STATE FOCUS PAPER – 2016-17 NAGALAND EXECUTIVE … · current year’s projection. State Profile 0.3 Nagaland, the sixteenth state of the Indian Union, covers a geographical area

STATE FOCUS PAPER – 2016-17NAGALAND

EXECUTIVE SUMMARY

‘Accelerating the pace of capital formation in agriculture and allied sector’

Introduction0.1 Investment or capital formation is one of the basic requirements for growth of any sector. While the public and private capital formation in Indian agriculture has expanded manifold during the post reform period, yet, agricultural growth continues to hover around three per cent, raising concerns about the future of agriculture especially amidst decelerating productivity, growing distress among farmers and persisting poverty. A study conducted by the Centre for the Study of Regional Development, Jawaharlal Nehru University on Public and Private Capital Formation and Agricultural Growth in India, has shown that public and private investments in agriculture are unevenly spread across the states and so also is the farm income. States that have invested heavily into irrigation and infrastructure, and have pushed market-driven agro-industrial policies have accomplished higher rates of growth in the private investment and also in farm income. The study has also shown that private investment in agriculture is propelled by the public spending on agriculture and infrastructure, institutional credit and demand for agricultural raw material for agro-processing industry, whereas public investment is largely governed by the size of government spending and need to sustain agricultural growth. The findings support that the public expenditure on agriculture and food processing industry augments private investment and income, especially in the agriculturally-dominant and poor states. It has also highlighted the need to establish better alliances between farmers and food processing industry for a faster growth in the agricultural sector. It is only apt that the theme of the State Focus Paper for 2016-17 of accelerating the pace of capital formation in the agriculture and allied sector gives due cognizance to deepening investment in the farm sector in achieving higher rate of agricultural growth and simultaneously increase farm income. 0.2 The State Focus Paper (SFP) presents a systematic assessment of potential for extending credit in the 11 districts of Nagaland for the Financial Year 2016-17. Taking into account the resource endowment of the state, infrastructure and extension support available, market trend, skill profile of the people and capacity of the credit delivery system, NABARD has projected a credit potential of Rs. 1098.24 crore for the state during 2016-17. This envisages an increase of 21.30% over the current year’s projection.

State Profile0.3 Nagaland, the sixteenth state of the Indian Union, covers a geographical area of 16579 Sq.Km. It is administratively divided into 11 districts and 74 development blocks. It has a predominantly tribal population generically referred to as Nagas with several tribes and sub-tribes speaking diverse dialects specific to each tribe. With a population of 19.78 lakhs as per the 2011 census, Nagaland is the only state in the country that registered a negative decadal growth rate of -0.58%. The population density in the state is 119 persons per sq. km. The economy of the state is predominantly agrarian. Agriculture (27.18%), public administration (14.89%) and business and other services (31.50%) comprise three-fourths of the State’s NSDP (2010-11 at current prices). The near absence of contribution from manufacturing (1.69%) and banking and insurance (2.17%) reflects the lack of industrial activity in Nagaland and the weak supporting environment.

Banking / Financial sector Profile0.4 The major institutional agencies providing credit for agriculture and rural development in Nagaland are the Scheduled Commercial Banks (SCBs), the Nagaland Rural Bank (NRB) and the Nagaland State Cooperative Bank Ltd. (NStCB). The total number of bank branches operating in the

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state as on 31 March 2015 stood at 161. The average population per bank office (APPBO) is 12292. However the spatial spread of bank branches in the state is a matter of concern. 112 out of 161 bank branches are located in the districts of Dimapur, Kohima and Mokokchung representing 69% of the banking network in the state. Dimapur district alone has a network of 55 branches while the district of Longleng is serviced by one bank branch only. Out of 74 Rural Development Blocks, 29 blocks still remain unbanked. The total deposits mobilized by banks as on 31 March 2015 stood at Rs. 8166.39 crore registering a growth of 16.10 % over the previous year. Loans extended by banks during 2014-15 stood at Rs. 2471.39 crore indicating a growth of 4.21% over the previous year. This has taken the Credit Deposit (CD) ratio of the state to 30.26% as on 31 March 2015 a decrease of 3.46% over 31 March 2014. An area of concern is the low levels of loan recovery in the state. As on March 2015, the recovery percentage of banks under Priority Sector Advances stood at 41.92%. This has resulted in huge accumulation of Non-Performing Assets (NPAs). The gross NPA under Priority sector Advances (PSA) extended by banks in the state as on 31 March 2015 was Rs.78.67 crore constituting 11.11% of the total outstandings under PSA

NABARD’s perception on the development of the StateAgriculture scenario0.5 Agriculture is an important sector of the state’s economy, accounting for 27.47% of the GSDP and is the largest employer of the workforce in the state. Accelerating the growth of agriculture production is therefore necessary not only to achieve an annual growth rate of above 5% of the GSDP and meet the rising demand for food, but also to increase incomes of those dependent on agriculture to ensure inclusiveness. 70% of the cultivable area in the state is located in the hills at ranges of upto 2500 m. The traditional form of shifting cultivation i.e. Jhum, is widely practised across Nagaland. Rice is the dominant crop and also the staple food of the people. It occupies about 61% of the total area under food grains cultivation and constitutes about 71% of the total food grain production in the state. Kharif is the main season of the state. Ninety percent of cereals and commercial crops are produced during this season. Food grain production in the state during 2013-14 was 6.25 lakh MT as against 5.99 lakh MT in the year 2012-13. Though there has been an overall increase in food grain production in the state during 2013-14 by about 4%, the state still suffers from a deficit in rice production the staple crop. The priority of the state government therefore and in keeping with its vision and commitment of ‘Food for all’ by 2025, is to increase production and productivity through sustainable technologies in all existing farming systems. There has been a steady expansion in acreage under all crops in the state over the past three years and this has led to an increase in the crop production under all categories in the state. Food grains have overall recorded a higher growth in yield.0.6 Over the past decade, the horticulture sector has emerged as a driving force in stimulating a healthy growth trend in the agriculture sector in the state. The high growth rate in horticulture has been brought about by improvement in productivity of horticulture crops through the special thrust given to the sector under the Horticulture Mission for North East & Himalayan States (HMNEH) and the National Horticulture Mission (NHM) in the Xth Plan.0.7 In the livestock sector, the state produced 63.10% of the total requirement of Animal Husbandry (AH) products worth Rs.1180.07 crores leaving a shortfall of 36.90%. Out of this shortfall, the state imported AH products worth Rs.215.46 crores in monetary terms. (Sample Survey Report of 2013-14). The focus of the Dept of Veterinary and Animal Husbandry (DoV&AH) is therefore on development of piggery, poultry and Mithun for meat production and infusion of superior germplasm of Dairy cattle for milk production so as to narrow down the gap between demand and supply of AH products.0.8 By providing more flexibility and autonomy to the state in planning and execution of the various schemes under agriculture, the Rashtriya Krishi Vikas Yojana (RKVY), launched in August 2007 has incentivized the state to increase public investment in the agriculture and allied sectors taking agro

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climatic conditions, natural resource issues and technology into account and integrating livestock, poultry and fisheries more fully. RKVY has become the principal instrument for increasing the states’ investment in the agriculture sector. Agriculture and the allied sector in the state grew at 4.83 per cent of the State’s GSDP during 2012-13, recording an average rate of growth of 3.71 per cent per year during the past eight years post 2004-05.0.9 Use of technological interventions in terms of improved seeds, fertilisers and better implements which were limited in the past have now made inroads in the state particularly since the launch of RKVY. Mechanisation of agriculture has been poor because of the nature of the terrain in the state and the low purchasing power of the farmers. In order to encourage improved farming systems, develop more command area under crop production, bring more farmers under settled cultivation, promote intensive crop production and attain the target of ‘Food for all’ as envisioned in its “Vision 2025” document, the Department of Agriculture (DoA) has been providing farm implements such as power tillers, pump sets, mini reapers, etc to farmers at 50% subsidised rates under RKVY and State Plan. This is an ongoing programme of the department.Over the past decade, the net sown area in the state has gone up from 2.40 lakh hectares in 2000-01 to 2.99 lakh hectares in 2012-13 and the gross cropped area has gone up by 1.16 lakh hectares from 2.68 lakh to 3.84 lakh hectares during the same period due to increase in the cropping intensity from 110 to 129 per cent.

Capital formation in agriculture0.10 Agriculture Credit plays an important role in improving agricultural production, productivity and mitigating the distress of farmers. Banks in the state have been providing production and investment credit support to the agriculture and allied sector. An overview of the credit flow to the agriculture and allied sector has shown an upward trend. Credit to the agriculture sector doubled from Rs.3666.00 lakh in March 2011 to Rs.7554.93 lakh in March 2014.Investment or capital formation is one of the basic requirements for growth of any sector. The share of credit flow towards the investment sector has been very low in the overall credit extended by banks to the agriculture sector in the state. Despite having large community farm lands, the growth of agriculture in the state has been hampered by poor infrastructure, poor irrigation facilities, the rugged terrain that limits the scope and expansion of large-scale commercial cultivation and absence of any definite laws for the banks to rely on for security. As the agriculture sector provides sustenance to over 70% of the state’s population, it is imperative that the focus of development should be on increasing capital formation in the agriculture and allied sector through both public and private sector investment. It has been assessed that the state of Nagaland would require a gross fixed capital formation of 12.03 % of sectoral GSDP during the current five year plan in order to maintain its projected growth rate in the agricultural sector. This translates to a requirement of approximately Rs. 456.00 crore annually of investment in the agriculture sector which can partly be channeled through institutional credit. Investment credit has been identified as the major driver of private sector capital formation, and therefore an immediate thrust is required by banks to raise its share in the total agriculture credit in the state.

Potential activities for investment credit0.11 A few potential activities have been identified that may be given focused attention for development in the state:i) Pig development under livestock sector has tremendous scope for development but is still largely

unorganized. The per capita consumption of pork in Nagaland is the highest in the country. It is also the largest importer of pigs in the country both for meat and breeding purposes. Scaling

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up and intensification of pig production is required to reduce the large deficit of slaughter pigs. There is a need to shift from the current small scale household to semi commercial production system.

ii) Horticulture – There is huge potential for financing horticulture crops such as pineapple, citrus fruits, banana, etc in the state. Area expansion of potential focused crops like banana, citrus, pineapple, passion fruit, etc have been initiated by the Horticulture Department since the inception of the Horticulture Mission for North East and Himalayan States (HMNEH) and the efforts have paid off both in terms of recognition and production. The momentum needs to continue.

Vegetable cultivation is another prospective activity that has been indentified for special attention. One of the strategies adopted by the Horticulture Department in this regard is the initiation of Vegetable Village Concept on a community basis for the production of vegetables in all eleven districts of the state. Under this approach, potential vegetable growing villages in each district are selected and quality seeds both hybrid and open pollinated provided for production of vegetables during kharif and rabi season. As at the end of 2012-13, there were 52 active vegetable villages in the state

iii) Spices cultivation of a few major spice crops and protected cultivation specially in the districts of Dimapur and Kohima are other activities to focus on for development.

iv) Development of minor/micro irrigation in conjunction with the development of vegetable clusters and vegetable villages in the state, can lead to further increase in capital formation in the agriculture sector through investment credit.

The way forward0.12 There is a need for diversification to high value crops. As cropped area in the state is predominantly rainfed, importance should be given by the SARS to develop suitable technologies and crop varieties for rain-fed areas. There is also an urgent need for improved infrastructural services, particularly for transportation, storage and processing.The Kisan Credit Card (KCC) is an innovative tool of credit delivery to meet the production credit requirement of the farmers in a timely and convenient manner. All eligible farmers should be brought within the umbrella of KCC in a time bound manner and it should be made a single product catering to all credit needs of farmers. Crop insurance coverage is another important aspect that needs to be addressed in the state. The farmers of the state are yet to be covered under any insurance scheme in the event of crop loss. The National Agricultural Insurance Scheme (NAIS) and modified NAIS (MNAIS) are not in operation in the state. The State may contemplate working out it’s own insurance scheme by factoring in local climatic conditions, topography and soil types which determine productivity and farm income. The scheme should protect the farmers against both yield and loss and may be implemented with financial support from the Centre in the wake of recent announcements made by the Ministry of Agriculture in this regard.To sum up, seeds, fertilizers, pesticides, developing efficient marketing infrastructure and increasing flow of credit particularly to the thrust areas for the agriculture sector require enhancing public sector investment particularly in research and technology transfer along with institutional reforms to make it more accountable towards delivery, conservation of land, water and biological resources, development of rain fed agriculture, development of minor irrigation and water use efficiency and timely and adequate availability of inputs to small and marginal farmers.

Micro Small and Medium Enterprises (MSE)0.13 The Micro, Small and Medium Enterprises (MSME) sector have been recognized as engines of growth all over the world. MSMEs not only play a crucial role in providing large employment

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opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural and backward areas.The state of Nagaland is industrially backward. The potential for industrial growth and its lateral benefits of employment generation and income have remained largely untapped due to various infrastructural bottlenecks. Hence in the context of Nagaland, promotion of MSME sector assumes importance as it has the potential to become a critical input for improving the rural economy as well as providing the necessary stimulus for the growth of the secondary and tertiary sector in the state.The MSME sector acts as a breeding ground for entrepreneurs to grow from small-time players to big flourishing establishments. They are less capital intensive but at the same time are the most important employment generating sectors. Moreover it is extensively promoted and supported by the Government. There are a total of 0.39 lakh enterprises both registered and unregistered operating in the state providing employment to 1.71 lakh persons. Some of the sectors that have huge potential for development in the state given the thrust by the GoI and the State Govt. are highlighted below

Agro-Processing:0.14 The State has tremendous potential for the development of agro processing activities. Most of the fruit crops grown in the state acquire value addition after processing. In tune with the priority accorded by the GoI in the development of the food processing industry in the country, the State Govt. has created a dedicated department to handle all the scheme components of the National Mission on Food processing. A State Vision Document on food processing industries for the next 10 years has also been initiated to provide a clear strategy for the development of food processing in the state and strengthen both backward and forward linkages. Further, the Ministry of Commerce, GoI, has accorded approval to the Nagaland Industrial Development Corporation (NIDC) for developing an Agro and Food Processing Special Economic Zone (AFSEZ) in Ganeshnagar, Dimapur District, the first in NER. The Project is planned across an area of 125 acres. The AFSEZ seeks to capitalize on the abundant agro-horticulture resources of the state and address the problems of post harvest wastage and thereby provide a boost to the horticulture and agriculture activities of the state with ready outlet for their produces.To give further fillip to the food processing sector, the GoI had announced in the budget for 2014-15 the creation of a Special Fund with a corpus of Rs.2000 crore in NABARD for providing affordable credit for infrastructure works in food parks and food processing units to be set up in the designated food parks.

Bamboo based Industries:0.15 Bamboo is one of the fastest growing and highest yielding renewable natural resource and at the same time is highly versatile. Hitherto known as the ‘Poor man’s timber’, it has of late gained importance as a resource capable of providing ecological security and fostering in economic benefits to the region. Till date, 34 bamboo clusters covering 280 villages have been established in the state. The potential for the growth of this industry in the state is immense given the strong support and backing of the State Govt. The range of micro and small enterprises that can emanate from this sub sector is vast which can get a further fillip through institutional credit support.

Micro Credit 0.16 Micro Finance is a revolutionary and pro-poor economic activity that has been recognized worldwide as an efficient tool to combat poverty, create jobs and generate income. Above all, it has been regarded as a tool of financial inclusion. In Nagaland, the SHG-Bank Linkage Programme is being implemented in all 11 districts of the State. However, despite being launched in the state since over

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a decade, the pace of growth in credit linkage has been tardy. The number of Banks participating in the SHG-BLP is also limited. Besides the lone State Cooperative Bank and the Nagaland Rural Bank, the only RRB in the state, only a handful of CBs are participating in the SHG-BLP. A potential of 39740 SHGs have been estimated for Nagaland of which 6798 SHGs have been savings linked and 4554 have been credit linked (cumulative).

Joint Liability Groups (JLG):0.17 The JLG has proved to be the best medium for financing landless farmers, tenant farmers, sharecroppers and oral lessees. It has not only developed into a truly innovative credit product taking care of two levels of clientele, but has evolved as a key innovation in Micro credit. Of late, JLGs have also engaged the attention at the highest levels in the Government as an important tool for credit disbursement by banks to landless farmers. It is being increasingly realised that JLGs may be the most viable option for purveying credit, especially for taking up income generating activities in rural areas and making a difference to lives of people living in rural areas. NABARD has taken this innovative product from pilot stage in 2004-05 to a regular product for the banks in the year 2006-07. Till date, 7.29 lakh JLGs have been financed by the banks across the country. The banks in the state are yet to fully realise the vast business potential that exists for extending credit to the priority sector by financing through the JLG mode. In the wake of the announcement in the Union Budget for 2014-15 inter alia on financing five lakh Joint Farming groups of ‘Bhoomi Heen Kisan’, it becomes imperative on the part of the Banks in the state to take the initiative in extending credit to JLGs in order to achieve the target of financing 200 JLGs allotted to the state of Nagaland for the current financial year. To facilitate promotion of JLGs, banks/ group promoting institutions are eligible for incentive from NABARD. Banks may undertake efforts to promote and finance JLGs on a cluster basis for agriculture as well as activities allied to agriculture and non-farm activities.In Nagaland, JLG financing is still at the nascent stage with only a few banks participating in this business initiative. NABARD had roped in a few partner NGOs through whom JLGs have been promoted and credit linked to the banks during the recent past. As on 31 March 2015, 366 JLGs have been promoted through two NGOs in the state of which 110 JLGs have been credit linked to the Nagaland State Cooperative Bank Ltd. with a bank credit of Rs.195.76 lakh. During the current financial year, the NABARD Nagaland Regional Office has made it a mission to promote JLGs in all 11 districts of the state through it’s Joint Liability Group Promoting Institution (JLGPI) initiative. As on January 2016, a cumulative grant assistance of Rs. 42.00 lakh has been sanctioned to 5 NGOs and 2 banks to promote and credit link 2100 JLGs in the state over the next three years.

National Rural L ivelihood Mission (NRLM)0.18 NRLM is the flagship programme of Govt. of India for promoting poverty reduction through building strong institutions of the poor, particularly women, and enabling these institutions to access a range of financial and livelihoods services.NRLM has a provision for i nterest subvention to cover the difference between the lendi ng rate of the banks and target rate of 7% from the banks/ financial institutions availed by women SHGs for a maximum of Rs.3 lakh per SHG.

Financial Inclusion0.19 Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost. It refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity products.

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Progress of Financial InclusionProgress of financial inclusion since the launch of financial inclusion plans clearly indicates that banks are progressing in areas like opening of banking outlets, deploying BCs, opening of BSBD accounts, grant of credit through KCCs and GCCs. The progress in respect of Nagaland state is detailed below:i) Increase in branch network from 109 in March 2010 to 161 in March 2015ii) 201 unbanked villages with population of more than 2000 covered through various modes as

on 31 March 2013. Another 950 villages with population of less than 2000 allotted to banks for coverage by March 2014

iii) Financial Inclusion Plans drawn by banks for bringing all rural households under the banking fold through one Basic Savings & Basic deposit Account (BSBD). Out of 3.99 lakh rural households as per 2011 census, 1.48 lakh rural households covered as on 31 March 2014.

iv) ATM network has expanded from 42 in March 2013 to 207 as on 31 March 2015v) 216 Financial Literacy camps were conducted by various banks covering 216 villages during

2014-15

Pradhan Mantri Jan-Dhan Yojana (PMJDY)0.20 “Pradhan Mantri Jan-Dhan Yojana (PMJDY)” is a National Mission for Financial Inclusion announced by the Hon’ble Prime Minister, Sh. Narendra Modi on 15 August, 2014. It has an ambitious objective of covering all households in the country with banking facilities and having a bank account for each household. PMJDY was launched across the nation simultaneously on 28 August, 2014. As a first step, every account holder gets a RuPay debit card with a Rs. 1,00,000/- accident cover. Further, they will be covered by insurance and pension products. PMJDY is to be executed in a Mission Mode and envisages provision of affordable financial services to all citizens within a reasonable distance. As on January 2015, 3.52 lakh households were covered with Bank Accounts in the state and a total of 62263 Rupay cards were issued.

Potential Credit Outlay0.23 The Base State Focus Paper assessed a credit requirement of Rs. 81997.06 lakh under the agriculture and non-farm sector for the state of Nagaland for the year 2016-17. The above assessment was made taking into account the resource endowment of the state, infrastructure and extension support available, market trend, skill profile of the people and capacity of the credit delivery system. However, based on trends in credit flow under priority sector lending in the state over the past three to four years, infrastructural changes which have taken place in the districts and factors like inflation that have necessitatied revision in the unit costs of various investment activities as well as in the Scale of Finance (SoF) for lendi ng under crop loans, the potential credit outlay for the state as a whole for 2016-17 has been revised and estimated at Rs. 109824.10 lakh an increase of 34% percent over the base SFP projections for 2016-17. The sector-wise status, potential credit assessed for development, Constraints/ issues that need to be addressed and initiatives needed to be taken by various stakeholders are discussed in brief in the chapter. Reserve Bank of India (RBI) has revised the Priority Sector Lending (PSL) norms vide circular dated 23 April 2015. Priority Sector has been classified into eight broad sectors viz, (i) Agriculture (ii) Micro, Small and Medium Enterprises (iii) Export Credit (iv) Education (v) Housing (vi) Social Infrastructure (vii) Renewable Energy and (viii) Others. The sub sectors and activities covered under each broad sector have also undergone revision. In view of the changes brought out by RBI in the coverage, composition and classification of activities covered under PSL, the composition and content of the PLP document have been revised so as to align with the revised guidelines on PSL.

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Priority Sector Lending is classified into eight broad sectors as listed below:

i Agricultureii MSMEiii Export Creditiv Educationv Housingvi Social Infrastructurevii Renewable Energyviii Others

Accordingly, assessment of potential for various sectors/sub sectors/activities covered under PSL have been carried out after grouping them into the following categories:

I. AgricultureA. Farm Credit Crop Production, Maintenance & Marketing Water Resources Farm Mechanisation Plantation & Horticulture ( including sericulture) Forestry & Wasteland Development Animal Husbandry Fisheries

B. Agriculture Infrastructure Land Development/Soil Conservation Storage, Godowns & Market yards Others (Tissue culture, Agri bio-technology, Seed production, Bio pesticides/ fertilizers, Vermi

composting)

C. Ancillary Activities Agro-processing Others - Loans to MFIs for onlending to agriculture

II. Micro Small and Medium Enterprises (MSME)

III. Export Credit

IV. Education

V. Housing

VI. Renewable sources of energy

VII. Others - (SHGs/JLGs/Overdraft facility to PMJDY account holders, etc)

VIII. Social Infrastructure involving bank credit

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The sector-wise credit projections that have emerged based on the district-wise / sector-wise assessments made in the PLPs for the year 2016-17 are detailed in the ensuing tables 0.1 & 02

Table 0.1: Summary of the sector-wise credit estimates for 2016-17 Rs. in lakh

Sr. No Sector PLP projection

I A Farm Credit

i Crop Production, Maintenance and Marketing 21021.05

ii Water Resources 1267.04

iii Farm Mechanisation 2302.81

iv Plantation and Horticulture (including sericulture) 9026.6

v Forestry and Waste Land Development 1514.14

vi Animal Husbandry – Dairy 2417.07

vii Animal Husbandry – Poultry 4746.45

viii Animal Husbandry – Sheep, Goat, Piggery, etc. 8003.70

ix Fisheries (Marine, Inland, Brackish water) 1798.16

x Others – Bullock, Bullock cart, etc. 0.00

Sub Total 52097.02

B Agriculture Infrastructure

i Construction of storage facilities (Warehouses, Market yards, Godowns, Silos, Cold storage units/ Cold storage chains)

1758.75

ii Land development, Soil conservation, Watershed development 907.68

iii Others (Tissue culture, Agri bio-technology, Seed production, Bio pesticides/ fertilizers, Vermin composting)

463.99

Sub Total 3130.42

C Ancillary activities

i Food and Agro processing 3298.66

ii Others - Loans to MFIs for onlending to agriculture 296

Sub Total 3594.66

Total Agriculture 58822.10

II Micro, Small and Medium Enterprises

i MSME – Working capital 7534.75

ii MSME – Investment credit 13311.37

Total MSME 20846.12

III Export Credit 2565.43

IV Education 7968.00

V Housing 13160.00

VI Renewable Energy 829.07

VII Others 4208.42

VIII Social Infrastructure involving bank credit 1424.96

Total Priority Secor 109824.10

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Table 0.2: Summary of the district-wise projections for 2016-17 Rs. in lakh

Sl. No. Name of the District PLP Projection1 Dimapur 28775.742 Kohima 22275.183 Peren 3731.194 Mokokchung 14308.285 Mon 5923.266 Phek 4881.317 Tuensang 5623.208 Kiphere 2098.179 Longleng 1586.35

10 Wokha 11538.3611 Zunheboto 9083.06

State Total 109824.10

The Sector-wise/District-wise PLP projections, for the year 2016-17 are given in Annexure - I

Infrastructure Support0.21 Infrastructure is an index of developmental status of a region. It is a broad term encompassing investments which create the base for direct economic activities and generation of income. It is often classified into economic and social infrastructure. In the context of accelerating the growth of agriculture, the importance of rural infrastructure in sectors like irrigation, roads and bridges needs no emphasis. Good and adequate infrastructure is essential for increased productivity of land, capital and labour. Investment in rural infrastructure creates new economic opportunities and activities, generates additional employment and income, facilitates and improves delivery of other rural services and enhances democratic process and skills among the rural poor. However, it has been observed that rural infrastructure, many a times, remains a concern of State Governments where, for various reasons, mainly resources constraints, does not get the attention it deserves. Moreover, there was no effective institutional arrangement for financing rural infrastructure. This inadequacy of public investment in agriculture and rural sector has thus led to number of rural projects lying incomplete in many States making the investments infructuous.Infrastructural development in Nagaland began with a big challenge. When Nagaland attained statehood in 1963, there was barely any infrastructure standing. Even to date, Nagaland is in dire need of physical resources like better roads, communication networks, electricity, education, irrigation projects and drinking water facilities for its increasing population. However, the biggest impediment for development is the absence of good roads.0.22 Since 1995-96 onwards, NABARD has been financing rural infrastructure projects in various states out of the Rural Infrastructure Development Fund (RIDF). The state of Nagaland has also been assisted under this fund. The components that have been funded in the state include Rural Roads, Minor Irrigation projects, Land Development projects, Agro-forestry, Animal Husbandry and Veterinary projects, Fisheries, etc. As on 31st March 2015, 788 projects with RIDF assistance of Rs. 756.29 crore have been sanctioned to the Government of Nagaland and an amount of Rs. 472.86 crore has been disbursed. Rural Roads accounted for 43.15 % and Power projects accounted for 32.87 % of the total sanctions.

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Table 0.3 Status of Projects sanctioned in Nagaland under RIDF as on 31 March 2015

Sl. Activity No. of projects Sanctioned Amt.

(Rs. Crore)

Cumulative Disb. As on 31

march 2015(Rs. Crore)

% share of sanctions

1 Minor Irrigation 58 18.43 13.82 2.442 Roads & Bridges 373 326.34 274.30 43.153 Rubber Plantation 25 24.48 21.43 3.244 Sericulture 7 11.36 11.36 1.505 Agro Forestry 2 9.01 9.00 1.196 Fisheries 28 19.04 13.82 2.527 Animal Husbandry 26 30.09 29.85 3.988 Integrated Land

Development258 68.95 47.16 9.12

9 Hydro Power & System Improvement

11 248.58 52.12 32.87

Total 788 756.29 472.86 100.00

In the Union Budget for 2015-16, RIDF XXI was announced with an allocation of Rs. 25,000 crore and a normative allocation of Rs. 50.00 crore has been made for Nagaland State for sanction of new projects during the year 2015-16.A Special Fund of Rs. 2000 crore has been set up in NABARD to make available affordable credit to agro-processing units being designated as Food Parks. The Fund has been established in NABARD by RBI. Financial assistance from this 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 loans 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. The NABARD Infrastructure Development Assistance (NIDA) programme was designed for State Governments and other state-owned organizations. NIDA aims to fund rural infrastructure creation by providing assistance to state governments, outside of RIDF borrowing, and other state-owned organizations.

Way Forwarda) GoN needs to identify and commercialize infrastructure projects through Private Public

Partnership (PPP) covering power, transportation and information technology. Projects which are commercially viable should be developed through private sector investment. It must also look at alternative source of funding and prioritize investments based on need, potentials and impact of the project on the economy.

b) GoN should also put considerable stress on improving the current stock of infrastructure and connectivity by involving the community. This will also contribute significantly towards creation of core industries and employment avenues.

c) Explore the possibility to produce non-conventional forms of energy and also encourage the setting up of power plants by private sector firms.

d) Considerable stress should be laid on improving the road network alongwith well planned drainage in the State especially with respect to the State highways and connectivity of all districts with industrial centres and the State capital.

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e) Set up specialized infrastructures such as warehousing, cold storage, food processing units, wholesale markets, export processing zones, etc.

f) Link all block headquarters in the State through high speed data network 24x7.

Sector wise potential for investments in Rural Infrastructure in the State are given in Annexure III. State Government may leverage the funds available under RIDF, NABARD Warehousing Scheme, Food Processing Fund and NIDA for creation of suitable rural infrastructure for overall development of the State.

Area Based Schemes0.24 There are a large number of small and marginal farmers and people living below the poverty line in the state who have no access to direct credit from formal financial institutions. There is a need for promoting single purpose small projects / schemes on a cluster basis to cover such groups and have them linked to the formal credit institutions. These cluster based single purpose small projects taken together can be termed as Area Development Projects / Schemes. Financing of dairy units, piggery units, dug wells, sericulture, other horticulture crops, farm forestry projects, etc. are some examples. Such schemes could be sanctioned to a single bank or to a number of banks. Besides the exigency of economic development of the people at large, it facilitates planning and execution of infrastructure facility viz., backward and forward linkages – for full realisation of the benefits of the projects / schemes. These backward and forward linkages could also be planned and executed with credit support e.g. in the areas identified for development of dairy, there would be scope to promote units related to processing, cold storage and marketing units in the area.

Activities identified in the SFP for Nagaland for 2016-17 are traditional activities such as piggery, vegetable cultivation and poultry. In addition, Dairy, bee keeping and agro and food processing are other activities that have been identified. Besides the above activities, with the growing demand and trend for diversification there may be potentials for other activities viz., mixed fruit orchard, banana plantation, floriculture, mushroom culture etc. which need to be explored continuously. Implementation may be either as a banking plan by NABARD to major participating banks or any interested bank may prepare or implement their own area development scheme for a particular district/activity in association with NABARD

Benefits of Area Development Schemes Convenient to plan, implement and monitor Gives a visible impact to development, this helps to motivate others to get involved Better utilization of existing underutilized infrastructure Better and collective marketing of produce Give a platform for formation of Producers Organisation Capacity building of the project partners / farmers for collective bargaining Generate demand for other supplementary / complementary activities Bankers find it convenient to finance as no individual project appraisal is necessary It facilitates value chain financing.

17


STATE FOCUS PAPER - 2016-17 NAGALAND

State Profile STATE NAGALAND

1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE

Total Geographical Area (Sq.km) 16579 Agro-climatic

Zone Eastern Himalayan Region - North East Hills (Zone 2)

No. of Sub Divisions 21

No. of Blocks 74 Climate Per humid to humid.

No. of Villages (Inhabited) 1428 Soil Type Red sandy, Laterite

No. of Panchayats / VDBs 3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER

Total Area Reported 1651793

Rainfall [in mm]

Normal Actual

2012 2013 2014

Forest Land 862930 1370 1749 1383

Area Not Available for Cultivation 95358 Variation from Normal

Permanent Pasture and Grazing Land NA Availability of

Ground Water [Ham]

Net annual recharge Net annual draft Balance

Land under Miscellaneous Tree Crops 93642

Cultivable Wasteland 69525 5. DISTRIBUTION OF LAND HOLDING (Agriculture Census 2010-11, GoI)

Current Fallow 50078

Classification of Holding Holding Area

Other Fallow 99529

Nos. ('000) % to Total

Ha. ('000) % to Total

Net Sown Area 380468 <= 1 Ha 6 3.39 3 0.28

Total or Gross Cropped Area 499311 >1 to <=2 Ha 20 11.30 23 2.14

Area Cultivated More than once 118843 >2 Ha 151 85.31 1048 97.58

Cropping Inensity [GCA/NSA] 131 Total 177 100.00 1074 100.00

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

Cultivators 420 Category Total Male Female Rural Urban

Of the above, Small/Marginal Farmers NA Population 1979 1025 954 1408 571

Agricultural Labourers 23 Scheduled Caste O O O O O

Workers engaged in Household Industries 10 Scheduled Tribe 1711 NA NA 1307 404

Workers engaged in Allied Agro-activities NA Literate 1342 724 618 NA NA

Other workers 29 BPL NA NA NA NA NA

8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households]

Total Households 400

Having brick/stone/concrete houses 22

Having electricity supply 326

Rural Households 283

Having source of drinking water

117 Having independent toilets

306

BPL Households NA Having access to banking services 140 Having radio/tv sets 252

10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos]

Villages Electrified 1262 Anganwadis NA Dispensaries 3

Villages having Agriculture Power Supply NA Primary Health Centres 112 Hospitals 11

Villages having Post Offices 328 Primary Health Sub-Centres 356 Hospital Beds 2393

Villages having Banking Facilities NA 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE

Villages having Primary Schools 1806

Fertiliser/Seed/Pesticide Outlets [Nos]

NA Agriculture Pumpsets[Nos] NA

Villages having Primary Health Centres 112

Total N/P/K Consumption [MT]

2111.06 Pumpsets Energised [Nos] NA

23



Villages having Potable Water Supply 71 Certified Seeds Supplied [MT] NA Agro Service Centres

[Nos] NA

Villages connected with Paved Approach Roads NA

Pesticides Consumed [MT] 6 Soil Testing Centres [Nos]

NA

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

Total Area Available for Irrigation (NIA + Fallow) 240577 Power Tillers [Nos] NA Farmers' Clubs [Nos] 210

Irrigation Potential Created 90970 Threshers/Cutters [Nos] NA Krishi Vigyan

Kendras[Nos] 9

Net Irrigated Area(Total area irrigated at least once) 90970 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING

Area irrigated by Canals / Channels NA

Rural/Urban Mandi/Haat [Nos] NA

Wholesale Market [Nos] NA

Area irrigated by Wells NA Length of Pucca Road [Km] 4633 Godown [Nos] NA

Area irrigated by Tanks NA Length of Railway Line [Km] 19 Godown Capacity[MT] NA

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

Irrigation Potential Utilized (Gross Irrigated Area) 99790 Goods Transport Vehicle [Nos] NA

Cold Store Capacity[MT] NA

15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS

Type of Processing Activity No of units Cap.[MT]

Crop 2012-13 2013-14

Avg. Yield [Kg/Ha]

Food (Rice/Flour/Dal/Oil/Tea/Coffee) 37 NA Area (Ha) Prod. (MT) Area (Ha)

Prod. (MT)

Sugarcane (Gur/Khandsari/Sugar) NA NA Rice 183330 405180 189480 429640 2239.26

Fruit (Pulp/Juice/Fruit drink) NA NA Maize 68670 134650 68780 135440 1965.01

Spices (Masala Powders/Pastes) NA NA Potato 6900 69000 6900 69000 10000.00

Dry-fruit (Cashew/Almond/Raisins) NA NA Soyabean 24670 30880 24750 31060 1253.34

Cotton (Ginnining/Spinning/Weaving) 72 NA Wheat 3270 5890 3000 5470 1811.80

Milk (Chilling/Cooling/Processing) NA NA Rapeseed & Mustard

27170 27420 27180 27460 1009.75

Meat (Chicken/Motton/Pork/Dryfish) NA NA Millets 8580 9610 8670 9750 1122.32

Animal feed (Cattle/Poultry/Fishmeal) NA NA 17. ANIMAL POPULATION AS PER LIVESTOCK CENSUS 2012

Category of animal Total Male Female Veterinary Hospitals/Dispensaries [Nos]

40 Animal Markets [Nos] NA

Cattle - Cross bred 123559 NA NA Disease Diagnostic Centres [Nos]

14 Milk Collection Centres [Nos]

NA

Cattle - Indigenous 103734 NA NA Artificial Insemination Centers [Nos]

6 Fishermen Societies [Nos] 382

Buffaloes 31451 NA NA Animal Breeding Farms [Nos] 20 Fish seed farms [Nos] NA

Sheep - Cross bred NA NA NA Animal Husbandry Tng Centres [Nos]

1 Fish Markets [Nos] NA

Sheep - Indigenous 3600 NA NA Dairy Cooperative Societies [Nos]

184 Poultry hatcheries [Nos]

NA

Mithun 30980 NA NA Improved Fodder Farms [Nos] 5 Slaughter houses [Nos] 1

Pig - Cross bred 367719 NA NA 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY #

Goat 93122 NA NA Fish Production [MT]

6585 Per cap avail. [gm/day] 534

Horse/Donkey/Camel 390 NA NA Egg Production [Lakh Nos] 1000 Per cap avail. [nos/p.a.] 47

Poultry - Cross bred 2055056 NA NA Milk Production ['000 MT]

129 Per cap avail. [gm/day] 167

Poultry - Indigenous NA NA NA Meat Production [MT] 101000 Per cap avail. [gm/day] 117

Sources (if not mentioned against the respective item):

Statistical Handbook of Nagaland 2014 # Vision 2025, GoN

24



Banking Profile STATE - NAGALAND

1. NETWORK & OUTREACH (As on 31/03/2014)

Agency No. of

Banks/Soc.

No. of Branches No. of non-formal agencies associated Per Branch Outreach

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

ds

Commercial Banks 25 130 N.A. N.A. 0 0 N.A. 0 N.A. N.A.

Regional Rural Bank 1 10 N.A. N.A. 0 0 N.A. 0 N.A. N.A.

District Central Coop. Bank

0 0 N.A. N.A. 0 0 0 0 0 0

Coop. Agr. & Rural Dev. Bank

0 0 N.A. N.A. 0 0 0 0 0 0

Primary Agr. Coop. Society

0 0 N.A. N.A. 0 0 0 0 0 0

Nagaland SCB 1 21 N.A. N.A. 0 0 N.A. 0 N.A. N.A.

All Agencies 27 161 N.A. N.A. 0 0 N.A. 0 N.A. N.A.

2. DEPOSITS OUTSTANDING

Agency No. of accounts Amount of Deposit [Rs.'lakh]

31 Mar 13 31 Mar 14

31 Mar 15 Growth(%) Share(%

) 31 Mar 13 31 Mar 14 31 Mar 15 Growth(%) Share(%)

Commercial Banks N.A. N.A. N.A. N.A. N.A. 640623.38 651853.00 763567.81 17.14 93.50

Regional Rural Bank N.A. N.A. N.A. N.A. N.A. 6231.42 7257.00 6268.80 -13.62 0.77

Cooperative Banks N.A. N.A. N.A. N.A. N.A. 40204.70 44165.00 46802.81 5.97 5.73

Other agencies N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.

All Agencies N.A. N.A. N.A. N.A. N.A. 687059.50 703275.00 816639.42 16.12 100.00

3. LOANS & ADVANCES OUTSTANDING

Agency No. of accounts Amount of Loan [Rs.'lakh]

31 Mar 13 31 Mar

14 31 Mar

15 Growth(%) Share(%

) 31 Mar 13 31 Mar 14 31 Mar 15 Growth(

%) Share(%)

Commercial Banks N.A. N.A. N.A. N.A. N.A. 179450.27 213303.09 219894.08 3.09 96.88

Regional Rural Bank N.A. N.A. N.A. N.A. N.A. 1872.09 2437.19 2153.02 -11.66 0.95

Cooperative Banks N.A. N.A. N.A. N.A. N.A. 18015.84 21406.83 25091.89 17.21 11.06

Other agencies N.A. N.A. N.A. N.A. N.A.

All Agencies N.A. N.A. N.A. N.A. N.A. 199338.20 237147.11 247138.99 4.21 108.89

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

Agency CD Ratio

Agency During 2014-15 Cumulative

31 Mar 13 31 Mar 14

31 Mar 15

Deposit Credit Deposit Credit

Commercial Banks 28.01 32.72 28.80 Commercial Banks 31755 N.A. 31755 N.A.

Regional Rural Bank 30.04 33.58 34.35 Regional Rural Bank 2143 N.A. 2143 N.A.

Cooperative Banks 44.81 48.47 53.61 Cooperative Banks 7163 N.A. 7163 N.A.

Other agencies Other agencies

All Agencies 29.01 33.72 30.26 All Agencies 41061 N.A. 41061 N.A.

6. PERFORMANCE TO FULFILL NATIONAL GOALS - loans outstanding as on 31/03/2015) 29



6. PERFORMANCE TO FULFILL NATIONAL GOALS - loans outstanding as on 31/03/2015)

Agency

Priority Sector Loans Loans to Agr. Sector Loans to Weaker Sections

Loans under DRI Scheme Loans to Women

Amount [Rs.'lakh] % of Total

Loans


Loans

Amount [Rs.'lakh

]

% of Total Loans


Loans


Loans

Commercial Banks 27603.47 86.69 7140.32 74.97 29480.0

0 96.40 330.59 100.00 9948.06 95.69

Regional Rural Bank 413.19 1.30 83.99 0.88 604.69 1.98 0 0 211.87 2.04

Cooperative Banks 3825.40 12.01 2300.18 24.15 494.68 1.62 0 0 235.90 2.27

Other agencies

All Agencies 31842.06 100.00 9524.49 100.00 30579.3

7 100.00 330.59 100.00 10395.8

3 100.00

7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

Agency

2012-13 2013-14 2014-15 Average Ach[%] Target

[Rs.'lakh] Ach'ment [Rs. 'lakh]

Ach'ment [%]

Target [Rs.'lakh]

Ach'ment [Rs. 'lakh]

Ach'ment [%]

Target [Rs.'lakh]


Ach'ment [%]

Commercial Banks 38950.00 21955.35 56.37 50774.00 22659.4

8 44.63 53575.97 27603.47 51.52 50.84

Regional Rural Bank 1315.00 542.89 41.28 1820.00 967.75 53.17 1635.52 413.19 25.26 39.91

Cooperative Banks 3085.00 1801.99 58.41 3391.00 2548.46 75.15 4211.96 3825.4 90.82 74.80

Other agencies

All Agencies 43350.00 24300.23 56.06 55985.00 26175.6

9 46.75 59423.45 31842.06 53.59 52.13

8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS

Broad Sector

2012-13 2013-14 2014-15 Average Ach[%] in

last 3 years

Target [Rs.'lakh]


Ach'ment [%]

Target [Rs.'lakh]


Ach'ment [%]

Target [Rs.'lakh]


Ach'ment [%]

Crop Loan N.A. N.A. N.A. 21700.00 6464.00 29.79 14503.91 5589.01 38.53 N.A.

Term Loan (Agr) N.A. N.A. N.A. 7500.00 1091.00 14.55 10989.58 3935.48 35.81 N.A.

Total Agri. Credit 25200.00 8368.65 33.21 29200.00 7555.00 25.87 25493.49 9524.49 37.36 32.15

Non-Farm Sector 6050.00 6650.61 109.93 9918.00 4589 46.27 13613.28 5985.05 43.96 66.72

Other Priority Sector 12100.00 9280.97 76.70 16867.00 14032 83.19 20316.68 16332.52 80.39 80.09

Total Priority Sector 43350.00 24300.23 56.06 55985.00 26176.0

0 46.76 59423.45 31842.06 53.59 52.13

9. RECOVERY POSITION

Agency

2012-13 2013-14 2014-15 Average Rec. [%] in

last 3 years

Demand [Rs. 'lakh]

Recovery [Rs. 'lakh]

Recovery [%]

Demand [Rs. 'lakh]

Recovery [Rs. 'lakh]

Recovery [%] Demand

[Rs. 'lakh] Recovery [Rs.

'lakh] Recover

y [%]

Commercial Banks 16683.61 5151.09 30.88 20236.31 6774.26 33.48 11558.19 4520.90 39.11 34.49

Regional Rural Bank 336.95 232.36 68.96 239.21 115.61 48.33 205.64 67.38 32.77 50.02

Cooperative Banks 1930.67 222.83 11.54 1015.05 439.92 43.34 1547.09 992.00 64.12 39.67

Other agencies

All Agencies 18951.23 5606.28 29.58 21490.57 7329.79 34.11 13310.92 5580.28 41.92 35.20

Sources : SLBC 31 March 2015

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Documents

STATE FOCUS PAPER – 2016-17 NAGALAND EXECUTIVE … · current year’s projection. State Profile 0.3 Nagaland, the sixteenth state of the Indian Union, covers a geographical area