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2 Executive Summary Andhra Pradesh is the 8 th largest State in the country in terms of area and 10 th largest State in terms of population. The vision of Andhra Pradesh as a Sunrise State requires harnessing every bit of potential at the grassroots level through meticulous planning and putting in place a robust implementation mechanism which gives scope for tremendous growth, challenging the planners to set forth goals matching its dreams of prosperity. Agriculture being the main stay for livelihood of people of the state, it is all the more essential that the potential assessment for Agriculture and rural development of the state are both realistic and can push for both credit and infrastructural growth to the level of the land’s cherished dreams. The State Focus Paper (SFP) 2016-17 presents a systematic assessment of credit potential for the 13 districts of Andhra Pradesh. The SFP which is aggregation of the Potential Linked Credit Plans for 2016-17 for all the districts of Andhra Pradesh carries granular details of sector-wise, investment purpose-wise credit requirement as also assess the critical infrastructure gaps and elucidates investment and budgetary support required for infrastructure development. The total credit under priority sector for 2016-17 in the State has been assessed at Rs.121764 crore, with a growth of 25.6% over expected Ground Level Credit for 2015-16. The credit projections for total Agriculture & Allied sector for 2016-17 are estimated at Rs.78822 crore, with the share of credit for agri-investment activities constituting 29.8%. The Focus areas of the SFP 2016-17 are summarized as under: I) Food Security and related issues To promote farm sector further, the GOI had announced to introduce Paramparagat Krishi Vikas Yojana, an organic farming scheme to improve soil health. Further, to promote the use of bio- fertilisers, subsidy on bio-fertilisers under National Food Security Mission (NFSM) has been enhanced from Rs.100 per ha to Rs.300 per ha. The Pradhan Mantri Gram Sinchai Yojana has also been introduced for irrigating the field of every farmer and improve water efficiency. It is also proposed to have a National Agricultural Market to increase the incomes of farmers. According to 70 th round of NSSO, about 59% of farmers do not get much technical assistance and know-how from government funded farm research institutes or extension services. To bridge the yield gap, it is considered necessary to shift the focus of the research and development from crop- centric research in irrigated areas to location-specific cropping systems in dry lands, hills and tribal areas. Andhra Pradesh is set to scale new heights in agriculture during the 12th Five Year Plan period with renewed focus on micro irrigation, System of Rice Intensification (SRI) cultivation, micronutrient application, development of dry land agriculture, farm mechanization, increasing storage capacity and other agriculture related strategies. In tune with the announcement made in Union Budget 2015-16 for dispensation of Agricultural credit at All India level to the tune of Rs.8.50 lakh crore, Andhra Pradesh has been given a target of Rs.53925 crore for 2015- 16. The GoAP aims to expand the warehouse capacity for increasing shelf-life of agricultural produce and promote scientific storage by plugging the entire gap of 10 lakh MT for storage and thereby improve post-harvest credit to farmers. To support the efforts of State Government and enable the small & marginal farmers to attain economies of scale, NABARD has also set a target for itself to promote & support 105 Producers’ Organisations in Andhra Pradesh by March 2016. Taking into account the estimates on gross cropped area, the crops grown, the category of farmers, the expectation from credit purveyors, as also keeping in view the support being made available by the GoI, the various plans of the State Government and special initiatives of NABARD, the potential for credit support assessed for Crop Production, Maintenance and Marketing for the year 2016-17 is Rs.55315 crore.

Executive Summary - NABARD · been introduced for irrigating the field of every farmer and improve water ... Marketing for the year 2016-17 is ... including bamboo and coconut through

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Executive Summary

Andhra Pradesh is the 8th largest State in the country in terms of area and 10th largest State in terms of population. The vision of Andhra Pradesh as a Sunrise State requires harnessing every bit of potential at the grassroots level through meticulous planning and putting in place a robust implementation mechanism which gives scope for tremendous growth, challenging the planners to set forth goals matching its dreams of prosperity. Agriculture being the main stay for livelihood of people of the state, it is all the more essential that the potential assessment for Agriculture and rural development of the state are both realistic and can push for both credit and infrastructural growth to the level of the land’s cherished dreams. The State Focus Paper (SFP) 2016-17 presents a systematic assessment of credit potential for the 13 districts of Andhra Pradesh. The SFP which is aggregation of the Potential Linked Credit Plans for 2016-17 for all the districts of Andhra Pradesh carries granular details of sector-wise, investment purpose-wise credit requirement as also assess the critical infrastructure gaps and elucidates investment and budgetary support required for infrastructure development. The total credit under priority sector for 2016-17 in the State has been assessed at Rs.121764 crore, with a growth of 25.6% over expected Ground Level Credit for 2015-16. The credit projections for total Agriculture & Allied sector for 2016-17 are estimated at Rs.78822 crore, with the share of credit for agri-investment activities constituting 29.8%. The Focus areas of the SFP 2016-17 are summarized as under: I) Food Security and related issues To promote farm sector further, the GOI had announced to introduce Paramparagat Krishi Vikas Yojana, an organic farming scheme to improve soil health. Further, to promote the use of bio-fertilisers, subsidy on bio-fertilisers under National Food Security Mission (NFSM) has been enhanced from Rs.100 per ha to Rs.300 per ha. The Pradhan Mantri Gram Sinchai Yojana has also been introduced for irrigating the field of every farmer and improve water efficiency. It is also proposed to have a National Agricultural Market to increase the incomes of farmers. According to 70th round of NSSO, about 59% of farmers do not get much technical assistance and know-how from government funded farm research institutes or extension services. To bridge the yield gap, it is considered necessary to shift the focus of the research and development from crop-centric research in irrigated areas to location-specific cropping systems in dry lands, hills and tribal areas. Andhra Pradesh is set to scale new heights in agriculture during the 12th Five Year Plan period with renewed focus on micro irrigation, System of Rice Intensification (SRI) cultivation, micronutrient application, development of dry land agriculture, farm mechanization, increasing storage capacity and other agriculture related strategies. In tune with the announcement made in Union Budget 2015-16 for dispensation of Agricultural credit at All India level to the tune of Rs.8.50 lakh crore, Andhra Pradesh has been given a target of Rs.53925 crore for 2015-16. The GoAP aims to expand the warehouse capacity for increasing shelf-life of agricultural produce and promote scientific storage by plugging the entire gap of 10 lakh MT for storage and thereby improve post-harvest credit to farmers. To support the efforts of State Government and enable the small & marginal farmers to attain economies of scale, NABARD has also set a target for itself to promote & support 105 Producers’ Organisations in Andhra Pradesh by March 2016. Taking into account the estimates on gross cropped area, the crops grown, the category of farmers, the expectation from credit purveyors, as also keeping in view the support being made available by the GoI, the various plans of the State Government and special initiatives of NABARD, the potential for credit support assessed for Crop Production, Maintenance and Marketing for the year 2016-17 is Rs.55315 crore.

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II) Investment credit to spearhead capital formation in Agriculture Keeping in view the growth of 4% in agriculture, as envisaged in the XII Five Year Plan, it has been found essential to plan for increase in investment credit in Agriculture so that the resultant capital formation leads to sustained growth of agriculture, as required to ensure food security. The focus for the current year’s credit projections is therefore on “Accelerating the pace of capital formation in agriculture and allied sector”, with an objective of giving thrust to investment credit for longer and sustainable development in the State. The thrust areas under investment credit include dry and wet Storage/godowns, Horticulture including Sericulture, Fruit & Vegetable cultivation, Floriculture, establishment of Green-houses/Poly houses, Minor Irrigation, Farm Mechanisation, Land development, Dairy, Poultry, Fisheries, Market based commercial Seed production, low energy indigenous renewable resources, etc. Overall credit potential of Rs.23506 crore has been made under Agriculture term credit/investment credit with a share of 29.8% of total agricultural credit in line with expectations of the Government of India and matching the requirement of the economy.

a) Management of Water Resources for sustainable production

Out of the 86.15 lakh ha of GCA, only 41.54 lakh ha are irrigated. Irrigation facilities in the state of Andhra Pradesh are dependent upon the utilization of the water of Godavari, Krishna, Pennar, Vamsadhara rivers, their tributaries, tanks, ponds as well as the related ground water aquifer systems. A rapid expansion of irrigation systems is, therefore, critical for realizing the full potential of agriculture and enhancing farming incomes. A three pronged strategy is suggested for making rapid strides in this area, differentiated as per the three major water sources viz. rivers, tanks and ground water. Firstly, the ongoing major and medium irrigation projects need to be quickly completed in a limited time frame, Secondly, the traditional systems of tanks in the state need to be renovated/revived/managed with full community involvement. Thirdly, cautious exploitation of groundwater for irrigation, duly taking care of the recharge. Further, crop diversification in favour of high value crops and more water conserving systems like SRI along with promotion of micro irrigation is also critical for realizing the imperative of “more income per drop”. There is a need for bank financing of new minor irrigation investments on individual as well as JLG group mode. As part of its strategy for achieving “Double Digit” economic growth in the state, the Government proposes to give focus to irrigation by creating new irrigation potential of 13.88 lakh ha and stabilizing 6.42 lakh ha ayacut in the next 4 years through various programmes, including Neeru Chettu and NTR Jala Siri and Panta Sanjeevani. NABARD has created a new window beyond RIDF, called the NABARD Infrastructure Development Assistance (NIDA), for lending to public sector agencies for infrastructure projects including irrigation sector. The Fund may also be used for bridging gaps in critical infrastructure identified at district level, mentioned at other places in this document.

Further, with a view to targeting under-developed rainfed areas, NABARD launched watershed programmes, treating about 2 lakh ha area so far. Most of the projects are in Full Implementation Phase and already additional areas have been brought under cultivation. These watershed areas offer scope for new groundwater structures, wherever water tables have gone up substantially, after doing water budgeting and with appropriate cropping patterns. Considering all these, the potential for credit support assessed for Water Resources for the year 2016-17 is Rs.1157 crore. b) Farm Mechanisation practices There is immense potential for financing Tractors (large, medium and small/mini horse power), Power Tillers, Rotavators, Paddy Transplanters, Threshers, Combine Harvesters, Sugarcane Harvesters, Seed Drills and other equipments like MB ploughs, Disc ploughs, Cultivators, Harrows, Weeders, Post-harvest equipments and Horticulture tools and equipments, crop based custom

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hiring service centres, etc. As the capital investment is high, subsidy is available under Rashtriya Krishi Vikas Yojana (RKVY), Normal State Plan (NSP) and Sub-Mission on Agricultural Mechanization (SMAM). As there is provision of Government subsidy for purchase of agri-implements in group mode, farmers’ organizations, PACS, etc., can make use of the scheme and set up agri service centres for the benefit of the small and marginal farmers. The State has also set separate budget for solar pump sets. The potential for credit support assessed for Farm Mechanisation for the year 2016-17 is Rs.2289 crore.

c) Horticulture and Sericulture for self–sustenance Horticulture is one of the thrust areas that provides dynamic tool for improving economic conditions of the farmers ensuring higher returns both in quantitative and value terms, facilitating diversified opportunities with high value crops, generating employment, ensuring nutritional security and ecological sustainability; and enhancing the export earnings. The State Government’s Mission for Integrated Development of Horticulture (MIDH) is to promote holistic growth of horticulture sector, including bamboo and coconut through research, technology, extension, post-harvest management, processing and marketing, in consonance with comparative advantage of each region and its diverse agro-climatic features. Under the programme, back-ended subsidy is extended for investments in production and post-harvest handling infrastructure. Considering these emerging opportunities coupled with the interventions envisaged by the State Government through different programmes under Primary Sector Mission, the potential for credit support assessed for Plantation & Horticulture for the year 2016-17 is Rs.1087 crore.

d) Forestry & Wasteland Development

The State Government has launched various programmes to improve the tree cover in the State and to provide gainful employment to the local tribal and rural people and to educate the youth in the protection of the ecology. The AP Forest Development Corporation (APDFC) is also doing programmes like Joint Forest Management, Beedi-leaf scheme, improving quality of seedlings, conserve wildlife, etc. The APFDC has been raising plantations like Eucalytus, Bamboo, Teak, Medicinal Plants, etc. APFDC has to its credit raising plantations over 82,380.72 ha. They envisage raising 3300 ha in each year under Eucalyptus, Bamboo and Teak plantations in the next 3 years in improving the coverage. The potential for credit support assessed for Forestry & Wasteland Development for the year 2016-17 is Rs.269 crore.

e) Livestock Management

Despite the huge potential existing in the state and the Government’s resolve to provide animal husbandry as an additional source of income for the farmers and the rural mass, issues such as low productivity of milch animals, non-availability of quality animals, vulnerability of poultry on account of increasing feed prices, inadequate integration for milk production impede growth of the sector and need to be addressed urgently. During 2015-16, twenty four Area Based Schemes have been identified for all districts of Andhra Pradesh. The potential for credit support assessed for Animal Husbandry sector including Dairy, Poultry and Sheep, Goat & Piggery Development for the year 2016-17 is Rs.6390 crore.

f) Fisheries Development --a sunrise sector

The Fisheries sector is one of the most promising sub-sectors of Agriculture in the State. This sector occupies a predominant place as 1.4 million people are directly or indirectly employed in the State. The State contributes nearly 42% of country’s marine exports. The sector has immense potential in the State for providing food, nutritional security and employment opportunities.

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Andhra Pradesh ranks first in brackish water shrimp and fresh water prawn (Scampi) production of India. During the year 2015-16, it is targeted to produce 22.67 lakh tonnes with projected GVA of Rs.27842 crore and growth rate of 30.56%. By 2018-19, it is targeted to achieve 45 lakh tonnes to realize the vision of AP to be “Aquaculture Hub of India”. To achieve the targeted fish and prawn production, an action plan has been drawn during the year 2015-16 to promote cage culture in reservoirs, expansion of the shrimp culture area, mechanization of aquaculture, promotion of alternate species like Tilapia, Seabass, Mud Crab, Scampi, promotion of deep sea fishing, capacity building of farmers/fishers, enforcement of statutory provision to ensure supply of quality seed, establishment of Aquatic Quarantine Centres & brooders multiplication centers for shrimp, expansion of lab services for disease surveillance, establishment of infrastructure facilities like markets, fish landing centres, etc. The new areas identified for financing includes working capital requirement for inland/marine and brackish water fisheries sector, including the processing plants, aquarium fish breeding units, resource specific marine fishing, PCR lab and marketing facilities, diversification to Tuna fishing with processing facilities, etc. Promotion of alternative livelihoods among fisher folk like seaweed cultivation, ornamental fish breeding, fabrication and sale of aquariums and value addition and marketing of fish products, etc. are promising areas in addition to creation of domestic demand and hygienic retail outlets for fisheries. Mari culture of certain finfish and shellfish species utilizing cage and pen culture technologies developed by CMFRI (Central Marine Fisheries Research Institute) can be planned. The potential for credit support assessed for Fisheries Development for the year 2016-17 is Rs.1848 crore. g) Creation of Godowns/Market Yards to support storage The Government aims to achieve food security through support price procurement of foodgrains, better price realisation to farmers, scientific storage and movement, maintenance of buffer stocks and availability to public at reasonable prices under Foodgrains Management System. Storage and marketing has emerged as a vital marketing intermediary function to the overall food security policy of the Government. Potential exists not only for grain warehouses but also for cold storage, milk chilling plants and food processing infrastructure. As per the present ground level position, a storage gap of approx. 10 lakh MT for warehouses and for cold storages has been estimated. The potential for credit support assessed for Storage Godowns/Market Yards for the year 2016-17 is Rs.1218 crore. h) Land Development for increased productivity

Organic farming activities are growing in the State with large area being brought under organic cultivation with major area under cotton, chillies and paddy. The entire value chain under organic farming, including production of inputs needs credit support from banks. Quality Soil Testing services for protecting the soil and increasing crop production, Water Harvesting Structures and Farm Ponds need to be promoted on a large scale by the Agriculture Department. Financing under ACABC scheme for establishment of soil/seed testing services and other extension activities can be encouraged. New and innovative technologies like SRI, SSI and Integrated farming System Models have huge potential of promotion in the State. Organic/Integrated farming clusters of Watershed PLUS activities to be encouraged and financed in completed watersheds. The potential for credit support assessed for Land development for the year 2016-17 is assessed at Rs.689 crore.

i) Food and Agro Processing Development

Agriculture being the main occupation of the rural people in the state, major focus in the area of enterprise development has to remain on food and agro processing. Both, the State Government and the Government of India have this on their priority list. Special funds have been created to support agro processing units and food parks. The Food Processing policy of Andhra Pradesh 2015-20 offers various benefits to Agro Processing units set up in the State, which includes capital

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subsidy, interest subsidy, skill development, Research & Development, marketing assistance, transportation, testing labs, quality certification/patent registration and export incentives. There is however, need to ensure regular and quality power supply. The CGTMSE scheme has to provide wider and adequate support to facilitate enhancement of credit to smaller units. The focus of service units can be on marketing of the processed items so that the value chain can be completed under the Micro and Small Enterprise Sector.

The potential for credit support assessed for Food and Agro Processing during 2016-17 is Rs.1451 crore. j) Micro, Small & Medium Enterprises (MSME) The Micro, Small and Medium Enterprise (MSME) sector is credited with generating the highest rates of employment growth and accounts for about 33.2% of manufacturing within Industry sector and for about 76.1% of unorganized sector of manufacturing in the State. The share of MSME sector accounted for about 6.1 % the state’s GSDP in 2013-14. The projected investment during the XII Plan for Andhra Pradesh is 33,578 crore and projected employment is 8,39,452. GoAP places strong impetus on development of MSMEs. The government intends to offer a conducive eco-system and competitive fiscal incentives to MSMEs and has charted a dedicated MSME Policy 2015-2020, with sufficient incentives under stamp duty and VAT/CST/SGST. The potential for credit support (investment credit + working capital) assessed for MSME Sector during 2016-17 is Rs.18778 crore. k) Export

As a prelude to the Double Digit Growth Plan, the Government has come out with various policies viz., Industrial Policy Parks, Textile and Apparel Policy, Bio-technology Policy, etc., which is going to boost the export of the State in a big way. GoI has announced various incentives, rationalized the procedures and provided tax benefits, etc. for encouraging exports. Growth in Agriculture export has been projected at 4% commensurating with the overall XII plan growth target for agriculture. To promote industrial development vis-a-vis promotion of exports, the State Government has announced various incentives/concessions, viz., stamp duty reimbursement, land cost rebate, VAT reimbursement, quality/patent support, etc., to new eligible entrepreneurs under the State Plan. The APEDA has identified three districts under AEZ, viz., Chitoor, Krishna & Guntur. The major exports from the State include Drugs, Pharmaceuticals and allied Chemicals and plastics, Agriculture and Agro based Products, Engineering products, Minerals and Mineral Products, Handicrafts and carpets, Textiles, Leather, Animal and Marine Products.

The potential for credit support assessed for Export for the year 2016-17 is Rs.4876 crore.

l) Education

Education & literacy levels are vital indicators of development in any society. Education is one of the seven missions in State agenda to convert the State into a ‘Knowledge Society’ by reinforcing education institutions and also a destination for a broad spectrum of skills across the country and world. In the State Mission Plan, a special programme has been initiated viz., “Badi Pillstundi --school is calling”. With establishment of National Level Educational Institutions viz., IIM, IIT, IISER, IIIT, NIT, Central University, Petroleum University, National Institute of Disaster Management and increasing trend among the students to pursue higher education in reputed institutions, the potential for credit support assessed to support Education sector for the year 2016-17 is Rs.2771 crore.

m) Housing

GoAP has announced “Andhra Pradesh State Affordable Housing Policy 2015”, with a vision “to provide affordable housing to all”. As per Andhra Pradesh Housing Board (APHB), of the total

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housing demand in the state, around 1 million units which need an investment of Rs.74,290 crore, translating to a requirement of Rs.7,429 crore per year, over a 10 year time- frame. The potential for credit support assessed for lending to Housing Sector during 2016-17 is Rs.7305 crore. n) Renewable energy The role of new and renewable energy viz., wind power, biomass power, small hydro power, solar power, and Urban & Industrial waste power has been assuming increasing significance in recent times with the growing concern for the country's energy security and environmental concerns. Renewable energy has been witnessing over 20 per cent growth in the last five years and reached a capacity of 33,791 MW at the end of December 2014. GOI is planning to increase the renewable energy capacity to 1,75,000 MW by 2022. Andhra Pradesh has excellent potential for promotion of alternate sources of energy and Ministry of Non-Conventional Energy Sources (MNES), Government of India has carried out a detailed assessment of potential available under the Renewable Energy sector in the country and AP at 896602 MW and 54916 MW, respectively.

The potential for credit support assessed for Renewable Energy sector for the year 2016-17 is Rs.989 crore. o) Social Infrastructure involving bank credit

Creation of social infrastructure was mainly in the domain of public investments. But, growing population and the increasing demands for better educational, health care and drinking facilities led to private investments in these sectors which led to establishment of host of private educational institutions, hospitals, drinking water plants, etc. The available infrastructure in the state, especially private infrastructure is heavily concentrated in few places and the facilities are still not accessible in remote places. To support the sector, the RBI has recently included bank credit for social infrastructure as part of Priority Sector.

Accordingly, the potential for credit support assessed for Social Infrastructure involving bank credit for the year 2016-17 is Rs.451 crore.

III) Bridging critical infrastructure gaps The Governments, both at Center and State, cater to the investment needs through their planned expenditure. However, there remain some critical gaps that could not be filled up. The 'Last-Mile' projects where large investments have already been made but are not yet completed and whose benefits can flow to the people with relatively small investments, projects having linkage with the livelihood of the farmers and projects of critical nature but could not figure in the State's plan fall in to this category. Some of these projects have been identified across the districts in the State and the investment required for them is detailed below:

(Rs. crore) Sector No. of projects Investment required

Last mile projects 177 2940.79

Post-Harvest Management / Value Addition 648 871.73

Rural connectivity 509 2390.88

Social Sector 102796 766.44

Others 2754 1801.32

Total 106884 8771.16

IV) Role of the credit purveyors In Andhra Pradesh, 49 Commercial Banks, 04 RRBs, 1 StCB, 13 District Central Cooperative Banks, 01 Urban Cooperative Bank and 01 AP State Financial Cooperation are operating with a

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network of 6540 branches as on 31 March 2015. Out of these, 2478 branches are in rural areas, 1999 branches in semi-urban areas, 1766 branches in urban areas and 297 branches in metro areas. The banking network is quite wide and deep. All the 3900 villages in the state with population of 2000 and above have been covered under banking network, recording 100% achievement. In respect of villages with population below 2000, out of 10731 villages allotted to banks, 10666 villages have been covered up to the period ended March 2015. Coverage has been through 424 branches and 10233 BCs, 09 through other modes. 65 villages are yet to be covered. Some of the issues in the State which need to be addressed are summarised as under:

• The State Govt. to focus on adoption of technology transfer initiatives with crop specific approach on lines of SRI model by NABARD.

• Govt. through its ground level machinery may create more awareness among the farmers on the crop contingency plans, and also crop insurance schemes.

• Focused attention on formation and nurturing of Producers Organisation for mitigating woes of small and marginal farmers with due concentration on post-harvest management.

• New MI structures may be taken up only in safe and semi critical basis with prior advice of GWD.

• PIM/WUAs to be promoted in all command area as per Farmers Management of Irrigation Systems Act, 1997.

• Agriculture Department in association with KVKs/ other agencies may suggest suitable area specific changes in cropping patterns, so as to avoid undue use of ground water

• Banks and Agri. Department may organise “Farmers into JLGs” for financing various types of farm implements, establishment of custom hiring centres, servicing centres for agri, etc.

• Mechanisation of horticulture production system is critical for overcoming the shortage of labour in rural areas and also to rationalise the cost of production. Small tractors with boom sprayers, rotovators, power saws, SS wires for pandals, which are needed for commercial production, may be supported by Govt. with subsidy.

• Waste lands may be properly identified to individuals/ JLGs/ SHGs etc., for development of forest plantation with economical/ remunerative species.

• The Government may fill-up the gap in the requirement of Veterinary Institution/ AI centres.

• Department may prepare plan to encourage backyard poultry with improved birds among SHGs/ JLGs.

• Department may provide incentive and motivate aqua farmers for revival of their shrimp culture ponds.

• New fish farm ponds may be created under MGNREGS and ownership be given to a group of fishermen so as to provide them a sustainable livelihood.

• Although there is good scope for promotion of post-harvest operations like drying, salting, ice boxes, vending boxed etc., the banks are restricting credit to fishermen folk who are engaged in artisanal fishing due to high level of over dues. The Department of Fisheries should sensitize the fishermen and help the banks in recovery of overdue loans.

• There is a need to conduct capacity building programme for farmers and bankers on the facilities available under infrastructure and also on modalities of government programmes.

• The Industries Department may popularise the scheme containing incentives available for food and agro processing under MoFPI, GoI and State Industrial Policy.

• Banks may provide loans for working capital requirement and coverage of units under CGTMSE and persuade units to avail grant under technology up-gradation scheme.

• Banks may finance entrepreneurs in SME clusters as well as processing units in identified Food Parks.

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• Lack of forex branches in the districts and the operation handling outside districts makes access to credit difficult for the exporter.

• Government may identity a Nodal Officers in the concerned departments to recommend the cases to the banks.

• Further efforts of the government are required to strengthen foreclosure laws, land records need to be computerised and archaic land laws, especially rental laws, need a complete overhaul. Steps, such as, digitization of land records, linking of central regulations with state regulations, encouraging credit bureaus, introducing mortgage insurance, allowing real estate mutual funds and creating a favourable environment to facilitate foreign direct investment in housing for genuine and needy customers will help stimulate the housing finance sector.

• Structure Power Purchase Agreements (PPAs) for renewable electricity supply may be considered by the Govt. as they are cost covering, bankable and replicable for mobilizing private investments.

• Government may consider tapping the CSR funds of corporates for improving the social infrastructure such as, water, sanitation, education, etc.

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State at a glanceState at a glanceState at a glanceState at a glance - Area: 160,205 sq. km.

- 8th largest state in the country

- Population: 49 million – 4.10% of India’s population

- 9 agro-climatic types and 5 different soil types

- Around 2 million hectares area is under crop production

- 2nd largest coast line with a length of 974 kms

- Leading producer of cash crops --tobacco, groundnut, oil seeds, cotton, sugar and jute

- 2nd largest producer of fish & prawn in the country

- World’s largest single deposit Grey Barytes in Mangampet, Kadapa District

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Mango Eggs

Tomato Chillies

Papaya Turmeric

Lime

Cashew

Bringal

Ground nut

Milk

Paddy Coconut

Maize Banana

Meat

Millets

Aqua

The vision plan of Govt of Andhra Pradesh

7 Missions •Primary

•Urban•Industries•Infrastructure•Services•Skill development•Social empowerement

5 GRIDS • Water

• Gas• Road• Power• Fibre

5 CAMPAIGNS

• Enrolment of students

• Environmental sustainability

• Victory over poverty

• Revival of agriculture

• Cleanliness and health

I

n

d

i

a

s

L

e

a

d

i

n

g

p

r

o

d

u

c

e

r

12

275045 Agro-climatic Zone

81

1128

27800

21895 Normal Actual 2010-11 2011-12 2012-13

940 1227 720 963

27504500 287 -220 23

6229899 Balance

4827442 1790000

552896

288627 Holding Area

613588 Nos. % to Total ha. % to Total

2273033 8425000 67.55 3727000 28.55

1558409 2215000 17.76 2882000 22.08

11160606 1399000 11.22 3685000 28.23

13759374 397000 3.18 2209000 16.92

2707086 36000 0.28 552000 4.22

97.00 12472000 100.00 13055000 100.00

7860 Total Male Female Rural Urban

NA 84666 42510 42156 56312 28354

13832 13878 NA NA NA NA

1642 5918 NA NA NA NA

NA 51439 28760 22679 30194 15913

11559 12610 NA NA 6470 6140

21024 NA NA

14246 NA NA

NA NA NA

25629 91307 170

NA 1634 508

16142 12522 45509

NA

NA NA 2685000

NA 3343000 NA

NA 224800 16

NA 9289 97

NA

8922000 9444

8674436 34

5089858

1817857 906 335

2544832 104756 638

549578 6501 2654652

177591 743033 276

6784511 498229 820808

No of units Cap.[MT]

NA NA Area (ha) Prod. (MT) Area (ha) Prod. (MT)

NA NA 4096000 12891 3587000 11174 3115

NA NA 276000 495 287000 433 1509

NA NA 864000 3656 963000 5070 5265

NA NA 565000 520 677000 743 1098

NA NA 482000 146 480000 246 513

NA NA 1307000 849 1341000 1087 811

NA NA 2054000 3182 2400000 5492 389

NA NA

Category of animal Total Male Female 2525 NA

Cattle - Cross bred 22 4225

Cattle - Indigenous 4898 5978

Buffaloes 13272 NA NA 8 10

Sheep - Cross bred 34 NA

Sheep - Indigenous NA

Goat 9626 NA NA 1 NA

Pig - Cross bred

Pig - Indigenous Fish 1603 52

Horse/Donkey 76 NA NA Egg 212103 250

Poultry - Cross bred NA NA Milk 12087 391

Poultry - Indigenous NA NA Meat 823716 27

Source:

2011-12

State Profile State - Andhra Pradesh

1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATETotal Geographical Area (Sq.km) Nine

No. of Sub Divisions Climate Hot & Humid tropical climate, semi- arid to sub- humid

No. of Blocks/Mandal Soil Type Red, Black and alluvial soil

No. of Villages (Inhabited) 4. RAINFALL & GROUND WATERNo. of Panchayats

Rainfall [in mm]3. LAND UTILISATION [ha]Total Area Reported Variation from Normal

Forest Land Availability of Ground

Water [Ham]

Net annual recharge Net annual draft

Area Not Available for Cultivation 3280000 1490000

Permanent Pasture and Grazing Land 5. DISTRIBUTION OF LAND HOLDINGLand under Miscellaneous Tree Crops

Classification of HoldingCultivable Wasteland

Current Fallow <= 1 ha

Other Fallow >1 to <=2 ha

Net Sown Area >2 to <=4 ha

Total or Gross Cropped Area >4 to <=10 ha

Area Cultivated More than Once >10 ha

Cropping Inensity [GCA/NSA] Total

6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000]Cultivators Category

Of the above, Small/Marginal Farmers Population

Agricultural Labourers Scheduled Caste

Workers engaged in Household Industries Scheduled Tribe

Workers engaged in Allied Agro-activities Literate

Other workers BPL

8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households]Total Households Having brick/stone/concrete houses Having electricity supply

Rural Households Having source of drinking water Having independent toilets

BPL Households Having access to banking services Having radio/TV sets

10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos]Villages Electrified Anganwadis Dispensaries

Villages having Agriculture Power Supply Primary Health Centres Hospitals

Villages having Post Offices Primary Health Sub-Centres Hospital Beds

Villages having Banking Facilities 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTUREVillages having Primary Schools Fertiliser/Seed/Pesticide Outlets [Nos] Agriculture Pumpsets[Nos]

Villages having Primary Health Centres Total N/P/K Consumption [MT] Pumpsets Energised [Nos]

Villages having Potable Water Supply Certified Seeds Supplied [MT] Agro Service Centres [Nos]

Villages connected with Paved Approach Roads Pesticides Consumed [MT] Soil Testing Centres [Nos]

13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos]

163333

Plantation nurseries [Nos]

Total Area Available for Irrigation (NIA + Fallow) Power Tillers [Nos] Farmers' Clubs [Nos]

Irrigation Potential Created Threshers/Cutters [Nos] Krishi Vigyan Kendras[Nos]

Net Irrigated Area(Total area irrigated at least once) 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETINGArea irrigated by Canals / Channels Rural/Urban Mandi/Haat [Nos] Wholesale Market [Nos]

Area irrigated by Wells Length of Pucca Road [Km] Godown [Nos]

Area irrigated by Tanks Length of Railway Line [Km] Godown Capacity[MT]

Area irrigated by Other Sources Public Transport Vehicle [Nos] Cold Storage [Nos]

Irrigation Potential Utilized (Gross Irrigated Area) Goods Transport Vehicle [Nos] Cold Store Capacity[MT]

15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPSType of Processing Activity

CropAvg. Y ield

[kg/ha]Food (Rice/Flour/Dal/Oil/Tea/Coffee)

2012-13

Sugarcane (Gur/Khandsari/Sugar) Rice

Fruit (Pulp/Juice/Fruit drink) Jowar

Spices (Masala Powders/Pastes) Maize

Dry-fruit (Cashew/Almond/Raisins) Bengal Gram

Cotton (Ginnining/Spinning/Weaving) Red Gram

Milk (Chilling/Cooling/Processing) Ground Nut

Meat (Chicken/Mutton/Pork/Dry fish) Cotton

Animal feed (Cattle/Poultry/Fishmeal) Production of Cotton(lint), Jute, Mesta & Sanhemp are in Bales(177.8 kg per bale in India)

17. ANIMAL POPULATION AS PER CENSUS 2007 [in 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIESVeterinary Hospitals/Dispensaries [Nos] Animal Markets [Nos]

11223 NA NADisease Diagnostic Centres [Nos] Milk Collection Centres [Nos]

Artificial Insemination Centers [Nos] Fishermen Societies [Nos]

Animal Breeding Farms [Nos] Fish seed farms [Nos]

25539 NA NAAnimal Husbandry Tng Centres [Nos] Fish Markets [Nos]

Dairy Cooperative Societies [Nos] Poultry hatcheries [Nos]

Improved Fodder Farms [Nos] Slaughter houses [Nos]

439 NA NA19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY

Production [MT] Per cap avail. [gm/day]

AP Agriculture Action Plan 2015-16, Census India -2011, AP Socio Economic Survey 2013-14, AP Statistical Abstract 2014

Production [Lakh Nos] Per cap avail. [nos/p.a.]

123985 Production ['000 MT] Per cap avail. [gm/day]

Production [MT] Per cap avail. [gm/day]

17

Total Rural Semi-urban Urban mFIs/mFOs SHGs/JLGs BCs/BFs Villages Households

Commercial Banks 49 5092 1603 1651 1838 NA NA NA 0.29 0.24

Regional Rural Bank 4 1052 725 212 115 NA NA NA 0.06 0.05

District Central Coop. Bank/SCB 13 379 150 136 93 NA NA NA 0.02 0.02

Coop. Agr. & Rural Dev. Bank NA NA NA NA NA NA NA NA

Primary Agr. Coop. Society 1953 NA NA NA NA NA NA NA

Scheduled Urban Coop. Bank 0 4 4 NA NA NA 0.00 0.00

All Agencies 2019 6527 2478 1999 2050 0.38 0.31

31-03-2013* 31 Mar 14 31 Mar 15 Share(%) 31-03-2013* 31 Mar 14 31 Mar 15 Share(%)

Commercial Banks 3722035800 1489928200 1728886800 89.23 4278191100 1759409100 1904540800 88.26

Regional Rural Bank 175836300 121252400 156501300 8.08 206234800 146613500 149466800 6.93

Cooperative Banks 91607300 40653100 51468800 2.66 197039800 89898100 86993600 4.03

Scheduled Urban Coop. Bank 12354400 539700 632900 0.03 7125800 490800 716700 0.03

Others 253900 47800 40500 0.00 27636500 15595100 16250600 0.75

All Agencies 4002087700 1652421200 1937530300 100.00 4716228000 2012006600 2157968500 100.00

31-03-2013* 31 Mar 14 31 Mar 15 Deposit Credit Deposit Credit

Commercial Banks 114.94 118.09 110.16 48.49 NA NA NA

Regional Rural Bank 117.29 120.92 95.51 14.92 NA NA NA

Cooperative Banks 196.39 219.43 168.34 NA NA NA

Others 32625.73 40124.94 NA NA NA

All Agencies 117.84 121.76 111.38 63.41

Commercial Banks 786597300 75% 510972500 70% 571150100 76% 1027000 100% 481815300 82%

Regional Rural Bank 123816200 12% 102879600 14% 134877900 18% 69203900 12%

Cooperative Banks 128886000 12% 121088700 16% 41451600 6% 500 39515400 7%

Others 4173800 0%

All Agencies 1043473300 100% 734940800 100% 747479600 100% 1027500 100% 590534600 100%

Commercial Banks 615339800 741674400 120.53 NA NA NA 601254200 475607100 79.10

Regional Rural Bank 110445100 129033600 116.83 NA NA NA 93719400 65994400 70.42

Cooperative Banks 85219600 120072100 140.90 NA NA NA 78657400 53987800 68.64

Others 10661900 4559600 NA NA NA 5307800 952900 17.95

All Agencies 821666400 995339700 121.14 669558300 647281800 96.67 778938800 596542200 76.58 98.13

Crop Loan 371277700 501572000 135.09 355486500 370580800 104.25 419780000 296580000 70.65 103.33

Term Loan (Agr) 158441300 234911800 148.26 114683000 127163800 110.88 140410000 102800000 73.21 110.79

Total Agri. Credit 529719000 736483800 139.03 470169500 497744600 105.86 560190000 399380000 71.29 105.40

Non-Farm Sector 93432100 112550700 120.46 69997700 94270300 134.68 108500000 141340000 130.27 128.47

Other Priority Sector 198515200 146305200 73.70 129391100 55266900 42.71 110250000 55820000 50.63 55.68

Total Priority Sector 821666300 995339700 121.14 669558300 647281800 96.67 778940000 596540000 76.58 98.13

Commercial Banks NA NA NA NA NA NA NA NA NA NA

Regional Rural Bank 114375100 93903000 82.10 69677810 57393725 82.37 NA NA NA NA

Cooperative Banks 109923530 99183592 90.23 195784582 169808878 86.73 NA NA NA NA

Others NA NA NA NA NA NA NA NA NA NA

All Agencies 224298630 193086592 86.08 265462392 227202603 85.59 NA NA NA NA

* consolidated figures for united Andhra Pradesh.

Source: SLBC

2013-14

Target [Rs.'000]Ach'ment [Rs.

'000]Ach'ment [%]

2014-15

Target [Rs.'000]

2011-12* Average

Rec. [%] in

last 3 years

2014-15

Broad Sector

Demand [Rs.

'000]

Recovery

[Rs. '000]Recovery [%]

Demand [Rs.

'000]

Recovery [Rs.

'000]Recovery [%]

8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

Ach'ment [Rs.

'000]Ach'ment [%]

2012-13* Average

Ach[%] in

last 3 yearsTarget [Rs.'000]Ach'ment [Rs.

'000]

Demand [Rs. '000]Recovery [Rs.

'000]Recovery [%]

Ach'ment [%]

9. RECOVERY POSITION

Agency

2013-14

2012-13*

% of Total

Loans

Ach'ment [%]Target

[Rs.'000]

Ach'ment

[Rs. '000]

7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

Agency

2012-13* Average

Ach[%] in

last 3 yearsTarget [Rs.'000]Ach'ment [Rs.

'000]Ach'ment [%]

Target

[Rs.'000]

Ach'ment

[Rs. '000]Ach'ment [%]

2014-15

Commercial Banks

Regional Rural Bank

Cooperative Banks

Others

All Agencies

6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2014)

% of Total

Loans

Agency

Priority Sector Loans Loans to Agr. Sector Loans to Weaker Sections Loans under DRI Scheme Loans to Women

Amount [Rs.'000]% of Total

Loans

Amount

[Rs.'000]

Amount

[Rs.'000]

Amount

[Rs.'000]

% of Total

Loans

% of Total

Loans

Amount

[Rs.'000]

4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of a/cs - lakh)

AgencyCD Ratio

AgencyDuring 2014-15 Cumulative

2. DEPOSITS OUTSTANDING 3. LOANS & ADVANCES OUTSTANDING

AgencyAmount of Deposit [Rs.'000] Amount of loan [Rs.'000]

Banking Profile

State - Andhra Pradesh

1. NETWORK & OUTREACH (As on 31/03/2015)

Agency No. of Banks/Soc.No. of Branches No. of non-formal agencies associated Per Branch Outreach