EXECUTIVE SUMMARY Introduction - NABARD SUMMARY Introduction ... Financial Literacy Centres for dissemination of information and spreading financial ... Under Financial Inclusion,

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<ul><li><p> State Focus Paper 2016-17 </p><p>ASSAM </p><p>3 </p><p>EXECUTIVE SUMMARY </p><p>Introduction NABARD, as an apex level developmental financial institution, is intensely associated, inter alia, </p><p>in the decentralized planning process with the preparation of potential based credit plan both at the district and state level on annual basis. At the state level, State Focus Paper is prepared which presents an aggregation of the district level projections made in the annual Potential Linked Plans (PLP). The basic objective of such planning exercise is to assess the credit potential keeping in view the sector specific physical potential, infrastructure support, forward and backward linkages, local skills and natural resources and credit absorption capacity of the sector. The credit projection is also fine tuned by factoring in the priorities and the policies of the GoI, State Govt. and the RBI. Keeping in view the importance of capital formation in enhancing production and productivity of the agriculture sector, the State Focus Paper: 2016-17 has adopted the theme Accelerating the Pace of Capital Formation in Agriculture and Allied Sector in Assam. </p><p> Private sector constitutes almost 80 per cent of the capital formation in agriculture. Investment Credit has emerged as the major driver thereby emphasizing the role of Banks to boost farm level investments. Accordingly, special emphasis has been given on identifying critical infrastructure gaps, constraints relating to infrastructure and other support services that hinder the flow of ground level credit. </p><p>Assam- Important Features Assam, the gateway to North East India, is the largest state in the North-East with a geographical </p><p>area of 78,438 sq.km. The State has 27 districts, 56 Sub Divisions, 219 blocks, 26395 inhabited villages, 382 (Agriculture Development Officer) Circles and 2948 Village Level Extension Workers (VLEWs). The State has a three-tier system of Panchayats. </p><p> As per Census of India 2011, the population of Assam is 3.12 crore with a density of 398 population per sq. km. The rural and urban population of the State is 268.07 lakh (85.90%) and 43.98 lakh (14.10%) respectively. Male population is 159.39 lakh (51.19%) and female population is 152.66 lakh (48.81%). </p><p> Assam is basically an agrarian economy as it provides employment to about 53% of the rural population. It is the main source of livelihoods for the majority of the people in rural areas. The total workforce of the State as per 2011 census was 120 lakh, constituting 38% of the total population. Of these, 87 lakh were main workforce and 33 lakh marginal workers. Cultivators and agricultural labourers were 9 lakh and 2 lakh respectively. </p><p> As per Agricultural Census 2010-11, there were 27.20 lakh operational holdings in the State covering an area of about 29.99 lakh ha. The marginal holdings with less than 1 ha of land accounted for 67% of total holdings and 25.80% of the total area of operation in the State. The small holdings between 1 to 2 ha constituted 18.25% of the total holdings and 22.91% of the total operational area. On the other hand, the large land holdings (10 ha and above) constituted 0.15% of the total number of holdings and 9.10% of the total operated area in the State. The remaining operational holdings and area of operation were under Semi Medium (2 to 4 ha) and Medium (4 to 10 ha). </p><p>Agricultural Scenerio in the State Net area sown in the State stood at 28.1 lakh ha out of which 6.47 lakh ha, constituting 23.04% </p><p>of net cropped area, was under irrigation. The cropping intensity in the State is 148%. The gross irrigation potential has been estimated at 27 lakh ha which is 67.5% of gross cropped area. Out of this, 10 lakh ha is proposed to be covered through minor irrigation project from ground water, 7 lakh ha through minor irrigation project from surface water and 10 lakh ha is proposed to be irrigated through major and medium irrigation project from surface water. </p><p> The State is divided into 6 Agro Climatic Zones (Lower Brahmaputra Valley Zone comprising 10 districts, North Bank Plain Zone comprising 5 districts, Central Brahmaputra Valley Zone comprising 2 districts, Upper Brahmaputra Valley Zone comprising 5 districts, Barak Valley Zone comprising 3 districts and Hill Zone comprising 2 districts). Paddy, pulses and oil seeds are the major food crops. Major fruits grown in the State are banana, pineapple, papaya, orange, Assam lemon and jackfruit. Amongst plantation crops, tea commands the most important place in the State. Vegetable is grown in 3.65 lakh ha. </p></li><li><p> State Focus Paper 2016-17 </p><p>ASSAM </p><p>4 </p><p>Banking Scenario </p><p> As on 31 March 2015, the State was served by a network of 2147 branches of 34 Commercial Banks (CBs), 2 Regional Rural Banks and the State Cooperative Bank, up from 2049 branches as on 31 March 2014. The per branch population on that date stood at 14534 (Census of India 2011), as against 15212 as on 31 March 2014. </p><p> State Bank of India is the Convener of the State Level Bankers Committee (SLBC) and is also the Lead Bank in 6 districts of the State. Two other banks viz. United Bank of India and UCO Bank have Lead Bank responsibilities in 12 and 9 districts respectively. </p><p> As on 31 March 2015, the aggregate deposits of all banks operating in the State stood at `100833.99 crore, registering a growth of 16% over 2013-14. During the year 2014-15, the major share of deposits had been garnered by the CBs (90%) followed by RRBs (8%). The market share of ACAB was a meagre 2%. </p><p> As against the target of `10012 crore under the Annual Credit Plan for the year 2014-15, an amount of `6128 crore was disbursed, recording an achievement of 61%. The disbursement, however, recorded a negative growth of 5.34% over the previous year. </p><p> CD Ratio of all banks in the State stood at 42.79% as on 31 March 2015, much lower than the prescribed norm of 60%. The inter-bank variations are high and as many as 22 banks operating in the state had CDR below 40%. Further, 11 districts in the State had CD Ratio less than 40% as on 31 March 2015. </p><p>NABARD Initiatives &amp; Related Developmental and Promotional Supports in the State NABARD provides refinance for crop loans at concessional rate of interest to State Cooperative </p><p>Banks (StCBs) and Regional Rural Banks (RRBs), which was `97.06 crore during 2014-15. The interest subvention and interest incentive scheme for Short Term crop loan is continuing during 2015-16. </p><p> NABARDs total refinance amount under Short Term and Investment Credit was `343 crore during 2014-15. Refinance under Investment Credit to banks was `246 crore during 2014-15 while short term refinance credit was `97 crore. Banks may focus on the potential term lending opportunities viz. livestock, fisheries, horticulture, spices &amp; condiments, micro irrigation, agro &amp; food processing, etc. for increasing credit flow under investment credit in Assam. </p><p> Long Term Rural Credit Fund, set up with an initial corpus of ` 5,000 crore with NABARD for the purpose of providing refinance support to Cooperative Banks and Regional Rural Banks for financing long term agriculture projects for accelerating capital formation in agriculture and allied sector was allocated. The fund was augmented with an additional amount of `15000 crore during the year 2015-16. </p><p> In Assam, SHG-Bank Linkage Programme is being implemented in all the 27 districts of the State. As on 31 March 2015, the cumulative number of savings linked SHGs was 3.19 lakh and credit linked SHGs was about 2.49 lakh. During 2014-15, 9174 JLGs have also been formed and financed, taking the cumultive number of JLGs promoted in the State to 30828 involving a loan of ` 244.94 crore. Micro Enterprise Development Programmes (MEDPs), Capacity building training programmes for members of SHGs, and various stakeholders are given thrust. </p><p> Inclusive participation from all strata of the society along with the benefits of efficient payment mechanism, access to credit and cost efficient products is essential to empower the currently unbanked population to participate and drive the growth of the economy. As per Census 2011, there were 26395 villages in the state, of which 24540 villages have been allotted to various banks. During 2014-15, 167 Financial Literacy camps were conducted all over the state covering about 13133 participants through road shows and distribution of publicity material, thus spreading the message among the rural masses on benefits of having a bank account. NABARD provided grant support for printing of Financial Literacy material to SLBC. As on 30 November 2015, the Lead Banks in the State viz. SBI, UBI and UCO Bank have set up 27 Financial Literacy Centres for dissemination of information and spreading financial literacy amongst the masses. </p><p> Under Financial Inclusion, support is provided under Financial Inclusion Fund (FIF) for Switching Fee and Interchange/ Transaction Charges for KCC transactions only on an ATM other than the parent bank. In addition, the Cooperative Banks are provided with add-on support for installation of ATMs and data migration/feeding of PACS data to CBS platform. FITF also </p></li><li><p> State Focus Paper 2016-17 </p><p>ASSAM </p><p>5 </p><p>supports schemes to cater to the requirements of the rural people and creates awareness of the different banking options available for them. The scheme also includes demonstration of Banking Technology through Mobile Van to rural masses. </p><p> NABARD has been closely associated with the implementation of a comprehensive Tribal Development Programme through Wadi approach. For this purpose, NABARD has created a dedicated fund called Tribal Development Fund(TDF). In all 6 projects have been sanctioned under TDF in the State with total financial assistance of 1166.69 lakh covering 2800 tribal families. Of these, 3 projects are currently being implemented with 2 NGOs as Project Implenting Agencies involving financial assistance to the tune of ` 6.68 crore. The projects covers 1400 families in 5(five) districts with rubber plantation, orange, pineapple, mango, cashew, bamboo and other livelihood activities. </p><p> NABARD has set up the Farm Sector Promotion Fund (FSPF) to promote technology transfer and innovations in the field of Agriculture and Allied Sectors. Grant assistance is made available to address the need of farmers for transfer of technologies as well as to facilitate promotion of commercial operations including market-linkages, formation of Producers Organisations, Federation of Farmers' Clubs, exposure visits, etc. </p><p> To augment the efforts of the State Govt. in strengthening the rural infrastructure in the State, NABARD has sanctioned cumulatively `3930.22 crore under RIDF for various infrastructure projects such as roads and bridges, irrigation, flood control structures, soil conservation, animal husbandry, fisheries, Small Hydel Projects, Handloom Development and sericulture, marketing infrastructure, etc. During the current financial year (as on 31.12.2015), the State Government has drawn `248.85 crore for implementation of sanctioned RIDF projects. </p><p> Infrastructure projects which required to be taken up on priority basis are also assesed in the PLPs for each districts. Preparation of Infrastructure Master Plan for each District to identify and bridge infrastructure requirements/gaps in rural connectivity, water resources, power, and other infrastructure required for agriculture and social sectors. Provision of infrastructure facilities like electricity, cold storage, processing units, marketing infrastructure, etc. for Horticulture produce. Construction of Veterinary Dispensaries / Cattle Breeding centres, Meat Processing Plants and Milk Chilling Plants have also been sanctioned. </p><p> To supplement the resources for creation of rural infrastructure, NABARD has designed NABARD Infrastructure Development Assistance (NIDA) scheme as an off budget product for State Governments and other State owned Organisations with an aim to fund Rural Infrastructure creation by providing assistance outside of RIDF on flexible terms. </p><p> In Union Budget for 2014-15, a separate fund namely Warehousing Infrastructure Fund(WIF) 2014-15 with a corpus of `5000 crore has been created for providing loans for creation of storage infrastructure including Warehouses, Silos, Cold Storage, controlled atmosphere stores, other cold chain infrastructures like pack houses, reefer vans, bulk coolers, individually quick frozen units, chilling/freezing infrastructure, etc. </p><p> As an initiative, Producers Development and Upliftment Corpus (PRODUCE) with ` 200 crore has been set up to supplement NABARDs Producers Organization Development Fund for promoting 2,000 producers organizations across the country in two years, commencing 2014-15. </p><p> Government of India (GoI) has accorded top priority for the development of the food processing industry. Accordingly, a Special Fund of `2000 crore is set up in NABARD to make available affordable credit to agro-processing units being designated as Food Parks. The Fund, designated as Food Processing Fund 2014-15, will be provided by NABARD either directly or through consortium arrangements with other financing agencies. State Governments, entities promoted by State / Central Governments, Joint ventures, Cooperatives, Federation of Cooperatives, SPVs, Farmers Producers Organizations, Corporates, Companies, Entrepreneurs, etc., may avail loan from this Fund for establishing the designated Food Parks and also for setting up of individual food/agro processing units in the designated Food Parks. </p><p> A dedicated fund, named Off farm Sector Promotion Fund which has been </p><p>operationalized from October 2014 has been created by merging Rural Innovation Fund (RIF), </p><p>Rural Promotion Fund (RPF) and Rural Non-Farm Sector (RNFS) for supporting innovations, </p><p>promotional programmes, loan based activities in rural areas with focus on various Off Farm </p></li><li><p> State Focus Paper 2016-17 </p><p>ASSAM </p><p>6 </p><p>Development activities, rural sanitation, housing, health, tourism, solar/bio energy, skill </p><p>building, transportation, technology development, rural services etc. </p><p> Area Based Schemes: </p><p>Area based schemes for pre-dominant activities in the districts have been identified and incorporated in the PLPs for 2016-17. The focus is to give thrust to the identified sector/activity by enhancing term loan disbursements through an implementable banking plan. </p><p>Implementation of area based schemes is a coordinated effort of DDM, NABARD Lead Bank, other Banks, line departments and other important stakeholders in respective districts. </p><p>NABARD, Assam RO has prepared two banking plans with an investment outlay of `45.63 crore for Dairy Sector Development covering 06 districts viz. Golaghat, Jorhat, Nagaon, Dhemaji, Lakhimpur and Sonitpur with refinance support. Besides, two Dairy clusters are being promoted under Area Development Schemes in Barpeta and Dibrugarh. </p><p>Credit Potential and Sector Wise Action Points: NABARD has been preparing the Poten...</p></li></ul>