PLP 2019-20

DANG

संभाव्यतायुक्त ऋण योजना
POTENTIAL LINKED CREDIT PLAN

2019 - 20

जजला : डांग
DISTRICT: DANG

STATE: GUJARAT

गााँव बढ़े तो >> दे श बढ़े

Taking Rural India >> Forward

राष्ट्रीय कृषि और ग्रामीण षवकास बैंक

गज
ु रात क्षेत्रीय कायाालय, अहमदाबाद

National Bank for Agriculture and Rural

Development
Gujarat Regional Office, Ahmedabad
 PLP 2019-20
DANG

प्राक्कथन FOREWORD

नाबार्ड हर वर्ड राज्य के सभी जिल ों के जलए सों भाव्यतायु क्त Potential Linked Credit Plan (PLP) being
prepared by NABARD annually for all the
ऋण य िनाएँ (पीएलपी) तै यार करता है । इन पीएलपी में
districts of the State is a critical document which
जिले की जवजभन्न गजतजवजिय ों में जनजहत ऋण सों भावनाओों का assesses the exploitable credit potential for
आकलन जकया िाता है । यह आकलन केंद्र और राज्य various sectors in the district, keeping in view, the
priorities spelt out by the Central and State
सरकार ों की प्राथजमकताओों क ध्यान में रखते हुए तै यार
Governments.
जकया िाता है ।
NABARD has now finalized the Potential Linked
नाबार्ड ने राज्य के सभी जिल ों के जलए वर्ड 2019-20 की Credit Plans (PLPs) for all the districts in the
सों भाव्यतायु क्त ऋण य िनाएँ (पीएलपी) तै यार कर ली हैं । State for the year 2019-20.
पीएलपी 2019-20 में वर्ड 2022 तक जकसान ों की आय Doubling of farmers’ income by the year 2022,
दु गुनी करना, पानी का उजित उपय ग, सतत जवकास और optimum utilization of water, sustainable
development and renewable energy are our focus
नवीकरणीय ऊिाड पर जवशेर् ध्यान जदया गया है ।
areas for PLP 2019-20.
हमें यह बताते हुए प्रसन्नता है जक इस वर्ड पीएलपी क नया
We are glad to share that this year the PLP has
स्वरूप दे ते हुए इसे पहले से अजिक पठनीय बनाया गया है । been structurally re-designed with a view to make
कुछ अध्याय ों की रूपरे खा जिर से तै यार की गई है िबजक it a more user-friendly document. While certain
कुछ सू िनाप्रद अध्याय, जिनमें ऋण सों भावनाओों का उल्लेख chapters have been regrouped, other informative
chapters, not containing credit potentials, have
नही ों ह ता है , की जलोंक पीएलपी में दे ते हुए उन्हें नाबार्ड been placed on NABARD website with necessary
वे बसाइट पर उपलब्ध कराया गया है । उद्दे श्य यह है जक link/reference given in the PLP. The intention is
that PLP must contain credit potential of all
प्राथजमकता क्षे त्र की सभी गजतजवजिय ों की ऋण सों भावनाओों
categories included in Priority Sector and at the
क पीएलपी में स्थान जमले, साथ ही, यह दस्तावे ज़ बहुत बडा same time it should not be a bulky document.
न बन िाए।
It may be mentioned that the estimates made in
यहाँ उल्लेख करना उजित ह गा जक पीएलपी में जदए गए
the PLPs are essentially the exploitable credit
आकलन वस्तु तः जवजभन्न क्षे त्र ों में जनजहत साकार की िा सकने potential for various sectors, keeping in view the
वाली सों भावनाएँ हैं । जिले में उपलब्ध प्राकृजतक सम्पदा, natural endowments of the district, the
infrastructure and linkages available, etc. The
बु जनयादी सु जविाओों और जलोंकेि आजद के आिार पर ऋण
potentials have been assessed in consultation
की सों भावनाओों का आकलन जकया गया है । ये आकलन केंद्र with the bankers and line departments of the
और राज्य सरकार ों की प्राथजमकताओों, साथ ही जज़ले की district, keeping in view the priorities spelt out by
the Central and State Governments and tempered
जपछली उपलब्धब्धय ों क ध्यान में रखते हुए सों बोंजित by the past performance in the districts.
जहतिारक ों से ििाड करते हुए तै यार जकए गए हैं ।
हमें आशा है जक जिले के ऋण सों स्थान वर्ड 2019-20 के We expect the Credit Institutions in the district to
draw up their credit plans for 2019-20 taking
जलए अपनी ऋण य िनाएँ तै यार करते समय पीएलपी में cognizance of the potential assessed in the PLP
आकजलत ऋण सों भावनाओों क ध्यान में रखेंगे और जिले के and contribute meaningfully towards the
समावे शी जवकास में अपना साथडक य गदान सु जनजित करें गे । inclusive development of the district.
पीएलपी तै यार करने में सहय ग के जलए हम जिला प्रशासन, We are thankful to the District Administration,
बैं कर ,ों एलर्ीएम, एलर्ीओ और जवकास-कायों में सहय ग Bankers, LDM, LDO and all our Development
दे ने वाले सभी साजथय ों के आभारी हैं । हमें आशा है जक Partners in the district for giving their valuable
inputs to us in preparation of the PLP and we
जवकास के अपने प्रयास ों में हम सबके साथ समन्वय करते hope to continue this synergistic approach in our
हुए आगे बढें गे। development efforts.

(सुनील चावला)
(Sunil Chawla)
मु ख्य महाप्रबं धक Chief General Manager
 PLP 2019-20
DANG

POTENTIAL LINKED CREDIT PLAN FOR 2019-20

INDEX
Chapter No. Topic Page Nos.
Foreword
Index
Executive Summary i
iv
Sector / Sub Sector wise Projection –2019-20 (Appendix A & B)
District Profile along with the map of the District vii
Banking Profile ix
Methodology of Preparation of Potential linked Credit Plans xi
(PLPs)
1 Important Policies and Developments 1
2 Credit Potential for Agriculture
2.1 Farm Credit 11
2.1.1 Crop Production, Maintenance and Marketing 11
2.1.2 Water Resources 14
2.1.3 Farm Mechanization 17
2.1.4 Plantation and Horticulture including Sericulture 19
2.1.5 Forestry and Waste Land Development 21
2.1.6 Animal Husbandry - Dairy 23
2.1.7 Animal Husbandry – Poultry 25
2.1.8 Animal Husbandry – Sheep, Goat, Piggery, etc. 27
2.1.9 Fisheries 28
2.1.10 Farm Credit- Others 29
2.2 Agriculture Infrastructure
Construction of storage and Marketing Infrastructure 31
2.2.1 (warehouses/godowns, market yards, silos, cold storage units/
cold chains)
Land Development, Soil Conservation and Watershed 33
2.2.2
Development
Agri. Infrastructure-Others
 Tissue culture,
 Agri. bio-technology, 36
2.2.3
 Seed production,
 Bio-pesticides/ fertilizer
 Vermi- composting
2.3 Agriculture - Ancillary Activities
2.3.1 Food and Agro Processing 38
Agri Ancillary Activities- Others
 Loans to Coop. Societies of farmers for disposing of their
produce, 40
2.3.2
 Agri-clinic/ Agri-Business Centers (ACABC),
 Loans to PACS/ FSS/ LAMPS,
 Loans to MFIs for on-lending
Credit Potential for Micro, Small and Medium 43
Enterprises (MSME)
3
A. Term Loans
(i) Manufacturing sector enterprises
(ii) Service sector enterprises
B. Working Capital
 PLP 2019-20
DANG
(i) Manufacturing sector enterprises
(ii) Service sector enterprises
Credit Potential for Export Credit, Education and 48
4
Housing
5 Infrastructure Support
5.1 Infrastructure – Public investments 52
5.2 Social Infrastructure involving bank credit
5.3 Renewable Energy
6 Informal Credit Delivery System 59
Annexure I Activity-wise & Block-wise Physical and Financial Projections- 62
2019-20
Annexure II An overview of Ground Level Credit Flow – Agency-wise and 68
Sector-wise – 2015-16 , 2016-17, 2017-18 and target for 2018-19
Annexure III Sub-sector-wise and Agency-wise Credit Flow under Agriculture 69
and allied activities – 2015-16 , 2016-17, 2017-18 and target for
2018-19
Annexure IV Indicative unit costs (for major activities of the district) as arrived 70
at by NABARD for its internal use.
Annexure V Scale of Finance for major crops fixed by District Level Technical 71
Committee (DLTC) for 2018-19
 PLP 2019-20
DANG
EXECUTIVE SUMMARY

A. Introduction

Dang is one of the districts located in South Gujarat Region of Gujarat. The geographical area of Dang
district is 1764 sq. Kms and, as per 2011 Census, the total population is 2.28 lakh of which, 89% is rural.
The annual rainfall during 2017 was 5739 mm. The economy of Dang district is predominantly agrarian.
The total land holdings number 11197 comprised in an aggregate farm area of 57843 ha.. About 94% of
land holdings are with big farmers and the average size of the holdings is 5.17 Ha. The major crops are
Paddy, Nagli, Jowar, Gram, Groundnut, Tur and horticulture. The other crops cultivated are sugarcane,
spices, strawberry, other millets, etc. The irrigation facilities in the district are mainly from the four
rivers, viz., Ambika, Khapri, Purna and Gira. The reserved forests in the Dang are amongst the richest
forest in the whole of Gujarat. Around 59% of the total area is covered under forest. However, the district
is industrially backward.

Sectoral Trends in Credit Flow for last 3 years and the Performance under District
Credit Plan 2017-18

During the past three years, the district could not achieve the targets under all sectors. The sector-wise
annual targets and achievements during the past three years are given in the table below:
(₹ Lakh)
Broad 2015-16 2016-17 2017-18
Sector Target Achvmnt Target Achvmnt Target Achvmnt Achv
%
Crop Loan 3000.00 310.00 2000.00 867.00 2200.00 420.00 19.09
Term Loan 5500.00 799.00 2770.00 201.00 2770.00 321.00 11.59
(Agri)
Total Agri 8500.00 1109.00 4770.00 1068.00 4970.00 741.00 14.90
Credit
Non-farm 150.00 116.00 229.00 12.00 229.00 407.00 178.0
Sector 0
Other 1350.00 370.00 1001.00 432.00 1181.00 264.00 22.35
Priority
Sector
Total 10000.00 1595.00 6000.00 1512.00 6380.00 1412.00 22.13
Priority
Sector

Sector-wise vis-à-vis agency-wise flow of Ground Level Credit (GLC) under Priority Sector during the
past three years are indicated in Annexure II. Sub-Sector-wise and Agency-wise, Ground Level Credit
(GLC) Flow to Agriculture and Allied Sectors during last three years are indicated in Annexure III.
The Potential Linked Credit Plan (PLP) for 2019-20 has been prepared aligning with the revised RBI
Guidelines on Priority Sector Lending. It estimates a credit flow of ₹13007.86 lakh of which, Crop
Production sector has a major share of 36.84% at ₹ 4791.95 lakh. Term-loan under agriculture is
assessed at ₹4161.11 lakh, accounting for about 46.47% of Total Agriculture and 31.99% of Total Priority
Sector. Under MSME, ₹450.90 lakh has been assessed as the potential forming 3.46% of Priority Sector
and balance of ₹ 3603.92 lakh has been estimated for other sectors like Education, Housing, Renewable
Energy, Others and Social Infrastructure. The activity-wise and block-wise assessment of potential is
presented in Annexure-I.

The PLP projection for 2019-20 is higher by ₹ 1429.98 lakh when compared to the PLP for the year
2018-19, representing an increase of 12.35%. The PLP projection has been assessed taking into
consideration availability of Infrastructure for exploiting the potential, capacity of the line department
to provide extension support, infrastructure likely to be created in the district, etc.

Suggested action Points in respect of major sectors and infrastructure/non-credit inputs are as under:

i
 PLP 2019-20
DANG

B. Sector-wise Comments on Major Sectors

1. Crop Production, Maintenance and Marketing

a) By adopting High-Yielding Variety and new crops, the production can be increased. For meeting the
challenges of credit support, Commercial Banks, Cooperative Banks, and RRB have to ensure that
their service area plans are implemented.
b) Banks may adopt RuPay KCC as an effective credit delivery mechanism and, besides ensuring
coverage of all loanee-farmers, educate the non-loanee farmers as well to subscribe to PMFBY.

2. Farm Mechanization

a) The implements like rotavators may be popularized. Agri entrepreneurs, farm graduates and
progressive farmers may be encouraged to provide implements & tools, machinery, tractors and
other farm implements on custom-hire basis through banking plan.
b) NABARD has been permitting all banks to claim refinance even in respect of financing of second-
hand tractors, subject to certain terms and conditions. This policy is certain to increase the pace of
farm mechanization in the hinterland. Banks should create widespread awareness among the
farming community at branch levels about this relaxation through Farmers’ Meets/Farmers’ Clubs.
c) Banks may increasingly adopt the strategy of JLG financing to ensure availability of farm
machineries and equipment to SF/MF.

3. Plantation and Horticulture

a) Financial Institutions may focus on financing for setting up of Agri-Clinics & Agri-Business Centres,
soil and water testing laboratories, pest diagnostic and control services, custom-hiring of
agricultural implements, setting up of apiaries, vermi-compost units, tissue culture labs, etc.
b) Banks may popularize as well as provide adequate credit for horticulture and floriculture projects
in the district.
c) Banks may, in consultation with the Horticulture Department, prepare area-based schemes/
banking plans and implement project-based lending for beneficiaries under Schematic Approach.

4. Animal Husbandry

a) Banks may also encourage farmers to take up calf rearing and fodder cultivation as viable activities
with financial assistance.
b) Intensive cross-breeding programme may be undertaken so that better quality animals would be
available at the local level.
c) The AH Dept. may arrange awareness camps to educate the farmers on health and maintenance of
cattle

C. Highlights of Developments, Initiatives Taken, Achievements, Specific Prescriptions,

etc. by NABARD

 Adivasi Development Programme Gujarat – is being implementing through DHRUVA in Dang

district covering 5900 beneficiaries in Wadi Model.
 Grant assistance for implementation of Pilot Project on Systematic Rice Intensification (SRI)
programme to increase the production of rice.
 Conduct of various Financial Inclusion Awareness Programmes in the district.
 Financial Support to State Governments for creation of infrastructure such as Roads, Check Dams,
Anganwadi, CHC/PHCs, Irrigation facilities, etc.
 For giving thrust to the identified sectors/activities by enhancing term-loan disbursements through
a banking plan, implementation of area-based scheme/s has been suggested as a coordinated effort
of NABARD, Lead Bank, other banks, line departments and other important stakeholders.

ii
 PLP 2019-20
DANG
 For ensuring effective price protection to the farmer, National Agricultural Market is being
advocated by NABARD.
 Several initiatives taken under Rural Housing, Rural Sanitation, Rural Tourism, Skill India,
Standup India, Judicious use of water, etc.

D. Thrust Areas for 2019-20 such as Doubling of Farmers’ Income, JLG/SHG financing, post–
harvest infrastructure, food processing, Producer Organizations, etc.

E. Conclusion

The major driver of private sector capital formation is investment credit. Immediate thrust is required
to raise its share in the total agriculture credit. This document, therefore, has been prepared with
emphasis on accelerating the pace of capital formation in agriculture and allied sectors. This goal can
be achieved with the coordinated efforts of all the stakeholders.

iii
 PLP 2019-20
DANG
Appendix – A

Broad Sector wise PLP Projection 2019-20

(₹ Lakh)
PLP
Sr. No. Particulars Projection
2019-20
A Farm Credit
i Crop Production, Maintenance and Marketing 4791.95
ii Term Loan for agriculture and Allied Activities 4161.11
Sub Total 8953.06

B Agriculture Infrastructure 1373.40

C Ancillary activities 211.57
I Credit Potential for Agriculture (A+B+C) 10538.02
II Micro, Small and Medium Enterprises 450.90
III Export Credit 0.00
IV Education 42.50
V Housing 215.48
VI Renewable Energy 56.09
VII Others 1400.00
VIII Social Infrastructure involving Bank Credit 304.88
Total Priority Sector (I to VIII) 13007.86

Broad Sector-wise projection for 2019-20

215.48, 2% 56.09, 0% 304.88, 2%

42.50, 0%
1400.00, 11%
0.00, 0%
450.90, 3% 4791.95, 37%

211.57, 2% 1373.40, 11%

4161.11, 32%

Crop Production, Maintenance and Marketing Term Loan for agriculture and allied activities
Agriculture Infrastructure Ancillary activities
Micro, Small and Medium Enterprises Export Credit
Education Housing
Renewable Energy Others
Social Infrastructure involving bank credit

iv
 PLP 2019-20
DANG
Appendix – B
Summary of Sector / Sub-sector wise PLP Projection 2019-20
(₹ Lakh )
Sr. No. Particulars PLP Projection
2019-20
I Credit Potential for Agriculture
A Farm Credit
i Crop Production, Maintenance and Marketing 4791.95
ii Water Resources 334.35
iii Farm Mechanisation 906.21
iv Plantation and Horticulture (including Sericulture) 1031.62
v Forestry and Waste Land Development 188.28
vi Animal Husbandry – Dairy 1097.28
vii Animal Husbandry – Poultry 240.30
viii Animal Husbandry – Sheep, Goat, Piggery, etc. 60.75
ix Fisheries (Marine, Inland, Brackish water) 85.00
x Others – Bullock, Green Kisan Card 217.33
Sub Total 8953.06
B Agriculture Infrastructure
i Construction of storage facilities (Warehouses, Market yards, 866.25
Godowns, Silos, Cold storage units/ Cold storage chains)

ii Land development, Soil conservation, Watershed 377.55

development
iii Others (Tissue culture, Agri bio-technology, Seed production, 129.60
Bio pesticides/ fertilizers, Vermin composting)
Sub Total 1373.40
C Ancillary Activities
Food and Agro processing 181.57
Others (Loans to Cooperative Societies of farmers for disposing of 30.00
their produce, Agri-Clinics/ Agri-Business Centres, Loans to
PACS/FSS/LAMPS, Loans to MFIs for on-lending)
Sub Total 211.57
Total Agriculture 10538.02
II Micro, Small and Medium Enterprises
i MSME – Working Capital 62.56
ii MSME – Investment Credit 388.33
Total MSME 450.90
III Export Credit 0.00
IV Education 42.50
V Housing 215.48
VI Renewable Energy 56.09
VII Others (Loans to SHGs/ JLGs, loans to distressed persons to 1400.00
prepay non-institutional lenders, PMJDY, loans to state
sponsored organisations for SC/ST)
VIII Social Infrastructure involving bank credit 304.88
Total Priority Sector 13007.86

v
 PLP 2019-20
DANG
District Profile
District - Dangs State - Gujarat Division - Dangs
1. PHYSICAL & ADMINISTRATIVE FEATURES 2. SOIL & CLIMATE
Total Geographical Area (Sq.km) 1764
Agro-climatic Zone Gujarat Plains & Hills Region - Southern Hills
No. of Sub Divisions 3
No. of Blocks 3 Climate Semi Arid to Dry Sub-humid
No. of Villages (Inhabited) 311
Soil Type Shallow to moderate deep black
No. of Panchayats 70
3. LAND UTILISATION [Ha] 4. RAINFALL & GROUND WATER
Total Area Reported 172357 Normal 2015 2016 2017
Actual
Forest land 101690 Rainfall [in mm] 2713 1706 945 5739
Area Not Available for Cultivation 728 Variation from Normal (%) -37 -65 112
Permanent Pasture and Grazing Land 439 Availability of Ground Net annual recharge Net annual draft Balance
Land under Miscellaneous Tree Crops 4557 Water [Ham] 8196 1283 6286
Cultivable Wasteland 21 5. DISTRIBUTION OF LAND HOLDING
Current Fallow 389 Holding Area
Classification of Holding
Other Fallow 78 Nos. % to Total Ha. % to Total
Net Sown Area 57843 <= 1 Ha 1341 12 747 1
Total or Gross Cropped Area 84827 >1 to <=2 Ha 1669 15 2892 5
Area Cultivated More than Once 26984 >2 Ha 8187 73 54204 94
Cropping Inensity [GCA/NSA] % 147 Total 11197 100 57843 100
6. WORKERS PROFILE [in '000] 7. DEMOGRAPHIC PROFILE [in '000]
Cultivators 55 Category Total Male Female Rural Urban
Of the above, Small/Marginal Farmers 35 Population 228 114 94 204 24
Agricultural Labourers 22 Scheduled Caste 1 0.50 0.50 1
Workers engaged in Household Industries 1 Scheduled Tribe 175 88 87 175
Workers engaged in Allied Agro-activities Literate 140 77 64 122 19
Other workers 10 BPL 141
8. HOUSEHOLDS [in '000] 9. HOUSEHOLD AMENITIES [Nos. in '000 Households]
Total Households 60 Having brick/stone/concrete houses Having electricity supply 18
Rural Households 52 Having source of drinking water 38 Having independent toilets
BPL Households 35 Having access to banking services 14 Having radio/tv sets 13
10. VILLAGE-LEVEL INFRASTRUCTURE [Nos] 11. INFRASTRUCTURE RELATING TO HEALTH & SANITATION [Nos]
Villages Electrified 311 Anganwadis 435 Dispensaries
Villages having Agriculture Power Supply 311 Primary Health Centres 9 Hospitals 1
Villages having Post Offices 56 Primary Health Sub-Centres 47 Hospital Beds 242
Villages having Banking Facilities 7 12. INFRASTRUCTURE & SUPPORT SERVICES FOR AGRICULTURE
Villages having Primary Schools 419 Fertiliser/Seed/Pesticide Outlets [Nos] Agriculture Pumpsets[Nos] 1289
Villages having Primary Health Centres 9 Total N/P/K Consumption [MT] 95 Pumpsets Energised [Nos] 1289
Villages having Potable Water Supply 187 Certified Seeds Supplied [MT] Agro Service Centres [Nos] 2
Villages connected with Paved Approach Roads 247 Pesticides Consumed [MT] Soil Testing Centres [Nos] 1
13. IRRIGATION COVERAGE [Ha] Agriculture Tractors [Nos] 225 Plantation nurseries [Nos] 2
Total Area Available for Irrigation (NIA + Fallow) 57910 Power Tillers [Nos] 40 Farmers' Clubs [Nos] 61
Irrigation Potential Created Threshers/Cutters [Nos] Krishi Vigyan Kendras[Nos] 1
Net Irrigated Area(Total area irrigated at least once) 11803 14. INFRASTRUCTURE FOR STORAGE, TRANSPORT & MARKETING
Area irrigated by Canals / Channels/Check Dams 6140 Rural/Urban Mandi/Haat [Nos] Wholesale Market [Nos] 1
Area irrigated by Wells 318 Length of Pucca Road [Km] 1210 Godown [Nos] 3
Area irrigated by Tanks/Ponds 2682 Length of Railway Line [Km] 30 Godown Capacity[MT] 690
Area irrigated by Other Sources (Lift Irr+DRIP) 2663 Public Transport Vehicle [Nos] Cold Storage [Nos]
Irrigation Potential Utilized (Gross Irrigated Area) 11803 Goods Transport Vehicle [Nos] Cold Store Capacity[MT]
15. AGRO-PROCESSING UNITS 16. AREA, PRODUCTION & YIELD OF MAJOR CROPS
Type of Processing Activity No of units Cap.[MT] 2016-17 2017-18
Avg. Yield
Food Crop
Area (Ha) Prod. (MT) Area (Ha) Prod. (MT) [Kg/Ha]
(Rice/Flour/Dal/Oil/Tea/Coffee)
Sugarcane (Gur/Khandsari/Sugar) Paddy 20588 66808 20620 66912 3245
Fruit (Pulp/Juice/Fruit drink) Nagli 7575 7121 8325 7826 940
Spices (Masala Powders/Pastes) Jowar 1743 1227 1756 1238 704
Dry-fruit (Cashew/Almond/Raisins) 1 50 Groundnut 2755 3141 2813 3207 1140
Cotton (Ginnining/Spinning/Weaving) Tuwer 2963 3615 2972 3626 1220
Milk (Chilling/Cooling/Processing) 2 51 Mango 4905 29430 5102 30115 5950
Meat (Chicken/Motton/Pork/Dryfish) Cashew 1315 4642 1384 6903 4278
Animal feed (Cattle/Poultry/Fishmeal)
17. ANIMAL POPULATION AS PER CENSUS 2012 [in '000] 18. INFRASTRUCTURE FOR DEVELOPMENT OF ALLIED ACTIVITIES
Category of animal Total Male Female Veterinary Hospitals/Dispensaries [Nos] 17 Animal Markets [Nos] 1
Cattle - Cross bred 10 2 8 Disease Diagnostic Centres [Nos] Milk Collection Centres [Nos] 3
Cattle - Indigenous 68 46 22 Artificial Insemination Centers [Nos] 45 Fishermen Societies [Nos]
Buffaloes 25 20 5 Animal Breeding Farms [Nos] Fish seed farms [Nos]
Sheep - Cross bred Animal Husbandry Tng Centres [Nos] 1 Fish Markets [Nos]
Sheep - Indigenous Dairy Cooperative Societies [Nos] 144 Poultry hatcheries [Nos]
Goat 29 7 22 Improved Fodder Farms [Nos] Slaughter houses [Nos]
Pig - Cross bred 19. MILK, FISH, EGG PRODUCTION & THEIR PER CAPITA AVAILABILITY
Pig - Indigenous Fish Production [MT] Per cap avail. [gm/day]
Horse/Donkey/Camel Egg Production [Lakh Nos] 60 Per cap avail. [nos/p.a.] 30
Poultry - Cross bred Milk Production ['000 MT] 25 Per cap avail. [gm/day] 230
193
Poultry - Indigenous Meat Production [MT] 101 Per cap avail. [gm/day]

Item Nos. 1, 6, 7, 9 & 10 - Census 2011; Item Nos. 2, 3, 5, 12, 13 & 14 - Dept. of Agr/Dir. of Eco. & Stat.; Item No. 4 - Dept. of Agr./Water Resources; Item No. 8 -
Sources (if not mentioned
Census 2011; Item No. 15 - District Ind Centre/Dir. of Eco. & Stat.; Item No. 16 - DACNET; Item No. 17 - AH Census 2012; Item Nos. 18 & 19 - Dir. of Animal
against the respective item):
Hus./Dir. of Eco. & Stat.

vi
 PLP 2019-20
DANG
DISTRICT PROFILE

Special Economic Activities in the District

(a) Agriculture and its allied activities like Dairy Development, Plantation and Horticulture and Non-
farm Sector activities are the predominant economic activities in the district. 52% of the total population
is engaged in farming and 48% is engaged in other activities.

(b) Major crops grown in the district are Paddy, Jowar, millets like Nagli / Vari, Pulses like Tur, Udad,
Oil seeds, Khursani and Fruits like Mango. Vegetables are also important crops and contribute fairly to
the District’s economy.

(c) South Gujarat is considered as the “Horticulture Hub” and is famous for, among others, its Kesar
mango. Besides Kesar, other major varieties grown in the District are Rajapuri and Totapari. Around
50% of the farmers are known to be using a part of their land for “Wadi” where mainly mango and
cashew trees are planted.

During 2017-18, the district produced 30115 MT of mangos from an area of 5102 ha. There are two
Government Nurseries in the District, besides a few private nurseries. Department-registered Nurseries
as also a large number of women SHGs under BAIF produce a large quantity of quality grafts. KVK at
Waghai provides suitable training to the interested farmers in commercial cultivation of agro-horti
crops, including mango. Out of the total production, about 95% is pooled and marketed by the
Processing Centers in the neighbouring districts of Valsad & Navsari. There are no processing centres
in the district. The nearest processing centre is at Lachhakadi in Navsari district.

(d) The district is known for its forest produce like Bamboo, Gum, Medicinal Herbs, Teak wood, etc.
There is an Ayurvedic Pharmacy run by Gujarat Forest Development Corporation. The main forest
produce are teak wood, fire wood, charcoal and timber wood. Other minor products are bamboo, grass,
mahuva flowers and its seeds, gum and variety of medicinal herbs and plants.

(e) Government of India (Ministry of Panchayati Raj) has announced Backward Regions Grant Fund
(BRGF) which is designed to redress regional imbalances in development. The Fund provides financial
resources for supplementing and converging existing developmental inflows into identified districts.
Dang is an identified district under the scheme. The works undertaken under BRGF in the District,
covering 69 villages, include land leveling, diesel engine pump sets, community wells, drinking water
facilities in schools, etc.
(f) There are 2 independent and 68 cluster (for group of small villages) Gram Panchayats (total 70)
for 311 villages in the district. Presently, most of the Panchayats are represented by only a Gram
Sarpanch and an Administratively Secretary (Talati).
(g) Various State/Central Government schemes/programmes are implemented at village levels through
PRI (Taluka/Zilla). The Zilla Panchayat provides funds to Gram Panchayat for these projects. Funds
are given to Gram Panchayat for implementation of DRDA projects. All programmes/Schemes are
implemented with the help of grant received on the basis of allocation made by District Panchayat/State
Government.

vii
 PLP 2019-20
DANG

viii
 PLP 2019-20
DANG
Banking Profile
District - DANGS State - Gujarat Lead Bank - Bank of Baroda
1. NETWORK & OUTREACH (As on 31/03/2017)
No. of non-formal agencies
No. of Branches Per Branch Outreach
No. of assoiated
Agency
Banks/Soc. Semi- mFIs/mFO SHGs/JLG
Total Rural Urban BCs/BFs Villages Households
urban s s
Commercial Banks 6 10 4 6 2396 53 31 3847
Regional Rural Bank 1 4 3 1 1529 17 78 9618
District Central Coop. Bank 1 3 2 1 104 12824
Coop. Agr. & Rural Dev. Bank 0
Primary Agr. Coop. Society 61 61 61 5 631
Others
All Agencies 69 78 70 8 0 0 3925 70 4 493
2. DEPOSITS OUTSTANDING
No. of Accounts Amount of Deposit [`'000]
Agency
31-Mar-16 31-Mar-17 31-Mar-18 Growth(%) Share(%) 31-Mar-16 31-Mar-17 31-Mar-18 Growth(%) Share(%)

Commercial Banks 196373 199291 215448 8.11 72 4875500 4911200 5259600 7.09 82
Regional Rural Bank 40921 47962 72343 50.83 24 620600 695200 751700 8.13 12
Cooperative Banks 9870 10969 11862 8.14 4 294300 352200 406500 15.42 6
Others 0 0
All Agencies 247164 258222 299653 16.04 100 5790400 5958600 6417800 7.71 100
3. LOANS & ADVANCES OUTSTANDING
No. of Accounts Amount of Loan [`'000]
Agency
31-Mar-16 31-Mar-17 31-Mar-18 Growth(%) Share(%) 31-Mar-16 31-Mar-17 31-Mar-18 Growth(%) Share(%)

Commercial Banks 6164 3150 3381 7.33 32 478900 489400 613700 25.40 67
Regional Rural Bank 5125 3884 6524 67.97 61 173600 148500 207800 39.93 23
Cooperative Banks 867 727 734 0.96 7 136200 127300 98400 -22.70 11
Others 0 0
All Agencies 12156 7761 10639 37.08 100 788700 765200 919900 20.22 100
4. CD-RATIO 5. PERFORMANCE UNDER FINANCIAL INCLUSION (No. of A/cs)
CD Ratio During 2017-18 Cumulative
Agency Agency
31-Mar-16 31-Mar-17 31-Mar-18 Deposit Credit Deposit Credit
Commercial Banks 9.82 9.96 11.66 Commercial Banks 16157 231 215448 3381
Regional Rural Bank 27.97 21.36 27.64 Regional Rural Bank 24381 2640 72343 6524
Cooperative Banks 46.28 36.14 24.21 Cooperative Banks 893 6 11862 734
Others Others
All Agencies 13.62 12.84 14.33 All Agencies 41431 2877 299653 10639
6. PERFORMANCE TO FULFILL NATIONAL GOALS (As on 31/03/2018)
Loans to Weaker Loans under DRI
Priority Sector Loans Loans to Agr. Sector Loans to Women
Sections Scheme
Agency Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total
[`'000] Loans [`'000] Loans [`'000] Loans [`'000] Loans [`'000] Loans
Commercial Banks 361300 64 191600 61 242900 57 NA NA 127400 70
Regional Rural Bank 133300 23 109600 35 114200 27 NA NA 42100 23
Cooperative Banks 72700 13 13900 4 68400 16 NA NA 13600 7
Others
All Agencies 567300 100 315100 100 425500 100 NA NA 183100 100
7. AGENCY-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS
2015-16 2016-17 2017-18 Average
Agency Target Ach'ment Ach'ment Target Ach'ment Ach'ment Target Ach'ment Ach'ment Ach[%] in
[`'000] [` '000] [%] [`'000] [` '000] [%] [`'000] [` '000] [%] last 3 years
Commercial Banks 659200 65900 10 386500 66000 17 404500 114500 28 17
Regional Rural Bank 193100 26100 14 127200 17100 13 137200 26300 19 15
Cooperative Banks 147700 67500 46 86300 68100 79 96300 400 0 41
Others
All Agencies 1000000 159500 16 600000 151200 25 638000 141200 22 20
8. SECTOR-WISE PERFORMANCE UNDER ANNUAL CREDIT PLANS
2015-16 2016-17 2017-18 Average
Broad Sector Target Ach'ment Ach'ment Target Ach'ment Ach'ment Target Ach'ment Ach'ment Ach[%] in
[`'000] [` '000] [%] [`'000] [` '000] [%] [`'000] [` '000] [%] last 3 years
Crop Loan 300000 31000 10 200000 86700 43 220000 42000 19 22
Term Loan (Agr) 550000 79900 15 277000 20100 7 277000 32100 12 12
Total Agri. Credit 850000 110900 13 477000 106800 22 497000 74100 15 16
Non-Farm Sector 15000 11600 77 22900 1200 5 22900 40700 178 88
Other Priority Sector 135000 37000 27 100100 43200 43 118100 26400 22 30
Total Priority Sector 1000000 159500 16 600000 151200 25 638000 141200 22 20
9. RECOVERY POSITION
2014-15 2015-16 2016-17 Average
Agency Demand [` Recovery Recovery Demand [` Recovery Recovery Demand [` Recovery Recovery Rec. [%] in
'000] [` '000] [%] '000] [` '000] [%] '000] [` '000] [%] last 3 years
Commercial Banks - - - - - - - - - -
Regional Rural Bank - - - - - - - - - -
Cooperative Banks - - - - - - - - - -
Others - - - - - - - - - -
All Agencies - - - - - - - - - -
Sources : Lead Bank & SLBC

ix
 PLP 2019-20
DANG
BANKING PROFILE

Bank and Branch Network

The branch network of banks in the district comprises a total of 17 branches of which, 10 are of
commercial banks, 3 of Valsad DCCB and 4 of Baroda-Gujarat Grameen Bank. Further, there are 61
Primary Agriculture Cooperative Societies in the District. 9 branches are rural and 8 branches are semi-
urban.

The Lead Bank of the Dang district is Bank of Baroda (BOB) having 2 branches.

The overall deposits of the banks in Dang district increased from ₹595.86 crore as on 31.3.2017 to
₹641.78 crore as on 31.3.2018, registering a growth of 7.71%.

The loans and advances of the banks decreased from ₹ 76.52 crore as on 31.3.2017 to ₹ 91.99 crore as
on 31.3.2018.

The CD Ratio stood at 14.33% as on 31.3.2018.

No credit agency in the district as a whole could achieve the national target of 60% in respect of C D
Ratio. Reasons that have contributed to this poor C D Ratio are low level of land-based agricultural
activity due to sloppy terrain resulting in low credit absorption capacity, absence of industrial activity,
continuous flow of Govt. funds under various subsidy-linked schemes, prevalence of culture of subsidy,
reluctance of the bankers to introduce innovation in credit delivery such as JLG mode of financing, etc.

Achievements against SACP targets was only 19% during 2017-18. The banks’ performance in
submission of LBRs was satisfactory.

Subir, Shamgahan and Gadhavi villages having population above 2000 are covered by satellite
branches and USB by BGGB and BOB respectively. There are 69 BCs covering 277 villages in the district.

There is one Financial Literacy Centre (FLC) and one RSETI sponsored by Bank of Baroda. Valsad
DCCB has only two branches in Dang District which is on CBS platform.

Kisan Credit Card (KCC) Scheme has been implemented by all the banks in the district. As at the end of
March 2018, 6307 farmers have been issued KCC. All banks have issued 65588 RuPay Debit Cards to
its beneficiaries.

Pradhan Mantri Jan-Dhan Yojana (PMJDY)

National Mission on Financial Inclusion, named as Pradhan Mantri Jan-Dhan Yojana (PMJDY), was
launched on 28th August 2014 in the district. Aim of the scheme is to cover all households with at least
one basic banking account with RuPay Debit Card having in-built accident insurance cover of ₹ 1 lakh.
Further, an overdraft facility up to ₹ 5,000/- (since increased to ₹ 10,000/-) will also be permitted to
Aadhaar-enabled accounts after satisfactory operation in the account for six months. Under PMJDY,
84623 Saving Accounts have been opened as on 31.3.2018.

All banks are implementing the GOI schemes such as Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti
Bima Yojana and Pradhan Mantri Suraksha Bima Yojana and have covered 1220, 7856 and 12365
beneficiaries under them respectively.

x
 PLP 2019-20
DANG

Methodology for Preparation of Potential Linked Credit Plans (PLPs)

Potential Linked Credit Plan is a comprehensive documentation of potentials in the district for rural
economic activities, both in physical and financial terms. It is also an assessment of the gaps in
infrastructure support which need to be filled in to fully exploit the realizable potentials.
Objectives of PLP
The objectives of PLP are:
 To enable various organizations involved in the process of rural development in directing their
efforts in a planned manner, in accordance with the potentials available for exploitation.
 To enable optimum utilization of scarce financial resources (especially bank credit) by
channelizing the same into sectors with growth potential.
 To assess the gaps in infrastructure support which need to be taken care of for exploiting the
potentials and prioritising resource requirement for the purpose.

Methodology
NABARD, in 1988-89, had taken the initiative of preparing PLPs for agriculture and rural development.
The broad strategy followed by NABARD for the formulation of PLPs envisages estimation of long-term
potential (in terms of physical units) in each sector of agriculture and rural development with reference
to the natural and human resource endowments and a phased annual programme for development,
keeping in view the relative national and State priorities. NABARD has been constantly endeavouring
to introduce refinements in the methodology of preparing PLPs and improvement of its contents so that
the PLPs could be used as support reference document for Annual Credit Plans of banks. NABARD has
been reviewing continuously the methodology in estimation of potential through consultative process
over the years. It adopts a detailed methodology for assessing the physical potential in major sectors of
investment activity conducive to development of agriculture and rural areas. The PLP writers – who are
District Development Managers of NABARD placed in most of the districts of the country – are
supported by a group of technical officers/experts in the Regional Offices and Head Office of NABARD.
The methodology consists of assessment of sector-wise/sub-sector-wise estimation of potential in
consultation with technical officers of the concerned line departments at the district level, identification
of infrastructure facilities required to support the exploitation of the potential, identification of
infrastructure facilities available at present as well as planned and working out the gap in infrastructure,
examination of the trends in sector-wise credit flow, various schemes of State/Central Govt. and
estimation of block-wise physical and financial credit potential.
The indicative unit costs suggested by the State-level Unit Cost Committee are made use of while
arriving at the total financial outlays.
The broad methodology of arriving at the potential for major sectors is given below.
Sr. No. Sector Methodology of Estimation of Credit Potential
1 Crop loans  Collection of data on Gross Cropped Area for a period of 10 years
and data on land holdings
 Distribution of Gross Cropped Area among Small
Farmers/Marginal Farmers and Other Farmers based on the total
land occupied by small and marginal farmers on one hand and other
farmers on the other.
 Make assumption to cover 100% of Small/Marginal Farmers and
20% to 50% of Other Farmers;
 Study the cropping pattern
 Estimation of credit potential taking into account Scale of Finance
and also the KCC guidelines in vogue

xi
 PLP 2019-20
DANG
Sr. No. Sector Methodology of Estimation of Credit Potential
 Block-wise allocation of potential taking into account credit
absorption capacity in a particular block, cropping pattern, etc.
2 Water  MI potential is the area that can be brought under irrigation by
Resources ground and surface water;
 Collection of data on ultimate irrigation potential, area already
brought under irrigation and balance potential available under
groundwater and surface water for the district
 While fairly clear estimates are available for ground water and its
present and future utilization, surface water estimates for individual
districts are difficult to get;
 Estimation of potential to be attempted block-wise based on
categorization of blocks, type of rock formation, suitability of MI
structures, projects planned by State Govt., etc.
 Preference of farmers for different MI structures like dug wells, bore
wells, DCBW, etc. is to be taken into account.
 The potential for MI sector is defined in terms of numbers for DW,
BW and TW, and in terms of an area for lift irrigation, sprinkler and
drip systems.
3 Farm  The potential estimate for farm mechanization takes into account
Mechanization irrigated and unirrigated cropped area in the district, economic life
of tractor, optimum use of tractor, per-acre use of tractor,
replacement of tractors per year, assessment of availability of
drought animal power/power tiller by using conversion factors;
 Calculation of requirement of number of tractors assuming one
tractor per 30 acres and 45 acres of irrigated and unirrigated
cropped area;
 Adjustment of tractor potential with land holdings
 Based on the cropping pattern, topography, etc., similar assessment
is made for power tillers, combine Harvesters, etc.
4 Plantation and  Estimation of additional area that could be brought under
Horticulture plantation crops based on trend analysis of the land utilization
pattern and cropping pattern of the district, area of cultivable
wasteland likely to be treated and brought under plantation crops;
 Feasibility and possibility of shifting from food crops to plantation
crops;
 Estimation of replanting by taking into account approximate
economic life of a few plantation crops
 Estimation of potential for rejuvenation of existing plantation
5 Animal  Collection of data on number of milch animals as per the latest
Husbandry – census
Dairy  Estimation of milch animals for the reference year by assuming 30%
calving, 50:50 sex ratio, 40% calf mortality and 50% culling for
buffaloes and 40% calving, 50:50 sex ratio, 20% calf mortality and
50% culling for CBCs and 30% calving, 50:50 sex ratio, 20% calf
mortality and 50% culling for indigenous cows;
 1/6th of the animals are assumed to be good-quality animals and
60% of the good-quality animals in milk are on 2nd and 3rd lactation.
50% of the number of animals so arrived are assumed to be animals
available for bank finance.

xii
 PLP 2019-20
DANG
Utility
Concerted and continuous efforts have been underway to make PLPs user-friendly, keeping in view the
stakeholders focus. The document has been useful to various stakeholders in a variety of ways, as
illustrated below:
1 Bankers i. Provides inputs/information on Exploitable potential vis-
a-vis credit available
ii. Potential high-value Projects/Area-based schemes
iii. Infrastructure support available which can form basis for
their business/development plans.

2 Government Agencies/ i. Developmental infrastructure required to support credit

Departments flow for tapping the exploitable potential
ii. Other support required to increase credit flow
iii. Identification of sectors for Government-sponsored
programmes

3 Individual / Business i. Private investment opportunities available in each sector

entities ii. Commercial infrastructure
iii. Information on various schemes of Govt & Banks.

Limitations and Constraints

Though concerted efforts are being made to estimate the potentials realistically, the following
limitations and constraints are noticed in the exercise of PLP preparation:
 Non-Availability of accurate granular data on credit flow – Sector and sub-sector-wise;

xiii
 PLP 2019-20
DANG

Chapter 1
Important Policies and Developments
1.1 Policy Initiatives - Government of India
Following important announcements have been made in Union Budget 2018-19 for agriculture and
famers’ welfare:

 Agriculture production in the country during the year 2016-17 achieved a record food grain
production of around 275 million tonnes and around 300 million tonnes of fruits and vegetables.
 For the year 2018-19, the target set for agriculture credit is Rs.11 lakh crore.
 An Agri-Market Infrastructure Fund with a corpus of Rs.2000 crore will be set up for developing
and upgrading agricultural marketing infrastructure in the 22000 Grameen Agricultural
Markets and 585 APMCs.
 GoI will be setting up a Fisheries and Aquaculture Infrastructure Development Fund for
fisheries sector and an Animal Husbandry Infrastructure Development Fund for financing
infrastructure requirement of animal husbandry sector. Total Corpus of these two new Funds
would be Rs. 10,000 crore.
 Government has decided to keep Minimum Support Price for the all unannounced crops of
kharif at least at one and half times of their production cost.
 Organic farming by Farmer Producer Organizations (FPOs) and Village Producers’
Organizations (VPOs) in large clusters, preferably of 1000 hectares each, will be encouraged.
Women Self Help Groups (SHGs) will also be encouraged to take up organic agriculture in
clusters under National Rural Livelihood Programme.
 ‘‘Operation Greens’’ shall promote FPOs, agri-logistics, processing facilities and professional
management.
 To realize the agri-export potential, export of agri-commodities will be liberalized. Government
will also set up state-of the-art testing facilities in all the forty-two Mega Food Parks.
 GoI will launch a Re-structured National Bamboo Mission with an outlay of Rs.1290 crore to
promote bamboo sector in a holistic manner.
 GoI has now allowed hundred per cent deduction to the companies registered as Farmer
Producer Companies and having annual turnover up to Rs.100 crores in respect of their profit
derived from such activities for a period of five years from financial year 2018-19.
 Under Prime Minister Awas Scheme (Rural), 51 lakh houses in year 2017-18 and 51 lakh houses
during 2018-19 which is more than one crore houses will be constructed exclusively in rural
areas.
 Ground water irrigation scheme under Prime Minister Krishi Sinchai Yojna- Har Khet ko Pani
will be taken up in 96 deprived irrigation districts where less than 30% of the land holdings get
assured irrigation presently.

(For detailed paper visit https://www.nabard.org/plp-guide.aspx?id=698&cid=698)

1.2 Policy Initiatives – Reserve Bank of India

The following major initiatives have been taken by RBI:

1
 PLP 2019-20
DANG
 Compendium of Guidelines on Financial Inclusion and Development issued to all Small Finance
Banks vide circular dated July 6, 2017.
 National Rural Livelihoods Mission (DAY-NRLM) - Aajeevika - Interest Subvention Scheme
addressed to all Public and Private Sector Banks vide circular dated October 18, 2017.
 Action Points for SLBC Convenor Banks/ Lead Bank addressed to all Lead Banks vide circular
dated April 6, 2018 so that Lead Banks go the extra mile to provide facilities over and above the
bare minimum to these critical field functionaries.
 Action Points for SLBC Convenor Banks/ Lead Bank addressed to all Lead Banks vide circular
dated April 6, 2018 to focus on policy issues.
 Revised guidelines on lending to Priority Sector for Primary (Urban) Co-operative Banks
issued, vide circular dated May 10, 2018.
 Instructions issued vide circular dated June 6, 2018 to all banks and NBFCs regulated by the
Reserve Bank of India to temporarily allow banks and NBFCs to classify their exposure, as per
the 180 days past due criterion, to all MSMEs, including those not registered under GST, as a
‘standard’ asset, subject to the certain conditions.
 Circular dated June 19, 2018 issued to all Scheduled Commercial Banks (Excluding Regional
Rural Banks and Small Finance Banks) prescribing eligibility criteria of housing loans for
classification under priority sector.
 Master Circular – Lead Bank Scheme - Issued to all the SLBC Convenor Banks/Lead Banks vide
circular dated July 02, 2018.
 Master Circular- Credit Facilities to Minority Communities addressed to All Scheduled
Commercial Banks & Small Finance Banks (Excluding RRBs and Foreign banks with less than
20 branches) issued vide circular dated July 02, 2018.
 Master Circular on SHG-Bank Linkage Programme issued to all Scheduled Commercial Banks -
Issued vide circular dated July 02, 2018.
 Master Circular - Kisan Credit Card (KCC) Scheme - Issued to All Scheduled Commercial Banks
(including Small Finance Banks and excluding RRBs) vide circular dated July 4, 2018. The
scheme provides broad guidelines to banks for operationalizing the KCC scheme. Implementing
banks will have the discretion to adopt the same to suit institution/location specific
requirements.

(For detailed paper visit https://www.nabard.org/plp-guide.aspx?id=698&cid=698)

1.3 Policy Initiatives - NABARD

1.3.1 Long-Term Refinance
To ensure increased and uninterrupted credit flow to farmers, as also to give a boost to capital formation
in agriculture sector NABARD provides refinance to the cooperative banks and RRBs out of Long Term
Rural Credit Fund, at a reasonable rate of interest. An amount of Rs.15,000 crore has been allocated for
the year 2018-19.

1.3.2 Short-Term Refinance

Short Term Cooperative Rural Credit - STCRC (Refinance) Fund has been set up in NABARD to provide
Short Term refinance to Cooperatives for their crop loan lending. The allocation for the year 2018-19
is Rs.45,000 crore.

Short Term RRB (Refinance) Fund has been set up in NABARD to provide Short Term refinance to
RRBs for their crop loan lending. The allocation for the year 2018-19 is Rs.10,000 crore.

2
 PLP 2019-20
DANG
1.3.3 Rural Infrastructure Development Fund (RIDF)

The corpus under RIDF is announced every year by GoI/RBI and for the year 2018-19, a corpus of
Rs.28, 000 crore has been allocated.

1.3.4 Long-Term Irrigation Fund (LTIF)

The Long-Term Irrigation Fund (LTIF) set up in NABARD with an initial corpus of Rs.20,000 crore
for funding 99 irrigation projects during 2016-17 following announcement in the Union Budget, was
further supplemented with additional allocation of Rs.20,000 crore in 2017-18 and Rs.15,000 crore in
2018-19.
In addition to the 99 projects, two more projects namely Polavaram National Project from Andhra
Pradesh and North Koel Reservoir Project from Bihar and Jharkhand were included for funding under
LTIF.

1.3.5 Dairy Processing and Infrastructure Development Fund (DIDF)

In the Union Budget 2017-18, Government of India announced creation of Dairy Processing and
Infrastructure Development Fund (DIDF) with a total corpus of Rs.8000 crore over a period of 3 years
(2017-18 to 2019-20). The Operational Guidelines were issued by GoI on 21 December 2017.

1.3.6 Digitization of SHGs under EShakti project

The project is in operation in 100 districts spread over 22 States and one UT as on 31 March 2018 and
is expected to digitise 4.5 lakh SHGs benefiting around 54 lakh rural poor. As on 31 March 2018, a total
of 3, 49,432 SHGs were digitized involving 38, 36,014 members across the country.

1.3.7 Financial Inclusion

A Financial Inclusion Fund (FIF) has been set up in NABARD with a view to take up developmental and
promotional interventions to secure greater financial inclusion and support suitable technology and
innovations. Many new initiatives are taken under the Fund.
 Supporting Banks for obtaining Membership of Authentication User Agency (AUA) / KYC User
Agency (KUA) facilities of UIDAI and setting up infrastructure.
 Support for deployment of mobile signal booster in grey areas SSAs in lieu of VSAT sanctioned
earlier.
 BHIM Aadhaar Merchant Incentive Scheme
 BHIM Cash Back Scheme for Individuals
 Dual Authentication at BC points for SHG transactions
 Support to RCB’s for on-boarding Public Financial Management System” (PFMS): - Guidelines
have been issued to RCBs extending support under FIF for on-boarding PFMS platform.
 Deployment of 20 lakh BHIM Aadhaar Pay Devices
 Aadhaar Enrolment and Update Centres
 Support for on-boarding to BHIM UPI Platform to RRBs and RCBs to provide better services
while making banking transactions.

3
 PLP 2019-20
DANG
1.3.8 Climate Change

Adaptation Fund - NABARD was reaccredited as the National Implementing Entity (NIE) by the
Adaptation Fund under UNCCC, the reaccreditation would be valid up to December 2022.
 Green Climate Fund - India’s first Private sector facility proposal “Line of credit for Solar
Rooftop Segment for commercial, industrial and residential housing sectors” with an outlay of
USD 250 million and GCF loan of USD 100 million was sanctioned. One project on ‘Ground
Water Resurgence and Solar Pumping System to ensure food security and enhance resilience in
vulnerable tribal areas of Odisha” with outlay of USD 34.357 million was sanctioned.
 National Adaptation Fund for Climate Change - During 2017-18 the National Steering
Committee on Climate Change (NSCCC) of MoEFCC accorded sanction to 06 projects including
one regional project on “Crop Residue Management” developed by NABARD covering Punjab,
Haryana, Rajasthan and Uttar Pradesh to address the crop residue burning and co sequential
negative impacts. In order to make available information on projects being implemented,
NABGREEN was developed as portal linked to the website of NABARD.

1.3.9 Farm Sector Policy – improvements

 National Level Farmers’ Consultative Group was instituted during 2017-18 as a forum for
interaction with farmers at the national level. First meeting of the NLFCG was held on 09
February 2018 with participation of farmer members from 20 states.
 A consultation workshop with Commodity Boards was organized to facilitate coordinated efforts
towards enhancing income of farmers.
 In order to facilitate revival of millets especially as part of climate resilient agriculture for dry
lands action research projects was initiated in the states of Karnataka and Madhya Pradesh.
 Krishak Sarathi portal for digitisation of Farmers’ clubs was initiated to facilitate development
of a database of farmers, aid in monitoring activities of the Farmers’ clubs and ensure their
sustainability in the long run. Over 23,000 Farmers’ Clubs have been digitized during the year.
 Krishak Samriddhi- an income enhancement initiative - Five action research projects on
enhancing income of farmers were initiated in five states viz. Gujarat, Haryana, Odisha, Bihar
and Assam.

1.3.10 Off Farm Sector Initiatives

 The corpus of Gramya Vikas Nidhi has since been enhanced to Rs.40 crore during the year 2017-
18.
 NABARD took the initiative of providing financial assistance and other need based support in
establishment of ‘new’ Agri Business Incubation Centres (ABICs) in Government Agriculture
Universities/Government Agriculture Colleges across India.
 With a view to generating fresh ideas for invigorating the handloom sector, NABARD held a
“National Seminar on Handloom” at Head Office in Mumbai on 19 January 2018.

(For detailed paper visit https://www.nabard.org/plp-guide.aspx?id=698&cid=698)

4
 PLP 2019-20
DANG
1.4 Government of India Sponsored Programmes with Bank Credit

The Administrative approval conveying the continuation of the following subsidy schemes for
2018-19 has been received from GoI:
 Agri Clinics and Agri Business Centres Scheme
 Dairy Entrepreneurship Development Scheme
 National Livestock Mission
 Stand Up India Scheme

(For detailed paper visit https://www.nabard.org/plp-guide.aspx?id=698&cid=698)

1.5 Sustainable Agricultural Practices

1.5.1 Major Adaptation and Mitigation Strategies

 Generation for Renewable Energy of 175 GW by 2022.

 National Solar Mission scaled up by 100 GW by 2022.
 National Smart Grid Mission launched for efficient T & D network.
 Launched Smart Cities Mission to develop new generation cities by building a clean and
sustainable environment.
 Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is a new urban renewal
mission for 500 cities across India.
 Launched one-of-its kind ‘Swachh Bharat Mission’ (Clean India Mission)
 Formulated Green Highways (Plantation & Maintenance) Policy to develop long “tree-line”
along both sides of national highways.
 Launched Soil Health Card Scheme to all farmers.
 Paramparagat Krishi Vikas Yojana launched to promote organic farming practices.
 Pradhan Mantri Krishi Sinchayee Yojana launched to promote efficient irrigation practices.

1.5.2 Sustainable Agriculture – Meaning and Key Principles: Sustainable agriculture is the
production of food, fibre or other plant or animal products using farming techniques that protect the
environment, public health, human communities and animal welfare. In other words, Sustainable
agriculture can be understood as an ecosystem approach to agriculture. The most important factors for
agriculture farm are sun, air, soil, nutrients, and water. The water and soil quality and quantity are most
amenable to human intervention through time and labour. Sustainable agriculture means those
farming practices which are sustainable for longer time period for identified location and developed by
understanding of ecosystem services, relationships between organisms and their environment.

1.5.3 Sustainable Agriculture Practices

 Improvement in soil fertility through crop residue management, green manuring, crop rotation
and mixed cropping
 Adoption of Integrated Farming System (Dairy + Crop Production + Horticulture, etc.) for
efficient use of natural resources
 Adoption of water management practices as per water availability and increase in output
productivity on per unit basis.
 Adoption of Sustainable agricultural practices such as conservation agriculture (zero tillage),
crop rotation, mixed cropping, mulching, etc.
 Adoption of Integrated Nutrient & Pest management

(For detailed paper visit https://www.nabard.org/plp-guide.aspx?id=698&cid=698)

5
 PLP 2019-20
DANG

1.6 Policy Initiatives – State Government

A. Budget Initiatives

Agriculture, Farmer Welfare and Co-Operation: Total provision of Rs.6755 crore has
been made for Agriculture, Farmers Welfare and Co-operation Department.
Crop Production: Government has decided to provide crop loan at zero percent interest rate
to farmers. For this provision of Rs.500 crore has been made.
Horticulture development: Provision of Rs.50 crore has been made for setting up multi
commodity control atmosphere technology based cold storages
Animal Husbandry and Dairy: A provision of Rs.34 crore has been made for National Live
Stock Mission. A provision of Rs.44 crore has been made to strengthen infrastructural facilities
of Gaushalas.
Fisheries: A provision of Rs.280 crore has been made for creating berthing and landing
facilities.
Cottage and Rural Industries: Provision of Rs.450 crore has been made for various schemes
of Self-employment through Cottage and Rural Industries.
Solar Power: A provision of Rs.127 crore has been made to provide solar operated agricultural
pump sets to farmers.
Water Resources & Irrigation: A provision of Rs.1, 765 crore has been made to strengthen
irrigation facility in 3, 73,000 acres of area.
A provision of Rs.2516 crore has been made for Mukhyamantri Gram Sadak Yojana.
Panchayat, Rural Housing and Rural Development: Total provision of Rs.7239 crore
has been made under Panchayat Rural Housing and Rural Development Department.
Forest and Environment: Total provision of Rs.1287 crore has been made under Forest and
Environment Department
Climate Change: A provision of Rs.103 crore has been made under Climate Change
Department.
Skill Development -Under the new Mukhyamantri Gramoday Yojana, government will
provide interest subvention up to 6% to train 50,000 skilled and semi-skilled workers in rural
areas.

B. Other Initiatives

1. Gujarat Chief Minister Vijay Rupani launched the scheme Saurshakti Kisan Yojana (SKY)
on 02 July, 2018.
2. The Gujarat government on June 21, 2018 announced the Wind-Solar Hybrid power policy

For Detailed information on State Government Initiatives please visit NABARD Website at
www.nabard.org
(For detailed paper visit https://www.nabard.org/plp-guide.aspx?id=698&cid=698)

6
 PLP 2019-20
DANG
1.7 State Government Sponsored Programmes with Bank Credit

The details of major State Government Sponsored Programmes with Bank Credit are enumerated in
brief:

1.7.1 Assistance to established 12 Milch animal farm for self-employment

Gujarat State Government Scheme for Assistance to Establish 12 Milch animal farm for self-
employment, 2018-19 (for all category). In this scheme financial assistance for animal husbandry
business such as interest subsidy on bank loans received, interest subvention on bank loan for purchase
of 12 Animal and capital subsidy on shed construction, purchase of Chaff Cutter, Fogger system, milking
machine and animal insurance for 3 years.

1.7.2 Vajpayee Bankable Scheme (VBS)

A scheme for providing financial assistance to the craftsmen of Cottage Industries through Nationalised
Banks, Co-operative banks, Public sector Banks or Private Banks. This scheme aims to supply self-
employment to the unemployed persons in urban and rural areas. Disabled and blind persons are also
eligible to take benefits under this scheme.

1.7.3 Jyoti Gramodyog Vikas Yojana

Jyotigram Yojana is an initiative of the Government of Gujarat to ensure availability of 24-hour three
phase quality power supply to rural areas of the state and to supply power to farmers residing in
scattered farm houses through feeders having specially designed transformers.

1.7.4 Gujarat Scheduled Caste Development Corporation (GSCDC)

To provide financial assistance to Scheduled caste/ Scheduled Tribe beneficiaries living below poverty
line. 50% of the Project Cost subject to Max. Rs.10000/-.

1.7.5 Gujarat Backward Classes Development Corporation

To provide financial assistance to backward classes and living below poverty line. Subsidy:
Max 50% - Rs.10000/-; Rs.3000/ or 33.33% for minority

1.7.6 Dattopant Thengadi Artisan Interest Subsidy Scheme

A scheme for providing required amount of finance for machinery or working capital at low interest rate
with ease to the workmen registered as artisans in the urban as well as rural areas of the State.

1.7.7 Subsidy scheme for Salt Producers for Purchase of Solar Pump Set

A new subsidy scheme for purchase of solar pump by salt producers. On purchase of solar pump system
by salt producers, subsidy @ 80% of the cost of the solar pump is being provided to salt producers.

(For detailed paper visit https://www.nabard.org/plp-guide.aspx?id=698&cid=698)

7
 PLP 2019-20
DANG

1.8 Sustainable Agriculture Practices in the State

1.8.1 Sustainable Agricultural Practices in Gujarat

Agriculture continues to be the primary occupation of majority of rural people in Gujarat State. About
51.8% of total workers are cultivators and agriculture labourers. Moreover, agriculture provides
indirect employment to large portion of population in agro-based occupations. Thus, prosperity and
well-being of people in Gujarat is linked with agriculture and allied activities. For the last few years, the
agricultural output has increased at an annual rate of 11% in Gujarat, which is a commendable growth
in this sector. Keeping in mind, the vulnerabilities of this sector it is important to frame strategies that
take into account the critical role played by this sector.

1.8.2 Strategies for Sustainable Agriculture

Agriculture is going to play a critical role over the next decade when Gujarat is expected to continue
with rapid economic growth. It is a sector that continues to provide sustenance for over half the
population in the State. With further growth there could be additional demands on the sector not only
in terms of livelihoods but also address concerns relating to food security. Given the anticipated impacts
of future climate variability and change in this critical sector, a holistic approach is advocated that would
not only address specific vulnerabilities but also meet the wider range of sustainability concerns relating
to Agriculture in Gujarat.
It is worth noting that at the National Level the National Mission on Sustainable Agriculture advocates
a similar approach with a focus on four thrust areas:
 Dry land Agriculture;
 Biotechnology;
 Access to Information; and
 Risk Management.

1.8.3 State Initiatives and Achievement

Gujarat has adopted a consistent strategy to cope with Climate Changes in different agro-climatic zones
of the State. In each agro-climatic zone, there is one agro meteorological field unit providing weather
based agro-advisory services to the farmers of that zone. Infrastructure such as Automatic Weather
Stations (AWS) is being installed at various locations. Agriculture Universities have initiated the
creation of a network of observatories in Gujarat, by installing automatic weather stations at different
research stations, in order to generate online weather information and create a data bank on climate.
Agro-climate based crop planning has been initiated through Soil Health Card Programme, where
cropping systems have been suggested based on the soil moisture availability index, and helped farmers
adopt more remunerative crops, thereby increasing their incomes.

1.8.4 Addressing uncertainties

The Government of Gujarat has established
 Centre for Weather Forecasting and Climate Change at Anand,
 Centre for Environmental Studies at Navsari
 Centre for Agro-advisory services at Junagadh.

These centers are engaged in critical analysis of weather/climate parameters and their likely impacts
on agricultural production. Research has already been initiated to study impacts of Climate Change on

8
 PLP 2019-20
DANG
breeding of heat and photoperiod insensitive crop varieties, erection of poly-houses to create controlled
environments, thereby increasing yield and reducing population dynamics of insect pest and diseases
etc. In addition to above mentioned programs, two projects in collaboration with SAC, ISRO
Ahmedabad and IIT Delhi are initiated, under which 40 Automatic Weather Station (AWS) will be
installed in Gujarat, forecasting extended range or seasonal scale weather which will benefit climate
risk management.

1.8.5 Agricultural productivity

The cumulative effect of all these has been drawn of increasing productivity in major crops of the State
despite 0.1° C to 0.9° C average increase in temperatures recorded at various locations in the State.
Agricultural productivity in Gujarat has been higher than other States, and has been growing at 9.6 per
cent per annum.

Ongoing Initiatives

During the last several years, initiatives have been taken to deal with impacts of global warming by
strengthening of schemes and launching of new programmes. There have been efforts to promote
thermo-insensitive and drought resistance crops like cotton and castor by providing technological
transformation support, training and input subsidy. To reduce the effects of chemical pollution and
promote organic farming, an intensified integrated pest management approach is being encouraged in
the State.
Events like Krushi Mahotsavs have been organized to promote activities like organic farming. 42 lakh
Soil Health cards under Soil Health programme of the Agricultural department have been distributed
which has helped farmers take accurate action to increase productivity of their land In addition, twenty-
six crops have been covered under the crop insurance scheme to provide safeguards against production
losses in crops due to natural calamities, diseases, pests etc.

Key Strategies

Given the vulnerability of this sector, it is important to build on initiatives and opportunities that not
only enhance the mitigation options but also tap the adaptation opportunities. The strategies should
also focus on research and development in this sector, including detailed impact studies, infrastructure
development through setting up innovative ideas like animal hostels, through policy support and
capacity building.

1.8.6 Research and Development

 Development and recommendation of new cropping pattern taking into consideration the
climatic changes of that area.
 Development of thermo insensitive and drought resistant varieties of crops.
 Vigilance systems can be developed for monitoring of emerging pests and diseases.
 Intensifying IPM approach in plant protection in order to decrease cost of plant protection and
reduce environment pollution
 Developing genotypes tolerant to biotic and abiotic stresses such as drought, high temperature,
submergence, saline conditions and pest and disease challenges under Climate Change

9
 PLP 2019-20
DANG
1.8.7 Institutional Strengthening and Infrastructure Development

 Penetration of technologies such as micro-propagation techniques, integrated nutrient, water

and pest management, organic farming, immuno-diagnostic techniques for detection of diseases
to improve the productivity of horticultural crops.
 Building market information, intelligence and forecasting system for farmers.
 Developing new generation treatments, vaccines as well as pesticides.
 Providing specific recommendations for nutritional modifications for dairy animals to minimize
production loss associated with heat stress.

1.8.8 Policy Support

Encouraging Public-Private Partnership model in agricultural risk management. Increasing

Government support to private sector players can promote involvement of private sector in agriculture,
increase aggregate insurance coverage and improve viability of the insurance schemes over time.
Gujarat has a Soil Health Card programme which will serve as a means for agri-scientists to reach out
to individual farmers and provide expertise for enhancing agriculture productivity. This can also
suggest the cropping patterns that should be adopted based on findings of the climate modelling studies.
Strengthening Surveillance systems for pests and diseases and streamlining the flow of information of
pest surveillance and livestock diseases to reduce response time between detection and action to
manage and prevent pests and diseases.
Irrigation efficiencies need to be improved by stressing on drip, sprinkler irrigation techniques in place
of channel irrigation.
Wherever micro-irrigation system cannot be used, efforts need to be made for use of pre-fabricated
water conveyance system and adoption of ridge & furrow method of irrigation, raised bed method of
farming, field-bunding and levelling etc.

1.8.9 Capacity Building

Courses on agri-business development and agri-clinics can help graduates generate self-employment
opportunities by providing specialized extension services to the farmers. Another area of focus should
be on building technical capacity of farmers on use of Information and Communication Technology
(ICT) and Resource Conservation Technologies (RCTs).
Expanding the extension services in the State to build adequate capacity to provide relevant and timely
information to farmers to make appropriate choices. Organizing short-term courses for extension
workers to help them understand the emerging challenges of Climate Change and ways of effective
communication to the farmers.
(For detailed paper visit https://www.nabard.org/plp-guide.aspx?id=698&cid=698

10
 PLP 2019-20
DANG
CHAPTER 2

CREDIT POTENTIAL FOR AGRICULTURE

2.1 Farm Credit

2.1.1. Crop Production, Maintenance and Marketing

2.1.1.1 Introduction
Dang has predominantly been a pro-agriculture district with farmers taking up various agriculture and
allied activities from crop production to dairy, horticulture, poultry, etc. Crop loan is a critical factor
for agriculture activity in the district and had constituted 81.2% of the total agricultural and 57.3% of
the total priority sector advances during 2016-17. The total geographical area of the district is 172357
ha of which, net cultivable area is 57843 ha (33.6%). The net irrigated area is 11803 Ha which is 20.4%
of the cultivable area. During 2016, the district received 945 mm. of rainfall. The average land holding
is 6.6 ha in the district.
Position of agricultural land holding in the district is as under:

Sr. No. Land Holding Size No. of Holding % to Total No. of Holdings
1 Less than 1 ha. 1341 12
2 1 to 2 ha. 1669 15
3 More than 2 ha. 8187 73
Total 11197 100
Source: District Agriculture Department

Major crops grown and area covered during last 4 years in the district are indicated below:

Crop Year-wise Area Coverage for the Years (Ha.)

2014-15 2015-16 2016-17 2017-18
Paddy 16862 18864 20588 20620
Nagli 14757 17056 7575 8325
Jowar 1388 1385 1743 1756
Groundnut 2724 2630 2755 2813
Tur 2842 1751 2963 2972
Source: District Agriculture Department

Green Kisan Credit Card, a unique scheme, has been launched for the first time in the State in the Dang
Dist. Under the scheme, tribal farmers would offer the ‘malki trees’ (trees on private ownership land
whose rights have been given to the tribal land owners by the Forest Dept.) as collateral for any bank
loan with a counter-guarantee from DFO. The bank would assess the value of the teak / other trees &
disburse the loan (50% of the value of trees) amount after receiving the consent from DFO Office.

Against 11197 Farm Holdings in the district, 5106 farmers had been issued KCC, covering 45.6% of
farmers of the district, as of 31 March 2017 with an aggregate outstanding of ₹33.66 crore. However,
most of the farmers are defaulters and, hence, they are not eligible for fresh finance.

2.1.1.2 Assessment of Potential for the Year 2019-20

Keeping in view the crop-wise area under cultivation, level of rainfall and irrigation facilities and
infrastructure support under various Govt. Programmes, implementation of KCC scheme and past

11
 PLP 2019-20
DANG
trends, the potential for crop loan for the year 2019-20 is given as under. Block-wise bifurcation of
potential is given in Annexure-I.
(₹lakh)

Sr. Crop Production, PLP 2019-20

No. Maintenance & Marketing SOF* Physical TFO Bank Loan
Units (Ha)
1 Paddy 0.44 3960 1742.40 1742.40
2 Groundnut 0.32 985 315.20 315.20
3 Other Millets 0.22 2060 453.20 453.20
4 Pulses 0.27 2165 584.55 584.55
5 Vegetable 0.62 385 238.70 238.70
6 Sugarcane 1.22 85 103.70 103.70
7 Spices 0.40 170 68.00 68.00
8 Field Floriculture 1.09 45 49.05 49.05
9 Strawberry 0.92 75 69.00 69.00
10 Banana (TCP) 1.37 90 123.30 123.30
- Sub-Total 10020 3747.10 3747.10
11 10% of Crop Loan – Post- - - - 374.71
harvest/household/Consumption
12 20% of Crop Loan for Repairs & - - - 670.14
Maintenance of Farm Assets
- Total - - - 4791.95
- *SOF fixed for 2018-19

2.1.1.3. Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed:

a) Under the Training & Visit Scheme of Government, agri-extension programmes are implemented.
There are 52 PACS affiliated to Valsad DCCB (total PACS -61), 44 irrigation societies and 4 vegetable
growers’ Societies are operating in the district. Through these societies, farmers get inputs like
fertilizer, seeds, insecticides etc. These societies also buy back the produce of farmers.
b) There is one APMC in the district. The farmers are also procuring the required inputs from
neighbouring districts.
c) There is one Soil-testing Laboratory at KVK, Waghai in the district. Farmers from district are also
availing services of another Soil-testing Laboratory operational at the neighbouring taluka of
Vansda in Navsari district.
d) Lack of irrigation facilities adversely affects the agricultural productivity. Due to dependence on
rains, farmers take only one crop in a year. Emphasis should be laid on creation of irrigation
infrastructure under BRGF in the district.
e) Timely supply of good-quality seeds and fertiliser needs to be ensured by Zilla Sangh, Agro-Service
Centres, Co-operative Societies, Beej Nigam and other agencies like Gujarat Agro Industries
Development Corporation. The sub-depots at Taluka levels may be provided with adequate stock of
seeds and fertilisers at sowing time.

2.1.1.4. Suggested Action Points

Banks
a) By adopting new technique like SRI cultivation, the production can be increased. To meet the
challenge of credit support, commercial banks, cooperative banks, and RRB have their service area
plans to be implemented.
b) Banks may make efforts to contact and encourage the agriculture graduates to set up units under
the Scheme for setting up Agri Clinics and Agri Business Centers (ACABCs). Activities like soil and
water testing laboratories, pest diagnostic and control services, custom-hiring of agricultural

12
 PLP 2019-20
DANG
implements, vermi compost, tissue culture, labs and various extension services are covered under
the scheme.

Departments

a) Since an overwhelming majority of the farmers use farm-saved seeds, there is a need for training
farmers in seed replacement, seed production, particularly hybrid seed, processing and storage
techniques by Navsari Agriculture University and KVK.
b) There is an urgent need for formation of more Farmers’ Clubs in the District for their obvious
advantages to both the farmers and the banks.
c) The extension machinery in the district could be strengthened to guide the farmers in increasing the
production & productivity. Farmers may be guided to take up new and high-value crops.
d) Long-term strategy with focus on preparing farmers to voluntarily accept and practice organic
farming in their fields needs to be evolved.
e) Improved agricultural practices such as vermi culture, use of micro-nutrients, bio-fertilizers, etc.
may be popularized amongst the farmers through regular training and awareness workshops.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

National Agricultural Insurance Scheme (NAIS) and Modified NAIS (MNAIS) have been replaced by
“Pradhan Mantri Fasal Bima Yojana”

 Loanee Farmers: It is compulsory to insure all farmers who have availed Seasonal
Agricultural Operations (SAO) loans for growing the notified crops in the notified areas in Kharif
2017 season.
 Non-loanee Farmers : All farmers growing the notified crops in the notified areas in Kharif
2018 season and not having availed Seasonal Agricultural Operations(SAO) loans are eligible to
insure their crops

State Govt. has launched a website, i-Khedut portal, (ikisan.gujarat.gov.in) wherein every proposal for
crop insurance shall be generated by loanee/non-loanee farmer by making data entry on the portal,
within the prescribed time limit. The amount insured will depend upon the Scale of Finance. The
Insurance Companies are identified after calling bids and their approval in the State-level Committee.

In Dang, New India Assurance Company has been finalised. All crops are covered - Kharif, Rabi and
commercial crops of longer duration.

Premium:

Kharif Crops 2% of Sum Insured or actuarial rate, whichever is less

Rabi Crops 1.5% of the Sum Insured or actuarial rate, whichever is less

Annual Commercial/Annual Horticultural crops: 5% of Sum Insured or actuarial rate, whichever is less.

In Gujarat, State Government has announced that even for commercial crops, premium will be paid by
the farmers only @ 2% while 3% premium will be borne by the State Government.

Seasonality has been specified with regard to deduction of premium, remittance of the same to
insurance companies and settlement of claims.

13
 PLP 2019-20
DANG
2.1.2 Water Resources

2.1.2.1 Introduction

Irrigation plays a vital role in development of agriculture by improving productivity and cropping
intensity. With a view to addressing the water scarcity situations and ensuring more equitable use of
water, the Govt. of India launched Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) envisaging the
concept of “water for every farm” and “per drop more crop” to which, NABARD is a key stakeholder.
To cater to the huge fund requirement and ensure completion of these projects, the Hon’ble Union
Finance Minister, during his Budget speech 2016-17, had announced creation of a dedicated Long-Term
Irrigation Fund (LTIF) in NABARD with an initial corpus of ₹ 20,000 crore for funding of Central and
State shares for the identified projects under PMKSY. The LTIF corpus will comprise of budgetary
resources, including additional share capital contribution to NABARD by the Ministry of Finance and
market borrowings by NABARD, both under GOI’s fully-serviced bonds and own borrowings. The Fund
will be used for financing and fast-tracking of the incomplete major and medium irrigation projects
identified by Ministry of Water Resources, River Development and Ganga Rejuvenation (MoWR, RD &
GR), GoI in a Mission mode so that the projects can be completed by December 2019. This will enable
additional irrigation in 7.6 million ha area.
Hon’ble Finance Minister, in the Budget 2018-19, has also announced setting up of the Micro Irrigation
Fund in NABARD with an initial corpus of ₹5,000 crore. It is envisaged to extend loans to State Govts
for financing of sprinkler/drip irrigation systems, piped water supply and other such measures.
Sardar Patel Sahbhagi Jal Sanchay Yojana

The Government of Gujarat had launched the 1st phase of the scheme, “Sardar Patel Sahbhagi Jal
Sanchay Yojana” in the year 2000 which is based on people’s participation. The scheme envisaged
construction of small check dams which are the most effective tool for water conservation at the
minimum investment and minimum maintenance and operational cost. Initially, the scheme was
launched with the financial contribution of 60:40 (Government: Beneficiaries) in Non-Tribal area while
in tribal area, it was 80:20. Overwhelming response from beneficiaries had been received to this scheme
and the Govt has been tweaking the scheme from time to time. Tens of thousands of check dams have
been constructed under this scheme all over Gujarat.
Saurashtra Narmada Avtaran Yojana (SAUNI)
Saurashtra Narmada Avtaran Irrigation is a project with the objective of filling 115 major dams by
diverting floodwaters overflowing from the Sardar Sarovar Dam across the Narmada River to the
drought-prone areas. The project acts as a ‘linking’ project where the water will be filled in irrigation
dams that are already equipped with canal network. The key features include -

 115 dams in the Saurashtra region will be filled with excess water
 Around 10 dams and reservoirs of Rajkot, Jamnagar and Morbi districts will be filled with water
 Making pipe canals instead of the conventional open canals
 1,125-km network of pipelines that will help to channel water into farms

Saurashtra region of Gujarat includes 11 districts that face drought-like situation often and has been
reeling under severe water scarcity due to scanty rainfall. Sardar Sarovar reservoir has 4.75 million acre
feet (MAFT) storage capacity which is further distributed to the States of Gujarat, Rajasthan and
Maharashtra. A lot of floodwater still overflows the dam, especially in the monsoon season, and ends
up going to the sea. Gujarat’s share is around 3 MAFT in that floodwater. With the new scheme, the
water will be distributed to all the big reservoirs

14
 PLP 2019-20
DANG
Dang district falls under medium rainfall area. The annual rainfall during 2016 was 945 mm in the
district. There are four rivers flowing through the district viz. Ambika, Khapri, Purna and Gira. The
rivers have a high density of drainage and steeper gradient resulting into quick run off during monsoon.
As a result, the ground water recharge is very low.

There is no major or medium surface irrigation project in the district and other sources of irrigation are
negligible. The district is having forest, hilly terrain and rocky area. In Dang, the ground water is tapped
by dug wells-cum-bore wells. The net irrigated area in the District is 11803 ha or about 20.4% of the
total net cultivated area. The irrigation sources are Check Dams, Ponds, Lift Irrigation, etc. The District
is “Safe” as the stage of ground water development being less than 32%.

2.1.2.2. Assessment of Potential for the Year 2019-20

The potential physical units that can be covered under bank finance during the year 2019-20 are given
as under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Sr. Activity PLP 2019-20
No. Unit Phy Unit TFO Bank Loan
Cost (No)
1 Dug Wells 1.85 40 74.00 66.60
2 Bore Wells 0.80 40 32.00 28.80
3 IP Sets 0.50 65 32.50 29.25
4 Lift Irrigation 1.65 50 82.50 74.25
5 Drip Irrigation 1.20 60 72.00 68.40
6 Sprinkler 0.45 10 4.50 4.28
7 Misc. (renovation of well, 0.45 155 69.75 62.78
underground pipes, Booster
Pumps, Minor Conveyors, etc.)
Total 420 367.25 334.35

2.1.2.3. Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed:

a) Drip irrigation needs to be promoted for use in horticulture & fruit crops.
b) Artificial recharge of ground water is one of the most efficient ground water management tools for
ensuring sustainability of ground water resources. It will increase the sustainability of the wells
during lean period and will also improve the overall irrigated areas, agricultural productivity,
drinking water availability and quality of ground water, especially in the fluoride-affected areas.
c) The data on water resource availability at micro level, quality of water, trends in water level
fluctuations, etc. needs to be regularly updated and made available to the banks /farmers for
planning.
d) Availability of application forms of GGRC for Drip Irrigation may be made available at Panchayat
levels.

2.1.2.4. Suggested Action Points

Banks

a) There is a need to encourage farmers to adopt sustainable agriculture practices, including increased
use of water-saving devices such as drip and sprinkler irrigation systems, and creation of structures
aimed at soil and water conservation in their fields.
b) Banks may actively coordinate with line departments to intensify credit flow to the sector.
c) Banks may extend credit for rainwater harvesting structures to provide protective irrigation and
augmenting groundwater recharge.

15
 PLP 2019-20
DANG
d) Compliance with technical parameters like spacing norms should be ensured while financing so that
failure rate of wells can be minimized.
e) Aggressive credit marketing and focused attention through strategic planning by the banks is
necessary for accelerating the credit flow for water resources.

Departments

a) Various operational issues concerning the Scheme of the Gujarat Green Revolution Company
Limited (GGRC) should be resolved at the earliest for effective implementation of the Scheme. Some
of the issues are non-availability of information/application forms at the level of Gram Sewak and
Taluka Panchayat Office, delays in inspection of the site by the GGRC officials / MIS Agency after
the submission of the application by the prospective beneficiary-farmers, etc.
b) In view of the large number of SF/MF with small land holding and lack of clear title to land, farmers’
groups may be promoted to undertake irrigation on community basis.
c) There is a need for educating the farmers to utilize the water efficiently and avoid any over-irrigation
and water seepage through field channels. In order to achieve this, the area development schemes
may be evolved for UGPL, Pump sets, LIS from canals, etc. Crop diversification is another aspect
that needs to be emphasized suitably looking to the changes in infrastructure in the district.
d) Zilla Panchayat may initiate necessary steps to promote artificial recharge of dug wells in hard rock
areas among farmers and arrange to construct model recharge structures in the district.

16
 PLP 2019-20
DANG

2.1.3 Farm Mechanization

2.1.3.1. Introduction

Farm Mechanisation leads to increased production and productivity, better utilisation of irrigation
potential, adoption of multiple cropping pattern, etc., besides minimizing cost, increasing income,
reducing drudgery in operations, increasing cropping intensity, etc. Post-harvest machinery helps in
reduction of loss during harvest and adds value thorough cleaning, grading and packing scientifically.
All these aspects may contribute to doubling of farm income of farmers in the coming years. The
activities considered for financing include tractors, power tillers, combine harvesters, agricultural
Implements, etc. Farm mechanisation is important to accelerate the growth of both production and
productivity. Besides facilitating and ensuring timeliness, thoroughness and cost-effectiveness of
agricultural operations, it helps in improving the quality of life of rural work force and farm families.

The District has 11197 operational land holdings covering a total farm area of 57843 hectares. Around
27% of the farmers are small and marginal with holdings up to 2 Ha. Out of total land, 54204 ha of land
holding occupied by 8187 big farmers having land more than 2 ha. Though, the operational land holders
are 11197, the total numbers of cultivators are more than 55000. Most of the cultivators do not have
land in their names. The net irrigated area in the District is 11803 hectares or about 19.7% of the total
net cultivated area. Around 67% of the cultivable land is on slopes, thus making it difficult for use of
tractors/ power tillers.
2.1.3.2 Assessment of Potential for the Year 2019-20
The potential physical units that can be covered under bank finance during the year 2019-20 are given
as under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Sr. Activity PLP 2019-20
No Unit Cost Phy Units TFO Bank Loan
(No)
1 Tractors 11.00 55 605.00 544.50
2 Power Tillers, including 2.66 90 239.40 215.46
implements
3 Miscellaneous (farm vehicles, 2.50 65 162.50 146.25
power thresher, self-propelled
reaper & other specialized power
driven equipment, etc.)
Total 210 1006.90 906.21

2.1.3.3 Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed:

a) As on 31 March 2017, there were more than 240 tractors, 17 threshers and 45 power tillers in the
district.
b) There is no Tractor dealer in the district. Nearest tractor dealers are situated in Vansda in Navsari
district and Dharampur in Valsad district. Besides, the farmers get spares and other implements
from Vyara in Surat district.
c) The district does not have any workshop / service center / garage for maintenance and repairs of
tractors / power tillers.
d) Both the Agriculture and Horticulture Departments are promoting the use of tractors and power
tillers. The growing demand for power tillers is for its low cost, multipurpose utility and better
suitability in horticultural crops with inter-cropping due to its smaller size and maneuverability.
e) Power tillers are better suited for medium and small holdings. A trolley can be attached to the power
tiller for transporting agricultural produce. These are also fuel-efficient and can be put to many uses

17
 PLP 2019-20
DANG
like tractors. Farmers need to be made aware of this, so that they do not unnecessarily invest more
money in buying tractors for their requirement.
f) Agricultural machines like paddy reapers are needed more in areas of labour shortage during
harvest season.
g) Bullock-drawn implements are also useful like tractor-driven ones in reducing drudgery, improving
productivity of land and labour. These need encouragement.

2.1.3.4 Suggested Action Points

Banks

d) The implements like rotavators may be popularized. Agri-entrepreneurs, agri-graduates and

progressive farmers may be encouraged to provide implements & tools, machinery, tractors and
other farm implements on custom-hire basis.
e) NABARD has been permitting all banks to claim refinance even in respect of financing of second-
hand tractors, subject, however, to certain terms and conditions. This policy is certain to increase
the pace of farm mechanization in the hinterland. Banks should create widespread awareness
among the farming communities at branch levels about this relaxation through Farmers’
Meets/Farmers’ Clubs.

Departments

a) Farmers may be encouraged to go in for other farm implements like mould broad ploughs, trailers,
cultivators, cage wheel, disc harrow, seed drill, portable pump set with accessories, power thresher,
winnower, self-propelled reaper, sprayer, pruner, weeder, grass cutter, etc.
b) Farm mechanization programme has to be sufficiently tagged with the integrated development of
the rural area.
c) New and modern farm machinery sales depots, including Agro Service Centers, should be
established throughout the district.
(d) There is a need to educate the farmers about appropriate, low-cost technology that can improve the
energy efficiency and utilization. Improved farm equipment, be it power-operated/Bullock-
operated/manually-operated, can also be considered for promotion in which, Farmers’ clubs/SHGs
can play very important roles.

18
 PLP 2019-20
DANG

2.1.4 Plantation and Horticulture, including Sericulture

2.1.4.1 Introduction

Horticulture sector that includes production, postharvest management, processing, marketing and
export of wide range of crops such as fruits, vegetables, flowers, spices, plantation crops, medicinal and
aromatic plants contributes significantly to the economy of the country as well as State. Growing
plantation & horticulture crops is an ideal option to improve livelihood security, enhance employment
generation, attain food & nutritional security and increase income through value addition. Since the
past decade, India has witnessed a huge demand for horticultural produce from domestic market due
to increase in per capita income and shift in consumption pattern of the population and international
markets as well. This phenomenon has provided a big opportunity to the farmers for fetching higher
income through high value horticultural crops.

The agro- climatic conditions prevailing in the district are suitable for cultivation of fruits like Mango,
Banana, Custard Apple (Sitaphal), Sapota (Chikoo), Aonla, Lime, and vegetables like Potato, Onion,
Brinjal, Ladies finger, Carrots, etc.

Area and production of major horticulture crops in the district during last three years is presented
below:

(Area in Hectares)
Crop/Activity 2016-17 2017-18 2018-19

Area Production Area Production Area Production

Covered (MT) Covered (MT) Covered (MT)

Mango, Cashew 6398 36498 6486 37018 6575 37545

nut, Custard
apple, Sapota,
Banana, etc.
Spice & 240 5413 243 5482 247 5552
condiments like
Chilli, Garlic,
Ginger and
Turmeric
Vegetables - 5686 114341 5766 116389 5847 118473
Brinjal, Lady
Finger,
Cucurbits,
Tomato, etc.
Floriculture 193 1646 199 1697 205 1749
(Rose and
Marigold)
Total 12517 157898 12694 160586 12874 163319

2.1.4.2 Assessment of Potential for the Year 2019-20

The potential of physical units that can be covered under bank finance during the year 2019-20 is as
follows. Block-wise bifurcation of potential is given in Annexure-I.

19
 PLP 2019-20
DANG

(₹ Lakh)
Sr. Activity PLP 2019-20
No. Unit Cost Phy Units TFO Bank
(per Ha) (Ha) Loan
1 Mango 0.90 300 270.00 243.00
2 Sapota 0.90 100 90.00 81.00
3 Oil Palm 0.58 70 40.60 36.54
4 Other (lime, guava, custard apple, etc.) 1.45 50 72.50 61.63
5 Medicinal Crops 3.95 75 296.25 251.81
6 Greenhouse Horticulture (1000 SM) 9.35 45 420.75 357.64
Total 640 1190.10 1031.62

2.1.4.3. Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed:

a) The Horticulture Department has several State and Central Govt. Schemes with subsidy component
to develop horticultural crops in the district. The schemes are for purchase of plants and grafts,
canning, kitchen garden, vegetable development and other equipment for plant protection.
b) There are 2 Government Nurseries in the district.
c) There are no processing units, cold storage and net house in the district.
d) There is a Govt. Collection Centre for medicinal plants in the district. The raw materials for different
medicines are collected at the centre. Collected raw materials are converted into Choorna (powder
form) at the centre and directly sold to the Ayurveda hospitals and dispensaries in the State. Rates
for medicinal plants are fixed by the district authorities.
e) There is also Dang District Ayurvedic Pharmacy Sahakari Mandal Ltd. which prepares Ayurvedic
formulations and markets it. It sources its raw materials mostly from wholesale market in Mumbai
as the locally available materials suffer from both poor quality and low volume.
f) Fruit processing activities can be encouraged by setting up Exclusive Processing Zones with
infrastructural facilities like graders, dehydrators, cold storage, etc. There is an urgent need for more
value-addition centres and facilities for post-harvest extension services with private investment.
This would encourage more farmers to take to horticultural crops.
g) The low-cost Greenhouses developed by Navsari Agriculture University, considered very suitable
for vegetables and nurseries, should be propagated extensively.
h) There is a need to promote organic farming produce and its certification facilities. Contract farming
for high-value produce with export demand may be identified and encouraged.
i) There is a need to establish Common Service Centers for collection, grading and packing for value-
addition.
2.1.4.4 Suggested Action Points
Banks
a) Banks may focus on setting up of Agri-Clinics and Agri-Business Centres, soil and water testing
laboratories, pest diagnostic and control services, custom-hiring of agricultural implements, setting
up of apiaries, vermin-compost units, tissue culture labs, etc.
b) Banks may identify suitable entrepreneurs and encourage them to establish cold chains, cold
storages / onion storages / rural godowns with the required credit support.

Government Departments
a) The Department of Horticulture may be strengthened with additional complement of technical and
field staff to meet the increasing needs of development and extension works.
b) Linkage of beneficiaries of NHM with banks should be done by the Department of Horticulture on
a large scale for successful implementation of NHM/Micro Irrigation programmes.
c) State Government may popularize and promote contract farming, commodity interest groups /
farmers’ interest groups, etc. with necessary guidance and support services.

20
 PLP 2019-20
DANG
2.1.5 Forestry and Wasteland Development

2.1.5.1 Introduction

Forests are known to check floods and soil erosion, ensure moisture conservation, regulate stream flows
and fix atmospheric carbon as biomass and organic carbon in soil. They are beneficial for agriculture,
maintain ecological balance and also contribute to the sustainability of the forest-dependent
communities. Forests provide valuable items such as timber, paper, fuel wood, bamboo, cane, food,
forest produce, honey, medicinal plants, etc.

According to the National Forest Policy 1988, one-third of the geographical area of the country should
be maintained as forest and tree cover. According to the State of Forest Report (2015), Gujarat has
only 7.48% of its geographical area declared as forest which is much below the national average. Gujarat
Forest Department has launched a "Social Forestry Programme" for planting trees on non-forest lands,
which has since made Gujarat a pioneer and leading State in this field.

The reserved forests in the Dang are amongst the richest forests in the whole of Gujarat. While in some
parts, there is a monoculture of teak trees, there is great biodiversity in other parts with Sadad
(Terminalia crenulata), Khair (Acacia catechu), Khakro (Butea monosperma), Umbero (Ficus
racemosa), Rayan (Manilkera hexandra), bamboo and many other timber species. The forests of Dang
are also a resource for medicinal plants, like Mardasingi (Helicteres ixora) and Baheda (Tecome stans
microcarpa). Of the geographical land area of 172357 ha in the District, 101690 ha is under forest,
constituting 59% of the former that compares favourably with the low State average of less than 10%.
An aggregate of 728 ha of land has been categorized as “wasteland”.

The Forest Rights Act (FRA)-2006, an Act by the Govt of India, Ministry of Tribal Affairs, is being
implemented in the State. The Act envisages registering & conferring the traditional habitat, social,
economic and livelihood rights of the ST and other traditional forest dwellers in both Scheduled and
Non-Scheduled forest areas. FRA-2006 provides for individual, community and infrastructure facility
rights. Under the said Act, the government has provided land cultivation rights to the tribals so that the
middlemen and vested interests cannot usurp their lands. The State Govt has issued land allocation
letters to more than 15,000 tribals covering more than 95000 acre forest land in 5 tribal districts.

2.1.5.2 Assessment of credit potential for the period 2019-20

The potential physical units that can be covered under bank finance during the year 2019-20 are given
as under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Sr. No. Activity PLP 2019-20
Unit Cost Phy Units TFO Bank Loan
(per Ha) (Ha)
1 Farm Forestry 0.25 150 37.50 31.88
2 Jatropha 0.75 80 60.00 51.00
3 Bamboo Cultivation 0.45 80 36.00 30.60
4 Social Forestry 1.10 80 88.00 74.80
Total 390 221.50 188.28

2.1.5.3 Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed:

a) There are 135 Minor Forest Produces (MFPs) that are available / collected at various locations in
the State out of which, 41 MFPs are available / collected in the district of Dang.

21
 PLP 2019-20
DANG
b) There are two Divisional Offices of Forest Department at the Head Quarter of the district at Ahwa
that provide guidance to the farmers and also supply saplings at subsidized rates to individuals for
plantation.
c) Gujarat State Forest Development Corporation has developed adequate infrastructure like
demonstration plots, nurseries, minor forest produce depots, etc. for training of farmers, processing
of forest outputs and marketing thereof.
d) There are many schemes in operation by the State Government such as rejuvenation of degraded
land through forestry where the Forest Department is giving plants. Under Kisan Nursery Scheme,
individual farmers are encouraged to grow saplings on their farms against certain payments.
e) A convergence between NREGA and the National Afforestation Programme is required which would
help in increasing the vegetative cover to check soil erosion and giving a boost to afforestation. This
would result in increased income generation and better management of land and water resources.
f) Bamboo, a versatile grass, is yet another crop whose potential has remained untapped. There is a
wide scope for growing bamboo, both in the forest and non-forest areas, and thereby generating
additional income for the farmers as also regenerating the soil health.
g) Enhancement of forest cover and tree cover is a new and emerging activity. Farmers are not inclined
to switch over to teak wood plantation because of inordinately long gestation period and the
cumbersome process of obtaining finance for the same. Necessary guidance from Forest
Department will obviate the problem.

2.1.5.4 Suggested Action Points

Banks

a) The controlling offices of banks may organize sensitization workshops, seminars and awareness
programmes for branch managers along with forest officers, NGOs and a few progressive farmers
in the district. The scope for financing under farm forestry, Bamboo Development and Jatropha
plantation in private wastelands may be brought to the notice of all the concerned.
b) The banks may also arrange for circulation of bankable models amongst its customers to create
awareness about availability of credit as well as Govt. subsidies for various projects under Forestry
and Wasteland Development.

Departments

a) The Forest Department may provide the necessary technical guidance to the farmers and the banks
about the existing felling and transit rules.
b) Small and marginal farmers with fragmented and small land-holding are reluctant in taking up farm
forestry block plantations in their own land although the land is found more suitable for forestry.
Therefore, bund plantation with species having less shade effect could be promoted among these
farmers as agro-forestry models.
c) The FDCM may, in co-ordination with the Forest Department, explore the scope for contract
farming of commodities falling under minor forest produce. Training may be organized for tribals
in collection and handling of MFPs.
d) Wasteland Development through Gram Panchayats and SHGs.
(e) Government Schemes like rejuvenation of degraded land through forestry, Kisan Nursery Scheme,
Social Forestry, etc. are in operation. However, the awareness amongst farmers on other schemes
requires to be spread via “Vana Mahotsav” to promote this sector.

22
 PLP 2019-20
DANG
2.1.6 Animal Husbandry – Dairy Development

2.1.6.1 Introduction

Dairy is an important sub-sector of agriculture and plays a pivotal role in sustainable development of
rural areas of Gujarat. It occupies a unique position among rural employment opportunities, as it fits
well into the seasonally-employed agrarian community as well as labour force dependent on agriculture.
Rearing of milch animals, basically for milk production, is the major activity under this sub-sector. The
socio-economic conditions of the district enhance the necessity to promote dairy activity as an
additional source of income and for employment generation. Among the small / marginal farmers,
women and landless labourers, rearing of milch animals is the most important subsidiary occupation
next to crop production.

In Dang district, Dairy is an important source of subsidiary income for small and marginal farmers and
labourers. As per the 19th Livestock Census, 2012, the population of cattle was 78160 of which, cross-
bred (HF) and indigenous cattle population was 9980 and 68180 respectively. The population of
buffaloes was 24767. The total milk production during 2016-17 was around 22000 MT.
2.1.6.2 Assessment of Potential for the Year 2019-20
The potential physical units that can be covered under bank finance during the year 2019-20 are given
as under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Sr. Activity PLP 2019-20
No. Dairy Development Unit Cost Phy Units TFO Bank
(No.) Loan
1 C .B. cows (two unit) 0.91 620 564.20 507.78
2 Buffalo (two unit) 1.30 250 325.00 292.50
3 Indigenous Cows (two unit) 1.20 250 300.00 270.00
4 Misc. (Gauchar/Fodder Land 1.00 30 30.00 27.00
Development/Milk Houses/Milk-
O-Tester)
Total 1150 1219.20 1097.28

2.1.6.3 Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed:

a) The establishment of the Valsad District Cooperative Milk Producers Union Ltd., “Vasudhara
Dairy”, at Alipore in the Navsari District in 1972 has been the principal source of development of
dairy in the District. It covers the 3 districts of Navsari, Valsad and Dang. Organized dairy is almost
entirely run by the Vasudhara Dairy in the district.
b) There are 15 Veterinary/Branch Veterinary Dispensaries, 9 First Aid Veterinary Centres, 9
supportive veterinary infrastructure with RPHVC & KVS and 2 Mobile Veterinary Dispensaries at
Vansda which is nearest to Dang. Besides, 6 AI Sub-Centres under Intensive Cattle Development
Programme (ICDP) of the State Government also exist. Moreover, Vasudhara Dairy has more than
40 AI centres.
c) Department of AH may augment institutional support by setting up additional Veterinary Aid
Centers/Artificial Insemination Centers in district as compared to the animals available in the
district.
d) Good-quality milch cows/buffaloes are not locally available and are brought in from outside through
a wide network of traders. The cattle fairs are sometimes held, though not in much organized ways,
depending on the general demand as also the need by DRDA and Animal Husbandry Department.
e) Government support is required for setting up of Breeding Farm in the district so that good quality
animals will be available to farmers.

23
 PLP 2019-20
DANG
2.1.6.4 Suggestion/Action Points

Banks
a) In case of small farmers having low resources, banks may consider focusing on financing indigenous
cows and graded buffaloes, rather than very high-yielding, cross-bred cows with the highest exotic
inheritance ( HF, F1, F2 ) requiring high level of management and feeding practices.
b) Banks may encourage dairy development by adopting area-based approach for financing in clusters
and taking into account the location of chilling/processing plants and other linkages.
c) DCCB may play a major role in financing for dairy activities through SHGs.
d) Keeping in view the huge number of SHGs taht are taking up dairy activity, it is necessary to upgrade
the non-descript stock on a large scale to improve the local availability of quality animals in the
district.

Government Departments

a) Existing Veterinary facilities will have to be enhanced and manned adequately so as to cater to the
growing needs of farmers for taking up dairy as an activity for development.
b) Cattle feed plant under co-operative sector can be set up in the district.
c) One Fodder Development Scheme needs to be taken up in the district.
d) Steps may be taken to improve the functioning of the primary milk producers’ cooperative societies
to augment the daily milk collection as well as credit flow.
e) There is a need to do away with the middlemen so that the farmers can procure animals at more
competitive rates. There is an urgent need for intensive cross-breeding programmes to be carried
out for rearing of quality-animals locally.
f) More milk routes and chilling plants would be required to be developed in the interior pockets for a
proper development of dairy industry in the District.
g) There is need for a better co-ordination and linkage between the concerned Govt. agencies and
financing banks.

2.1.6.5. Doubling of Farmers’ Income by 2022

As per Vasudhara Dairy statistics, more than 80% of its milk procurement is from the farmers who are
having four or less milch animals. This proves that dairy activity provides very good alternative for
income enhancement for the farmers. For success of any economic activity, availability of markets and
strong forward linkages are of utmost importance. In case of milk, Vasudhara Dairy is ready to purchase
virtually any quantity of milk produced by the farmers at very competitive prices and provides excellent
opportunity to farmers to take up dairy activity to double their income.

24
 PLP 2019-20
DANG

2.1.7 Animal Husbandry – Poultry Development

2.1.7.1 Introduction

Poultry farming for meat as well as for egg production holds a unique position in widely varying
agricultural zones, requires small space and is capable of generating quick returns all year round.
Therefore, the activity is an attractive economic proposition both in rural and semi-urban areas. Poultry
development is considered as an important allied commercial activity in the district. The agro-climatic
conditions of the District are suitable for poultry farming.

The agro climatic conditions of Dang district are suitable for the growth of poultry sector. As per the
19th Livestock Census, 2012, the total poultry in the district consists of 193452 desi birds, 3000
improved poultry birds and 490 ducks. The annual eggs and meat production was estimated at more
than 56 lakh and 10500 kgs respectively. Poultry is being kept both for household as well as commercial
purposes. In commercial use, eggs and meat fetch good market prices. Poultry production is mostly
present in the Subir region in the North Dang because of its proximity to Navapur (Maharashtra) which
is just 20 Kms away from the border and serves as a distribution and marketing center.
2.1.7.2 Assessment of Potential for the Year 2019-20
The potential physical units that can be covered under bank finance during the year 2019-20 are given
as under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Sr. Activity PLP 2019-20
No. Poultry Development Unit Cost Phy Units (No.) TFO Bank Loan
1 Rhode Island Red – 500- 1.20 95 114.00 102.60
bird unit
2 Broiler – 500-bird unit 1.80 85 153.00 137.70
POULTRY TOTAL 180 267.00 240.30

2.1.7.3 Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed:

a) There are three Poultry Extension Centers in Dang district run by State Government’s Animal
Husbandry Department but there is no Intensive Poultry Development Center. These poultry
centers provide extension services free of charge to the poultry farmers for vaccination, debeaking,
supply of general medicines to the birds, post-mortem facility, etc.
b) Besides, there is one District Poultry Farm at Ahwa which caters to the needs of Layer units in the
district.
c) Medicines are available from the District Extension Center and from the nearby districts of Navsari
and Valsad.
d) The day-old chicks are purchased from Mandvi in Surat District and Navapur of Maharashtra.
There is no hatchery in Dang district.
e) The poultry market in the District is a 'live' market with no element of 'processed' poultry products.
f) Subsidised rate for poultry feed may be provided by Government for development of this sector.
g) Government may set up hachery at the district for beter availability of Day-Old Chicks.

2.1.7.4 Suggested Action Points

Banks
a) Poultry unit could be expanded on the line of VCF through tie up with corporates/ private units,
besides exploring assistance under special subsidy schemes and RSVY.
b) Contract broiler farming could be explored in tie-up with M/s Venkateswara Hatchery, Hyderabad.

25
 PLP 2019-20
DANG
Govt. Departments

a) Backyard poultry with Low-input Technology birds could be promoted as an income-generating

activity through SHGs in coordination with banks .
b) AH Department may conduct training programmes for entrepreneurs on commercial poultry
farming and backyard Poultry with Low-input Technology birds.
c) AH Department may make efforts to promote backyard poultry with improved Low-input
Technology birds and Duck rearing, especially among tribals and through SHGs.
d) Encouraging integrated units to minimise feed/other costs, as the single largest cost component in
egg production is feed cost.

26
 PLP 2019-20
DANG
2.1.8 Animal Husbandry – Sheep, Goat and Piggery

2.1.8.1 Introduction

Sheep and goats serve as a source of subsidiary income to a large number of people living in rural areas.
The income comes from sale of wool, meat, manure and skin of animals. Farmers can take up goat
rearing in villages and in private wastelands which can improve their financial position substantially. It
also creates gainful employment for the unskilled youth. The district has the capability of production
and market for meat. Dang being a tribal district, there is a potential for goat development. The sheep
and goat population of the district as per the Livestock Census, 2012 are 6 and 29568 respectively.
2.1.8.2. Assessment of Potential for the Year 2019-20

The potential physical units that can be covered under bank finance during the year 2019-20 are given
as under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Sr. Activity PLP 2019-20
No. Animal Husbandry - Sheep / Unit Cost Phy Units (No.) TFO Bank Loan
Goat / Piggery Development
1 Goat (10 + 1) 0.45 150 67.50 60.75

2.1.8.3. Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed

a) The sheep rearing activity in the district is negligible.

b) Breeding and quality upgradation facilities for these animals are lacking that need to be provided.
c) Lack of training, illiteracy and lack of awareness among butchers hamper the growth of animal
husbandry business in the district.
d) There is no Slaughter House in the district. However, goats are commonly slaughtered.
e) No common grazing lands are available.
f) Gujarat Sheep and Wool Development Corporation (GSWDC) does not have any farm in entire
south Gujarat. There are no ISDP Centres/District Extension Centres in south Gujarat.
g) Government may set up a Breeding Farm for supply of breedable sheep/Goat to farmers.
h) Since SC/ ST population is more and goat-rearing is a traditional activity for them, one training
centre is required at the district level.

2.1.8.4. Suggestion/ Action Points

Banks

Banks may explore the possibility of financing for small goat units to the tribals and SHGs.

Govt. Departments

a) Dept. of Animal Husbandry may establish a goat breeding farm for supply of good-quality bucks to
the farmers and also for facilitating training to them.
b) AH department may conduct intensive training for farmers and SHGs on stall-fed goat units.
c) At least one ISDP center may be opened in the district by GSWDC.
d) Efforts may be made for Goat Development in the hilly parts of the district.

27
 PLP 2019-20
DANG
2.1.9 Fisheries

2.1.9.1 Introduction

Holistic development of fisheries along the coastal areas through involvement of fisher community and
fish farmers, keeping in view the sustainability, bio-security and environmental concern, is a planned
priority in the district. Fisheries has been recognized as a powerful income and employment generating
sector as it stimulates growth of numerous subsidiary industries and is a source of protein-rich
nutritious food, besides being a foreign exchange earner. The inland fisheries resource of the district
are divided into capture and culture fisheries. Capture fisheries refers to exploitation of naturally
available resource without much stock manipulation in rivers, reservoirs and large lakes. Culture
fisheries involves inland aquaculture of fish and prawn in small and confined water bodies such as
existing ponds, tanks as also newly-confined, excavated ponds in water-retaining soils.
2.1.9.2 Assessment of Credit Potential for the Year 2019- 20
The potential under Inland Fisheries for the year 2019-20 is assessed at Rs.85.00 lakh. Detailed
assessment of potential for 2019- 20 (physical & financial) is given in the following Table:
(₹ Lakh)
Sr. Activity Unit Physical Unit Cost Total Fin. Bank
No. (Nos/Ha) Units Outlay Loan

1 River Fishing Unit Nos 5 1.00 5.00 4.25

2 New Ponds Ha. 10 7.00 70.00 59.50
3 Renovation of Existing Ha. 5 3.50 17.50 14.88
Ponds
4 Fresh Water Fish Ha. 5 1.50 7.50 6.38
Culture
Total 25 100.00 85.00

The Block wise assessment of credit potential is given in Annexure I.

2.1.9.3 Availability of Infrastructure

a) There are no major reservoirs in the district. However, there are good number of check dams and
percolation tanks constructed under various schemes, which have formed small water bodies with
aggregate surface area of approximately 220 Ha.
b) The FFDA may create awareness and provide more training and guidance in formulation of projects.
c) Marketing and service unit facilities should be created.

2.1.9.4. Suggested Action Points

Banks
a) Banks may provide adequate credit facilities for fisheries projects.
b) Banks may extend assistance for post-harvest technologies like fish drying, etc.

Government Departments
a) FFDA may motivate the farming community to undertake fresh water prawn farming through their
intensive extension programme.
b) FFDA may organize awareness workshops for farmers and bankers.
c) SHGs may be encouraged to attempt fish culture in Panchayat tanks.

28
 PLP 2019-20
DANG
d) Extension services by the Fisheries Department for production and marketing of fish may be
stepped up.

(e) Fisheries department of the district may plan preparation of area-based Schemes involving banks
for identified region of the district having availability of backward and forward linkages in
association with NABARD and other stakeholders with monitoring mechanism for upgrading the
schemes, including mid-term correction in existing schemes, if warranted.
(f) Specific training programme for upgradation of skills of SF/MF/SHGs/JLGs on culture-cum-
capture fishery in small and medium reservoirs and lakes need to be planned by the FFDA, GOG by
availing the financial assistance under NFDB schemes which have been merged under the Umbrella
of Blue Revolution. This will greatly facilitate banking sector in accelerating credit flow, doubling
the fishermen’s income and also capital formation in fishery sector of the district.

29
 PLP 2019-20
DANG

2.1.10 Farm Credit - Other

2.1.10.1 Introduction

The financing of bullocks, bullock carts/camels is mostly done under Government-sponsored

programmes. The plough animals are generally used by small / marginal farmers for ploughing and
transportation purposes. Total farm power availability has increased from 0.25 kW/ha in 1951 with
animal power contributing 97.4 percent to 1.15 kW/ha in 1997 with animate sources contributing only
22.7 percent. The availability of draught animals is reducing. In Dang, the hilly terrain and the
fragmented land holdings are suitable for animate farming.

As per Livestock Census, 2012, 67410 (male cattle & buffaloes) are available for agriculture & bullock
cart purposes, besides 11 donkeys for miscellaneous purposes. As far as fodder is concerned, green
fodder is available only in limited quantity. Oilseed cake is locally available. Spares for carts are available
locally in sufficient quantity and are of good quality. Repair services are also available locally.
2.1.10.2. Assessment of Potential for the Year 2019-20

The potential physical units that can be covered under bank finance during the year 2019-20 are given
as under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Sr. No. Activity PLP 2019-20
Unit Cost Phy. Units (No.) TFO Bank Loan
1 Bullocks 0.35 55 19.25 17.33
2 Green Credit Card 1.00 200 200.00 200.00
TOTAL 255 219.25 217.33

Green Kisan Credit Card, a unique scheme, has been launched for the first time in the State in the Dang
Dist. Under the scheme, tribal farmers would offer the ‘malki trees’ (trees on private ownership land
whose rights have been given to the tribal land owners by the Forest Dept.) as collateral for any bank
loan with a counter-guarantee from DFO. The bank would assess the value of the teak / other trees &
disburse the loan (50% of the value of trees) amount after receiving the consent from DFO Office.

2.1.10.3. Suggested Action Points

a) Agri. Dept. and Zilla Panchayat may, through its extension services, spread awareness about
improved bullock carts.
b) More veterinary institutes may be necessary to cater the health care needs of draught animals in the
district.
c) Good quality draught animals may be made available for agriculture purpose.

30
 PLP 2019-20
DANG
2.2 Agriculture Infrastructure

2.2.1 Construction of Storage and Marketing Infrastructure (Warehouses/ Godowns,

Market Yards, Silos, Cold Storage Units/ Cold Chains)

2.2.1.0 Introduction

It is observed that 25 to 40 % of the agricultural produce is wasted because of inadequate storage and
this necessitates adequate scientific storage and handling to minimize post-harvest losses and to
maintain nutritional quality for the consumer. The farmers also need efficient marketing arrangement
for realizing fair and remunerative prices for their agricultural produce. Therefore, it is essential to
develop the right type of product-specific marketing and storage facilities at various locations which are
accessible to farmers and primary processors.
Interest subvention for loans against Negotiable Warehouse Receipts

In order to discourage distress sale by farmers and to encourage them to store their produce in
registered warehouses against Warehouse Receipts issued by Warehousing Development & Regulatory
Authority (WDRA), the benefits of interest subvention is available to small and marginal farmers having
Kisan Credit Card for a further period of up to six months post-harvest on the same rate as available to
crop loan against negotiable warehouse receipts for keeping their produce in warehouses

2.2.1.1 Assessment of Credit Potential for the Year 2019-20

Assessment for the year 2019-20 has been made at ₹ 8544.37 lakh. The block-wise, item wise
potential credit requirement during the year 2019-20 has been indicated in the Annexure –I.
(₹ Lakh)
Sr. Activity PLP 2019-20)
No. Unit Unit Phy. TFO Bank
(No/Area) Cost Units Loan
1 Cold Storage
(i) 1500 MT Unit (Cost per MT No. 157.50 3 472.50 354.38
Rs.10500)
(ii) 1000 MT Unit (Cost per MT No. 105.0 4 420.00 315.00
Rs.10500) 0
2 Storage Godown- General (500 MT) No. 52.50 5 262.50 196.88
Storage Godown/Market Yard Total 12 1155.00 866.25

2.2.1.2 Availability of Infrastructure, Critical Gaps & Interventions required

a) National Horticultural Board (NHB)’s Capital Investment Subsidy Scheme for

Construction/Modernization/Expansion of Cold Storage and Storage for Horticulture Produce need
to be popularized by the Banks as well as other development agencies.
b) The general awareness about such schemes, even at the level of banks and Govt. Departments, has
been found to be inadequate.
c) Banks need to augment their technical skill and manpower for appraisal of cold storage/rural
godown/infrastructure projects.

Critical Intervention Required for Creating a Definitive Impact in the Sector

a) All godowns above 1000 MT capacity need to be registered with the Warehousing Development
& Regulatory Authority after due accreditation. Legal provisions have been made. There is a
need for creation of awareness.

31
 PLP 2019-20
DANG
b) Negotiable Warehouse Receipt system may be encouraged to reduce the distress sale
immediately after harvest.
c) Benefits may be derived from the Warehouse Infrastructure Fund of NABARD in order to
obtain credit and non-credit support for Green field projects of public as well as private sector
entities, For renovation/repairs/ modernisation of existing warehouses and for upgrading
infrastructure/ amenities in the existing warehouses of Primary Agriculture Co-operative
Societies (PACS) and other Co-operative Societies to make them storage worthy.

2.2.1.3 Suggested Action Points

Banks

a) Banks should identify eligible customers and sanction loan for construction of godowns by availing
subsidy assistance through NABARD.
b) The Banks also, in general, need to augment their technical skill and manpower for appraisal of
rural godown/infrastructure projects.

Government Departments

a) There needs to be at least one Agriculture Produce Market Yard in the District.
b) The electricity supply in the District is not very stable, that may hamper the effective operations of
cold storage and milk chilling units. GSEB should modernize its transmission lines and power grids
and may consider availing of NABARD’s RIDF assistance whose coverage of eligible activities has
now been expanded to include such modernization in rural region.
c) As Govt. of Gujarat has enacted a new APMC Act, the district should derive maximum benefits under
the “Integrated Scheme for Agriculture Marketing (ISAM)” with a reform-linked and credit-linked
investment subsidy of 25% of the capital cost up to ₹ 50 lakhs on each project providing direct
service delivery to producers/farming community in post-harvest management/marketing of their
produce.

32
 PLP 2019-20
DANG
2.2.2 Land Development, Soil Conservation and Watershed Development

2.2.2.0 Introduction

Soil and water are the two basic natural resources in agriculture. Therefore, they must be consumed
well and used scientifically to ensure sustained level of production and productivity. Soil erosion/
deterioration has become a major problem in Indian context, seriously threatening soil productivity.
Natural factors (flood, wind, rain, etc.) and man-made factors (cultivating heavy crops year after year,
deforestation, excessive use of water for irrigation, indiscriminate use of chemical fertilizers and
pesticides, neglect of environment, etc.) have contributed to the deterioration process. Land
development and restoration and afforestation, therefore, need to be adopted on a war footing. The land
development activity generally includes land levelling, bunding, land drainage, water harvesting, soil
and water conservation, soil fertility restoration / enhancement (like reclamation), organic farming
techniques (like use of bio-fertilisers and bio-pesticides), improved agronomic practices, etc. With the
increase in population and pressure on land, it has become necessary to increase the productivity of
land by its suitable development.

Dang district is one of the smaller districts in Gujarat and land development as an activity has significant
role in its agriculture. The entire district is predominantly tribal and mostly covered by forest. The
terrain of the district is undulating and hilly. The agriculture cultivation is patchy and restricted to open
plateaus and valleys. Soil is poor in fertility and highly eroded.

The geographical area of the district is 1,72,357 hectares. Out of this, 1,01,690 ha of land is covered
under forest. The land under cultivation is 57,910 ha. Fallow land in the district is 467 ha whereas the
Gauchar land is 439 ha. Therefore, there is high pressure on land as a major portion thereof is forest
land (59%) and only a limited land is available for agriculture to support a growing population. Another
limiting factor is the fact that more than 68% of the land is situated on slopes.

Major Priorities of the State Government

Government of Gujarat has taken up the programme for Soil Health Card for all farmers. This requires
a lot of infrastructure in the form of soil testing centres. A minimum of one Soil Testing Centre for each
taluka needs to be created. In addition to Government investment, private investment also should be
encouraged as an agri-business activity. Further, prevention of erosion and salinity ingress is one of the
important areas needing urgent investment in South Gujarat, Saurashtra and Kutch coastal regions.
Rainwater harvesting structures / water conservation measures / check dams/ farm ponds would
require investments in all regions. In addition to this, other purposes such as natural resources
conservation through land levelling, establishment of research station on reclamation of problematic
soils, etc. also need Government support.

The terrain of Dang is mostly Deccan trap and underlying stratum is rocky. The soil type ranges from
red to black. Red soil is found on the upper parts of the valley & black soil is found in the plains of
western Dang. In some parts, medium loam to sandy loam type is found. Soil fertility is poor and the
land is subject to heavy erosion on slopes and terraces.

Soil Health Card Scheme (SHC)

It is a Government of India scheme promoted by the Department of Agriculture & Co-operation under
the Ministry of Agriculture. It will be implemented through the Department of Agriculture of all the
State and Union Territory Governments. A SHC is meant to give each farmer soil nutrient status of his
holding and advise him on the dosage of fertilizers and also the needed soil amendments that he should
apply to maintain soil health in the long run. SHC is a printed report that a farmer will be handed over
for each of his holdings. It will contain the status of his soil with respect to 12 parameters, namely, N,
P, K (Macro-nutrients); S (Secondary- nutrient); Zn, Fe, Cu, Mn, Bo (Micro-nutrients) and pH, EC, OC
(physical parameters). Based on this, the SHC will also indicate fertilizer recommendations and soil
amendment required for the farm. The Card will contain an advisory based on the soil nutrient status

33
 PLP 2019-20
DANG
of a farmer’s holding. It will show recommendations on dosage of different nutrients needed. Further,
it will advise the farmer on the fertilizers and their quantities that he should apply and also the soil
amendments that he should undertake in order to realize maximum yields. The Scheme may be
promoted in the district in order to improve the soil quality and optimal yield of the farmer.
2.2.2.1 Assessment of Potential for the Year 2019-20
The potential activities that could be covered under bank finance during the year 2018-19 are given as
under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Sr. Land Development, PLP 2019-20
No. Soil Conservation, Unit Unit Physical Units TFO Bank
Watershed Cost (Ha) Loan
Development
1 LD (Levelling/ Ha 0.17 500 85.00 76.50
Bunding/Grading)
2 Farm Pond/water Ha 0.41 500 205.00 184.50
harvesting structure
(unlined ponds)
3 Silt application Ha 0.14 500 70.00 63.00
4 Field Channel lining No. 0.17 350 59.50 53.55
(generally 50 to 75
mtrs)
Total 1850 419.50 377.55

2.2.2.2 Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed
a. There are 2 Soil Testing Labs – one at KVK, Waghai in Dang District and another in Vansda in
Navsari District.
b. Earth moving machinery like tractors, etc. are available in the district on rental basis. There were
240 tractors, 17 threshers and 45 power tillers in the district.
c. Arrangement of marketing facilities for organic farming products needs to be developed so as to
motivate more farmers for adoption of organic farming.
d. There are many villages where farmers are producing traditional varieties of paddy without the use
of chemical fertilizers and pesticides. Such areas need to be tapped for organic farming and proper
guidance and demonstration may help in increasing the area under new varieties.

2.2.2.3 Suggested Action Points

Banks

a) The activities that can be financed by the Banks are improvement of cultivable & uncultivable land,
soil conservation, land levelling, contour trench, land shaping, loose boulder structure, land
terracing, water harvesting, contour bunding, farm ponds, gully control measures, nala plugging,
watershed development, gabion structure, fencing/bunding, water harvesting, vermicomposting,
barbed fencing, etc.
b) Banks may play proactive role in encouraging reclamation activities through credit on priority basis.
c) Banks may consider land development as one of the essential components in investment financing
in agriculture sector and lend for the same with extended repayment period.
d) Banks may formulate schemes for farmers who take up On-Farm Development Works such as land
leveling, bunding, field channels, drainage, etc. and extend financial assistance.

34
 PLP 2019-20
DANG
Government Departments

a) Conduct of workshops to create awareness for adopting integrated watershed management and land
development practices may be considered for the benefit of farmers. This is necessary as land
development is an activity with longer gestation periods and immediate returns are not available to
the farmers.
b) Micro watershed projects may be identified and implemented in all blocks.
c) Farmers’ Cooperatives, exclusively for promotion of organic farming which can also act as business
platform for the farmers, may be promoted.
d) Greater co-ordination in the working of the various line departments involved in land development
activities is vital for the further development of this sector.
e) GGRC may popularize drip irrigation scheme in the district.
(f) Awareness programme on i-Khedut portal may be undertaken by the related departments of GoG
as there is subsidy assistance available for certain land development activities.

35
 PLP 2019-20
DANG
2.2.3 Agriculture Infrastructure - Others

2.2.3.0 Introduction
The plant tissue culture, agri-biotechnology, seed production, bio-pesticide, bio-fertilizer and vermi-
composting have a great impact on the farm cultivation. The quality of soil is also very important for
increasing the production and productivity of agricultural produce. The prime objective of agriculture
is to maintain and improve the quality of soil and water with modern agricultural practices to achieve
the maximum productivity. Technologies, including plant breeding, tissue culture, bio-fertilizer, etc.
can help raise and stabilize yields and improve resistance to pests, diseases and abiotic stress. This can
immensely benefit both agriculture production and productivity. Small and marginal farmers living in
drought-prone areas stand to benefit a lot if such technologies are made available to them. In terms of
revised Priority Sector Guidelines, issued by RBI, investments such as tissue culture labs, seed
production units, bio-fertilizer / bio-pesticide units, vermi-compost units, etc. have been classified as
agriculture infrastructure items under agriculture credit, thus helping in their expansion.

Biotechnology: Biotechnology is modern technology that encompasses techniques such as

molecular biology, plant tissue culture, animal tissue culture, microbial and enzyme biotechnology,
agri-biotechnology, genetic engineering for developing better plant varieties, superior livestock, quality
seed production, process and product development, etc. Biological processes and product development
for benefit of mankind is the focus of this science. Hence, commercialization, business development,
environment concerns and Intellectual Property Right (IPR) are key features of biotechnology.
In addition use of bio-fertilizers, bio-pesticide, rhizobium biotechnology, bio-control agents, etc. need
to go up to replace use of chemicals by natural components. The Department of Biotechnology (DBT),
GoI looks after and formulates policies under biotechnology in the country. A well-developed field
testing trial policy for introducing genetically-modified (GM) varieties of commercially important fruits
and vegetables is in place.

Organic Farming primarily focuses on creation of an eco-system that can achieve sustainable
productivity without use of artificial external inputs such as chemical fertilizers and pesticides. The
associated activities could be organic production, organic processing, infrastructure support, etc. The
application of organic manure and bio-fertilizers, including the utilization of crop residues, agro-waste,
vermi-compost, etc. to improve the soil fertility, is central to organic farming.
Vermicomposting: Most of plant residues and cow dung are either burnt or put at undesired places
leading to soil and water pollution on one hand and loss of plant nutrient on the other.
Vermicomposting is an excellent method for recycling the farm wastes and cow dung into valuable
organic manure.
The entire district is predominantly tribal and mostly covered by forest. The terrain of the district is
undulating and hilly. The agriculture cultivation is patchy and restricted to open plateaus and valleys.
Soils are poor in fertility and highly eroded. The terrain is mostly Deccan trap & underlying stratum is
rocky. The soil type ranges from red to black. Red soil is found on the upper parts of the valley and black
soil is found in the plains of western Dang. In some parts, medium loam to sandy loam type is found.
Soil fertility is poor and the land is subject to heavy erosion on slopes and terraces.
2.2.3.1 Assessment of Potential for the Year 2019-20
The potential physical units that can be covered under bank finance during the year 2019-20 are given
as under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Activity PLP 2019-20
Others Unit Cost Phy Units (No.) TFO Bank Loan
Vermicomposting Units 0.32 450 144.00 129.60

36
 PLP 2019-20
DANG
2.2.3.2 Availability of Infrastructure, Critical Gaps and Interventions Required, Action
Points/Issues to be addressed

(a) The district has two soil testing laboratories. Further, Navsari Agriculture University, located in
Navsari, is also extending due support to agriculture development in Dang.
(b) Govt. may consider establishing facilities for certification of organic produce and their direct
marketing by the farmers.
(c) To educate farmers in proper use of organic fertilizers.
d) Project to halt salinity ingress should be taken up on a larger scale in coastal area of the district. It is
necessary to educate farmers on the benefit of silt application. Silt application is necessary to increase
the fertility of land, improve the ground water table and water storing capacity of the land.
e) There is a need to popularize rain water harvesting systems.

2.2.3.3 Suggested Action points

a) Banks may form Joint liability Groups/User Groups in completed command area and train them to
take organic farming.
b) Setting up of production units of bio-fertilizers, bio-pesticides, vermi-compost, etc. by individual
farmers/SHGs may be encouraged with the required financial support for increasing the supply of
such organic inputs while also enabling the farmers to avail of the benefits of the subsidy available
from KVIC/ under GoI Schemes.
c) Organic farming and export of fruits/vegetables (organically grown) are good business propositions
and banks may reach out to these farmers for credit requirements.
d) Farmers’ Cooperatives, exclusively for promotion of organic farming which can also act as business
platform for the farmers, may be promoted.
e) Marketing of organic manure may be encouraged and supported through publicity and creation of
awareness among the farmers.

37
 PLP 2019-20
DANG
2.3 Agriculture - Ancillary Activities

2.3.1 Food and Agro Processing

2.3.1.0 Introduction
Food processing industry in Gujarat is increasingly seen as a potential source for driving the Gujarat
economy. Gujarat is a leading State with impressive agriculture performance contributing about 10% to
the State’s GDP. The State has identified Agro and Food Processing industries as one of the thrust
industries in its Industrial Policy for 2016-2021. A well-developed food processing industry is expected
to increase the farm-gate prices, reduce wastages, ensure value-addition, promote crop diversification
and generate employment opportunities for the unskilled, semi-skilled and skilled manpower as well as
export earnings. The importance of agriculture and food processing can also be gauged from the fact
that agriculture contribute 18.6% of the Gujarat GSDP while food processing also contributes
significantly to the manufacturing GDP.
Agro & Food Processing holds the key for improving value-realizations to the farmers and growth of
additional employment. Realizing these potentials, GOI and NABARD have recognized agro-processing
as a thrust area and steps have been initiated to encourage processing of agricultural as well as
horticultural produces. As per RBI Guidelines, credit to food processing units with investment in plant
and machinery up to ₹10.00 crore shall be treated as priority sector advance. Horticultural crops as well
as high-value, agriculture crops play a significant role in the economic development of farmers. Ministry
of Food Processing Industries (MOFPI), GoI, is also implementing various schemes through banks.
Gujarat Agro Industries Corporation (GAIC), Government of Gujarat has been appointed as the Nodal
Agency by MOFPI for Gujarat. Small and suitable activities related to post-harvest management of fruits
and vegetables are also being supported by Government of Gujarat through the portal i-Khedut for a
centralized distribution of subsidy. Thus, the bank loan requirement may also increase due to such
initiative.
Development of food processing industry in the country is accorded top priority by the Government of
India as it is one of the most critical links in the agri value chain. Taking this agenda further, the Hon’ble
Finance Ministry, in 2014, announced setting up of a Special Fund of ₹ 2,000 crore in NABARD for
providing direct term loans at affordable rates of interest to Designated Food Parks (DFPs) and food
processing units in the DFPs. The objectives of the Fund are:
 To provide impetus to development of the food processing sector on a cluster basis in the country
 To reduce wastage of agricultural produce
 To create employment opportunities especially in rural areas.

2.3.1.1 Infrastructure and Support Services

Food processing is a link between primary sector (agriculture) and secondary sector (manufacturing).
Therefore, in addition to general infrastructure facilities like power, water, transport, the infrastructure
like storage/ warehousing, silo, cold storage & cold chain, APMC markets for raw material availability,
quality control laboratories, machinery and equipment, etc. also play an important role in growth and
development of the food industry. The growth of this sector requires support services of licensing
agencies, training and skill development institutes, marketing and branding services, etc.
Further, establishment of individual processing units within and outside the Designated Food Parks
(DFP) play a major role in mutual viability of these units.
Realizing the potentials, the State Government has come up with Gujarat Agri-business Policy,
2016. Government of Gujarat also extends various supports to the sector covering -

 Capital subsidy for setting up of new food processing units, cold store and cold chain
infrastructure, collection and primary processing centres and reefer vehicles
 Interest subsidy for Term-loan extended to above units
 Freight subsidy covering air freight subsidy and sea freight subsidy

38
 PLP 2019-20
DANG
 Incentive on power tariff, electricity duty and Registration/ stamp duty concession

2.3.1.2 Identified Gaps in Infrastructure and Support Services

 Volatile Prices of raw materials as also food security are major concerns. Post-harvest management
of crops is a major issue in Gujarat, as much as in the rest of India. This leads to distressed-sale at
low prices in post-harvesting season and higher prices later on.
 Fruit crops of Gujarat, like those of any other place, are highly perishable. Major fruit crops of
Gujarat include Banana, Papaya, Mango, Date Palms and Sapota. These fruit crops are highly
perishable and seasonal in nature, leading to a strong need for increasing the current processing
levels.
 There is also a skill-gap in human resources in Gujarat though many institutes are now offering
courses in food processing sector. However, there is still a need for training in the entire gamut of
food-processing chain like processing skills, quality control, phyto-hygiene, Government’s food-
related regulations, etc. at all levels of workforce and management in a unit.

2.3.1.3 Assessment of Credit Potential for the Year 2019-20

Assessment for the year 2019-20 has been made at ₹ 181.57 lakh. The block-wise, item-wise potential
credit requirement during the year 2019-20 has been indicated in the Annexure-I.
(₹ Lakh)
Sr. Activity Unit Unit PLP (2019-20)
No. (No./Area) Cost Physical TFO Bank
Units Loan
1 Flour Mill (Small Unit) No. 0.60 6 3.60 3.24
2 Rice/Poha Mill (Small Unit) No. 9.45 5 47.25 42.52
3 Nagli Papdi No. 0.80 30 24.00 21.60
4 Mango Pulp No. 0.75 10 7.50 6.75
5 Cashew Processing No. 1.60 15 24.00 21.60
6 Spices Making No. 0.75 10 7.50 6.75
7 Khova/Paneer Making No. 0.80 5 4.00 3.60
8 Butter, Cheese Making No. 5.25 5 26.25 23.63
F&AP - Term Loan-Total --- --- --- 144.10 129.68
8 Working Capital (40% of --- --- --- 0.00 51.88
Term Loan)
Agro- Processing Total --- 86 288.20 181.57

2.3.1.4 Suggestions and Action Points

Dang Being a hotspot for horticulture crops and orchards like mango, sapota, banana, cashew nut,
papaya, etc. and vegetables like okra, yam, creeper crops, etc., the area offers good scope for mooting
clusters of pack house and storage facilities along with processing and marketing. The suggested action
points are as under:
a) There is a strong need to increase the processing level of food crops and develop excellent post-
harvest management system to achieve the goal of food security and stable prices of food.
b) There is a strong need to improve the training to fill the skill gap of the industry. Government and
industry should come forward to jointly fulfill the gap.
c) DIC, Banks, RUDSETI, KVK, KVIC, KVIB, CED, Skill Development Centres, etc. available in the
district and their programmes of capacity building may be aimed for the targeted commodities
available in the districts. Cluster formation of the trained youth/farmers/SHG women may be given
priority to hand-hold and extend the desired credit support to promote successful entrepreneurs.

39
 PLP 2019-20
DANG
2.3.2 Agricultural Ancillary Activities - Others

2.3.2.1 Introduction

As per the revised RBI Guidelines on Priority Sectors, Loans to Primary Agriculture Credit Societies
(PACS) by banks, loans to Micro Finance Institutions (MFIs) for on-lending in agriculture sector and
Loans under Agri Clinic and Agri Business Centers (ACABC) scheme are included, among others, in
“Other Ancillary Activities” of Agriculture. Under ancillary activities, the following activities are
considered:

i. Loans up to ₹. 5 crore to Co-Operative Societies of farmers for disposing of the produce of

members.
ii. Loans for setting up of Agri-Clinics and Agri-Business Centres (ACBC)
iii. Loans for Food and Agro-processing up to an aggregate sanctioned limit of ₹ 100 crore per
borrower from the banking system.
iv. Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS)
and Large-sized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture.
v. Loans sanctioned by banks to MFIs for on-lending to agriculture sector

 Loans to Cooperative Societies of Farmers for Disposing of their Produce

Primary Agricultural Cooperative Credit Societies (PACS) undertake a wide variety of operations such
as lending, inputs sales, consumer goods sales, farm produce purchase and processing. Following the
implementation of Vaidyanathan Committee reforms, PACS are eligible to avail credit facility from any
financial institution other than the apex institution to which these are affiliated. Such lending by
commercial banks will qualify as priority sector advance under other ancillary activities of agriculture.

 Aggregation of Agri Produce

Nearly 66% of the farm holdings are less than 2 ha and cover about 30% of the cultivated area. There is
also a preponderance of marginal farmers owning 37% of the holdings but only 9% of land area.
Aggregation of produce by these farmers will put bargaining power in their hands when dealing with
the buyers of their produce. All such loans up to Rs. 5 crore to Co-Operative Societies of farmers for
disposing of the produce of members classify as priority sector loans.

 Agri-Clinics and Agri-Business Centre (ACABC) Scheme

Agri-Clinics:
Agri-Clinics are envisaged to provide expert advice and services to farmers on various technologies,
including soil health, cropping practices, plant protection, crop insurance, post-harvest management
and clinical services for animals, feed and fodder management, prices of various crops in the market,
etc. which would enhance productivity of crops/animals and ensure increased income to farmers.

Agri-Business Centres:
Agri-Business Centres are commercial units of agri-ventures established by trained agriculture
professionals and are envisaged to provide services to farmers on maintenance, repair and custom-
hiring of farm equipment, sale of inputs and other services in agriculture and allied areas, including
post-harvest management and market linkages for income generation and entrepreneurship
development.

40
 PLP 2019-20
DANG
2.3.2.2 Assessment of Credit Potential for the Year 2019-20
(₹. Lakh)
Sr. No Activity PLP 2019-20
Unit Unit Physical Total Financial Bank Loan
(No.) Cost Units Outlay
1 Loans to No. 5.00 3 15.00 15.00
PACS/FSS/LAMPS
2 ACABC Finance No. 5.00 3 15.00 15.00
Others Total 6 30.00 30.00

2.3.2.3 Availability of Infrastructure, Critical Gaps & Interventions Required

(i) The ACABC Scheme be given a larger publicity for encouraging educated youngsters with
agriculture background to come forward for their contribution to the farming
community.

2.3.2.4 Suggested Action Points

(i) Banks may consider to engage Micro Finance Institutions (MFIs) operating in the district
as their partners in lending to the unreached. The win-win situation for both may result
in enhancing the bank’s portfolio and also make available formal credit to the hitherto
deprived last-mile prospective clientele.

(ii) Producers’ Organizations may be encouraged to take up food & agro processing activities
for value-addition and for better realization of value of their produce. Banks can also
have their own strategy for provision of the required support to farmers in a holistic
manner.

2.3.2.5 Credit Potential for Others

 Loans to Individuals and SHGs/JLGs

Generally, financial institutions take security for giving loans. In this process, a large section of society
were often not able to get subsidised rate of interest loans from the banks and their welfare was not
addressed. NABARD took a lead in this matter and envisaged the concept of SHGs and JLGs. The poor
were united in the form of groups and it showed to the world that the poor as a group were indeed loan-
worthy and the rest is history. Group mode of loaning has paved the way for giving finance to the poorest
of the poor and improve their social and economic condition. Moreover, it is a very good proposition
for banks as well with a good rate of recovery from groups.

 Loans to Distressed Persons to Prepay Non-Institutional Lenders (other than

farmers)

In order to get small, quick loans without resorting to much paperwork, people took loans from non-
institutional lenders to meet their emergent requirements but with a very high rate of interest. Payment
of such a high rate of interest is a big burden on the poor people which creates a lot of problems in their
family life. However, those people can now take loan from financial institutions to prepay their debt
taken from private lenders. Based on the ground level situation in the district as also the discussions
held with bankers and other agencies involved in financing under the sector, potential for 2019-20 has
been estimated and activity-wise and block-wise details are given in Annexure-I.

41
 PLP 2019-20
DANG

 In terms of revised RBI Master circular on PSL, loans not exceeding Rs. 50,000/- per borrower
financed directly by banks to individuals and their SHG/JLG, provided the individual
borrower’s household annual income in rural areas does not exceed Rs.1,00,000/- and, for
non-rural areas, it does not exceed Rs.1,60,000/-, qualify as PSL.
 Loans to distressed persons (other than farmers) included under “Loans to distressed farmers
indebted to non-institutional lenders” not exceeding Rs.1,00,000/- per borrower to prepay
their debt to non-institutional lenders also qualify as PSL.
 Loans sanctioned to State-sponsored Organizations for SCs/ STs for the specific purpose of
purchase and supply of inputs and/or the marketing of the outputs of the beneficiaries of these
organizations are covered under the sector ‘’Others’’ and, hence, are treated as PSL.
 Pradhan Mantri Jan Dhan Yojana (PMJDY) - During the year 2014-15, a campaign under
Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched to cover all population under banking
fold. As of now, each such households has at least one basic Savings Account in the bank. As a part
of second phase, each such account holder is being provided an overdraft facility of up to Rs 5000/-
through such accounts. This has since been raised to Rs.10000/-. Overdraft facility extended in such
accounts will be eligible to be reckoned as priority sector finance.

2.3.2.6 Assessment of Credit Potential for 2019-20

(₹ Lakh)
Sr. Activity Unit Unit PLP (2019-20)
No. Cost
Phy. Units Total Financial Bank Loan
Outlay
1 Fresh Loans to SHGs No. 1.00 1250 1250.00 1250.00
2 Loans to JLGs No. 0.50 150 75.00 75.00
3 PMJDY No. 0.05 1500 75.00 75.00
Total 2900 1400.00 1400.00

2.3.2.7 Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed

a) Bankers should continue to finance liberally to these groups as it is helpful in creating infrastructure
and demand in society for various articles and improve the social status of the groups.

b) Public awareness about the PMJDY account usage and JLG needs to be strengthened.

42
 PLP 2019-20
DANG

CHAPTER 3

CREDIT POTENTIAL FOR MICRO, SMALL AND MEDIUM ENTERPRISES (MSME)

3.1. Introduction

Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and
dynamic sector of the Indian economy. MSMEs not only play crucial role in providing large employment
opportunities at comparatively lower capital cost than large industries but also help in industrialization
of rural & backward areas. They, thus, help in reducing regional imbalances and assuring more
equitable distribution of national income and wealth. Considering the increased pressure on land, there
exists limited scope for increasing employment in agriculture so that employment in the non-farm
sector becomes an important option to create job opportunities and development of requisite skills
among the rural people for the purpose.

Bank loans to micro, small and medium enterprises in both manufacturing and service are eligible to
be classified under priority sector. The limits for investment in plant and machinery/equipment for
manufacturing / service enterprise, as notified by Ministry of Micro Small and Medium Enterprises,
vide, S.O.1642(E) dated September 9, 2006, are as under:-

Sector Manufacturing Sector* Service Sector**

Investment in Plant and Machinery Investment in Equipment
Micro < ₹ 25 lakh < ₹ 10 lakh
Small ₹ 25 lakh – ₹ 5 crore ₹ 10 lakh –₹ 2 crore
Medium >₹ 5 crore - ₹ 10 crore ₹ 2 Crore - ₹ 5 crore
In case of manufacturing units, investment in plant and machinery is the original cost, excluding land
and building, and the items specified by the Ministry of Small Scale Industries vide its notification No.
S.O. 1722 (E) dated October 5, 2006. In case of service units, the original cost excludes land and
building, furniture, fittings and all other items not directly related to the services rendered or as may be
notified under the MSMED Act, 2006. These service units will include small water & road transport
operators, small business, retail trade, professional and self-employed persons and other service
enterprises. Further, important provisions of RBI guidelines are as follows:-

3.1.1 Khadi and Village Industries Sector (KVI)

All loans to units in the KVI sector will be eligible for classification under the sub-target of 7% / 7.5%
prescribed for Micro Enterprises under priority sector.

3.1.2 Other Finance to MSMEs

i. Loans to entities involved in assisting the decentralized sector in the supply of inputs to and
marketing of outputs of artisans, village and cottage industries.
ii. Loans to Cooperatives of producers in the decentralized sector, viz., artisans, village and cottage
industries.
iii. Loans sanctioned by banks to MFIs for on-lending to MSME sector as per the conditions
specified.
iv. Credit outstanding under General Credit Cards (including Artisan Credit Card, Laghu Udyami
Card, Swarojgar Credit Card, Weaver’s Card, etc. in existence and catering to the non-farm
entrepreneurial credit needs of individuals.
v. Outstanding deposits with SIDBI and MUDRA on account of priority sector shortfall.

43
 PLP 2019-20
DANG
3.1.3 NABARD Support to MSME Sector
1. Grant Support to NGOs and other agencies for conducting exhibitions and melas related to
promotion of Non-Farm Sector.
2. Financial assistance in the form of grant-cum-soft loan towards Marketing initiatives, viz.,
Rural Haat, Rural Mart and promotional Exhibitions for eligible institutions.
3. Financial assistance for Rural Innovation Projects up to Rs 25.00 lakh to the eligible agencies.
4. Loan-cum-grant projects will be supported by NABARD for promotion of identified purpose,
viz., Innovations, Cluster Development, Rural Sanitation, Rural Housing and Rural Tourism. The
agencies eligible for assistance are Public Relation institutions, SHGs, SHG Federations, Farmers’
clubs, registered POs, PACS, banks, RRBs, Private companies as part of CSR, KVKs, NBFCs,
Housing Finance Companies, etc.

3.1.4 MUDRA
Micro Units Development and Refinance Agency Ltd. had been launched on 8 April 2015 to extend
finance and credit support to Microfinance Institutions (MFI) and agencies that lend money to small
businesses, retailers, self-help groups and individuals. MUDRA has launched three loan instruments:

1. Shishu: covers loans up to ₹ 50,000/-

2. Kishor: covers loans above ₹ 50,000/- and up to ₹5 lakh
3. Tarun: covers loans above ₹ 5 lakh and up to ₹ 10 lakh

3.1.5 “Stand Up India” Scheme

The objective of the Stand Up India scheme is to facilitate bank loans between Rs. 10 lakh and Rs. 1
crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman
borrower per bank branch for setting up a Greenfield enterprise. This enterprise may be in
manufacturing, services or the trading sector.

To ensure that MSMEs do not remain small and medium units merely to remain eligible for priority
sector status, the MSME units will continue to enjoy the priority sector lending status up to three years
after they grow out of the MSME category concerned.

Government of Gujarat is popular internationally for its policies and procedures and for its investor-
friendly approach towards industrialization. New Industrial Policy, 2013 has been introduced in the
State. For setting up a new Industry, “Investment Facilitation Mechanism” is implemented at the levels
of the District, State and the Chief Minister under the Chairmanship of the District Collector, Principal
Secretary, Mines/ Industry and the Chief Minister respectively.

3.1.6 “Make In India”

The initiative was launched on September 25, 2014, with the primary goal of making India a global
manufacturing hub, by encouraging both multinational as well as domestic companies to manufacture
their products within the country. Led by the Department of Industrial Policy and Promotion, the
initiative aims to raise the contribution of the manufacturing sector to 25% of the Gross Domestic
Product (GDP) by the year 2025 from its current 16%. Make in India has introduced multiple new
initiatives, promoting foreign direct investment, implementing intellectual property rights and
developing the manufacturing sector.

It targets 25 sectors of the economy which ranges from Automobile to Information Technology (IT) &
Business Process Management (BPM), the details of each can be viewed on the official site
(www.makeinindia.com). It also seeks to facilitate job creation, foster innovation, enhance skill
development and protect intellectual property rights. The logo of ‘Make in India’ – a lion made of gear
wheels – itself reflects the integral role of manufacturing in government’s vision and national
development. The initiative is built on four pillars - New Processes, New Infrastructure, New Sector and
New Mindset.

44
 PLP 2019-20
DANG

3.1.7 “Start Up India”

In order to put some direct emphasis on the youth entrepreneurship and new job creation opportunities
for the youths, Start Up India was announced as a complete action plan in January, 2016. According to
this scheme, companies will be given incentives so that they can generate more employment. The focus
of the scheme, like in case of Stand Up India as well, is to promote bank financing for starting business
by the youths (especially women, Dalit or Adivasi). This initiative is planned by the Government to
encourage Dalits, Adivasi and women towards entrepreneurship.

3.1.8 “Skill India”

Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill
Development & Entrepreneurship (MSDE). The objective of this Skill Certification Scheme is to enable
a large number of Indian youth to take up industry-relevant skill training that will help them in securing
a better livelihood. Individuals with prior learning experience or skills will also be assessed and certified
under Recognition of Prior Learning (RPL). Under this Scheme, Training and Assessment fees are fully
paid by the Government. Key Components of the Scheme are – Short-term Training, Recognition of
Prior Learning, Special Projects, Kaushal and Rojgar Mela, Placement Guidelines and Monitoring
Guidelines. The scheme is implemented through the National Skill Development Corporation (NSDC).
In Navsari district, the total work force is around 9 lakh. Agriculture is the main occupation in the
district and 67% of the work force is engaged in the agricultural activities. Keeping in view the total
work force vis-à-vis the present population, nearly 33% of the population has an opportunity for
employment, which indicates that there is vast potential for the working population to establish Non-
Farm Sector units and generate sustainable employment for local people.

3.1.9 Position in Dang District

The District has potential for handicrafts and bamboo works. Baroda Swarojgar Vikas Sansthan (BSVS)
is functioning in the district providing training. There are more than 3500 SHGs groups formed in the
district and cluster of handicrafts and bamboo products can be developed. There are around 160 SSI
units registered and located in the district. There are four medium and large size units viz. Silk, Wool
and Synthetic Fibre manufacturing units, wood and wooden furniture unit, Industrial Training
Institute, and Vehicle Repairs Workshop of Gujarat State Transport Corporation in the district. Gujarat,
because of its highly diversified agriculture, offers many investment opportunities in agro processing.
3.2 Assessment of Potential for the Year 2019-20

The potential physical units that can be covered under bank finance during the year 2019-20 are given
on next page. Block-wise bifurcation of potential is given in Annexure-I.

(₹ Lakh)
Micro, Small and Medium Enterprise PLP 2019-20
(MSME)
A - Manufacturing Sector - Term Loan – Unit Phy Units (No.) TFO Bank Loan
MICRO INTERPRISE Cost
Carpentry 1.00 25 25.00 22.10
Leaf plates / bowl making 0.75 25 18.75 16.58
Drying of vegetables & Fruits 0.63 10 6.30 5.36
Pickle / Papad & Spice Making 0.84 10 8.40 7.14
Milk-based sweet making 1.38 5 6.90 5.87
Engineering items 1.00 7 7.00 5.95
Chemicals & Cosmetics 1.26 5 6.30 5.36
Textiles (Dress making, etc.) 0.84 5 4.20 3.57
Bamboo Work 0.21 10 2.10 1.79
Embroidery work 0.41 6 2.46 2.09

45
 PLP 2019-20
DANG
Jari Work 0.74 5 3.70 3.15
Black smith 0.85 10 8.50 7.23
Misc. 1.32 7 9.24 7.85
SSI (Others) 9.50 5 47.50 35.63
Tourism Cluster 5.25 6 31.50 26.78
Sub Total 141 187.85 156.41
B - Service Sector - Term Loan
Transport operators 4.75 35 166.25 141.31
Retail Trade / Small Business 1.00 26 26.00 22.10
Professional & Self-Employed 1.60 26 41.60 35.36
Consumption Loan 0.50 60 30.00 25.50
Misc. 0.50 18 9.00 7.65
Sub-total (B) 165 272.85 231.92
TOTAL (A + B) 306 460.70 388.33
C – Manufacturing Sector Working 62.56
Capital – 40% of A
TOTAL MSME (A + B + C) 306 460.70 450.90

Keeping in view the above factors, a total potential of ₹ 450.90 lakh has been worked out for MSME
sector. The block-wise potential of MSME sector is given in Annexure-I.

3.3. Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed

a) There is one GIDC proposed at Pimpri in the district. However, no land has yet been allotted.
b) There is a scope for SME units in electrical motor winding, tube light choke, stamping-pad inks,
hotel business, knitting, quarry industries, metal works, printing press, Ayurvedic pharmacy,
engineering works, service type industries, tin containers for food processing industry, oil-engine
farm equipment maintenance and servicing, etc.
c) The existing SME units are mainly engaged in activities like garment manufacturing, wood work,
bamboo craft, cane work, paper and papier-mache, metal work, maintenance and repair works of
electrical machinery / oil engines / transport vehicles, etc. They can be now considered for
technology upgradation, under the credit-linked Capital Investment Subsidy Scheme.
d) Saputara in Dang, located on Surat-Nashik Highway, is the only hill station of and is fast emerging
as a big tourist attraction. There are other places like Mahal, Chankhal and Gira that have good
potential for tourism. There are around 200 small/big waterfalls in the district. Improving the
infrastructure/facilities will boost tourism, thus proving employment opportunities to local people.
e) Major hurdle in the development of Non-Farm Sector has been the lack of marketing avenues for
products of rural cottage industry. Potential for NFS activities by SHG is hampered due to above
factor.

3.4. Suggested Action Points

Banks

a) Keeping in view the importance of this sector and potential existing, banks need to play a proactive
role leading to provision of adequate bank credit to this sector in the district.
b) Proactive action is required from banks for entrepreneurship development in rural areas and
motivation of prospective entrepreneurs.
c) Banks should extend all help to entrepreneurs trained in R-SETI under Rural Entrepreneurship
Development Programmes (REDP) in setting up their enterprises.
d) Banks may chalk out a strategy to provide timely credit to the sector since it can play an important
role to creation of assets as well as employment generation in the district.

46
 PLP 2019-20
DANG
Departments

a) Allotment of land for the proposed GIDC at Pimpri should be done on top priority.
b) Improvement in supply of inputs and marketing arrangements as also development of products of
artisans is required in which, besides Govt. agencies, NGOs could also make important contribution.
The workmanship in bamboo craft is good in the district. Small units can be set up in marketing
partnership with traders.
c) The arrangements for marketing of the produce are required to be made through NGOs at big
centers. Local Gram Haats at Taluka headquarters and other prominent places should be
established.
d) DIC may arrange at least one Exhibition/Mela/Fair for helping the Adivasi artisans sell their
products at popular Tourist Centre like Saputara in the district.
(e) There is a good potential for rural tourism. Mahal spot has been brought under GoI scheme for
development. DRDA may identify additional natural spots in the district and bring such spots under
special tourism programmes besides holding Dang’ Durbar.

47
 PLP 2019-20
DANG
CHAPTER 4

CREDIT POTENTIAL FOR EXPORT CREDIT, EDUCATION AND HOUSING

4.1 Export Credit

Exports play an important role in a country’s economy. A healthy balance between foreign trade and
exchange reserves to maintain the country's export growth should be the constant endeavour. India
ranks 20th in terms of global market share for export with approx. 2% market share. It has been a well-
accepted view that a stable and long-term trade policy with respect to agricultural products is essential
for increasing productivity. In terms of RBI guidelines, financing (credit) for exports is available for
Pre-shipment / Post-shipment and Packing.

4.1.1 Exports – Scenario in Gujarat and Dang

Gujarat, which accounts for about a quarter of India's total exports, is mulling a five-year export policy
to focus on value-added exports in sectors such as textiles, agriculture and dairy. The move by the top
exporting State in the country comes on the back of efforts by the centre to boost dwindling exports.
The first State in the country to have an export policy, Gujarat plans to increase the share of exports
from the State from 25% to 30% in five years. The State already has potential in the textile sector, as
nearly 23% of the State’s gross domestic product comes from textile and related industries. Other areas
that Gujarat contributes to India's exports include 70% in the gems and jewellery sector, 30% in
pharmaceuticals, 20% in textiles, 12% in engineering and 18% in chemicals. The state has 41 minor and
intermediate ports and 57 SEZs, involved in sectors like biotechnology, power, handicraft, gems and
jewellery. Gujarat also has a comparative advantage in many commodities like spices and seeds, mineral
and metals and cotton.

In Dang District, there is no unit that is exporting any produce or product of agriculture, horticulture,
floriculture, textiles, leathers, gems/diamonds, fisheries, meat or any other sub-sector or activity.

4.1.2 Assessment of Credit Potential for the Year 2019-20

There is no unit in the Dang district which is exporting any produce or product. Hence, no potential has
been assessed under this activity.
(₹ Lakh)
Activity PLP – 2019-20
Phy. Units Bank Loan
Pre Shipment/Packing Credit NIL NIL
Post Shipment NIL NIL
Export Credit Total NIL NIL

4.1.3 Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed

There is no unit available in the district which is exporting the good produced in the district.

48
 PLP 2019-20
DANG

4.2 Credit Potential for Education

Education is central to the human resources development and empowerment in any country. National
and State-level policies are framed to ensure that this basic need of the population is met through
appropriate public and private sector initiatives. While Governments endeavour to provide primary
education to all on a universal basis, public funding of higher education is not considered feasible.
The Indian government has expressed a strong commitment towards education for all of its
citizens. Education is highly valued in India and considered a great asset among its people. The current
literacy rate is 74.04% (males: 82.14% and females: 65.46% as per Census of India, 2011). India has
one of the lowest female literacy rates in Asia. The low level of literacy has a negative impact on women’s
lives as well as the lives of their families and on the country’s overall economic development.
Educational Loan Scheme aims at providing financial support from the banking system to deserving/
meritorious students for pursuing higher education in India and abroad. The main emphasis is that
every meritorious student, even if poor, is provided with an opportunity to pursue education with the
financial support from the banking system with affordable terms and conditions. No deserving student
is denied an opportunity to pursue higher education for want of financial support.
As per the extant Priority Sector Guidelines issued by RBI, loans to individuals for educational purposes,
including vocational courses up to ₹ 10 lakh, irrespective of the sanctioned amount, will be considered
as eligible for priority sector.
Gujarat State has been implementing various education programmes viz. Vidya Deep Insurance
Scheme, Vidya Laxmi Bond, Distribution of Cost-free Text Books, Mid-Day Meal Programme, Gunotsav
Programme, etc.
4.2.1 Assessment of Credit Potential for the Year 2019-20

The Block-wise Activity-wise projections under the sector during the year 2019-20 are indicated at
Annexure-I is given below.
(₹ Lakh)
Activity PLP 2019-20
Unit Cost Phy Units (No.) TFO Bank Loan
Education Loans 5.00 10 50.00 42.50

4.2.2 Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed

a) There is one primary school in each village of the district.

b) Literacy rate is 78.4%.
c) Banks are reluctant to finance loan as it requires only the parent/ guardian as co-borrower as also
other collateral or margin. This approach affects the low-income customers the most.
d) Banks need to give attention to education loan portfolio. Generally, the student is given loan from
the service area of the branch where he resides and not the branch where the institute is located.
e) Insistence on collateral for education loans is one of the biggest hurdles in its growth. Steps need to
be taken at policy-making level to popularize education loans.
f) There is an intense need for creation of awareness of the education loan products amongst the
aspiring students and their parents. Banks may display their schemes at the schools and colleges for
a wider publicity.
g) The education department may play a pro-active role in sensitizing the students about benefits of
higher education and loan facilities available from various banks. The credit discipline and
inculcating the habit of regular repayment of instalment can be infused in the student stage itself.

49
 PLP 2019-20
DANG

4.3 Credit Potential for Housing

Housing being one of the three basic needs of life always remains the top priority of any person,
Government and society at large. The widening gap between demand and supply of housing units and
affordable housing finance solutions is a major policy concern for India. House prices have increased
over the years in many cities and towns as per the National Housing Bank’s RESIDEX index of
residential prices in India. A large population base, rising income levels and rapid urbanization are
driving the growth in this sector. The Central Government and Gujarat State Government have enacted
several schemes for ensuring adequate housing for low and medial income strata of populations, such
as the National Urban Housing & Habitat Policy, the Jawaharlal Nehru National Urban Renewal, Sardar
Awas Yojana, Indira Aawas Yojana and Pradhan Mantri Awas Yojana. At present urban housing
shortage is 18.8 million units of which 95.6 per cent is in economically weaker sections (EWS) / low-
income group (LIG) segments and requires huge financial investment to overcome.

The housing industry of India is one of the fastest growing sectors. A large population base, rising
income level and rapid urbanization leads to growth in this sector. MoRD has the vision of ensuring
adequate and affordable housing for all and facilitating development of sustainable and inclusive
habitats in rural areas by expanding government support, promoting community participation, and self‐
help and public‐private partnership within the framework of Panchayati Raj. Government of India has
announced “Housing for All” by 2022.

4.3.1 Pradhan Mantri Awas Yojana – Gramin

GoI has a launched a “Housing for all” mission for providing “Pucca” houses for all rural households by
2022. Pradhan Mantri Awas Yojana-Gramin (PMAY-G) has been framed which aims to provide
subsidy, loan and other benefits to the rural poor for achieving the goals set under the mission. Under
the scheme, a target for construction of one crore houses has been set for the first three years - by the
end of 2018-19. In addition to the subsidy support of ₹1.20 lakh to ₹ 1.30 lakh to be provided by GoI,
assistance available under Swatch Bharat Mission for construction of toilets and MGNREGA could also
be combined for the purpose. Further, institutional credit support to the extent of ₹ 70,000/- is to be
provided to the willing beneficiaries towards the additional requirement of funds for construction of
house.

4.3.2 Housing Finance under Priority Sector Lending:

(i) Loans to individuals up to ₹ 35 lakh in metropolitan centres (with population of ten lakh and
above) and loans up to ₹ 25 lakh in other centres for purchase/construction of a dwelling unit per family,
provided the overall cost of the dwelling unit in the metropolitan centre and at other centres should not
exceed ₹ 45 lakh and ₹ 30 lakh respectively. The housing loans to banks’ own employees will be
excluded. As housing loans which are backed by long-term bonds are exempted from ANBC, banks
should either include such housing loans to individuals up to ₹ 35 lakh in metropolitan centres and ₹25
lakh in other centres under priority sector or take benefit of exemption from ANBC, but not both.
(ii) Loans for repairs to damaged dwelling units of families up to ₹ 6 lakh in metropolitan centres
and up to ₹ 3 lakh in other centres.
(iii) Bank loans to any governmental agency for construction of dwelling units or for slum clearance
and rehabilitation of slum dwellers subject to a ceiling of ₹ 10 lakh per dwelling unit.
(iv) Loans sanctioned by banks for housing projects exclusively for the purpose of construction of
houses for economically weaker sections and low-income groups, the total cost of which does not exceed
₹10 lakh per dwelling unit. For the purpose of identifying the economically weaker sections and low-
income groups, the family income limit of ₹ 3 lakh per annum, irrespective of the location, is prescribed.

50
 PLP 2019-20
DANG
4.3.3 Assessment of Credit Potential for the Year 2019-20

The potential physical numbers that could be covered under bank finance during the year 2019-20 is
given on next page. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Activity PLP 2019-20
Unit Cost Phy Units (No.) TFO Bank Loan
Housing Loans 7.50 25 187.50 159.38
Loan for Repair/ Renovation of 3.00 22 66.00 56.10
Houses
Total 47 253.50 215.48

4.3.4 Availability of Infrastructure, Critical Gaps and Interventions Required, Action

Points/Issues to be addressed

a) There is not much scope for housing in the district as the farmers are not allowed to mortgage
land.

b) As per Census, 2011, out of the total 0.60 lakh households in Dang, 0.52 lakh in rural and 0.08
lakh in urban area dwell in either semi-permanent or total temporary houses.
c) While formulating their policies, banks have to take into account the RBI guidelines and ensure
that bank credit is used for production, constructions activities and not for activities connected with
speculation in real estate.
d) The documentation should be rationalized at bank level and rigid paper work should be avoided.
e) Banks should participate in various housing schemes of Central and State Governments like
Sardar Awas Yojana / Indira Awas Yojana.
f) The housing scheme should be devised as user-friendly and wide publicity may be given through
various media.
g) Banks may grant loans to individuals for purchase/construction of dwelling unit per family and
loans given for repairs to the damaged dwelling units of families.
h) Bank may extend finance to a person who already owns a house in town/village where he resides,
for buying/ constructing a second house in the same or other town/ village for the purpose of self-
occupation.

51
 PLP 2019-20
DANG
Chapter 5
Credit Potential for Infrastructure

5.1 Infrastructure –Public investments

5.1.1 Introduction
Infrastructure is the sum total of basic facilities and services required for proper utilization of resources
(physical & human) for the development of an area. Infrastructure development plays a significant role
in economic growth and poverty alleviation, more so in the rural area. Rural infrastructure comprises
of core infrastructure, viz., irrigation, connectivity (road, power, IT), transportation, energy
(generation, transmission, distribution), post-harvest and social infrastructure, viz., drinking water,
sanitation, sewerage, health, housing and education.

Investment in rural infrastructure fosters agricultural growth, creates new economic opportunities and
activities, generates employment and income and improves delivery of other rural services. Therefore,
in 1995-96, Rural Infrastructure Development Fund (RIDF) was created in NABARD to facilitate public
investments for rural infrastructure. State Governments avail RIDF assistance for creation of a wide
variety of rural infrastructure covering 36 eligible activities under three broad categories, viz.,
Agriculture and related sectors, Rural Connectivity and Social Sectors. Over the years, RIDF has
emerged as a preferred source of funding for State Governments. This has led to creation of many other
funds in NABARD for supporting specific rural infrastructure activities, viz., Warehouse Infrastructure
Fund, Food Processing Fund, Long-term Irrigation Fund, Dairy Processing and Infrastructure
Development Fund, Micro Irrigation Fund, etc.

5.1.2 Infrastructure Supported under RIDF in Gujarat

In Gujarat, a major share (69%) of RIDF assistance has gone for creation of irrigation infrastructure,
followed by social sector and rural connectivity. Some of the major RIDF projects that are under
implementation include SAUNI (Saurashtra Narmada Avtaran Irrigation) Yojana which involves
construction of four links under various packages in the drought-prone Saurashtra region and
expansion of the network of Narmada Main Canal, viz., Saurashtra and Kutch Branch Canals &
construction of Sub-Minors for delivering water to the last-mile farmers. RIDF has, therefore, proved
to be exemplary financial intervention for boosting agricultural production and productivity in the
State.

5.1.2 Projects sanctioned under RIDF in the District

Details of RIDF projects in the District:

Sector No. of projects Loan sanctioned

sanctioned (₹ crore)
Road 28 5.22
Anganwadi 58 1.68
Minor Irrigation 300 36.14
Public Health 23 13.85
Total 409 56.89

5.1.3 Impact of RIDF Projects in the District:

(i) Enhanced capital formation in the farm sector through private investment in pump sets, drip
irrigation, etc.

52
 PLP 2019-20
DANG
(ii) Improved quality of life through increase in income due to improvement in production,
productivity, additional employment generated, better rural connectivity, etc.

5.1.5 Infrastructure Supported under WIF in Gujarat

Warehouse Infrastructure Fund was introduced to support projects for construction of scientific
warehouse infrastructure with a view to enabling storage of the excessive food grain production,
meeting the demand of increased procurement under Food Security Act, 2013 and enhancing shelf life
of the perishable goods. Availability and easy access to storage infrastructure enables the farmers to
avoid distress sale and sell the produce at higher market rate as per convenience.

In Gujarat, NABARD has partnered with Government of Gujarat for creation of storage capacity of 10.85
Lakh MT with a cumulative sanction of Rs.91490 Lakh under WIF. This includes construction of small
warehouses (100 -500 MT) by PACS at village levels and mid-sized & large warehouses (1000 MT –
5000 MT) at block levels by Gujarat State Civil Supplies Corporation and Gujarat State Seed
Corporation

Till date, a capacity of 3.25 lakh MT (including 2.16 lakh MT at the village levels) has been created with
utilization of Rs.29177 Lakh out of the sanctioned WIF loan.

Sectoral Priorities for Infrastructure in the District

An attempt has been made to assess the critical Infrastructure requirement of the district that has a
bearing on the agricultural production and productivity, allied activities, and the farmers’ income and
presented below:

The sector-wise critical infrastructure requirements, gaps and suggested action points which can be
taken up by the concerned agencies in the District are indicated below:

Sr. Sector Major/Critical Suggested Action Points Action

No. Infrastructure By
Requirement / Gaps
1 Water (a) Only about 18% of Urgent works need to be taken Irrigation Dept.
Resources the total cultivated area
up related to construction of
is irrigated. Lack of check dams/ development of
knowledge of farmers in watershed areas. GWRDC
digging of wells,
should provide the necessary
structure sites, etc. technical guidance to the
farmers in digging of wells,
structure sites, etc.
2 Plantation & (a) Limited Govt. Govt. may set up additional Horticulture
Horticulture nurseries in the district. nurseries in association with Dept.
Requirement of more NGOs.
new nurseries.
(b) There is no Value- Fruit processing activities can State Govt. /
Addition Centre for be encouraged by setting up Banks
horticultural crops, Exclusive Processing Zones
except one in with infrastructure facilities
cooperative sector like graders, dehydrators, cold
which is inadequate storage, etc. There is an urgent
considering the need for more value-addition
potential. centres and facilities for post-
harvest services.

53
 PLP 2019-20
DANG
3 Dairy Dev. (a) Good-quality cattle There is an urgent need for Animal
are not locally available intensive cross breeding Husbandry
and are brought in from programmes for rearing of Dept.
outside through a wide quality animals locally.
network of traders.
(b) There is no feed mill Vasudhara Dairy should Vasudhara
under either co- operationalize the proposed Dairy / AH
operative or public Feed Plant at Navsari at the Department
sector in the District. earliest. The Government
should provide all the required
support for speedy
operationalization of the Plant.
4 Poultry Dev. (a) Inadequate One Intensive Poultry State Govt. /
Extension service Development Project Centre AH Dept.
centers in the district (IPDP) may be established in
the District
(b) There is no The Department-run Poultry State Govt.
commercial feed mill in Feed Compounding Unit at / AH Dept.
the District. The feed Valsad for chick mash, grower
cost in both broilers and mash, layer mash and breeder
egg production is the mash could establish its
single largest subsidiary in the District.
component in poultry
projects.
5 Storage There is a need for a State Agri Marketing Board, in State Govt.
Godowns & Market Yard in the association with APMC, may
Market Yard district. do the needful.
6 Non-farm (i) Lack of infrastructure (i)DIC should help in State Govt.
Sector for arranging Exhibition marketing of NFS products by
/ Mela / Fair for selling arranging at least one
village products at Exhibition / Mela / Fair in the
popular Touring Centres district.
like Saputara in the
district. (ii) Establishment of exclusive State Govt. /
processing zones with APEDA
(ii) Lack of processing infrastructure facilities like
activities cold storage.
7 Other There are still several The early construction of more State Govt.
Priority rural roads that require rural link roads under the
Sector fresh laying / Prime Minister’s Gram Sadak
renovation. Yojana should have the top
priority. Coupled with the
roads already constructed
under NABARD’s RIDF, this
would better integrate the rural
economy with that of the urban
areas in coming years.

54
 PLP 2019-20
DANG
5.2 Social Infrastructure Involving Bank Credit

5.2.1 Introduction

Standard of living is an integral element of human development. The provision of drinking water,
sanitation, education and health defines the quality of life of an individual. Accessibility to these services
shape the day-to-day life of people and have long-term impact in terms of longevity, productivity and
earning capacity of an individual.

Amidst a steady economic growth in the last 2 decades, Government of India has come up with
numerous schemes and programs to address the challenge of creating robust social infrastructure.
These include providing quality potable water to rural areas using piped drinking water supply,
enhancing rural sanitation under the Swachh Bharat campaign, providing universal elementary
education under Right to Education, nutrition & health facilities using Anganwadis and community
Health Centres and training for gainful employment in Skill Development Centres.

Reckoning the importance of social infrastructure for development in its latest Priority Sector Lending
Classification as on 16 April 2018, RBI has brought bank loans up to a limit of Rs. 5 crore per borrower
for building social infrastructure, namely, schools, health care facilities, drinking water facilities and
sanitation facilities in Tier II to Tier VI centres under the ambit of PSL norms. Besides, bank credit to
Micro Finance Institutions (MFIs) extended for on-lending to individuals and members of SHGs/JLGs
for water and sanitation facilities will be eligible for categorization as priority sector under ‘Social
Infrastructure’.

5.2.2 Social Infrastructure in the District of Dang

a) There is one primary school in each village of the district.

b) As per Census 2011, literacy rate is 78.4% in the district.
c) Lack of drinking water facility – no RO plant in the district.
d) Not a single College has been opened in the district owing to which, students of the district travel to
nearby districts for higher education.

5.2.3 Assessment of Credit Potential for the Year 2019-20

The credit potential estimated in the district for the year 2019-20 is furnished below:
(₹ Lakh)
Activity PLP 2019-20
Social Infrastructure Unit Cost Phy Units (No.) TFO Bank Loan
Primary Schools 55.00 5 275.00 247.50
Reverse Osmosis (RO) 5.25 5 26.25 23.63
Plants
Toilets 0.25 150 37.50 33.75
Sub total 160 338.75 304.88

5.2.4 Action points/Issues to be addressed

a) More primary schools are required to be opened in the district. There are no colleges in the
district.
b) There is a major problem of drinking water in the district. Participation of the beneficiaries,
especially women, in water supply schemes may be ensured.

55
 PLP 2019-20
DANG
c) Availability of manpower for the created infrastructure is essential. This may require skill
upgradation of manpower and in case of hospitals, professionals.
d) Bankers may proactively take up financing of these activities to fulfil their priority sector
obligations.
e) Since drinking water and sanitation continue to be treated in separate silos, quality of both the
drinking water and that of sanitation gets compromised.
f) The Village Water and Sanitation Committees may be formed and their capacity building may
be done.

56
 PLP 2019-20
DANG
5.3 Renewable Energy
5.3.1 Introduction

Renewable energy is generally defined as energy that comes from resources which are naturally
replenished on a human timescale such as sunlight, wind, rain, tides, waves and geothermal heat.
Renewable energy replaces conventional fuels in four distinct areas: electricity generation, air and water
heating/cooling, motor fuels, and rural (off-grid) energy services. The pressure of increasing population
on one hand and limitations in providing energy in the required quantity from conventional fossil
sources on the other has become one of the most burning issues for the country. Renewable sources of
energy are going to play an increasingly important role in future.

Revised Priority Sector Guidelines issued by RBI vide their Circular dated 23 April 2015
& 7 July 2016

Bank loans up to a limit of Rs.15 crore to borrowers for purposes like solar-based power generators,
biomass-based power generators, wind mills, micro-hydel plants and for non-conventional energy-
based public utilities, viz. street lighting systems and remote village electrification, will come under
Priority Sector. For individual households, the loan limit of 10 lakh per borrower will be considered
under priority sector.

5.3.2 Surya Shakti Kisan Yojana (SSKY)

Gujarat Government has launched, in June 2018, a solar power scheme for farmers - Suryashakti Kisan
Yojana (SKY) - enabling them to generate electricity for their captive consumption as well as sell the
surplus power to the grid and earn an extra income. As per the scheme, farmers having existing
electricity connection will be given solar panels as per their load requirements. The State and Central
Governments will give 60% subsidy on the cost of project. The farmer is required to contribute 5% of
the cost while 35% will be provided to him as an affordable loan with interest rates of 4.5% - 6% from
banks.
The duration of the Scheme is 25 years, which is split between 7-year period and 18-year period. For the
first 7 years, farmers will get per unit rate of Rs 7 (Rs 3.5 by GUVNL + Rs 3.5 by State Govt). For the
subsequent 18 years, they will get the rate of Rs 3.5 for each unit sold. This is the first such scheme in
the country, where farmer would produce his power and sell the surplus to the State power utility. The
scheme envisages setting up of separate feeders for agricultural solar energy consumption. Under the
project, about 137 feeders will be set up. As many as 12,400 farmers from 33 districts will be covered
under the pilot project, which will generate 175 MW. The project cost is around Rs. 870 crore. As of
now, 22,704 MU or 26% of the total power consumption in the State is consumed by agriculture sector.
This is one of the measures to achieve the goal of doubling farmer's income. This will also provide
farmers 12-hours power supply during the day time, a demand farmers have been making for long.
5.3.3 Solar Rooftop Scheme of Gujarat

Purely in terms of the geographical area, Gujarat is the 6th largest State in the country. With a proposed
target of 3200 MW, Gujarat is set to become the fourth largest State in India when it comes to
installed rooftop solar capacity by 2022. This would put Gujarat along with the States likes
Maharashtra, Uttar Pradesh and Tamil Nadu for grid-connected rooftop power. Currently, Gujarat
alone accounts for 1159.76MW of commissioned solar power in India with about 40.58 MW being added
in the FY 2016/17. It is one of the fastest growing States when it comes to solar deployment - both for
rooftop as well as large-scale solar projects. Very recently, the airport of Ahmedabad also commissioned
700kWp rooftop solar plant, outlining the push from the State Government. The Gujarat Energy
Development Agency or GEDA had set a target of achieving at least 50MW of electricity from just
rooftop solar plants in the FY 2016/17. There have been successful subsidy-led programmes, awareness
drives as well as strong policies that have been formulated to ensure rapid progression of rooftop solar
in the State. Gujarat is also home to Charanka Solar Park that is being constructed on a 2,000 hectare

57
 PLP 2019-20
DANG
land in Norther Gujarat, encompassing 19 different solar projects. The solar park is expected to host at
least 500MW solar power systems when it is fully completed and commissioned.

5.3.2 Assessment of Credit Potential for the Year 2019-20

The potential physical units that can be covered under bank finance during the year 2019-20 are given
as under. Block-wise bifurcation of potential is given in Annexure-I.
(₹ Lakh)
Sr. Activity Unit Unit PLP (2019-20)
No. (No./Area) Cost Physical Units TFO Bank Loan
1 Bio-gas 4cum 35 0.40 35 14.00 12.60
2 Bio-gas 2cum 45 0.25 45 11.25 10.13
3 Installation of solar 5 5.25 5 26.25 19.69
pumping/ off-grid

4 Solar Rooftop – 20 0.38 20 7.60 6.84

1KW
5 Solar Rooftop – 10 0.76 10 7.60 6.84
2KW
Renewable Energy Total 115 66.70 56.09

5.3.3 Availability of Infrastructure, Critical Gaps & Interventions Required

• Different agencies such as KVIC / KVIB / SAIC are involved in providing subsidy. They may launch
active and vigorous publicity in tune with the National Policy of Energy Conservation and use of
Renewable & Non-conventional Energy Sources to counter the growing demand for LPG in rural
areas.
• Use of bio-gas among the rural masses needs to be popularized. Though, the product is not new, the
awareness about its benefit among the rural masses is still low. It has to be a joint effort by Animal
Husbandry Department, Baroda Dairy and DRDA in increasing the use of bio-gas.
• The after-sales service is a crucial factor in popularizing any new product. Timely and cost-effective
service wins confidence among the masses. At present, GAIC alone provides such services.
• Keeping in view the savings in power and in the form of organic manure, as also the national
priorities, the banks may finance the units to the deserving borrowers.

5.3.4 Suggested Action Points

• A composite scheme of small cattle shed with five milch animals and a bio-gas plant could be
prepared by DRDA for financing to SHGs. The Tribal Sub-plan, Gujarat Scheduled Caste
Development Corporation, Gujarat Minority Financial Development Corporation and Gujarat
Backward Class Development Corporation, which are generally supporting dairy activity by
providing financial assistance to the eligible beneficiaries, could also support such a composite
scheme. GEDA may plan, with milk cooperatives, for promotion of community biogas plants.
• The schemes of MNRE may be popularized for intensive use of solar pumping, lighting and heating
systems, along with the benefits of subsidy offered and saving on the recurring expenses on
electricity, oil, diesel, etc., presently being used for running the equipment and pump sets. GGRC
and banks to make joint efforts to sensitize the public, particularly the rural people.

5.3.5 Other Related Matters

By adopting the use of bio-gas and solar pumping systems, the precious and hard-earned money of
farmers can be saved. The expenditure on diesel and electricity can be saved and the renewal energy
can be put to use instead of the fossil fuel. This would help in reduction of greenhouse gases and global
warming issues can be addressed. The farmers can even be motivated to work towards earning of carbon
credits and help in doubling of farmers’ income by 2022.

58
 PLP 2019-20
DANG
CHAPTER-6
INFORMAL CREDIT DELIVERY SYSTEM

6.1 Introduction

Micro finance is an important tool for policy makers to reach out to the grassroots and it has a vital role
to play in complementing the efforts of the Government of India in addressing the issues like financial
exclusion, providing livelihoods and empowering the citizens, women in particular. The SHG-Bank
Linkage ProgrammeNABARD, has grown from a small pilot programme of 500 SHGs in 1992 to the
largest microfinance programme of the world, with an outreach spanning more than 11 crore rural
households. As on 31 March 2018, there were 87 lakh SHGs with aggregate bank deposits of about
Rs.19500 crore, annual loan off-take touching almost Rs. 47000 crore and loans outstanding at nearly
Rs.75500 crore. (Source-Micro Finance Booklet 2017-18).
6.2 Status of SHG-BLP in the District

Sr. No. Particulars Status As on

31.03.2018
1 Potential for Formation of SHGs 4150
2 No. of SHGs Promoted 4057
3 No. of SHGs Savings-linked 4057
4 Total Amount of Savings ₹256.28 lakh
5 Average Savings per Group-State Average is ₹10682/- ₹6317/-
6 No. of SHGs Credit-linked 1459
7 Amount of Loan Outstanding as on 31 March 2018 ₹390.70 lakh
8 No. of SHGs Credit-linked during 2017-18 525
9 Amount of Credit Sanctioned during 2017-18 ₹ 487.65 lakh
10 Amount of Credit Disbursed during 2017-18 ₹ 467.25 lakh
11 Credit Disbursed per SHG during 2017-18 ₹0.89 lakh
12 Of which, Number of SHGs that availed Fresh Loans 193
13 No. of SHGs that availed Repeat Loans 332
14 Recovery position of SHG Loans 80%
15 NPAs under SHG Finance (%) 22%

Gujarat Livelihood Promotion Company (GLPC), an executive arm of Mission Mangalam and
the implementation agency for NRLM, is playing a major role in the State in implementing the micro
finance programme by organizing the poor into self-help groups. GLPC is implementing schemes for
interest subvention in Gujarat in coordination with Ministry of Rural Development, GoI.
6.3 Outreach of SHG programme in Dang district

Based on the 2011 Census, the rural households in the district are estimated at 43000 and the poor
families as per Tendulkar Committee Report are estimated at 16770 (BPL). The number of poor rural
households, including the marginally poor, has been arrived at by taking 140% of the above to draw a
potential of formation of SHGs in the district. As on 31 March 2017, about 4150 SHGs (90%) of rural
households have been covered under the SHGs-Bank Linkage programme and it is expected that the
entire rural population would be covered under the programme by March 2018.

6.4 Issues related to Micro Finance

Although 4057 SHGs have been savings-linked in the district, 1459 SHGs have availed credit facilities
from the banks as on 31 March 2018. Some of the issues that are hampering the programme in the
district are given below:
 There is a huge gap between savings and credit-linkage of SHGs

59
 PLP 2019-20
DANG
 Lack of awareness and motivation among the SHG members should be addressed.
 Lack of awareness on suitable Income Generating Activities
 Bankers' apathy towards credit-linkage of SHGs.
 Lack of awareness of services other than micro credit, viz., micro insurance, pension and other
Government-sponsored schemes
 Focus on group formation for availing subsidy from Government
 Regular drop-out of SHG members due to migration
 Rotation of leadership within the SHGs
 Heavy dependence on Bank Mitras
 Women are reluctant to spend time and travel outside the village to attend training programme
for capacity building

6.5 Estimation of Potential under SHG-Banks Linkage Programme

Out of the total potential for promotion of 4150 SHGs in the district, as on 31 March 2018, 4057 SHGs
have been promoted and savings-linked in the district, thereby leaving a gap for promotion of further
93 SHGs. The number of SHGs credit-linked stood at 1459. The block-wise details of the potential
available for promotion and savings-linkage of SHGs in the district is furnished in the Table under Para
6.7. Likewise, the potential for credit-linkage of the SHGs is furnished in the Table under Para 6.8.
6.6 Financing through Joint Liability Groups (JLGs)
Besides SHG-BLP, NABARD has been supporting formation of informal groups, viz., Joint Liability
Groups (JLGs) with 4-10 members. The groups are basically mid-segment clients engaged in similar
economic activities like crop production and are willing to jointly undertake to repay loans taken by the
group. The JLG mode of financing serves as collateral substitute for loans provided to small, marginal,
tenant farmers, oral lessees, share croppers, etc. It enables the banks to reach farmers through group
approach on a cluster basis, This facilitates peer education and credit discipline. Financing to the small,
marginal, tenant farmers and oral lessees through JLG mode of financing has been acknowledged as
one of the most successful products by the banks.

Considering an estimated number of 3000 small and marginal farmers/agricultural labourers in the
district, there is a potential for financing of 600 JLGs (considering average 5 members per JLG) in the
district. So far, a cumulative number of 16 JLGs have been financed to the tune of ₹ 5.40 lakh by
different banks in the district. The banks are expected to extend financial support to a minimum of 50
JLGs during the current year, including JLGs of tenant farmers.

Business Model on Financing JLGs through RRBs - NABARD has developed a business model
on financing JLGs through RRBs. In order to scale up the JLG performance, NABARD has entered into
MoU with 3 RRBs of the State.
Women Self Help Group (WSHG) Programme
WSHG is a programme of Government of India for formation, financing and nurturing of SHGs in
backward and Left Wing Extremism (LWE)-affected districts. At present, the programme is being
implemented in Dang, Dahod and Union Territory of Dadra & Nagar Haveli (D&NH).

60
 PLP 2019-20
DANG
6.7 Block-wise Details of Available Potential for Promotion and Savings-linkage of SHGs

Sr. Name of Total No. of Balance No. of SHGs No. of

No. the Block Potential SHGs Potential to be SHGs to be
for Savings- as on 31 Promoted & Promoted
Promotion linked on March Savings- and &
of SHGs 31 March 2018 linked during Savings-
2018 2018-19 linked
during
2019-20
1 Subir 1470 1450 20 20 425
2 Ahwa 1302 1290 12 12 425
3 Waghai 1378 1317 61 61 400
Dist. Total 4150 4057 93 93 1250

6.8 Block-wise Potential for Credit-linkage of SHGs

(₹ Lakh)

Sr. Name of No. of SHGs to be Credit-linked during SHGs to be credit linked during
No. the SHGs 2018-19 2019-20
block (Credit- Fresh Repeat Fresh Repeat
linked)
as on No. Amount No. Amount No. Amount No. Amount
31.3.18
1 Subir 495 325 295.00 75 65.00 425 325.00 75 70.00
2 Ahwa 475 375 335.00 80 72.00 425 325.00 85 77.00
3 Waghai 489 390 350.00 92 82.00 400 290.00 95 85.00
Dist. 1459 1090 980.00 247 219.00 1250 940.00 255 232.00
Total

61
 PLP 2019-20
DANG
DISTRICT : DANGS ANNEXURE - I

Activity-Wise /Block-wise Physical and Financial Projection - 2019-20

(` Lakh)
Sr.
Activity Unit Ahwa Block Waghai Block Subir Block Total
No.
Margin Phy. Fin. Bank Phy. Fin. Bank Phy. Fin. Bank Phy. Fin. Bank
Cost
% Units Outlay Loan Units Outlay Loan Units Outlay Loan Units Outlay Loan
I Agriculture
A Farm Credit
(i) Crop Production, Maintenance and Marketing
1 Paddy 0.44 1550 682.00 682.00 1410 620.40 620.40 1000 440.00 440.00 3960 1742.40 1742.40
2 Groundnut 0.32 420 134.40 134.40 310 99.20 99.20 255 81.60 81.60 985 315.20 315.20
3 Other Millets 0.22 800 176.00 176.00 660 145.20 145.20 600 132.00 132.00 2060 453.20 453.20
4 Pulses 0.27 810 218.70 218.70 755 203.85 203.85 600 162.00 162.00 2165 584.55 584.55
5 Vegetables 0.62 155 96.10 96.10 130 80.60 80.60 100 62.00 62.00 385 238.70 238.70
6 Sugarcane 1.22 35 42.70 42.70 30 36.60 36.60 20 24.40 24.40 85 103.70 103.70
7 Spices 0.40 75 30.00 30.00 45 18.00 18.00 50 20.00 20.00 170 68.00 68.00
8 Field Floriculture 1.09 20 21.80 21.80 15 16.35 16.35 10 10.90 10.90 45 49.05 49.05
9 Strawberry 0.92 35 32.20 32.20 30 27.60 27.60 10 9.20 9.20 75 69.00 69.00
10 Bannana (TCP) 1.37 45 61.65 61.65 35 47.95 47.95 10 13.70 13.70 90 123.30 123.30
TOTAL 3945 1495.55 1495.55 3420 1295.75 1295.75 2655 955.80 955.80 10020 3747.10 3747.10
10% of Crop Loan - Post
harvest/ Household/ 149.56 149.56 129.58 129.58 95.58 95.58 374.71 374.71
Consumption
20% of Crop Loan for Repairs
& Maintenance of Farm 299.11 299.11 259.15 259.15 191.16 191.16 749.42 670.14
Assets
Total 3945 1944.22 1944.22 3420 1684.48 1684.48 2655 1242.54 1242.54 10020 4871.23 4791.95
(ii) WATER RESOURCES
1 Dug Wells 1.85 10 15 27.75 24.98 14 25.90 23.31 11 20.35 18.32 40 74.00 66.60
2 Bore Wells 0.80 10 15 12.00 10.80 14 11.20 10.08 11 8.80 7.92 40 32.00 28.80
3 IP Sets 0.50 10 25 12.50 11.25 22 11.00 9.90 18 9.00 8.10 65 32.50 29.25
4 Lift Irrigation 1.65 10 19 31.35 28.22 17 28.05 25.25 14 23.10 20.79 50 82.50 74.25
5 Drip Irrigation 1.20 5 23 27.60 26.22 20 24.00 22.80 17 20.40 19.38 60 72.00 68.40
6 Sprinkler 0.45 5 4 1.80 1.71 3 1.35 1.28 3 1.35 1.28 10 4.50 4.28
Misc. (Renovation of well,
7 underground pipe, Booster 0.45 10 60 27.00 24.30 55 24.75 22.28 40 18.00 16.20 155 69.75 62.78
Pumps, Minor Conveyars, etc)
TOTAL 161 140.00 127.47 197 126.25 114.89 114 101.00 91.99 420 367.25 334.35

62
 PLP 2019-20
DANG
FARM MECHANISATION
1 Tractors 11.00 10 25 275.00 247.50 15 165.00 148.50 15 165.00 148.50 55 605.00 544.50
Power Tillers including
2 2.66 10 35 93.10 83.79 30 79.80 71.82 25 66.50 59.85 90 239.40 215.46
implements
Miscellaneous (farm vehicles,
power thresher, Self propelled
3 2.50 10 30 75.00 67.50 20 50.00 45.00 15 37.50 33.75 65 162.50 146.25
reaper & other specialized
power driven equipments etc)
TOTAL 90 443.10 398.79 65 294.80 265.32 55 269.00 242.10 210 1006.90 906.21
PLANTATION & HORTICULTURE
1 Mango 0.90 10 100 90.00 81.00 100 90.00 81.00 100 90.00 81.00 300 270.00 243.00
2 Sapota 0.90 10 40 36.00 32.40 35 31.50 28.35 25 22.50 20.25 100 90.00 81.00
3 Oil Palm 0.58 10 25 14.50 13.05 25 14.50 13.05 20 11.60 10.44 70 40.60 36.54
Others (lime, guava, custard
4 1.45 15 20 29.00 24.65 15 21.75 18.49 15 21.75 18.49 50 72.50 61.63
apple, etc.)
5 Medicinal Crops 3.95 15 25 98.75 83.94 25 98.75 83.94 25 98.75 83.94 75 296.25 251.81
Greenhouse Horticulture
6 9.35 15 15 140.25 119.21 15 140.25 119.21 15 140.25 119.21 45 420.75 357.64
(1000 SM)
TOTAL 225 408.50 354.25 215 396.75 344.04 200 384.85 333.33 640 1190.10 1031.62
FORESTRY AND WASTELAND DEV.
1 Farm Forestry 0.25 15 50 12.50 10.63 50 12.50 10.63 50 12.50 10.63 150 37.50 31.88
2 Jatropha 0.75 15 30 22.50 19.13 30 22.50 19.13 20 15.00 12.75 80 60.00 51.00
3 Bamboo Cultivation 0.45 15 30 13.50 11.48 30 13.50 11.48 20 9.00 7.65 80 36.00 30.60
4 Social Forestry 1.10 15 30 33.00 28.05 30 33.00 28.05 20 22.00 18.70 80 88.00 74.80
TOTAL 140 81.50 69.28 140 81.50 69.28 110 58.50 49.73 390 221.50 188.28
Dairy Development
1 C .B. cows (two unit) 0.91 10 260 236.60 212.94 260 236.60 212.94 100 91.00 81.90 620 564.20 507.78
2 Buffalo (two unit) 1.30 10 100 130.00 117.00 100 130.00 117.00 50 65.00 58.50 250 325.00 292.50
3 Indegenous Cows (two unit) 1.20 10 100 120.00 108.00 100 120.00 108.00 50 60.00 54.00 250 300.00 270.00

Misc. (Gauchar/Fodder Land

4 Development/Milk 1.00 10 10 10.00 9.00 10 10.00 9.00 10 10.00 9.00 30 30.00 27.00
Houses/Milk-O-tester)

TOTAL 470 496.60 446.94 470 496.60 446.94 210 226.00 203.40 1150 1219.20 1097.28

63
 PLP 2019-20
DANG
Poultry Development
1 RIR Structure - 500 bird unit 1.20 10 35 42.00 37.80 35 42.00 37.80 25 30.00 27.00 95 114.00 102.60
2 Broiler Structure - 500 bird unit 1.80 10 30 54.00 48.60 30 54.00 48.60 25 45.00 40.50 85 153.00 137.70

TOTAL 65 96.00 86.40 65 96.00 86.40 50 75.00 67.50 180 267.00 240.30
Sheep / Goat / Piggery Development
1 Goat (10 + 1) 0.45 10 50 22.50 20.25 50 22.50 20.25 50 22.50 20.25 150 67.50 60.75
TOTAL 50 22.50 20.25 50 22.50 20.25 50 22.50 20.25 150 67.50 60.75
FISHERIES (Inland)

1 Riv er fishing unit 1.00 15 2 2.00 1.70 2 2.00 1.97 1 1.00 0.98 5 5.00 4.25

2 New ponds 7.00 15 3 21.00 17.85 3 21.00 17.25 4 28.00 23.17 10 70.00 59.50

3 Renov ation of ex isting ponds 3.50 15 2 7.00 5.95 2 7.00 6.58 1 3.50 3.27 5 17.50 14.88

4 Fresh water Fish Culture 1.50 15 2 3.00 2.55 1 1.50 1.46 2 3.00 2.96 5 7.50 6.38
TOTAL 9 33.00 28.05 8 31.50 27.26 8 35.50 30.38 25 100.00 85.00
Other Agriculture ( Misc.)
1 Bullocks 0.35 10 20 7.00 6.30 20 7.00 6.30 15 5.25 4.73 55 19.25 17.33
2 Green Credit Card 1.00 0 75 75.00 75.00 75 75.00 75.00 50 50.00 50.00 200 200.00 200.00

TOTAL 95 82.00 81.30 95 82.00 81.30 65 55.25 54.73 255 219.25 217.33
T OT AL FARM CREDI T 5250 3747.42 3556.94 4725 3312.38 3140.15 3517 2470.14 2335.93 13440 9529.93 8953.06

B AGRICULTURE INFRSTRACTURE
(i) Storage Facilities
1 500 MT Unit (Cost per MT
1 Rs.1 0500) 1 57 .50 25 1 157.50 118.13 1 157.50 118.13 1 157.50 118.13 3 472.50 354.38
1 000 MT Unit (Cost per MT
2 Rs.1 0500) 1 05.00 25 2 210.00 157.50 1 105.00 78.75 1 105.00 78.75 4 420.00 315.00
Storage Godown- General (500
3 MT) 52.50 25 2 105.00 78.75 1 52.50 39.38 2 105.00 78.75 5 262.50 196.88
TOTAL 5 472.50 354.38 3 315.00 236.25 4 367.50 275.63 12 1155.00 866.25
(ii) Land Development, Soil Conservation, Watershed Development
LD (Levelling/
1 0.17 10 200 34.00 30.60 150 25.50 22.95 150 25.50 22.95 500 85.00 76.50
Bunding/Grading)
Farm Pond/water harvesting
2 0.41 10 200 82.00 73.80 150 61.50 55.35 150 61.50 55.35 500 205.00 184.50
structure (unlined ponds)
3 Silt application 0.14 10 200 28.00 25.20 150 21.00 18.90 150 21.00 18.90 500 70.00 63.00
Field Channel lining (generally
4 0.17 10 150 25.50 22.95 100 17.00 15.30 100 17.00 15.30 350 59.50 53.55
50 to 75 mts.)
TOTAL 750 169.50 152.55 550 125.00 112.50 550 125.00 112.50 1850 419.50 377.55

64
 PLP 2019-20
DANG
(iii) Others
3 Vermi Compost/Culture 0.32 10 150 48.00 43.2 150 48 43.20 150 48.00 43.20 450 144.00 129.60
Sub total of (B) 905 690.00 550.13 703 488.00 391.95 704 540.50 431.33 2312 1718.50 1373.40

C Ancillary Activities
(i) Food and Agro Processing
1 Flo ur Mill (Small Unit) 0 .60 10 2 1.20 1.08 2 1.20 1.08 2 1.20 1.08 6 3.60 3.24
2 Ric e/Po ha Mill (Small Unit) 9.45 10 2 18.90 17.01 2 18.90 17.01 1 9.45 8.51 5 47.25 42.53
3 Nagli Papdi 0 .80 10 12 9.60 8.64 10 8.00 7.20 8 6.40 5.76 30 24.00 21.60
4 Mango Pulp 0 .7 5 10 4 3.00 2.70 4 3.00 2.70 2 1.50 1.35 10 7.50 6.75
5 Cashew Pro c essing 1 .60 10 6 9.60 8.64 5 8.00 7.20 4 6.40 5.76 15 24.00 21.60
6 Spic es Making 0 .7 5 10 5 3.75 3.38 3 2.25 2.03 2 1.50 1.35 10 7.50 6.75
7 Kho v a/Paneer Making 0 .80 10 2 1.60 1.44 2 1.60 1.44 1 0.80 0.72 5 4.00 3.60
8 Butter, Cheese Making 5 .25 10 2 10.50 9.45 2 10.50 9.45 1 5.25 4.73 5 26.25 23.63
Total I nvestment credit Agro Prcs. 35 58.15 52.34 30 53.45 48.11 21 32.50 29.25 86 93.25 129.69
Total WC - 40% 23.26 20.93 21.38 19.24 13.00 11.70 37.30 51.88
Grand Total 35 81.41 73.27 30.00 74.83 67.35 21.00 45.50 40.95 86.00 130.55 181.57

(ii) Others
1 For Paddy 5.00 1 5.00 5.00 1 5.00 5.00 1 5.00 5.00 3 15.00 15.00
2 For Mango/Sapota 5.00 1 5.00 5.00 1 5.00 5.00 1 5.00 5.00 3 15.00 15.00
Total 10.00 10.00 10.00 10.00 10.00 10.00 30.00 30.00
Ancillary Activitieis - Sub Total 35 91.41 83.27 30 84.83 77.35 21 55.50 50.95 86 160.55 211.57

Total of Agriculture 6190 4528.83 4190.33 5458 3885.21 3609.45 4242 3066.14 2818.21 15838 11408.98 10538.02

I I Micro, Small and Medium Enterprise (MSME)

(i) Manaufacturing Sector - Term Loan
1 Carpentry 1.00 15 10 10.00 8.50 9 9.00 7.65 7 7.00 5.95 25 25.00 22.10

2 Leaf plates / bowl making 0.75 15 10 7.50 6.38 9 6.75 5.74 7 5.25 4.46 25 18.75 16.58

3 Drying of vegetables and fruits 0.63 15 4 2.52 2.14 3 1.89 1.61 3 1.89 1.61 10 6.30 5.36
4 Pickle/Papad & Spice making 0.84 15 4 3.36 2.86 3 2.52 2.14 3 2.52 2.14 10 8.40 7.14
5 Sweet Making 1.38 15 2 2.76 2.35 2 2.76 2.35 1 1.38 1.17 5 6.90 5.87
6 Engineering itesm 1.00 15 3 3.00 2.55 2 2.00 1.70 2 2.00 1.70 7 7.00 5.95
7 Chemicals & Cosmetics 1.26 15 2 2.52 2.14 2 2.52 2.14 1 1.26 1.07 5 6.30 5.36

8 Textile (Dress making, etc) 0.84 15 2 1.68 1.43 2 1.68 1.43 1 0.84 0.71 5 4.20 3.57
9 Bamboo Work 0.21 15 4 0.84 0.71 3 0.63 0.54 3 0.63 0.54 10 2.10 1.79
10 Embroidery Work 0.41 15 2 0.82 0.70 2 0.82 0.70 2 0.82 0.70 6 2.46 2.09
11 Jari Work 0.74 15 2 1.48 1.26 2 1.48 1.26 1 0.74 0.63 5 3.70 3.15
12 Black Smith 0.85 15 4 3.40 2.89 3 2.55 2.17 3 2.55 2.17 10 8.50 7.23
13 Miscellaneous 1.32 15 3 3.96 3.37 2 2.64 2.24 2 2.64 2.24 7 9.24 7.85
D SSI ( Others) 9.50 25 2 19.00 14.25 2 19.00 14.25 1 9.50 7.13 5 47.50 35.63
E Tourism Cluster 5.25 15 2 10.50 8.93 2 10.50 8.93 2 10.50 8.93 6 31.50 26.78
Total- I nvestment 56 73.34 60.44 48 66.74 54.83 39 49.52 41.14 141 187.85 156.41
Working capital @ 40% of
29.34 24.18 26.70 21.93 19.81 16.46 93.93 62.56
Projected Bank loan
Total 56 102.68 84.61 48 93.44 76.76 39 69.33 57.60 141 281.78 218.97

65
 PLP 2019-20
DANG
(ii) Service Sector - Term Loan
1 Transport Operators 4.75 15 15 71.25 60.56 10 47.50 40.38 10 47.50 40.38 35 166.25 141.31
2 Retail Trade/Small Business 1.00 15 10 10.00 8.50 9 9.00 7.65 7 7.00 5.95 26 26.00 22.10
3 Professionals/Self-Employed 1.60 15 10 16.00 13.60 9 14.40 12.24 7 11.20 9.52 26 41.60 35.36
4 Consumption Loans 0.50 15 20 10.00 8.50 20 10.00 8.50 20 10.00 8.50 60 30.00 25.50
5 Misc 0.50 15 7 3.50 2.98 6 3.00 2.55 5 2.50 2.13 18 9.00 7.65
Sub total 62 110.75 94.14 54 83.90 71.32 49 78.20 66.47 165 272.85 231.92
TOTAL - MSME 118 213.43 178.75 102 177.34 148.08 88 147.53 124.07 306 554.63 450.90

III Export Credit 0.00 0 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 0.00 0.00
IV Education Loan 5.00 15 4 20.00 17.00 3 15.00 12.75 3 15.00 12.75 10 50.00 42.50
V Housing Loan
Housing Loans 7.50 15 10 75.00 63.75 10 75.00 63.75 5 37.50 31.88 25 187.50 159.38
Loan for Repair/ Renovation of Houses
3.00 15 10 30.00 25.50 7 21.00 17.85 5 15.00 12.75 22 66.00 56.10
Sub Total 20 105.00 89.25 17 96.00 81.60 10 52.50 44.63 47 253.50 215.48
VI Renewable Energy
1 Bio-gas 4cum 0.40 10 15 6.00 5.40 10 4.00 3.60 10 4.00 3.60 35 14.00 12.60
2 Bio-gas 2cum 0.25 10 20 5.00 4.50 15 3.75 3.38 10 2.50 2.25 45 11.25 10.13
Installation of solar pumping/
3 5.25 25 2 10.50 7.88 2 10.50 7.88 1 5.25 3.94 5 26.25 19.69
off-grid
4 Solar Rooftop – 1KW 0.38 10 10 3.80 3.42 5 1.90 1.71 5 1.90 1.71 20 7.60 6.84
5 Solar Rooftop – 2KW 0.76 10 4 3.04 2.74 3 2.28 2.05 3 2.28 2.05 10 7.60 6.84
Sub Total TOTAL 51 28.34 23.93 35 22.43 18.61 29 15.93 13.55 115 66.70 56.09

VII Others
1 Loans to SHGs 1.00 0 425 425.00 425.00 425 425.00 425.00 400 400.00 400.00 1250 1250.00 1250.00
2 Loans to Joint Liability Group 0.50 0 50 25.00 25.00 50 25.00 25.00 50 25.00 25.00 150 75.00 75.00
3 PMJDY 0.05 500 25.00 25.00 500 25.00 25.00 500 25.00 25.00 1500 75.00 75.00
TOTAL 975 475.00 475.00 975 475.00 475.00 950 450.00 450.00 2900 1400.00 1400.00

66
 PLP 2019-20
DANG
VIII Social Infrastructure
1 Primary School 55.00 10 2 110.00 99.00 2 110.00 99.00 1 55.00 49.50 5 275.00 247.50
2 Reverse Osmosis (RO) Plants 5.25 10 2 10.50 9.45 2 10.50 9.45 1 5.25 4.73 5 26.25 23.63
3 Toilets 0.25 10 100 25.00 22.50 30 7.50 6.75 20 5.00 4.50 150 37.50 33.75
Sub total 104 145.50 130.95 34 128.00 115.20 22 65.25 58.73 160 338.75 304.88

GRAND TOTAL 7462 5516.09 5105.22 6624 4798.97 4460.69 5344 3812.35 3521.92 19376 14072.56 13007.86

67
 PLP 2019-20
DANG
ANNEXURE - II

An overview of flow of Ground Level Credit : 2015-16, 2016-17, 2017-18 and Target for 2018-19
Name of the District : DANG

Sr. Sector 2015-16 2016-17 2017-18 2018-19

No. Target Ach. Target Ach. Target Ach. Target
1 Crop Loan
CBs 1990.00 131.00 1190.00 254.00 1190.00 291.00 1290.00
CCB 460.00 17.00 390.00 472.00 490.00 2.00 490.00
PLDB 0.00 0.00 0.00 0.00 0.00 0.00 0.00
RRB 550.00 162.00 420.00 141.00 520.00 127.00 520.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sub-Total 3000.00 310.00 2000.00 867.00 2200.00 420.00 2300.00
2 Term Loan (MT+LT)
CBs 3600.00 210.00 1800.00 155.00 1800.00 318.00 1880.00
CCB 800.00 585.00 390.00 31.00 390.00 0.00 390.00
PLDB 0.00 0.00 0.00 0.00 0.00 0.00 0.00
RRB 1100.00 4.00 580.00 15.00 580.00 3.00 580.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sub-Total 5500.00 799.00 2770.00 201.00 2770.00 321.00 2850.00
3 Total Agriculture Credit (1+2)
CBs 5590.00 341.00 2990.00 409.00 2990.00 609.00 3170.00
CCB 1260.00 602.00 780.00 503.00 880.00 2.00 880.00
PLDB 0.00 0.00 0.00 0.00 0.00 0.00 0.00
RRB 1650.00 166.00 1000.00 156.00 1100.00 130.00 1100.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sub-Total 8500.00 1109.00 4770.00 1068.00 4970.00 741.00 5150.00
4 Non-Farm Sector
CBs 102.00 116.00 155.00 9.00 155.00 406.00 155.00
CCB 21.00 0.00 32.00 3.00 32.00 0.00 32.00
PLDB 0.00 0.00 0.00 0.00 0.00 0.00 0.00
RRB 27.00 0.00 42.00 0.00 42.00 1.00 42.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sub-total 150.00 116.00 229.00 12.00 229.00 407.00 229.00
5 Other Priority Sector
CBs 900.00 202.00 720.00 242.00 900.00 130.00 840.00
CCB 196.00 73.00 51.00 175.00 51.00 2.00 34.00
PLDB 0.00 0.00 0.00 0.00 0.00 0.00 0.00
RRB 254.00 95.00 230.00 15.00 230.00 132.00 208.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sub-Total 1350.00 370.00 1001.00 432.00 1181.00 264.00 1082.00

Grand Total 10000.00 1595.00 6000.00 1512.00 6380.00 1412.00 6461.00

68
 PLP 2019-20
DANG
ANNEXURE - III

Sub-sector wise and Agency-wise Credit Flow under Agriculture and Allied Activities by the Agencies - 2015-16, 2016-17, 2017-18 and Target for 2018-19

District : Navsari (` Lakh)

Sr. No. Sector 2015-16 2016-17 2017-18 2018-19 (Targets)
CBs Coops. RRB Total CBs Coops. RRB Total CBs Coops. RRB Total CBs Coops. RRB Total
I Crop Loan 131.00 17.00 162.00 310.00 254.00 472.00 141.00 867.00 291.00 2.00 127.00 420.00 1290.00 490.00 520.00 2300.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II Term Loan
a Minor Irrigation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
b Land Development 3.00 0.00 0.00 3.00 0.00 0.00 0.00 0.00 4.00 0.00 0.00 4.00 450.00 0.00 0.00 450.00
c Farm Mechanisation 12.00 31.00 0.00 43.00 7.00 0.00 0.00 7.00 8.00 0.00 0.00 8.00 680.00 0.00 0.00 680.00
d Plantation & Horticulture 66.00 98.00 0.00 164.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
e Dairy Development 41.00 8.00 1.00 50.00 21.00 0.00 0.00 21.00 12.00 0.00 0.00 12.00 600.00 0.00 0.00 600.00
f Poultry Farming 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
g Sheep/Goat/Piggery 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
h Fisheries 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
i Forestry (Inc. WLD) 2.00 442.00 0.00 444.00 0.00 1.00 0.00 1.00 3.00 129.00 0.00 132.00 650.00 200.00 20.00 870.00
j Storage & Market Yards 0.00 6.00 0.00 6.00 0.00 0.00 0.00 0.00 0.00 5.00 0.00 5.00 0.00 50.00 0.00 50.00
k Sericulture 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
l Bio-gas 86.00 0.00 3.00 89.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
m Others 0.00 0.00 0.00 0.00 127.00 30.00 15.00 172.00 115.00 28.00 17.00 160.00 100.00 40.00 60.00 200.00
Sub-Total II 210.00 585.00 4.00 799.00 155.00 31.00 15.00 201.00 142.00 162.00 17.00 321.00 2480.00 290.00 80.00 2850.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
GRAND TOTAL 341.00 602.00 166.00 1109.00 409.00 503.00 156.00 1068.00 433.00 164.00 144.00 741.00 3770.00 780.00 600.00 5150.00

69
 PLP 2019-20
DANG
Annexure IV
Indicative Unit Costs (for major activities of the district) as considered by NABARD for its
internal use
Unit
Activity Unit cost Activity Unit cost Unit size
size
WATER RESOURCES DAIRY DEVELOPMENT
Dug wells (4 m x 15 m) 185,000 Nos. Crossbred cows 91,000 2 Nos.
Pumpsets (12.5 hp) 45,000 Nos. Buffaloes (Mehasani) 120,000 2 Nos.
Lift irrigation 125,000 Nos.
Bore well / Tube Well (75
75,000 Ha. GOATERY
mtr)
Drip irrigation (1 x 0.6) 127,000 Nos. Goat rearing 45,000 10 + 1
Sprinkler irrigation (10 x 10) 59,000 Ha Sheep rearing 70,000 20 + 1

LAND DEVELOPMENT FISHERIES

Bunding & soil conservation 12,000 Ha. Fibre Glass Boat 500,000 Ha.
25400 to Fish pond - New
Land reclamation Ha. 250,000 Ha.
29200 construction
Fish pond - Renovation
Land levelling 13800 to 17500 Ha. 125,000 Ha.
of existing pond
35000 to
Farm ponds (20 x 2021 mtr) No. Brackish Water Farming 1500000 Ha.
40800

PLANTATION / HORTICULTURE STORAGE GODOWNS/MARKET YARD

Mango (5 X 5) 82,000 Ha. 160 MT 10,500 Per MT
Sapota (5 X 5) 87,000 Ha. 200 MT 10,000 Per MT
Lime (3 X 3) 145,316 Ha. 300 MT 8,500 Per MT
Pomegranate (5 X 2.5) 160,000 Ha. Avg. cost per MT 9,500
Aonla (4 X 5) 88,000 Ha.
FARM MECHANIZATION OTHER ALLIED ACTIVITIES
Tractors - > 35 HP 800,000 Nos. Bullocks pair 50,000 Nos.
Power tillers 242,000 Nos.
Note : Above-mentioned unit costs are only indicative and based on the viability of the project,
the banks may decide about the unit cost / loan amount.
Projections for 2018-19 have been made by increase of 5% of Unit Cost 2017-18

70
 PLP 2019-20
DANG
ANNEXURE-V

Scale of Finance for major crops fixed by DLTC

(Amt.
in `)
Sr.No. Crop SOF SOF SOF SOF
(per Ha.) (per acre) (per Ha.) (Per Ha.)
2016-17 2017-18 2017-18 2017-18 +
5%
increase
1 Kharif Paddy - Unirrigated 37050 15000 37050 38903
2 Kharif Paddy - Irrigated 39520 16000 39520 41496
3 Rabi Paddy 39520 16000 39520 41496
4 Wheat - Irrigated 22230 12000 29640 31122
5 Groundnut - Kharif 29640 12000 29640 31122
6 Groundnut - Rabi 29640 12000 29640 31122
7 Jowar 17290 8000 19760 20748
8 Sapota 61750 25000 61750 64838
Mango - More than 10 year 86450 35000 86450
9 old trees 90773
10 Papaya - Tissue Culture 74100 35000 86450 90773
Papaya - Other than Tissue 29640 15000 37050
11 culture 38903
12 Banana - Tissue Culture 98800 50000 123500 129675
Banana - Other than Tissue 54340 25000 61750
13 culture 64838
14 Suran - Ginger 49400 20000 49400 51870
15 Chilly 37050 15000 37050 38903
16 Vegetable 54340 22000 54340 57057
Coarse cereals - Ragi, Nagli, 19760 8000 19760
17 Warai 20748
18 Maize 17290 7000 17290 18155
19 Pulses 24700 10000 24700 25935
20 Animal fodder 14820 6000 14820 15561
21 Watermelon 49400 20000 49400 51870
22 Sugarcane - New Plantation 79040 45000 111150 116708
23 Sugarcane - "Lam" 44460 22000 54340 57057
24 Gulchadi 98800 40000 98800 103740
25 Lili 98800 40000 98800 103740

71
 PLP 2019-20
DANG

72