NABARD West Godavari - PLP 19-20

PLP 2019-20 | West Godavari
प्राक्‍
कथन
आंध्र प्रदे श ने अपने विज़न 2029 में "डबल डडजिट समािेशी विकास" प्राप्त करने और कृ वि, कृ वि-सेिाओं और कृ वि प्रसंस्कर
के क्षेत्र में अग्र ी राज्य बनने क पिरक्‍पना क ै ताडक राज्य के लगों के िल िृवधिशशील मल्‍य सृिन सनिनजचितत डकया िा
सके. आिथिक विकास के मामले में ििि 2017-18 के िल कृ वि के तैत 17.76% क अित प्रभािशाली क्षेत्रीय िृवधिश दर के साथ
आंध्र प्रदे श ों त 3 ििों में दे श में सबसे तेज़ी से विकिसत ैगने िाले राज्य में से क के मप में ाभरा ै. राज्य में ग्रामी
विकास कग बढािा दे ने ैे तन ापलब्ध अपार संभािनाओं के म्े नज़र ििों से नाबाडि क पैल का ुनकाि मगटे तरर पर समािेशी
विकास और संधार ीय ग्रामी विकास क ओर रैा ै.
आिथिक पिरितिन लाने के िल बैंक ऋ क मैत्िपल ि टटक ैगता ै और यै राज्य क विकास आयगिना क रढढ क ै्डढ
के समान ैगता ै. ग्रामी अथिव्यिस्था कग बढािा दे ने ैे तन जिले क मरिलदा ों ितवििधय के साथ-साथ नई ों ितवििधय के
अंतों ित ापलब्ध ऋ संभाव्यताओं कग मप करने के िल नाबाडि ििि 1989 से जिला स्तरढय संभाव्यता यन्‍त ऋ यगिना ं
(पी लपी) तयार करता आ रैा ै. इन पी लवपय में वििभन्न से्‍टर के अंतों ित ऋ संभाव्यता क ापलब्धता और ब्लॉक
स्तर पर कवत्रत संभाव्यताओं क ापलब्धता दशािई िाती ै. इन पी लवपय में लंबी अििध क भरितक संभाव्यताओं, आधारभलत
ढांच , विप न सनविधाओं और सरकारढ नीितय / कायिक्रम क ापलब्धता पर भी विचार डकया िाता ै और समय के साथ
यै पी लपी जिला ऋ यगिना तयार करने ैे तन आधार बनती ों ई िसा डक भारतीय िरज़िि बैंक द्वारा अिनिायि डकया ों या
ै.
नाबाडि द्वारा ििि 2019-20 क पी लवपय कग राज्य और केन्र सरकार क प्राथिमकताओं के अननसार तयार डकया ों या ै, साथ
ैढ यै भी सनिनजचितत डकया ों या ै डक िे केजन्रत और कायािन्ियनयग्‍य ै ताडक बैंक अपनी शाााओं क ऋ यगिना ं
तयार करते समय इनका अिधक लाभप्रद मप से इस्तेमाल कर सकें. िलिायन पिरितिन ििनत पिरजस्थितय कग ‍यान में
राते ैन स्थानीय पिरजस्थितय के िल ापयन्‍त संधार ीय कृ वि पधिशितय , डकसान ात्पादक संटटन , प्राकृ ितक ाेती कग बढािा
दे ने और डकसान क आय बढाने के िल ािचत िगर डदया ों या ै. इस ििि, सलचनाप्रद अ‍याय दे ने के मा‍यम से पी लवपय
कग और अिधक ापयगों कताि-सनलभ िं व्यापक मप से स्िीकायि बनाया ों या ै. विस्तृत संदभि के िल इन अ‍याय कग नाबाडि
क िेबसाइट पर अपलगड डकया िा ों ा और पी लपी में इसके िलंक/ संदभि ापलब्ध करा िा ंों े.
पी लपी में, जिले में विद्यमान अंतर , जिन्ैें दरल डकया िाना ि मरढ ै, आिश्यक िलंकेि सैयगों और राज्य सरकार से अपेजक्षत
अन्य सैयगों के बारे में भी िानकारढ शािमल क ों ई ै ताडक बैंक ऋ के मा‍यम से संबिं धत से्‍टर में ापलब्ध
संभाव्यताओं का दगैन डकया िा सके. बैंक से भी यै अपेजक्षत ै डक िे सामने आ ं और पी लपी दस्तािेज़ में वििभन्न
से्‍टर के अंतों ित दशािई ों ई यथाथििादढ संभाव्यताओं कग साकार करने के िल अग्रसडक्रय मप से वि्तपपगि करें .
मैं आशा करता ैलं डक यै दस्तािेज़ जिले में ऋ प्रिाै बढाने ैे तन अपना रगड मप तयार करने में बैंक कग और अपने िनिेश
पगटि फगिलयग क पैचान करने, विशेि मप से आधारभलत संरचनाओं के क्षेत्र में, राज्य सरकार कग ापयगों ी िसधिश ैगों ा. नाबाडि
"स्ि ि आंध्र प्रदे श" के सतत ् विकास में तेज़ी लाने ैे तन सभी डैतधारक और आंध्र प्रदे श सरकार के साथ िमलकर काम करने
क अपनी प्रितबधिशता दगैराता ै.
विकास क बैन-डैतधारक संचािलत प्रडक्रया ै और इसका श्रेय ान सभी कग िमलना चाडै जिन्ै ने कायििनपपादन में प्रत्यक्ष
अथिा अप्रत्यक्ष मप से अपना यगों दान डदया ै. मैं, इस दस्तािेज़ कग प्रकाश में लाने ैे तन ैमारे जिला विकास प्रबंधक कग
बैनमल्‍य सलचना ं ापलब्ध कराने के िल जिला कल्‍टर , अग्र ी जिला प्रबंधक , राज्य सरकार के वििभन्न सैायक विभाों ,
भारतीय िरज़िि बैंक, स लबीसी, बैंक िं अन्य विकासात्मक िेंिसय के प्रित ृददय से धन्यिाद व्य्‍त करता ैलं.
के.‍सुरेश‍कुमार
मनख्य मैाप्रबंधक
आन्ध्र प्रदे श क्षेत्रीय कायािलय
ैदराबाद
03 अ्‍तलबर 2018
i
Foreword
Andhra Pradesh, under Vision 2029 has envisaged to attain “Double Digit Inclusive Growth” and
become a leading state in agriculture, agri-services and agro-processing to ensure enhanced value
generation to the people of the state. In terms of economic growth, Andhra Pradesh has emerged as one
of the fastest growing states in the country in the last 3 years, with an impressive sectoral growth rate
of 17.76% under Agriculture for 2017-18. Owing to the immense potential in the state for fostering rural
development, NABARD’s initiatives over the years have been broadly aligned towards inclusive growth
and sustainable rural development.
Bank credit is an important component for economic transformation and forms the backbone of
development planning in the state. NABARD has been preparing the district level Potential Linked
Credit Plans (PLPs) since 1989 to map the credit potential under existing as well as new activities for
boosting the rural economy. The PLPs reflect availability of credit potential under different sectors with
disaggregated potential at block level. The PLPs take into account the long term physical potential,
availability of infrastructure support, marketing facilities and Government policies/ programmes, and
have become a precursor to the District Credit Plan over a period of time as mandated by RBI.
The PLPs for 2019-20 have been prepared by NABARD in accordance with the priorities of the State
and Central Governments, while ensuring that they are focused and implementable so that banks can
utilize them more gainfully while preparing the Branch Credit Plans. Due emphasis has been given to
promotion of sustainable agricultural practices suitable to local conditions, Farmer Producer
Organizations (FPOs), natural farming and enhancing of Farmers’ Incomes taking into account the
climate change phenomenon. This year, the PLPs have also been made a more user-friendly and
universally accessible document by way of informative chapters being placed online on NABARD
website for detailed reference, with necessary link/ reference given in the PLP.
The PLPs also contain information on the critical gaps to be addressed, the linkage support to be
provided and other interventions required to be made by the State Government for harnessing the
potential available in the respective sectors with bank credit. The banks also need to come forward and
finance proactively for realizing the realistic potential reflected in the PLP document under various
sectors.
I hope that the document will be useful to bankers in preparation of a road map for enhancing the flow
of credit in the district and to the Government in identifying investment priorities, especially in the
infrastructure sector. NABARD reiterates its commitment to work in tandem with all the stakeholders
and the Government of Andhra Pradesh for ushering in sustainable growth in ‘Swarna Andhra Pradesh’.
Development is a multi-stakeholder driven process and the credit should be shared by one and all who
contributed to the performance directly or indirectly. I would like to place on record my sincere thanks
to the District Collectors, Lead District Managers, various Line Departments of State Government, RBI,
SLBC, Banks and other Developmental Agencies for providing valuable inputs to our District
Development Managers for bringing out this document.
K. Suresh Kumar
Chief General Manager
Andhra Pradesh Regional Office
Hyderabad
03 October 2018
ii
INDEX
Chapter Particulars Page
No. No.
Executive Summary iv
Sector/Sub-Sector-wise Projection – 2019-20 (Appendix A & B) vi
District Profile along with the Map of the District viii
Banking Profile xi
Methodology of Preparation of Potential Linked Credit Plans xiii
1 Important Policies and Developments

1.1 Policy Initiatives – Government of India 1
1.2 Policy Initiatives – Reserve Bank of India 1
1.3 Policy Initiatives – NABARD 2
1.4 Government of India Sponsored Programmes with Bank Credit 4
1.5 Sustainable Agricultural Practices 4
1.6 Policy Initiatives – State Government 5
1.7 State Government Sponsored Programmes with Bank Credit 7
1.8 Sustainable Agricultural Practices in the State 7
2 Credit Potential for Agriculture
2.1 Farm Credit 9
2.1.1 Crop Production, Maintenance and Marketing 9
2.1.2 Water Resources 12
2.1.3 Farm Mechanization 14
2.1.4 Plantation and Horticulture including Sericulture 16
2.1.5 Forestry and Waste Land Development 20
2.1.6 Animal Husbandry – Dairy 22
2.1.7 Animal Husbandry – Poultry 24
2.1.8 Animal Husbandry – Sheep, Goat, Piggery, etc. 25
2.1.9 Fisheries 26
2.1.10 Farm Credit – Others- Bullocks, Carts, Two Wheelers, etc. 31
2.2 Agriculture Infrastructure
2.2.1 Construction of Storage and Marketing Infrastructure 32
2.2.2 Land Development, Soil Conservation and Watershed Development 33
2.2.3 Agri. Infrastructure- Others 34
2.3 Agriculture – Ancillary Activities
2.3.1 Food and Agro Processing 36
2.3.2 Agri. Ancillary Activities – Others 38
3 Credit Potential for Micro, Small & Medium Enterprises 40
(MSME)
4 Credit Potential for Export Credit, Education and Housing 43
5 Credit Potential for Infrastructure
5.1 Infrastructure – Public Investments 47
5.2 Social Infrastructure Involving Bank Credit (2019-20) 52
5.3 Renewable Energy 53
6 Informal Credit Delivery System 56
Annexure I Activity-wise and Block-wise Physical and Financial Projections – 2019-20 60

Annexure II An Overview of Ground Level Credit Flow – Agency-wise and Sector-wise – 75
2015-16, 2016-17, 2017-18 and Target for 2018-19
Annexure III Sub-Sector-wise and Agency-wise Credit Flow Under Agriculture and Allied 76
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 at by 77
NABARD for its Internal Use
Annexure V Scale of Finance for Major Crops Fixed by District Level Technical Committee 80
(DLTC) for 2018-19
iii
Executive Summary
1. Brief narration of the district.

1.1. West Godavari is one of the coastal districts of Andhra Pradesh. The irrigated area in the
district is catered by Godavari Western delta and Krishna Eastern delta systems besides
borewells, filter points and irrigation tanks. The soils are fertile, alluvial, black reger and red
ferruginous, besides small belt of arenaceous sandy soils along the coastal belt. The normal
rainfall of the district is 1153 mm and deficient rainfall recorded during 2017-18 at 8741.1 mm.
The Gross Cropped Area in the district stood at 6.98 lakh ha. while the Net Sown Area stood
at 3.93 lakh ha. The irrigated area in the district under assured irrigation through various
sources, like canals, tube wells and filter points accounts for 92.6% of Gross Cropped Area.
Area dependent on rainfall is 7.4%. The cropping intensity is around 165%.The district is
known as one of the rice granaries of the State. During 2017-18, it produced 17.82 lakh MT. of
Rice. Other significant crops produced are maize 5.24 lakh MT, Oilseed 0.09 lakh Mt., Pulses
0.22 lakh MT. and total commercial crops 98.47 lakh MT.
1.2. Agriculture and horticulture crops grown in the district include paddy, sugar cane,
groundnut, maize, oil palm, lemon, cashew and aqua based resources such as Fish and Prawn,
etc., Besides mineral based resources such as ball clay, fire clay, quartz, road metal, building
stone minerals are major resources. The important non-farm activities in the district are
Handloom activity that is spread in fifteen mandals, export quality crochet lace manufacturing
tiny sector in Narasapur mandal and production of quality carpets at Eluru. There are 5117
MSMEs established in the district with a total investment of ` 1011.60 crore and generating
employment to 50,867 persons. In the handloom sector, 22 Weavers Societies having 3,878
handloom weavers in cooperative fold and 842 in outside cooperative fold. The main
handloom pockets in the district are Bhimavaram, Palakole, Achanta, Narasapur,
Veeravasaram and Tanuku areas, the handloom products are sarees, gada cloth, etc.
2. Sectoral Trends in Credit Plan

The ground level credit viz., 2015-16, 2016-17 and 2017-18 for Priority Sector stood at
` 9195.35 crore ` 10817.30 crore and ` 12320.07 crore, respectively. Crop loans accounted
for major share in the GLC and the last three years its share was above 55% of the GLC. The
performance under ACPs for the years 2015-16, 2016-17 and 2017-18 was 80%, 85% and 85%,
respectively. The major sectors in investment credit were Minor Irrigation, Fisheries, Animal
Husbandry, Farm mechanization and Agricultural Infrastructure.
3. Potential projects for 2019-20

The priority sector credit requirement of the district for the year 2019-20 is estimated at
` 1977483.79 lakh which represents 16% increase over previous year potential of ` 1701940.65
lakh. The increase is mainly on account of incorporation of cost norms suggested in the revised
unit cost, scale of finance and improvement infrastructure. The projections are made as per
the revised guidelines of RBI for priority sector. The sector wise projections are furnished in
the concerned chapters. The joint mandal wise potential projects indicated in the Annexure I.
4. Major Constraints and suggested action points

Lack of extension services, absence of last mile connectivity for access to market by farmers,
inadequate storage facilities like godowns and cold storages are some of the major constraints
faced in the district. Inability of tenant farmers to access credit from formal financial
institutions for cultivating in leased lands is a major hurdle, which needs to be addressed.
To fully harness the potential in the district by overcoming the constraints, focus should be
made on large scale promotion of efficient water management practices, use of solar energy
for agriculture pump sets, promotion of farm machinery custom hiring centres, wasteland
development, improving the fodder production and Contingency Crop Planning (CCP).
iv
5. Development Initiatives having a bearing of flow of Credit.

5.1. To augment credit flow in the district, NABARD has taken up many developmental
initiatives which includes implementation of 3 TDF projects, promotion of 6 Farmers
Producers Organisation, promotion of Farmers Clubs, 2 Area Development Programmes on
integrated dairy and sheep rearing, MEDPs and LEDP, etc. Further, 1096 projects related to
infrastructure development viz., roads & bridges, irrigation, APMIP, schools/junior colleges,
veterinary units, anganwadi centres, rural water supply, agriculture, horticultural and
fisheries research institutes, etc. are supported under RIDF by NABARD in the district.
Further, Lift irrigation projects were also supported under LTIF. With these projects, the
critical infrastructure has been creased in the district, which has direct bearing on the credit
flow in the district.
5.2 The State Government announced a slew of measures such as promotion of micro
irrigation, soil and water conservation (Neeru Chettu), technology facilitation (Polam
Pillustundi), institutional strengthening (FPOs) and market facilitation through corporate tie
up, etc. Tradition of following various cropping patterns by covering 3 seasons in the district
helps in doubling of farm income. The proposed strategy should focus on production cost
minimization and profit optimization.
5.3. Banks have to encourage financing water conservation & efficient use activities such as
micro irrigation systems, water harvesting structures, on farm development works, etc., for
per drop more crop. Credit for thrust areas such as Social Infrastructure should be
encouraged. Better monitoring and review in JLMBC and DCC meetings and implementation
of Financial Inclusion plans including better coverage of LECs/tenant farmers through
JLGs/RMGs/SHGs and Farmers Producers Organisations, pledge finance against Negotiable
Warehouse Receipts will facilitate in achieving the goal of doubling of farmers’ income
6. Thrust Areas for 2019-20

6.1 Mainstreaming the financially excluded
The past year has seen a number of steps taken towards promoting financial inclusion in a big
way viz., the Pradhan Mantri Jan Dhan Yojana (PMJDY), Prime Ministers Social Security
Schemes, Mudra Yojana, etc. Mainstreaming these account holders into the banking fold with
these new schemes would continue to be the thrust area for 2019-20.
6.2. Financing Tenant farmers

Tenant farmers to access credit from for formal financial institutions for cultivating in leased
lands without affecting the rights of the owner of the land.
6.3 Accelerating pace of capital formation in agriculture & allied sector

Banks to give thrust for agriculture term loans to farmers that will lead to capital formation in
agriculture.
6.4 Promotion of JLG

Banks need to adopt to JLG mode of lending, at least where lending to individual is not
possible due to land title/security related issues and to finance JLGs of women.
7. The Way Forward

The projections made in the PLP for 2019-20 call for coordinated approach by all stakeholders
viz., Banks, Government Departments, extension agencies, etc. which in turn are expected to
significantly enhance capital formation in agriculture leading to prime goal of “Doubling of
Farmers income by 2022”. Banks on their part are required to ensure timely reporting of
credit flow data to the Lead Bank so that timely/corrective action, if required could be initiated
through discussions in the various fora, viz, DCC, DLRC, etc.
v
BROAD SECTOR WISE PLP PROJECTIONS - 2019-20

(`lakh)
S.No Particulars PLP Projections
I
A Farm Credit
i Credit Potential for Agriculture 900006.08
ii Term Loan for agriculture and allied activities 236346.74
Sub Total 1136352.82
B Agriculture Infrastructure 52156.20
C Ancillary Activities 43186.20
Credit Potential for Agriculture 1231695.22
II Micro, Small and Medium Enterprises 222141.40
III Export Credit, Education and Housing 304008.00
Infrastructure - Public Investments, Social
infrastructure involving bank credit and Renewable
IV Energy 11902.92
V Informal Credit Delivery System 207736.25
Total Priority Sector (I to V) 1977483.79
PLP Projection 2019-20

Infrastructure & Informal Credit
Renewable Energy Delivery System
1% 11%
Export Credit,
Education and
Housing
15% Farm Credit
45%
MSME
11%
TL for agrl.& allied
activities
12%
Ancillary Activities
2%
Agriculture
Infrastructure
3%
vi
Summary of Sector/Sub-Sector wise PLP Projections - 2019-20

(₹ lakh)
PLP
S.No Particulars Projections
2019-20
I
A Farm Credit
i Credit Potential for Agriculture 900006.08
ii. Water Resources 21138.34
iii Farm Mechinisation 30550.66
iv Plantation and Horticulture (including Sericulture) 12271.80
v Forestry and Waste land Development 4887.93
vi Animal Husbandry - Dairy 30179.80
vii Animal Husbandry - Poultry 27602.37
viii Animal Husbandry - Sheep, Goat,Piggery, etc 4174.29
ix Fisheries (Marine, Inland, Brackish Water) 103755.05
x Others - Bullock, Bullock-cart, etc. 1786.50
Sub Total 1136352.82
B Agriculture Infrastructure
Construction of storage facilities (Warehouses, Market yards, Godowns,
i Silos, Cold Storage units/Cold storage chains) 35481.51
ii. Land Development, Soil conservation, Watershed development 12838.74
Others(Tissue culture, Agri bio-technology, Seed production, Bio
iii pesticides/fertilizers, Vermin Composting) 3835.95
Sub Total 52156.19715
C Ancillary Activities
i Food and Agro Processing 42368.70
Others ( Loans to Cooperative Societies of farmers for disposing of their
produce, Agri clinics/Agri Business Centres, Loans to
ii PACS/FSS/LAMPS, loans to mFIs for onlending) 817.50
Sub Total 43186.20
Total Agriculture 1231695.22
II Micro, Small and Medium Enterprises
i Manufacturing Sector - Term Loan 171700.00
ii Manufacturing Sector - Working Capital 50441.40
Total MSME 222141.40
III Credit Potential for
Export Credit 120750.00
Education 43308.00
Housing 139950.00
IV Credit Potential for
Infrastructure - Public Investments, Social Infrastructure
involving bank credit 3161.70
Renewable Energy 8741.22
V Informal Credit Delivery System 207736.25
Total Priority Sector 1977483.79
vii
viii
ix
District Profile
Location, Demography, Topography, Socio-economic status, etc.: The district lies

in Godavari Western delta and Krishna Eastern delta with geographical area of 8.51 lakh ha.
The normal rainfall of the district 1153 mm. According to the 2011 census West Godavari
district has a population of 3995740 of which males are 19,93,747 and females are 20,01,993.
The population in rural are 31,86,965 and urban are 808777. The district has well established
Higher Education Infrastructure including very premier institutions.
Gross Value Added (GVA) & Other economic indicators: The GVA of the district stood
at ` 71,268 crores at basic prices for the year 2017-18 and ranks fifth in the State. The per capita
income at current prices of the district was Rs. 1,72,006 during 2015-16 and ranks 3rd in the
State.
Industrial Scenario: There are 9 Mega Projects and 69 large projects are under
implementation in the district with an investment of ` 2584.39 crore and ` 3041.48 crore and
generating employment to 2352 and 15,715 persons, respectively.
Micro, Small and Medium Enterprises: There are 5117 MSMEs established in the district
with a total investments of Rs. 1011.60 crore and generating employment to 50,867 persons.
There is a vast scope for development of enterprises in the micro, small and medium
enterprises sectors in Agriculture and Horticulture, mineral based and aqua based resources.
Agricultural Scenario: The Gross Cropped Area in the district stood at 6.98 lakh ha while
the Net Sown Area Stood at 3.93 lakh ha. The irrigated area in the district under assured
irrigation through various sources, with canals, tubewells and filters points accounts for 92.6%
of Gross Cropped Area. Total dependence on rainfall is 7.4%. The cropping intensity is around
178%. Paddy is the major crop grown in the district in an area covering 3,93,223 ha.
Horticulture: The district has potential for growing various Horticultural Crops. Due to
available resources like land, irrigation and other infrastructure facilities, there is a vast scope
for the development of Horticulture in this district. The district is a front running producer of
a variety of Horticulture wealth. Horticulture cropped area is 1.61 Ha. 85% area existing in 26
upland mandals. The district stands first in Oil Palm and Cocoa in Area and Production.
Animal Husbandry: Dairy activity has become mainstay of small and marginal farmers in
the district. The milk production in the district is estimated at 12.6 MT (8.9% of state milk
production) for the year 2017-18 and buffaloes accounted for nearly 83% of the district milk
production. The per capita dairy milk availability works out to 627 gm./day as against 536
gms/day at the State level. There are 101.12 lakh poultry birds which includes 13.14 back yard
poultry birds. The egg production in the district for the year 2017-18 was 356 crore and GVA
to ` 1268 crore. The per capita eggs availability works out to 536 eggs/annum as compared to
the State average of 250 eggs/annum. The meat production in the district is estimated at 48618
MT (6.1% of state meat production) for the year 2017-18.
Fisheries: The district has a coast line of 20 Km. spread and continental shelf area of 536
sq.km. River Godavari with a stretch of 120 km. There are about 18 fish landing centers, 9 fish
drying yards, 26 marine villages and 174 inland fisherman villages, 30 motarised crafts and 40
traditional crafts. 5 fish feed mills with a capacity of 2100 tonnes are in existence.
x
xi
Banking Profile
West Godavari district has a well-developed banking network with 22 Nationalised banks
having 448 branches, Private Banks having 88 branches, Chaitanya Godavari Grameena Bank
(CGGB) with 42 branches, APGVB with 3 branches, Eluru DCCB with 34 branches. Besides
this, there are 259 PACS affiliated to DCCBs providing credit to its members. APSFC has a
branch at Eluru to extend industrial finance. The district has reported over 90% coverage
under Financial Inclusion. Andhra Bank and SBI account for major chunk of business with 117
and 79 branches respectively out of total 505 branches of CBs.
Financial Literacy and Credit Councelling Centres (FLCCS)

At present there are six FLCCS existing in the district. Three centers are located at Eluru
(DCCB,Lead Bank and ABRESTI one each), one at jangareddygudem (DCCB) and two at
Bhimavaram (DCCB & RRB one each). Financial assistance has been provided by NABARD
for establishment of FLCCS at DCCB and RRB. The FLCCS conduct village-wise meetings,
educating the people on various banking activities and importance of Financial Inclusion,
PMJDY,PMJJBY, PMSBY and Atal Pension Yojana, Mudra etc.,
Implementation of Social Security Schemes, DBT

Social Security Schemes viz., Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJY), Pradhan
Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) are being
implemented by the banks. To provide banking facilities to all the people as envisaged by RBI,
GoI, around 4.80 lakh accounts opened under PMJDY and the same have been seeded with
Aadhar numbers. Total seeding of Aadhar numbers with Bank account numbers, facilitated
implementation of ‘PAHAL’ Direct Benefit Transfer for LPG (DBTL) and other DBT
programmes.
Performance under Annual Credit Plan

Priority sector advances aggregated `12320.07 crore during 2017-18. The achievement vis-à-
vis target was 85%. The achievement under crop loan which accounts for lion share was at
` 7465.04 crore with 114% achievement of target.
Opening of new Branches/Banking Correspondents/Households

In the district, there are 51 villages having more than 5000 households without a Bank branch
of a scheduled commercial banks. As per the FI plan, various banks were advised to open their
branches at these 51 villages. There are 542 BCs working in the district.
xii
Methodology adopted 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 the 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 (specifically bank credit)
by channelling the same into sectors with growth potential.
• To assess the gaps in infrastructure support which need to be taken care for exploiting
the potentials and prioritize resource requirement for the purpose.
Methodology
NABARD, in 1988-89, took 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.
S 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 between Small
Farmer/Marginal Farmer 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
xiii
S No Sector Methodology of estimation of credit potential

• Estimation of credit potential taking into account Scale of
Finance and also the KCC guidelines in vogue
• 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
Mechanization account 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
waste land 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 and 60% of 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.
xiv
Utility: Concerted and continuous efforts have been on 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 • Provides inputs/information on Exploitable potential vis-à-vis
credit available
• Potential High Value Projects/Area Based scheme
• Infrastructure support available which can form basis for their
business/development plans.
2 Government • Developmental infrastructure required to support credit flow for
Agencies/ tapping the exploitable potential
Departments • Other support required to increase credit flow
• Identification of sectors for Government sponsored programme.
3 Individual/ • Private investment opportunities available in each sector.
Business • Commercial infrastructure
entities • 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 & sub-sector-wise
• Non-availability of data required for estimation of potential in some sectors with the
line Depts.
xv
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 farmers’ 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 ₹11 lakh crore.
 An Agri-Market Infrastructure Fund with a corpus of ₹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 ₹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 ₹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 ₹100 crore 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:
 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.
1
 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.
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 (LTRCF), at a reasonable rate of interest. ₹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 ₹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 ₹10,000
crore.
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 ₹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 ₹20,000
crore for funding 99 irrigation projects during 2016-17 following announcement in the Union
Budget, was further supplemented with additional allocation of ₹20,000 crore in 2017-18 and
₹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 ₹8000 crore over a period
2
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.
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.
3
 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 ₹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 generate fresh ideas for invigorating the handloom sector, NABARD
held a “National Seminar on Handloom” at Head Office in Mumbai on 19 January
2018.
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
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.
4
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
1.6 Policy Initiatives – State Government

The Government of Andhra Pradesh (GoAP) has been presenting a separate Agriculture
Budget for agriculture and allied sectors development with emphasis on farmer centric
welfare since the year 2014-15.
 The major highlights of the Agriculture Budget for FY 18-19 are as under:
 Total outlay of ₹19,070 crore was made for 2018-19 under the Agriculture Budget.
 Sectoral outlay of ₹12,355 crore was made under agriculture and allied sectors,
which is 36% more than the budgetary allocation of ₹9091 crore made for 2017-18.
The allocation under the agriculture and allied sectors thus constitutes 6.47% of
the total budgetary allocation for the state for FY 18-19.
 The major allocation was made for Farmers Debt Waiver (₹4100 crore) and
Pradhana Mantri Krishi Sinchayi Yojana (PMKSY) (₹1523 crore).
 The contribution from the Agriculture sector is ₹252847 crore (34.37%) to the
GSVA at current prices and ₹163635 crore (29.84%) at constant (2011-12) prices.
The sectoral growth rate of GVA for 2017-18 at constant (2011-12) prices was
17.76% under agriculture sector.
 The state has identified horticulture, animal husbandry, fisheries and farm
mechanization sectors as the key growth engines to accelerate capital formation.
 The state’s development strategy is structured around 5 grids, 5 campaigns and 7
missions, thus laying the foundation for rapid transformation of the state despite
the hardships faced post bifurcation.
 The GoAP is promoting ‘Zero Budget Natural Farming’ for long-term welfare and
prosperity of farmers, to safeguard health of the population and to minimise adverse
climate effects. The programme mandates to cover 5 lakh farmers and 5 lakh hectares in
the State covering all mandals in all districts by 2022.
 Providing credit facilities to Tenant Farmers, who are estimated to be more than 25% of
total farmers, has been one of the priorities of the State Government. For this purpose, the
state has enacted the Licensed Cultivators Act, 2011 for providing institutional credit to
Tenant Farmers by protecting land owners' interests. Through this Act, Govt. has issued
Loan Eligibility Cards (LECs) and Certificate of Cultivation (CoC) to tenant farmers for
availing crop loans. There has been substantial growth in the last two years in tenant
farmers financing, with credit flow increasing to ₹3098 crore in 2017-18 from ₹228 crore
in 2016-17. To further financing to Tenant Farmers through Co-operative system, State
Govt. has also formulated a scheme called “Saagu Nestham” (farming friend), wherein
Tenant Farmers would be financed through PACS in group mode.
 To develop Andhra Pradesh as a Global Seed Hub and to ensure that quality seeds reach
every farmer, GoAP is establishing a Mega Seed Park in 627 acres with an outlay of ₹650
5
crore at Tangadencha Seed Farm, Kurnool district, with an allocation of ₹100 crore
proposed for 2018-19.
 For drought proofing and mitigating the distress of farmers in drought prone districts, the
Andhra Pradesh Drought Mitigation Project (APDMP) is being implemented in
Anantapur, Chittoor, Kadapa, Kurnool and Prakasam districts. This project is envisaged to
improve the income of 1.65 lakh farm house holds and strengthen their resilience to
drought with an outlay of about ₹1042 crore, out of which about ₹528.24 crore is being
funded by International Fund for Agriculture Development (IFAD).
 The proposed allocation for farm mechanization is ₹250 crore. A novel programme called
“Rythu Radham” has been started for distribution of tractors (>35 HP) and Rotovators to
farmers involving maximum subsidy of 2.5 lakh.
 Area under horticulture crops to be expanded from existing 40 lakh acres to 100 lakh acres,
with Micro irrigation to be implemented on saturation mode during next five years. One
million farmers will be organized into 1000 FPOs in the primary sector for value chain
development and better market linkage.
 Under animal husbandry and dairy development, a new scheme to insure 10 lakh animals
is proposed with an allocation of ₹50 crore, which will benefit 3 lakh farmers. Provision of
₹111 crore has been made for implementing Mega Pashugraasa Kshetralu (mega fodder
centres). Provision for infrastructure support to field veterinary institutions is proposed to
be enhanced from ₹25 crore in 2017-18 to ₹75 crore in 2018-19.
 To promote continuous growth in fisheries sector, GoAP is promoting various practices
like simplifying the procedures for registration of Aqua farms through Mee-seva, cluster
approach and continuous awareness campaign on Better Management Practices in 181
aqua clusters covering 1,27,433 Ha farm area, pond automation, usage of antibiotic free
inputs and On-Farm Demonstrations (OFD) in Chandranna Aqua Rythu Kshetralu
(CARKs) with latest technological interventions, among others.
 Electronic National Agricultural Market (e-NAM) is being implemented in 22 Markets in
the state, with 47 new markets under e-NAM proposed for 2018-19. Rythu Bandhu
Pathakam scheme provides pledge loans to farmers on the produce stored in the godowns
of Agricultural Market Committees.
 Government intends to complete Polavaram project at the earliest and thereby provide its
benefits to the State of Andhra Pradesh. ₹9,000 crore have been allocated in 2018-19 for
Polavaram Project.
 Increased allocation of ₹1102 crore for AP Micro Irrigation Project has been proposed with
enhanced subsidy from State Government.
 The State also has a vision to connect all the five major rivers – Vamsadhara, Nagavalli,
Godavari, Krishna and Penna – thus creating a Mahasangamam, to ensure water security
to the State of Andhra Pradesh.
 State Govt. is planning to dig 25000 bore wells under NTR Jala Siri in Srikakulam and
Vizianagaram Districts with ₹100 crore to utilise the available groundwater for improved
agriculture. A total allocation of ₹200 crore is proposed for NTR Jala Siri for the state.
 To facilitate development of poor women in tribal areas, the Hon’ble Chief Minister
launched the distribution of “Tribal LPG package” with an allocation of ₹3495 crore
proposed for 2018-19.
 GoAP is committed to provide housing for all by 2022. State Govt. has completed 2,70,000
houses and about 4,50,000 houses are under various stages of construction under NTR
Rural Housing. An allocation of ₹4752 crore has been provided for 2018-19.
 Andhra Pradesh topped the third annual ranking of the ‘Ease of Doing Business’ Index for
States as per assessment conducted by DIPP and World Bank. GoAP signed 734 MoUs with
investment potential of ₹4.39 lakh crore and employment potential of 11 lakh jobs in
Partnership Summit 2018.
6
 GoAP is implementing two large industrial corridor projects - Visakhapatnam-Chennai

Industrial Corridor (VCIC) and Chennai-Bangalore Industrial Corridor (CBIC).
 Major ports in AP have handled 130.6 million MT cargo which is the 3rd highest in the
country. Bhavanapadu port, KSEZ port and Machilipatnam port are being developed
under Public Private Partnership mode.
 Andhra Pradesh would be the first state in the country to achieve rare distinction of
implementing an ERP application through a sustained measure of process rationalization,
harmonization and standardization in realizing its objectives of overall digital
transformation. State Government is planning to introduce end to end paperless
transactions with right checks and balances in expenditure processing and also first state
to adopt the RBI’s eKuber 2.0 version on a centralized platform for receipts and
disbursements.
(For Agriculture Budget Speech 2018-19 visit http://www.apagrisnet.gov.in/2018/Budget%20speech
%20english_Assembly_07.pdf )
(For Andhra Pradesh Budget Speech 2018-19 https://www.apfinance.gov.in/Budget1819/budget-2018-19-
books/budget-speech-english.pdf )
(For detailed paper visit https://www.nabard.org/info-centre-state-level-papers.aspx?cid=700&id=698)
1.7 State Government Sponsored Programmes with Bank Credit

The GoAP is implementing 142 schemes as announced in the State Budget 2018-19. The list of
major State Govt. Programmes and Schemes involving bank credit are given below:
 Pavala Vaddi Scheme and Vaddi Leni Runalu Scheme
 Programme for Development of Industries
 Programme for Development of Food Processing Industries
 Programme for Promotion of Fisheries
 Programme for Promotion of Poultry
(For detailed paper visit https://www.nabard.org/info-centre-state-level-papers.aspx?cid=700&id=698)
1.8 Sustainable Agriculture Practices in the State

1.8.1 Mitigation strategies for the State
 GoAP had launched Mission Haritha Andhra Pradesh (MHAP) in 2016 with a goal to
achieve tree cover over 50% of the total geographical area of the state by 2029. As part
of this ambitious programme, the Forest Department has facilitated planting of 50 crore
seedlings, raised block plantations over an area of 26,853 ha, 1523 km of avenue
plantations, 9,31,013 (23.27 lakh cum) staggered contour trenches, 4556 (4.55 lakh cum)
mini percolation tanks, 2712 km (203.40 lakh cum) water absorption/ elephant proof
trenches and 367 check dams to conserve the soil and moisture.
In order to continue the momentum, following schemes have been proposed in the
Budget 2018-19:
 Vanam Manam (Afforestation): Plantation in and outside forest areas totalling 25 crore
seedlings under different components such as shelter belt, avenue, mangrove, hills,
tanks, institutions, etc. will be taken up. ₹20.654 crore has been earmarked in the
budget.
 Vana Sanjeevani (SMC works): Under this scheme, for the year 2018-19, 2750 km trench
works (elephant proof trenches, water absorption trenches, peripheral trenches), 100
check dams, 5000 rock fill dams and 2500 mini percolation tanks with a financial outlay
of ₹75 crore is proposed, with an objective to enhance water table, arrest desertification
and assist natural regeneration.
 Van Samrakshana (Forest Protection): The state is committed to protecting its forests.
Strengthening of base camps, establishment of striking force, installation of CCTV
cameras and Command Control units, check posts modernization, maintenance of roads,
fire protection in forests (especially Red sanders bearing areas in Kadapa, Chittoor,
Kurnool and Nellore Districts) with a financial outlay of ₹25 crore will be taken up in
2018-19.
7
1.8.2 Sustainable Agriculture Practices - Adaptation strategies for the State

 Distribution of soil health cards and soil test based fertilizer recommendation.
 Promotion of Integrated Crop Management (ICM) through INM, IPM.
 Efficient water management through renovation of ponds, construction of rain water
harvesting structures at house hold level (Inkuduguntalu- Water absorption pits).
 Encouraging of organic farming to meet the demands of World Market.
 Supply of Micro nutrients like Zinc, Iron, Boron, and Magnesium based on the Soil test
results.
 Reclamation of Problematic soils to restore the productivity.
 Natural Resource Management through watershed approach for agricultural land
development and environmental stability.
 Calamity Management in the event of drought, floods, hailstorms etc.
 Promoting Farmer Produce Organizations (FPOs) for technical and monetary benefits
in Organic Farming and Millets.
 Promotion of Navadhanyalu/ Poly cropping/ Mixed cropping.
 Promoting adoption of Climate resilient Zero Budget Natural Farming (ZBNF) practices.
GoAP through Rythu Sadhikara Samstha is implementing the ZBNF programme in the
state, with an aim to scale out ZBNF to 6 million farmers by 2025.
 Usage of IOT applications in agriculture.
 Promotion of Indigenous cattle as an adoption measure to climate change.
 Neeru-chettu (Water-Tree) programme for water conservation.
(For detailed paper and district-wise strategies visit https://www.nabard.org/info-centre-state-level-
papers.aspx?cid=700&id=698)
8
Chapter 2
Credit Potential for Agriculture
2.1: Farm Credit

2.1.1. Crop Production, Maintenance and Marketing
2.1.1.1. Introduction
The district lies in Godavari Western delta and Krishna Eastern delta with geographical area
of 8.50 lakh ha. The rain fall in the district was deficit at 980.80 mm, 871.2 mm and 1086.4
mm during the last three years i.e., 2015-16 2016-17 and 2017-18 respectively. The credit
potential has been made under priority sector covering Primary, Secondary and Tertiary
Sectors, with emphasis on the Primary Sector. These projections were based on parameters
such as technical feasibility, availability of infrastructure, availability of exploitable resources,
cropping pattern, agriculture practices and other developmental indices such as access to
markets, Government's priorities and policies, market forces, etc. The Govt. of AP has made
the strategy to achieve the double digit growth in the Gross District Domestic Product under
Agriculture & Allied Sectors.
2.1.1.2. The Gross Cropped Area in the district stood at 6.98 lakh ha while the Net Sown Area
stood at 3.93 lakh ha. The irrigated area in the district under assured irrigation through
various sources, like canals, tube wells and filter points account for 92.6% of Gross Cropped
Area. Area dependent on rainfall is 7.4%. The cropping intensity is around 178%. The category
of farmers are as under :
Category of farmers No. of holdings Area operated (ha) Average (ha)

Marginal Farmers (< 1ha) 474703 176964 0.37
Small farmers ( 1-2 ha) 87366 121958 1.40
Semi Medium farmers (2-4 ha) 37981 101154 2.66
Medium Farmers ( 4- 10 ha ) 10251 55995 5.46
Large farmers (> 10 ha) 785 15673 19.97
Total 611086 471744 0.77
2.1.1.3. Paddy is the major crop grown in the district with an area covering 393223 ha. The
other major crops being grown during Kharif and Rabi are Maize (59427ha), Pulses (47233
ha.), Oilseeds (3183 ha.) and Jowar (76 ha.) In addition to the above crops, Sugarcane (7952
ha.) and cotton (4525 ha) were cultivated in Khariff and Tobacco (23073 ha) and chilies (1449
ha) were cultivated in Rabi. (Source: Agriculture Dept.] The district is known as one of the rice
granaries of the State. During 2017-18, Rice production was 17.82 lakh MT. Other significant
crops are maize 5.24 lakh MT, Oilseed 0.09 lakh MT, Pulses 0.22 lakh MT and commercial
crops 98.47 lakh MT. The usage of fertilisers and pesticides for the year 2017-18 were 447320
MT. and 231455 kgs., respectively.
2.1.1.4 Productivity of major crops in the district
Crop Productivity Dist. Avg. (Kgs. per Ha.)
Paddy 6788
Maize 8818
Redgram 1157
Greengram 959
Blackgram 1099
Groundnut 3427
Sesamum 766
2.1.1.5 Policies and Interventions:

(a) Prime Minister Fasal Bhima Yojana; (b) Doubling of Farmers' Income; (c) Primary Sector
Mission; (d) Double digit growth & Growth Engines; (e) National Food Security Mission for
pulses and oilseeds (NFSM); (f) Seed Village Scheme;; (g) Rythu Bandhu Pathakam ; (h)
9
Rashtriya Krishi Vikas Yojana (RKVY); (i) Organic Farming; (j) Extension activities;
(k) Interest subvention on crop loans; (l) financing of LEC holders; (m) RuPay KCC;
(n) Natural farming.
2.1.1.6. The ground level credit flow for the last three years viz., 2015-16, 2016-17 and
2017-18 stood at ` 596136.83 lakh, ` 606924.98 lakh and ` 746503.96 lakh, respectively.
2.1.1.7. Assessment of Credit Potential for 2019-20
(i) Taking into account the gross cropped area, number of land holdings of small, marginal
and other farmers, the cropping pattern, infrastructure available/gaps and recent policy and
promotional interventions, the projections have been estimated at `900006.08 lakh. The
crop-wise loan projections estimated for the year 2019-20 are given below.
(` lakh)
Sl. Crop Activity Unit Scale of PLP 2019-20
No. finance Phy.units Fin. outlay Bank Loan
1 Paddy Ha 1.06 391900 423252.00 423252.00
2 Maize Ha 0.88 59427 62992.62 62992.62
3 Pulses Ha 0.37 80726 31483.14 31483.14
4 Sugarcane Ha 2.18 7951 17412.69 17412.69
5 Cotton Ha 1.06 4525 5746.75 5746.75
6 Groundnut Ha 0.78 2653 2148.93 2148.93
7 Chillies Ha. 1.76 1449 2811.06 2811.06
8 Turmeric Ha. 2.54 197 522.05 522.05
8 Major millets Ha. 0.24 82 20.50 20.50
9 Mango Ha 0.74 6575 5786.00 5786.00
10 Cashew Ha 0.71 15250 10980.00 10980.00
11 Coconut Ha 0.78 20100 17688.00 17688.00
12 Cocoa Ha 0.77 12350 9633.00 9633.00
13 Banana Ha 2.12 14250 30352.50 30352.50
14 Acid lime Ha 1.06 5119 5477.33 5477.33
15 Oil Palm Ha 1.24 50600 63250.00 63250.00
16 Tobacco FCV Ha 2.47 23073 56990.31 56990.31
17 Vegetables Ha 1.94 2410 5109.20 5109.20
18 Others-Pledge /gold No. 2.50 59340 148350.00 148350.00
loans, loans to other
crops, etc.
Total 900006.08 900006.08
2.1.1.8. The diversion of Paddy fields into Aquaculture was noticed in the delta region and
some of the farmers are preferring cash crops than paddy cultivation.
2.1.1.9. Availability of infrastructure, critical gaps and interventions required,
S.No. Particulars Available Planned Gap

1 Irrigation facility Command Area in Ha.)
a Surface Irrigation 299618 292938 6680
(Canals, Tanks, Ponds & LI schemes)
b Micro Irrigation 130000 85000 45000
2 Seeds outlets 553 - -
3 Pesticides sales outlets 1642 - -
4 Fertiliser sales outlets 1195 - -
2.1.1.10. Availability and critical gaps in infrastructure:

 There are four laboratories in district for Seed Testing, Pesticide Testing, soil testing and
Fertilizer Control Order Laboratory. Fertilizer Control Laboratory advises farmers on site
specific and situation specific fertilizer recommendations on the basis of native soil
fertility.
 Seed and fertilizer distribution is taken care by Agriculture Department and the societies
situated at the village level. The Agriculture Department is providing various equipment
10
like tillers, paddy transplanters, harvesters, fodder cutters, sprays, sprinklers, etc., to the
farmers on subsidy.
 The Rice Research Station, Marteru, 2 KVKs, DAATC, ATMA and other research stations
are providing the latest technology and guiding farmers on new agricultural practices.
 There are 18 Agricultural Marketing Committees (AMCs) with 22 Market Yards and 105
godowns with storage capacity of 92,310 MT.
 Extension infrastructure – The network of Multi-Purpose Extension Officers (MPEOs),
Polam Pilustondi – coordinating various extension activities, Chandranna Rythu Kshetras
– demonstration of impact of various technologies in major crops, identification of best
practices in NPM and CMSA as master trainers, etc., are some of the extension activities
being taken up by the Department.
2.1.1.11. Critical interventions required

 Rejuvenation of existing irrigation structures like tanks by de-silting and making
improvements.
 Promotion of seed village programme to be taken up in a big way for making timely
availability of quality seeds with in the district and reduce dependence from outside the
district.
 Enhancing the storage capacities, easy availability of marketing credit and connectivity to
markets for farmers. Efforts should be made to convert all PACS in the district into Multi
Service Centers.
 Improving the post-harvest infrastructure for maize at least in mandals where the maize
cultivation is sizeable.
 Promotion of value added mini millet processing units in tribal areas to capture the organic
Global market.
 There is an urgent need to create storage capacity. Rural godown scheme of GOI,
construction of godowns under RIDF, construction of storage capacity by APMCs are the
need of the hour.
 Financing of LEC holders – The Department of Agriculture may make efforts to promote
JLGs among the tenant farmers. The Revenue Department may issue LECs to tenant
farmers, oral lessees, etc. to ensure their access to institutional credit.
2.1.1.12. Action points/issues to be addressed

(a) Department of Agriculture
 Coverage of SF/MF through institutional credit: Large numbers of marginal and

small farmers do not have clear title to land which acts as a deterrent in availing
institutional credit. Bankers need to be sensitized to resort to alternative modes of lending
including JLGs, LECs, etc., to ensure bank credit to these segments of the farming
population. There is a need to revisit LEC Scheme to make it more popular both among
the farming community and also the bankers. Some suggestions that may be considered
are enhancement of the validity period of LEC to 3 years from the existing one year,
Agriculture Department may take up promotion of JLGs of LEC holders and tenant
farmers to enable them to have access to institutional credit.
 Agriculture extension: The existing extension network is unable to reach the needy
farmers due to non-availability of extension staff. NGOs with technical staff could be
identified on selective basis and supported by Government to bridge the extension gap.
Department of Agriculture in the district may popularize scheme for setting up of agri-
clinics / agri-business centers in the district to increase productivity and also transfer of
technology through private extension services. MANAGE, Hyderabad is providing free
training to the unemployed graduates in agriculture and allied sectors through identified
training establishments.
11
 Department may organize Rythu Chaitanya Camps in convergence with KVKs, DAATCs,
etc., to sensitize the farmers on technology gap identified in the village to increase
productivity and reduce cost of cultivation, to improve quality, to bring latest technology
interventions in agriculture and allied sector and for creating creating awareness about the
Govt. programmes for the welfare of farmers.
 Credit Guarantee Fund : Creation of a Credit Guarantee Fund as a confidence building

measure to enable bankers to extend crop loans liberally to all the LEC holders and also
recovery mechanism through Joint Teams of Revenue Dept., Agriculture Department and
Banks.
 Enable Recovery measures: Mandal-wise Recovery Committee may be constituted to
strengthen recovery mechanism through Joint teams of Revenue, Agriculture
Departments and Banks.
 Departments concerned and bankers should participate more actively in the JLMBC
meetings to improve the ground level credit, knowledge sharing and dissemination as also
to sort out various issues, etc.
b. Banks
 Banks may adhere to the scale of finance and KCC guidelines while sanctioning crop loans.
 Bankers may make use of alternative modes of lending including Joint Liability Groups
(JLGs), Loan Eligibility Cards, etc., to extend bank credit to tenant farmers.
 Bankers may be sensitized and encouraged to finance pledge loans to enable farmers to
avoid distress sale as also meet their short term credit requirements. Since, GoI is
providing 2% interest subvention to banks for a period of six months on the own funds
deployed in financing pledge loans to SF/MF, having KCC, against NWRS at an interest
rate of 7% p.a.
Farmers’ Clubs
NABARD is encouraging and supporting banks and NGOs to promote farmers’ clubs in the
district. Such clubs were organised by the rural branches of banks or by the NGOs with the
support and financial assistance of NABARD for the mutual benefit of the banks and
farmers. 40 farmers’ clubs are actively participating in various development activities in
West Godavari district.
These clubs would coordinate with banks to ensure smooth credit flow among its members
and forge better bank-borrower relationship, conduct extension programme, liaison with
input suppliers for purchase of bulk inputs on behalf of members, and organize joint
activities like value addition, processing and collective farm produce marketing for the
benefit of members.
 The primary objective of the initiative is to ensure development in the rural areas
through credit, technology transfer, awareness and capacity-building
 The clubs will facilitate the transfer of latest agriculture techniques and help farmers
enhance the output of various crops.
2.1.2. Water Resources
Irrigation is crucial for enhancing crop production and productivity to meet the ever
increasing demand for food production as the population of the state is growing. While major
and medium irrigation structures are taken up in the public domain, majority of the minor
irrigation structures are created through private investments only. Institutional credit plays
an important role in taking up Minor Irrigation structures by individual/groups of farmers.
The MI structures can be broadly grouped into two categories viz., Ground water based
structures (dug wells, bore wells, dug cum bore well and tube wells) and Surface water based
units (lift irrigation). Besides, efficient irrigation systems like drip and sprinkler as also water
12
saving devices like underground pipeline are also included under MI. In addition, financing
for different water lifting devices under MI is in vogue.
The irrigation system in the district is well developed. About 92.6% of the gross cropped area
is under irrigation. Of the total irrigated area, canal irrigation under Godavari Western delta
and Krishna Eastern delta account for 60% and the balance under tube wells and filter points,
MI tanks, Lift irrigation, etc. Further, Kovvadakalva medium irrigation project, Thootigunta
and Polavaram-lift irrigation schemes through RIDF have been completed and new areas are
brought under irrigation. Lift irrigation schemes under Yerrakalava financed under RIDF XIV
were completed and water will be available for 5,900 acres. Providing adequate water for the
agriculture activities is one of the pre-requisites for achieving double digit growth in the
primary sector. The optimal use of available ground water resource by adopting additional
recharge and high water use efficiency system like micro irrigation helps for improving the
livelihoods of the farmers and thereby scale up the primary sector GSDP.
There are only three mandals in the district where the ground water level is 3 meters, 11
mandals with water level of 5 meters, 14 mandals with 12 metres and 4 mandals with water at
16 meters. The district has over 20 mandals where the level is at 20 meters or below, which is
a big concern. The decline in the ground water tables poses a threat to agriculture and drinking
water availability. Koyyalagudem mandal is an over exploited mandal in the district.
2.1.2.2. Infrastructure and linkage support available, planned and gaps
 Infrastructure and Support Services : Ground Water Department is monitoring ground
water levels at regular intervals from the existing network of observation wells (93 Nos.)
and Piezometers (71 Nos.). Monitoring of real time water levels by installing digital water
level recorders with telemetry is being practiced by the department. The real time ground
water levels, analysed reports, graphs and maps will be disseminated to users through
website. Basin-wise information brochures for all the 43 basins were distributed in gram
sabhas during Neeru-chettu Avagahana Sadassulu along with village wise water audit.
2.1.2.3. Availability and gaps in infrastructure:
 The Major, Medium Irrigation sources are Sir Arthur Cotton Barrage, Tadipudi LIS and
254 MI Schemes in the district covering Registered Ayacut of 3,45,315 Ha.
 State Government had introduced the free power scheme for agriculture, there is good
demand for new connections.
 Good network of pumpset dealers and after sales service is available at all the mandals.
 There is an increased awareness amongst the farming community on the need to use
efficient irrigation system along with the traditional methods of irrigation. This coupled
with the enabling support provided by the Central & State Government during the last two
years have resulted in increased use of efficient irrigation system.
2.1.2.3. Assessment of Credit Potential for 2019-20
Taking into account the impetus likely to be provided to this sector due to various policy
announcements by the Central/State Government, the present status and trends in ground
level credit, infrastructure availability / gaps and the revision in the unit cost of various items,
the projections have been estimated at ` 21138.34 lakh. The sub-sector wise loan projections
estimated for the year 2019-20 are given in the table hereunder:
(` lakh)
S.No. Water Resources Unit PLP 2019-20
Phy. units Fin. outlay Bank Loan
1 Dug Wells Nos 50 45.65 38.80
2 Tube Well+Pumpsets Nos 3900 16087.50 13674.37
3 Submersible pumpsets Nos 2870 2273.04 1932.08
4 Deepening of wells Nos 160 52.80 44.88
5 Irrigation pumpsets Nos 3250 1358.50 1154.73
13
S.No. Water Resources Unit PLP 2019-20

6 Drip Irrigation Ha. 19150 9057.95 3623.18
7 Sprinkler Irrigation Ha. 2540 866.14 346.45
8 Pipe Line Nos 3200 809.60 323.85
Total 30551.18 21138.34
2.1.2.4. Critical Intervention required for creating a definitive impact in the

sector
 In the last two to three decades, the ground water is being extracted heavily through tube
wells in sandstone areas. The water level has gone down from 5 to 20 meters in shallow
zones and 50 to 80 meters in deeper zones and created void space in the sub surface
aquifers for artificial recharge. The upland area is mainly dependent on ground water for
all needs, especially for irrigation purpose. Sandstone area occupies an area of about 2573
sq.kms. in the district over 22 mandals covering 312 villages. Further, ground water
extraction in the district needs to be done while taking care of these concerns.
 Harnessing of groundwater for irrigation purposes through drip and sprinkler would
improve the production and productivity under horticulture and plantation crops.
2.1.2.5. Suggested Action points
Government Departments
 Water saving devices like drip and sprinkler irrigation systems need to be increasingly
financed particularly in upland mandals and overexploited mandals.
 In the upland, chain of tanks/cascade of tanks are available and they can be filled with
flood waters and recharge the shallow aquifers through normal recharge techniques and
deep confined aquifers through wells.
 The aim of Neeru-Chettu mission, the flagship programme of GoAP and sub-mission of
Primary Sector, is to maintain the ground water levels between 3.0 to 8.0 meters with an
advantage of avoiding water logging conditions and energy saving for sustainable ground
water development.
 Awareness creation on conservation of water through good agricultural practices and
water efficient cropping pattern to increase the water usage efficiency. Rejuvenation of
existing MI tanks by desilting would enhance their storage and percolation capacities.
Banks
 Banks may extend credit support to farmers for digging of bore well for Irrigation, farm
ponds and for installation of drip and sprinklers.
 New activity viz., bank financing of well recharge (dug wells and bore wells) has been
included under unit cost. Banks may finance this activity on area basis and JLG mode,
under the guidance from Ground Water Dept.
 Minor Irrigation being a thrust area for development, Banks are eligible for drawing 100
per cent of bank loan as refinance from NABARD.
 District level gaps in critical irrigation infrastructure needs may be identified and funded
under RIDF or NIDA.
2.1.3: Farm Mechanisation

The main objective of farm mechanization is to increase efficiency and timeliness of farm
operations, reduction in cost of cultivation, improvement in the quality of produce for better
marketability, efficient utilization of inputs, etc. Mechanization will help in increasing the
productivity and enable the farmers to complete farming operations in time. Depending on
the types of crops grown, soil conditions, local situations and requirements in the district,
Agriculture Department is contemplating to promote farm mechanization with support of
financing banks and with provision of subsidy. The average supply of farm power in Andhra
14
Pradesh has to be increased to 4 kw / ha. in order to achieve the desired crop production and
productivity levels. This additional power has to be supplied mostly by tractors, power tillers,
self-propelled multi-crop threshers, power weeders and sprayers and other self-propelled
machines.
2.1.3.2. Current status/credit flow/recent policies and interventions:

Due to increased labour cost and acute scarcity of labour during peak period of farming
(sowing, weeding and harvesting, etc.) farm mechanization is getting importance in the
district. Because of timeliness of farm operations and reduction in drudgery, farmers are
showing keen interest towards farm mechanization. A lot of potential exists for financing
tractors (large, medium and small / mini horse power), power tillers, Rotavators, Paddy trans
planters, threshers, combine harvesters, Sugarcane harvesters, seed drills and other
equipment like MB ploughs, disc ploughs, cultivators, harrows, post-harvest equipment and
horticulture tools, crop based custom hiring service centres, etc. As the capital investment is
high, subsidy is available under Rashtriya Krishi Vikas Yojana (RKVY), Normal State Plan
(NSP) and Sub-Mission on Agriculture Mechanization.
Policies and Interventions - (a) State Development Plan (SDP); (b) Rashtriya Krishi Vikas
Yojana (RKVY); (c) Sub Mission on Agriculture Mechanistion (SMAM).
2.1.3.3. Assessment of credit potential for the period 2019-20

(` lakh)
Sl. FM - Activity Unit PLP 2019-20
No. Phy. Units Fin. outlay Bank Loan
1 Tractors No. 1985 18559.75 14847.80
2 Mini Tractors No. 1265 6261.75 5009.40
3 Power Tillers No. 1025 2536.88 2029.50
4 Diesel based self-propelled Paddy No. 104 2230.80 1784.64
Transplanters
5 Power operated sprayers No 4900 1470.00 1176.00
6 Combined Harvesters No. 83 1826.00 1460.80
7 Sugarcane Harvesters No. 3 450.00 360.00
8 Rotary mulcher with tractor No. 90 158.40 126.72
9 Laser guided land leveler No. 45 173.25 138.60
10 Rotary weeder No. 300 214.50 171.60
11 Custom hiring centres - paddy No. 72 3168.00 2534.40
12 Custom hiring centres - maize No. 7 277.20 246.40
13 Paddy straw Baer-Tractor operated No. 277 831.00 664.80
Total 38157.5 30550.6
3 6
2.1.3.4. Critical Intervention required and actions to be addressed
 The district faces an acute shortage of farm labour. This has forced the farmers to depend
on mechanization / farm implements to handle their farm work. Thrust for credit under
farm mechanization is being given for tractors, power tillers, Paddy Transplanters,
Combined Harvesters and other farm machinery, etc.
 Extension agencies like Marteru Rice Research station, Horticulture University, National
Oil Palm Research Station, KVKS, DAATC center etc., are creating awareness about
15
agriculture machinery. Exhibitions and demonstrations are held to sensitize farmers on

various equipment usage. Technical experts like mechanical or agricultural
engineers/extension officials are creating awareness and providing guidance on
agriculture machinery.
 Dealers for tractors, power tillers, combined harvesters and other farm machinery are
available in and around the district. Display/demonstration of machinery is undertaken
by dealers in Rythu Sadasus. Spare parts and after sales, etc. are available with dealers.
2.1.3.4. Suggested Action Points –

Agriculture Department
 Agricultural Department & Bankers may organize farmers into JLGs for financing various
types of farm implements / establishment of custom hiring centers so that the farmers can
collectively service the loans with ease.
 There is dire need for agriculture machinery in the district due to labour shortage.
Agricultural Department to organize exhibition-cum-sale of power tillers, agricultural
implements by dealers particularly during Krishi Melas and Rhythu Sadassus, conduct
field trials, exposure visits. KVKs, DAATTC, Regional Rice Research center, Marteru and
other research centers to undertake promotion of agriculture machinery on periodical
basis.
 There is need to encourage custom hiring operation of power tillers and farm machinery.
Agricultural Universities/Research Institutes, to devise smaller machinery suitable for
small farmers.
Banks
 Banks may provide credit for establishment of Agro-Service Centres by agricultural
graduates under the Government of India scheme for setting up of Agri-clinics and Agri-
business Centres (ACABC) as increased subsidy is available now for such ventures.
 As mechanization offers potential for reducing cost of cultivation and enhances production
and productivity by ensuring timeliness of farm operations, bankers may come forward
and encourage financing for tractors and Tractor drawn farm implements, power tillers,
and other small farm equipment required by farmers. Further, Agriculture Department is
providing subsidy to some of the important farm mechanization implements. Banks may
take advantage of this and finance wherever subsidy is provided to the borrowers.
 Bankers to finance group of small and marginal farmers to give boost to farm
mechanization. Good working JLGs/RMGs/SHG federations/farmers clubs may be
selectively encouraged to purchase tractors, combined harvesters, paddy transplanters, as
group investment so that they can use in their lands as well earn additional income through
custom hiring.
 There is a need to impart training on operational aspects of various farm implements /
equipment. Extension Agencies to advise farmers on suitability of various make, models
and horse powers for different size of operational holdings.
2.1.4. Plantation and Horticulture including Sericulture
2.1.4.1. Introduction:
Horticulture sector has been identified as one of growth engines under Primary Sector Mission
with a focus to increase the production and productivity of various horticulture crops coupled
with development value chain and marketing linkages to help the farming community to
realize remunerative prices. The GVA under Horticulture Sector in West Godavari District is
` 2287 crores during 2016-17, ` 3062 crores during 2017-18 and target for 2018-19 is ` 3722
crores. The district is evolving as hub of plantation crops.
2.1.4.2. Horticulture Potentiality in West Godavari District
 Major Horticulture crops grown in the district are Oil Palm, Cocoa, Coconut, Guava, Acid
Lime, Mango, Cashew nut and vegetables.
 Horticulture Cropped area is 1.61 lakhs Ha. (41% of net cropped area of 3.86 lakh Ha.) 85%
of the area is in 26 upland mandals.
16
 The bearing area is 1.47 lakhs Ha., and the pre-bearing area is 0.14 lakh Ha.
 During 2017-18, an additional area of 0.14 lakhs was brought under Horticulture crops.
 The District stands first in Oil Palm and Cocoa in Area and Production.
Area & Production Particulars
Sl. No Crop Bearing Area in Ha. Production (MTs)
I Fruits
1. Banana 11356 511020
2. Acidlime 5133 102660
3. Guava 1119 27975
4. Mango 6765 67650
5. Papaya 543 29865
6. Sapota 473 5676
7. Watermelon 45 1760
8. Other Fruits 350 3500
Total 25784 750106
II. Plantation Crops
1. Cahsewnut 15316 15016
2. Cocoa 12557 8788.8
3. Coconut (Lakh nuts) 22288 2941
4. Oilpalm 62537 746928
5. Arecanut 9 4.5
6. Betelvine (No of Bundles) 179 13425
Total 112886 787103.3
III. Vegetables 5994 162465
IV. Flowers 112 1257
V. Spices 2200 8163
Grand Total 146976 1709094.3
 The major interventions of the department of Horticulture includes 1) extend technical

guidance to farmers on implementation of new technologies, introduction of new crops
etc., 2) increase production by bringing additional area through diversification of
traditional crops with market driven horticulture crops like fruits and value vegetables,
spices, medicinal & aromatic plants and flowers, 3) to improve productivity of horticulture
crops with the use of high yielding quality planting materials, rejuvenation of old orchards
and by adoption of improved packages of practices.
 The Dept. of Horticulture has established oil palm seed garden at Horticulture Farm,
Gopannapalem during 2014-15, with an object to produce hybrid oil palm seeds sprouts.
Besides, 2 lakhs Nos. of black pepper seedlings are being raised in the Horticulture Farm,
Gopannapalem.
 Regional Horticulture Training Institute at Horticulture Farm, Gopannapalem, Denduluru
mandal is functioning under the administrative control of Deputy Director of Horticulture,
Eluru to impart training to farmers, Horticulture Officers and Multi Purpose Extension
Officers (MPEOs) of East, West Godavari & Krishna Districts.
 The district is having 5 Oil palm processing units (225 MTs per hour capacity); 31 Cashew
Processing Units, 4 Cold Storage units, 2 Ripening chambers and 1 Guava Processing unit.
 The Coconut Development Board, Government of India, has established one
demonstration cum seed production farm at Vegiwada village, Pedavegi Mandal during
1994. Various tall & dwarf varieties of quality Coconut Seedlings are produced in the farm.
 Indian Institute of Oil Palm Research (IIOPR) of Indian Council of Agriculture Research
(ICAR) was established at Pedavegi during 1995. It serves as centre for conducting and
17
coordinating the Research on all aspects of Oil palm conservation, improvement,

production, protection, post harvest technology and transfer of technology.
 Dr.Y.S.R.Horticultural University was established at Venkataramannagudem village,
Tadepalligudem mandal during 2007, to impart quality education and training in
Horticulture to the students to develop Human Resources to match the changing needs
and to conduct research on cultivation of various horticulture crops. Three Horticulture
Research Stations at Venkataramannagudem, Kovvur and Vijayarai in West Godavari
District are conducting various trials on cultivation of horticulture crops. Besides, one
Krishi Vigyana Kendra at Venkataramannagudem is also imparting training to the
farmers. The university assists the Department of Horticulture in disseminating improved
technologies to the farmers. Quality plant material is being raised in the Research Stations
and KVKs of the university.
 M/S.Mondelez India Limited is producing Cocoa F1 hybrid seedlings at Gangannagudem
village, Denduluru mandal.
2.1.4.4. GoI/GoAP interventions for promotion of Horticulture Sector in the

district
Horticulture Annual Action Plan for 2018-19 with a financial outlay of ` 100.01 crores have
been prepared and submitted to the Commissioner of Horticulture, A.P., Guntur. The details
are as follows.
Mission for Integrated Development of Horticulture (MIDH):
Under MIDH, during 2018-19, an amount of ` 42.86 Crore was proposed for promotion of
various activities in production and post-harvest handling infrastructure in Horticulture
sector. Important schemes are Area expansion under Perennial and Non-perennial crops,
Vegetables, new crops like Pine apple, Black Pepper etc., Rejuvenation, Farm Ponds,
Polyhouses, Shade-net houses, Pack houses, Mulching, Beekeeping, Horticulture
Mechanization and Human Resource Development etc.
National Mission on Oilseeds and Oil Palm (NMOOP):
In West Godavari district, during 2017-18 area planted under Oil Palm was 3751 ha. and
during 2018-19 for Oil palm development under NMOOP, the department has set a target of
6710 ha., under oil palm area expansion and an amount of ` 27.16 crores was proposed under
various components viz., area expansion, intercrops, vermicomposting units, drip irrigation,
machinery & tools, trainings to farmers and officers and maintenance for 1st, 2nd, 3rd& 4th year
maintenance of oil palm plantations etc.
Primary Sector Mission:
The Govt. of A.P. has identified Horticulture Sector as one of the growth engines under
Primary Sector Mission for increasing over all Agricultural growth rate and Govt. has plans to
increase the production and its contribution to the GDP to ` 33389 crore.
Promotion of Farmers Producers Organizations:
Promotion of 4 FPOs of Horticulture farmers in West Godavari district has been sanctioned
by NABARD. Besides, the Department of Horticulture has promoted 24 Nos. of FPOs in the
district in various crops.
Sericulture
The upland mandals are well suited for cultivation of Sericulture. The Dept. has strategically
placed three Technical Service Centres in all Sericulture pockets at Bhimadole, Koyyalagudem,
Jeelugumilli to cater the needs of Seri-culturists. Two Govt.Silk Farms were established at
Vijayarai and Recherla. Vijayarai Farm is exclusively for raising mulberry nursery for onward
supply to farmers. One private Chawke rearing centre at K.Kannapuram village of Pedavegi
mandal and supplying 50-60% of chawkie worms in the district. One CRC established at
NABARD’s TDF project in T.Gangannagudem village of Jeelumugilli mandal. 90% of cocoons
produced in the district being sold at Govt.Cocoon Market at Hanuman Junction.
18
2.1.4.5. Assessment of credit potential for 2019-20

(` lakh)
S. Activity Unit PLP 2019-20
No Phy. units Fin. outlay Bank Loan
1 Mango Ha. 100 65.00 55.25
2 Cashew Ha. 925 490.25 416.71
3 Guava Ha. 610 335.50 285.18
4 Sapota Ha. 20 9.20 7.82
5 Coconut txd Ha. 1285 719.60 611.66
6 Banana (Tissue culture) Ha. 840 1932.00 1642.20
7 Oil Palm Ha. 3800 7220.00 6137.00
8 Bee Keeping (10 box unit) Nos 7 4.90 4.17
9 Horticulture Nursery - Fruit Nos 15 165.00 148.50
10 Pack houses/agri mkt. Nos 10 280.00 238.00
infrastructure
11 Green Houses (500 sqmt.) Nos 20 110.00 93.50
12 Cocoa (as inter crop) Ha. 885 2576.00 2189.60
13 Medicinal Plants Ha. 4 80.00 68.00
14 Acid lime Ha. 785 384.65 326.95
15 Sericulture - Mulberry Ha./No. 8 55.60 47.26
Plantation & Rearing House
Sub-Total 14427.70 12271.80
2.1.4.6. Critical Gaps and suggested Action Points
State Government
 Promotion of Ethylene based Ripening chambers for fruits especially for Mango, Banana
and Papaya.
 Promotion of Fruits, Coconut and Cocoa based processing units.
 Promotion of Pack houses in order to facilitate for Grading & Packing process at field level.
 Encouraging high value vegetables viz., Capsicum, Cucumber, Tomato etc., & high value
flowers viz., Chrysanthemum, Gerbera, Orchids etc., in protected cultivation.
 Activity specific banking plans dovetailed with government sponsored programmes.
 Encourage ‘Clusters” or “Group mode” for ensuring greater coverage of SF/MF under high
value horticulture production systems and aggregation, sorting / grading and collective
marketing for ensuring remunerative prices of their produce on sustainable basis.
 Promotion of FPOs – The Govt. of A.P. has accorded permission to provide 75% financial
assistance for creation of required pre/postharvest and marketing infrastructure to FPOs
so as to enhance to the productivity and quality to realize better returns and make them
competitive. The overall ceiling for financial assistance to a FPO will be a maximum upto
` 1.00 crore for all the infrastructure. Some of the infrastructure-Pack house, Integrated
pack house, pre-cooling units, cold storages, primary processing units, fruit ripening
chamber, evaporative low energy cool chamber, low cost storage structures, refrigerated
transport vehicles, Farm Mechanization equipment, custom hiring centers, retail
marketing outlets etc.
Banks
 Suitable credit products to cater to diverse credit needs of Plantation & Horticulture
activities.
 Extending credit for post-harvest infrastructure viz., Processing units, cold storages and
ripening chambers, etc.
 Credit may also be extended for erection of poly houses and shadenet houses and for
cultivation of High Value Fruits & Vegetables in these structures as the investment is high.
19
Tribal Development Programme (Maa Thota Programme)
NABARD has been closely associated with tribal development and sustainable livelihoods
through orchard based farming systems. As an integral component of NABARD’s Natural
Resource Management (NRM) policy of providing sustainable livelihoods, NABARD laid
special emphasis on providing support for holistic development of tribal communities with
orchard establishment as the core element.
Based on the successful experience of Adivasi Development Programme, NABARD

embarked upon an ambitious program of replicating the wadi model across the country. In
this direction, NABARD created a Tribal Development Fund (TDF) with a corpus of ` 50
crore, out of its profits for 2003-04. The corpus was augmented from time to time. All
projects under TDF are implemented by partnering with State Governments, Government
of India, NGOs and Corporates.
NABARD had implemented Maa Thota prog. in 1500 acres in the district at Jeelugumilli
mandal (with 500 acres/farmers – Mango, Cashew and Mulberry); Buttayagudem mandal
(500 acres/farmers – Mango & Cashew) and Polavaram mandal (with 500 acres/farmers
– Mango & Cashew) with a financial expenditure of around ` 6 crores. The farmers had
also cultivated millets and vegetables. During the project period the family members were
imparted trainings on capacity building, Skill development, Health Education, Women
development and improvement of the livelihood with the convergence from the
Government and other agencies with an integrated approach to assist the families go grow
their income level Health, Education, Environment and culture. The project brought a new
life in the tribal families with a sustainable development. The projects were completed
successfully and the farmers are reaping the benefits of the prog. The farmers are earning
an income of ` 20,000 and ` 50,000 per acre from Mango and Cashew, respectively.
2.1.5. Forestry and Waste Land Development

With the population of the human race now exceeding 7 billion individuals, there is an
increasing concern for the world’s forests and natural resources due to stresses placed upon
them. The role that forests and natural resources play in our lives will continue to evolve with
human development and our expanding use of the global landscape.
2.1.5.2. Long term potential
West Godavari district has a forest cover of 1,24,918 ha. (source: Govt. of AP) in 5 divisions
viz., Eluru, Jangareddygudem, Kannapuram, Polavaram & Kukunoor which is 15.6% of
geographical area in 48 mandals. This is lower than the State average of 23.02% and National
requirement of 33%. Hence, there is an imperative need for bringing more area under forest
cover.
In the district, 1.96% geographical area (16708) is under wastelands, degraded forest land,
upland with or without scrub. Part of the forest area which is degraded is being developed by
Forest Department through Joint Forest Management groups. With adoption of National
Forest Policy, 1988, the exploitation of the forests in term of wood for industry and domestic
usage has come down drastically. The species grown are Bamboos and other wood useful for
timber, fuel and other minor forests produce like Adda leaves, Beedi leaves, Soapnuts,
Tamarind, Honey and fruits. In Polavaram, Buttayagudem, Jeelugumilli, Kukunoor,
Velairpadu mandals and the coverage of area under forest that appear in Pedavegi,
Chintalapudi, T.Narasapuram, Lingapalem, Kamavarapukota are of shrub types.
2.1.5.3. Infrastructure, linkage support & interventions

Seedlings distribution is the major programme under taken by the Social Forestry wing of the
Department of the District. Seedlings of the principle species like Eucalyptus, Casuarina,
Teak, Neem, Usiri, Bamboo etc., are distributed to the farmers from the beginning for taking
20
up farm forestry and agro forestry plantations in their fields, fruit and vegetable seedlings like
guava, jack, drumstick, curry leaf, papaya etc., are distributed to the weaker section colonies
and to public for raising of homestead plantation. Shade giving plants like Peltophorum,
sissoo, neem, Raintree, Neredu etc., and ornamental seedlings like Tebubia, Parijatham,
Bauhinia etc., are being distributed to all educational institutions, government offices, hostels,
hospitals, industries, RTC bus stands, voluntary organizations for taking up plantations in the
premises of the respective institutions and other public places. To minimize the pollution
caused by exhaust gases liberated by vehicles, there is every necessity to raise avenue
plantations all along the road sides.
Demand from industries for pulp wood is increasing many fold as the natural supply is
declining. Eucalyptus is being grown with supplementary irrigation. M/s. ITC Paperboards
& Specialty Papers Division is encouraging farmers by supplying clonal seedlings of
Eucalyptus and Subabul. The company is giving planting material and technical advice and
buying the wood at competitive prices to farmers. International Paper APPM Ltd. and
Ballarpur Paper Mills are also actively procuring material from farmers in the district. There
is good potential for Casuarina in Narasapur and Mogaltur mandals. For Eucalyptus and
Subabul good potential is existing in all the upland mandals.
2.1.5.4. Estimation of potential for 2019-20
(` lakh)
Sl. Activities Unit Unit PLP 2019-20
No cost
Phy. units Fin. Outlay Bank Loan
1 Eucalyptus (Clonal) Ha 0.72 3410 2438.15 1950.52
2 Casuarina Ha 0.87 1260 1094.94 875.95
3 Subabul Ha 0.88 750 660.00 528.00
4 Bamboo Ha 0.57 1350 772.20 617.76
5 Wasteland development Ha 0.58 450 262.35 209.88
6 Teak wood Ha 1.06 420 443.52 354.42
7 Nurseries Ha. 13.00 30 390.00 351.00
Total 6061.16 4887.93
2.1.5.5. Critical Interventions under taken / required

 Extension efforts for promotion of forestry as a viable alternative in view of uncertainties
involved in coastal areas (cyclones and floods). Promotion of agro-forestry for accrual of
interim benefits in forestry models.
 NGOs/VOs to be roped in for promotion of forestry and waste land development in private
sector and in public land particularly in upland mandals.
 Bankers have to be sensitized on the need and viability of forestry based land development
models. Preparation of area development schemes to benefit the bankers and the farmers
may be taken up.
2.1.5.6. Suggested Action Points
 Sensitize bankers on the need and viability of forestry based land development models.
 Popularization of forestry species involving corporate sector on growing Bamboos,
Casuarina, Teak, Subabul, Eucalyptus clonal plantations on commercial scale.

21
2.1.6: Animal Husbandry - Dairy

As per the Livestock Census 2012, the district has 1,88,107 cattle and 6,20,184 buffaloes
(Female breedable Buffaloes 4,76,685 and Female breedable CB cattle are 38,957). CB cattle
account for 31% of total cattle population. Dairy activity has become mainstay of small and
marginal farmers in the district. Milk is collected by organized dairies viz., Vijaya, Tirumala,
Agrigold, Dodla, Model, Jersy, IKP centres, Visakha, Vaishnavi, Venkataraya, Heritage,
Krishna Milk Union, Jyothi, Rytu Dairy, etc. and local vendors in the district. The milk
production in the district is estimated at 12.6 lakh MT (8.9% of state milk production, 5 th
position among districts) for the year 2017-18 and buffaloes accounted for nearly 83% of the
district milk production. The per capita dairy milk availability works out to 627 gm/day as
against 536 gms/day at the State level.
2.1.6.2. Recent policies and interventions:
The GoAP has identified Dairy Sector as one of the growth engines under the Primary Sector
Mission and the State Government has plans to increase milk production and its contribution
to the District Gross Domestic Product considerably. Initiatives by State Government are
summarized as under:
 The milk production was 12.6 lakh MT and its contribution to the District GVA is 3295
crore in 2017-18. The Department of Animal Husbandry aims at increasing the milk
production to 15.2 lakh MT in 2018-19.
 Under the scheme Rashtriya Krishi Vikas Yojana, State Development Plan SSG Hybrid
fodder seed was distributed on 75% subsidy basis.
 F&M vaccination programme' is being implemented under RKVY.
 The State Government is implementing various promotional developmental schemes viz.,
 Ksheersagar
 Sunandini
 SuphalamTraining programmes
 Fodder and feed development scheme
 Pregnant heifer Induction programme (Purchase of animals from outside the state,
Haryana & Tamilnadu.
 OPGK: Oorura Pasu Grasa Kshetralu- a scheme for door delivery of Fodder through SHG’s
by involving farmers/Entrepreneurs/Organizations in the state.
The GoAP came out with a well-defined climate resilient and farmer friendly Fodder Security
Policy Livestock 2015-2020 to develop animal fodder industry that contributes significantly
to improved animal production and reproduction and to make AP a fodder surplus state.
2.1.6.3. Assessment of potential for 2019-20
level credit, infrastructure availability / gaps and the revision in the unit cost of in some items,
(` lakh)
S.No. Activity Unit PLP 2019-20
1 Cows ( Cross Breed) - 2 nos. 1870 3179.00 2861.10
Animals
2 Buffalo (GMB) - 2 Animals nos. 7050 12690.00 11421.00
3 Commercial Dairy (100 CBC) no. 16 1377.60 1239.84
4 Mini Dairy - 5 GMBs nos. 1305 5350.50 4815.45
5 Mini Dairy - 10 GMBs nos. 991 8532.51 7679.26
6 Calf Rearing-GMB nos. 1850 740.00 666.00
7 Fodder cultivation ha. 3350 636.50 572.85
22

8 Chaff cutters nos. 1580 1027.00 924.30
Total 33533.11 30179.80
2.1.6.4. Infrastructure and linkage support Available, Planned and gaps

 There are 206 Veterinary Institutions consisting of one State Institute of Animal Health at
Tanuku, 23 Veterinary Hospitals, 105 Veterinary Dispensaries, 78 Rural Livestock Units
and one Mobile Veterinary Clinic. There is a vacancy of 28 Veterinary Asst. Surgeons’ posts
in the district and posts may be filled up to ensure proper veterinary services.
 There are 392 AI centers (202 centers under with AH Dept. and 190 Gopal Mitras)
operating in the field for taking care of AI activity. Considering one AI center for 1000
breedable animals the district requires 425 AI centers and the gap can be filled in a phased
manner.
 8 milk processing plants are present in the district.
 Encouraging setting up of commercial dairy/mini-dairy units with bank finance and
establishment of vermin compost units.
 Greater emphasis on calf rearing through support under Sunandani Programme - supply
of feed and veterinary care.
 There are 6 weekly markets at Appanaveedu, Undi, Palkol, JangareddyGudem and
Penugonda for purchase and sale of animals besides nearby Hanuman Junction.
 Buffalo Research Station at Venkatramannagudem is functioning and farmers need to
utilize its services for better breeding and improving productivity and income. There are
no training centres for dairy farmers in the district.
 District Livestock Development Agency (DLDA), Tadepalligudem supplies quality semen
of Murrah, Ongole, HF, Jersy and Cross breed and Liquid Nitrogen to all the Departmental
A.I. Centres. Other activities include conducting fertility camps benefiting cattle,
pasuvignana sadasulu, Gopalmitras training programmes, cattle insurance under central
government scheme.
 There are about 200 registered Dairy Societies in the district and after APDDCF started its
operations in the district from August 2007, dormant societies are getting revived. The
dormant Dairy societies need to be revived and the milk routes have to be increased to
cover the entire district.
2.1.6.5. Suggested action points

Government
 Promotion of private sector dairies, manufacturing of milk products, indigenous milk
products, bulk cooling units, refrigerated vans needs to be encouraged as 2.25 lakh litre
per day is still under unorganized milk collection.
 District requires 425 AI centers @ 1000 breedable animals per AI. 33 aditional AI centres
are required to meet the required AI centres. AI centers may established in the phased
manner.
 Encouragement of fodder cultivation on commercial scale.
 Setting up of training centers for dairy farmers in the district.
Banks
 Bank may consider financing of calf-rearing, chaff cutting machines, bulk coolers, etc.
 Banks may finance for setting up of commercial dairy/mini-dairy units and vermicopost
units.
23
2.1.6.6. Area Development Scheme

The growing demand for milk and milk products offers enormous scope for rural people to
take up dairy as a livelihood activity. Though dairy activity is being financed by banks, there
is a scope to implement an Area Based Scheme in the district with the coordinated effort of
banks, AH Department and NABARD. Area Development Scheme – Dairy – 2 Graded Murrah
Buffaloes was launched.
2.1.7. Animal Husbandry – Poultry

Andhra Pradesh is one of the leading poultry state in the country in respect of both commercial
layer and broiler farming. As per the District Livestock Census, 2012, there are 101.12 lakh
poultry birds which includes 13.14 backyard poultry birds. The egg production in the district
for the year 2017-18 was at 341 crore and GVA is ` 1268 crores. The per capita eggs availability
works out to 536 eggs/annum as compared to the state average of 250 eggs/annum. The NECC
center at Tanuku declares the daily egg prices. Considering the demand for eggs and poultry
meat, a large number of farmers have taken up poultry farming in the district.
For the development of Poultry GoI has approved continuation of the Centrally Sponsored
Scheme “National Livestock Mission” The Govt. of AP has identified Poultry Sector as one of
the growth engines under the Primary Sector Mission and the plans to increase egg production
and its contribution to the District Gross Domestic Product considerably. The Chicken meat
and egg being very essential elements of low cost protein in human diets, the Government has
considered it necessary to intensify the production from Poultry sector through a
comprehensive POULTRY DEVELOPMENT POLICY 2016-20 in the State. The financial
implications for implementation of Poultry Development Policy 2016-2020 is ` 575.46 crores.
Some of the highlights of the policy include: (a) Capital subsidy (b) Setting up of Chicken
Processing units on PPP mode (c) Capital Subsidy for setting up of cold chain facility (d)
Subsidy for setting up of cold chain facilities exclusively for broiler poultry meat (e) Interest
subsidy (f) Tax incentives for MSME and large food processing units connected to poultry
sector (f) Stamp duty relief (g) Interest subsidy towards support for setting up of Poultry farms
(h) Encouragement to set up facilities for converting poultry manure into organic manure,
power generation units with poultry manure (i) Rural Backyard Poultry (j) Poultry Manure as
Organic Manure (k) Reduced Power tariff rates for certain categories.

(` lakh)
Sl A H (Poultry) Unit PLP 2019-20
No.
Phy. units Fin. outlay Bank loan
1 Broilers (50000 birds unit) nos. 14 319.20 271.32
2 Commercial Layers (5000 birds unit) nos. 162 5817.42 4944.81
3 Egg / Chick. Carts nos. 190 45.60 38.76
4 Chicken/Meat Outlets nos. 34 63.92 54.33
5 Duck Rearing (25 birds) no. 18 3.24 2.75
6 Working capital for layer farms nos. 1490 26224.00 22290.40

(5000 birds unit)
Total 32473.38 27602.37
24
2.1.7.3. Availability and Gaps in Infrastructure support services, Available,

Planned and gaps
 In case of broiler birds, the hatcheries are encouraging contract farming Day old chicks are
procured from Vijayawada. The market share of M/s. Srinivasa Hatcheries in DOC’s is
90% in the district with ‘BV 300’ layer and other brand is Suguna.
 Feed cost and lack of storage also adversely affects poultry. Feed is the major item of
recurring expenses cost in poultry and increase in feed cost would affect the returns.
2.1.7.4. Suggested Action points.

 There is no feed analytical laboratory in the district. The Animal Husbandry Department
in coordination with poultry industry may set up a Feed analytical laboratory in the
district.
 There are no adequate cold storage/refrigerated vans for preservation and transportation
of poultry products.
 In view of the vulnerability of the poultry units to various diseases, more emphasis on bio
security needs to be ensured.
 Banks may encourage backyard poultry farming of traditional birds either in the SHG
mode on by promoting Joint Liability Groups.
2.1.8. Animal Husbandry – Sheep, Goat, Piggery, etc.

Rearing of Sheep, Goat and Piggery is a traditional activity in the district and it provides
dependable source of income to the growers. The activity makes a valuable contribution to
the livelihood of the economically weaker sections of the society. Sheep rearing is a preferred
activity in the district. Small and marginal farmers, SHG members are also engaged in rearing
of sheep and goat for supplementing their incomes. Though the piggery is a traditional
activity, it has a limited scope.
2.1.8.2. Current status / credit flow / recent policies, interventions
In the district, as per the 2012 Livestock census, there were 436810 sheep, 193218 goats and
10327 pigs. The meat production in the district is estimated at 44053 MT (6.1% of state meat
production) for the year 2017-18. Sheep and goats account for 16% of meat production in the
district.
The Dept. is supporting the activity through distribution of breeding rams and technical
guidance. The State Govt. is implementing sheep insurance prog. which covers Insurance of
Sheep on subsidized premium basis. The State Government is extending 50% subsidy to the
Mini Goat units, Sheep & Goat units and Ram Lamb units.
The GoAP has identified Livestock Sector as one of the growth engines under the Primary
Sector Mission and plans to increase meat production and its contribution to the Dist. GVA to
`1268 crore and production to 53000 MT in 2018-19. GoAP is implementing some
programmes for developing the sector. The financial allocations are limited and brief details
of progs. are (a) Avikabandhu (b) Sheep Shelters (c) Interest subsidy for setting up new
sheep/goat farms (d) Feeding support to pregnant ewes (e) Community managed sheep
insurance (f) Meat Market outlets/ Meat Processing Unit/ Mobile Sheep Health Care Units.
level credit, infrastructure availability / gaps and the revision in the unit cost of some items,
25
(` lakh)
S. PLP 2019-20
No. Activities Unit
Phy.units Fin. outlay Bank Loan
1 Sheep Rearing (20+1) nos. 1794 3121.56 2809.40
2 Ram lamb unit for fattening (20) nos. 233 193.39 174.05
3 Breeding Ram (10) nos. 465 762.60 686.34
4 Meat Shops nos. 28 56.00 50.40
5 Goat Rearing (20+1) nos. 285 470.25 423.23
6 Pig Fattening (10+1) nos. 7 34.30 30.87
Total 4638.10 4174.29
2.1.8.4. Infrastructure and linkage support available, Planned and gaps.

 Availability of infrastructure for veterinary health care with the Animal Husbandry Dept.
which extends support for sheep and goat rearing has been indicated in ‘Dairy’ chapter.
 Poor quality feeding resources, inadequate grazing land, disease prevalence and
unorganized marketing are the major constraints for development of this sector.
 For promotion of piggery, Dept. is maintaining Pig Breeding farm at Gopannapalem of
Denduluru mandal, where production and sale of high pedigree exotic pigs (Large White
Yorkshire Breed) to upgrade local stock is being taken up besides supply to weaker
sections.
 There are nine recognized slaughter houses with the handling capacity of 795 small
animals per day and one pig slaughter house in the district.
 The district is having 91 Sheep Coop. societies with 5005 members.
2.1.8.5. Crititcal Intervention required for creating a definitive impact
 Sheep breeding farms and ram multiplication farms of the department may be
strengthened. There is a need for modernization of the existing slaughter houses in the
district.
 Sheep rearers need to be educated regarding the sheep insurance scheme, procedures and
formalities to be followed.
 Capacity building for Shepherds on avoiding inbreeding among sheep flocks and to
popularize stall fed goat rearing schemes and discourage free grazing.
 Vaccination and deworming as preventive measures have to be taken up by the
department.
 Commercial sheep breeding farms under semi-intensive system, ram lamb rearing
hygienic retail meat outlets and stall-fed goat rearing schemes may be encouraged after
assessing the feasibility in the scheme area. SHGs can be involved in ram lamb rearing.
2.1.8.6. Suggested action points
 Coordination among banks, department, Federation and local sheep association is very
much needed. Banks to utilize the various subsidy schemes State Govt. to boost their
lending to the sector. JLGs can be formed by traditional shepherds for obtaining bank
credit. Effective post sanction follow-up of sheep loans by banks is to be given importance.
2.1.9. Fisheries
The New Sunrise State of Andhra Pradesh has set for itself a target of becoming one of the top
three States in India by 2022 in terms of socio-economic development. The State aspires to
achieve the status of a developed state in the country by 2029. Under the Primary Sector
mission, Fisheries is identified as one of the growth engines of the State and is an important
component under Primary sector mission.
26
2.1.9.2.. Fishery Resources of Andhra Pradesh

AP ranks 1st in total fish and prawn production and producing more than 70% of culture
shrimp in the country. The State aims to reach 2nd position in the world in shrimp production
by 2020-21 (0.85 M-MT). Contributed 44.84% of India’s Sea Food Export during 2016-17
(`17000 crores) and targeted to achieve ` 25000 crores in 2019–20. It is envisaged to reach
42 lakh tonnes production with GVA of ` 80,000 crore by 2019-20. AP. Government
formulated AP Fisheries Policy 2015 duly providing incentives and subsidies in capture and
culture fisheries sector.
During the year 2017-18 the fish production from AP is 3449558 M.T. with GVA of Rs.41328
crores with the growth rate ofd 24.7% in terms of production and 33.3% growth rate in terms
of GVA. The Fish production target for the year 2018-19 is 4485200 M.tons with the GVA of `
52832 crores.
2.1.9.3. Fishery Resources in the district
S.No. Resources
1 Marine Coastline 19 km
2 Continental Shelf 536 sq.km
3 Fishermen villages 26 nos
4 Fishermen population 2.98,398
5 Sea going fishermen 3,557
6 Inland Reservoirs 4 nos. with 1200 ha.
7 Tanks 101 with 2550 ha.
8 Kolleru lake 0.90 lakh ha (West Godavari & Krishna Dist.)
9 Rivers & canals 3,750 ha.
10 Fresh water aquaculture 56,752 ha
2.1.9.4. Infrastructure available in the district

S.No. Infrastructure (capture & culture)
1 Fishing Harbors Proposed at Biyyaputtipa
2 Fish Landing Centres 7
3 Fishing crafts 963 (Marine 116 & Inland 847)
4 Coastal Aqua Culture Area Developed: 0.74 lakh ha.
(Brackish Water) Area under culture: 0.46 lakh ha.
5 Feed Mills 9 (2503 ton/year)
6 Shrimp Hatcheries 5 Larval rearing centres (200 million/cycle)
7 Aqua labs 42 (Govt. 3 & Private 39)
8 Fish seed farm with a spawn Badampudi
production(Govt.)
9 Rearing farms (Govt.) Eluru, Narasapuram, Kovvali&Tanuku
2.1.9.5. Details of Fishermen Cooperative societies in the district

S.No Name of the Society Societies Membership
1 Inland Fishermen Cooperative Societies 253 2008
2 Fisherwomen Cooperative Societies 33 1834
3 Marine Fishermen Cooperative Societies 16 1042
4 Brackish water Fishermen Coop. Societies 4 170
5 Marketing Fishermen Coop. Societies 1 2000
2.1.9.6. Fish Production status of West Godavari Dist.

 West Godavari district ranks 2nd in total fish and prawn production and producing around
30% of the state production for the year 2017-18.
27
 Total fish and prawn production of the district for the year 2017-18 is 1051754 M.T. with a
GVA of ` 10088 crores.
 Aimed to reach 1150000 Lakh M.T. for the year 2018-19 with a GVA of ` 15000 crore and
1.25 Lakh MT. for the year 2018-19 with a GVA of ` 11586.44 crore.
2.1.9.7. Strategies for Fisheries Sector

(i) Inland Fisheries Sector:
 Fish Seed stocking in potential MI and GP Tanks under Blue Revolution Scheme i.e.,
mission fingerlings.
 Construction of Captive Seed Nurseries under MGNREGS.
 Fish landing Centers at Reservoirs to reduce post-harvest losses under Blue Revolution
Schemes.
 Enhancing Production and Productivity through selective breeding and quality seed
supply
 Capacity Building to fishers and aqua farmers on BMPs
 Organic fish farming & integrated fish farming
(ii) Marine Fisheries Sector
 Coastal security through boats registration, colour coding & biometric card
 Ban period on marine fisheries for conservation of fishery resources
 Capacity building to coastal fishers on Code of Conduct for Responsible Fisheries and Post-
harvest technology
 Voice message services through Reliance foundation for potential fishing zones
information, whether advisories to the sea going fishermen
 Awareness on cold concept in Fisheries to marine fishers-through Establishment of Solar
hybrid chilling unit at Chinnamyanavanilanka.
(iii) Aquaculture
 The Department has evolved Mee Seva Services to issue the online licenses to Aqua
farmers in the district
 Implication of Registration Process for Aquaculture farms
 Geo tagging of all aquaculture ponds
 Aquaculture Insurance
 Disease monitoring and surveillance – Designation of SIFT &Kaikaluru Aqua labs as
Referral laboratories.
 Toll free number 18004251188 for giving technical assistances to Aqua farmers
 Networking of all Aqua Laboratories for Disease Surveillance
 Creek Based Cluster Aqua farming – Uniform Practices /Code of Conduct
 Exposure to Technology up gradation & Extension service
 Demand driven Research and Development
 IFFCO-Kisan Sanchar ,Reliance Foundation ICT and Toll free services to Aqua farmers
 Aqua clusters-29 mandal level and 104 village level-sensitisation on GMPs in aqua farming
is done
 Pond automation in shrimp farms
 Fattening of Crabs in plastic boxes
 Chandranna Rythu Kshetralu
 Task force teams to inspect the aqua shops, hatcheries etc.. to check the usage of banned
antibiotics in shrimp culture
 Registration of Aqua labs
(iv) Ornamental Fisheries
 Training and capacity building to Women SHGs and MMGs
 Exposure visits to other States for technology transfer
 Aquarium Fabrication units and Accessories units for additional income generation
 Buy back and Marketing linkages
28
 Export promotion and facilitation

 Established 10 units at Mandapaka village of Tanuku Mandal
(v) Marketing
 Domestic Market promotion through retail outlets, markets and Kiosks
 Promoting per capita fish consumption through promotion of fish value added products,
Mudra loans for fisherwomen for sustainable livelihood.
 Electronic and print media campaigns, Fish Melas & Exhibitions
 Promotion of Hygienic handling at landing points and on board vessels
 Export market promotion through establishment of cold chain facilities.
(vi) Infrastructure
 Establishment of Fish Landing Center at Biyyaputippa (V) at Narasapuram (M) proposed
with an outlay of Rs.20.00 crore
 Construction of fish drying platforms in coastal villages with the convergence of
MGNREGS.
 Renovation and repairs to Government Fish Seed Farms located at Kovvali, Tanuku,
Badampudi, Eluru, Pedameram & Narasapuram.
2.1.9.8. Infrastructure and linkage support

S.No Infrastructure Planned Gap
available/Issues
1 Presently there is culture of fresh The Dept. will be taking up a fish brood The growth rate
water fish in about 1.25 lakh acres stock bank at the fish seed farm at and production
of land in the district; the Badampudi of WG dist. for rearing and levels will further
requirement of fish seed for this production of broodstock obtained increase in the
extent is about 25 crores of fish from the Ganges River in West Bengal. future with
seed (80-100mm). The farmers Spawn produced from these brood culture from the
are procuring the seed from the stock will be reared and supplied to the seed produced
Govt hatchery & private inland fisherman coop societies and from the brood
hatcheries. However the long felt fish farmers which will grow faster bank.
demand of the farmers is a fish with higher production. The Fisheries
broodstock bank for production of Dept. has already provided ` 1.50 crore
fish seed without inbreeding. for this project. Brood seed
rearing center at Kovvali with an
outlay of ` 5.00 crores (RKVY)
2 There is culture of Vannamei Encouraging entrepreneurs for One cold storage
shrimp in about 20,000 ha of land establishing cold storage plants. plant in each of 4
in the district and the demand of aqua zones
the shrimp farmers is that cold proposed in the
storages should be provided at all district to address
the shrimp growing clusters in the the gap.
district to preserve their harvest
when price is artificially lowered
by exporters.
3 Although there is production 0f Encouraging entrepreneurs for Establishment of
85,287 tons of shrimp from establishing progressive Shrimp
culture in about 20,000 ha of land entrepreneurs may be encouraged to hatcheries
in the district there are only 5 establish shrimp hatcheries with
hatcheries and farmers have to get suitable bank assistance.
the shrimp seed from neighboring
districts.
4 The capture fisheries in the Equipping the active coastal fishermen Concerned area
district from marine sector are with FRP motorized boats increases bankers to
limited; although there is a need to the fishing effort and catch. The proactively
improve the existing potential. balance 50% may be provided by the involve in
The Dept. is providing 50% banks as loan. extending bank
subsidy for 10 FRP motorized loans for this
boats with unit cost of ` 5.00 activity.
lakhs.
29
2.1.9.9. Estimation of potential for 2019-20

The sub-sector wise loan projections estimated for the year 2019-20 are given in the table
hereunder:
(` lakh)
Sl. Activity Unit PLP 2019-20
No Phy. units Fin. outlay Bank loan
Inland Fish Farming (New Ponds /
1 ha. 2220 16581.18 13264.94
Tanks - 2 ha.)
2 Working capital for Inland fish culture ha. 2220 6660.00 5328.00
Working capital for resorvior / river

3 ha. 5380 1301.96 1301.96
fishermen / Kolleru fishermen
4 Brackish Water Prawn Farming - New ha. 2400 51096.00 45986.40

Brackish Water Prawn Farming -
5 ha. 2500 26625.00 25293.75
Renovation
Working capital for brackish water
6 ha. 2500 12500.00 12500.00
prawn farming
7 In board motors ha. 50 100.00 80.00
Total 114864.14 103755.05
2.1.9.10. Critical Intervention required for creating definitive impact

 There is a need increase the fish seed production at Badampudi to cater the needs of the
district.
 Loss of the shrimp crop due to virus or due to the early mortality syndrome reduces the
shrimp production, in addition to affecting the farmers economically. To deal with the
disease surveillance the Fisheries department has to encourage private aqua labs with
qualified graduates in addition to the proposed aqua labs at Eluru, Akiveedu, Bhimavaram
and Undi.

Government
 During the year 2017-18 Fisheries Department has to facilitate revival of the abandoned
farms, Scampi, Telapia, See bass, Crab culture, Ornamental fish culture, Supply of Fishery
inputs to farmers on subsidy schemes.
 To cater to the need of the inland fishermen and farmers in the district the Fisheries
department may encourage more fish seed production farms.
 Department and MPEDA to take steps to sensitize farmers on various aspects of fish
culture and various schemes under implementation.
 Construction of harbors and jetties may be taken up with support under RIDF.
 Increase area under fish culture in command areas through RKVY and Blue Revolution
Schemes.
 Introduce new alternate species like Telapia, Sea bass, Crab culture etc.
 Reduce the cost of inputs used for aquaculture by adopting GMPs
 Establishment fish feed mills in private sector / joint venture with NFDB and bank
funding.
 Utilize the area increased under Neeru - Chettu tanks deepening programme
30
 Deepening and Desilting of Irrigation tanks with MGNREGS scheme and formation of
small captive nurseries for rearing of big size seed in Irrigation tanks.
 Stocking of year lings for 2 crops in IMC crop
 Department has introduced Pen and Cage culture unit with ` 55.00 lakh in Errakalava
Reservoir. Similar units may be popularized.
 Development of fish landing centers facilities at the reservoir place.
Banks
 Banks may finance the fisheries activity as there is a lot of scope for increasing the credit
flow.
 Banks may finance the sector through FCS/MMG’s.
 Banks may think of financing the sector through JLGs also.
 Extending financial assistance for setting up of Fish Kiosks, Retail outlets, Mobile vending
units, Fish markets for hygienic handling and enhancement of per capita consumption
through domestic fish marketing.
Aqua Labs with RIDF assistance

To facilitate sustainable fisheries development, Government has set up two Aqua Labswith
RIDF assistance at Eluru and Akiveedu. These labs are set up for surveillance and
monitoring of diseases. For the needs of Aqua farmers, these Aqua Labs are analyzing the
Quality of Water, Soil, Feed, Seed, Microbiology, PCR and Residue Tests.
2.1.10. Others – Bullocks, carts, two wheelers, etc.

89.38% of the land holdings in the district comprise of small/marginal holdings. There are
4.27 lakh land holdings of less than 1 ha. size and an average one acre each and 0.92 lakh
holdings of 1 to 2 ha. size in the district. Considering that tractors or power tillers might be
beyond the reach of these farmers, some of the farmers still depend on bullocks for their
farming operations including transportation of sugarcane to sugar factories. Alternate
transport for these farmers/people and material in rural areas, provides scope for financing
bullocks and carts in the district.
2.1.10.2. Availability of Infrastructure, critical gaps, & interventions required
action points / issues to be addressed:
 Quality bullocks and bullock carts are available in the local shandies.
 Traditional carpenters in the rural areas possess the requisite skill for manufacturing of
wooden carts.
 Due to frequent drought conditions in the district, farmers are facing financial problems
in maintaining the bullocks. Banks need to finance crop loans as per the revised KCC
norms, which will enable the farmers to maintain the animals.
the projections have been estimated at `1786.50 lakh. The sub-sector wise loan projections
estimated for the year 2019-20 are given in the table below:
(` lakh)
Sl. Others Unit PLP 2019-20
No. Phy. units Fin. outlay Bank Loan
1 Plough Bullocks nos. 750 300.00 270.00
2 Bullock Carts (Pneumatic Tyre) nos. 1500 705.00 634.50
3 cart) Wheelers
Two nos. 1400 980.00 882.00
Total 3650 1985.00 1786.50
31
2.2 -Agriculture Infrastructure

2.2.1. Construction of Storage and Marketing Infrastructure
Having realized the importance of infrastructure to achieve faster rate of economic growth,
the Government of India as well as the State Governments have ventured into making heavy
investment in agricultural infrastructure. The major focus of Agricultural infrastructural
investment has been on agricultural markets, Godowns, Silos, Cold Storage units, etc., and
these not only contributed to the agricultural growth at the macro level but also to balance
wide disparity between different regions in terms of agricultural growth. The development of
Agriculture infrastructure in the country cater to the post-harvest requirement of production
and marketable surplus of various farm products. At present, much emphasis has been on
commercializing agricultural production hence adequate production and distribution of food
has become a high priority. Agricultural produce requires scientific storage and handling to
minimize post-harvest loss and to maintain nutritional quality for the consumer. The farmers
also need efficient marketing arrangement for realizing fair and remunerative prices.
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.
the projections have been estimated at `35481.51 lakh. The sub-sector wise loan projections
(` lakh)
Sl. Agriculture Infrastructure Unit PLP 2018-19
No.
Phy Fin. outlay Bank Loan
1 Cold storage units (5000 MT) Nos. 40 21252.00 19126.80
2 Market Yards Nos. 16 4857.60 3643.20
3 Rural Godowns for storage of Agriculture Nos. 113 5220.60 3915.45
produce (upto 1000MT.)
4 Rural Godowns for storage of Agriculture Nos. 58 4176.00 3132.00
produce (above 1000 MT.)
5 Agrl. Marketing Infrastructure units Nos. 13 5920.20 4440.15
6 BMCU (5000 Ltr) Nos. 59 1221.30 1099.17
7 Vehicles for Gopal mitras Nos. 220 138.60 124.74
Total 42786.30 35481.51
2.2.1.3. Infrastructure and linkage support available, planned gaps

 The district has 18 Agriculture Market Committees with 22 Market Yards and 105 godowns
with 92,310 MTs. of storage capacity. Daily market rates are displayed on electronic
boards set up at AMPCs. In addition to the above, SWC (2,00,000 MT), CWC (75,000
MT.), MARKFED (1,00,000 MT.), Civil Supplies Dept. (20,000 MT) having storage
capacity.
 APMCs are implementing Rythu Bandhu Pathakam, a pledge loan scheme with loan upto
` 2 lakh, in the interest of farming community to avoid distress sales. Upto 180 days, no
interest will be charged and 180 days to 270 days, 12% interest will be charged. During
2017-18, under the Rythu Bandhu Pathakam, APMCs have provided an amount of ` 813.63
lakh to 502 farmers in the district.
 The food grains production levels are in the range of 27 to 30 lakh Mts. Considering 50%
of production requires storage space, 13 to 15 lakh Mts. storage capacity of godowns are
required.
32
 As per the feasibility study on Silos, godowns and multifeed mixing plant conducted by
YES Bank Advisory Services, the district requires godowns to the tune of 16 lakh Mts. To
bridge the gap, an immediate need for construction of godown space of 8 lakh mts. to take
care of production and fertilizer consumption.
 As an allied activity to storage market yards, development of agricultural marketing
infrastructure is also essential for optimum utilization of storage space. Potential
investments could be food grain processing (8-10 units are functioning in the district).
paddy and maize procurement, pulses grading, cotton ginning, e-trade, e-sagu, milk
processing, cold storages, ripening chambers, pack houses have good potential in the
district attracting bank credit.
 NABARD has sanctioned WIF loan of ` 570 lakh each to APSWC for construction of 2
Rural Godowns at Kamavarapukota & Penugonda with a capacity of 10000 MT each.
2.2.1.4. Critical Intervention required

 There is a need for creating adequate storage and marketing infrastructure to increase the
holding capacity of farmers and enabling them to get remunerative prices for their
produce.
 Co-operative societies and Voluntary Agencies can play a vital role in aggregation of
farmers produce for transport / storage in order to reduce costs. The agencies can also
facilitate primary processing of commodities for increasing the shelf life.

 The major constraint in the development of the sector in the state is lack of awareness
among the farmers about the benefits of scientific storage facilities. Also, due to
fragmentation of land holdings, the surplus generated per family is less.
 As a part of conversion of PACS into MSC, 40PACS have been supported under PODF for
construction of godowns.
 Frequent power cuts and non-availability of timely power connections for new units are
deterrents in establishment of cold storage.
 The Negotiable warehouse receipt system is yet to be adopted in the district. Creating
awareness amongst farmers on the importance of scientific storage of agri produce is the
need of the hour.
 Bankers to lend to farmers on the strength of negotiable ware house receipts.
2.2.2. Land Development

The soils in the district are alluvial, black reger and red ferruginous, besides small belt of
arenaceous sandy soils along the coastal belt. There are eight major types of soils in the district.
More than 41,000 ha is degraded land. Land degradation in the State varies in nature and
magnitude due to deforestation, ignorance of soil conservation practices, extension of
cultivation to marginal lands, improper crop rotation, etc. The district has 0.50 lakh ha. of
fallow lands(current and other) and 0.17 lakh ha. of cultivable wastelands.
2.2.2.2. GoI / GoAP interventions for promotion of land development, soil

conservation and watershed development :
i. Soil and water conservation programmes of GoAP:
ii. Creation of viable farm livelihoods by promotion of Organic Farming and Natural Farming:
iii. National Mission for Sustainable Agriculture (NMSA): Under NMSA the following
activities are being implemented (a) Rainfed Area Development (RAD) and (b) Soil Health
Management (SHM) (c) Soil Health Card Scheme (SHC) (d) Paramparagat Krishi Vikas
Yojana (PKVY):
iv. National Project on Organic Farming (NPOF): Capital subsidy for establishment of (i) Fruit
and Vegetable waste/agricultural waste compost unit and (ii) Bio-fertilizer and/or Bio-
Pesticide Unit is available.
33
v. NABARD has taken various initiatives for creating awareness on importance of saving water
through “Water Campaigns” with the theme of ‘Jal Jeevan Hai’. In the district, 500 Water
Conservation and Management Awareness Programmes were conducted which caught
attention of the people on the requirement for judicious use of water for the benefit of present
generation and future generation.
2.2.2.3 Assessment of potential for 2019-20
(` lakh)
S.No. Land Devpt. - activities Unit PLP 2019-20
Phy. units Fin.outlay Bank Loan
1 Land development & on farm nos. 3150 2532.13 2278.91
development
2 Reclamation of problem soils nos. 5575 2147.94 1933.14
3 Soil Improment by Tank Silt nos. 5000 2772.00 2494.80
Application
4 Reclamation of saline soils nos. 2500 963.20 866.88
(canal command areas)
5 Misc. Purchase of land / farm nos. 4500 5850.00 5265.00
pond / erosion control
Total 14265.26 12838.74

A large area in the district is under perennial horticulture crops where land development
works are taken up ongoing basis for higher productivity. Frequent cyclones poses threat to
the fertile top soil, for which adequate land / soil conservation measures need to be taken up
on a regular basis. The land development broadly covers land leveling, bunding, on farm
development, watershed development, soil improvement, reclamation of saline and alkaline
lands and production of organic manures.
There are four laboratories in districts, viz., Seed Testing Laboratory, Pesticide Testing
Laboratory soil testing laboratory and Fertilizer Control Order Laboratory at T.P.Gudem. The
soil testing laboratory equipped to take up analysis of soil to advise farmers on site specific
and situation specific fertilizer recommendations on the basis of native soil fertility. Soil
Health cards were issued to all farmers in the district.
 Need for conducting awareness programme /capacity building programme for farmers as
well as bankers on the need for soil conservation measures required to protect the fertility
of the soil.
 Farmers clubs, SHGs may be encouraged for taking up production of quality vermi
compost, organic fertilizers, etc.
2.2.3. Agriculture Infrastructure – Others
2.2.3.1. Introduction and initiatives

Tissue Culture offers certain advantages over traditional methods of propagation for uniform
growth, production and quality and disease free plant material.
In view of the increasing and indiscriminate use of chemical fertilizers and pesticides resulting
in deteriorating soil health and productivity, the concept of organic farming is gaining
importance amongst farmers. The present day intensive agriculture practices have resulted
34
into soil fatigue, and gradual deterioration of soil health. To overcome these growing problems
emphasis is being given to restore soil health by reducing the use of chemical inputs and
increasing the use of biological and organic inputs.
Rural areas with predominance of agriculture, suburbs of towns are considered ideal locations
for setting up of vermicomposting units on a larger scale from the view point of availability of
raw material and also marketing of the produce.
AP State Seed Development Corporation has a processing unit in the district. As the entire
certified seed is being imported from other states/district and also considerable area under
paddy cultivation in the district, there is a good potential for establishing seed processing
plants.
2.2.3.2. Assessment of Potential for 2019-20
Taking into account, the present status, various infrastructure availability/gaps and recent
policy and promotional interventions, an amount at ` 3825.95 lakh has been estimated for
2019-20.
(` lakh)
No cost Phy.units Fin.outlay Bank Loan
1 Seed Production & Processing 10.00 46 460.00 345.00

2 Bio-Fertilizers / Pesticides (200 216.00 12 2592.00 1944.00
tpa)
3 Vermi Hatchery (250 tpa) 11.50 10 115.00 86.25
4 Vermi Composting (20 tpa) 2.70 700 1890.00 1417.50
5 NEDEP compost 0.16 300 48.00 43.20
Total 5105.00 3835.95
2.2.3.3. Infrastructure, critical gaps

 Seed production – There is a need to strengthen the infrastructure requirements.
 Agriculture and Horticulture Depts. are promoting vermi-compost by providing subsidy.
Agriculture Dept. is promoting non pesticides management in different crops (NPM
techniques).
 NABARD is also building the capacities of SHG women through MEDP programmes in
production of bio fertilizers, vermi composting, etc., in the district.
2.2.3.4. Critical interventions & action points

 Seed processing units – Setting up of seed processing plants in villages where Seed Village
scheme is under implementation would make the district self-reliant. The Banks may
extend financial support for critical capital expenditure.
 Involving NGOs - There is a need to create awareness on use of bio-fertilizers by utilizing
the services of Village/community organisations like SHGs, Mandal Samakhyas, NGOs.

 Banks to encourage Farmers' Clubs/PACS/SHGs to take up production of quality
compost/ vermi compost, organic seeds/ planting materials and plant protection
materials.
 Farmer's Cooperatives, exclusively for promotion of organic farming which can also act as
business platform for the farmers, may be promoted.
 Bankers may extend credit to seed processing, vermi compost units and bio-fertilizer units.
35
2.3. Agriculture Ancillary Activities
2.3.1. Food and Agro Processing
2.3.1.1.Introduction
Food and Agro processing sector encompasses processing of raw materials (food /
feed) from all agricultural crops including food grains, horticultural and plantation
products, forest produce, livestock, fisheries. MoFPI, GoI and State Industrial Policy have
laid special emphasis on growth of Agro based Food Processing industry. Subsidy is available
under RKVY for Technology Upgradation /Establishment/ Modernisation of Agriculture and
Horticulture Produce Processing Units with 25% grant on P&M and technical civil works
subject to maximum limit of ` 50 lakh.
2.3.1.2. Food Processing Policy of Andhra Pradesh State 2015-2020
Policy Objectives: (a) Develop commodity-based clusters to enable a focused and planned
approach to developing the food processing industry through a coordinated approach between
government departments. (b) Identify and bridge existing infrastructure gaps affecting the
food processing industry. (c) Promote innovation, research & development in the industry and
ensure continuous technology up gradation. (d) Undertake capacity building and enhance
competitiveness of food processing industry in both domestic and international markets.
2.3.1.3. Present Status of Agro and Food Processing in the District
The district has rich agricultural resources which offer tremendous opportunities for value
addition. The major opportunities in agro processing sector are Grain Milling, By-products of
Paddy, Oil palm, Sugar, Fiber Board from Agro Waste, Fruit Processing, Cashew Processing,
Cocoa products, Maize Processing, Jaggery Units, Coconut processing, Coir, Fisheries and
Prawn Processing and Milk products.
Mega Food Parks Scheme is to provide all infrastructural facilities under one roof.
Establishment of Mega Food Park has been sanctioned to Godavari Mega Aqua Food Park Pvt
Ltd (GMAFP) and set up at Bhimavaram of West Godavari district. Conceptualized as a Hub
& Spoke model, the Mega Food Park is to be constructed with its core processing center (CPC)
at Tundurru Village in Bhimavaram region acting as the Hub and the Spoke comprises of Two
Primary Processing Centers (PPC) at Amalapuram in East Godavari District (PPC1) and
Karlapalem in Guntur District (PPC2) along with the 9 Collection Centers (CC), one each in
the 9 coastal districts of the state of Andhra Pradesh. The Mega Food Park being developed in
55.65 Acres offers Preprocessing, Processing, Packaging & Storage along with transportation
facilities providing world class infrastructure and technology to the enterprises, both farmers
and processors engaged in the aqua food processing industry. Godavari Mega Aqua Food Park
will provide a platform and establish backward and forward linkages covering the entire aqua
food processing value chain, quality assurance, food safety and implementation of best
practices in post-harvest management. This shall make available the latest food processing
technologies to fish & shrimp farmers, companies, exporters and marketers through
international tie-ups. Located in heart of the most aqua production zone, the facility is
foreseen as the destination for sourcing food products for domestic and international markets
in future.
2.3.1.4. Infrastructure and Support Services
In the district, 45 Large scale Food and agro processing units were established with an
investment of ` 2368.49 crore and creating employment to 12,324 persons. There is
tremendous potential and scope to set up Food and Agro Processing Units in the district.
2.3.1.5. Identified Gaps in infrastructure and Support Services
Scope for establishment processing units of Rice Bran Oil, Cashew & Cashew Shell Oil,
Briquettes from agricultural waste units, Starch and ENA from maize units, cocoa, lime & fish,
etc.
 Cold storage units need to be set up for supporting food and agro processing sector.
 DIC may give special focus to popularize agro processing units.
36
 Producers are unorganized which is affecting the supply chain management and not
attracting any investment and technology into this sector. Raw material required to be
aggregated, contract farming to be encouraged and common facility centers like grading,
packing should be encouraged.
policy and promotional interventions, an amount of ` 42368.70 lakh has been estimated for
2019-20.
(` lakh)
S. Food & Agro processing Unit PLP 2019-20
No. Phy.units Fin. Outlay Bank Loan
1 Agro Processing – Small units Term No. 1650 8250.00 7425.00

loan
2 Agro Processing – Small units working No. 3300 8250.00 7425.00
capital
3 Agro Processing – Medium units Term No. 350 3500.00 3150.00
loan
4 Agro Processing – Medium units No. 700 3500.00 3150.00
working capital
5 Agro Processing – Large units Term No. 30 600.00 540.00
loan
6 Agro Processing –Large units working No. 60 600.00 540.00
capital
7 Milk processing plant (10,000 lpd) No. 7 2695.00 2425.00
8 Indi. milk products (100 lpd) No. 14 231.00 207.90
9 Egg processing plant No. 2 6500.00 5850.00
10 Cattle feed Plant (8 ton shift) No. 225 12375.00 9900.00
11 Poultry Feed plant No. 59 1475.00 1327.50
12 Cashewnut Processing No. 13 224.25 179.40
13 Fiber Board from Agro waste No. 13 74.75 59.80
14 Jaggery units No. 11 63.25 50.60
15 Maize processing No. 10 172.50 138.00
Total 48510.75 42368.70
2.3.1.6. Critical interventions required & actions points/issues to be addressed

 With a vast potential for development of agro-processing sector, there is a need to establish
Food Park to provide infrastructure facilities like power and water. Cold chain needs to be
developed in the district.
 Investor Meets need to be organised to attract investment in vegetable and fruits
processing sector, adopting IQF technology.
 Critical Infrastructure such as setting up of Food Park and upgrading airport to handle
cargo should be created.
 Access to credit for farmers as well as small and medium food processors is a key issue.
 Most of the processing units belong to the unorganized sector, where applications of food-
based laws for hygiene are not followed strictly. There is need for creation of awareness.
 Shortage in procurement and post-harvest storage facilities have led to inferior quality of
processed fruit and vegetables. High cost of packaging is an important factor for rise in
retail price of the processed food commodities.
 Investment in Agro & food processing sector did not commensurate with the large
potential available in the district and consequently, linkages between production,
marketing, post-harvest, processing and export have remained weak.
37
2.3.2: Agri Ancillary Activities- Others
Considering that price realization by farmers for most food crops like paddy, maize and
plantation crops, cashew nut, vegetables, etc., which are predominantly grown in the district
are subject to market fluctuations there is a need for providing produce loans or loans against
Negotiable Warehouse Receipts to farmers to prevent distress sale.
2.3.2.2. Present Status / recent policies, interventions / credit flow
NABARD has been extending support to producers’ organisations adopting a flexible approach
to meet the credit and other supporting needs of the producers. FPO works for the benefit of
the members and share portion of profits among the members.
2.3.2.3. Agri-Clinics & Agri-Business Centres Agri-Clinics (ACABC)
The GoI has been implementing a subsidy based Credit Linked Scheme for establishment of
ACABC. These can be taken up by technically qualified personnel as integrated units providing
not only extension services but also providing other support services like hiring / leasing of
farm implement and stocking and sale of inputs etc. for monetary considerations. Such units
can not only provide cost effective and timely professional services to rural client near their
farms but also offer self-employment opportunities to such persons who are technically
qualified but are unable to take up jobs due to dwindling employment opportunities in Govt.
/Public sector. Institutions like MANAGE may assist in identification of potential agriprenuers
and handholding them in setting up their own unit. Finance under ACABC scheme is classified
as priority sector finance under new priority sector guidelines.
2.3.2.4. NABARD Support to Producers Organizations
NABARD supported promotion of six FPOs through NGOs acting as POPIs in the district. The
membership of each FPO is around 500. The State Level Consultative Committee is a state
level forum to review the progress made by the FPOs and chalk out a road map for the FPOs
in the State. Regarding credit linkage of FPOs, in addition to existing banking network,
NABSAMRUDDHI, a subsidiary of NABARD will also be considering financing of FPOs.
2.3.2.5. PACS as Multi Services Centers
PACS being at the grass root level are a one-stop shop for the farmers. They play the role of
providing credit and credit `plus' service to the farmers. They are member-driven institutions
which serve small and marginal farmers. They being close to the farmers can play a greater
role in post-harvest services to facilitate remunerative prices to farmers. NABARD refinance
aims at enabling PACS to increase their business portfolio and turn them into self-sustainable
entities. Grant component of 5% of TFO is also eligible to be sanctioned under the scheme.
The refinance will be sanctioned on a project basis through the StcB. Project Monitoring Unit
was established at StCB for developing PACS as MSCs. For loans to POs/PACS, sanctioned by
cooperative bank, need based grant assistance on a case to case basis under PODF, provided
the same is recommended by the sanctioning bank.
2.3.2.6. Scope for FPO development
Govt. of AP has decided to organize farmers into FPOs to achieve aggregation of inputs,
dissemination of technology, Good Agricultural Practices, development of value chains and
establishment of market linkages to make agri-business a viable proposition.
policy and promotional interventions, an amount at ` 817.50 lakh has been estimated for
2019-20.
(` lakh)
Sl. Others Unit PLP 2019-20
1 Loans To Coop. Societies of Farmers Nos. 12 600.00 600.000
2 Agri-Clinics And Agri Business Centres Nos. 15 75.00 67.50
3 Loans To mfis For On-Lending Nos 15 150.00 150.00
Total 825.00 817.50
38
2.3.2.8. Infrastructure Available, critical gaps & interventions required

 With a good number of FPOs proposed to be promoted by State Government Departments,
banks may actively engage with these societies and extend both term loans and working
capital loans for taking up the activities by the FPOs.
 Strengthening of FPOs and leveraging the benefits of SFAC equity grant and credit
guarantee scheme for extending credit facilities.
 The banks need to sensitize their branch managers to encourage agricultural graduates in
setting up of agri clinics and agri business centers for providing last mile services to the
farmers.
Financing and Developing PACS

Primary Agricultural Credit Societies (PACS), being registered cooperative societies, have been providing
credit and other services to their members. PACS generally provide the following facilities to their
members: i. Input facilities in form of cash or kind component ii. Agriculture implements on hiring basis
iii. Storage facility It has been observed that although PACS are generally meeting out credit
requirements of their members, there is a need to provide other add on services to them. There is
therefore a critical need and scope for developing PACS as units which meet all the needs of farmers.
Units which both encourage and enable their farmer members strive towards better returns on
agricultural produce, adopt latest technology to increase agricultural production, use new technology &
High-Yielding Variety (HYV) seeds store their produce in a scientific way to minimise storage losses and
also provide pledge loan against this scientifically stored produce to bridge their credit gap. PACS can
play an important role in providing these facilities to the farmers. To increase the business portfolio of
PACS so as to make it a self-sustainable entity, it is essential that the PACS should provide additional
services like providing agriculture implements on hiring basis, enabling collective purchase of inputs,
have good quality storage capacity as per Negotiable Warehouse Receipt System, etc. In order to enable
PACS to provide more services to their members and generate income for themselves, an initiative has
been taken to develop PACS as Multi Service Centers. This will enable PACS to provide ancillary services
to their members and diversify their activities.
The ultimate objective is to convert the PACS into ‘One Stop Shop’ in West Godavari district. An amount
of ` 66 crores was sanctioned to 67 PACS for 96 projects. Mostly, they are Rural Godowns, RO Water
Plants, Petrol Bunks, Super bazar, credit facilities for gold loans, fertilisers, pesticides, fish feed, etc.
Farmers Producer Organisation (FPO)

A Producer Organisation (PO) is a legal entity formed by primary producers, viz. farmers, milk producers,
fishermen, weavers, rural artisans, craftsmen. A FPO can be a producer company, a cooperative society
or any other legal form which provides for sharing of profits/benefits among the members. In some forms
like producer companies, institutions of primary producers can also become member of FPO.
The main aim of PO is to ensure better income for the producers through an organization of their own.
Small producers do not have the volume individually (both inputs and produce) to get the benefit of
economies of scale. Besides, in agricultural marketing, there is a long chain of intermediaries who very
often work non-transparently leading to the situation where the producer receives only a small part of
the value that the ultimate consumer pays. Through aggregation, the primary producers can avail the
benefit of economies of scale. They will also have better bargaining power vis-à-vis the bulk buyers of
produce and bulk suppliers of inputs.
In West Godavari district, 6 FPOs were registered as Farmers Producers Companies. 4 FPOs are for
Horticulture farmers, 1 for agriculture farmers and 1 one marine fishermen. The district administration
has come forward to support the FPOs. The FPOs are serving the needs of the farmers and also earning
profit.
39
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 in the Indian economy over the last five decades. MSME not only play an
important role in providing large employment opportunities at comparatively lower capital
cost than larger industries but also help in industrialization of rural and backward areas,
thereby, reducing regional imbalances, assuring more equitable distribution of national
income and wealth
3.1.1. Present status of MSME in the district
MSMEs in the district are in Agriculture and Horticulture based resources, mineral based
resources and Aqua based resources. There are 5117 MSMEs established in the district with a
total investment of ` 1011.60 crore and generating employment to 50,867 persons.
3.1.2. Policies, interventions
 Small Industries Development Bank of India (SIDBI) has been established as the apex
institution for financing the MSME. Specific schemes have been designed for
implementation through SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc. Loans upto
` 5 lakhs are made available by the banks without insisting on collaterals.
 Pradhan Mantri MUDRA Yojana (PMMY) -Micro Units Development and Refinance
Agency (MUDRA) Bank 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 Bank has launched three loan instruments:(a) Shishu: covers loans
upto ` 50,000/- (b) Kishor: covers loans above ` 50,000/- and upto ` 5 lakh (c) Tarun:
covers loans above ` 5 lakh and upto `10 lakh
 Stand Up India - The objective of the Stand-Up India scheme is to facilitate bank loans
between ` 10 lakh and `1 crore to at least one SC or ST borrower and at least one Women
borrower per bank branch for setting up a new enterprise (also termed as Greenfield
enterprise)
 A composite loan limit of ` 1 crore can be sanctioned by banks to enable the MSME
entrepreneurs to meet their working capital and term loan requirement through Single
Window.
 Cluster based approach to lending is intended to provide a full-service approach to cater
to the diverse needs of the MSE sector which may be achieved through extending banking
services to recognized MSE clusters. The banks have, therefore, been advised to treat it as
a thrust area and increasingly adopt the same for SME financing.
 Chemicals, Glass, Food, Electrical, Metallurgical, Electronic, Textiles, Leather, sports
goods, etc. are some of the industries under SME sector. Retails traders, small road
transport operators, auto repair service, carpentry business, etc., are some of the service
sector activities under SME.
 The Industrial Development Policy 2015-20 of Andhra Pradesh aims to promote
manufacturing, enhance inclusivity, foster innovations and create employment
opportunities across sectors.
 Govt. of AP has identified 10 thrust areas for greater focus- Life sciences (including
pharmaceutical, biotechnology & medical equipment); Textile & Apparel; Electronics &
Information Technology; Aerospace & Defence; Automobiles & Auto Components;
Petroleum, Chemicals, (including Fertilizers) and Petrochemicals; Energy; Mineral based
industry; Leather and in Services Sector trade, hotel, restaurants, transportation, Housing,
Real estate are identified for having good potential.
 Setting up of APSSDC - Skilling people to meet industry requirements. emphasis will be
laid on skilling entrepreneurs of first generation, women, minorities, SC/ST and backward
class.
40
 For sector specific industries like apparel, food processing, biotech, automobile
VAT/CST/SGST concession may vary.
 Khadi & Handloom Sector – To bring vibrancy in Khadi and village industries the following
recommendations were made in Double digit growth GoAP document. Establishing
artisan parks – production cum sales outlets, sales huts, etc.; Govt. information cum sales
based Portal for weavers; Online portal for registration with their detailed profiles;
Technology driven e-commerce, to help small town communities and micro business
clusters based on trading skills; organized clusters/mega cluster to be shaped into
producer companies with end to end support from procuring raw material to marketing
produce.
3.1.3. Credit flow to MSME Sector during 2015-16, 2016-17 and 2017-18 was ` 78796.10,
` 100843.00 and ` 177616.59 lakh, respectively.
3.1.4. Assessment of potential for 2019-20
(` lakh)
Sl. MSME Unit PLP 2019-20
No. Phy.units Fin. Outlay Bank Loan
Manufacturing Sector - Term loan
1 Micro industries (` <5 lakh) No. 4500 20250.00 15187.50
2 Micro industries (` 5 to 25 lakh) No. 800 16000.00 12000.00
3 Small Industries (upto ` 500 lakh) No. 132 59400.00 44550.00
4 Medium industries (` 500 to 1000 No. 28 28000.00 25200.00
lakh)
Service Enterprises
1 Micro industries (` <2 lakh) No. 4650 20925.00 18832.50
2 Micro industries (` 5 to 25 lakh) No. 300 6000.00 5400.00
3 Small Industries (upto ` 200 lakh) No. 108 18900.00 17010.00
4 Medium industries (` 200 to 500 No. 75 33750.00 30375.00
lakh)
Other
1 MSME through MFIs No. 15 2250.00 2250.00
2 GCC/SCC/Weavers credit card No. 1000 650.00 520.00
3 Co-operatives of artisans, No. 30 375.00 375.00
village industries
Sub total 206500.00 17170.00
Manufacturing Sector - Working Capital
1 Micro industries nos 5100 11475.00 9180.00
2 Small Industries nos 4400 16500.00 13200.00
3 Medium industries nos 4500 27000.00 21600.00
4 Handloom nos 1025 3843.75 3075.00
5 KVI nos 52 195.00 156.00
6 R.Trade & Small business No. 2692 4038.00 3230.00
Sub total 63051.75 50441.40
Total MSME 269551.75 222141.40
41
3.1.5. Availability of Infrastructure, critical gaps, & interventions required

 Scope for establishment of industries in the following sectors: A. Food and Agro Based
Sector B. Aqua Based Sector. C. Mineral Based Sector and D. Textile Based Sector
 Existing Industrial Parks : APIIC developed 6 industrial parks with total extent of 126.68
acres at Palakol, Eluru, Tanuku, Bhimavaram. 1 private estate in Tanuku with extent of
9.5 acres. One at Autonagar, Eluru with extent of 54.54 acres is under development. Under
implementation Aqua Park : Mega Aqua Food Park, Tundurru (v), Bhimavaram.Proposed
new industrial parks : At (i) Ramasingavarm –Ac.193.84 cents; (ii) Dubachrla (v) –
Ac.102.51 cents (iii) Bayyaram & Tupakulagudem (v) – Ac.271.35 cents; (iv) Auto Nagar,
Tadepalligudem, C.Kondruprolu (v) – 20.00 acres; (v) Vatluru(v) – 35.00 acres.
 After bifurcation of Andhra Pradesh, land prices have been increased many folds. Land
availability to start new units/industries is a major constraint
 Industrial promotion activity can pick up in the district.
 As there is great demand for crochet laces within and outside the country, there is need to
provide working capital and arrange for their exhibition throughout the year in all major
commercial centers of our country.
 Banks need to extend finance to MSME sector and mitigate the risk by covering the
portfolio under CGTMSE.
 Banks may strive for improving ‘Entrepreneurial Sensitivity’ amongst the branch officials
for giving intended thrust to the MSME sector in view of ‘Make in India’ campaign initiated
by Govt. of India.
 The power supply is erratic, especially during summers. The situation needs to improve to
motivate more entrepreneurs to set up businesses in the district.
(For detailed paper on MSME visit https://www.nabard.org/info-centre-state-level-papers.aspx?

cid=700&id=698)
42
Chapter - 4
Credit Potential for Export Credit, Education and Housing
4.1. Credit Potential for Export Credit
4.1.1. Introduction
Export sector is an important sector on account of its advantages for the earnings in foreign
currency and its significant contribution to the economy. To give fillip to the sector, GoI has
also announced the Foreign Trade policy 2015-20 which is expected to give boost to India’s
exports. GoI has extended various incentives, rationalized the procedures and provided tax
benefits, from time to time. Now for the purpose of availing export credit, only three
documents viz., Bill of Lading/ Airway Bill, Commercial Invoice cum Packing List, Shipping
Bill/ Bill of Export are required.
4.1.2. Export Potential in the district
Paddy is the major crop of the district along with other crops being Maize, Pulses, Oilseeds,
Chillies and Tobacco. The major horticulture produce of the district are Mango, Oil Palm,
Coconut, Cashew, etc. Aquaculture production is being under taken in the area of 1050 ha.
Bhimavaram is a hub for prawn exports and it has been recognised as ‘town of export
excellence’ under the sea food category. Prawn and fish in good quantity are exported to Japan
and South Asian countries. Rice is being exported to South African countries.
4.1.3 Assessment of Credit Potential for 2019-20
level credit, infrastructure availability/gaps and projections have been estimated at `
120750.00lakh. The sector wise loan projections estimated for the year 2019-20 are given in
the table hereunder:
(` lakh)
S.No. Export Credit Unit PLP 2019-20
1 Pre Shipment / Packing Credit nos. 173 60550.00 60200.00
2 Post Shipment nos. 172 60200.00 60200.00
Total 120750.00 120750.00
A. Infrastructure available, critical gaps & interventions required

 Settling the Pre shipment credit within the stipulated time after the dispatch of goods or
converting them into Post Shipment credit may be ensured.
 Exporters may be encouraged to avail the export credit insurance facilities extended by
ECGC.
 Micro, Small and Medium Exporters should be properly trained by MSME / export
organizations with technical assistance from banks.
 The banks should put in place a control and reporting mechanism on export credit.
(For detailed paper on Export Credit visit https://www.nabard.org/info-centre-state-level-papers.aspx?

cid=700&id=698)
4.2. Credit Potential for Education

4.2.1.. Introduction
Education is undoubtedly a core sector and the long-term economic, social as well as personal
gains from education are well proved for individuals, families, communities and the
development of a nation. Education can truly lead to change in social environment, increased
employment, higher skill level, human resource development and reduction in poverty,
malnutrition & inequality. Unlike the earlier period, education now is seen as a vehicle for
“human capital formation”, industrial & technological progress, economic development of an
economy and improving the quality of life of people.
43
4.2.2. Objectives of the Scheme

According to revised RBI guidelines, Priority Sector Lending includes educational loans upto
` 10 lakh, including vocational courses. The GoI has launched a scheme to provide full interest
subsidy during the moratorium period of Education Loan
4.2.3. Scenario in West Godavari/recent policies, interventions
 There are 30 Engineering colleges, 3 Medical Colleges with a strength of around 26000
students. Further, there are 46 colleges providing MBA, MCA, Law and Pharmacy with a
strength of around 6000 students.
 The district has well established Higher Education Infrastructure including very premier
institutions. Premier institutions like NIT is functioning in the district and some more are
in the pipeline.
4.2.4. Assessment of potential for 2019-20
(` lakh)
S. PLP 2018-19
No Education Unit
Phy.Unis Fin. outlay Bank Loan
1 Loans for Professional education nos. 7100 42600.00 42600.00
(incl. all courses)
2 Loans for education –abroad nos. 59 708.00 708.00
studies
Total 43308.00 43308.00
4.2.5. Infrastructure available, critical gaps and interventions required

 Banks may keep in view the instructions issued by GoI/RBI/SLBC in regard to various
aspects of educational loans; Bankers may not insist on security for loans upto ` 4 lakh.
 Banks may also implement Central Scheme to provide Interest Subsidy (CSIS) which is
applicable to all eligible students who pursue technical and professional education in
India.
(For detailed paper on Education visit https://www.nabard.org/info-centre-state-level-papers.aspx?

cid=700&id=698)
4.3. Credit Potential for Housing
4.3.1. Introduction
The Ministry of Rural Development (MoRD), GoI has estimated that there is a shortage of
439.3 lakh houses in rural India during the XII Plan period. The MoRD, has formalized the
vision for Rural Housing as “Ensure adequate and affordable housing for all and, facilitate
development of sustainable and inclusive habitats in rural areas by expanding government
support, promoting community participation, self‐help and public‐private partnership within
the framework of Panchayati Raj”. In the Union Budget-2015, an allocation of ` 22,407 crore
was made for housing development in the country to realize the aim of 'Housing for All by
2022'.
The population of the West Godavari district as per 2011 census data, stood at 39.37 lakh
consisting of 31.28 lakh rural population and 8.09 lakh urban population. A good network of
roads and rail, proximity to Vijayawada and international airport at Gannavaram in Krishna
district, which is just 40 km away make the district a preferred location for residential and
large residential projects are coming up in the district. Apart from district headquarters, there
are 7 big towns in the district.
44
4.3.2. Housing Finance under priority Sector lending

 Loans to individuals upto ` 28 lakh in metropolitan centers (with population of ten lakh
and above) and loans upto ` 20 lakh in other centers for purchase/construction of a
dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan
center and at other centers should not exceed ` 35 lakh and ` 25 lakh, respectively.
 Loans for repairs to damaged dwelling units of families’ upto `one lakh in metropolitan
centers and upto ` 2 lakh in other centers.
 Banks loans to any government 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.
 The 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 ` 2
lakh per annum, irrespective of the location, is prescribed.
 Bank loans to Housing Financing Companies approved by NHB for their refinance, for on-
lending for the purpose of purchase/construction/reconstruction of individual dwelling
units or for slum clearance and rehabilitation of slum dwellers, subject to an aggregate
loan limit of ` 10 lakh per borrower.
4.3.3. Policy Initiatives taken by NABARD

NABARD besides existing refinance products introduced the following products:
Product Eligible Institutions

Direct loans for Rural Housing Scheduled StCBs, DCCBs, PACS, PUCBs, State
(loan only without grant) Housing Boards & Corporations.
Direct loans for Rural Housing DCCBs, PACS, PUCBs.
(loan cum grant assistance)
Composite loans for Rural Housing along DCCBs, PACS, PUCBs.
with Income Generating Activities
4.3.4. Assessment of Credit potential 2019-20

the projections have been estimated to ` 139950.00 lakh. The sub-sector wise loan projections
(` lakh)
Sl. Housing Unit PLP 2019-20
No.
1 Housing loans nos. 4750 104500.00 94050.00
2 Housing loans – Rural nos. 4500 49500.00 44550.00
3 Housing loans repairs nos. 750 1500.00 1350.00
Total 155500.00 139950.00
45
4.3.5. Infrastructure available, Critical gaps and Interventions required
 As per Census 2011, out of the total 11,08,965 Households in West Godavari district,
8,94,598 households in rural and 2,14,318 in urban area dwell in either semi-permanent
or total temporary houses.
 Under Govt. of AP Housing for all by 2022 policy in rural and urban areas the unit cost has
been increased to `1.00 lakh and `1.50 lakh for general and SC/ST categories respectively.
 Geo tagging of houses constructed under government schemes facilitating reduction in
delays and preventing misuse of funds.
 The lending of the banks has been mainly restricted to urban areas and the salaried class.
The housing needs of the rural people need to be addressed.
 Popularizing “Reverse mortgage” scheme under which a senior citizen owning a house can
avail of a monthly stream of income against mortgage of his /her house.
 APSHC may coordinate with Banks for identification and financing of rural housing loans.
 Rising land cost, spiraling construction costs, and inadequate availability and reach of
micro-finance measures are affecting the sector.
 Long gestation period of six to eight years of housing projects, accentuated by multiple
approvals to be obtained from multiple authorities in a two to three year time period needs
to be simplified.
 There is a need to address the issue of inadequate assistance for purchase of house‐sites as
well as streamline homestead plot provision through collaborative working of various
departments.
(For detailed paper on Housing visit https://www.nabard.org/info-centre-state-level-papers.aspx?

cid=700&id=698)
46
Chapter - 5
Credit Potential for Infrastructure
5.1. Infrastructure – Public Investments
5.1.1. Introduction
Infrastructure development has a key role to play in both economic growth and poverty
reduction. Rural Infrastructure today comprise of core infrastructure viz., Irrigation,
connectivity (road, power, IT), transportation, energy (generation, transmission,
distribution), post-harvest storage and social infrastructure viz., drinking water, sanitation,
sewerage, health, housing and education.
5.1.2. Infrastructure with Public Investment
The Socio-Economic Survey of GoAP covers irrigation, power, roads and buildings, transport,
airports, ports, communications, banking, tourism, information technology under the
'economic infrastructure' and education, public health, housing, sanitation, women
development and child welfare, social welfare, housing etc., under 'Social infrastructure'.
(i) Rural Infrastructure Development Fund
With the objective of assisting State Governments in the completion of ongoing rural
infrastructure projects and to take up new infrastructure projects, the Rural Infrastructure
Development Fund (RIDF) was set up with NABARD in 1995-96. The total corpus covering
RIDF I (1995-96) to XXIII (2017-18) is ` 3,13,876 crore. At present, 36 activities are eligible
for sanction under RIDF. As on 31 March 2018, ` 13,574.56 crore was sanctioned to Govt. of
AP for 16,992 different infrastructure projects such as roads and bridges, irrigation, drinking
water supply, education, animal husbandry, water harvesting, etc. The Govt. of AP had availed
an amount of ` 10238.11 crore as on 31.03.2018 for implementing the project sanctioned
under various tranches.
(ii) NABARD Warehousing Scheme
For our country, achieving food security has always remained one of the prime objectives.
Though the problem of low production has been largely solved, proper storage of the produce
has been a cause of concern till date. NABARD has formulated a scheme viz., NABARD
Warehousing Scheme 2013-14 (NWS) and WIF 2014-15 which envisages extension of loans to
Public and Private sectors for construction of warehouses, silos, cold storages and other cold
chain infrastructure.
(iii) Rural Infrastructure Promotion Fund (RIPF)
The objective of the fund is to support the activities required for promotional efforts for
conducting knowledge sharing workshops, creation of experimental infrastructure projects.
During the year 2017-18, NABARD has sanctioned grant assistance of ` 9.80 lakh to Smart
Andhra Pradesh Foundation under RIPF for setting up of 7 digital classrooms in 7 Govt.
School in 7 villages of Andhra Pradesh at last mile connectivity. ZP High School, Vellivenu
village from Undrajavaram mandal is one of the 7 schools benefited in West Godavari district.
(iv) NIDA (NABARD Infrastructure Development Assistance)
NABARD has recognized the need for providing flexible infrastructure financing and launched
NIDAfor this purpose. NIDA is designed to fund directly to State owned
institutions/corporations for creation of rural infrastructure outside the ambit of RIDF
borrowing.
(v) Long Term Irrigation Fund (LTIF)
A large number of major and medium irrigation projects taken up under AIBP were
languishing mainly due to inadequate provision of funds. A substantial amount of funds
already invested on these projects were locked up and benefits envisaged could not be
achieved. 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, announced creation of
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.
In AP, GoI has identified 8 irrigation projects for extending the financial support under LTIF.
A Memorandum of Agreement (MOA) was executed on 01 March 2017 amongst Govt. of AP,
47
NABARD, Ministry of Water Resources, River Development & Ganga Rejuvenation and
National Water Development Agency to facilitate credit facility under LTIF to meet the State
Government’s share amounting to ₹ 691.579 crore in respect of 7 projects for AIBP
components. Loan amount of ` 513.87 crore towards funding of state share for 5 projects
under LTIF was sanctioned. Cumulative amount of ` 488.34 crore pertaining to 4 projecs was
released so far. Out of which an amount of ` 391.439 crore was relased under LTIF during the
year 2017-18. Tadipudi LI project in the district was sanctioned a loan amount of ` 79.53
crores.
(vi) Micro Irrigation Fund (MIF)
Pradhan Mantri Krishi Sinchai Yojana (PMKSY) was launched in 2015-16 with an aim to
enhance physical access of water on farm, expand cultivable area under assured irrigation,
improve on farm water use efficiency, introduce sustainable water conservation practices etc.
It envisages ‘per drop more crop” as one of the objectives. With a view to provide impetus
to the micro irrigation, the Union Finance Minister, in his Budget Speech 2017-18, has
announced a dedicated Micro Irrigation Fund to be instituted with NABARD with an initial
corpus of ` 5000 crore for encouraging public and private investments in modern irrigation
methods such as sprinkler and drip irrigation as also water use enhancing practices to realize
the objective of per drop more crop. It is envisaged that the State Govts. will borrow loans from
NABARD from out of MIF for investments in irrigation efficiency improvement projects in
respective states. Govt. of AP has assessed the fund requirement under MIF ` 600 crore for
the year 2018-19.
5.1.3. Smart Village Smart Ward Programme
Smart Village Smart Ward (SVSW) is a programme launched by GoAP. The nodal department
for the programme is Planning Dept. Smart Andhra Pradesh Foundation (SAPF) is a Special
Purpose Vehicle set up by Govt. of Andhra Pradesh under the control of State Planning
Board.A smart village/ ward encompasses sustainable and inclusive development of all
sections of its community, so they enjoy a high standard of living the 100 percent achievement
of the following basic amenities. Outcome and services in a definite time frame is a non-
negotiable condition for moving towards Smart village Smart Ward. The 20 Non- Negotiables
identified for SVSW Programme are as under :
1. Homes for all with access to toilet safe drinking water and regular power
2. Every household had diversified livelihood opportunities and / or micro- enterprises
3. End open defection
4. SHGs and youth have access to skills development and village Enterprises Development
with bank and market linkages.
5. 100 percent institutional deliveries.
6. Has functional solid / liquid waste management system.
7. End all preventable maternal deaths and infant death.
8. Zero school dropouts of boys and girls upto 12th class.
9. Functional toilet, potable water, electricity available in Anganwadi centers, schools, health
centers, GP/Ward buildings.
10. Malnutrition free( Children below 09 years of age)
11. End girl- child marriages(girls below 18 years of age)
12. Every farm has soil health card enriched essential micro-nutrients and diversification with
livestock and tress.
13. Every village household has a functional bank account/PM Jan Dhan Bank Account.
14. GP/ Ward has its own dynamic development plan prepared by community participation.
15. Has green trees all over its geographic boundaries.
16. Has functional water conversation and harvesting structures.
17. Has functional information Centre, Computer lab and Mee seva Centre.
18. Has telecom / internet connectivity.
19. Gram sabha / ward are held four times a year with minimum two thirds attendance.
20. Has functional grievances redressal systems.
48
SVSW Prog.is driven by the partners who partner with the communities in achieving the
outcomes outlined in the prog.. The partners are NRIs, NGOs, Corporates, CSR arms of
Corporates, Individuals and Institutions. The location of the project and activities to be
undertaken are identified by the partners/donors. Once the proposals/projects finalized
Smart AP Foundation (SAPF) initiate the process of raising the resources from donors, CSR
funds, individual and other partner agencies. SAPF through State Level Committee of SVSW
Prog.approaching the State Government for gap funding.
GoAP encourage the partners by supporting them with the resources available under
SDF/RIDF under ‘Public Private Partnership’ on mission mode. GoAP provide matching grant
up to the extent of 50% of project/proposal cost by leveraging specific government funding
schemes, such as SDF/RIDF.State Level Committee of SAPF so far approved 149 projects with
cost estimate of ` 6034.61 lakh for implementation covering all the districts in the state.
Further, the Committee has sanctioned an amount of ₹ 3322.94 lakhs from SDFas matching
grant for the projects approved under SVSW Prog. The matching grant is ranging from 40 to
65% Govt. share. The balance amount of ` 2711.67 lakh received from partners/NRI donors.
The activities covered under SVSW prog. are village internal CC roads & drains, AI centers for
livestock improvement, school buildings and compound wall, public health infrastructure,
water harvesting pits for hand pumps, provision for cremation and burial ground, providing
electricity, functional toilets and potable water for Anganwadi Centres, solid waste
management unit, liquid waste management soak pit, RO Plants, 15W Solar Powered LED
street lights, Pay & Use toilets etc.
Out of 48 mandals of 908 Gram Panchayats 292 Gram Panchayats and out of 9 Municipalities
of 291 wards, 123 wards are adopted by the partners under SVSW in West Godavari district.
During the year 2017-18, NABARD has sanctioned grant assistance of ` 9.80 lakh to Smart
Andhra Pradesh Foundation under RIPF for setting up of 7 digital classrooms in 7 Govt. School
in 7 villages of Andhra Pradesh at last mile connectivity.
5.1.4. Infrastructure Indicators
The basic indicators in the district reveal the comparative status of the development of
infrastructure in the district vis-a-vis the State average. The indicators are categorised under
7 major heads and each component has been categorised as ‘A+’ (where the district indicator
is 100% or more compared to the state average), “A” (between 85% to 99.9%), ‘B’ (between
70% to 84.9%), ‘C’ (between 50% to 69.9%) & ‘D’ (less than 50%) depending upon the district’s
position vis-a-vis State Level.
S. No Infrastructure Component District State Category

1 Electricity1
a Per capita power consumption (in units)801 966 1003.00 A+
2 Transportation1
a Road density (of NH, R&B and PR roads) per 1000 sq. 972.81 791.53 A+
km.
b No of vehicles (registered vehicles of all types) per 82.78 48.36 A+
sq.km
c Villages connected by pucca roads 751
3 Irrigation1
a % Net Irrigated area to area under food crops 67.79 51.72 A+
b % Net Irrigated area irrigated through canals 47.54 34.70 A+
c % Net Irrigated area irrigated through tube wells 22.19 36.66 C
4 Education1
49
S. No Infrastructure Component District State Category

a Literacy rate 74.32 67.35 A+
b Literacy rate – Male 77.65 74.77 A+
c Literacy rate – Female 71.01 59.89 A+
5 Health
a Number of (Allopathic) Govt. hospitals in the district 0.48 0.58 B
per lakh of population
b Number of (Govt) Primary Health Centers in the 1.98 2.17 A+
district per lakh of population
c Number of beds (in Govt. hospitals) per lakh 41.35 58.67 B
population
6 Water Supply1
a Number of hand pumps in the district (per '000 8.7 3.97 A+
population)
b Number of protected water supply schemes in the 49.26 62.83 B
district (per '00000 population)
7 Agriculture Markets2
A No. of Agricultural Marketing Committees per district 18 14.17 A+
1-Statistical Abstract of Andhra Pradesh, 2015.2-Agricultural Marketing Department, GoAP
http://market.ap.nic.in/
RIDF – West Godavari status
In West Godavari, 1148 projects were sanctioned involving RIDF assistance of ` 104081.02
lakh as on 31 March 2018. The details of project-wise details in respect of the district, since
inception of RIDF are given below:
(` lakh)
Sr. Name of the Project details No. of RIDF
No. department Projects Loan
1 Animal Husbandry Dept. Veterinary Instns./Health 100 1798.28
centres
2 Agriculture University Research Institute 1 467.50
3 Horticulture University College, Research Institutes, 15 8644.74
KVK
4 Veterinary University Research Intitute 2 1087.15
5 Social Welfare Dept. Social Welfare Residential 3 3440.01
Schools
6 Comm. Intermediate Junior Colleges 41 1545.61
Education
7 Dept.Technical Education Polytechnic Colleges 2 1260.30
8 Forest Department Bio-diesel plantations 7 254.52
9 Forest Department Joint Forest Management 97 237.68
10 Forest Department SMC projects in forest lands 38 785.99
11 Fisheries Department Aqua labs, etc. 3 170.00
12 Girijan Corporation Storage Depots 3 120.83
13 Health & Medical Hospitals/Primary Health 14 2223.79
Department Centres
14 Health & Medical Community Health Centres 1 188.28
Department
15 AP Micro Irrigation Project DRIP & Micro irrigation 11 9955.79
16 Irrigation & Command Minor irrigation projects 5 6349.61
Area Devpt.
17 Irrigation & Command Major irrigation projects 3 1497.33
Area Devpt.
18 Irrigation & Command SMC projects in Forest lands 20 239.14
Area Devpt.
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Sr. Name of the Project details No. of RIDF

No. department Projects Loan
19 Panchayati Raj Dept. Bridge Projects 28 2105.66
20 Panchayati Raj Dept. Minor Irrigation Projects 49 27.65
21 Panchayati Raj Dept. Road Projects 195 13649.04
22 Panchayati Raj Dept. Rural Drinking Water Supply 66 4728.71
Projects
23 Panchayati Raj Dept. SMC Projects in Forest Lands 21 273.82
24 Road & Buildings Dept. Bridge projects 41 8026.96
25 Road & Buildings Dept. Road projects 120 15340.90
26 Rural Development Dept. Comprehensive Land Devpt. 26 2421.76
Prog.
27 Rural Development Dept. SMC projects in Community 17 760.00
Lands
28 Rural Development Dept. SMC projects in Forest Lands 6 135.84
29 Rural Development Dept. Watershed Devpt. Projects in 22 57.43
Community lands
30 Rural Development Dept. NTR Jalasiri 1 1360.27
31 Rural Water Supply & Rural Drinking Water Supply 6 2799.90
Sanitation projects
32 AP State Irrigation Devpt. Lift Irrigation projects 11 7056.23
Corporation
33 Social Welfare Engg. Dept. High Schools 49 1036.38
34 Tribal Welfare Engg. Dept. Ashram Schools 3 263.50
35 Tribal Welfare Engg. Dept. Road Projects 16 1322.68
36 Tribal Welfare Engg. Dept. Rural Drinking Water Supply 10 30.27
Projects
37 Tribal Welfare Engg. Dept. Tribal Welfare Residential 12 1457.75
Schools
38 Tribal Welfare Engg. Dept. Bridge Projects 1 48.00
39 Women Devpt. & Child Anganwadi Centres 82 911.72
Welfare
Total 1148 104081.02
The infrastructure projects funded under RIDF resulted in –

 Improved connectivity from Rural Areas to mandal headquarters resulting in improved
marketing facilities for agricultural produce.
 Improvement in education and health care facilities to the rural populace.
 Better health care for animals.
5.1.5. Sector-wise Critical Infrastructure Gaps Assessment

Sr. Sector Critical Infrastructure Gap Assessment
No.
1 Crop  (a) Setting up of soil-testing laboratories, to begin with, in each of the six
production, regions (b) Improving the post-harvest infrastructure for maize in mandals
maintenance & where the maize cultivations is sizeable. (c) Promotion of mini millet
marketing processing units in tribal and other regions.
2 Water  (a) Harnessing of groundwater for irrigation purposes through drip and
Resources sprinkler would improve the production and productivity under
horticulture and plantation crops. (b) Rejuvenation of existing MI tanks by
desilting would enhance their storage and percolation capacities. (c)
Energization of more number of irrigation pumpsets in the district.
51
Sr. Sector Critical Infrastructure Gap Assessment

No.
3 Plantation and
 (a) Promotion of Poly house technology for producing quality vegetables
Horticulture and flowers. (b) Due to height of oil palms, harvesting is a major problem.
Improved harvesting sickles with poles are being supplied to farmers. (c)
Construction of Sericulture rearing sheds, supply of rearing equipment,
supply of disinfectant, farm mechanization, etc. (d) Cold storages for
vegetables/fruits (e) Strengthening of horticulture nurseries
4 Animal  (a) Strengthening of infrastructure of veterinary institutions for providing
Husbandry breeding and health services to farmers at door-step. – Setting up of more
veterinary dispensaries, AI centers and diagnostic centers (b)
Strengthening of Veterinary Institutions
5 Fisheries  (a) Construction of landing harbors and jetties. (b) Setting up of Aqua labs.
6 Storage  (a) Increase storage capacity in AMCs / Setting up of new AMC godowns (b)
Godowns / Construction of godowns by PACS and accreditation of the same.
Market Yards
7 Food and Agro Identification of a few food processing clusters setting up a few crop-specific
Processing food processing plants.
8 Infrastructure Provision of ‘drip irrigation by gravity’ in the upland mandals – Laying of
in the upland pipeline to draw water, Construction of storage tanks to store water and
mandals providing drip irrigation. Setting up primary processing plants for certain
crops like Cashew, Mango, millets, etc.
5.2. Social infrastructure Involving Bank Credit (2019-20)

5.2.1. Introduction
The provision of drinking water, sanitation, education, and health defines the quality of life of
an individual. These services affect day-to-day life of people and have long-term impact in
terms of longevity and earning capacity. Piped drinking water, which is treated and
transported to households is an expensive commodity and more so in a sparsely populated
villages. However, villagers need good quality potable water as much as anyone else in the
country. Education of the young takes Centre stage for future growth. GoI through various
programme has strived to achieve ‘Education for All’. To keep the work force active and
contributing to the GDP, delivery of health care especially in the rural area has taken priority.
5.2.2. Current status/credit flow/recent policies, interventions
 As part of Smart Village initiatives Smart Andhra Foundation is identifying villages for
implementing the following priorities of Govt. of Andhra Pradesh (a) Anganwadi Centres
(b) Rural Drinking Water (c) Solid Waste Management and (d)Concrete roads in villages
(Rural Connectivity)
 Creation of social infrastructure was mainly in the domain of public investments. But,
growing population and the attendant demands for better educational, health care and
drinking facilities led to private investments in these sectors which led to establishment of
host of private educational institutions, hospitals, drinking water plants, etc.
Literacy % Education - No. of Health - No. per lakh of
students per college population
Total Male Femal Degre Junior Schoo Govt. PH, Beds in
e e College l Hospitals & Govt.
college Dispensarie Hospitals
s
State 67.35 74.77 59.89 646 251 106 2.17 0.58
District 74.32 77.65 77.01 810 250 127 1.98 0.48
 Though the above social infrastructure indicators for the district is comparable with that
of State as a whole, the district lags behind the state average no. of beds in Govt. hospitals.
 There are 477 villages in the districts which have high school within a distance of 2 to 5
kms and 1 village in the district which have high school in the distance more than 5 kms.
52
There are 121 villages in the districts which have junior college in the distance of more than
5 kms.
 Swatch Bharat drive has caught the attention of public at large and in the process
sanitation is gaining importance. The State Government has roped in the corporates and
other institutions to invest their CSR funds in construction of toilets in all the schools.
 Availability of safe drinking water is an important factor in improving the health
conditions of population in general and rural people in particular. There is a demand for
packaged water nowadays. Erection of water purifying plants using RO has considerable
demand.
5.2.3. Assessment of Credit Potential for 2019-20
 At present banks are extending loans to private individuals for establishment of schools,
hospitals, etc. for development of infrastructure, however, exposure to this sector is less.
 Some of the banks have even specific credit products like school+, Hospital+, etc., and are
extending credit to construction of new buildings to start new schools and purchase of
other infrastructure. Similarly, credit facility can also be extended for expansion of some
of the existing schools/hospitals, etc.
 Under Rural sanitation, in view of the financial support extended by State Government,
little potential exists under this activity.
 Keeping, therefore, the need to have some more schools/colleges/hospitals/water
purifying plants in the private sector.
 With the above assumptions, an amount at ` 3161.70 lakh has been estimated for credit
flow during 2019-20 as detailed below:
(` lakh)
No Phy.units Fin.outlay Bank loan
1 Construction of School buildings nos. 48 1440.00 1296.00
2 Construction of Hospital buildings nos. 31 1705.00 1534.50
3 Drinking Water (RO) Plant - 1000 nos. 46 368.00 331.20
lph)
Total 3513.00 3161.70
5.3. Renewable Energy

5.3.1. Introduction
The role of energy is invaluable in any country’s development and India is no exception.
Besides Hydel power, our country is mostly dependent on fossil fuels such as coal and crude
oil for electricity generaation which has led to high concentration of pollutants in the
atmosphere. In the above scenario, alternative sources of energy has become very important
and relevant to tady’s world. The alternative and renewable sources are grid-interactive
projects based on Wind Power, Bio-Power, Small Hydro powerand Solar power are
mainly private investment driven, with favourable tariff policy regimes established by State
Electricity Regulatory Commissions (SERC) and almost all renewable power capacity addition
during the year has come through this route.
The Jawaharlal Nehru National Solar Mission (JNNSM) established in 2010 has set an
ambitious target of installing 10,000 MW of solar power by 2017 and 20,000 MW by 2022. In
terms of solar energy installations in India, Andhra Pradesh ranks first with 21.8 MW installed
capacity.
There is enormous potential of biogas in India keeping in view the agricultural residues and
animal wastes. West Godavari offers scope for rice husk based projects as it has more than
900 rice mills in the district.
53
To meet the irrigation requirements of land holdings of small and marginal farmers, MNRE,
Govt. of India has launched a new scheme to promote installation of 10,000 water pumping
systems for irrigation purpose through solar power with subsidy. NEDCAP, GoAP and
DISCOMS are promoting installation of solar irrigation pumpsets by providing enhanced
subsidy to the farmers.
5.3.2. Current Status, recent policy interventions:

Govt. of AP Schemes:
i. New and Renewable Energy Development Corporation of AP (NREDCAP)
ii. Solar photovoltaic water pumping systems for irrigation purpose with subsidy of 89%
being provided for new connections. The NREDCAP and Discoms are working in unison
to implement the programme.
iii. Improved Chullah Programme
iv. Solar Energy Programme
v. Solar water heating system programme
vi. Swachh AP plan, chalked out a plan to convert municipal solid waste (MSW) into energy
vii. Setting up of Solar Rooftop Projects (SRP) for sale of electricity to Discom/captive use or
for self-consumption under Net Metering scheme –
Govt. of India Schemes :
i. National Biogas and Manure Management Programme (NBMMP)
ii. Capital Investment Subsidy Scheme for Solar home lighting systems is continued
during the year. A subsidy of around 40% on capital cost is available for models upto
300 Wp.
iii. The Scheme of Solar photovoltaic water pumping systems for irrigation purpose is
continued during 2016-17 under which back-ended credit linked subsidy is available
iv. NABARD provides assistance under RIDF for renewable energy projects viz.,
“Infrastructure works related with alternate sources of energy, viz., Solar, Wind etc.
and Energy Conservation” and “ 5/10 MW Solar Photovoltaic Power Plants”
5.3.3. Assessment of credit potential for 2019-20
(` lakh)
Sl. Renewable Energy Unit PLP 2019-20
1 Solar PV systems - On Grid 5 Kwp No. 77 539.00 377.30
2 Solar PV systems - Off Grid 1 Kwp No. 6600 9900.00 6930.00
3 Biogas No. 4400 968.00 580.80
4 Solar Pumpsets No. 215 1066.40 853.12
Total 12473.40 8741.22
5.3.4. Infrastructure available, critical gaps, & interventions required

 Promoting use of Solar energy based units have constraints like high capital cost, lack of
awareness of technology, etc.
54
 Need to motivate dairy farmers to set up bio-gas plants which would be an integral part of
their mini-dairy setup. Animal Husbandry Department could sensitize farmers on the
advantages of adopting this system.
 Raising cost of biomass, alternative uses of biomass, no increase in trariff rates despite
increase in cost of production are some of the reasons for slow progress in biomass based
power projects.
 Under the category of renewable energy sources are sun, wind, water, agricultural residue,
firewood and animal dung. SHGs members and NGOs need to encouraged in taking
renewable energy in large way.
 Non-availability of after sale services for solar home lighting/solar pumping system in the
district.
5.3.5. Suggestions
Government
6. Govt. Depts., NGOs and Social Entreprises need to focus on promotion of Solar Energy
in the State.
7. Government may encourage enterprenuers to establish after sale services for solar home
lighting/solar pumping system in the district.
8. Solar outlet companies to develop in- -house after sales, or tie up with RSETIs for trg
Banks
9. Banks need to actively finance Solar Energy projects in the district.
10. Sensitizing Branch Managers/field officersand their rural clients/customersabout the
advantages and benefits of solar home lighting solutions.
11. Banks may extend finance to roof top solar PV system as advised by Ministry of
Financial Services as a part of home loan component.
12. Banks may provide finance to enterprenuers to establish after sale services for solar
home lighting/solar pumping system in the district.
55
Chapter - 6
Informal Credit Delivery System

6.1. Introduction
Micro finance through informal credit delivery system has emerged as a vehicle for reaching
the financial services to the unreached. The SHG-Bank Linkage programme (SBLP) initiated
by NABARD in 1992 continues to be a dominant micro finance model in the country which
combines the flexibility, sensitivity and responsiveness of the informal credit system with the
strengths of technical, administrative capabilities and financial resources of the formal credit
institutions.
6.2. State initiatives

6.2.1. Vaddi Leni Runalu (VLR)
With a view to incentivize prompt payment, and to make the rural enterprises more
remunerative, Government of A.P started Pavala Vaddi scheme under which interest on all
Bank loans over and above 3% per annum was reimbursed directly to SHGs. From 2012, the
Pavala Vaddi scheme was converted into 'Vaddi Leni Runalu' under which total interest
reimbursement is being made by the Government for further strengthen the viability of
ruralenterprises. VLR is available upto a loan outstanding of ` 5.00 lakh per group.
6.2.2. Capital Infusion to SHGs- a special programme

The State is having around 90 lakh SHG members, out of which around 75 lakh SHG members
are active. The State Government has initiated a programme to infuse capital @ ` 10,000/-
each to these active members, which is existing as on March 2014. The capital infusion to be
credited to the savings bank account of SHGs along with the interest payable on their loans
with their banks to the respective loan accounts. The main motive behind the capital infusion
is to support SHG members to avail enhanced credit limits, through various economic
activities.
Under Interest Subvention Scheme for SHGs under NRLM, all women SHGs will be eligible
for interest subvention to avail credit upto `3 lakh at 7% per annum. Banks (PSBs, RRBS and
Cooperative Banks) will lend to all the women SHGs upfront at 7% interest per annum.
Women SHGs who will repay in time will get an additional subvention of 3%, reducing the
effective rate of interest to 4%. Government of Andhra Pradesh has an ongoing 4% interest
subvention scheme for loans issued to SHGs upto ` 5.00 lakh making the effective rate of
interest 'Nil“. Apart from that, under Stree Nidhi – a cooperative banks of SHGs, Government
is also extending financial support to SHG members. NABARD provides financial support by
way of grant for capacity building of partner agencies viz., NGOs, Bank and Govt. officials,
capacity building of SHG leaders/members through training / MEDPs, exposure visits to
banks / institutions pioneering in mF initiatives, field visits to nearby SHGs for banks, Govt.
officials, etc.
6.3. Status of Self Help Group – Bank Linkage Programme
The SHG movement took a firm root in the Andhra Pradesh with the implementation of World
Bank assisted poverty reduction project, VELUGU. Society for Elimination of Rural Poverty
(SERP), an autonomous body registered under the Societies Registration Act, has been
established for management of IKP through DRDAs at the district level. The state government
is making efforts to assist SHGs by providing revolving fund/ interest subsidy under various
programmes. DRDA is relentlessly working on a unique structure of community based
organization in the district by organizing rural women into 66,937 SHGs. The SHGs in the
district are federated in to 2184 Village Organizations (VOs) and are registered under MACS
Act. All 46 Mandal Samakhyas (MS) are working and federated into Zilla Samakhya (ZS), 240
Bank Mitras, 9 Area Coordinators, 9 DPMs, 46 APMs, 148 Community Coordinators and 2184
CAs are working under the supervision of DRDA.
56
55885 SHGs in the district have been credit linked and the outstanding amount in respect of
these SHGs stood at ` 175672.00 lakh as on 31 March 2018. The average credit outstanding
per SHG works out to ` 3.14 lakh. The recovery position of SHG has been reported to be
satisfactory.
6.4. Issues related to micro finance
The SHG portfolio is the major portfolio in rural bank branches in the district, the other being
crop loans. Further, with a view to providing flexibility in the operations of the loans, banks
have shifted the financing to SHG from Term loans to Cash Credit Limits. The strong network
of SERP/IKP/DRDA personnel in the district has contributed to the growing SHG loan
portfolio.
6.5. Asset Creation & Micro Enterprise Development
Given the higher amount of credit limits availed by SHGs, the focus should be on asset and
livelihood creation. The loan amount extended to SHGs though purpose neutral, reports
published by SERP indicate that the loans were used by the members for investment purposes
with nearly 37% of the loan amount having been used for dairy development, 17% for
agriculture and other allied activities, 20% for sheep/goat rearing, 13% for petty businesses
and the remaining 13% for other activities including consumption. This seems to be based on
the Micro credit plans.
6.6. Monitoring performance and repayment
Though the IKP has sound implementation strategies which inter alia include Community
Based Recovery Mechanism (CBRM) at bank branch level, institution of Bank Mitra, bank
linkage committees at federation level, etc. in certain mandals of the district the NPAs are
much higher than the accepted level. There is a need to strengthen especially CBRM at branch
level in the wake of growing concerns over the increasing overdues in respect of SHG lending.
6.7. Multiple lending
Multiple lending to a single borrower has been one of the important issues that should not be
lost sight of. Field level interactions indicate that apart from taking loan from the SHG, a rural
women is entitled to and availing of loan from Streenidhi, crop loan and term loans from
banks, MACTS, etc. DRDA may give preference to SHG members for supporting income
generating activities while sanctioning loans from Streenidhi.
6.8. Road map for the future
The roadmap for the future to take the robust SHG structure in the district to a higher
trajectory should focus on creation of assets by SHG members at individual level or group
level, increasing income levels by taking productive activities, strengthening recovery
mechanism, etc. The roadmap for extending the outreach and having a meaningful impact of
SHG-BLP may include the following:
• Identification of key activities for extending investment credit which can generate
continuous income plays major role while financing under government sponsored progs.
• Identification of potential activities for setting up of Micro Enterprises and motivating
members for taking up the activity, training and capacity building of identified SHG
members who are availing higher doses of finance under the programme.
• Identification of beneficiaries by involving Gram Sabhas, officials of financing branches
and concerned government department for extending credit will help in recovery of the
credit extended and also avoid misutilisation.
• Special schemes to revive dormant SHGs through effective capacity building and hand
holding support.
• Initiate additional financial literacy drive at the SHG level to eliminate over indebtedness
at the member-level.
• Focus on convergence of SHG-BLP and Financial Inclusion (FI) initiatives.
57
• Priority to shift from promotion of SHGs to provide livelihood opportunities to the SHG
members in a calibrated manner through skill building, production optimisation, value
chain facilitation and market linkage.
6.9. Financing through Joint Liability Groups (JLGs)

The JLG mode of financing serves as collateral substitute for loans provided to the small,
marginal, tenant farmers, oral lessees, share croppers, petty traders, etc. It enables the banks
to reach borrowers through group approach, adopt cluster approach, to facilitate peer
education and credit discipline. Hence, the banks in the district may increase their financing
to the small, marginal, tenant farmers, oral lessees and pretty traders through JLG mode of
financing.
6.10. Assessment of credit potential for 2019-20
(` lakh)
Phy units Financial outlay Bank Loan
1 Loans To SHGs nos. 29543 110786.25 110786.25
2 Loans to JLGs nos. 27700 96950.00 96950.00
Total 207736.25 207736.25
6.11. Joint mandal-wise details of potential available for promotion and savings
linkage of SHGs
(` lakh)
No. of
No. of
SHGs to
No. of SHGs to
Total Balance be
SHGs be
potential potential promote
Sl. Name of the savings promoted
for as on d&
No block linked on & savings
promotion 31-03- savings
31-03- linked
of SHGs 2018 linked
2018 during
during
2018-19
2019-20
1 Akiveedu 0 3987 0 10 10
2 Bhimadole 0 4642 0 10 10
3 Bhimavaram 0 4323 0 10 10
4 Jangareddygudem 0 4533 0 10 10
5 Chintalapudi 0 5962 0 10 10
6 Eluru 0 5655 0 10 10
7 Ganapavaram 0 3773 0 10 10
8 Gopalapuram 0 6942 0 10 10
9 Narsapuram 0 4580 0 10 10
10 Nidadavole 0 4454 0 10 10
11 Palakole 0 3900 0 10 10
12 Penumantra 0 5267 0 10 10
13 T.P.Gudem 0 5298 0 10 10
14 Tanuku 0 4545 0 10 10
District total 0 67861 0 140 140
58
6.12. Joint mandal-wise details of potential available for promotion and savings
linkage of SHGs
(` lakh)
No. of No. of SHGs to be
No. of SHGs No. of SHGs to be credit
Sl. SHGs credit linked during
Name of the credit linked linked during 2019-20
No savings 2018-19
Jt.Mandal as on 31 -3-
. linked on No. of No. of
2018 Amount Amount
31-3-2018 SHGs SHGs
1 Akiveedu 3987 3668 2099 5614.48 2025 7593.75
2 Bhimadole 4642 3156 1844 4574.07 2225 8343.75
3 Bhimavaram 4323 3991 2437 6934.35 2325 8718.75
4 Jangareddygudem 4533 3613 1627 3858.22 1800 6750.00
5 Chintalapudi 5962 5465 3380 9079.17 3350 12562.50
6 Eluru 5655 4335 2558 7409.75 2400 9000.00
7 Ganapavaram 3773 3170 1783 4998.19 1725 6468.75
8 Gopalapuram 6942 4575 2316 5927.31 2500 9375.00
9 Narsapuram 4580 4210 2593 7681.07 1900 7125.00
10 Nidadavole 4454 3347 1674 4928.22 1800 6750.00
11 Palakole 3900 3501 2371 7329.53 1600 6000.00
12 Penumantra 5267 4502 2921 8643.41 2001 7503.75
13 T.P.Gudem 5298 4230 2363 6970.11 1902 7132.50
14 Tanuku 4545 4122 2722 7311.23 1990 7462.50
District total 67861 55885 32688 91259.11 29543 110786.25
LIST OF JOINT MANDAL-WISE MANDALS OF WEST GODAVARI DISTRICT
Name of Joint Mandal Mandal Name of Joint Mandal Mandal
1. GOPALAPURAM
1. AKIVEEDU 2. DEVARAPALLI
01. AKIVEEDU 2. KALLA 08. GOPALAPURAM 3. TALLAPUDI
3. UNDI 4. KOYYALAGUDEM
5. POLAVARAM
1. BHIMADOLE 1. NARSAPUR
02. BHIMADOLE 2. DENDULURU 09. NARSAPUR 2. MOGALTHUR
3. DWARAKA TIRUMALA 3. YELAMANCHILI
1. BHIMAVARAM 1. NIDADAVOLE
03. BHIMAVARAM 2. PALAKODERU 10 NIDADAVOLE 2. CHAGALLU
3. VEERAVASARAM 3. KOVVUR
1. BUTTAIGUDEM
2. JANGAREDDYGUDEM 1. PALAKOLE
04. JANGAREDDYGUDEM 3. JEELUGUMILLI 11 PALAKOLE 2. ACHANTA
4. KUKUNURU 3. PODURU
5. YELURUPADU
1. CHINTALAPUDI 1. PENUMANTRA
05. CHINTALAPUDI 2. KAMAVARAPUKOTA 12. PENUMANTRA 2. PENUGONDA
3. T.NARSAPURAM 3. IRAGAVARAM
4. LINGAPALEM 4. ATTILI
1. ELURU 1. TADEPALLIGUDEM
06. ELURU 2. PEDAPADU 13. TADEPALLIGUDEM 2. UNGUTURU
3. PEDAVEGI 3. NALLAJERLA
1. GANAPAVARAM 1. TANUKU
07. GANAPAVARAM 2. PENTAPADU 14. TANUKU 2. UNDRAJAVARAM
3. NIDAMARRU 3. PERAVALI
59

NABARD West Godavari - PLP 19-20

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NABARD West Godavari - PLP 19-20

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PLP 2019-20 | West Godavari

1 Important Policies and Developments

Annexure I Activity-wise and Block-wise Physical and Financial Projections – 2019-20 60

1. Brief narration of the district.

2. Sectoral Trends in Credit Plan

3. Potential projects for 2019-20

4. Major Constraints and suggested action points

5. Development Initiatives having a bearing of flow of Credit.

6. Thrust Areas for 2019-20

6.2. Financing Tenant farmers

6.3 Accelerating pace of capital formation in agriculture & allied sector

6.4 Promotion of JLG

7. The Way Forward

BROAD SECTOR WISE PLP PROJECTIONS - 2019-20

PLP Projection 2019-20

Summary of Sector/Sub-Sector wise PLP Projections - 2019-20

Location, Demography, Topography, Socio-economic status, etc.: The district lies

Financial Literacy and Credit Councelling Centres (FLCCS)

Implementation of Social Security Schemes, DBT

Performance under Annual Credit Plan

Opening of new Branches/Banking Correspondents/Households

Methodology adopted for Preparation of Potential Linked Credit Plans

S No Sector Methodology of estimation of credit potential

Limitations and constraints

1.1 Policy Initiatives - Government of India

1.2 Policy Initiatives – Reserve Bank of India

 Revised guidelines on lending to Priority Sector for Primary (Urban) Co-operative

1.3 Policy Initiatives - NABARD

of 3 years (2017-18 to 2019-20). The Operational Guidelines were issued by GoI on 21

1.4 Government of India Sponsored Programmes with Bank Credit

1.5 Sustainable Agricultural Practices

1.5.3 Sustainable Agriculture Practices

1.6 Policy Initiatives – State Government

 GoAP is implementing two large industrial corridor projects - Visakhapatnam-Chennai

1.7 State Government Sponsored Programmes with Bank Credit

1.8 Sustainable Agriculture Practices in the State

1.8.2 Sustainable Agriculture Practices - Adaptation strategies for the State

2.1: Farm Credit

Category of farmers No. of holdings Area operated (ha) Average (ha)

2.1.1.5 Policies and Interventions:

S.No. Particulars Available Planned Gap

2.1.1.10. Availability and critical gaps in infrastructure:

2.1.1.11. Critical interventions required

2.1.1.12. Action points/issues to be addressed

 Coverage of SF/MF through institutional credit: Large numbers of marginal and

 Credit Guarantee Fund : Creation of a Credit Guarantee Fund as a confidence building

S.No. Water Resources Unit PLP 2019-20

2.1.2.4. Critical Intervention required for creating a definitive impact in the

2.1.3: Farm Mechanisation

2.1.3.2. Current status/credit flow/recent policies and interventions:

2.1.3.3. Assessment of credit potential for the period 2019-20

agriculture machinery. Exhibitions and demonstrations are held to sensitize farmers on

2.1.3.4. Suggested Action Points –

2.1.4.3. Infrastructure and linkage support available, planned and gaps

 The major interventions of the department of Horticulture includes 1) extend technical

coordinating the Research on all aspects of Oil palm conservation, improvement,

2.1.4.4. GoI/GoAP interventions for promotion of Horticulture Sector in the

2.1.4.5. Assessment of credit potential for 2019-20

Tribal Development Programme (Maa Thota Programme)

Based on the successful experience of Adivasi Development Programme, NABARD

2.1.5. Forestry and Waste Land Development

2.1.5.3. Infrastructure, linkage support & interventions

2.1.5.5. Critical Interventions under taken / required