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					                                                          PLP 2006-07 - Nagaon, Assam

                Summary of Broad Sector-wise PLP Projections
                            for the year 2006-07
                                                                         (Rs. lakh)

 Sl.No.                     Broad Sector                          Financial

   1       CROP PRODUCTION                                          1824.25

   2       TERM INVESTMENT FOR AGRICULTURE AND                      2701.33

           UNDER AGRICULTURE AND ALLIED ACTIVITIES                  4525.58
           ( 1+2 )

   4       NON FARM SECTOR                                          2400.00

   5       OTHER PRIORITY SECTOR                                    3000.00

           TOTAL PRIORITY SECTOR ( 3+4+5 )                          9925.58

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                                                                 PLP 2006-07 - Nagaon, Assam



District : Nagaon
                                                                             ( Rs. lakh )
                              Sector                                      PLP
Crop Loans                                                                1824.25

Minor Irrigation                                                           145.50

Land Development                                                             91.80

Farm Mechanisation                                                         917.50

Plantation and Horticulture                                                277.05

Sericulture                                                                  10.93

Forestry and Waste Land Development                                          45.50

Dairy Development                                                          339.80

Poultry Development                                                        237.10

Sheep, Goat and Pig rearing                                                159.15

Fisheries Development                                                        93.50

Renewable Sources of Energy & Waste Utilisation                              21.00

Storage Godown / Market Yard                                               265.00

Other Agrl. and Allied                                                       97.50

Total Term Loans (Agriculture )                                           2701.33

Total Agricultural Credit
(Term Loans and Crop Loan)                                                4525.58

Non-Farm Sector                                                           2400.00

Other Priority Sector (OPS)                                               3000.00

Grand Total                                                              9925.58

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                                                                       PLP 2006-07 - Nagaon, Assam

                                       CHAPTER - I


Credit Planning in India received focussed attention in development planning after
introduction of the scheme of Social Control over banks in 1967 and nationalisation of
14 major commercial banks in 1969. Adoption of area approach and introduction of
Lead Bank Scheme       in the beginning of Seventies was the first attempt             towards
decentralised credit planning with district as a unit of planning. Districts were
allocated to individual commercial banks which were to act as pace setters in the
designated districts in providing integrated banking facilities. Under the Lead Bank
Scheme, the designated bank was to prepare District Credit Plans (DCPs) in
consultation and coordination with other banks and Government functionaries
operating in the respective districts. Although the District Credit Plans (DCPs)
underwent several changes over the period, these plans, however, did not focus on the
potential existing at the ground level and the absorption capacity.

In the year 1988-89, NABARD took the initiative to prepare district-wise credit plan
exhibiting sector wise potential for agriculture and rural sector with a view to make
further improvement in district credit planning. These were named as Potential Linked
Credit Plans (PLPs). The basic objective of the PLP is to map the existing potentials for
development and evolve an appropriate mechanism through which such potentials could
be harnessed over a specified time frame. The PLP document attempts at making
projections of the credit requirements for different sectors in a district taking into account
the existing physical potential, availability of infrastructure, marketing support,
absorption capacity and other strengths & weaknesses of the rural credit delivery system.
These plans aim at reflecting, in a more realistic way, the micro or local needs, potentials
and linkages associated with various development agencies operating in the district. PLP,
thus, depicts the potential for harnessing human and natural resource endowments both
over a short and long term period and attempts to facilitate improving capital efficiency
while providing meaningful directions to the flow of ground level credit.

The broad strategy for formulation of PLPs envisages estimation of long term potentials (in
terms of physical units) duly phased out over annual duration in each sub sector of
agriculture and rural development taking into account the natural and human resource
endowments.     The approach adopted for preparation of PLPs focuses on bottom-up
planning process. The potentials are first estimated block-wise and then aggregated to
form the PLP for the district as a whole. For the purpose of translating the potentials into
credit plans, the infrastructure requirements are identified and compared with the
currently available infrastructure. The requirement of infrastructure         support is also
assessed on the basis of various developmental schemes / programmes being run or
proposed by Central Government / State Government / Local Bodies, etc. in the districts.
The past trends of investment made in district, Sub-Sectors, their relative growth rates,
capabilities and constraints in implementation, etc. were also kept in view while phasing

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                                                                      PLP 2006-07 - Nagaon, Assam

the identified potentials. NABARD has been constantly endeavouring to introduce
refinement in the methodology of preparing PLPs and making improvement in its
contents so that the PLP could be used as an essential support / reference document to
the District Credit Plans. For the purpose, the process has been made more consultative
and broad based for better feedback. Pre -PLP discussions are held with the nodal
departments, Govt. officials, Bankers, Non Governmental Agencies/VAs, development
agencies and all concerned. The policies, priorities and thrust areas declared by the
Govt. of India and the State Govt. are also taken into consideration.

In the Base PLPs detailed potential analysis is done once in every five years
co-terminating with the National Five Year Plans and thereafter refinements are made
every year. Base PLP projections are updated annually under Annual PLPs to bring out
the required revisions /modifications in tune with the changing times and necessities.
In the Base PLPs, first of all sector wise Long Term Potential is assessed and then
compared with the existing infrastructure to arrive at the Exploitable Potential in the
next five years. Keeping in view the availability and gaps in infrastructure and support
services, annual phasing of exploitable potential is attempted.

RBI, in its mid-term review of annual policy statement for the year 2004-05, has
dispensed with the restrictive provision of Service Area Approach (SAA) scheme.
However, the positive feature of SAA such as credit planning and monitoring of the
credit purveyance has been retained. accordingly, the allocation of villages among the
rural and semi-urban branches of banks shall not be applicable for lending, except
under Government sponsored schemes. The commercial banks and RRBs are free to lend
in any rural and semi-urban area, the borrowers have the choice of approaching any
branch for their credit requirements. The requirement of obtaining 'no due certificate' from
the service branch for lending by non-service area branch has been dispensed with.
Further, the Annual Credit Plan/District Credit Plan will be based on the Potential Linked
Plans (PLPs) prepared by NABARD.

Taking into consideration the revised guidelines issued by RBI, NABARD also changed its
methodology for preparation of PLPs. The NABARD discussed the modalities for preparing
the credit plans with select Commercial Banks to make the planning exercise more
participative ensuring active involvement of Branch Managers, Controlling Offices and
Government Departments at the district level. Taking into account the views that emerged
during the consultation,     pre-PLP meetings are to be convened by LDMs during
August/September to be attended by the banks, Government agencies etc. to reflect their
views and concerns regarding credit potential (sector/activity-wise) and deliberate on
major financial and socio-economic developments in the district in the last one year and
priorities to be set out for inclusion in the PLP. PLPs, containing block-wise/activity-wise
potential, are be placed before a Special meeting of the District Consultative Committee
(DCC) for detailed discussion prior to finalizing an implementable District Credit Plan. The
Controlling Offices of Commercial Banks and Head Office of RRB and DCCB/LDB have

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