masons for installation as well as subsequent maintenance and repair is always in short supply in
rural area.
The existing number of turnkey assistants and supervising staff with DRDA is not adequate.
3.13.3 Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-2006
Based on the trend in achievement under this sector during the last few years the Base PLP have been revised
for the year 2005-2006.
Activity (All activities having
potential may be furnished)
BASE PLP
Unit
Unit
Cost
Phy.
Units
Fin.
Outlay
Bank
Loan
Unit
Cost
No.
0.13
100
100
13.00
10.02
10.02
0.13
1.Biogas plant
TOTAL
(Rs. lakh)
UPDATED PLP
Phy.
Fin.
Bank Loan
Units Outlay
25
25
3.25
3.25
2.27
2.27
Block-wise physical and financial projection for 2005-2006 are given in Annexure-I.
3.13.4
Review of ground level credit
The data on credit flow in this sector is not readily available. Nominal projection have been made in SAP over
the years without any result. .
3.13.5. Resource Gap
In view of trend and feed back, it is anticipated that the credit flow would increase and the credit gap has been
estimated at Rs. 1.27 lakh for the year 2005-2006. The comparative resource gap is indicated as under:
(Rs. lakh)
Particulars
2005-2006
Exploitable potential
2.27
Expected credit flow
1.00
Resource gap
1.27
To increase the credit flow to Bio- gas plants the banks support is necessary.
The Development Department of Govt. like DRDA and KVIB should create adequate infrastructure for
installation and maintenance of the plants.
3.13.6 OTHER ISSUES
(i)
Although the Bongaigaon district has sufficient potentials for implementation of various innovative
schemes nothing has been coming up in the district. Cow-dung is the main raw material. Therefore, the main
requisite will be availability of sufficient number of animals to ensure supply of adequate quantity of cow- dung
on a perennial basis.
For construction of plant, the material viz. cement, bricks, and steel should be available in time.
Skilled masons should be available locally for repairing and maintenance of installed Biogas plants.
43
Finally there should be a nodal agency to popularize the Biogas plants and to look after the execution of
plants, training to farmers and to arrange subsidy.
(ii)
The District Rural Development Agency (DRDA) and KVIB, Bongaigaon are the nodal agencies
responsible for motivation, demonstration, providing technical guidance, supervision of construction and
linkage with institutional credit. Both the agencies posses technical staff to look after the biogas plants. At
present, the DRDA Bongaigaon has 5 turn key assistants to motivate the rural people.
Suggested Action Points
Department
The proposals should be build up keeping in view of size of plant and availability of adequate numbers of
cattle/ buffaloes.
DRDA and KVID - Nodal agency to popularize the Biogas plants DRDA may arrange for installation of
plants on turn key basis. Farmers may also be given training on use of plants.
Nodal agencies to motivate, demonstrate, provide technical guidance, supervision of construction and
linkage with institutional credit.
44
OTHER ALLIED ACTIVITIY (BULLOCK AND BULLOCK CARTS, etc.)
3.14
Bullock and Bullock Carts
3.14.1
Introduction
As we have discussed earlier in this chapter, the economy of Bongaigaon is basically agrarian with more than
70% of its population depending directly or indirectly on agriculture. The district has about 1135589 cultivators
of which 77431 i.e. 48% belong to category of small and marginal farmers. Most of these farmers adopt
traditional cultivation practices solely dependent on bullocks for tilling their lands. The Govt. of Assam has
introduced a group-farming scheme for power tillers. However, number of power tillers acquired so far have
been very low. The most easily available and cheapest mode of transportation is Bullock carts for carrying
various agricultural and other domestic products. Thus inspite of introduction of various improved farm
machineries, the “Bullock power” still remains the main source for various farm operations and transportation in
the rural areas and it will continue for some more time.
3.14.2
Availability and gaps in infrastructure and support services
(i)
Beside adequate number of plough bullocks in the district other infrastructural facilities are required to
support the development of the potential they are :
Availability of good quality of animals (bullock and he buffalo), proper veterinary facilities, green and dry
fodder, pliable roads for easy and smooth hauling of carts.
Adequate credit delivery system to offer financial support to farmers.
(ii)
Existing male cattle and buffalo population in the district is as follows:
Particulars
Papulation (Nos)
a. Crossbreed male cattle
2,843
b. Indigenous male cattle
140,554
c. He Buffalo
2,641
Total
(iii)
146,038
Existing veterinary facility in the district has already been discussed under “Dairy development” (Para
3.8.2)
(iv)
Availability of workers for manufacturing traditional bullock- carts.
(v)
The activity is mostly covered under various subsidy-linked programme.
(vi)
The indigenous non-descript type cattle have comparatively low ploughing capacity. There is acute
shortage of good quality animals as well as organized market for purchase/sale. Lack of improved tools
and implements for tilling with bullocks, fabricators /skilled worker for manufacturing improved
variety of carts for smooth and pliable hauling.
3.14.3 Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
45
Due to poor ground level credit flow in the past few years, the base PLP projections have been revised as
follows;
BASE PLP
Activity
Unit
1. Plough bullock
2. Bullock & bullock cart.
TOTAL
No.
No.
Unit
Cost
0.10
0.13
0.23
Phy.
Units
Fin.
Outlay
100
80
180
10.00
10.40
20.40
Bank
Loan
Unit
Cost
9.92
10.31
20.23
0.10
0.16
(Rs. lakh)
UPDATED PLP
Fin.
Phy.
Outla
Bank Loan
Units
y
25
10
35
2.50
1.60
4.10
Block wise physical and financial programme for the year 2005-06 have been given in Annexure I.
3.14.4. Review of Ground Level Credit
The exact data on credit for financing of bullock was not available as the LBR system is yet to stabilise in the
district. However, it is estimated that around Rs. 1.27 lakh could be disbursed by the banks under the activity
during 2005-06
3.14.5. Resource Gap
Based on the trend and the importance given to the activity it is anticipated that the credit flow would increase
and accordingly the credit gap is estimated at Rs. 2.42 lakh for the year 2005-2006. The gap can be met by down
payment by borrowers/ subsidy by Govt.. The resource gap is indicated below :
(Rs. lakh)
Particulars
2005-2006
Exploitable potential
3.69
Expected credit flow
1.27
Resource gap
2.42
3.14.6 Suggested Action Points
Government Department
DRDA should continue to sponsor the programme under SGSY for interested
borrowers.
Banks
Adequate provision for this activity may be made in ACP.
46
2.25
1.44
3.69
III.
CREDIT FOR NON-FARM SECTOR ACTIVITIES
3.15
Non-Farm Sector
3.15.1. Inroduction
The Bongaigaon district is represented as conglomeration of numerous ethnic groups with various cultures and
traditions. Although the agriculture is main source of income of people, it cannot absorb all the increasing
labour force. Therefore,
Non-farm sector in an important sector from the point of view of increasing
employment opportunities and promoting industrial development. The total work force of 185696 accounted for
20% of the total population as per 2001 census. Cultivators 113558 and Agriculture labourers 52794 accounted
for about 90% of total work force. Since the data of 2001 census is available the occupational distribution of
work force in the district as per 1991 census is as follows :
Sl.
Occupation
No.
1
Allied activities
3,182
Percentage of total
work force
1.10
3,319
1.14
Population
2
Mining, processing, manufacturing, Servicing, etc.
3
Construction, trade & other industries
24,357
8.50
4
Transport, storage & communication
9,864
3.40
5
Marginal workers
39,135
13.50
6
Other services
24,802
8.55
There is vast potential for NFS activities as per DIC, Bongaigaon for the agro based (Processing of Areca nut,
pineapple, spices, citronella, mushroom, ginger etc.) and forest based (Li-camph, Salpata (plates, cups), Herbal/
Ayurvedic medicines, Sal seed processing unit). The Bongaigaon Refinery and Petrochemical Ltd. and Dhaligaon
are the major industries in N.E. Region are situated
in the district. The other industries are Bongaigaon
Alluminium Factory, Ashok Paper Mills, Jogighopa Bottling plant of LPG, Assam Textile Corporation, Bharatppur
Oxygen Gas, Dhaligaon etc. The number of SSLs registered up to December 1997 were 351.
3.15.2 Availability and gaps in infrastructure and support services
In order to support the development as above, the following infrastructure would be necessary :
Availability of land.
Construction material/ raw materials.
Uninterrupted power supply.
Transport and communication.
Technical assistance and quality testing laboratories.
Nodal agency to provide entrepreneurial motivation, training and guidance.
Marketing arrangements.
Work shed / industrial estates.
Environmental safety measures.
Suitable banking network to provide necessary credit support.
47
The District Industries and Commerce Center (DICC), Bongaigaon is the primary agency for providing all
services and supporting facilities to entrepreneur and artisans under a single roof for setting up of industries in the
district was set up in 1996. The DICC Bongaigaon is headed by General Manager and supported by one
functional manager, 2 Assistant Directors, 3 Assistant Managers, 6 extension officers including Bijni Sub
Division. The DICC Abhayapuri is headed by Assistant Director and supported by superintendent and 4 extension
officers. The other organizations involved in this sector include KVIC, DRDA and ASIDC.
The DICC provides service facilities in preparation and selection of suitable schemes, feasibility report, supply of scarce
raw materials, marketing arrangements, financial arrangements through local financial institutions, subsidy money etc.
DICC is also the nodal agency for implementation of PRMY scheme. The PMRY physical target was 300 of which 213
has been sanctioned and 91 disbursed during 2003-04. Various schemes implemented by DICC include loans to SSI units,
training, margin money loan, supply of improved tools, interest subsidy, power subsidy under state plan.
The existing infrastructural facilities available for the entrepreneurs are as follows:
Industrial estate, New Bongaigaon: 19 Bighas with 34 sheds have been constructed and allotted to
entrepreneurs, of these only 15 are functioning. Also industrial area with 10 bigha of land where M/S
Brahmaputra corporation and S.S. Dying industry established.
Commercial Estate, North Bongaigaon is having 2 sheds constructed and allotted to entrepreneurs with one
Bigha of open space for expansion. One fabrication unit and one plastic bag unit is functioning.
Commercial Estate, Abhayapuri : 3 Bighas with five constructed sheds and sufficient open space for
expansion in future.
Growth Center, Khazira, Dhaligaon : 27 Bighas of land, 2 sheds constructed and allotted to entrepreneurs
for proposed pork processing unit.
Commercial Estates at Khasikotra (for ST), Bhetagaon(Bijni)- 37, Bighas and a few more potential areas
coming up in the district.
The future plans include:
To develop rural industriesfacilaties and growth centre with minimum land area upto 2 bighas at suitable
location in every ANCHALICT PANCHAYUAT and Blocks in the district.
Existing industrial infrastructure : Handloom and Textile activities are looked after by superintendent,
Handloom and Textile, North Salmara, Abhayapuri. The District office is at Kokrajhar. There are 3 HTCs at
Abhayapuri, Chakapara and Barlawgaon. There are two extension service units (WESU) at Bijni and
Bishnupur. Further, there are nine PWEs in North Salmara, 28 in Bongaigaon and 17 in Bijni Sub-Division
with district level Handloom Cooperative Society at Bongaigaon.
The KVIC's 100% margin money scheme will be operated by DIC (75 nos.) and KVIB/KVIC (225 units)
during 2000-2001. Bank loan has been fixed at Rs. 50,000/- per unit by District Banker Committee.
If we compare the infrastructural facilities required for development of NFS activities and the present infrastructural
facilities available, as discussed above, we do not come across any such major gap for the time being. However,
certain areas may still have to be improved viz. assured power supply to all rural areas , backward and forward
48
linkages in the form of adequate and timely input supply and marketing of the finished products , training and
extension support to fine tune the entrepreneurs aptitude , upgradation of skills etc. Some other constraints are : Lack of market yards/ cold storage, inadequate production credit, testing laboratories and consultancy services
for project preparation and evaluation in the district.
3.15.3 Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
Considering the importance of the sector especially from the point of employment generation the Base PLP
projections and the past performance, the following revision has been made in base PLP projections for the year
2005-06.
BASE PLP
ctivity
Unit
mall scale industries.
illage/ cottage industries.
andicraft/ tiny sectors.
ural artisans and
ecentralised sectors
Working capital
Total
1
1
1
1
5
Unit
Cost
5.00
0.50
.0.12
0.12
5.74
Phy.
Units
200
300
350
350
Fin.
Bank Unit
Outla
Loan Cost
y
1000.00 130.22 5.00
150.00 125.02 0.50
42.00 36.45 0.12
42.00 36.45 0.12
65.62
1,200 1234.00 393.76
Phy.
Unit
s
100
100
200
200
600
( Rs.Lakh)
UPDATED PLP
Fin.
Bank Loan
Outlay
500.00
50.00
24.00
24.00
375.00
37.50
18.00
18.00
804.80
110.44
558.94
Block-wise physical and financial programme for the year 2005-2006 hav been given in Annexure-I
3.15.4. Review of Ground Level Credit
The progress and ground level credit flow during the year 2005- 2006 have been given as under:
( Rs.lakh)
Amount
Year
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
80.91
56.50
70.73
89.45
272.30
It is observed from the above the trend is unven over last five years. It is expected that the disbursement during
the year 2005-06 would be aroundRs. 350 lakhs.
3.15.5
Resource Gap
Based on the past trend of credit flow, potential that exists in the district, the expected credit flow and the Gap
during the year 2005-2006 is estimated at Rs. 208.94 lakhs.
(Rs. lakh)
Particulars
Amount
Exploitable potential
558.94
49
Expected credit flow
350.00
Resource gap
208.94
Suggested Action Points
Department
DICC to play a vital role in the identification of location specific non farm activities taking into account the
raw materials availability,skills and market potential.
State Government may have to improve the position with regard to availability of electricity,
communication facilities etc. So as to enable growth of micro-enterprises.
Scope for involving women as well as SHGs inNFS activities need to be explored by the DRDA.
NGOs to take active part in promotional schemes of NABARD, viz.,REDP, ARWIND and cluster approach
for rural industrialization.
Banks
Banks may extend credit facilities to the educated unemployed youth to set up their NFS units and provide
required working capital for the existing for the existing Industrial Units.
MODEL SCHEME FOR SWAROJGAR CREDIT CARD
The Scheme is called Swarojgar Credit Card scheme ( SCCS)
Introduction
On the eve of Independence day, Hon’ble Prime Minister of India in his address to the Nation
announced that a New Credit Card facility for artisan, handloom weavers, handicraftsmen,
fishermen, rickshaw owners, self employed persons etc. would be introduced to enable them
to have easy access to the formal credit system on the lines of facilities made available to the
farming community by way of kisan credit card scheme and SSI sector by way of Laghu
Udyami Credit Card schemes. Accordingly , NABARD, and RBI have formulated a model
scheme SWAROJGAR Credit Card and issued detailed guidelines to the cooperatives ,
RRBs, PUCBs and Com. Banks, respectively.
Objectives
SCC Scheme aims at providing adequate and timely credit i.e., working capital/ or block
capital or both to small artisans, handloom weavers, service sector, fishermen , self
employed persons, rickshaw owners, other micro- entrepreneurs, etc. from the banking
system in a flexible , hassle free and cost effective manner. The facility may also include a
reasonable component for consumption needs.
50
Participating banks
The scheme is to be implemented by all commercial banks , RRBs, SCBs, DCCBs, PACSs,
SCARDBs, PACARDBs and scheduled primary coop. Banks. The banks will have to actively
market the scheme to the eligible clientele.
Nature of financial accommodation
The credit facility extended under the scheme is in the nature of a composite loan including
term loan / revolving cash credit
Sanction of term loan/ fixation of working capital limit
The term loan will be provided for meeting the investment requirements and it will be
repaid within five years in suitable installments.
The revolving cash credit will be fixed taking into account the operating cycle / nature of
the investment and shall be fixed based on available balance after sanction of term loan.
Quantum of limit
Rs. 25000/- per borrower as composite loan . The initial investment in fixed assets and or
working capital requirement / recurring expenditure of the borrower are to be taken as the
base for fixing the limit. The working capital / recurring expenditure limit may be in the
form of a revolving cash credit and fixed as a percentage of the turnover divided by the
number of operating cycle per annum. A component for consumption credit could be built in
keeping in view the value of the family labour in the productive activity. The total limit
would have a relationship with the projected net earning and the repayment capacity of the
borrower.
Validity
SCC is normally valid for 5 years subject to satisfactory operation of the account and renewed on a yearly basis
through simple review process. The operations in the account should be regular.
Issue of Cards
The beneficiaries under the scheme will be issued with a laminated credit card and a pass book. This will
serve as an identity card as well as facilitate recording of the transactions on an ongoing basis . The pass
book would contain the repayment schedule of the term loan also. A passport size photograph of the
holder will be affixed on the card at the space provided for . The card holder would be required to produce
the card and the pass book whenever he/ she withdraws cash from the account.
Self Help Groups can also be issued cards in their name and they will be liable jointly and severally for
repayment.
As far as possible cluster approach will be followed in implementing the scheme.
Fees towards issue of card/ processing may not exceed Rs. 50/-.
Renewal of Working Capital limits.
51
Limits will be renewed annually based on the amount credited to the cash credit account
and the repayment performance in the term loan account.
Under the scheme, term loan component could be enhanced within the overall limit in
case of need subject to satisfactory repayment performance of the borrower.
The revolving cash credit to the extent of working capital repaid may be renewed within
the overall ceiling of Rs. 25000/- and it should be normally repaid within 12 months
from the date of drawal. However , the minimum discipline expected is that applicable to
cash credit accounts. Where necessary, the working capital component could be
enhanced within the overall ceiling to provide for escalation in the cost of inputs, etc.
subject to satisfactory repayment performance.
No drawal will be permitted if revolving cash credit remains outstanding for more than
12 months.
The aggregate credits in the account during the 12 months period should normally be
equal to the maximum outstanding in the working capital component plus the
installment of the term loan availed of , if any.
Operation of the scheme
The banks will have absolute freedom to select the clients for the card. There will be no subsidy from the
Government under this scheme.
The borrower can avail the credit facility as per his/ her requirements i.e. either term loan or working capital
loan or a combination of both.
The beneficiaries under the scheme are to be issued with a laminated credit card and a passbook incorporating the
name, address, borrowing limit, validity etc. which will serve both as an identity card as well as facilitate
recording of the transactions on an ongoing basis.
The issuing branch would maintain the ledger account in respect of each SCC account holder. The term
loan component and working capital component will be accounted for separately. The operations in the
account will be generally through the card issuing branch . However, the banks may at their discretion
permit of the clientele.
Withdrawal from the account will be through withdrawal slip/ cheque. The SCC and pass book should be
produced each time cash withdrawal is made.
Opening of SB A/C should not be a precondition for issue of SCC. However , in case SCC holder desires on
his / her own to open SB A/C, he / she may be allowed to do so.
Insurance
Beneficiaries under the scheme would automatically be covered under the group insurance
scheme and the premium would be shared by the bank and the borrower equally . Each bank
52
may negotiate the terms of insurance with a company of its choice on a national or regional
basis.
Security / Margin/ Rate of interest/ Prudential norms
Security / Margin/ Rate of interest/ Prudential norms are applicable as per RBI norms.
Monitoring
NABARD being the nodal agency for monitoring the scheme, in order to facilitate close monitoring of the
scheme at the ground level , banks are required to report the monthly progress to the Regional Offices of
NABARD concerned.
Strategy
The scheme envisages issue of 2 lakh cards during the year 2003-04 and to achieve a target of
40 lakh before the end of X Five year plan.
53
(IV)
Other Priority and Non - Priority sector
3.16.
OTHER PRIORITY SECTORS
3.16.1. Introduction
As discussed under Non-farm sector chapter, a large section of potential working population in the district is
without any job and needs to be provided with some income generating activity. Bongaigaon is having a good
scope for absorbing people in various kinds of business and service activities. The activities covered under other
priority sector are transport operators (SRTO), retail trade (RT), small business (SB), professional and self employment (P&SE), education loans, consumption loans, etc. The tertiary sector assumes importance as the
economy grows and this is in turn will influence the production and productivity in primary and secondary
sectors creating long term potential in the district.
3.16.2. Availability and gaps in infrastructure and support services
(i) The most important infrastructure required for development of trade and service activities are transport and
communication facilities, organized marketing system, easy information system, uninterrupted electricity supply
and sincere entrepreneurship, establishment of big industries in the district.
(ii) The availability of infrastructure for setting up projects under OPS is discussed under Non-farm sector
chapter.
3.16.3 Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of
infrastructure changes for the year 2005-06
Considering the importance of this sector and the past performance the following revision has been made in the
base PLP projections for the year 2005-2006.
( Rs.Lakh)
Activity
SRTO
Service/buiness
Rural housing
Education
Total
Unit
1
1
1
1
4
Unit
Cost
3.25
0.32
0.70
0.17
BASE PLP
Phy.
Fin.
Unit
Outlay
s
50 162.50
1,500 480.00
150 105.00
50
8.50
1,750
Bank
Loan
147.65
453.60
99.22
8.03
708.50
Unit
Cost
3.25
0.32
0.70
0.17
UPDATED PLP
Phy.
Fin.
Units
outlay
100
1,500
450
50
2,100
325.00
384.00
480.00
8.50
1197.50
Bank
Loan
292.50
345.60
432.00
7.65
1077.75
Block-wise physical and financial programme for the year 2005-06 are given Anexure-I.
3.16.4 Review of ground level credit flow:
The total credit flow under the broad sector during last four to seven years in the district was has been given
blow:
YEAR
2001-2002
2002-2003
2003-2004
2002-2003
2003-2004
54
(Rs. lakh)
ACHIEVEMENT
458.33
649.01
608.68
649.01
608.68
It is observed from the above that the disbursements show increasing trend over the last few years. Further
increase in the ground level disbursement under this sector is expected to grow substantially in the future and
esstimated ground level credit during the year 2005-2006 is likely to be of the order of Rs. 900.00 lakhs.
3.16.5. Resource Gap
Based on the past trend of the credit flow at ground level and estimated exploitable potential in the district, the
expected level of credit requirement for achieving the potential and the credit gap has been estimated at Rs. 177.75
lakhs for the year 2005-2006. The resource gap is indicated below:
(Rs. Lakh)
Particulars
Exploitable potential
Amount
1077.15
Expected credit flow
900.00
Resource gap
177.15
3.16.6 Suggested Action point
Departments
The concerned departments may identity the educated unemployed youth and provide training for setting up
the service units.
In order to facilitate recycling of funds to extend higher level of fresh credit, blocked resources the form of
huge overdue loans have to be recovered. Government may extend necessary assistance to banks in
improving recovery particularly under Government sponsored schemes where the recovery rate is below
10%.
Banks
Banks may encourage the setting up of service units by providing credit support. Banks may aim at least
25% increase in their financial support to this sector.
Selection of beneficiaries should invariably be made jointly by bank and department staff to establish
bonafides of the borrowers.
RURAL INFRASTRUCTURE DEVELOPMENT FUND (RIDF)
RIDF was set up in the year 1995-96 with an initial amount of Rs.2000 crore (RIDF-I) made up of contributions
of deposits from schedule commercial banks operating in India to the extent of shortfall in their agricultural
lending subject to maximum of 1.5% of the net bank credit. Since then, the scheme has been continued as under
with the successive Union Budgets.
RIDF- IX TRANCHE 2003-2004
The Government of India have approved IX-Tranche of RIDF for 2003-2004 with a corpus of Rs.5500 crore.
Government of India have, however, desired to be taken up that loans from RIDF-IX should be sanctioned for
projects linked directly to reforms the State Government. Which benefit the farmers more directly and priority
to be given for projects relating to irrigation , soil and water conservation, etc.
The quantum of loan for thrust areas like irrigation, Soil and Water Conservation and system improvement in
Power Sector has been revised upwards to 95% of eligible cost. Connectivity, it has been reduced to 80% of the
eligible cost.
55
In Bongaigaon district, under RIDF-IX tranche 2003-2004, the State Government have submitted proposal for
construction of four bridges proposal and sanctioned three RCC bridge under RIDF- IX amounting to Rs
240.33 lakh.
56
CHAPTER- 4
Support Requirement for Development of Weaker Sections of the Society
Introduction
The economy of Bongaigaon district is primarily agrarian. Therefore, the economic development of the
district is dependent on agriculture and allied activities. The agro- climatic condition of the district is highly
conducive for development of agricultural and allied activities .Out of total 903 villages in the district 816
villages have been electrified as reported by the electricity Board. The Bongaigaon district is well connected by
road. Number of villages connected by all weather roads as per Executive Engineer, P.W.D Road Division ,
Bongaigaon is 831.60 kms. All villages having supply of potable water. There are 13 number of dispensaries,
15 nos P.H.C, 11 nos sub- centres , 4 nos C.H.C, 1105 nos of primary, preprimary and middle schools in the
district. The rural housing has been given importance in the district through various Government schemes and
Bank schemes.
Particulars
Male
Female
Total
a
b
Literacy rate of the district
Agriculturists
68.81
51.16
60.26
87,815
25,743
113,558
c
Service
21,137
3,665
9,864
d
Other Workers
101,083
18,437
119,520
e
Marginal Workers
25,117
35,899
61,016
f
Non workers
238,845
373,286
612,131
A.
People below Poverty line
4.1.1
Introduction
The total population of the district is 9,06,315 as per 2001 census of which 7,96,026 population are living in
the villages. The population survey of BPL families is under process as per DRDA report. The population below
poverty line as per DRDA statistics are as under:
Population below poverty line (DRDA statistics )
Number of rural Households
135,088
Number of BPL Families -Block-wise
86,677
The total beneficiaries covered uneder SC/ST so far is 5317 families, weaker section 7094 under various BPL
programmes in the district.
The present arrangements to bring economic development for remaining population by the State Government
is inadequate and steps should be taken to improve the economic development of the below poverty line.
4.1.2
Government sponsored programmes and other programmes for poverty alleviation:
(a) Swarnjayanthi Gram Swarozgar Yojna (SGSY)
Despite introduction of poverty alleviation programmes like IRDP, rural poverty in India continues to be a
significant and the number of rural poor has more or less remained static and is estimated to be about 244
million persons. `Swarnjayanthi Gram Swarozgar Yojna ` has been launched from April 1999 as a holistic
57
programme covering all aspects of self employment such as organization of the poor into self help groups,
training, credit, technology, infrastructure and marketing. With the launching of SGSY, the earlier IRDP,
TRYSEM, DWCRA, SITRA, GKY, and MWS programmes are no longer in operation. Under SGSY, 795
SHGs have been planned for the year 2003-2004 for the district of which 72 have been identified for key
economic activities , sanctioned and disbursed by banks amounting to Rs.100.49 lakhs and also released
revolving fund assistance 243 nos of SHGs. Accordingly ,Subsidies to the extent of Rs. 87.39 lakhs ,revolving
fund Rs. 23.24 lakhs , infrastructure Rs.54.42 lakhs,training Rs. 22.06 lakhs have been provided by DRDA
during the year 2003-2004. DRDA had received fund from Central and state Govt. amounting to Rs. 238.92
lakh and incurred expenditure amounting to Rs.187.11 lakhs durintg the year 2003-2004.
The salient features of SGSY are given below :
SGSY aims at establishing a large number of micro enterprises in the rural areas.
The assisted families (hence forth known as Swarojgaris) may be individuals or groups (Self Help
Groups). Emphasis will be on group approach. This would involve organizations of the poor into SHGs
and their capacity building. Efforts would be made to involve women members in each SHG.
Under SGSY, a SHG may consist of 10 to 20 persons. In the case of minor irrigation and in case of
disabled persons, the group may consist of minimum five members. All members of group should
belong to families below poverty line. The group shall not consist more than one member from the
same family. A person should not be a member of not more than one group. The group should meet
regularly and the members should take part in the decision making process.
The members should build up their corpus through regular savings .The group corpus fund should be
used to advance loans to the members.
Every SHG that is in existence at least for a period of 6 months will be credit rated by a committee
consisting of DRDA, WDC, Bankers and if the group secures 60% marks in the rating it becomes
eligible to receive Revolving fund assistance from the Bank which should be used for augmenting the
corpus of the group . The revolving fund assistance would enable members to access large quantum of
loan amount.
The revolving fund become part and parcel of the group corpus and the group should follow the same
norms for utilization as in the case of their own savings. The revolving funds impart credit discipline
and financial management skills to the members so that they become credit worthy and bankable in the
eyes of the bank.
The objectives of SGSY are to bring every assisted family above the poverty line in three years.
Therefore, the selection of activities should be such that it would afford the Swarozgari an opportunity
to expand his assets and skill base in three years and at least in the third year, the net income should be
more than Rs.2, 000/- per month.
In establishing the micro- enterprises, the emphasis under SGSY is on the cluster approach. For this, 45 key activities will be identified for each block based on the resources, occupational skills of the
people and availability of markets.
58
SGSY will adopt a project approach for each key activity. Projects will be prepared in respect of
identified key activities. The bank and financial institutions will be closely associated and involved in
preparing these project reports so as to avoid delay in sanctioning of loans and to ensure adequacy of
financing.
SGSY will seek to ensure that the infrastructure needs for the identified activities are met in full, so as to
enable the Swarojgaries to derive the maximum advantage from their investment. Planning for
infrastructure will be made in close concern with the banks.
The existing infrastructure for the cluster of activities will be reviewed and gaps will be identified.
The effort under SGSY is to cover 30% of the poor in each block in next five years. It will
particularly focus on the vulnerable groups among all the rural people. Accordingly, the SC/STs will
account for at least 50% of the Swarojgaries, women 40% and the disabled 3%.
SGSY is a credit –cum –subsidy programme where in credit will be the critical component and subsidy
will be a minor and enabling elements. Accordingly SGSY envisages a greater involvement of the
banks.
SGSY will seek to promote multiple credits rather than a one-time credit injection.
Subsidy under SGSY will be uniform at 30% of the project cost, subject to a maximum of Rs. 7500. In
respect of ST/SCs, these will be 50% and Rs.10, 000 respectively. For the Swarojgaries (SHG), the
subsidy would be at 50% of the cost of the scheme, subject to a ceiling of Rs. 1.25 lakhs. There will be
no monetary limit on subsidy on irrigation projects. Subsidy will be back ended.
SGSY will seek to lay emphasis on skill developments through well-designed training programmes.
The design, duration of raining and the training curriculum would be tailored to meet the needs of the
identified activities. DRDA will be allowed to set apart up to 10% of the SGSY allocation for training
needs of the Swarojgaris.
SGSY will ensure upgradation of the technology in the identified activity cluster. It will provide for
promotion of marketing of the goods produced by the SGSY Swarojgaries.
SGSY will provide for promotion of marketing of the goods produced by the SGSY Swarojgaries. This
would involve providing market intelligence, development of markets, consultancy services, as well as
institutional marketing of goods including exports.
(b) Prime Minister’s Rozgar Yojna (PMRY)
The scheme launched in the year 1993-1994 is being implemented through District Industries Centre. It
envisages financial assistance to educated unemployed youth in the age group of 18 to 35 in starting new
ventures. The age limit has been relaxed up to 45 years in respect of SC/ST/Ex- Servicemen/ Physically
handicapped persons. The borrowers under the scheme are eligible for sanction of composite loan up to Rs. 2.00
lakhs for any venture covering industry and services. For business sector, the loan amount is restricted to RS.
1.00 lakhs. If two or more eligible persons join together in partnership, the finance can be extended up to Rs.10
lakhs. Subsidy is limited to 15% of the project cost subject to a maximum of Rs. 7500 per person. Preferences
59
would be given to women & those belonging to weaker sections with the reservation of 22.5% for SC/ST and
27% for OBCs.
The achievement under PMRY during 2003-2004 was 30 out of target of 300.
The flow of credit is very poor due to lack of coordination between the banks and DICC.
DICC should involve with banks to recover the outstanding dues from PMRY beneficiaries.
(c)
SEMFEX II/ BLISS
This scheme also is in operation in the district and the Zillah Sainik Board/Rajya Sainik Boards has been closely
monitoring the implementation of the programme. The Banks provides financial assistance to Ex- Servicemen
for undertaking some income generating activity. Under the programme interest subsidy is made available to the
Ex- servicemen by the KVIC. Due to lack of initiative from KVIC the scheme is yet to pick up.
(d)
Credit cum subsidy for rural Housing.
Ministry of Rural Development, Govt. of India, has introduced the scheme. The scheme will be implemented
only by the designated bank branches identified by the State Govt. and the implementing agency will also be
identified by the state Govt. The target group will be rural house holds with annual income up to Rs.32, 000/-.
The subsidy ceiling is Rs. 10,000 per household. The target is of 257 houses with subsidy of Rs. 25.70 lakhs for
Bongaigaon district.
4.1.3 Past Trends:
The details of achievements vis-a-vis the targets under the different Government-sponsored and programmes
sponsored by other agencies during the past three years be indicated as below:
2001-2002
2002-2003
Programme
Target
Achiev.
Target
Achiev.
SGSY
300(ind)
131(ind)
300(ind)
131(ind)
53(G)
29(G)
63
31(G)
IAY newconst
1666 nos
2,286
1,996 nos
IAY up grad.
1011 nos
1,142
950 nos
-
Achiev.
110(ind)
72(G)
2,607nos
1,356 nos
EAS
-
10.9
-
-
NPBD
-
-
18
18
-
-
PMGY new
-
-
452
421
653
572
PMGY up grad
-
-
212
271
255
4.1.4
8.26
2003-2004
Target
300(Ind)
63(G)
2,854 nos
1,506 nos
-
Comment
On examination of the implementation of the programme, it reveals that credit disbursement is on declining
trend due to;
The recovery performance is unsatisfactory,
Maintenance of the assets are very poor
Income generation among the beneficiaries have not improved.
60
Lack of better cooperation for follow-up and monitoring by banks / Govt. Deptts. resulting in poor
recovery.
4.1.5
Projections for 2005-06
Taking into consideration the various relevant factors such as new policy initiatives taken by the Government,
availability of infrastructure/additions thereto planned, credit absorption capacity etc., the activity-wise
projections under the different programmes are given in Chapter - 3.
4.1.6
Block-wise Identification of Key Activities:
Based on the potentials for the various economic activities in the district, as detailed in Chapter-3, the ‘Key’
activities that could be taken up for financing by the banks in respective blocks of the district are indicated
below:
Block
Proposed key activities
1. Borobazar Block
2. Manikpur Block
Dairy/ Piggery/ Sericulture/ Fishery/ Power tiller,. Tractor/
Imprioved Horticulture.
-do-
3. Sidli- Chirang Block
-do-
4. Dantol Block
-do-
5. Boitamari Block
-do-
6. Tapattary Block
-do-
7. Srijangram Block
-do-
4.1.7
Present problems and suggested action points:
Women
Intorduction
Women play an important role in the overall development of the economy. Recognizing the fact that women
being equal partners in development, should have equal access and opportunities to share the benefits of any
planned development. Government of India has been paying special attention to gender related issues and as a
corollary to this; the govt. has taken many policy initiatives.
Women population
The total women population in the district is given below.
( Rs. lakh)
Particular
Male
Female
Total
Rural
4.08
3.87
7.96
Urban
0.58
0.53
1.11
Total
4.66
4.40
9.06
As seen from above table, out of the total population of 9.06 lakh, female population represents nearly 48.57%
of the total population .The coverage of women under government sponsored schemes in the past were 61%,
76%and 97% during the years 1998-99,1999-2000and 2000-2001 respectively.
Potential activities
61
Apart from undertaking farm based activities such as dairy, sheep rearing and goat rearing, women took up to
non – farm activities like tailoring, chamki embroidery, fur dolls, basket, paper mach dolls, papad making,
pickle making, detergent powder, soap making, beads mat weaving, bidi making, broom making, leather goods,
Earthen ware pottery, paper plates, cups, napkins, file covers, file boards, brick& tiles, chalk making, plastic
products, reeling, twisting and weaving activities etc.
Business activities
Among business activities women usually take up activities like vending of fruits and vegetables, provision
stores, tea/coffee shops, tailoring, typewriting and public call offices.
Self Help Groups
One programme which has substantially addressed the credit needs of women, is the Self Help Group (SHG) ,
introduced by NABARD in1992 which has well stabilized in the district .The launching of DPEP & TLC in all
the district of the state, exclusively for women empowerment and the capacity building on the lines of SHGs has
provided partnership support among agencies in women development. Formation of Prochesta Self Help Group
initiated by ZSS in the Bongaigaon district is as under:
1. Total Prochesta Group formed
:
1375
2. Total women member
: 23,375
3.Total deposit in banks
:
Rs. 72,46,250.00
4. Total group loan sanctioned
:
181 nos
5. Amount sanctioned
:
Rs.20,44,000.00
In order to give thrust and ensure more share and better participation of women the following measures may be
taken :
Identification, formation and financing of more SHGs with the active participation of NGOs, bank officials,
government officials, educational Institution and other like minded Institution.
Better implementation of government sponsored programmes like SGSY in the true spirit of holistic
development and qualitative support to the poor women, so as to encourage and assist women meaningfully
to take up income generating activities with the infrastructure and support assistance of the promotional
organizations.
Women oriented REDP with escort and support services be organized and supported by development
agencies, DIC, banks etc.
NGOs and other development agencies may formulate feasible proposals to support their women members
by utilizing promotional and credit assistance available from NABARD under ARWIND and MAHIMA
schemes.
4.1.8. Scheduled Castes/Scheduled Tribes
62
Intorduction:
Block- wise highest number of schedule caste and schedule Tribes population as per 1991 census in the district
are as under :
Name of the blocks
SC
ST
Borobazar
15,278
93,404
Manikpur
15,494
10,009
Srijangram
8,773
1,156
Tapattary
11,779
751
Boitamary
14,439
2,381
Dangtol
7,576
8,572
Sidli chirang
2,298
23,741
75,637
Total
140,014
There are programmes specially designed for lending schemes for O.B.C, APTDC& S.C. Ltd. Under the
Family Oriented Income Generating Schemes (F.O. I. G. S.) and are being implemented through bank
finance. Due to non- availability of subsidy and non sponsoring of beneficiaries by the implementing agency,
the targets could not be achieved since last few years in the district.
Suggested Action Points
The strategies for improving quality of lending under different Government Sponsored Programmes can be
taken as under:
Transparency in selection of beneficiaries and key activities.
Timely and adequate financing to actual and needy beneficiaries by banks.
State Government should make concrete plan for backward and forward linkages.
Proper co-ordination for monitoring and supervision by banks and Government agencies.
State Government should give necessary instructions to Sponsoring agencies for full cooperation with
the bankers.
Government subsidy should be available to bankers within the time frame .
Government sponsoring agency should take necessary steps for recovery of loans.
63
CHAPTER - 5
PERFORMANCE OF CREDIT AGENCIES
The major credit institutions operating in the district of Bongaigaon consists of 10 commercial banks with 26
branches, 1 RRB with 12 branches , one SCB with 2 branches , and ASCARD bank with one branch which is not
functioning in the district. There are 12 banks at the end of March 2004 with 40 branches, of which 21 are semi
urban and 19 are rural branches. The performance of the all financial agencies are not upto the mark during the last 4
years due to various unforeseen factors. Due to high overdues and poor recovery most of the banks are reluctant to
extend credit support. This has resulted in lower performance.
The institutional credit needs in the district are mainly met by the commercial banks and Regional rural bank
which have the advantage of the wide spread branch network, higher deposits, expert staff and higher risk taking
capacity in the banking business. However, the commercial banks and RRB in the district suffer from chronic
weakness, inadequate staff in the interior rural branches.
The district administration should take necessary steps and take stern action against willful defaulter in the
district. The expansion of credit for the SCB is greatly hampered by weak PACS and high overdues.
01.
Deposits
(Rs.lakh)
Sr.
No.
02.
1
CBs
26
2001-2002
25,588.48
Deposits
2002-2003
35,101.78
2
RRB
12
6,129.45
6,976.03
7,584
3
SCB
2
1,182.31
1,405.79
1,356.41
Total
40
32900.24
43483.60
43154.87
Agency
No. Of Branches
2003-2004
34,014.46
Loans outstanding
(Rs.lakh)
Sr.
No.
Agency
No. of Branches
Loans Outstanding
2002-2003
2003-2004
7824.73
1763.91
1
CBs
26
2001-2002
10388.85
2
RRB
12
1407.18
1667.82
1891.60
3
SCB
Total
2
40
147.91
11943.94
181.56
9674.11
330.53
12914.04
03. Credit Deposit Ratio
(Rs.lakh)
2003-2004
31.64
Sr. No.
1
AGENCY
CBs
2001-2002
40.60
2002-2003
22.29
2
RRB
22.96
23.92
23.99
3
SCB
12.51
12.92
21.23
Analysis
Deposits: The bank wise deposit position as on 31 March 2004 as indicated above during the last three years
showed a continuous increasing from Rs. 26,700.47 lakh to Rs. 43154.87 lakh during 2000-01 to 2003-04.
However, deposits declined from Rs 43483.60 lakh in 2002-03 to Rs 43154.87 lakh in the year 2003-04.
64
Loans Outstanding : The loans outstanding also show and increasing trend during 2000-01 to 2001-02 but
declined during 2002-2003 but again there has been an increase during 2003-2004. The increase has been in
smaller scale as compared to deposits . The percent growth in deposit and loans outstanding was negligible as
compared to deposits.
Credit Deposit Ratio : The over all CD ratio for the district is unsatisfactory at 22.24% for the year 2002-2003 and
29.92% in 2003-2004. Various factors including external factors beyond the control of the banks , high over dues etc.
are the main reasons for the poor CD ratio.
04. Performance to fulfill the national goals during 2003-04
Sr.
Loans
Priority
Direct loans to
Agency
No.
Outstandin
Sector
Agriculture
g
1
CBs
10763.91
3746.09
581.35
Loans to
weaker
sections
1463.50
Loans to
Women
DRI Loans
348.55
10.82
2
RRB
1819.60
1179.40
132.15
298.42
140.05
-
3
SCB
330.53
224.06
41.24
46.13
6.65
-
12,914.04
5,149.55
754.74
18,080.05
495.25
Total
10.82
Analysis : The overall performance to fulfill the national goals during 2003-2004 by banks was not satisfactory
. Banks have shown keen interest in financing in Agriculture and allied activities .The performance of CBs ,
RRB and SCB in lending to direct loans to Agriculture, weaker sections and women was inadequate during
2003-04.
5.
Sr.
No.
Annual action plans - performance during last 3 years
2001-2002
Agency
2002-2003
2003-2004
1
CBs
843.12
413.28
49.00
994.67
609.92
Targ
et
61.00 1682.56
2
RRB
199.66
163.84
82.00
321.50
272.31
85.00
379.33
3
SCB
19.84
20.58
104.00
24.04
52.63
136.00
33.59
Total
0.00
597.70
56.24
1340.21
914.86
Target
Achie.
%
Target
Achie.
%
Achie.
%
727.08 43.00
373.47 104.0
0
6.19 18.00
68.00 2095.48 1126.74 54.00
(Rs. lakh)
Analysis : The overall achievement showed a increasing from 2001-02 (56.24%) to 2002-03 (68.00%) and
followed by declining during 2003-04 (54%).Though banks overall performance achievement was less than target
set, quantum wise credit disbursement has improved.
06.
Recovery Position :
(Rs. lakh)
Sl.
Agency
No
Deman
d
2000-2001
Recover
y
% reco.
2001-2002
Recovery
Demand
1
CBs
1668.75
2250.84
13.53
2094.09
241.74
2
RRB
345.41
71.42
20.67
313.42
94.62
65
% reco.
Deman
d
2002-2003
Recovery
% reco.
11.54 1909.11
186.40
10.00
30.00
120.89
36.15
334.42
3
SCB
80.02
6.19
7.74
81.96
4.96
Total
2094.18
303.45
14.49
2489.47
341.32
6.05
164.25
17.79
10.83
14.00 2407.78
325.08
13.50
Analysis of recovery position:
The overall recovery position of all the banks operating in the district is not satisfactory. The percentage of
recovery during the year 2000-2001,2001-2002 and 2002-03 was 14.49% , 14% and 13.50% respectively.
There was a decline in achievement of recovery during 2001-2002 over that of 2000-2001 and 2002-2003. The
position of pending BAKIJAI cases as on 31.6.2003 is 5586 cases amounting to Rs. 1163.73 lakhs in the
district.
Status of Non Performing Assets;
7 CLASSIFICATION OF ASSETS (Loans and Advances)
Doubtful Assets (Loans and Advances)
1999-2000
Standard
2525.80
2000-2001
2,970.95
2001-2002
4197.80
Sub-Standard
472.50
462.95
380.50
Doubtful
365.95
668.64
605.50
Loss
152.53
100.35
105.12
The recovery position of the banks was very bad in all respects and the bankers and the Government line
departments have not taken initiative for recovery drive in the district. As a result the recovery percentage has
not improved and the percentage of recovery was 13.50% only in the district. The percentage of N.P.A. as on
31.3.2004 is in commercial banks 17.88%, cooperative banks 16.34% RRBs 15.66% resoectively. The impact
of refinance absorbing capacity of each type of RFI in the district was not satisfactory.
08
DAP/MOU - RRBs
Financial details of PGB as on 31.3.2004
(Rs. lakh)
Sr.
No.
RRB (PGB)
Target under DAP
Ach.
Financial Indicators
3612.81
49.25
3128.39
99.25
%
Ach
86.58
201.52
Deposits
92000.00
86912.89
94.47
4
Borrowings
11306.00
7539.44
66.68
5
Loans Issued
16000.00
12243.77
76.52
6
Loans O/S
41300.00
39579.99
95.83
7
Investment
48178.00
50840.59
105.52
8
Recovery
%
65.00
63.00
-
9
Average yield on investment
10.00
9.27
-
10
Average cost of funds
5.30
5.30
-
1
2
Share capital
Reserve Fund
3
11
Financial margin
4.70
3.39
-
12
Transaction cost
2478.00
2277.47
-
13
% of T.C. TO W.F
2.32
2.31
-
66
14
Net margin
2.38
1.06
-
15
Profit / Loss
(+) 1112.00
(+) 958.82
-
16
17
Per Emp. Business
139.00
133.43
-
Per Branch Business
776.00
771.30
-
RRB : Pragjyotish Gaonlia Bank is the only RRB functioning in the district with its 12 branches The RRB has
169 branches with its Head Office at Nalbari covering 9 districts of Assam. The overall health of the RRB is
weak and it has taken up for restructuring .The bank has entered into Memorandum of Understanding with the
Sponsor Bank on an annual basis as per NABARD guidelines and the performance in details as mentioned
above may be seen.
STATUS ON SAMIS
The LBR syestem has not been stabilized in the district of Bongaigaon. During 2003-2004 except the RRB (
PGB) ,most of the commercial bank branches have not submited the LBR-2 return (35%) upto June’04. As
regards the LBR- 3/U-3 the percentage of submission of return upto June 2004 was 90% .Due to poor
response from the banks the LBR- 2 & LBR- 3 have not been complied by LDM. All the bank in the district
have submitted the LBR-1 for the year 2003-2004. Thus there is a need for improvement in the submission of
LBR returns by the banks particularly by commercial banks in the district so as to compile accurate data on key
parameters at the district level for fruitful and meaninful analysis of the ground level credit flow.
67
CHAPTER- 6
ROLE OF INFORMAL CREDIT DELIVERY SYSTEM
In the state of Assam despite large rural banking network, a vast majority of rural poor have no access to formal
banking system. The credit flow to the socially and economically backward classes and tribal population has
been far from satisfactory.
i) The large numberrof borrowers having small credit needs.
ii) Frequent need of credit
iii) Limitation imposed by legel frame work.
iv) Banks perception of riskes and credit worthiness of the borrowers.
Thus 2-3% of the BPL families belonged to SC/ST in the district. In view of the high level of poverty , the
district has an excellent scope for bringing members of such families under the umbrella of bank credit through
formation of SHGs.
6.2 Micro Finance Profile in the district is depicted in the following table:
Sr.
Particulars
No.
1
Total number of blocks in the district
7
2
No. of blocks where SHGs exist
7
3
Total no. of blocks where SHGs are credit linked
5
4
No. of NGOs in the district
5
No. of NGOs participating in linkage programme
6
No. of additional NGOs to be roped in during the year
7
185
4
CBs
Coop.
-
RRBs
Total No. Bank branches in the district
40
i)Of which no. of branches participating in linkage programme
6
ii)No. of additional branches proposed to be roped in
2
iii) No. of banks acting as SHPIs
-NIL-
iv) No. of Govt./other agencies participating
DRDA, DVO,
FDO and
Sericulture
V) No. of Govt./other agencies likely to participate
8
6.3
NGO-wise status of
i)SHGs promoted
ii)saving linked
iii)credit linked,
Iv) refinance linked
i) ANT- 15,
NKY- 25 ,
Procesta-1375
ii) 1642
iii) 80
iv) 80
Projections for the year 2005-2006
No.of SHGs to be promoted
No.of SHGs to be linked
500
6.4
2
500
SHG Linkage Programme - Strategy
68
No. of SHGs to
credit linked
300
TheTraining requirements of bank officers/NGO Staff/Govt. and other functionaries approximately -100.
The SHG bank linkage programme in the district is a good sign for future and assured by bankers to give
priority on SHG linkages .RRB (PGB) is the main bank in the formation SHGs in the district and other
commercial bank i.e.SBI has given target to its branches for direct bank linkage under NABARD Schemes and
cooperative bank are not showing any interest in promotion as well as credit linkage of SHGs and thus total
1642 SHGs have already been formed in the district.
Formation of Prochesta Self Help Group initiated by ZSS is 1375 , total saving linkage Rs.72,46,250/lakh and bank credit linkages of 181 Procesta group amounting to Rs. 20,44,000/- lakhs has been effected so
far in the district. However ,more credit linkages is expected during the year 2004-2005 and the target is likely
to be achieved.
6.5
SHGs in Government programme:
The DRDA in the district had target 63 SHGs and achieved 72 SHGs for economic activities during the year
2003-2004 under SGSY Scheme. 243 numbers received revolving fund assistance during the year 2003-2004.
With the launching of SIGs the importance of SG formation become prominent in the district. There is a scope for
promoting SHGs through line department. There was a massive SHGs capacity building and skill upgradation
training programmes held in the 7 Blocks under the SGSY scheme in the district.
Bank/branches as SHPIs in district: - All the bank branches has shown keen interest in direct credit
linkage of SHGs under NABARD scheme. Only a few Bank branches in the district have not extended
cooperation with line department in forming SHGs. RRB(PGB) is the main bank involved in the formation of
SHGs in the district besides NGOs.
Rating Norms - The rating norms of SHGs is followed by DRDA as per the guidelines of SGSY
schemes. The bankers and other voluntary organisation are following the NABARD guidelines for rating while
financing the SHG in direct linkages.
6.6
Non-government Organisations/Voluntary Agencies(NGOs/VAs)
The Bongaigaon district has a quite a few NGOs / VA like PROCESTA, Nehru Yuva Kendra, DPEP, Natures
foster, Appropriate Technology Mission, Sidli Biswajyoti Club,and Abhayapuri Sanskriti Parishad etc. They
play an important catalytic role in implementation of socio-economiic development programmes.
6.7 Status of Vikas Volunteer Vahini Programme
6.7.1. Status of Programme implementation in the district.
Vikas Voluntary Vahini as on 31 March 2002
Bank Clubs
NGO/VVV Clubs
Satellite Clubs
Total No.of Clubs
Total NO.of SHGs
1
NIL
NIL
1
500
6.7.2.
The existing VVV Clubs in the district are mostly defunct. There is a need to revive the VVV Club.
6.7.3. However, projections for the year 2005-2006 can be made to open at least 4 VVV club in view of
potentiality available in the district and roped other agencies also for implementation of the VVV programme.
69
CHAPTER - VII
POLICY INITIATIVES
7.1
National Economy
The performance of national economy improved significantly, posting an estimated growth of 8.2% in GDP
during 2003-04 as against 4% during previous year. The GDP from agriculture and allied sectors grew at the
rate of 9.1% as against negative growth of 5.2% last year. The industry and services sectors also maintained the
momentum with GDP growth from these sectors accelerating from 6.4 and 7.1%, respectively during 2002-03
to 6.5 and 8.0% during 2003-04.
The total quantum of agriculture credit increased by 12% and reached the level of Rs.69,560 crore during 200203. It is estimated that the ground level credit flow to agriculture and allied sectors would have reached Rs.
80,000 crore during 2003-04, which is 15% more than the previous year. Ensuring a fair deal to agriculture, the
ground level credit is proposed to be doubled within a span of three years, posting annual growth of 30 percent
each year. Starting with year 2003-04, the credit flow to the agriculture sector which was Rs.80,000 crore during
2003-04 is to be increased by 30% to Rs. 1,05,000 crore. The total credit flow to these sectors during the Tenth
plan period is projected at Rs. 7,36,570 cr.
7.2
Government Initiatives
I.
Common Minimum Programme
The Govt. of India has come out with a Common Minimum Programme, the implications of the same for
agriculture and rural development are given below:
to increase public investment in agriculture
to improve the irrigation and water resources
infrastructure development
dryland agriculture development
development of rural co-operative system
to double rural credit delivery system in next three years
to expand coverage of small and marginal farmers by institutional credit
to ensure cost effective crop and livestock insurance
to improve rural employment generation
adequate protection to farmers on agricultural prices and agricultural marketing
solving problems faced by the unorganised and informal sector
to ensure flow of funds to women and children in the rural areas
special assistance to upgrade and expand infrastructure in the North-Eastern States
steps to be taken for helping SC/ST by conferring ownership rights in respect of forest products, land,
provision of irrigation, etc.
70
II.
Doubling of Agriculture Credit in the Next Three Years
The credit flow to the agriculture sector which was Rs. 80,000 crore during 2003-04 is to be increased by
30% to Rs. 1,05,000 crore.
Focussed attention needs to be given to KCC, RIDF, microFinance, etc.
Need for enhancing credit for SF/MF and tenant farmers
Quality of lending needs to be increased through proper appraisal, monitoring and ensuring proper end-use
of credit
CBs, Co-ops and RRBs have to ensure restructuring of old loans in accordance with the guidelines laid
down by RBI and NABARD.
NABARD ,Banks and State Govts have to ensure fixation of realistic scale of finance and unit cost
NABARD will implement a special package for promotion of technological upgradation in fields of agroprocessing and agri biotech.
7.3
Tenth Five Year Plan
The broad objectives and targets of the Tenth Plan are for achieving an average rate of growth of GDP at 8 per
cent along with specific focus on a few key measures of human development which meets the objectives of
equity and sustainability. The Tenth Plan document also outlines the measures that will become necessary for
achieving the vision of doubling per capita income in the country by the end of the Eleventh Plan Period.
7.4
Targets for the Tenth Plan and Beyond
Providing gainful high-quality employment to the additional labour force over the Tenth Plan period
Reduction of gender gaps in literacy and wage rates by at least 50% by 2007
Reduction in the decadal rate of population growth between 2001 and 2011 to 16.2%
Increase the Literacy rate to 75% within the Plan period
Reduction of infant mortality rate (IMR) to 45 per 1000 live births by 2007 and to 28 by 2012
Increase in forest and tree cover to 25% by 2007 and 33% by 2012
All villages to have sustained access to potable drinking water within the Plan period
Cleaning of major polluted rivers by 2007 and other notified stretches by 2012
Reduction of poverty ratio by 5 percentage points by 2007 and by 15 percentage points by 2012
Reduction in Maternal Mortality Ratio (MMR) to 2 per 1000 lives by 2007 and to 1 per 1000 by 2012.
71
7.5
Highlights of Union Budget 2004-2005
Doubling of agricultural credit in three years, accelerating completion of irrigation projects and investing in
rural infrastructure.
Implementation of comprehensive policy on agriculture credit by Public Sector and Private Sector Banks,
Cooperative Banks and RRBs. Sponsor banks to be made fully responsible for the performance of RRBs.
Task Force to examine reforms in the Cooperative Banking system including appropriate regulatory
regime.
Revival of RIDF. A corpus of Rs.8000 crore for 2004-05 provided for RIDF.
Launching of the National Water Resources Development Project for restoration of more than a million
natural and man-made water bodies over a period of 7-10 years. Pilot projects for the same in 5 identified
districts in 2004-05.
Food grain production to reach 300 MT by 2011-12.
Encouraging crop diversification into areas such as horticulture, floriculture and oilseeds.
Horticultural production to be doubled by 2011-12. National Horticulture Mission to be launched. States
will be encouraged to establish a State Level Cooperative Society for promoting horticulture on the lines of
Anand model.
States to enact model law circulated by GoI on marketing of agriculture produce. An investment of Rs.170
crore in Small Farmers Agri-Business Consortium (SFAC) for aggressively promoting agri-business.
Pilot scheme for insuring farm income and a weather insurance scheme to be introduced in addition to
National Agricultural Insurance Scheme (NAIS).
In the area of rural housing, RBI has agreed to revise norms for repayment of rural housing loans so that the
instalments coincide with crop cycles. States also encouraged to emulate law made by West Bengal
Government to simplify creation of security. A target of 2,50,000 rural housing units has been set.
85 items removed from the reserved list for small scale industries. To facilitate technology upgradation, the
ceiling for loans under Capital Subsidy Scheme raised from Rs.40 lakh to Rs.1 crore and rate of subsidy
raised from 12% to 15%.
Creation of Rs.100 crore fund for regeneration of traditional industries such as cottage industries, coil,
handloom, handicrafts, sericulture, leather, pottery and others.
Tax exemption for new agro-processing units set up to process, preserve and package fruits and vegetables
for a period of five years. 25% rebate during the next five years.
Elimination of excise duty on tractor, dairy machinery and hand tools and extension of customs duty
concessions to several items of plantation machinery in the tea and coffee plantation sector.
Reduction of excise duty from 16% to 8% on preparations of meat, poultry and fish.
Increased allocation of Rs.1000 crore in Agriculture R&D.
72
Rationalisation of excise duty structure for handloom and powerloom sectors.
Target for linking 5.85 lakh SHGs with banks by 31 March 2007. Group Health Insurance Scheme for
members of SHGs and other groups.
100 days of assured employment to every poor household to be ensured.
Flood control programme in Ganga basin.
Thrust to Provision of Urban Amenities in Rural Areas Scheme (PURA)
Debt Swap scheme for state governments to retire high cost loans to NABARD and other agencies.
National water harvesting scheme for SC/ST farmerse covering one lakh irrigation units. NABARD to lend
money on easy terms with no margin money being charged to the borrowers. Rs.100 crore estimated for the
scheme.
7.6
Economy of Assam State
The growth of the State's Economy was encouraging during 2003-04 and is likely to register an upward
trend of growth in the coming years. The advance estimates of State Domestic Product for the year 20032004 indicate that the growth rates of Net State Domestic Product (NSDP) is estimated at 6.2% at constant
(1993-94) prices and 10.5 % at current prices as compared to the growth rates of 3.9% and 7.8%
respectively for the year 2002-2003. As per the said estimates, the Per Capita Income is likely to attain a
level of Rs.6403 at constant (1993-94) prices and Rs.12593 at current prices during 2003-04. The share
contribution of Agriculture sector of Assam in 2002-2003 was 29.60% at constant (1993-1994) prices and
30.34% at current prices as against 31.43% and 31.69% respectively in 2001-2002.
Due to adverse affect of natural calamities like floods, etc., the performance of the Agriculture Sector
during 2004-2005 may not be upto expectations. According to the government data, during 2002-03, the
total production of Foodgrains Crops covered by the crop forecast in the State has been estimated at 38.94
lakh tonnes as against 40.23 lakh tonnes in 2001-2002 . The production of Rice which is the most
important Cereals Crop grown in the State has recorded a decrease of 3.01% during the year. The
production of Wheat also decreased to 0.78 lakh tonnes during 2002-2003 from 0.85 lakh tonnes in the
previous year. The production of Sugarcane (in terms of cane) recorded a decrease to 9.16 lakh tonnes
during 2002-2003 from 10.11 lakh tonnes during 2001-2002. So far as the production of Jute is concerned,
the same recorded increase to 6.91 lakh bales in 2002-2003 from 6.75 lakh bales in the year before. In view
of the mixed performance of the agriculture sector the General Index of Agriculture Production (base
triennium ending 1981-82=100) for the State has recorded only a nominal increase to the point of 165 in
2002-2003 (provisional) from the point of 164 in 2001-2002.
In the Manufacturing and Processing sector of the State, a mixed performance in production could be
observed during the year 2002-2003. Provisional production data available for the year shows a positive
growth in the production of industrial items like Refinery Products, Cement, Fertilizer, etc. over the
production level of the previous year. On the other hand a decrease in production has been noticed in
respect of items like Tea processing, Grain Mill Products, Paper, Jute, Textile, etc., during the said year.
The overall industrial scenario of the state is expected to improve considerably in near future due to efforts
73
made by the State Government through announcement of new Industrial Policy mostly aimed at attracting
private investors from outside.
As regards the Employment Sector, the number of persons employed in organised economic activity
(comprising both Public and Private Sectors) was found to have decreased to 10.84 lakh at the end of
December, 2002 (Provisional) from 11.31 lakh at the end of December, 2001 recording a decrease of 4.2%
over the period. The employment of women in organised sector of the State was 321.9 thousand at the end
of December, 2002 which was 29.7% of the total employment. As regards the scenario of manpower
supply and demand, the data available from the Employment Exchanges of Assam revealed that the total
job seekers in the Live Register increased to 15.72 lakh at the end of December, 2002 from 15.25 lakh at
the end of December 2001.
In order to increase employment avenues through generation of gainful employment opportunities, the
Government has been implementing various schemes like Employment Assurence Scheme (EAS),
Swarnajayanti Gram Swarajgar Yojana (SGSY) and Special Swarnajayanti Gram Swarojgar Yojana
(Special SGSY), etc. The concept of Self Help Group (SHG) has been introduced to bring a revolution in
the field of self employment. Under SGSY Scheme, a total of 58,458 Nos. of SHGs have been formed
covering about 7,02,000 poor families till the end of the year 2002-2003. Further, 34,660 women SHGs are
also functioning in the State under SGSY as on March, 2003.
7.7
North Eastern Council
The NEC was constituted in 1971 by an Act of Parliament. The constitution of the Council marked the
beginning of a new chapter of concerted and planned endeavour for the rapid development of the region.
NEC has been instrumental in setting in motion a new economic endeavour aimed at removing the basic
handicaps that stood on the way of development of the region. Through various development initiatives, it
attempts to improve the economic well being of the NER in general and Assam in particular. But, there is
considerable scope for using the NEC platform for leveraging various support systems provided by the GoI
and the State Government.
7.8
Monetary and Credit policy : Rural Dimension
Reserve Bank's monetary and credit policy for 2003-04 proposed a host of measures to strengthen credit delivery in
the rural sector. Some of the policy announcements made were :
priority sector lending norms to cover drip/ sprinkler irrigation dealers
interest not to be charged on deferred amount of interest in drought -hit areas
raising the ceiling on the co-operative banks unsecured lendings, introduction of concurrent audit by cooperative banks with immediate effect and co-operative not to give loans to their directors and affiliates.
The credit policy envisaged the provisions of adequate incentives by banks to their branches for financing of
SHGs and simplifying procedures to suit local conditions. As announced in the credit policy, the RBI
constituted an Advisory on 'Flow of Credit to Agriculture and related Activities from the Banking System'
under the chairmanship of Prof. V.S. Vyas to suggest short- term and medium -term measures to enhance
credit flow to the agriculture sector.
74
7.9
Policy initiatives by NABARD
Keeping in view the importance attached to agriculture and SSIs by GoI ,the reduction in bank rate and the
general reduction in interest rates , NABARD has revised its rate of interest on refinance four times during the
year 2003-04 in all categories of refinance in all slabs to ensure augmented flow of short-term, medium-term
and long-term institutional credit. The present interest rate structure on refinance for farm and non -farm sector
for all agencies effective from 13 February 2004 are as under :
I.
Investment credit
(% per annum)
NER including Sikkim A&N islands
Other Regions
For all
Purposes
MI, DLF, LD, WLD,
SGSY, SC/ST Action
Plan, AEZ, A&M, RH,
FM
NFS
Agri clinics, cold storage,
rural godowns, other
activities
up to 50,000
5.50
5.50
5.50
5.50
from Rs. 50000- Rs 2 lakh
5.50
6.25
6.25
6.25
above Rs 2 lakh
5.50
6.25
6.50
6.75
loan size
II.
Short term and Medium term refinance
The rates of interest on ST/MT refinance have been reduced by NABARD mainly to enable the cooperative
banks to augment their disbursement and to facilitate reduction in their ground level interest rates. The revised
interest rates effective from 13 February 2004 on outstanding balances, if any, under the ST credit limits from
NABARD as well as on the drawals availed of by the banks are given in the following table :
a)
Rates of interest on Short term refinance for SAO
Sr.
No.
Percentage of SCB avg borrowing from NABARD under
SAO to DCCB avg o/s against PACS
Rate of Interest ( % p.a. )
1
less than 35
5.25
2
35 to 40
5.50
3
40 and above
5.75
ROI for banks in North Eastern Region is at 5.25% p.a. and for banks under motivational refinance norms,
ROI will be 5.50% p.a.
b)
Rates of interest on Short term refinance for purposes other than SAO, Medium term (non-Schematic)
and for short term agri/ allied and marketing activities (Co op Banks) have also been reduced by 0.25% w.e.f.
13 February 2004.
7.8
Other Initiatives by NABARD
Apart from concentrating on core business, NABARD continued to focus on emerging and innovative areas for
improving the outreach of the rural credit delivery system .
microFinance
75
The SHG-bank linkage programme continued to be a thrust area of NABARD during 2003-04. During the year
3,61,731 SHGs were credit linked to banks showing growth of 41% over the previous year. Nearly 90% of the
SHGs formed under the programme are women SHGs. The year also witnessed the all-round growth of the
programme in many states. NABARD continued its efforts in capacity building with added emphasis and also
extended promotional grant support, etc., to its partner agencies to help them function as SHPIs. Under
NABARD's capacity building programmes for its partner institutions, 2.44 lakh participants were trained during
the year.
Continuing with its efforts to innovate and sustain this programme, the Bank, during the year introduced six
pilot projects, viz., 'Barefoot Book Keepers' to establish a sound Management Information System (MIS)
between SHGs and banks in association with rural volunteer, linking of SHGs to rural post offices in Tamil
Nadu, training of skilled rural youths as Computer Munshis, setting-up of three grain banks in Kalahandi district
of Orissa, use of information technology (IT) in the form of processor/memory cards (Smart Cards) for
monitoring and servicing a large number of SHG accounts and financing mid-segment clients through Joint
Liability Groups.
Consultancy Services
NABARD Consultancy Services (P) Ltd. (Nabcons) was set up with an authorised share capital of Rs.25 crore,
of which Rs.5 crore has been fully subscribed by NABARD. So far, Nabcons has contracted 67 assignments
involving consultancy fees of Rs.1026.78 lakh, of which 32 assignments were completed during 2003-04.
Acknowledging the quality of the services rendered by the Company and NABARD's brand equity, several
established firms in the global consultancy and banking business like RABO Bank and Ernst and Young, India,
have shown interest in collaboration with Nabcons. A wide range of clients, viz., various departments of the
GoI, State Govts, Financial Institutions, Corporates, NGOs, international bodies like UNIDO, FAO and
individuals have sought the services of Nabcons. Among banks, those requiring technical expertise in appraisal
of agricultural and rural development projects have approached Nabcons for professional guidance. The GoI
and various State Govts have sought Nabcons' expertise mainly in the preparation of new/innovative projects
and in the evaluation of on-going schemes. The studies conducted by Nabcons are expected to facilitate
formulation of new policies and the refinement of existing ones as also in identifying new areas for investment.
Agri-clinics and Agri-business Centres
The scheme for setting-up of agri-clinics and agri-business centres by agriculture/ veterinary graduates
introduced during 2001-02 by the GoI, aims at supplementing the existing extension network to accelerate the
process of technology transfer, supplementing the efforts of state agencies in providing inputs and other services
to the farmers and offering self-employment opportunities to agriculture graduates. The Reserve Bank of India
has classified loans to agri-clinics and agri-business centres as 'Direct Agriculture Advances' under the priority
sector. So far, 4168 graduates have been trained in 12 states, of which 802 'agripreneurs' have started agriclinics and agri-business centres in different parts of the country, the maximum concentration being in Andra
Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan and Uttar Pradesh.
Agri-Export Zones
Considering the importance of agri-exports, 48 Agri-Export Zones (AEZs) covering 193 districts were notified
by APEDA and 20 crops were identified for promotion in these zones. The District Development Managers
76
(DDMs) of NABARD in 119 districts continued coordinating with the nodal officers of APEDA for promotion
of AEZs. NABARD also extended its refinance facility to all its client institutions and for all activities under
notified AEZs. In order to augment the outreach of bank finance, NABARD developed a special refinance
package for all the contract farming arrangements (within and outside AEZs), thus enabling increased
production of commercial corps and creating marketing avenues for farmers. The package also includes
contractual arrangements for organic farming in medicinal and aromatic crops.
Farmers' Service Centres
NABARD has introduced a scheme for financing Farmers Service Centres (FSCs), also called Mahindra Krishi
Vihars (MKV), set up in collaboration with Mahindra Shubhlabh Services Ltd. (MSSL), a wholly owned
subsidiary of Mahindra and Mahindra Ltd. The FSCs provide farmers with an integrated package of service that
includes extension services using information technology and arrangement for marketing of output. So far,
MSSL, has opened 44 FSCs in nine selected states, three of which were opened during the current year. This
resulted in tie-up arrangements with banks for financing farmers to the tune of Rs.10 crore.
Environment Protection - Initiatives of NABARD
Indiscriminate exploitation of nature has led to degradation of the environment and depletion of resources.
Today sustainability is not an option but imperative. Environment degradation is caused by unorganised
industrial growth and compounded by overuse of chemical fertilizers, pesticides, etc. The Tenth plan approach
is for environment protection through awareness creation and education of masses with involvement of NGOs,
youth, etc. Towards this end NABARD has identified thrust areas for environment protection measures to be
implemented with the cooperation of Government Agencies, Banks, etc. as follows: (1) Natural Resource
Management (2) Waste Management (3) Conservation of natural resources (4) Prevention of pollution (5)
Energy Conservation (6) Biological diversification (7) Horticulture and Forestry (8) Coastal Zone Management.
NABARD’s support under Environment Protection initiatives is by way of grant to eligible NGO / Agencies for
conducting promotional programmes and through refinance of specific viable and bankable schemes. Under
promotional support, awareness and training programmes for farmers / Panchayati Raj Institutions / SHGs /
Farmers, Clubs, etc., are available. Besides, promotion of commercial ventures in waste recycling / waste
management, indigenous technical knowledge (ITK), grassroots initiatives and action research in various
environmental protection measures are also eligible for grant assistance. In addition a separate scheme called
Environment Assistance Scheme (EAS) focusing on promotion of environmental and agricultural development
through demonstrative effect and replicable models is available to NGOs / Krishi Vigyan Kendras (KVK),
Krishi Gyan Kendras (KGK), etc.
Further NABARD’s refinance is available to banks for financing viable and bankable projects such as Pollution
control devices / equipment, installation of common effluent treatment plants, waste recycling techniques such
as vermi-compost, conversion of sericulture waste into feed, rice husk particle boards, coconut shell processing,
bio-pesticides, bio-fertilisers, energy conservation technologies and use of non conventional energy resources
like wind, solar energy, etc.
NCDEX
77
National Commodity and Derivatives Exchange Limited (NCDEX) jointly floated by NABARD, LIC, NSE,
ICICI Bank, PNB and CRISIL, with the aim of including a large number of commodities under the Open
General License (OGL) category, commenced trading on 15 December 2003. A non-trading player, NCDEX
provides a platform for price discovery, information regarding price trends, and hedging risk for various
agricultural products thus enabling farmers to plan their production and appropriately time the marketing of their
produce.
NABARD's participation would facilitate the integration of agriculture credit, securitisation of
agricultural produce and futures markets and capacity building of state/district level marketing cooperatives and
of he farmers/producers' orgnisations.
Agriculture Insurance Company of India Limited
The Agriculture Insurance Company of India Ltd. (AICI) jointly by GIC, NABARD and other subsidiaries of
GIC with the main objective of acting as the implementing agency for the Government's National Agriculture
Insurance Scheme has introduced a Pilot Scheme on Seed Crop Insurance. The liability of the Company under
NAIS in respect of claims from all the participating states is to the extent of 100% of premium for food crops
and oilseed crops and 150% of premium for annual commercial/horticultural crops. The State and Central
Governments share the balance claims in equal proportion.
Co-financing initiatives
In all, 2 projects have been sanctioned under co-financing involving a total outlay of Rs.118.90 crore and term
loans of Rs.75.58 crore with NABARD's share being Rs.35.97 crore.
NABARD has sanctioned for the first time, two forestry projects (Eucalyptus and Bamboo plantations) under
co-financing to Andhra Pradesh Forest Development Corporation in collaboration with Bank of Maharashtra.
7.9
Special Package for NER
NABARD continued its policy of facilitating larger flow of credit to the NER and Sikkim by granting
relaxations to co-operative banks and RRBs operating in these areas . The salient features of this policy are :
I.
Production Credit
Compliance with the prescribed eligibility norms relating to overdues/NPAs for sanction of ST credit limits for
SAO to co-operative fbanks and RRBs was not insisted upon.
Concessional rate of interest (at the minimum level of 5.25% p.a.) to SCBs on ST(SAO) credit limits as
against interest rates ranging between 5.25 and 5.75 percent p.a. in other states (excluding Sikkim).
Concessional rate of interest (5.75% p.e.) for ST weavers' finance to co-operativea banks as against interest
rate of 6% p.a. charged to the banks in other states (excluding Himachal Pradesh Jammu & Kashmir and
Sikkim).
II.
Investment Credit
For drawal of unrestricted refinance, the percentage of gross NPAs to total loans outstanding of cooperative banks and RRBs by March 2002 was fixed at 25 for NER as against 15 for the rest of the country.
Banks with NPAs exceeding 25% were allowed to draw refinance to the extent of amount recovered in the
78
previous year ending 30 June or lendings during the previous year ending 31 March or the average amount
recovered /lent in the preceding three years, whichever was higher.
For thrust areas, 100% refinance was provided to all financial institutions in the north east.
Although the rate of interest on refinance ranged between 5.50 to 6.75% for the rest of the country, it was
fixed at the lowest slab of 5.50% for all agencies in the NER.
III.
Training Arrangements
NABARD provided grants to Indian Institute of Bank Management, Guwahati to cater to the training needs of
commercial banks , RRBs and Co-operative banks and to Manpower Development and Management Institute
(MDMI), Shillong for meeting the training needs of personnel of Co-operatives in the NER. During 2003-04
grant assistance of Rs. 16.01 lakh and Rs.7.20 lakh was provided to IIBM and MDMI, respectively .
IV.
In order to facilitate and accelerate the flow of credit to the NER, a pilot scheme on routing credit to
Village Development Boards/Village Development Councils was introduced in Nagaland during 2003-04 and an
MoU was signed among NABARD, Government of Nagaland and SBI. Twenty five VDBs were identified in
Nagaland for implementation of the scheme with a corpus of Rs.25 lakh.
V.
Adoption of PURA
Providing Urban Amenities in Rural Areas (PURA) is a scheme to enhance social, economic and electronic
connectivities of the rural areas starting with the construction of ring roads to link a loop of villages.
Recognising the potential of PURA , the GoA has initiated steps to pilot a PURA in Rangia town, Kamrup
district. NABARD is associated with AMTRON, an agency engaged in developing the project under the
directions of the Department of Panchayats and Rural Development. NABARD has joined hands in facilitating
smooth implementation of PURA in Assam.
79
CHAPTER - 8
RESPONSE FROM FARMERS
8.1
Intorduction
The economy of Bongaigaon District is basically agrarian in nature and the farmers of the district dependent on
agriculture. With the ever growing population and continuing pressure on agricultural land, it has now become
necessary to find practical solution for the poor farmers in the district. The information collected from the 50
farmers, revealed that most of the farmers are having an average of 5 bigha to 30 bigha of cultivable land
.Farmers are mostly small and marginal farmers and agriculture offer a vast potential for generating large
quantities paddy. There is scope to develop allied activities also. The farmers are willing to cultivate Bamboo,
Safed Musli ,medicinal plants and species if proper guidance is provided to them.
8.2
Analysis of the information/data received from the farmers
The feedback received from the farmers are as follows:
As discussed with the farmers regarding availability of the infrastructure, marketing support, credit and
extention services etc., they stated that they are completely dependent on natural water resources and are not
getting any support from the Government. Lack of adequate irrigation facilities, inadequate extention support,
insurance coverage against natural calamities, control of flood, erosion of land by river, cold storage facilities
,marketing arrangement and provision of timely credit support to farmers by credit institutions in the district are
same of issues to battened to by concerned government departments and banks. The Farmers also stated that
they are not aware of Government Sponsor Programmes, issue of KCC, SCC, various benefit from the
Agriculture Department, Animal Husbandry,District Fishery Department, FFDA, Sericulture, Handloom and
Textiles, Irrigation Department etc. After harvesting, the produce is sold at the local markets and as result poor
farmers are not getting expected actual price.
The farmers expect that the government should initiate some measures like relaxation of documentation on the issue
of the KCC, arrange for distribution of fertilizers, insecticide, seeds, provide marketing facilities, establishment of
rural haats, fix procurement price on produces locally, procure the produce through FCI, provide Irrigation facilities
and haste free.
Recommendation / suggestion
The Agriculture Department has to take initiative for implementation of innovative schemes, educate the
farmers by offering free training, supply of good variety seeds for Bamboo cultivation , Safed Musli, Vanila,
Ginger, Banana, Patchouli, Flowers, Spices etc.
For successful implementation of schemes, Government line departments should take initiative to create
infrastructural facilities like market connectivity to enable farmers to get best prices, construction of rural
godowns, marketing infrastructure
The financial institutions should take proper initiative towards financing of crop loans, issue of KCC, formation
of SHGs and financing other allied economic activities to farmers.
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