planning.tripura.gov.in · Web viewOf the two major sources of power generation, gas based thermal power accounts for 93% while remaining 7% is generated from hydel power (Gomati

State Focus Paper 2018-19Tripura


National Bank for Agriculture and Rural DevelopmentTripura Regional Office


Agartala


Foreword

The Financial Year 2018-19 will start amidst formidable challenges, especially ‘Doubling the Farmers’ Income by 2022.While we may or may not need a doctor, a scientist, an engineer, a banker, a politician or others in our lifetime, but we definitely need a farmer at least three times a day. With this objective in view, we need to give priority attention to (i) irrigation with focus on water use efficiency ‘per drop more crop’, (ii) quality seeds and soil health card, (iii) investment in infrastructure relating to warehousing and cold storages, (iv) value addition to agri produce through food processing, (v) linking all regulated markets to e-NAM portal for better price discovery and ensuring remunerative prices to farmers, (vi) Fasal Bima Yojana to enhance risk resilience of farmers and (vii) enhancing income through allied activities like dairy, poultry, fishery, horticulture, plantation, bee keeping etc. Smaller size of landholdings deprive the farmers to reap the benefits of economies of scale both in the purchase of farm inputs as well as sale of marketable surplus, which outlines the need for aggregation of inputs and marketable produce at the farmers’ level through farmers’ collectives like Farmers’ Producers Organization. Development of scientific warehousing is essential so that these godowns get WDRA’s accreditation for issuance of Negotiable Warehousing Receipts and farmers can keep their produce in these godowns, obtain NWRS and get interim money through pledge financing. This will avoid distress sale of agri produce and enable the farmers to get good prices after getting 3-4 months cushion time to sale. NWRs also enable the farmers to trade in commodity exchanges.

2. Govt. of India, in the Union Budget 2017-18, continued to initiate various measures for the Agri-rural-socio-economic-banking development of the country. These efforts are supported by various steps of the Government of Tripura in its Budget for 2017-18 aimed at development of the State and well being of its people. Further, in tune with GoI's target to enhance Agriculture credit to Rs.10 lakh crore through Banking Sector in the country during 2017-18, a credit potential of Rs.4429.78 crore for 2018-19 (an increase of 14.18% over 2017-18) has been projected for the State of Tripura in this State Focus Paper (SFP). SFP is the aggregation of Potential Linked Credit Plans prepared for all 8 districts of the State for various activities under Priority Sector.

3. The threat of climate change is real and we have to adopt appropriate adaptation and mitigation measures to build a climate resilient and climate smart agriculture, which is the mainstay of all economic activities in Tripura and which contributes 32.36% to the State GDP.

4. I am happy to place the State Focus Paper for the year 2018-19 in the hands of all the stakeholders in their efforts to develop the State of Tripura. I sincerely acknowledge and appreciate the support and excellent cooperation extended by providing necessary information, data and other inputs by the line Departments of Government of Tripura, Reserve Bank of India, SLBC, Banks, NGOs, Corporates, KVKs, Farmers and others in shaping this document.

5. I trust that the 'State Focus Paper 2018-19' will be useful to the policy planners, banks and other stake holders.


(Sunil Kumar)General Manager / Officer-in-charge01 January 2018

Index

Chapters ContentsPage No.

Executive Summary 1 - 13Broad Sector wise Base PLP Projections 2018-19 14

Sector wise PLP projections of credit potential 2018-19 15

1 State Profile 16 - 282 Banking Profile 29 – 50

3 NABARD’s perception on the State’s development perspective 51 – 68

4 Potential credit outlay 69 – 115

5 Infrastructure Planning116 – 131

6 Area Based schemes132 – 157

7 Doubling of farmers’ Income by 2022158 – 165

8 Skill India Scheme166 – 169

9 Climate Change170 – 182

10 Water Conservation ‘Per drop, more crop’183 - 191

Annexures 192


Annexure I, IA

District wise, Sector wise PLP projections193 - 202

Annexure II Agency wise broad Sector wise Ground Level Credit 203

Annexure III

Critical Infrastructure support to be provided 204

Annexure IV

Critical interventions required in various sectors/sub-sectors 205 -206

List of Abbreviations 207Details of NABARD DDMs & DDM(R) 208

Executive Summary1. IntroductionThe State Focus Paper (SFP) 2018-19 presents a comprehensive picture of the credit potential estimated in various sectors of the rural economy as reflected in the Potential Linked Credit Plans (PLPs) prepared by NABARD for all the 8 districts of the state of Tripura, ratified by District Level Consultative Committees of the respective districts and State Level Bankers’ Committee. The document also highlights the National/State priorities as well as constraints and issues pertaining to different sectors, suggestions for improving infrastructure support system and adoption of appropriate technology which will result in augmented credit flow for achieving better inclusive growth for the state. The document presents a broad framework for taking forward the development initiatives of the state as well as institutional financial system for proper deployment of resources with specific focus on “Doubling of Farmers’ income by 2022”.

2. State ProfileBesides being the 3rd smallest State in the country in terms of area, 84% of the State is surrounded by Bangladesh, thus limiting the movement to other parts of the country. However, the State is blessed with good rainfall (normal rainfall being 2200 mm per annum), abundant ground water, fertile soil, extremely rich bio-diversity etc. Some of the important


highlights/USPs of the State’s climatic/demographic and economic profile are as under:

a) There is one agro climatic zone i.e. Mild Tropical Plain Zone (Code 127) in the State.

b) Out of the total population of 36,73,917 (as per 2011 census), the SC and ST population constituted 17.8% and 31.75% respectively. The population density of Tripura in 2011 was 350 persons per km2, as against the All India Population density of 324. The sex ratio had improved from 948 (per 1000 males) in 2001 to 961 in 2011.

c) One of the positive features of the State is high literacy. The liter-acy rate had increased from 60.44% in 1991 to 73.20% in 2001 and further to 87.22% in 2011. The corresponding figures for males and females were 91.5% and 82.7% respectively in 2011. The gap in male-female ratio in the literacy has been reduced to 8.8% in 2011 as against 17.01% in 2001. The literacy rate amongst SC & ST pop-ulation was 89.45% & 79.05% respectively. The state achieved a high level of literacy and ranked third at all India level after Kerala and Mizoram in 2011.

d) As regards poverty, the State fared better compared to other States. The poverty rate, for the state as a whole, improved from 40.6% (37.2% all India) in 2004-05 to 14.05% (21.9% all India) dur-ing 2011-12.

e) 60% of the total Geographical Area is covered by forests and only 27% of land is available for agriculture. The cropping intensity dur-ing 2014-15 stood at 189%.

f) The average size of the land holding decreased from 1.25 ha from 1976-77 to 0.97 ha in 1990-91 to 0.56 ha in 2001 and further to 0.49 ha (3.04 kani) in 2011, as against the all India average of 1.16 ha.(Agri. Census 2010-11). The share of SF/MF in total holdings was 95% against national average of 85.01%. About 75% area of to-tal land holdings was operated by the SF/MF.

g) One of the disturbing factors is reduction in number of cultivators and agricultural labourers over the years. While the percentage of cultivators had come down from 38.09% (of the total workers) in 1991 and 26.88% in 2001 to 22.9% during 2011, that of agricul-tural labourers (out of total workers) had come down from 25.7% and 24.03% to 18.74% during the reference period.


h) The annual run off in the State from the 6 rivers viz., Gomati, Howrah, Dhalai, Muhuri, Feni and Juri which originate/run through the State is estimated at 7,61,600 hectare metre, of which 1,50,800 ha/m can be harnessed for irrigation purposes. Out of the total es-timated irrigation potential of 1,40,383 ha, the total irrigation po-tential created, as on 31.03.2015 stood at 1,12,806 ha of which the net potential utilised was 77,930 ha.

i) Of the two major sources of power generation, gas based thermal power accounts for 93% while remaining 7% is generated from hy-del power (Gomati Power Project). The Unit-I of Palatana power project, a gas based thermal power project, has since been commis-sioned by OTPC (ONGC Tripura Power Corporation) Tripura. The Project, with an initial production capacity of 726.6 MW, is one of the biggest projects in NER and is expected to stimulate economic growth of the region.

j) The need for basic infrastructure is immense on account of the geo-graphical location as well as underdeveloped infrastructure. The State is isolated within the country and needs modern and reliable methods of communication and transport facilities to remain con-nected with the rest of the country, and particularly with trade centres such as Kolkata and Guwahati. So far, NH44 is the lifeline for the state and introduction of two long distance trains namely Rajdhani Express and Tripur Sundari Express connecting Agartala to New Delhi is the silver line in the otherwise distressed scenario. Doubling of rail tracks and access to Akhaura & Sabroom and thereby access to the port city of Chittagong in Bangladesh, has the potential to alter the economic scenario of the State. So far road connectivity is the only dependable/reliable means of communica-tion.

k) About 65% of population of Tripura is dependent on agriculture. Small and marginal farmers constitute 95 percent of the total farm-ers in the state compared to 78 percent in the country. Sixty per-cent of the geographical area is forest covered and only about 27 percent is available for cultivation. Rice alone contributes 96 % of the total food grain/cereals production. The rich agro climatic con-dition, fertile soils and abundant rainfall in the State offer immense potential for production of a number of tropical and sub-tropical fruits and vegetables. Fisheries and Animal Husbandry are the other promising sectors. Bamboo, tea, rubber based industries and


agro based food processing industrial units have good potential for development of Micro and Small Enterprise (MSE) sector.

l) Despite various constraints, the growth rate of GDP of the State im-proved steadily and stood impressively @ 9.2% during 2014-15 as against the all India growth rate of 7.24%. Further, the percentage of Agriculture and Allied Sector of the State to total GSDP during 2014-15 @32.36% was higher than all India figure of 17.6%.

m)Agriculture: Agriculture and allied activities occupy an important place in the State's economy. As regards cropping pattern, parallel farming systems, viz., (i) shifting cultivation or jhum in the hill slopes and (ii) settled farming cultivation in the plains, are in vogue. Paddy is the predominant crop in both the systems. The pro-ductivity of Paddy @2903 kg/ha during 2014-15 was higher than all India. Implementation of Agriculture Perspective Plan in 2000-01, led to a few significant achievements in agriculture, which include (i) increase in area under assured irrigation from 52,197 ha in 2000-01 to 1,13,597 ha in 2014-15, (ii) increased food grains pro-duction from 6.12 lakh tons during 2004-05 to 8.23 lakh tons dur-ing 2015-16, (iii) reducing the gap between food grains require-ment and production from 1.54 lakh tons to 1.11 lakh ton during the reference period, (iv) increase in the flow of institutional credit to crop loans from Rs.15.15 crore during 2004-05 to Rs. 267.95 crore during 2015-16.

n) Plantation & Horticulture: The rich agro climatic conditions, fer-tile soils & abundant rainfall offer immense potential for production of a number of tropical and sub-tropical fruits and vegetables in the State. The major fruits & vegetable crops grown in the State are Pineapple, Orange, Banana, Litchi, Mango, Cashewnut, Coconut, Chillies, Betelvine, Potato, variety of summer and winter vegeta-bles, Ginger, Black Pepper etc. The State plans to bring 4400 ha under Horticulture plantation during 2017-18.

o) Animal Husbandry: While Tripura has made significant progress in the development of animal resources, particularly in egg and meat production, still, the per capita availability of milk (@101.03 gr) and eggs (52 Nos) in the State was low when compared to na-tional average.

p) Fisheries: Fish is an important constituent of daily diet of more than 95% of the population of the state. During the last decade, the


state has become one of the surplus fish seed producing state. Keeping in view the nutritional gap, the state has successfully implemented a perspective plan for fish production and continues its focus for sustainability. With the total fish production at 64780 MT during 2014-15, the per capita availability of fish from local production had increased to 17.50 kg in 2014-15 against 17.0 kg in 2013-14.

q) Industry, Trade & Services: The State is industrially backward due to geographical isolation as well as poor road/ rail connectivity with the mainland of India. Under non-agricultural establishments, Retail Trade is the major activity of the State, which constitute 45% of non-agricultural establishments, followed by manufacturing (18.28%), transport (7.7%), education (7.25%) and other community & personal services (6.32%). Bamboo, Tea, Rubber based industries and Food Processing have good potential for the industrial development.

3. Banking Sector

(a) As on 31.03.2017, the institutional credit is purveyed in the State through 31 Commercial Banks (CBs), one Regional Rural Bank (Tripura Gramin Bank (TGB)), one State Cooperative Bank (TSCB), 268 Primary Agriculture Credit Societies (PACS)/LAMPS, one State Cooperative Agriculture and Rural Development Bank (TCARDB) and one Urban Cooperative Bank. The branch network in the State increased from 425 as on 31.03.2014 to 496 as on 31.03.2016, and further to 508 as on 31.3.2017 improving per branch population from 8,645 to 7,969 and further to 7232 during the reference period. Of the total branches, 269 branches (53%) were in rural areas, 131 branches (26%) were situated in semi-urban areas and the rest 108 branches (21%) in urban areas.

(b) Deposits

The aggregate deposits of all banks in the State stood at Rs.22,341.99 crore registering a growth of 19.32% during 2016-17. The shares of Commercial Banks, TGB and TSCB in the total deposits were 63.09%, 25.81% and 11.10% respectively. The growth rate of deposits of the TGB (16.26%) was better as compared to that of Cooperatives (13.02%) and CBs (4.73%).


(C) Loans Outstanding

The total loans outstanding as on 31 March 2017 stood at Rs.9586.33 crore for all agencies registering a growth rate of 13.92%. The average per branch advances outstanding as on 31.03.2017 were Rs. 18.87 crore.

(d) Credit Deposit Ratio

The overall CD ratio in the State, though not satisfactory, has steadily improved from 38% as on 31 March 2014 to 41% as on 31.03.2015 and to 45% as on 31.03.2016, as against the national average of 78%. The ratio, however, declined to 43% as on 31.3.2017 due to unprecedented growth in deposits due to demonetization. Further, the CD ratio was highly skewed across the districts, ranging from 32% in West Tripura district to 85% in Gomati district.

(e) Performance under Annual Credit Plan

The performance of the banks under Priority Sector as per Annual Credit Plan (ACP) 2016-17 was satisfactory, with an overall achievement of 126% of the target. While the disbursement to Agriculture (124%) and MSME (141%) sectors exceeded the target fixed, the achievement in respect of Other Priority Sector was subdued at 104% vis-à-vis Agriculture and MSME. Under Primary sector, the achievement under Agriculture Term Loans was impressive @260.48% of the target fixed.

(g) NPAs: The gross NPA position of all banks in the State which was 6.18% as on 31 March 2010 was improved marginally to 5.82% as on 31 March 2016 and further to 5.64% as on 31 March 2017.

(h) TCARDB: The financial health of the Tripura Cooperative Agriculture and Rural development Bank (TCARDB) is poor and is not in position to cater to the long term needs of the rural populace, primarily due its poor recovery position, resulting in strain on other rural financial institutions. Its poor recovery position coupled with huge accumulated losses has rendered it ineligible to draw refinance from NABARD.

(i) Strengthening Financial Institutions: In order to strengthen the Financial Institutions across the country, the GoI, in the Budget 2017-18, initiated various measures which include, (i) infusion of Rs.10,000 crore capital into state-run banks in 2017-18, (ii) Creation of Payment Regulatory Board, (iii) Allowable provision for NPAs from 7.5% to 8.5%,


(iv) Tax on receipts only on actual receipt (non on accrual) for NPA accounts of all non-scheduled cooperative banks, etc.

(j) Demonetisation: With a view to curb (i) corruption, (ii) counterfeiting, (iii) use of high denomination notes for terrorist activities and (iv) accumulation of black money generated by income that has not been declared to the tax authorities, Govt of India, on 08 November 2016, announced a historic measure, with profound implications for the economy, of demonetizing Rs. 500 and Rs.1000 denomination Specified Bank Notes (SBN) and advocated less-cash and digitized economy. Restrictions were placed on the convertibility of domestic money and bank deposits.

(k) Less-cash and Digitized economy: To reduce the dependence on cash for transactions, RBI had initiated a few steps viz., Digital Payment Gateways, Speed of Transactions, Customer Education, Improving Accessibility, Improving Digital Security, Fraud Reporting, etc. Further, in order to propagate less-cash transactions in the State, NABARD extends financial assistance to banks for (i) for conduct of digital Financial Literacy Awareness Programmes (dFLAPs), (ii) For implementation of Core Banking Solution in TGB and TSCB, (iii) for setting up Solar powered V-Sat connectivity to Kiosk/ Fixed CSPs in the grey areas & Sub Service Areas having connectivity issues, (iv) for Issuance of EMV (Europay, Mastercard and Visacard) chip based RuPay Kisan Cards, (v) for organising Financial Literacy Awareness Programmes (FLAPs) in schools for creating awareness about cashless/digital transactions, (vi) for purchase of micro ATMs, (vii) for deployment of PoS Terminals in Tier 5 and Tier 6 Centres, (viii) for engagement of SHG Leaders/ Members as BC Agents for Financial Inclusion - Bank Sakhi Approach, (ix) monthly commission paid to BCAs to Tripura Gramin Bank, (x) capacity building of BCs/BFs and (ii) examination fees for BCs/BFs of Banks, etc.

(l) Union Budget 2017-18In the Union Budget 2017-18, Govt. of India, continued to initiate various measures for the Agri-rural-socio-economic-banking development. Especially, for the development of North Eastern Region, an overall amount of Rs.43,245 crores have been allocated across all ministries, as against Rs.32,180 crores (Revised Estimates) during 2016-17. The agenda of GoI for the year 2017-18 would be ‘Transform, Energise and Clean India' (TEC India). The agenda of TEC India seeks to (i) Transform


the quality of governance and quality of our people, (ii) Energise various sections of the society, especially the youth and the vulnerable and enable them to unleash their true potential and (iii) Clean the country from the evils of corruption, black money and non-transparent political funding. Further, the Budget proposals are built on under 10 distinct themes viz., (i) Doubling of Farmers' Income by 2022, (ii) Providing employment and basic infrastructure to Rural Populace, (iii) Energising the youth through education, skills and jobs, (iv) Strengthening the systems of social security, health care and affordable housing to poor and under-privileged, (v) Infrastructure for efficiency, productivity and quality of life, (vi) Financial Sector growth and stability through stronger institutions, (vii) Digital Economy for speed, accountability and transparency, (viii) Public service: effective governance and efficient service delivery through people's participation, (ix) Prudent Fiscal Management to ensure optimal deployment of resources and preserve fiscal stability and (x) Tax Administration honouring the honest.

(m) Jan Dhan se Jan Suraksha:

To service the PMJDY accounts and also in order to reach out the social benefits of banking and insurance and pension to the vast section of the society, Govt. of India envisaged 3 products viz. Pradhan Mantri Suraksha Bima Yojana(PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana(APY). The above schemes were made operational from 01 June 2015. The total enrolment under these three schemes for the State of Tripura, as on 31.3.2017, was 5,41,904.

(n) Self Help Groups: Financing of Self Help Groups has been accepted as a cost effective mechanism by banks for expanding their outreach to the poor. As on 31 December 2017, out of 39,679 SHGs savings linked, as many as 33,559 SHGs were credit linked to the tune of Rs.134.49 crore. Savings and credit linkage by TGB accounted for about 45.39% and 42.42% respectively of the total SHGs in the state. The GoI’s WSHG programme is in operation of Dhalai and West Tripura districts of the State. Further, in tune with Government of India’s Mission for creating a “Digital India”, NABARD has launched a Project called “EShakti” for digitization of SHGs. The data in respect of 400 WSHGs in West Tripura, as on 31.01.2017 has since been uploaded on to a dedicated portal ‘[email protected]’ and data updation through mobile uploads is in progress. The ongoing data will be uploaded on to portal periodically on real time basis. In the third phase, Gomati districts is being taken up for


digitization of SHGs where about 1000 SHGs have been promoted and nurtured under NRLM.

(o) Joint Liability Groups: The concept of JLG financing is gaining momentum in the State. As on 31.9.2017, as many as 8794 JLGs have been financed by TGB and TSCB to the tune of Rs.113.00 crore. There is vast potential to tap by the banks to finance through JLG mode. The distinguishing feature of JLG financial is that recovery is to the tune of 98% and all JLGs are farm based groups. This enables financing of crop loan where land records are issues and share croppers, tenant farmers and landless people are financed for pursing income generating activities on the strength of mutual guarantee.

(p) Farmer Clubs: The farmers’ clubs are considered to be the ex-tended arms of the Bank branches and they act as bridge between the farmers and banks. Vibrant farmers clubs not only help branches in bor-rower appraisal but also help in recovery of loans. The members of Farm-ers clubs can be used as Business facilitators and promoters of SHGs and JLGs in their villages for tapping business potentials. The members of farmers clubs can be motivated to adopt technology through exposure visits which in turn is expected in off take of credit for hi-tech agriculture leading further to creation of Producers’ Organizations (POs). While as many as 331 farmers clubs have so far been established in the State with NABARD’s support, the success of farmers club largely depends on the taking over the ownership of the programme by the bank branches, their constant dialogue and rapport with Club members.

The data regarding operational Farmers’ Clubs are being digitized on ex-clusive e-portal “kishaksarathi.com:.

4. Development Perspectives

(a) Agriculture Growth : Though the State is making concerted efforts to build manufacturing and services sectors as well, with as many as 10 Designated Food Parks identified in the State to further industrialization, still, in the near future, agriculture will continue to be the major sector on whose growth the State’s economy will largely depend. Of the many reasons, the livelihood is the most important. Various reasons viz., large area under forests, only 27% of the land being available for cultivation, increasing population, very small operational holdings, poor capacity of the farmers, etc., make agriculture development a challenge in the State. Without development of agriculture, industries cannot flourish. The production and productivity of a few crops (especially Paddy) in the state


has increased over the years, mainly due to the implementation of the Perspective Plan 2000-01. Reducing incidence of poverty, increasing incomes, reducing income disparities and maximizing opportunities for sustainable employment, are at the core of development strategy. It is often said, surest way of inclusive growth is accelerating agriculture growth! As is said elsewhere, while we may or may not need a doctor, a scientist, an engineer, a banker, a politician and others in our lifetime, but we definitely need a farmer at least three times a day. Hence, no matter what the statistics says, agriculture sector still remains relevant everywhere, more so in Tripura.

(b) Investments: Investments in and for agriculture by both Public and Private sector will be crucial for development. In order to make agriculture a profitable proposition, Government of Tripura had made conscious efforts in the past and made sizeable investment in various sectors viz., irrigation, power, agriculture, etc. Similarly, agriculture lending by the banking sector has increased rapidly in volumes during the last 7 years. Especially, during the last five years, the CAGR in agriculture lending was 28.4%. However, the average credit per hectare in the State is the lowest in the country, suggesting vast scope for financing by the banks.

(c) Indebtedness: The latest survey results of the National Sample Survey (NSS) 70th round reveals that (i) the Average Value of Assets of the rural households in Tripura was observed to be the least in India at Rs. 2,78,635 as against the all India average of Rs.10,06,985 and North East average of Rs. 6,36,515. (ii) incidence of indebtedness in the State @4.73% was lowest when compared to the states in mainland (all India 46%) and second lowest in North East, the lowest being Nagaland (@2.83%), (iii) average amount of debt (AOD) per household was negligible in the State (Rs.386 for cultivators and Rs.3,677 all categories put together) as against the all India level AOD of Rs.70,580, suggesting that indebtedness in Tripura State is highly comfortable from the bankers’ point of view, (iv) average amount of Debt per household with outstanding Loan (AODL), @ Rs. 8,168 in respect of rural cultivator household and @ Rs. 36,912 in respect of rural non-cultivators was the lowest in India, (v) lowest Debt Asset Ratio of the State at 0.07% in respect of rural cultivators, as against the all India average of 2.46%, indicating lesser risk to deal with and higher borrowing capacity of the households, (vi) the average value of assets for the rural households in land and buildings forming about 85% (others being livestock 2.8%,


transport equipment 3.5%, bank deposits 6.9%, farm business equipment 0.97%, non-farm business equipment 0.57%) showing good scope for asset creation under livestock, poultry, farm business equipment, transport equipment, etc.

(d) Means and Ways to accelerate investments in agriculture in the state

There could be number of reasons for low institutional credit viz., declin-ing farm size, incidences of NPAs, inadequate extension mechanism in various fields, inadequate flow of technology to the door-steps of farmers, inadequate infrastructure, etc. Still they need to be sorted out. A few ways to increase the investments in agriculture could be as under:

(i) Banking plans for the Area Based Schemes: To make the credit planning exercise simpler for the banks, as a part of this paper, a few illustrative projects/investment activities which can help to give re-quired boost to the ATL financing have been identified in the PLPs. These projects are designed to meet the localised investment needs or to leverage on the existing infrastructure/ public investment or on sub-sidies. The advantages of such area based projects (vis-a-vis sporadic individual projects) are in terms of scale/volumes for finance, bringing in all stakeholders on a common platform, possibilities of tie-ups and hence better prospects for repayment. This approach is a supplemen-tary measure and is in addition to the usual ‘walk in business’. These Area Based Schemes could be converted into Banking Plans with sup-port from the District Development Manager of NABARD. If monitored in the DLCC, these projects can form good investment avenues. These include projects for dairy development, homestead farming, fisheries, etc.

(ii) Encouraging TSCB and TGB: The support of TSCB and TGB for in-vestment Finance for agriculture is not in proportion to their presence in the rural areas. In order to cross subsidise their funds, concessional refinance @4.5% for ST SAO and 4.65% for Long Term Refinance dur-ing the year 2017-18 was made available to them. It is expected that the scheme of concessional refinance would continue during 2018-19 also.

(iii) Support Services: For enhanced productivity of credit, financial sector initiatives must be harmonized with the real sector initiatives. Merely enhancing the flow of credit without proper support services will not yield the expected results. Support services including infra-


structure, storage, processing, marketing, regulatory mechanisms for ensuring quality of inputs and reorienting extension services to en-hance the impact of credit need to be put in place. In order to improve rural infrastructure, the State Govt. may avail higher financial assis-tance from RIDF. It is not enough to ensure credit growth but it should lead to desired impact on ground.

(e) NABARD’s assistance: During the last five years, the total assis-tance from NABARD which has gone into the state works out to as Rs. 1957.02 crore and it has been consistently on the rise. Besides, the non-financial assistance from NABARD to the State include (i) Institutional Development, (ii) Self Help Groups, (iii) Joint Liability Groups, (iv) WADIs, (v) Farmers Clubs, (vi) Exposure visits through CAT programme, (vii) transfer of technology, (viii) financial inclusion and financial literacy measures, (ix) grants for digital transactions, etc.

(f) Building up suitable infrastructure coupled with appropriate technology and scientific management practices will contribute substantially to higher productivity of agriculture as well as allied agriculture sector. A few ‘Special Funds’ viz., (i) Food Processing Fund, (ii) PRODUCE Fund, (iii) Long Term Irrigation Fund, (iv) Micro Irrigation Fund, (v) Dairy Processing and Infrastructure Fund, have been set up in NABARD for providing affordable credit for various infrastructure works. These funds when properly utilised by both State Govt and individual entrepreneurs, would definitely lead to higher productivity and growth of agriculture and allied sector.

5. Assessment of Credit Potential

The State Focus Paper has estimated total credit potential of Rs. 4,429.78 crore for 2018-19 as against Rs.3879.45 crore for 2017-18, an increase of 14.18% over last year. Of this, the estimate for various broad sectors include Rs. 2258.60 crore for Farm Credit, Rs. 47.10 crore for agriculture infrastructure, Rs. 33.07 crore for ancillary activities, Rs. 1336.20 crore for MSME, Rs. 116.06 crore for Education, Rs.1.95 crore for Export Credit, Rs. 506.18 crore Housing, Rs. 7.36 crore for Renewable Energy, Rs.116.28 crore for others including SHG/JLG/OD under PMJDY etc., and Rs.6.95 crore for Social Infrastructure. Under Farm Credit, the estimates included Rs.1634.89 crore for Crop Loans, Rs.7.99 crore for Water Resources, Rs.33.61 crore for Farm Mechanisation, Rs.129.23 crore for Plantation and Horticulture, Rs. 4.34 crore for Forestry and Wasteland Development, Rs.134.62 crore for Dairy


Development, Rs. 100.26 crore for Poultry Development, Rs. 96.26 crore for Sheep, Goat, Piggery Development, Rs.112.73 crore for Fisheries Development and Rs.4.64 crore for other activities. The issues and suggested points emanated for reaching the above credit potential have been discussed under sectoral chapters.

6. Infrastructure Development:

Infrastructural investments in transport, power, irrigation, hydroelectric works, scientific research and training, markets and warehousing, com-munications and informatics, education, health and family welfare play a strategic, but indirect role in the development process. It makes a signifi-cant contribution towards growth by increasing the productivity of land, labour and capital in the production process. The 14th Finance Commis-sion, recommended special focus for North Eastern States, particularly in terms of social and economic infrastructure with inter-state significance, especially in view of (a) low level of economic activity and the consequen-tial low revenue capacity; (b) the disability arising from large forest cover and hilly terrain; (c) remoteness; (d) infrastructure deficit; (e) interna-tional borders and the law and order problems due to persistent insur-gency; (f) high level of expenditures on public administration and police, relative to the overall gross state domestic product (GSDP) of the States and the large proportion of government employment in total employment, (g) high dependence on the resource flows from the Union Government, both for balancing their revenue account and for capital investment, etc. Accordingly, the GoI, in the Budget 2017-18 has made an allocation of an overall amount of Rs.43,245 crore (Rs.32,180 crore 2016-17) across all ministries to North East. However, as this allocation may be insufficient for overall infrastructure development, the State Govt. may avail higher financial assistance under NABARD’s Rural Infrastructure Development Fund (RIDF). As on 31.03.2017, as many as 2034 projects, covering vari-ous activities, have been sanctioned by NABARD to Government of Tripura under RIDF involving a total loan assistance of Rs. 1,963.11 crore, of which an amount of Rs. 1447.63 crore was disbursed to the State Govt. However, there is too much concentration on Rural Connec-tivity (>80%) sector. There is an urgent need to diversify to new areas/activities, especially Agriculture Sector.

a) Further, there are a number of areas where investments have taken place, but the full benefit of the investment could not be reaped, because the final lap has not been completed or envisaged earlier. Such types of investments which when completed will provide the last mile


connectivity or will serve as the vital link are called as critical infrastruc-ture. The major critical infrastructure identified under various sectors are highlighted in Annexure IV. The State Govt. may complete these crit-ical infrastructure.

7. Area Based Schemes:

One of the important requirements for sustaining the growth rate in agriculture is to increase the investment or capital formation in agriculture. Hence, in order to reinforce the importance of capital formation, a total potential of ` 623.71 crore has been identified for investment in agriculture term loans. While there are several ways by which this potential can be tapped by the bankers and other concerned, one method by which positive results can be assured is to implement the schemes on an area based approach. The various advantages of Area Based Approach would include (i) Capitalizing the existing infrastructure, (ii) better Coordination with stakeholders, (iii) Advantages of Scale, (iv) Multiplier effect, etc. In view of the several advantages pointed out above, in implementing schemes on an area based approach, this paper has identified some of the activities that are best suited for such implementation. The Potential Linked Plans of the districts have identified 4 major activities viz., Dairy development, homestead farming, fisheries, backyard poultry, under which model plans have been prepared for implementation on a small scale for the purpose of demonstration.

Unit Cost for farm sector investment activities have been prepared by NABARD for 2018-19 and taken as the basis for estimating the potential under Farm Sector for various activities.

8. Summing up

(a) A development perspective, focused on three essential components of growth viz., investments, infrastructure and institutions (financial and non-financial) has been built up in the context of investment planning for agriculture and rural sector in the State. All the three aspects are closely related and if linked meaningfully, can give the necessary impetus to investments. Therefore, an attempt has been made to find ways and means to converge on infrastructure and leverage on ground level institutions to help farmers to improve their production capabilities, get more incomes and enhance quality of life.

(b) RIDF as a funding mechanism for creation of rural infrastructure has a 20 years history now. The idea was to give a boost to public investment in agriculture, though the resources were found elsewhere, not in the


budget. Resources which were to be put in the agriculture sector through the banking channel (private) were rerouted through the public investment channel. It is therefore essential to try and find ways to ensure that the desired ‘enabling effect’ is taking place on ground and the investments under RIDF create the required thrust for future investments. It is also necessary to ascertain whether the investments are contributing to reduced risk, better access to market, better prices for agricultural produce.

(c) The available data/indicators suggest that in the space of term lending, unlike some States in the main land, Tripura has not reached a stage where the banks have to be worried about over indebtedness or excess leveraging on the agriculture incomes or existing assets. On the contrary, the consistent rate of growth of agriculture and substantial improvement in the volumes of rural deposits are such indicators which could be built into business strategy suitably by the banks to increase their lending business. Considering that nearly half of the branches of commercial banks are rural, finding business within agriculture is inevitable. In pushing investments through Banks, the genuine concerns of the banks and the farmers need to be addressed to make the lending successful. There are issues relating to viability of term lending and incidence of NPAs, inadequate staff strength at the branch level, need for building up their appraisal capabilities. These however, can be overcome.

(d) NABARD has been able put to together Area based Projects / model schemes in all the 8 districts in the State. These could be converted into Banking Plans with support from the District Development Manager of NABARD. If monitored in the DLCC, these projects can form good investment avenues. Training and capacity building issues can also be quickly resolved and NABARD would be able to help in this regard. The ground level institutions promoted by NABARD like the Farmers Clubs, SHGs, JLGs, Farmers’ Producers organizations can support Banks’ efforts to find business, find good borrowers, and understand the local economy and constraints within. They can also help in enabling aggregations, accessing financial and non-financial services in a cost-effective and more transparent manner for better impact of investments. A number of interventions are taking place in the State, by NABARD and many other institutions towards creating awareness, exposure to better management practices and thereby creating technology absorption capacity which is vital for famers’ investment decisions. Upscaling these will have the desired impact on successful investments.


(e) Anchor agencies need to be found / created which will take the necessary steps to create the linkages from farm to markets. Investments which are bundled with such non financial services on large scale is the need of the hour. End to end tie ups will help better incomes greater repayment capacity and hence better recycling of loans. The State Government, Banks and NABARD are working in their own way and also in partnerships. This perspective, hopefully, will generate ideas for further collaborations and concrete platforms.


State Credit Plan Projections 2018-19

TRIPURA STATE (` in Lakh)

Sr. Sector/Activity Financial Pro-jections

A Farm Credit

iCrop Production, Maintenance and Marketing 1,63,489.75

iiTerm Loan for Agriculture and Allied Activities 62,370.31

Sub Total : 2,25,860.06B Agriculture Infrastructure 4,710.36C Ancillary activities 3,307.02I Total Agriculture (A+B+C) 2,33,877.44

IIMicro, Small and Medium Enter-prises 1,33,620.94

III Export Credit 195.00IV Education 11,606.55V Housing 50,618.83VI Renewable Energy 736.10VII Others 11,628.69

VIIISocial Infrastructure involving bank credit 695.40

Total Priority Sector (I to VIII) 4,42,978.95


SUMMARY OF SECTOR-WISE STATE CFEDIT PLAN PROJECTIONS – 2018-19


(` lakh)

Sr. No. Sector Amount

I Credit Potential for AgricultureA Farm Credit

i Crop Production, Maintenance and Marketing 1,63,489.75ii Water Resources 799.42

iii Farm Mechanization 3,361.55iv Plantation & Horticulture 12,923.55v Forestry & Wasteland Development 434.18

vi AH-Dairy Development 13,462.05vii AH-Poultry Farming 10,026.41

viii AH-Sheep / Goat and Piggery Development 9,626.02ix Fisheries Development 11,273.08x Other Activities 464.05

Sub Total: 2,25,860.06B Agriculture Infrastructure

i Construction of Storage facilities 958.80ii Land Development, including Vermi Compost 3,751.56

Sub Total: 4,710.36C Ancillary Activities

i Food & Agro Processing/others 3,307.02Sub Total: 3,307.02

Total Agriculture 2,33,877.44II Micro, Small and Medium Enterprises

i MSME – Working Capital 24,060.19ii MSME – Investment Credit 1,09,560.75

Total MSME 1,33,620.94III Export Credit 195.00IV Education 11,606.55V Housing 50,618.83VI Renewable Energy 736.10

VIIOthers (Loans to SHGs/JLGs, loans to distressed persons to prepay non-institutional lenders, PMJDY, loans to State sponsored organizations for SC/ST)

11,628.69

VIII Social Infrastructure involving bank credit 695.40Total Priority Sector 4,42,978.95


Map of Tripura



Chapter 1STATE PROFILE

Tripura is the third smallest State of the Country located in the South-West extreme corner of the North Eastern (NE) Region of the country. After independence, the erstwhile princely State of Tripura got merged with the Indian Union on 15th October 1949. It became a Union Territory without a legislature with effect from November 1, 1956 and a popular ministry was installed in Tripura on July 1, 1963. It became a full-fledged State on the 21st January, 1972.

1.1. Physiography of Tripura State(i) The state is situated between the geographical coordinates of 22 degrees 56 minutes north and 24 degrees 32 minutes north latitude and 91 degrees and 92 degrees 22 minutes east longitude. It shares its borders with the country of Bangladesh (84%) and the states of Mizoram (10.8%) and Assam (5.2%). The state of Tripura is marked by distinct geographical features. The prominent hill ranges of the State are Jampui, Sakhantang, Longtharai, Atharamura, Baramura, Deotamura, Belkum and Kalajhari. Betling Shib (939 meters), situated in the Jampui Range, is the highest peak of Tripura. The important forest products include Sal, Teak, Gamai, Gurjan and Champa. Bamboo is available in the State abundantly, and is traditionally being used for variety of purposes by the tribal people.

(ii) It has an area of 10,491.69 sq. km. It has diverse range of topo-graphy, people, flora and fauna. Local flora and fauna bear a very close affinity and resemblance with floral and faunal components of Indo-Malayan and Indo-Chinese sub-regions. The State is located in the bio-geographic zone of 9B-North-East hills and possesses an extremely rich bio-diversity. There are 379-species of trees, 320-shrubs, 581-herbs, 165-climbers, 16-climbing shrubs, 35-ferns, 45-epiphytes and 4-parasites. Rare plants of Tripura have been put to 18 numbers. There are 266 spe-cies of medicinal plants in the State (68-trees, 39-shrubs, 71-herbs and 88-climbers). There are 90 mammal species in Tripura and in the aquatic ecosystem, 47 species of fish have been found.

1. 2. Administrative Set-up

At present, there are 8 districts (Dhalai, Gomati, Khowai, North Tripura, Sepahijala, South Tripura, Unakoti and West Tripura), 23 Sub-Divisions, 58 Blocks, one Tripura Tribal Areas Autonomous District Council


(TTAADC) {created under the Sixth Schedule of the Constitution}, 595 Panchayats, 878 revenue villages and 527 TTAADC villages.

1. 3. Demographic features

3.1. The population of Tripura as per 2011 census was 36,73,917, of which 18,74,376 were males and 17,99,541 females. Tripura ranks 18th at all India level in terms of density of population. Among the north-eastern states, Tripura remained the second highest populous State after Assam. The population density of Tripura in 2011 was 350 persons per sq. km., as against the All India population density of 324. The sex ratio at 961 (per 1000 males) improved from 948 in 2001.

3.2. The population of Tripura is characterized by social diversity. As per 2011 Census, the ST population (11,66,813) constituted 31.75% and SC population (6,54,918) constituted 17.8% of the total population of the State.

3.3. The literacy rate for Tripura in 2011 was 87.22% for the population of age of 7 years and above, as against 73.20% in 2001 and 60.44% in 1991. The corresponding figures for males and females were 91.5% and 82.7% respectively in 2011. The gap in male-female ratio in the literacy has been reduced to 8.8% in 2011 as against 17.01% in 2001. Further, as per the recent study conducted by the Indian Statistical Institute (ISI), Kolkata, the literacy rate stands at 95.16% in 2013. The literacy rate amongst SC & ST population was 89.45% & 79.05% respectively. The state achieved a high level of literacy and ranked third at all India level after Kerala and Mizoram in 2011.

3.4. The other demographic features include (i) estimated birth rate @13.7 per thousand (as against 21.4% all India), (ii) Death rate of popu-lation @4.7 per thousand population (7.0 all India), (iii) Infant mortality rate @ 26 per thousand as against 40 all India, (iv) Life expectancy at birth for males and females 71 & 74 (61 & 62.5 all India). As regards poverty, the State fared better compared to other States as indicated in the following table:

Table: 1.1. Poverty Ratio (as per Tendulkar Methodology)Year Rural Urban Total

2004-05 Tripura 44.50 22.50 40.60All India 41.80 25.70 37.20


2011-12 Tripura 16.53 7.42 14.05All India 25.70 13.70 21.90

Some of the poverty alleviation programmes, which are being implemen-ted in the State are Mahatma Gandhi Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Gram Sadak Yojana (PMGSY), Prime Min-ister’s Awas Yojna, Sampoorna Grameen Rozgar Yojana (SGRY), Valmiki Ambedkar Awas Yojana (VAMBAY), Total Sanitation Campaign (TSC), In-tegrated Wastelands Development Programme (IWDP), Swajaldhara, Tripura Urban Employment Programme (TUEP), NABARD's WADI, WSHG, Spring-shed based watersheds. etc.

1. 4. Occupational pattern (Census 2011)As per 2011 Census, there were 14,69,521 workers in the State, including 11,59,561 (78.91%) main workers and 3,09,960 (21.09%) marginal workers. The composition of the main workers during the last 3 census was as under:

Table 1.2: Classification of main workers.

S.No Type of workers % of workers as per Census1991 2001 2011

1 Cultivators 38.09 26.88 22.902 Agricultural labourers 25.70 24.03 18.743 Manufacturing, Processing,

Service, etc1.42 2.90 1.79

4 Others 34.79 46.19 56.56Total 100 100 100

It is a matter of concern that the proportion of cultivators and Agri-labourers amongst the main workers in the State has decreased over the last 3 decades. The work participation rate in the State stood at 39.99% in 2011 as against 36.2% in 2001 and 31.1% in 1991. Further, the work participation rate among rural population was 41.14% against 36.76% in urban population. Skills of marginal workers need to be improved in the State to generate sustainable employment opportunities.

1. 5. Agro-climatic Zones, Soil type and Rainfall PatternThe details of Agro Climatic Zone, soil type, crops grown are indicated in the following table:

Table: 1.3: Details of Agro Climatic Zone, soil types, etc


District Agro Climatic

Zone

Major Soils Crops grown

Dhalai Mild Tropical Plain Zone code No – 127

Inceptisols, Entisol, Ultisols,

Paddy (Aus & Aman), Vegetables (Kharif & Rabi), Pineapple, Banana,

Gomati ..do.. Inceptisols, Entisol, Ultisols,

Rice (Aman & Boro), Vegetables (Kharif & Rabi), Pineapple, Mango, Banana, Cashewnut, Coconut

Khowai ..do.. Inceptisols, Ultisols, Alfisols

Paddy (Aman & Boro), Vegetables (Kharif & Rabi), Pineapple, Mango, Banana, coconut

North Tripura

..do.. Inceptisols, Entisol, Ultisols,

Paddy (Aus & Aman), Vegetables (Kharif & Rabi), Pineapple, Banana, Arecanut

Sepahijala ..do.. Inceptisols, Ultisols, Alfisols


South Tripura

..do.. Inceptisols, Entisol, Ultisols,

Paddy (Aman & Boro), Vegetables (Kharif & Rabi), Pineapple, Mango, Banana, Cashewnut, Coconut

Unakoti ..do.. Inceptisols, Entisol, Ultisols,

Paddy (Aus & Aman), Vegetables (Kharif & Rabi), Pineapple, Banana, Arecanut

West Tripura

..do.. Inceptisols, Ultisols, Alfisols


Normal annual rainfall of 2242 mm in the State. The actual rainfall was 1951.8 mm, 1870.1 mm and 2193.2 mm during 2014, 2015 and 2016 respectively and in 2017, it has crossed 3200 mm.

1.6. Land utilisation pattern The land use pattern during 2014-15 was as under:

Table: 1.4. Details of Land Use PatternS.

No.Item Area (ha)

1 Total Geographical Area 10,49,1692 Forest Area 6,29,426


3 Land not available for agricultural use 1,45,3894 Land under miscellaneous tree crops & groves and

not included in net sown area 11,695

5 Permanent pastures and other grazing land 1,3456 Culturable waste land 3,0207 Current fallow 1,1508 Fallow land other than current fallow 1,7159 Net cropped area 2,55,360

10 Gross cropped area 4,83,48811 Cropping intensity 189%

1.7. Land Holdings PatternThe details of land holdings in the state, as per the agriculture census 2010-11 were as under:

Table: 1.5. Land holdingsS.

No. Size of holding (ha) Total holdingsNumber Area (ha)

1 Below 0.5 4,05,150 71,7542 0.5 - 1.0 93,904 67,9463 1.0 - 2.0 55,043 75,8094 2.0 - 3.0 18,188 42,8475 3.0 - 4.0 3,356 11,4186 4.0 - 5.0 1,760 7,7767 5.0 - 7.5 845 4,9008 7.5 - 10.0 147 1,2679 10.0 & above 172 2,456

10 Total 5,78,565 2,86,173

The average size of the holding decreased from 1.25 ha from 1976-77 to 0.97 ha in 1990-91 to 0.56 ha in 2001 and further to 0.49 ha in 2011, as against the all India average of 1.16 ha (Agri. Census 2010-11). The share of MF/SF in total holdings was 95% against national average of 85.01%. As much as 75.31% area of total land holdings was operated by SF/MF.

1.8. Water availability for Irrigation

(i) The availability of both surface water and ground water is good in the State. The surface water is available from the major rivers viz., Gomati, Howrah, Dhalai, Muhuri, Feni and Juri, which swell in monsoon but become shallow during the rest of the year. As regards ground water, the position is as under:

The semi-consolidated Tertiary formations form the main hydrogeological unit of the State. The semi-consolidated formations can be further subdivided into three principal zones. The first one is confined to central part of Agartala-Udaipur, Khowai-Amarpur, Ambasa, Kailashahar,


Kumarghat and Dharama Nagar syncline valley; where the yield prospects are good. West of Tripura, artesian belt has been delineated and the yield of such wells are found to be in the order of 1 to 3 m3/hr. High autoflow discharge of 54 m3/hr was observed in Khowai valley. The second zone is confined to unconfined aquifers of moderate regional extent with yield prospect of 50-100 m3/hr. This zone extends bordering the hill ranges i.e. the marginal part of Agartala-Udaipur, Khowai-Amarpur, Kamapur-Ambasa, Kailasahar-Kumarbagh and Dharama Nagar valleys. Artesian conditions are rare in these zones. The third zone, comprising moderately thick discontinuous aquifers with yield prospects less than 50m3/hr, is located in the intermontane and smaller valleys. The annual replenishable Ground water Resource is 2.19 BCM and Net Annual Ground Water Availability was 1.97 BCM. The Annual Ground Water Draft in the State is 0.17 BCM and the stage of Ground Water Development was just 9%. Hence all the blocks in the State have been classified as ‘Safe”.

(ii) The depth to water level for the Pre Monsoon-2013 period was 1.21 (minimum) and 6.58 (maximum) metres below ground level. The corresponding figures for November 2013 were 0.88 and 5.42 metres respectively, indicating good availability of ground water. However, the ground water in the State is contaminated with very high levels of iron (>1.0 mg/l). In view of very low development of ground water, the State Govt. feels that it is not necessary to enact any law to regulate and control the development of ground water at present. However, Roof Top Rain Water Harvesting has been mandatory in all new buildings having plinth area more than 300 mt2 for all types of uses and in group housing of any size. Out of the total estimated irrigation potential of 1,40,383 ha, the total irrigation potential created, as on 31.03.2014 stood at 1,12,806 ha of which the net potential utilised was 77,930 ha. The details of area brought under irrigation since 1952 are indicated in the following table:

Table 1.6. Area brought under irrigation

PeriodArea brought un-der irrigation dur-ing the period (ha)

Cumulative Area under irrigation (ha)

1952-1977 4,383 4,3831977-1985 9,353 13,7361985-1992 11,103 24,8391992-1997 4,599 29,4391997-2002 37,840 67,2782002-2007 23,575 90,853


2007-2012 19,671 1,10,5242012-2014 2,282 1,12,8062014-2015 691 1,13,497

(Source: Economic Review of Tripura 2014-15)

1.9. Socio-economic scenario1.9.1. The economy of Tripura had suffered from disturbed conditions of extremism and insurgency over the last two decades, which directly hin-dered the human safety as well as economic development process in the recent past. The State has come out from that disturbed phase arising out of law and order since 2005. The State is characterised by geographi-cal isolation, poor infrastructure facilities, communication bottlenecks, inadequate exploitation of natural resources, low capital formation, back-wardness in industrialisation due to above reasons and high level of un-employment. The most important fiscal constraint in Tripura is the State's very high dependence on Central government for revenues. The fiscal condition of the State is determined to a large extent by the level of Central transfers.

1.9.2. The details of GDP of the State vis-à-vis All India, Per Capita Income during 2013-14 and 2014-15 (provisional) are given below:

Table 1.7: GDP & Per Capita Income at Current Prices (Base: 2004-05)

(Rs. Crore)

Particulars All India Tripura State2013-14 2014-15 2013-14 2014-15

Gross Domestic Product 11272764 12433749 25,592.83 29,666.62Net Domestic Product 92,99,345 93,59,476 23,328.98 27,484.05Per Capita Income 80,388 86,879 61,570 71,666

Source:http://indiabudget.nic.in, Economic Review of Tripura 2014-15

Further, the shares of Primary, Secondary and Tertiary sectors in the GDP of the State vis-à-vis all India during the last three years were as under:

Table 1.8: Shares of Primary, Secondary and Tertiary sectors in the GDP

SectorAll India Tripura State

2012-13 2013-14 2014-

152012-

13 2013-14 2014-15Primary 18.7 18.6 17.6 26.44 25.75 32.36Secondary 31.7 30.5 29.7 18.75 17.94 16.64Tertiary 49.6 50.9 52.7 54.81 56.31 51.00Data in % age, Sources: Economic Review of Tripura 2014-15; Economic Survey 2016-17

1.9.3. The other economic/fiscal indicators of the State are highlighted below:

http://indiabudget.nic.in/


Despite various constraints, the growth rate of GDP of the State im-proved steadily and stood at 9.2% during 2014-15 as against the all India growth rate of 7.24%.

The percentage of Agriculture and Allied Sector of the State to total GSDP during 2014-15 @32.36% was much higher than all India figure of 17.6%

The Fiscal Deficit of the State had increased from Rs.1,049.02 crore during 2014-15 to Rs.1,937.82 crore during 2015-16.

The Revenue Deficit to GSDP which was 8.1% during 2012-13 re-duced to 6.3% during 2013-14 and but again increased to 7.7% dur-ing 2014-15 and further to 9.6% during 2015-16.

Though the Gross Fiscal Deficit to GSDP which was less than the tar-get cap (set by the 13th Finance Commission for Gross Fiscal Deficit (GFD) at 3% of GSDP) during 2013.14 (-0.2%), the same had in-creased to 4.3% during 2014-15 and further to 5.5% during 2015-16.

Though the total outstanding liabilities as a percentage of GSDP were as high as 54.5 during 2005 and 2006, the same has come down to 29.6 during 2016.

The share of interest payments to GSDP had marginally increased from 2.07% during 2012-13 to 2.30% during 2014-15. The same is es-timated at more than 3% at National level.

The state has not availed of ways and means advances (WMA) or overdraft facility from RBI to tide over temporary liquidity con-straints.

(Sources: Economic Survey 2016; Economic Review of Tripura; State Finances Study by RBI 2016)

1.9.4. The agriculture and allied sector is the backbone of the State's economy. It formed 32.36% of SDP (which is much higher when compared to all India share of 17.6%). Agriculture and allied activities primarily refer to crop cultivation, animal husbandry, pisciculture, horticulture and floriculture. About 74% of State's population live in rural areas. With the forests covering over 60% area of the State, only 27% of the land is available for cultivation, which is far below national average. As there is hardly any scope of getting additional land for cultivation of food crops, coupled with the increasing population, the pressure on the existing agriculture land is immense. Further, 95% of total operational holdings in the State are below the size of 2 hectares and they operate 75% of the operated area. In order to achieve self-sufficiency in food grains production, the State Government had formulated a ten year Perspective Plan in 2000-01, which yielded desired results.


1.10. Performance of Agriculture & Allied Sectors(a) AgricultureAgriculture and allied activities occupy an important place in the State's economy. About 65% population depend on it. The Cropping pattern in Tripura acquires typical character of hill agriculture in the North Eastern Region where two distinct and parallel farming systems viz., (i) Shifting cultivation or jhum in the hill slopes (ii) Settled farming cultivation in the plains, are in vogue. Paddy is the predominant crop in both the systems. The State grows three seasonal Paddy crops viz. Aush, Aman and Boro in the settled farming areas along with other wide range of food and non-food crops.

The details of various crops, including area, production and yield, in the State during the last three years was as under:

Table 1.9. Crop-wise Area, Production and Yield during 2012-13, 2013-14 & 2014-15

Crop 2012-13 2013-14 2014-15A P Y A P Y A P Y

Paddy 254.743

713.222

2800 254.254

711.831

2800 257.273

746.954

2903

Maize 3.632 4.703 1295 4.589 5.863 1278 4.519 5.963 1320Wheat 0.650 1.300 2000 0.150 0.300 2000 0.135 0.304 2252Pulses 8.439 5.958 706 12.150 8.696 716 11.664 8.426 722Total Food grains

267.464

725.183

2711 271.143

726.690

2680 273.678

761.712

2783

Oil seeds 4.814 3.620 2592 6.086 4.613 758 8.966 7.109 793Jute 0.640 5.621 8.22 0.643 5.369 8.35 0.650 5.564 8.56Mesta 0.641 5.077 7.92 0.854 7.003 8.20 0.627 5.079 8.10Cotton 0.922 1.341 1.45 0.949 1.395 1.47 0.904 1.347 1.49Sugar-cane

0.899 45.436 50541

0.964 49.598 51450

0.793 41.510 52346

A: Area in thousand ha; P: Production in thousand Tons and Y: Yield in Kg/HaSource: Economic Survey of Tripura 2014-15; Agriculture Dept., GoT: Basic Statistics – APY

The Perspective Plan of Government of Tripura, launched during 2000-01, gave emphasis on (i) self-sufficiency in HYV certified seed production, (ii) varietal replacement, (iii) enhancing consumption of plant nutrients, (iv) exploitation of full irrigation potential, (v) availability of adequate farm power, (vi) increased flow of institutional credit, (vii) capacity building of farmers, (viii) involvement of PRIs, etc.

Some of the major achievements after implementation of Perspective Plan include (i) increase in area under assured irrigation from 52,197 ha in 2000-01 to 1,13,597 ha in 2014-15, (ii) increased food grains production from 6.12 lakh tons during 2004-05 to 7.68 lakh tons during


2014-15, (iii) reducing the gap between food grains requirement and production from 1.54 lakh tons to 1.11 lakh tone during the same period, (iv) increase in the flow of institutional credit to crop loans from Rs.15.15 crore during 2004-05 to Rs.239.79 crore during 2016-17.

Further, in order to improve Pulses production in the country, the following recommendations have been made in GoI’s Economic Survey 2016-17.

Table: 1.10: Recommendations made in GoI’s Economic Survey 2016-17

S.No.

Policy Timing

1 MSP & Procurementa) Government procurement machinery should be on

high gear to ensure the procurement of 29 Kharif pulses at this season’s announced MSP.

Immediate

b) To ensure effective procurement, a High Level Committee comprising Ministers of Finance, Agriculture, and Consumer Affairs and Principal Secretary to PM should be constituted. There should be weekly reporting by procurement agencies on the ground with physical verification of procurement

Immediate

c)Build up 2 million tons of pulsesstock with targets for individual pulses, especially tur (3.5 lakh tonnes) and urad (2 lakh tonnes). These should be built up gradually but opportunistically, buying when prices are low.

Immediate

d) MSP to be increased to `70/kg in 2018 when short duration Kharif tur is ready for

commercialization. Efforts to be made to give production subsidies to farmers for growing pulses in irrigated areas of about `10-15 per kg to be given via DBT

Kharif 2018 but planning to begin soon

e) Instruct CACP to comprehensively review its MSP-setting framework to incorporate risk and social externalities along the lines done in this report

Immediate

2 Other Price Management Policiesa) Eliminate export ban on pulses and stock limits; at

the very least limits on wholesalers should be eliminated. The greater the limits on procurement by the government, the greater the urgency to take these actions to ensure that market prices stabilize above the MSP. The worst case scenario for farmers

Immediate


S.No.

Policy Timing

is weak procurement and stock limits which force farmers to sell most of their output at market prices that are well below MSP. More generally, the use of trade policy to control domestic prices, which induces policy volatility, should be avoided.

b) Encourage states to delist pulses from their APMCs Immediatec) Review Essential Commodities Act, 1955 and

futures trading of agricultural commodities with a view to preserving objectives but finding more effective and less costly instruments for achieving them

As appropriate

3 Institutions for procurement-stocking-disposala) Create a new institution as a Public Private

Partnership (PPP) to compete with and complement existing institutions to procure stock and dispose pulses.

Preparation to start immediately with aim of implementation by Rabi 2017.

b) Announce clear rules for disposal of stocks.4 Minimizing Adverse Impactsa) Encourage development of GM technologies. Grant

expeditious approval to indigenously developed new varieties of pulses

As appropriate

In addition, the following measures need to be undertaken:

(i) Minimising the gap in potential yield and actual yield in respect of major crops.

(ii)Promotion of MI structures like rain water harvesting, Drip & Sprinkler system and efficient utilisation of created irrigation po-tential will help in improving the productivity of crops.

(iii)Diversification in the areas of horticulture, floriculture, etc.

(b) Plantation & Horticulture: The diverse agro climatic conditions, fertile soils & abundance of rainfall offer immense potential for produc-tion of a number of tropical and sub-tropical fruits and vegetables in the State. The major fruits & vegetable crops grown in the State are Pineap-ple, Orange, Banana, Litchi, Mango, Cashewnut, Coconut, Chillies, Betelvine, Potato, variety of summer and winter vegetables, Ginger, Black Pepper etc.

(c) Animal Husbandry: The livestock sector assumes importance since it supports the small and marginal farmers both economically and nutri-tionally. Despite constraints, Tripura has made significant progress in


the development of animal resources, particularly in egg and meat pro-duction. During 2014-15, total annual production of milk, meat and egg were 1,41,430.67 MT, 34,758.94 MT and 19.79 crore Nos. respectively. The per capita availability of eggs per annum in the State @52 was below national average of 55. Similarly, in milk production also, with per capita availability @101.03 gm per day, the State lags far behind when com-pared to the national average of 292 gm per day. In order to ensure food security, the state is making efforts to enhance the production of foods of animal origin during the 12th plan period by augmenting production as well as productivity.

(d) Fisheries: Pisciculture is considered to be one of the best suitable allied agricultural activities in Tripura because of high economic returns and ready domestic market. Fish is an important constituent of daily diet of more than 95% of the population of the state. During the last decade, the state has made considerable progress in carp seed production and has become one of the surplus fish seed producing state. Keeping in view the nutritional gap, the state has successfully implemented a perspective plan for fish production and continues its focus for sustainability. With the total fish production at 64,780 MT in 2014-15, the per capita availability of fish from local production had increased to 17.50 kg in 2014-15 against 16.33 kg in 2012-13 and 16.81 kg during 2013-14.

1.11. Industry, Trade & Services: The State is industrially backward due to geographical isolation as well as poor road/ rail connectivity with the mainland of India. Under non-agricultural establishments, Retail Trade is the major activity of the State, which constitute 45% of non-agricultural establishments, followed by manufacturing (18.28%), transport (7.7%), education (7.25%) and other community & personal services (6.32%). Bamboo, Tea, Rubber based industries and Food Processing have good potential for the industrial development in Tripura.

1.12. Infrastructure: Limitations of communication infrastructure in terms of adequate rail/road connectivity has made the process of economic development extremely difficult for the State. The state is connected with the rest of the country by National Highway-44, which runs through the hills to Cachar District in Assam. The NH-44 is the lifeline of Tripura. It gets disrupted frequently during rainy season due to landslides near Patharkandi in Assam and Sonarpur in Meghalaya. In one of the landmark developments, Agartala is now connected by railway link to the main land by broad gauge line. It will be extended to Sabroom in South Tripura District, which will give access to the port city of


Chittagong in Bangladesh. This railway connection is expected to bring sea change in terms of connectivity and marketing and may have the effect of bringing about a sea change in the level of economic activities in the state in the near future. The State does not have any water transport system. The State has two sources (Thermal and Hydro) of generation of electricity. It is endowed with natural gas, which enhances potential for thermal power generation. While thermal power accounts for 93%, remaining 7% is from hydel power.

1.13. Panchayat Raj Institutions: There is strong three tier Panchayat system of local self- governance in vogue in the State of Tripura. The State Government has taken steps to assign a few activities of Development Departments to the panchayats at three levels i.e. Gram Panchayats, Panchayat Samities and Zila Parishads. These are in addition to their respective obligatory duties and functions as provided in the Tripura Panchayat Act 1993.

1.14. Summing up

The State is blessed with excellent natural resources in the form of fertile soil, water and climatic conditions. Coupled with the favourable developmental policies of the Government, the State is also improving its infrastructure facilities such as roads, bridges, irrigation and electricity. The next few chapters will be devoted to discuss as to how effectively, these natural resources of the State can be put to use for its overall economic development.



Chapter 2Financial Sector Development in the State

2.1. Banking ProfileIndian banking industry can be grouped into two parts, viz., organized and unorganized sectors. The organized sector consists of Reserve Bank of India, NABARD, Commercial Banks, Regional Rural Banks, Co-operative Banks, and Specialized Financial Institutions (NABARD, SIDBI, etc.). The unorganized sector, which is not homogeneous, is largely made up of money lenders and indigenous bankers. The intermediary role provided by the financial institutions enables the financial sector to mobilise savings for investment, facilitate and encourage inflows of capital and optimise the allocation of capital between competing uses, ensuring that the capital goes to its most productive use. Various financial institutions including banks in the State play a significant role in development of agriculture sector and industrialization of the State. Despite the perceptible progress made so far, the demand for all the services including savings, credit, insurance, old age pension and remittances has been increasing. The task is challenging and all the stake holders have major and critical roles to play. All the stakeholders, therefore, have to scale up their level of operations, strengthen existing ones and strike new partnerships and invest in training and skill building of their staff as also the constituent clients and form a grand alliance of all those working in the sector to share ideas, best practices, lower costs and achieve excellence in quality of services. The banking sector gross credit deployment was sluggish during 2014-15 (below 10% year-to-year growth). The slowdown in growth in the balance sheets of the banks witnessed since 2011-12 continued in 2015-16. The sluggish growth and increasing indebtedness in some sectors of the economy have impacted the asset quality of banks, which is a cause of concern. This sluggishness can be attributed to (i) incomplete transmission of the monetary policy as banks had not passed on the entire benefit to borrowers, (ii) unwillingness of the banks to extend credit on account of rising NPAs, (iii) worsening of corporate balance sheets, (iv) interest rates in the bond market being more attractive to borrowers.

Vital Banking StatisticsNetwork of Branches as on 31.3.2017 in Tripura

Area March 2012

March 2013

March 2014

March 2015

March 2016

March 2017


Rural 187 (57%)

217 (57%)

229 (54%)

248 (54%)

265 (53%)

269 (53%)

Semi Urban 67 (20%) 84 (22%) 107

(25%)117

(25%)127

(26%)131

(26%)Urban 74 (23%) 79 (21%) 89 (21%) 96 (21%) 104

(21%)108

(21%)Total 328 380 425 461 496 508

Key Performance Parameters of Banking Sector in Tripura

(Rs. in Crore)

S. No.

Parameter March’ 15

March’ 16

March’ 17

1. No. of Branches 461 496 5082. Total Deposits 17,274.85 18,724.08 22,341.993. Total Advances 7,107.78 8,415.05 9,586.334. C D ratio 41 45 435. C + I : Deposit Ratio 60 67 626. Priority Sector Advances 5,204.18 6,162.78 7,866.407. % of PSA to ANBC 73 87 938. Agriculture Advances 1,658.28 2,304.85 3,392.879. % of Agri-advances to ANBC 23 37 4010. MSME Advances 2,337.82 2,694.85 3,068.5511. Education Loans 85.7 114.27 114.4512. Housing Loans 1,135.48 1,311.54 1,343.0613. DRI Advances 2.40 3.18 1.7314. % of DRI advances to ANBC 0.04 0.04 0.0215. Advances to SC/ST 1,686.82 1,914.56 2,287.1516. Advances to Women Entrepreneurs 887.79 1,413.33 1,526.7917. % of Advances to women to ANBC 15.19 19.9 18.1418. Advances to weaker sections 2,421.65 3,390.70 4,291.5819. % of advances to weaker sections to

ANBC 41 48 5120. Advances to Minority Community 261.05 282.73 535.6821. % of adv to Minority Comm. to ANBC 4.47 3.98 6.36

Performance under Annual Credit Plans of Banks in Tripura

(Rs. in Crore)

Sector2015-16 (as on 31.3.2016) 2016-17 (as on 31.3.2017)Plan Achieveme

nt%

Ach.Plan Achieveme

nt%

Ach.

Agriculture 1141.16 1424.78 125

% 1296.82 1609.02 124%


MSME 822.67 1219.64 148% 967.06 1366.77 141

%Other PSA 549.73 468.73 85% 601.19 628.05 104

%Total PSA

2513.56 3113.15 124

%2865.0

7 3603.83 126%

Non PSA 426.49 527.23 124% 469.16 576.28 123

%G. Total 2940.0

5 3640.38 124%

3334.24 4180.11 125

%* PSA Priority Sector Advances

2.2. Branch Network As on 31.03.2017, there were 31 Commercial Banks (CBs), one Regional Rural Bank (Tripura Gramin Bank - TGB), one State Cooperative Bank (TSCB), 268 Primary Agriculture Credit Societies (PACS)/Large Sized Adivasi Multi-Purpose Societies (LAMPS), one State Cooperative Agriculture and Rural Development Bank (TCARDB) and one Urban Cooperative Bank in the State. The branch network in the State increased from 425 as on 31.03.2014 to 461 as on 31.03.2015, to 496 as on 31.03.2016 and further to 508 as on 31.3.2017, improving per branch population from 8,645 to 7,232 during the reference period. Of the total branches, 269 branches (53%) were in rural areas, 131 branches (26%) were situated in semi-urban areas and the rest 108 (21%) in Urban areas. Agency-wise network of branches as on 31.03.2017 was as under:

Table No. 2.1 Agency-wise Network of Branches (Position as on 31.03.2017)

Area CBs TGB Coop. Banks Total

Rural 127 101 41 269Semi Urban 85 30 16 131Urban 81 13 14 108Total 293 144 71 508

Source: SLBC

2.3. Highlights of the Performance of the Banks during 2016-17 (a) Deposits: The aggregate deposits of all banks in the State have increased from Rs.17,274.85 crore as on 31.03.2015 to Rs.18,724.08 crore as on 31.03.2016 and further to Rs.22,341.99 core as on 31.3.2017, an increase of 19.32% over the last year.

The details are furnished in the following table:Table No. 2.2: Details of Deposits of Banks

(Rs. Crore)

Year CBs TGB Coop. Banks Total


2014-15 11,279.07 4,156.32 1839.46 17,274.852015-16 11,813.06 4,832.05 2,078.97 18,724.082016-17 14,545.34 5,381.73 2,414.92 22,341.99Growth over 2015-16 (%) 23.12 11.36 16.17 19.32

The shares of Commercial Banks, RRBs and Cooperatives in the total deposits were 65%, 24% and 11% respectively. The growth rate of deposits of the CBs (23.12%) was better as compared to that of Cooperatives (16.17%) and RRB (10.36%) possibly due to deposit influx in bank accounts. While the average per branch deposits as on 31.03.2017 were Rs.43.98 crore, that of CBs were higher at Rs.49.64 crore as compared to Rs.37.36 crore for TGB and Rs.34.00 crore for Coops.

(b) Loans OutstandingThe total loans outstanding for all agencies had increased from Rs.7,107.78 crore as on 31.03.2015 to Rs.8,415.04 crore as on 31.03.2016 and further to Rs.9586.32 crore as on 31.3.2017 registering a growth rate of 13.92% over the last year. The average per branch advances outstanding as on 31.03.2017 were Rs.18.87 crore, the data for CBs, TGB and Coops being Rs.21.71 crore, Rs.13.82 crore and Rs.17.43 crore respectively.

(c) Performance under Annual Credit Plan 2016-17The performance of the banks under Priority Sector as per Annual Credit Plan (ACP) 2016-17 was satisfactory, with an overall achievement of 126% of the target. While the disbursement to Agriculture (124%) and MSME (141%) sectors exceeded the target fixed, the achievement in respect of Other Priority Sector was subdued at 104% vis-à-vis Agriculture and MSME. Under Primary sector, the achievement under Agriculture Term Loans was impressive @260.48% of the target fixed. Agency-wise, the achievement under ACP during 2016-17 was as under:

Table No. 2.3. Agency-wise ACP Achievement during 2016-17 (Rs.

crore)

AgencySector

Agri & allied MSME OPS TotalCBs 1146.72

(71.27%)1109.67(81.18

%)439.89( (70.05%

)2696.28

(74.81%)


RRB 419.34 (26.06%)

233.27(17.07%)

153.44 (24.43%) 806.06(22.36%)

Coops 42.95(2.67%) 23.82 (1.75%) 34.71 (5.52%) 101.48(2.83%)Total 1609.01

(44.64%)1366.76

(37.92%)628.04

(25.75%)3603.83

(125% of target (figures in brackets indicate % of achievement out of total achievement)

The achievement by the banks under ACP during the last four years was as under: Table No. 2.4. ACP Achievement during 2013-14, 2014-15, 2015-16 and

2016-17(Rs.

Crore)

Year Crop Loan ATL Total

Agri. MSE OPS Total

2013-14 316.80 548.44 865.24 923.36 472.25 2260.852014-15 331.54 647.07 978.61 846.32 433.62 2258.55

2015-16 267.95 1156.83 1424.78 1219.64 468.74 3113.15

2016-17 239.79 1369.22 1609.01 1366.76 628.04 3603.83

(Source: SLBC)

2.4 Credit Deposit (CD) RatioThe overall CD ratio in the State, though not satisfactory, has steadily improved from 41% as on 31.03.2015 and to 45% as on 31.03.2016, as against the national average of 78%. The ratio, however, declined to 43% as on 31.3.2017 due to unprecedented growth in deposits. Further, the CD ratio was highly skewed across the districts, 32% in West Tripura district to 85% in Gomati district, as can be seen hereunder

Table No. 2.5: District wise CD Ratio during the last three years

DistrictCD Ratio as on Variation

(%) since March 2016

31.03.2014

31.03.2015

31.03.2016

31.3.2017

North Tripura

44 44 54 45 -16

Unakoti 48 47 52 55 5.8South Tripura

42 40 47 46 -2.1

Gomati 83 79 85 85 -West Tripura

29 33 34 32 -6

Sepahijala 43 61 67 62 -7.4Khowai 57 55 61 64 5Dhalai 54 56 69 62 -10


Total 38 41 45 43 -4.4

While there are various reasons for lower CD ratio, viz., lesser avenues, poor capacity of the entrepreneurs as well as bankers, low level of SHG financing, lesser industrialization, subsistence farming, etc., as has been pointed at various fora, these problems need to be overcome and lending to be increased so as to achieve higher CD ratio. In the post demonetization scenario, growth in deposits was more than the growth in advances.

2.5. Performance against norms set by RBI to fulfill national goalsThe performance of banks against the norms set by RBI to fulfil national goals in respect of Priority Sector, Agriculture and weaker Sections during the last three years was as under:

Table No. 2.6: Performance of banks against RBI norms

ParticularsRBI

Norms(%)

As on31.03.2014

31.03.2015

31.03.2016

31.3.2017

Adv. o/s to Priority Sector 40 87 73 87 93

Adv. o/s to Agriculture 18 28 23 37 40

Adv. o/s to Weaker Sections 10 50 34 48 51

While TGB, TSCB and majority of commercial banks in the State registered good achievement under RBI performance benchmarks during the last three years, a few banks viz., IDBI Bank, Indian Overseas Bank, and Axis Bank fell short of achieving benchmark targets under Priority Sector lending during 2016-17.

2.6. Health of Rural Financial Institutions - Agency-wise Analysis2.6.1. Commercial BanksA comparative position of the important financial parameters of the 23 Commercial banks (both Public and Private sector) operating in the State during the last three years is furnished in the following table.


Table No. 2.7: Commercial Banks - Financial Parameters(Rs. crore)

ParticularsAs on

31.03.2014

As on 31.03.20

15

As on 31.03.20

16

As on 31.3.2017

% increase/ decrease

over 31.03.2016

No. of branches 226 248 281293 Increase of

12 branches

CD Ratio (%) 35 39 45 44 -2.22

Deposits 9954.07 11279.07

11,812.96

14545.34 23.14%

Advances 3502.59 4435.52 5,337.33 6358.90 19.13%Priority Sector Advances 2441.62 3330.04 3858.17 2696.27 -30%

Agri. Advances 635.13 758.14 1155.99 1146.72 -0.77%

Though the overall performance of Commercial Banks was good during the year, the Priority Sector Advances to total advances was less than 40% in respect of a few banks viz., Andhra Bank, Bank of Maharashtra, Central Bank of India, Dena Bank, Indian Overseas Bank, Punjab and Sindh Bank, OBC and Yes Bank.

2.6.2 Regional Rural Bank (RRB)As on 31 March 2017, there was one RRB, viz., Tripura Gramin Bank (TGB) operating in the State with a branch network of 144 branches (131 branches in rural/ semi-urban). The financial parameters of the RRB in the State during the last two years were as under:

Table No. 2.8: Financial Parameters of TGB (Rs. crore)

S. No.

Parameters

As on 31.03.20

14

As on 31.03.201

5

As on 31.03.20

16

As on 31.3.20

17


over 31.03.2016

1 No. of Branches 138 142 144 144

2 Deposits 3650.39 4156.32 4832.05 5381.73 11.4

3 Borrowings o/s 173.32 343.10 460.93 512.87 11.3

4Loans & Advances o/s

148900 1642.28 1854.51 1987.96 7.2

5Priority Sector Advances o/s

1013.53 1125.35 1406.84 1600.03 13.7

6Agriculture Advances o/s

343.49 385.61 471.10 576.48 22.4

7 Adv.to MSME - 232.25 288.29 376.81 30.7

8 Total Loans issued 746.06 741.07 891.47 931.56 4.5


S. No.

Parameters

As on 31.03.20

14

As on 31.03.201

5

As on 31.03.20

16

As on 31.3.20

17


over 31.03.2016

9Priority Sector Adv. Issued

611.45 638.38 768.52 792.50 3.1

10 Agriculture Adv. issued 301.94 334.71 418.96 436.19 4.1

11 Investments o/s 1039.63 1160.22 2229.99 3514.49 57.6

12 Recovery % 66.55 61.67 62.58 70.92 13.313 CD Ratio 40.79 39.51 38.38 36.94 -3.8

14% of Gross NPA to Loans o/s

4.41 4.88 8.04 8.48 5.5

15Profit during the year

82.69 35.69 43.95 56.88 29.4

16 No. of Employees 791 784 771 755 -2.1

18 Per Branch Business 37.24 40.84 46.43 51.18 10.2

19Per Employee Business

6.50 7.40 8.70 9.76 12.2

20 CRAR - - 18.87 20.76

While the advances portfolio of TGB had increased by 7.28% during 2016-17 as compared to 12.92% during in 2015-16, the deposits grew at a rate of 11.36% during 2016-17 as compared to 16.26% during 2015-16. However, the gross NPAs of the bank were alarmingly higher @8.42% as on 31.03.2017 as compared to 4.88% the 2014-15. Further, the CD ratio of the bank has been constantly on the decline and stood at 40.79%, 39.51%, and 38.38% and 37% during the last four years and needed to be improved upon.

2.6.3. Cooperative Banks 2.6.3.(i) Short Term Cooperative Credit Structure (STCCS) The STCCS in the State consists of Tripura State Cooperative Bank (TSCB) operating as Apex Level Institution in the State through its 64 branches and 268 Primary Agricultural Credit Societies (PACS)/LAMPS operating at the grass root level.

The Important financial parameters of Tripura State Cooperative Bank (TSCB) during the last three years are furnished in the following table:

Table No. 2.9 - TSCB - Financial Parameters(Amt Rs. crore)

ParticularsAs on

31.03.2014

As on 31.03.20

15

As on 31.03.201

6

As on 31.03.2017


over 31.3.2016

No. of branches 54 63 63 64 1


Owned funds 86.67 116.32 122.48 135.65 10.7Deposits 1638.61 1811.76 2043.43 2373.50 16.15Borrowings 47.21 103.75 129.75 130.00 0.19Investments 946.15 863.72 886.62 938.84 5.88Advances 728.80 986.10 1179.81 1202.74 1.95Net Profit 26.09 28.03 4.44 11.98 69.82Business per employee 7.31 8.32 9.82 9.38 -4.5

Profit per employee 0.111 0.080 0.0135 0.0314 32.59Gross NPAs (%) 3.78 3.53 3.45 3.22 -6.66Net NPAs (%) 0.78 1.17 1.27 0.97 -23.6CD Ratio (%) 44.0 54.43 57.74 50.7 -12.19Recovery (%) 95.79 84 81.5 78.48 -3.70

a) The share of TSCB in the State in deposits during 2016-17 was 10.62%

b) The bank has been posting profits for the last 9 years. c) As on 30 June 2017, the recovery of TSCB was 78.48%. d) As on 31 March 2017, the CRAR of TSCB was impressive @18.01% e) It is even impressive that the Gross and Net NPAs as on 31.03.2016

were 3.22% and 0.97% respectively. f) The TSCB is on CBS platform and is RTGS/NEFT compliant. g) TSCB is ready for mobile banking through sub membership route.h) Data Centre and Disaster Recovery mechanism has been beefed up

by acquiring required hardware and software.

2.6.3 (ii) Long Term Cooperative Credit Structure (LTCCS) The financial health of the Tripura Cooperative Agriculture and Rural development Bank (TCARDB) is poor and is not in position to cater to the long term credit needs of the rural populace, resulting in strain on other rural financial institutions. Its poor recovery position coupled with huge accumulated losses has rendered it ineligible to draw refinance from NABARD.

2.6.3 (iii) Issues affecting the health of the Cooperatives in the State:The following are some of the issues affecting the health of the cooperative structure in the State which needs to be addressed at various levels.

a) The share of the cooperatives in Agriculture loan disbursement in the State during 2016-17 was 2.67% and there is scope to increase this share further.

b) Even though the borrowers of crop loan from the cooperative bank are benefited by the interest subvention (for prompt repayment),


the Cooperatives across India get interest subvention for lending upto Rs.3.00 lakh at 7% out of their own resources.

c) The margin available to the PACS under PDS business is very thin. d) The recovery position of some of the PACS is alarming at less than

60%.e) PACS have not developed their Business Plans and lack profession-

alism in management. Assistance released to PACS under Vaidyanathan package has been kept as FD with TSCB with the ex-ception of few PACS and has not been deployed for business opera-tions.

f) While CBS has been implemented in TSCB, the other add-on ser-vices viz., ATMs, issue of ATM cards, RuPay cards etc., need to be speeded up.

g) Computerisation of PACS is on the anvil as GOI package with par-ticipatory contribution from the State Government. Guidelines are expected.

2.7. Policy Initiatives Government of India, State Government, Reserve Bank of India and NABARD have been taking a number of policy measures for the development of agriculture and rural sectors and accelerating credit flow to these sectors. The important policy initiatives are given below:

2.7.1. Government of IndiaA. Union Budget 2017-18In the Union Budget 2017-18, Govt. of India, continued to initiate various measures for the Agri-rural-socio-economic-banking development. Espe-cially, for the development of North Eastern Region, an overall amount of `43,245 crores have been allocated across all ministries, as against `32180 crores (Revised Estimates) during 2016-17. The agenda of GoI for the year 2017-18 would be ‘Transform, Energise and Clean India' (TEC India). The agenda of TEC India seeks to (i) Transform the quality of gov-ernance and quality of our people, (ii) Energise various sections of the so-ciety, especially the youth and the vulnerable and enable them to unleash their true potential and (iii) Clean the country from the evils of corrup-tion, black money and non-transparent political funding. Further, the Budget proposals are built on under 10 distinct themes viz., (i) Doubling of Farmers' Income by 2022, (ii) Providing employment and basic infra-structure to Rural Populace, (iii) Energising the youth through educa-tion, skills and jobs, (iv) Strengthening the systems of social security, health care and affordable housing to poor and under-privileged, (v)


Infrastructure for efficiency, productivity and quality of life, (vi) Finan-cial Sector growth and stability through stronger institutions, (vii) Di-gital Economy for speed, accountability and transparency, (viii) Public service: effective governance and efficient service delivery through people's participation, (ix) Prudent Fiscal Management to ensure op-timal deployment of resources and preserve fiscal stability and (x) Tax Administration honouring the honest. The important budget an-nouncements and their implications are tabulated below:

Table 2.11 : Initiatives of GoI in Union Budget 2017-18S.No

Budget Announcement

A Agriculture & Allied Sectors(i) Committed to double the incomes of farmers by 2022(ii) Target for Agriculture credit fixed at ` 10 lakh crore(iii) Farmers to get interest waiver of 60 days in respect of loans from

Cooperative Sector(iv) Govt of India to support NABARD for computerisation and integration of

all functional PACS with Core Banking System of StCB over a period of 3 years at an estimated cost of ` 1,900 crore

(v) Fasal Bima Yojana allocation raised to ` 13,240 cr (from ` 5,500 cr). Cov-erage to be 40% of cropped area

(vi) Setting up of New minilabs in all KVKs for soil testing and provision of credit linked subsidy to 1000 entrepreneurs for setting up mini labs for soil testing

(vii) Allocation of Long Term Irrigation Fund set up in NABARD during 2016-17 to be doubled to `40,000 crore

(viii) Setting of a dedicated Micro Irrigation Fund in NABARD to achieve the goal ‘Per drop more crop’, with an initial corpus of ` 5,000 crore

(ix) To enable the farmers to get better prices for their produce in the markets, the coverage of national Agriculture Market (e-NAM) will be expanded from the current 250 markets to 585 APMCs. Assistance upto a ceiling of ` 75 lakh will be provided to each e-NAM for establishment of cleaning, grading and packaging facilities. eNAM to integrate with commodity exchanges

(x) Market reforms to be undertaken and the states will be asked to de-notify perishables from Essential Commodities Act

(xi) A model law on contract farming would be prepared and circulated amongst the states for adoption

(xii) Dairy Processing and Infrastructure Fund will be set in NABARD with an initial Corpus of `2000, to be increased to ` 8,000 crore over a period of 3 years.Rural Population

(i) Allocation to MNREGS increased to ` 48,000 crore; Geotagging MNREGA assets proposed

(ii) Allocation of ` 23,000 crore under PM Awas Yojana to complete one crore houses for poor by 2019

(iii) To provide Safe drinking water to over 28,000 arsenic and fluoride affected habitations in the next four years, under submission of National Rural Drinking Water Programme


S.No

Budget Announcement

(iv) To achieve 100% village electrification by 01 May 2018 with an allocation of `4814 crore under Deen Dayal Upadhyay Gram Jyothi Yojana

(v) Allocation of `19,000 crore for PMGSY in 2017-18(vi) Allocation of `4,500 crore under Deendayal Antyoday National Rural

Livelihood Mission for promotion of skill development and livelihood opportunities for people in rural areas

(vii) Launching of 'human resource reforms for results for improving human resources in Panchayat Raj Institutions for implementing development programmesYouth

(i) Creation of Innovation Fund for Secondary Education to encourage local innovation for ensuring universal access, gender parity and quality improvement

(ii) Launching of SWAYAM platform with atleast 350 online courses to leverage information technology

(iii) Extension of Pradhan Manthri Kaushal Kendras to more than 600 districts in the country

(iv) Launching of Skill Acquisition and knowledge Awareness for Livelihood Programme (SANKALP) for providing market relevant training to 3.5 crore youth with an allocation of ` 4,000 crore

(v) Launching of next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) at a cost of ` 2,200 crore

(vi) Setting up of five Special Tourism Zones, anchored on SPVs. Incredible India 2.0 campain to be launched across the world.The Poor and Underprivileged

(i) Setting up of Mahila Shakti Kendra at village level with an allocation of ` 500 crore in 14 lakh ICDS Anganwadi Centres

(ii) Total allocation of ` 1,84,632 crore for welfare of women and children under various schemes across all ministries

(iii) National Housing Bank to refinance individual loans of about `20,000 crore

(iv) Allocation of ` 52,393 crore, ` 31,920 crore and ` 4,195 crore for SC, ST and Minorities Infrastructure

(i) Total allocation for infrastructure development is `3,96,135 crore(ii) Allocation of ` 2,41,387 crore for transportation sector as whole,

including rail, roads, shipping, (iii) Allocation of `1 lakh crore for Rashtriya Rail Sanraksha Kosh for

passenger safetyFinancial Sector

(i) Allocation of ` 10,000 crore for banks’ recapitalisation(ii) Creation of Payment Regulatory Board(iii) Augmentation of Financial Inclusion Fund(iv) Target of `2500 crore digital transactions in FY 2017-18(v) Banks to introduce 10 lakh additional PoS by March 2017(vi) BHIM app will unleash the power of financial inclusion(vii) Two new referral schemes to promote digital schemes and cash back

scheme for merchants(viii) Allowable provision for Non-Performing Asset from 7.5% to 8.5%(ix) Tax on interest only on actual receipt (not on accrual) for NPA accounts


S.No

Budget Announcement

of all non-scheduled cooperative banks

2.7.2. Reserve Bank of IndiaIn tune with the Govt of India’s decision, Reserve Bank of India, on 08 November 2016, demonetized ` 500 and `1000 denomination bank notes and advocated less-cash and digitized economy. Some of the steps being taken by RBI to reduce dependence on cash for transactions are as under:

2.7.3. Policy Initiatives of NABARDIn order to propagate less-cash transactions in the State, NABARD extends financial assistance to banks for the following activities:

(i) For conduct of digital Financial Literacy Awareness Programmes (dFLAP)

(ii)For implementation of Core Banking Solution in TGB and TSCB (iii)For setting up Solar powered V-Sat connectivity to Kiosk/ Fixed

CSPs in the Sub Service Areas(iv) For Issuance of EMV chip based RuPay Kisan Cards (v) For organising Financial Literacy Awareness Programmes (FLAPs)

in schools for creating awareness about cashless/digital transactions

(vi) For micro ATMs(vii) For deployment of PoS Terminals in Tier 5 and Tier 6 Centres

(viii) Pilot project to incentivise Aadhaar Based Biometric Transactions


(ix) For engagement of SHG Leaders/ Members as BC Agents for Financial Inclusion - Bank Sakhi Approach

(x) Reimbursement of Monthly Commission paid to BCAs to Tripura Gramin Bank

(xi) Support towards (i) capacity building of BCs/BFs and (ii) examination fees for BCs/BFs of Banks

(xii) Support towards examination fees for BCs/BFs of Tripura Gramin Bank

(xiii) Support for Capital Expenditure of RSETIs/ RUDSETIs for Purchase of Training Equipment and Maintenance thereof

(xiv)Digitisation of SHGs/Farmers' Clubs.(xv) Support to TGB and TSCB for purchase of mobile vans for

spreading digital financial literacy among the rural masses.2.7.4. Policy initiatives of State Government

(i) In order to encourage less-cash transactions, Govt of Tripura, with the active support of all the banks, had organised DigiDhan Mela in Agartala on 21 February 2017.

(ii)Further, the Finance Minister, in his Budget Speech 2017-18, out-lined the following measures for the development of the State:

(a)To cover 1,00,000 hectares under SRI system of Paddy Cultiva-tion.

(b)To bring 4400 ha of area under horticultural plantation with fund support of MGNREGA.

(c) A massive programme undertaken for production of Potato Tu-berlets using true Potato Seeds through cooperative farming system involving Tripura Horticulture Corporation Ltd.

(d)During 2017-18, irrigation coverage of 2940 ha is targeted through completion of ongoing 31 schemes. Emphasis will be given for construction of minor storage and deep tube well projects.

(e)To take up, during 2017-18, construction of 8 ongoing Surface Water Treatment Plants, 75 Ground Water Treatment Plants, and 150 Iron Removal Plants, Sinking of 250 deep Tube Wells, Com-missioning of ongoing 230 Deep Tube Wells, sinking & Commis-sioning of 250 Small Bore Tube Wells.

(f) So far 7142 out of 8132 habitations have been connected with all-weather roads and works are in progress to connect 537 habitation.s

(g)Two software parks to be made operational in Agartala during 2017-18.


(h)For digitalisation of excise payment, e-Agbari will be introduced during 2017-18.

(i) During 2017-18, Computerized Treasury Operation System will be integrated with E-Kuber (CBS of RBI) for making direct pay-ment to Payees' Account.

(j) The total budgetary expenditure of the State during 2017-18 would be order of Rs.15,956.56 crore as against the estimated receipts of Rs.15,758.56 crore leaving a deficit of Rs.198.00 crore.

2.7.5 Initiatives by the State regarding cashless transactionsIn tune with GoI’s decision regarding more cashless transactions, with the objective of creating awareness amongst citizens and merchants about various digital payment systems available and to encourage, guide and engage the citizens, customers and merchants to increasingly shift towards cashless payment modes, Govt of Tripura had organized a day long Digi Dhan Mela in Agartala on 21 February 2017. The Major banks of the State, other PSUs, Telecom Companies and Government Departments, participated in the Mela. During the Mela, the local residents in large numbers interacted with banks and other stakeholders, got apps downloaded.

2.8. Government Sponsored ProgrammesThe various Credit Linked Subsidy Schemes of Government of India/Govt of Tripura, which are in vogue in the State include (i) Dairy Entrepreneurship Development Scheme (DEDS), (ii) National Livestock Mission (EDEG Component), (iii) Establishment of Agri clinics and Agri-Business Centres, (iv) Jawaharlal Nehru National Solar Mission, (v) Capital Investment Subsidy Scheme for Commercial Production Units of Organic Inputs under National Project on Organic Farming; (vi) Integrated Scheme on Agri Marketing Infrastructure, (vii) Prime Minister's Employment Generation Programme (PMEGP); (viii) Swabalamban; (ix) Margin Money Scheme of KVIC, etc. These schemes will be subject to the instructions issued by GoI/GoT from time to time and the subsidy under the schemes will be subject to the availability of funds from GoI/GoT.

2.11. Interest SubventionIn order to encourage farmers to take up cultivation of crops which could lead to food security of the country, to lessen the financial burden on the farmers as also to encourage the repayment ethics amongst the farmers,


the Govt. of India had introduced Interest Subvention Scheme. The Scheme is continued during 2017-18 also. The scheme provides interest subvention @ 2% p.a. to banks provided the Rate of Interest charged to ultimate borrowers is 7% p.a. Further, an additional interest subvention of 3% p.a. is available to the prompt repayers. Thus the effective ROI comes to 4% for farmers.. This interest subvention is available for crop loans for an upper limit of ` 3.00 lakh. While the interest subvention scheme is proving beneficial to the farmers, there are a few issues at banks’ level. As the interest subvention receivable from GoI is generally delayed, it has impact on the financial margin of both PACS and TGB, since delay also adds to cost. Hence it is desirable that the interest subvention amount is parked in advance with Banks, as it will help in improving the financial health of the PACS/TGB.

2.12. Micro Credit2.12.1. Micro credit programme launched in the form of SHG-Bank Credit Linkage programme in 1991-92 proved to be very effective to extend the outreach of the financial services to rural poor. Due to inbuilt strengths of the programme, it witnessed an exponential growth path and emerged as the largest microfinance programme in the world. Financing of SHGs (Self Help Groups) has been increasingly accepted as a cost effective mechanism by banks for expanding their outreach to the poor and proved to be good business proposition to banks. SHGs are promoted and nurtured under (i) Women SHG Programme of GoI through NABARD, (ii) NERLP under DoNER and (iii) NRLM. The progress of SHGs in the state as on 31.3.2017 is indicated in the following table.

Table No. 2.12: SHGs Position in the State as on 31 March 2017

(Rs. lakh)

Bank SHGs Savings Linked (cum.)

Credit LinkageDuring 2016-17

Credit Linkage outstanding as on

31.12.2017No. Amt No. Amt No. Amt. O/S

Tripura Gramin Bank 17899 2351.71 306 283.74 20536 5610.92

TSCB 10125 529.50 41 39.69 8\5770 2647.76United Bank of India 6071 1426.52 487 74.66 3729 1659.63


State Bank of India 5172 283.93 303 103.15 3385 3413.06

Bank of India 121 29.73 24 27.33 - -

UCO Bank 231 139.06 59 38.19 130 111.37Central Bank of India 43 1.98 - - - -

IDBI 3 1.00 3 5.30 3 5.30

Bank of Baroda 14 1.80 6 1.10 6 0.98

Total 39,679 4,765.23 1,229 573.16 33,559 13,449.0

2Source: SLBC

2.12.2. Promotion of Women SHGs in backward districts: During 2013, Govt. of India formulated a ‘Women SHG Scheme’ (WSHG) in identified Backward Districts and Left Wing Extremism affected districts of the country, basically with a view to saturate the districts with women SHGs. The broad objectives of the scheme were (i) to provide access to sustainable banking services to the poor households in rural hinterlands by formation and nurturing of women SHGs, (ii) to converge other development programmes aimed at poor women/households through these groups, (iii) to promote and support livelihood development programmes for the poor through SHGs and (iv) to socio-economically empower the poor women through these initiatives.

Dhalai and West Tripura districts have been identified for implementation of the scheme in the State. In Dhalai district, while 483 SHGs have been savings linked, only 187 SHGs have been credit linked, whereas, in West Tripura District, 513 SHGs have been savings linked of which as many as 405 SHGs have been credit linked. In Dhalai district, the promoting NGO Anjali Micro Finance Ltd. suddenly left the scene and the groups were left without any handholding. Rising to the occasion, NABARD took the decision of roping in a Kolkata based NGO SPADE to do the role of SHPI for 300 new groups as well as revival of 300 WSHGs promoted by Anjali MFL. This decision has been ratified by the SLBC and DCC will also be kept in the loop.

Further, in order to create sustainable livelihoods amongst SHG members of WSHGs, a Livelihood and Enterprise Development Programme (LEDP) was launched in West Tripura district under which the women were given intensive hands-on training in Mushroom Cultivation, Pig Rearing and Bamboo Mat Weaving.

2.12.3. Digitisation of SHGs:


In line with Government of India’s Mission for creating a “Digital India”, NABARD launched a Pilot Project called “E-Shakti” for digitization of all SHGs in selected districts. Initially, Ramgarh (Jharkhand) and Dhule (Maharashtra) were taken up in Phase I. The exercise has been successful inasmuch as all stakeholders including bankers got access to data relating to all functions SHGs in the district which resulted in increased credit flow to these SHGs.

After successful implementation of Phase I, 23 more districts were taken up in Phase II including West Tripura in the State. As on date, the data, collected through the animators of Voluntary Health Association of Tripura, and duly audited, in respect of 400 SHGs have been uploaded on the dedicated website 'eshakti.nabard.org'. Further, the data on realtime basis is being uploaded on to the portal by the animators through android mobile handsets provided to them by NABARD. All the stakeholders TRLM, Banks, NGOs will have access to the data on SHGs. Further, the data in respect of the SHGs promoted by NERLP is being uploaded by NERLP on their website.

In the third phase, out of 75 ditricts across the country, Gomati district of Tripura has been taken up for digitization of 1000 SHGs promoted by the TRLM under NRLM.

2.13. Joint Liability Groups (JLGs)a) Financing of landless, small and marginal farmers, oral lessee and share-croppers has been provided renewed thrust with the announcement of financing 5 lakh Bhoomi-heen Kisan in JLG mode by Hon’ble Union Finance Minister in his Budget speech for 2014-15. The concept of JLGs was mooted on the basic premise of collateral free financing based on mutual guarantee - yet another effective mode of financial inclusion. This segment though engaged in agricultural production remained outside the banking services due to lack of title of the land. These small groups of 5-10 farmers may be prove to be a breakthrough for bank finance in a segment so far has remained outside the banking proposition. Instead of on a sporadic basis, these JLGs also need to be promoted on cluster basis so that they may graduate into FPOs at a later stage. The State Government may also explore the feasibility of issuing cultivators license/loan eligibility certificates to


these types of farmers, which will facilitate credit linkage of the JLGs.

b) The concept of JLG financing is gaining momentum in the State. As on 30.9.2017, 8794 JLGs have been formed and extended loans of Rs.113.00 crore. There is vast potential to tap by the banks to finance through JLG mode. While the TGB and TSCB has taken the giant lead in nurturing and financing JLGs (8794 JLGs), other banks are closely following them.

2.14. Farmers’ Club Programmea) As an informal association of farmers from a village, the Farmers Clubs have been entrusted with a wide range of activities that they can undertake for the overall development of the village. With no ceiling for the number of persons per club, they are different from SHGs. While the SHG members work and strive for the development of the members, the FC works for the benefit of the entire village community. Incidentally, the FC members may also undertake some activities that may further their economic status. The FCs potentially can act as a bridge between the banks, various developmental departments of the Government and the village people. The farmers’ club programme primarily aims at propagat-ing five principles of ‘development through credit’ focusing on transfer of technology from lab to land. It also advocates inculcating repayment ethics for uninterrupted credit flow to agriculture. b) Though as many as 331 farmers clubs have so far been established in the State with NABARD’s support, the success of farmers club largely depends on the taking over the ownership of the programme by the Branch Managers, their constant dialogue and rapport with Club mem-bers. The farmers’ clubs are considered to be the extended arms of the Bank branches and they act as bridge between the farmers and banks. c) The vibrant farmers clubs not only help branches in borrower ap-praisal but also help in recovery of loans. The members of Farmers clubs can be used as Business facilitators and promoters of SHGs and JLGs in their villages for tapping business potentials. The members of farmers clubs can be motivated to adopt technology through exposure visits which in turn is expected in off take of credit for hi-tech agriculture lead-ing further to creation of Producers’ Organizations (POs). The Krishi Bikash Farmers club at Bagma in Gomati District has not only been iden-tified as a BC/BF by Tripura Gramin Bank, but has also been registered as an FPO in the name of Bagma Agri Producers Development Trust. It is expected that other Farmers Clubs in the State also would follow suit.


d) However, sustaining their operations has been an issue that needs to be addressed by all concerned. Experience shows that after initial en-thusiasm, the clubs lose their interest. This happens when at times when the branch managers change, and if some of the common aspirations do not get addressed. While some farmers clubs continue to be vibrant even after 10 years of their establishment, such cases are far and few.

2.15. Financial Inclusion

2.15.1. Financial Inclusion is the 'process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular, at an affordable cost in a fair and transparent manner by regulated, mainstream institutional players'. Financial Inclusion and Financial Literacy are two pillars where Financial Inclusion acts on the supply side i.e. for creating access and financial literacy acts from the demand side i.e. creating a demand for the financial products and services. Unrestrained access to public goods and services is the sine qua non of an open and efficient society. Banking services are essentially for welfare of the public. It is imperative, therefore, that the availability of banking and payment services to the entire populace without discrimination is the avowed objective of public policy. Providing access to basic banking services is the first phase of the financial inclusion process.

2.15.2. In order to achieve the goal of ‘inclusive growth’, Government of India and Reserve Bank of India had taken up various initiatives viz., Nationalization of Banks, Expansion of Banks branch network, Establishment & consolidation of RRBs, Introduction of Priority Sector lending, Lead Bank Scheme, Formation of SHGs and State specific approach for Govt. sponsored schemes to be evolved by SLBC etc. RBI vide Mid-term Review of Annual Policy Statement for the year 2005-2006, advised Banks to align their policies with the objective of financial inclusion. Banks were advised to make available a basic banking 'No frills' account either with 'nil' or very minimum balances as well as charges that would make such accounts accessible to vast sections of population. Besides, it has been emphasized upon by the RBI for deepening and widening the reach of Financial Services so as to cover a large segment of the rural & poor sections of population. Further, with the objective of ensuring greater financial inclusion and increasing the outreach of the banking sector, RBI, in the year 2006, decided in public interest to enable the banks to use the services of NGOs/SHGs, MFIs and


other Civil Society Organizations as intermediaries in providing financial and banking services through use of "Business Facilitator and Business Correspondent Model".

2.15.3. Quoting World Bank Study Report of April 2012, RBI observed that India scored poorly on financial inclusion parameters when compared with the global average (RBI Annual Report 2012-13). The study said only nine per cent of the population had taken new loans from a bank, credit union or microfinance institution in the past year. In India, only 35 per cent have formal accounts versus an average of 41% in developing economies. Further, India also scored poorly in respect of credit cards, outstanding mortgage, health insurance, adult origination of new loans and mobile banking, RBI observed. Further, concurring with the recommendations of Nachiket Mor Committee, set up by RBI in Sep 2013, that nearly 90 per cent of small businesses and low income households had no links with formal financial institutions while 60 per cent of the rural and urban population did not have a functional bank account, and much of the credit needs of the economy came from the informal sector, RBI has issued guidelines for setting up of 'Payments Banks' and 'Small Banks' for furthering financial inclusion. While Small banks will provide basic banking products such as deposits and supply of credit, but in a limited area of operation, Payments banks will leverage on technology and provide a limited range of products such as acceptance of demand deposits and remittances of funds with a widespread network of access points particularly in remote areas.

2.15.4. NABARD’s initiative to support Financial Inclusion

NABARD has been involved itself in supporting Financial Inclusion from the very beginning. The Financial Inclusion Fund (FIF) and the Financial Inclusion Technology Fund (FITF) were set up in NABARD, with contributions from NABARD, RBI and the GoI to facilitate implementation of the FIPs of the banks. While the FIF is basically used for spreading awareness and literacy about the financial matters amongst the targeted population, the FITF is used for introducing technology for achieving the overall goal of total financial inclusion. With effect from 2015, both the above funds have been merged into Financial Inclusion Fund (FIF). The details of support available from FIF are enumerated in Paragraph No.2.7.3 above

2.16. Pradhan Mantri Jan-Dhan Yojana (PMJDY)

http://www.business-standard.com/search?type=news&q=Financial+Inclusion


(a) Pradhan Mantri Jan-Dhan Yojana (PMJDY) which is a National Mission for Financial Inclusion was launched on 15 August 2014. This has an ambitious objective of covering all households in the country with banking facilities and having a bank account for each household by January 2015. Some of the benefits under PMJDY include issue of debit cards, accident insurance cover of Rs. 1 lakh, life insurance cover for Rs. 30,000/-, no restrictions on minimum balance, remittance to any place in India, overdraft facility on completion of 6 months of satisfactory operation of the accounts, linking to Aadhar Card, facility of Direct Benefit Transfer, etc. The PMJDY was implemented in the State in a mission mode and as at the end of November 2014, after completion of survey of all 1,53,86,853 households, the State has been declared as 100% covered with bank accounts.

As on 17.11.2017, as many as 8,44,511 accounts (including 609162 rural and 235148 Urban) were opened under PMJDY. The total amount deposited in these PMJDY accounts, was to the tune of Rs.663.50 crore. Of these, while in respect of 724,269 (85.76%) accounts, RuPay cards were issued, as many as 740,073 (87.63%) accounts were Aadhar seeded.

(b) Workshop on PMJDY: In order to provide an opportunity to the bank officials from North East Region, for sharing their experience, cross learning and threadbare discussion on the ground level issues connected with the implementation of PMJDY in various states, the Bankers Institute of Rural Development, Lucknow organised a two day Workshop on PMJDY at Agartala on 30 & 31 January 2017.

2.17. Jan Dhan se Jan Suraksha:

To service the PMJDY accounts and also in order to reach out the social benefits of banking and insurance and pension to the vast section of the society, Govt. of India envisaged 3 products viz. Pradhan Mantri Suraksha Bima Yojana(PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana(APY). The above schemes were made operational from 01 June 2015. The total enrolment under these three schemes for the State of Tripura, as on 31.12.2016, was 5,29,787 as detailed in the following table:

Table No. 2.13: Total Enrolment under 3 Social Security Schemes as on 30.9.2017

Institution No. of accountsPMSBY PMJJBY APY Total

PSB 1,50,560 56,184 8,024 2,14,768


TGB 1,62,336 56,414 4,648 2,23,398Private Banks 1,878 752 635 3,265TSCB 7,795 1999 25 9,819Total 3,22,569 1,15,349 13,332 4,51,250

Source: SLBC

2.18. Pradhan Manthri Mudra Yojana (PMMY)

Pradhan Mantri MUDRA Yojana was launched to “fund the unfunded” by bringing such enterprises to the formal financial system and extending affordable credit to them. PMMY will cover Non-Farm Enterprises in manufacturing; trading and services whose credit needs are below Rs.10.00 lakh. The overdraft amount of Rs. 5000/- sanctioned under PMJDY can also be classified as Mudra Loans under PMMY. MUDRA loans are classified into three broad sectors viz., (i) Shishu: loans up to Rs.50,000/-, (ii) Kishore: loans above Rs. 50,000/- and up to Rs.5.00 lakh and (iii) Tarun: loans above Rs. 5.00 lakh and upto Rs.10.00 lakh. All Loans/Advances granted on or after 08.04.2015 falling under above category be classified as Mudra Loans under PMMY.

As at the end of 30.9.2017, the total achievement under PMMY was Rs. 520.51 crore in respect of 1,44,580 entrepreneurs, which is 108% of the target allotted to the banks in the State of Tripura.

MUDRA Promotion Campaign

At the initiative of Central Government for promotion of MUDRA Scheme and creating awareness among the people and to give fillip to Digital India, SLBC Convenor Banks organized Financial Inclusion Camps at 52 locations across the country during 2.102.017 to 27.10.217. In Tripura, the camps were organized on 14 October 017 at Agartala, 25 October 2017 at Dharmanagar and 27 October 2017 at Udaipur. The successful borrowers who have availed MUDRA loans from various banks shared their experience on starting ventures and availing loans from banks.

2.19. Stand-Up India In order to promote entrepreneurship among Scheduled Castes/Schedule Tribes and Women, a scheme christened ‘Stand up India Scheme’ was launched by the Hon’ble Prime Minister on 05 April 2016. The Scheme facilitates bank loans between Rs.10 lakh and Rs. 1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a Greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and


controlling stake should be held by either an SC/ST or woman entrepreneur. The broad features of the scheme are as under:

(i) Composite loan between Rs. 10 lakh and upto Rs. 100 lakh, inclusive of working capital component for setting up any new enterprise

(ii)Debit Card (RuPay) for drawal of working capital.(iii)Credit history of borrower to be developed. (iv) Credit Guarantee – aligned with existing CGTMSE norms. (v) Handholding support for borrowers with comprehensive support

for pre loan training needs, facilitating loan, factoring, marketing, etc.

(vi) Web Portal for online registration and support services.

As on 31.3.2017, as against the target of 2 new sanctions per branch, loans to 87 SC/ST/ Women entrepreneurs amounting to Rs. 1399.20 lakh were sanctioned. During 2016-17, 41 (18 SC/ST and 23 women) borrows have been assisted with loan of Rs.698.97 lakh. As expressed by banks in the SLBC forum, due to geographical isolation of the state, borrowers with project profiles of Rs.10.00 lakh to Rs.100.00 lakh are not finding it feasible to set up greenfield enterprises in the state.

2.20 Major Government Initiatives for MSMEs in 2017 Digital MSME Scheme to help units tap Cloud Computing as a cost

effective alternative to in-house IT Infrastructure Support package for Micro and Small Enterprises – corpus of

Credit Guarantee Trust Fund hiked to Rs.7500 crore from Rs.2500 crore, loan coverage under Credit Guarantee Scheme doubled to Rs. 2 crore; coverage of CGS extended to micro and small enterprises.

Technology Centres being set up in Puducherry, Vizag, Rohtak, Durg, Baddi, Bhiwadi, Bengaluru and Sitarganj.

Portals for delayed payment and public procurement launched; http://samadhan.msme.gov.in and http://sambandh.msme.gov.in

India uAE agreement for cooperation I SMR and innovation

2.21. Summing UpIn addition to the excellent natural resources available in the State as mentioned in Chapter-1, the State is also blessed with the presence of a good network of financial institutions, which are necessary for implementation of various development projects. Though the commercial banks are financially strong, they are also plagued with rising NPAs. This

http://sambandh.msme.gov.in/

http://samadhan.msme.gov.in/


is acting as a deterrent in upscaling their lending operations. The TSCB and PACS/LAMPS have certain inherent inadequacies, most important being lack of professional management, poor recovery and inability to adapt to the changing environment by diversifying their loan business. There is an urgent need to address the problems of the banking sector by all concerned. Such a step will ensure that these financial institutions are once again put back in a position where they will be able to fulfil the development targets of the State.


Chapter 3NABARD’s perception on the development perspective of the

State.

“ … real development can not ultimately take place in one corner of India while the other is neglected.”

Pandit Jawaharlal Nehru

3.1. Perspective has a Latin origin meaning "look through" or "per-ceive," and all the meanings of perspective have something to do with looking. Perspective, very simply, means a point of view. It is the way you see something. This chapter brings out how NABARD looks at the devel-opment of agriculture and rural sector in Tripura.

3.2. The context The canvass for building up this perspective is agriculture growth which touches more than two thirds of lives in the state, and the broad context is investment planning for the sector. Although this development per-spective of NABARD is a part of the State Focus Paper (aggregation of the district wise Potential Linked Credit Plans) for the year 2018-19, it is a culmination of ‘years of experience of working’ in Tripura in partner-ship with the State, the financial institutions, Non Governmental Organiz-ations and the Corporate Entities. This is not merely an arithmetic exer-cise of consolidation of projections, though numbers are extremely essen-tial for planning and goal setting, as also review of achievements. This perspective has been put together based on the NABARD’s institutional philosophy and finances, State’s vision and policies, consultations, discus-sions with bankers/ partners, churning of data, field studies and observa-tions. In this sense, it is a ‘shared perspective’ with three dimensions viz., the state, the banks and the NABARD, who are working in their own way and also in partnership. This perspective, hopefully, will provide ideas for further collaborations and platforms.

3.3. What does this development perspective cover ?Growth can be perceived from many angles. This perspective however, is focused on three essential components for growth viz., investments, infrastructure and Institutions (financial as well as non financial). All the three are closely linked. Finding out ways and means for convergence among the three components is the primary objective of this exercise. Put simply, how can investments converge on infrastructure and leverage on institutions to help farmers to improve their productive capabilities, get


more incomes and enhance quality of life (the basic objective of investment) is the subject matter of this chapter.

3.4. National Scenario: Being stable macro economy, Indian economy, despite various constraints including demonetization, is likely to be fastest growing economy in 2017. In respect of Rational Investor Rating Index (growth vis-à-vis macro economic vulnerability, India is favourably placed. With close to 7% growth during the last 3 years, India stands out as an investment heaven for FIIs due to macro economic stability and an outpost of opportunity amidst weaker external environment. The inflation remained quiescent hovering within the RBI’s target range of 4-6%. However, the major outlier was the prices of pulses (30% CPI and 40% WPI). Despite deficit monsoon, the total food grains production during 2015-16 was 252.23 million tonnes as against the target of 261 mt. GoI has set an ambitious target of producing a record 270.1 million tonnes of foodgrains during 2016-17. With 146.31 million tonnes milk production, though India ranks first with 19% share in the world’s milk production, milk productivity per animal is far less than the average in developed dairy nations. This calls for a concerted approach on implementing technologies which could result in enhanced milk production/productivity.

Tripura3.5 The landlocked state of Tripura, surrounded 84% by Bangladesh, had successfully come out of insurgency problems and is poised to be-come the highest literate state surpassing Kerala. Economy of Tripura is basically agrarian and characterized by low capital formation, in-ad-equate infrastructure facilities, geographical isolation and communica-tion bottleneck, inadequate economic exploitation and use of forest and mineral resources, low progress in industrial sector and high un-employ-ment problem. But the stable political situation and good governance to-gether with reliable power supply, adequate presence of banking outlets, good road network and good natural resources, are trying to take the State forward. Tripura, economically speaking, is a sleeping giant with good domestic internal demand with 36 lakh population and abundant in fruits, ginger, turmeric, etc, & is poised to develop, if the rail connectiv-ity improves with access to the port city of Chittagong in Bangladesh through Sabroom in South Tripura.

NABARD: A financial institution with a difference3.3. A 35-year-old institution, NABARD has evolved itself from a refinan-cing agency to an institution which ‘thinks’ and also does a ‘hands on


work’ on agriculture and rural development. It is a financial institution which is people centric in conceiving, piloting and mainstreaming a range of initiatives, products and delivery methodologies. Activities of NABARD now range widely, from formation of financial capital to build-ing social capital; from micro-finance to infrastructure finance; from credit planning to supervising and building up financial institutions and helping them find their own space in the overall banking architecture. NABARD thus balances its finance and development functions in sync with the financial and real sector challenges relating to agriculture and rural development.

Is agriculture still important in the State?3.6 Though the State is making concerted efforts to build manufacturing and services sectors as well, with as many as 10 Designated Food Parks identified in the State to further industrialization, however, in the near future, agriculture will continue to be the major sector on whose growth the State’s economy will largely depend. Of many reasons, the livelihood is the most important. The average annual growth rate in real terms of Gross State Domestic Product (GSDP) for 2014-15 @ 9.2% (ahead of national average of 7.9%). Further the share of agriculture and allied sector in the State GDP continues to be very high @32.36% during 2015 as compared to 17.6% all India. With the forests covering 60% of the State, only 27% of the land is available for cultivation, coupled with the increasing population, the pressure on the existing agriculture land is immense. Further, 95 percent of total operational holdings in the State are below the size of 2 hectares constituting 75% of the operated area. All these features make agriculture a challenge in the State.

3.6.3. Without development of agriculture, industry cannot flourish. The production and productivity of a few crops (esp. Paddy) in the state has increased over the years, thanks to the implementation of the Perspective Plan 2000-01. Reducing incidence of poverty, increasing incomes, reduc-ing income disparities and maximizing opportunities for sustainable em-ployment, are at the core of development strategy. It is often said, surest way of inclusive growth is accelerating agriculture growth! As is said elsewhere, while we may or may not need a doctor, a scientist, an engineer, a banker, a politician and others in our lifetime, but we definitely need a farmer at least three times a day. Hence, no matter


what the statistics says, agriculture sector still remains relevant every-where, more so in Tripura.

3.7. Investment in AgricultureEvidence suggests that multiplier effect of investments in agriculture is four times as effective as other sectors in reducing poverty (Ravallion and Datt et all 2003). Investment in agriculture comes from two streams, public and private. Both are extremely relevant in the context of Tripura.

3.7.1. Public Investment In order to make agriculture a profitable proposition, Government of Tripura had made conscious efforts in the past and made sizeable investment in various sectors viz., irrigation, power, agriculture, etc.

(a) Irrigation: Realising the fact that water is vital to agriculture, Govt. of Tripura had attached lot of importance to investments in irrigation. By ensuring coverage of more cultivable land under assured irrigation, the Govt. also aimed to increase cropping intensity, thereby optimizing the utilization of the limited land resources for improvement of the socio economic condition of the rural masses. The details of area brought under assured irrigation in the State are depicted in the following chart. As can be seen from the Chart 1, there was substantial investment in irrigation by the State Government during the period 1992 to 2012.

Chart.1. Area Brought Under Irrigation since 1952 (Ha)

Source: Economic Review of Tripura 2014-15.


(b) Power: Performance of all important sectors, ranging from agricul-ture to commerce and industry as well as social sectors like health are largely depends on the desired availability of quality power. In the mod-ern scientific world, consumption of electricity is an index of develop-ment for measuring the standard of living of the citizens. Despite its geographical, economic and infrastructural bottlenecks, the progress in power sector in the State has been quite impressive. Of the two major sources of power generation, gas based thermal power accounts for 93% while remaining 7% is generated from hydel power (Gomati Power Project). The Unit-I of Palatana power project, a gas based thermal power project by OTPC (ONGC Tripura Power Corporation) which has since been commissioned, has the initial production capacity of 726.6 MW. It is one of the biggest projects in NER and is expected to stimulate economic growth of the region.

© Agriculture: Implementation of the 10 year Perspective Plan formu-lated by Govt of Tripura can be considered as one of landmarks in the Agricultural history of Tripura. The Perspective Plan had emphasised on (i) Self-sufficiency in HYV certified seed production, (ii) Varietal replace-ment, (iii) Enhancing consumption of plant nutrients, (iv) Exploitation of full irrigation potential, (v) Availability of adequate farm power, (vi) dis-tribution of farm machinery viz., power tillers, paddy reapers, paddy transplanters at subsidised rates, (vii) new technology to farmers (SRI method), (viii) Flow of Institutional credit, (ix) Training & retraining of farmers, etc. The achievements of implementation of the Plan were note-worthy as can be seen from the following table:

Table 3.1 : Comparative position in achievement in Agriculture in the State

S.No Component Position in1999-2000 2014-15

1 Certified HYV Paddy seeds production (Tons)

0.00 4322

2 HYV Paddy Seed Replacement Rate % 2.80 333 Usage of Chemical fertiliser (kg/ha) 25 604 Usage of Bio fertilisers (Tons) 1.4 15005 Area coverage under SRI method (ha) 0 853006 Area under assured irrigation(ha) 52197 1135977 Disbursement of crop loans by banks (`

crore)15.15 267.95

8 Cropping Intensity (%) 169 1899 Production of food grains (lakh tons) 5.13 7.68

Source: Economic Review of Tripura 2014-15


3.7.2 Private sector investment in agriculture (a) At national level, CSO data suggest that agriculture credit purveyed by the banks contributes nearly 85% of the private sector investment in agriculture. Credit does not directly enter as an input into the agricultural production process unlike physical inputs. It serves as a facilitator and plays an important role in farmers’ production decisions and adoption of technology. What is and what should be the role of rural credit is a matter of debate. There are two broad schools of thought. While the ‘finance’ school or the ‘banks’ school, emphasizes on importance of financial viability of lending institutions, appropriate pricing of credit, removal of subsidies, mobilization of savings etc., The ‘development’ school on the other hand, advocates the need to steer rural credit into productive projects, and into the hands of the rural poor which have higher returns to the economy. Considering that agriculture credit has a tendency to gravitate towards more developed regions and better off clients, unless steered appropriately, achieving a fine balance between the two schools of thought (though not very easy to work out on ground) is essential.

(b) Contribution of Banks in the State

Agriculture lending in the State by the banking sector has increased rapidly in volumes during the last 7 years (Chart 1). Especially, during the last five years, the CAGR in agriculture lending was impressive @31.86%. During the period from 2011-12 to 2015-16, the banks have invested a total amount of Rs. 4,217.05 crore in Agriculture and Rs. 10,324.86 crore in Priority Sectors in the State. In addition, a further sum of Rs. 1,296.82 crore for Agriculture sector and Rs. 2,865.07 crore for Priority Sector has been committed by banks for the year 2016-17. However, the average per ha credit disbursement in Tripura State during 2015-16 remained subdued at Rs.10,492 as against national average of Rs. 34,027. The details of flow of institutional agriculture credit in the state since 2008-09 is depicted in the following chart.

Chart 2: Flow of agriculture credit in Tripura (` crore)


© Share of Agriculture Term lending For sustainable agricultural growth, making finance available for both, the working capital and acquiring/replacing assets in the form of capital stock is crucial. The ratio of Crop Loans to ATL issued during 2015-16 and 2016-17 was clearly in favour of ATL in the ratio 15:85. This is in stark contrast when compared to most of the other States both in main land and in North East. Perhaps this could be due to poor ‘per ha credit’ given for crop loans as discussed in the earlier paragraph. While there is still good scope to increase crop loans by increasing credit per hectare, we need to broad base the Agriculture Term Loans.

Indebtedness – a quick look at the recent evidence 3.8.1.As per the latest survey results of the National Sample Survey (NSS) 70th round, the survey covered 104 villages and about 1,450 households in each of the two rounds. Information as on 30 June 2012 was collected for several indicators such as Average Value of Assets (AVA), Average Amount of Debt per household (AOD), Incidence of Indebtedness (IOI) and Average Amount of Debt per household with outstanding Loan (AODL) and Debt Asset Ratio (DAR) has been attempted here. Survey results are a wealth of information which need to be studied in depth. However, a quick analysis of few indicators has been attempted below, just to get a flavour.

a) For purpose of comparison, the statistics in respect of Delhi State have been omitted due to negligible presence of cultivators there.

b) The Average Value of Assets of the rural households in Tripura was ob-served to be the least in India at Rs.2,78,635 as against the all India average of Rs.10,06,985 and North East average of Rs.6,36,515.

c) The ‘reported indebtedness’ (IOI) of cultivator households at the all In-dia level was about 46%. As against the all India average, incidence of


indebtedness in Tripura was about just 4.73%, lowest when compared to the states in mainland and second lowest in North East, the lowest being Nagaland (@2.83%). The highest IOI was in in the State of Telangana @73.5% followed by Andhra Pradesh (69.99%), Kerala (68.07%), Goa (63.09%).

d) The average amount of debt (AOD) per household was negligible in the State (`386 for cultivators and Rs.3,677 all categories put to-gether) as against the all India level AOD of Rs.0,580. The highest in India was in Kerala @ Rs.4,41,589. The AOD in respect of cultivators in other NER States was Meghalaya, Rs.2,872, Nagaland Rs.3,800, Arunachal Pradesh Rs.4,386, Manipur Rs.5,849, Mizoram Rs.6,915 and Assam Rs.7,856. This data suggests that indebtedness in Tripura State is highly comfortable from the bankers’ point of view.

e) Further, the Average Amount of Debt per household with outstanding Loan (AODL), @ Rs.8,168 in respect of rural cultivator household and @ Rs.36,912 in respect of rural non-cultivators was amongst the lowest in India. The relative figures for All India average were Rs.1,53,640 and Rs.89,221 respectively.

f) Similarly, in respect of Debt Asset Ratio also the DAR of Tripura State at 0.07% in respect of rural cultivators was the lowest in the country, as against the all India average of 2.46%. This indicates lesser risk to deal with and higher borrowing capacity of the households. A ratio greater than 1 indicates that a borrower may be putting himself at risk of not being able to pay back its debts, which is a particular prob-lem when a business is located in a highly cyclical industry where cash flows can suddenly decline.

g) Out of the average value of assets for the rural households in Tripura at Rs.2,78,635, land and buildings@ Rs.2,37,208 form about 85% (oth-ers being livestock 2.8%, transport equipment 3.5%, bank deposits 6.9%, farm business equipment 0.97%, non-farm business equipment 0.57%). This shows that there is good scope for asset creation under livestock, poultry, farm business equipment, transport equipment, etc.

h) The above data also point towards the low CD ratio of the State.i) The details of Average Value of Assets, Incidence of Indebtedness, Av-

erage Amount of Debt per Household, Debt Asset Ratio, etc., of Tripura State vis-à-vis other States is presented in the following table:


Table No. 3.2 - Average value of assets for the cultivator households(Amount in `)

Major States

Average Value of Assets (AVA)

Incidence of Indebtednes

s(IOI) (%)

Average Amount of Debt per

household (AOD)

Average amount of debt per

household with

outstanding

Loan(AODL)

Debt Asset Ratio(DAR)

A.P. 9,12,435 69.99 1,30,599 1,86,596 14.31Gujarat 51,51,266 42.60 53,717 1,26,109 1.04Karnataka 17,05704 55.74 83,987 1,50,670 4.92Maharashtra

25,22,934 55.80 68,532 1,22,818 2.72

Rajasthan 19,14,163 46.33 72,453 1,56,375 3.79Bihar 21,79,910 40.99 48,674 1,18,734 2.23West Bengal

15,52,277 17.56 10,333 58,829 0.67

North EastMizoram 421270 5.59 6915 123652 1.64Assam 973204 14.12 7856 55640 0.81Manipur 769756 9.91 5849 59013 0.76Arunachal Pradesh

1120666 5.28 4326 83143 0.39

Meghalaya

773810 5.36 2872 53570 0.37

Nagaland 1309500 2.83 3800 134325 0.29Tripura 536924 4.73 386 8168 0.07All India 28,72,956 45.94 70,580 1,53,640 2.45

Source: Table No. 2-R: Key Indicators of Debt and Investment in India, NSS, 70 th Round. NSSO, December 2014

3.8.2. The available data/indicators suggest that in the space of term lending, unlike many States, both in main land and in North East, Tripura was way behind other states and had not reached a stage where the banks have to be worried about over indebtedness or excess leveraging on the agriculture incomes or existing assets. On the contrary, the consistent rate of growth of agriculture and substantial improvement in the volumes of rural deposits are such indicators which could be built into business strategy suitably by the banks to increase their lending business. Considering that nearly 80% of bank branches are rural/semi urban, finding business within agriculture is inevitable.


3.8.3. Problems in increasing Agriculture Term LoansThere could be number of reasons, some could be general, while some could be area specific. These need to be addressed at all levels.

i. Basically, as the farm size is declining everywhere, the very viabil-ity of farming itself is an issue. Naturally, undertaking long term investments by small and marginal farmers appears a difficult proposition.

ii. The incidence of NPAs is a deterrent. But NPAs are a reality and cannot be wished away. However, NPAs are not limited to agricul-ture term lending only. In many cases willful default was the cause and not necessarily intrinsic problems of viability of agriculture lending. However, the recovery position of the banks is not all that bad. In fact, the recovery position of the banks as on 31.03.2017, especially under Agriculture Sector, had improved over the years. It is gathered that the demonetization exercise has actually helped in improving the recovery. The overall recovery position of the banks during the last 5 years was as under:

Table: 3.3. Recovery position of the banks during the last five years

SectorRecovery(%) as on

31.03.2013 31.03.2014 31.03.2015 31.03.2016 31.3.2017

Agriculture 49 60 62 62 69MEME 48 53 57 60 73OPS 70 67 63 67 44Total 54 59 60 62 63

Consequently, the NPAs of the banks have decreased from 6.37% as on 31.03.2014 to 5.82% as on 31.03.2016 and further to 5.64% as on 31.3.2017. Understandably, there are constraints such as overbur-dened branch managers, limited field support, limited capabilities of trained staff in appraisal and an uncertain direction from the control-ling offices. These problems can be overcome. In banks recruitment of staff has already commenced and their training and capacity building can be addressed quickly.

3.9. Means and Ways to accelerate investments in agriculture in the state

Under the circumstances, if investments in agriculture have to accelerate in the next couple of years, special efforts are needed. The strategies have to take into account all constraints.


a) Potential Linked Credit Planning: NABARD as a regular exercise, brings out block wise district wise potential (in physical numbers and in value terms) through Potential Linked Credit Plans (PLPs) annually. To make the exercise simpler for the banks, as a part of this paper, a few illustrative projects/investment activities which can help to give required boost to the ATL financing have been identified in the PLPs. These projects are designed to meet the localised investment needs or to leverage on the existing infrastructure/ public investment or on subsidies. The advantages of such area based projects (vis-a-vis sporadic individual projects) are in terms of scale/volumes for finance, bringing in all stakeholders on a common platform, possibilities of tie-ups and hence better prospects for repayment. This approach is a supplementary measure and is in addition to the usual ‘walk in business’.

b) Encouraging TSCB and TGB: In order to cross subsidise their funds, concessional refinance @4.50 for ST and 4.65% for LT funds was made available to them for term lending during the year 2016-17 and 2017-18. It is expected that the scheme would continue during 2018-19 also.

c) Support Services: For enhanced productivity of credit, financial sector initiatives must be harmonized with the real sector initiatives. When the real world is characterized by constraints such as low seed replacement rates, uncertain input quality, indifferent extension services, problems relating to land laws & tenancy related issues, weak prices, need for better and more affordable productivity risk mitigation initiatives etc., merely enhancing the flow of credit will not yield the expected results. Support services including infrastructure, storage, processing, marketing, regulatory mechanisms for ensuring quality of inputs and reorienting extension services to enhance the impact of credit need to be put in place. It is not enough to ensure credit growth but it should lead to desired impact on ground.

3.10. Converging on Rural Infrastructure a) Efficient infrastructure is essential for increased productivity of

land, capital and labour. Especially in the context of accelerating agricultural growth, investment in rural infrastructure has become a precondition, as it facilitates opening of new economic opportunities, generates additional employment, enhances credit absorption capacity and involves delivery of several other directly and indirectly related services. Efficient infrastructure therefore


holds the key to improving the quality of life and reducing vulnerability of poor. Conventionally public investment is seen to be the provider of rule infrastructure. It is evident that public investment has an enabling and encouraging effect on the private investment and that lack of public investment in infrastructure, influences viability and effectiveness of private investment adversely.

b) Supporting creation of rural infrastructure is an area where the interests of the State and NABARD converge. NABARD’s involvement in Tripura State, out of Rural Infrastructure Development Fund (RIDF) is about Rs.1,963.11 crore, covering 2,034 projects in the state. Over the years, RIDF has become the major source of rural infrastructure financing for the state. Encouraged by the state's response and gaining from the experience of implementation of RIDF, NABARD is diversifying its activities and strategies for rural infrastructure.

3.11. The way forward.....i. Experience gained so far suggests that a relatively longer term

perspective needs to be built for creation of rural infrastructure. Whereas the GOI is seized of the matter and would take suitable policy steps, NABARD would like to initiate an exercise for preparing implementable plans on pilot basis for rural infrastructure creation, keeping in view the resource convergence. Such an exercise would also help in better understanding the demand side of rural infrastructure. If the State Government is willing, a pilot exercise in preparing a perspective plan can be jointly undertaken by NABARD.

ii. To enhance the contribution of infrastructure in agriculture growth, it is necessary to align the strategy of infrastructure development with the overall agriculture growth strategy. Infrastructure development will have to take into account the structural constraints of agriculture, the small farm orientation of agriculture, the need to improve their incomes, providing decentralised infrastructure services and focusing on creation of postproduction infrastructure in warehousing, cold storage and marketing which are essential in the wake of supply-side constraints, faced by the economy. Promoting appropriate infrastructure projects which can lead to value addition in agriculture and reduce pre-and post harvest losses also has become very important. Experience so far


shows that coping with future challenges in developing infrastructure involves much more than drawing inventory of infrastructure stocks and plotting the needed investments on the basis of past patterns. It involves tackling inefficiency in both, investment and delivery services. In short, the concern needs to be widened from increasing the quantity of infrastructure stocks to quality of infrastructure services. Benefiting from these complementarity and convergence across the subsectors/sectors is possible only if investments are made with systematic planning and prioritisation.

iii. RIDF as a funding mechanism has more than two decades history now. The idea was to give a boost to public investment in agriculture, though the resources were found elsewhere, not in the budget. Resources which were to be put in the agriculture sector through the banking channel (private) were rerouted through the public investment channel. It is, therefore, essential to try and find ways to ensure that the desired enabling effect is taking place on ground and the investments under RIDF create the required thrust for future investments. It is also necessary to ascertain whether the enabling effect contributes to reduced risk, better access to market, better prices for agricultural produce. In tune with this thought, while the choice of the projects for funding is and has been with the state government, the following suggestions are made.

a) The government may consider giving priority to projects having rel-atively shorter gestation periods, so that the benefits would accrue to the people at an early date. Last mile projects if any, could be prioritised for support under RIDF so that the sunk cost in these projects can be retrieved faster.

b) Investments in check dams and irrigation ponds could also be con-sidered on a priority. The recharge benefit could give rise to further investments in groundwater exploitation by private investments and help conjunctive use of available irrigation potential.

c) Off budget investments under rural infrastructure: NABARD Infra-structure Development Assistance (NIDA); State government or state-owned corporations may also avail assistance under NIDA, which is a flexible product having repayment period up to 15 years. This product is more suitable for corporations/federations having


regular income stream for taking up revenue generating and peo-ple oriented economic projects.

d) Recently, the Government of Tripura has approached NABARD for financial assistance under NIDA for improving certain rural infra-structure viz., upgradation of industrial estates, schools, etc.

3.12. NABARD’s financial contribution in the State

As a Development Financial Institution, NABARD has been playing a proactive role in the state. During the last five years, total assistance from NABARD which has gone into the state works out to `2,065 crore and it has been consistently on the rise. It also plays an important role in channeling the flow of credit to the desired sectors. A part of the financial sector needs are supplemented by its refinance wing. Financial assistance is also extended to the State Government to help it in meeting the infrastructure requirements of the rural areas. A snapshot of the financial assistance extended by NABARD in the State is presented in the table below. The share of NABARD’s involvement, (excluding RIDF) in the total priority sector GLC of the State during the period 2012-13 to 2015-16 has increased from 16.76% to 18.81% including RIDF and from 6.98% and 9.7% excluding RIDF.

Table No. 3.4. NABARD’s Financial Assistance to the State(Rs.crore)

Purpose 2013-14

2014-15

2015-16

2016-17

2017-18(31.12.201

7)Short Term Refinance 46.89 92.32 130.00 83.50 48.74Long Term Refinance 79.50 90.00 172.02 230.00 45.00RIDF, WIF 150.00 200.00 283.55 250.00 43.00Grants (Wadi, FIF, FCs, JLGs, etc)

0.11 0.51 6.55 2.83 2.50

Total 276.50 382.83 592.12 566.33 139.243.13. Non financial interventions of NABARD:

(a) Institutional development

NABARD serves the rural financial institutions (the cooperative banks and the RRBs) not only with refinance, but such support and services which enable them to find their own in the overall banking architecture. Refinance support helps the rural financial institutions to increase the flow of credit to meet the working capital needs and finance investments


in agriculture, leading to capital formation. The other kind of support/services aimed at building the capacity of the rural financial institutions, monitor their financial health, giving them the technology edge and make them competitive and sustainable.

For technology upgradation in TGB to operate in CBS environment, NABARD extended grant assistance of `10.85 crore. Further, during 2016-17, NABARD has committed grant assistance for (i) for conduct of digital Financial Literacy Awareness through Go Digital Programmes (dFLAP), (ii) towards implementation of Core Banking Solution of TGB (Rs.10.85 crore) and TSCB (Rs.1.30 crore), (iii) for setting up Solar powered V-Sat connectivity to Kiosk/Fixed CSPs in the Sub Service Areas, (iv) for Issuance of EMV chip based RuPay Kisan Cards for both TGB and TSCB, (vi) for micro ATMs, (vii) for deployment of PoS Terminals in Tier 5 and Tier 6 Centres, (viii) reimbursement of Monthly Commission paid to BCAs by TGB, etc. (xi) Mobile vans to TGB and TSCB for demonstration of digital financial literacy through micro ATMs, ATMs etc. (xii) Provision of handheld projectors and speakers to rural branches and FLCs for spreading financial literacy.

(b) Leveraging on ground level institutions

In the development strategies, peoples’ participation has been recognized as an effective delivery channel for reaching out to the last mile, underprivileged and unreached segments. NABARD’s strategy involves, creating ground level People's institutions; nurturing them; building their capacity; developing pilots for delivery of development inputs; linking these institutions to banking institutions; creating financial endowments and paving the way for up scaling. The experience shows that these informal institutions, once stabilize, emerge as ready platforms for delivery of a number of financial and non financial services leading to economic transformation, the empowerment and meaningful financial inclusion.

(i) Self Help Groups (SHG)

a) Though the SHG Bank linkage programme is more than 25 years old, it has not flourished in Tripura to the desired extent, although some good progress has been made in the recent past. The share of the State, as on 31 March 2017 in 79.03 lakh SB linked SHGs at national level is 39,679 SHGs (0.5%) only. As against the credit linkage of 46.73 lakh SHGs by banks with outstanding credit of Rs. 57,119.23 crore at national level, the share of the State constitutes 33,559 SHGs (0.72%) and Rs.


134.49 crore as on 31.3.2017. On the backdrop of prevalent poverty levels, tribal population in the rural areas and potential of formation and linkage of new SHGs, there is imperative need to provide thrust to up-scaling of SHG Bank linkage programme so as to improve the share of the State to commensurate level. At present, NABARD has been supporting NGOs for promotion of good quality WSHGs and NRLM is also providing fillip to the programme by providing interest subvention as well as incentive for prompt repayment in selected districts. In addition, DoNER is also promoting and nurturing SHGs under NERLP in the State. The GoI supported Women SHG programme in selected 2 backward districts (Dhalai and West Tripura) also aims at saturating the selected blocks with SHGs by 2017 and creating liveli8ood opportunities for rural women. Further, in order to create sustainable livelihoods amongst SHG members of WSHG programme, NABARD had organized a Livelihood and Enterprise Development Programme in West Tripura District, in which around 210 chosen women were imparted training in mushroom cultivation, pig rearing and bamboo mat weaving.

b) Besides credit linkage, the SHGs are also eligible for interest subvention of 3% for loans upto 3 lakh, provided the rate of interest charged on the loans are 7% and the repayments are prompt. This interest subvention scheme should help banks to improve their recoveries. Banks need to give wide publicity to the Scheme. A disturbing aspect of the SHG-Bank linkage programme in the State is the high level of NPAs. As much as 34.07% of the SHG loans outstanding are NPAs in the State, as against 16.49% at the NE level and 12.65% at the national level, which is not a healthy sign. This underlines the need for putting in place a strong foundation from the stage of group formation followed by capacity building, production, marketing.

c) SHGs Bank linkage programme may also be viewed from the perspective of effective mode of ensuring meaningful financial inclusion. The SHGs can also serve as extended arm of banks through BC/BF and help viable doorstep banking. They can also evolve as the second level peoples’ institutions like the Producers’ Organizations.

(ii) Joint Liability Groups (JLGs)

Though financing of landless, small and marginal farmers, oral lessee and sharecroppers through Joint Liability Groups (JLGs) has been in place since 2006, it was provided renewed thrust with the announcement in Union Budget speech for 2014-15 of financing 5 lakh Bhoomi-heen Kisans


in JLG mode. The concept of JLGs was mooted on the basic premise of collateral free financing based on mutual guarantee- yet another effective mode of financial inclusion. This segment though engaged in agricultural production remained outside the banking services due to lack of title of the land. These small groups of 5-10 farmers may prove to be a breakthrough for bank finance in a segment so far remained outside the banking fold. They also have the potentials to be converted into Producers’ Organizations with proper handholding and nurturing. Instead of on a sporadic basis, these JLGs also need to be promoted on cluster basis so that they may graduate into Farmer Producer Organisations at a later stage. The State Government may also explore the feasibility of issuing cultivators license/loan eligibility certificates to these types of farmers, which will facilitate credit linkage of the JLGs. In Tripura, the concept of JLG financing is gaining momentum. As on 30 September 2017, as many as 8794 JLGs have been financed by Tripura Gramin Bank and Tripura State Cooperative Bank with an aggregate loan assistance of Rs.113.00 crore for undertaking farm based activities. Other banks also need to concentrate on this mode of financing, especially in view of large untapped potential.

(iii) Farmers Club Programme

(a) The Farmers’ Club programme, conceptualized originally as Vikas Voluntary Vahini Programme way back in 1982, primarily aims at propagating five principles of ‘development through credit’ focusing on transfer of technology from lab to land. It also advocates inculcating repayment ethics for uninterrupted credit flow to agriculture. As an informal association of farmers from a village, the Farmers Clubs can also been entrusted with a wide range of activities that they can undertake for the overall development of the village. With no ceiling for the number of persons per club, they are different from SHGs that have come into existence much later. While the SHG members work and strive for the development of the members, the FC works for the benefit of the entire village community. Incidentally, the FC members may also undertake some activities that may further their economic status. The FCs potentially can act as a human bridge between the banks, various developmental departments of the Government and the village people. The vibrant farmers clubs not only help branches in borrower appraisal but also help in recovery of loans. The members of Farmers clubs can be used as Business facilitators and promoters of SHGs and JLGs in their villages for


tapping business potentials. The members of farmers clubs can be motivated to adopt technology through exposure visits which in turn is expected in off take of credit for hi-tech agriculture leading further to creation of Producers’ Organizations (POs).

(b) However, sustaining their operations has been an issue that needs to be addressed by all concerned. Experience shows that after initial enthusiasm and after NABARD’s financial support ceases, the clubs lose their interest. This happens when at times when the branch managers change, and if some of the common aspirations do not get addressed. However, with proper training and nourishment, the medium of FCs can be used successfully for the development of the State. Number wise, as on 31.3.2017, NABARD has supported 331 farmers clubs in the State.

(c) An offshoot and perhaps, one of the methods by which the FCs can be made sustainable, is to upgrade them into Farmer Producer Organisations. The club members in their individual capacity as farm producers have not been in a position to upgrade their living standards in spite of hard labour. Much of the fruits of their labour are cornered by the middlemen and traders. Limited production quantities, lack of access to market, inadequate credit, absence of storage facilities are some of the reasons for their sorry state of affairs. Organising them into Producers’ Organisations may, perhaps, solve much of the above problems. Towards this end in view, the Government has paved the way of financing the FPOs on a big scale. A corpus of Rs.200 crore was created in NABARD from the year 2014-15 under a fund viz., Producers Organisation Development and Upliftment Corpus (PRODUCE) Fund. The PRODUCE fund is specifically created with the objective of promoting and nurturing 2,000 FPOs. NABARD’s experience shows that significant capacity building and handholding is required before the FPO attains organizational, financial and commercial sustainability. It may require a gestation period of three years for generating meaningful returns to its members. This fund will therefore be used exclusively for taking care of these needs of the FPOs. The support under this fund will broadly cover the cost towards promotion of POs, capacity building, business planning, registration, MIS development, market linkages, administrative expenses of the promoting agency, interaction meets, documentation, research, publicity, monitoring etc. The activities and interventions out of this fund should finally result in product


improvement, increase in production and its marketing.

(d) With the active support of NABARD, the Krishi Bikash Farmers club at Bagma in Gomati District has been registered under Indian Trust Act as a Farmer Producer Organisation in the name of Bagma Agri Producers Development Trust and started its operations. It is expected that other Farmers Clubs in the State also would follow the suit.

(e) In view of the keen interest shown, the members of a few Farmers Clubs viz., Lakshmibai Farmers’ Club, Champaknagar, West Tripura were imparted training in production of Mushroom through Krishi Vigyan Kendra, Khowai with financial support from NABARD.

(iv) Livelihood promotion through Wadi

The high percentage of tribal population (31.75%) in the State calls for adoption of innovative methods for improving their living standards. Our experiments and successful intervention elsewhere in the country with WADI are worth replicating in Tripura also. The term ‘wadi’ refers to a small orchard. Under the programme, orchards with fruit crops viz., Mango, Guava, lemon etc., are developed in about one acre area each of tribals in clusters of villages. In addition, the tribal farmers are also encouraged to go in for inter cropping viz., vegetables, spices, etc., which yield quick income. The other issues viz., soil and water resources improvement, women development, livelihood development, etc., are also an integral part of the wadi project. After tasting fair amount of success in Gujarat, MP and other states, we made a small beginning in Tripura also. While in the lone WADI project in West Tripura, around 300 tribal families are covered involving our grant assistance of Rs.1.05 crore, we are in the process of establishing more number of wadi projects in the state. Once the horticulture crops start bearing fruits, naturally it would create a demand for storage, processing and marketing facilities for the produce. Their demand for higher doses of credit at this stage can be covered under the SHG/JLG model.

Another Wadi project has been sanctioned by NABARD for 300 tribal families in Kanchanpur RD block of North Tripura consisting of Reang (85%) and Chakma (15%) tribal communities.

(G) Capacity Building for adoption of Technology (CAT)

In order to enhance the capacity of the farmer club members, exposure programmes are organized/supported by NABARD so as to improve their


knowledge/technology which help them to improve their productivity in the chosen activities. About 5-10 such exposure visits covering 25-30 farmers per visit are conducted every year to research stations, KVKs, etc. Farmers are benefitted by the exposure to field level improved pack-age of practices which motivates them to adopt these practices resulting in increased productivity and production which led them to improve their income. This programme has proved to be very useful for the farmers as they will lead to adoption of proven practices which require funds and therefore a good avenue for the banks to increase their lending under agriculture.

3.14. Inclusion of excluded segment

Inclusion of the ‘excluded’ segment of people, especially in the ‘banking business’ is paramount in the agenda of GoI, RBI and NABARD. Financial Inclusion is the “process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular, at an affordable cost in a fair and transparent manner by regulated, mainstream institutional players”. Notable achievements have been made so far in the country, including Tripura State, thanks to the mission mode through which the scheme was implemented. Bringing banking closer to the door steps of one and all, especially the backward and vulnerable people, will not only improve the socio economic conditions of the people and the State, but will also increase the business of the banks. In order to attain total financial inclusion, especially in the wake of GoI's historic 'demonetisation' decision, NABARD had undertaken a various measures, the details of which are discussed in Chapter 2.

Summing up

3.1545 A development perspective, focused on three essential components of growth viz., investments, infrastructure and institutions (financial and non-financial) has been built up in the context of investment planning for agriculture and rural sector in Tripura. All the three aspects are closely related and if linked meaningfully, can give the necessary impetus to investments. Therefore, an attempt has been made to find ways and means to converge on infrastructure and leverage on ground level institutions to help farmers to improve their production capabilities, get more incomes and enhance quality of life.


CHAPTER - 4Potential Credit Outlay

4.1 Introduction

Credit is one of the prime factors, serving as a fulcrum in the wheel of development. As is the case of any other sector, there is a constant mismatch between the ‘demand for’ and ‘supply of ’ credit at various levels. The supply side is taken care of by various agencies like the banks, financial institutions, Government and informal institutions. The formal financial institutions (Banks) are an important source of credit dispenser. On the other hand, the demand for credit emanates from various players such as the common man and extends upto the big corporates. Many times, the same agency plays the dual role of supplier and seeker of credit. This chapter analyses the physical potential that is available for exploitation under various segments for development of the rural areas. The physical potential when converted into financial terms, gives a picture of the demand for credit. The banks and other agencies, purveying credit may accordingly draw up their business plans by factoring in this demand for credit.

4.1. Credit Potential for Agriculture

4.1.1. Farm Credit

1. Crop Production, Maintenance and Marketing

(a) Being the 3rd smallest state in the country in terms of area and only 27% of the total geographical area available for cultivation, coupled with ever increasing population, it becomes a challenge to become self sufficient in the production of food grains. As can be observed from Chapter I, Paddy is the main crop grown in the State (accounting for 56% of the total Gross Cropped Area of the State during 2011-12), followed by Horticulture Crops (including vegetables, fruits, flowers, spices, etc) 20.4%, Rubber 11.2%, medicinal and aromatic plants (6%), Pulses (1.8%), Tea (1.7%), Oil seeds (1%), and remaining Others. Despite various constraints, the state’s performance in crop production is notable. As discussed in Chapter 1, implementation of the Perspective Plan during 2000-01, had given much needed fillip to the Agriculture Sector and changed the agriculture scenario of the State. The notable achievement included (i) increase in area under assured irrigation from 52,197 ha in 2000-01 to 1,13,597 ha in 2014-15, (ii) increased food grains production from 6.12 lakh tons during 2004-05 to 7.61 lakh tons during


2014-15, (iii) reducing the gap between food grains requirement and production from 1.54 lakh tons to 0.19 lakh tone during the same period, (iv) increase in the flow of institutional credit to crop loans from ` 15.15 crore during 2004-05 to ` 239.79 crore during 2016-17.

(b) Though the State is targeting to be self-sufficient in cereals production, the deficit in Pulses and Oilseeds production is huge. As regards Pulses, against demand of 66,622 MT, the production was 5958 MT (Kharif + Rabi) during 2012-13. Similarly, in respect of oilseeds, as against demand of 1.23 lakh MT, the production during 2012-13 stood at 3620 MT (Kharif + Rabi) only. The deficit in production was the tune of 91% and 97% respectively. There is an urgent need to focus on increasing production of both Pulses and Oilseeds so as to ensure food security and nutrition to the population. Though the productivity of some crops grown the State has been improving over the years, as detailed in Chapter 1, there still exists scope for further improvement to match or surpass the national figures.

(C) Ground Level Credit Flow and PLP ProjectionsThe GLC flow to crop loans during the last five years vis-à-vis the targets was as under:

Table – 4.1 ACP Targets and Achievement (Rs.

lakh)Particulars 2013-14 2014-15 2015-16 2016-17 2017-18

PLP projections 49,257.36 57,491.38 68,385.94

77,118.13

150620.28

ACP Targets 49,256.36 57,491.34 68,385.94

77,118.13

150620.28

ACP Achievement 32,398.38 33,021.33 26,794.79

23979.00

12396.57

% achievement to ACP target 65.77 57.44 39.18 31.09 8.2*

Till 30 September 2017

As can be seen from the above table, the achievement of banks under crop loans under ACP, was way behind the targets fixed. Consequently, the average per ha credit disbursement in the State under crop loans during 2016-17 remained subdued at Rs.5,542.97 for Gross Cropped Area) and Rs..10,492 for net sown area as against national average of Rs..34,027. (d) Taking into account various factors such as revised scale of finance, area under cultivation, input supply, GLC during the past three years, etc., the projections under crop loan have been made at


Rs.163489.77 lakh. The crop wise physical and financial projections for the year 2018-19 are as under:

Table – 4.2 Crop-Wise Physical and Financial Projections (Amount Rs. lakh)

S.No Crop / Item Phy. Fin.1 Aush Paddy 31,979 14,795.422 Aman Paddy 104,517 59,276.533 Boro Paddy 44,410 28,179.354 Jhum Paddy 6,269 2,787.925 Total Paddy 187,175 105,039.226 Maize 152 57.237 Pulses 14,259 3855.718 Oilseeds 11,204 5,002.749 Spices 4956 3,244.3210 Vegetables 11,567 8,137.1511 Total (5 to 10) 229,313 125,336.3712 Post Harvest / Household / Consumption

requirement @ 10% of S.No.11 above12,751.80

13 Repairs and maintenance expenses of farm assets @ 20% of S.No.11 above

25,401.61

14 Grand Total (11 + 12 + 13) 163,489.77District-wise crop-wise physical and financial projections have been furnished in Annexure I.

(e) Issues and suggested Action Points

(i) Issues

a) Seed Replacement Rate (SRR): Although the state has performed well in SRR for Paddy and Mustard, there is scope to achieve the stipulated SRR of (i) 33% for self-pollinated crops, (ii) 50% for cross pollinated crops and (iii) 100% for Hybrid crops.

b) System of Rice Intensification (SRI): Tripura has been a pioneer in popularizing the SRI method of cultivation in the country. As productivity of food grains has increased by 30-35% in SRI system when compared to the conventional systems, more area needs to be covered under SRI. However, the area under SRI during 2014-15 @85,300 ha was lower when compared to 92,341 ha covered during 2013-14. Government of Tripura has announced coverage of 100,000 ha under SRI during 2017-18.

c) Increase in Pulses Cultivation: The state continues to be grossly insufficient in production of pulses. More area should be brought under pulses cultivation and technological interventions made for reducing the yield gaps. Inter-cropping of pulses with fruit and plantation crops can yield good result.


d) Increased adoption of HYV seeds: Though usage of HYV seeds gives better results, yet, small and marginal farmers find it difficult to use hybrid seeds on account of higher cost. Suitable interventions for increasing adoption of hybrid seeds by the small and marginal farmers are needed. Most of the hybrid seeds in India are produced and marketed by private sector. In order to ensure availability of seeds at affordable prices, especially to Small and Marginal Farmers, the government may consider procuring seed production and multiplication technologies from various international agencies and make it available to private sector as well as government agencies in India interested to work in the State so as to avoid huge investment in R & D by the private sector so that they can multiply seeds at low costs.

e) Increase in Cropping Intensity: Though the cropping intensity in the State is good (189% during 2014-15), there is scope for improvement through appropriate cropping sequence and diversification of existing cropping pattern. Ground water should be tapped through bore wells/shallow tube wells to bring more area under double and triple crop. Rain water harvesting and ‘Water Use Efficiency’ may be given importance for better results.

f) Usage of Chemical Fertilizers & Micro Nutrients: Non availability of chemical fertilizers from manufacturing plants/suppliers as per the need has to be resolved. As most of the farmers are not applying plant nutrients as per requirement of the crops, productivity of the crops is not upto the desired level. Further, in view of deficiency of micro nutrients – zinc, boron etc., farmers need to be encouraged to use macro and micro nutrients blended with organic manures, vermin-compost and bio-fertilizers, so as to maintain soil health and fertility. Extensive capacity building of farmers through programmes like Farmers Clubs of NABARD need to be undertaken for dissemination of recent technology. Capacity building of extension workers is also required.

g) Farm Mechanization: Use of farm machinery like transplanters, power weeders, drum seeders, power sprayers, etc., need to be popularised and incentives provided for adoption of technologies so as to resolve the labour shortage problem. Drip irrigation should be accorded special attention as it ensures water-efficiency in usage along with increase in productivity.


h) Sprinkler irrigation: Sprinkler irrigation may be accorded special attention as it ensures water-efficiency in usage along with increase in productivity in field crops.

i) Soil Health: As real benefit to the farmers would be available only when the soil samples are tested quickly and nutrient levels of soil is known, as announced in the Union Budget 2017-18, GoI will set up new mini labs in all 648 KVKs in the Country. In addition, credit linked subsidy will be available from GoI for the 1000 mini labs set up by qualified local entrepreneurs.

j) Strengthening Extension Machinery: The extension machinery at field level is inadequate and needs to be strengthened. Farmers Clubs set up by NABARD, KVKs and other such bodies could play a vital role in providing adequate extension services.

k) Technology Transfer: Transfer of technology from lab to land has not been commensurate to the desired extent and the same need to be taken care of. NABARD’s programme of Capacity Building through Adoption of Technology (CAT) may also be used for the purpose.

l) Infrastructure facilities: Infrastructure facilities in the form of agricultural markets and storage facilities are inadequate as discussed in the previous chapter and need to be strengthened.

m) Creation / release of online charge by banks on land holdings: At present the land possession certificates are being issued by the Agriculture Department / other Departments to the eligible farmers for issuing KCCs. In view of spurt in the fraudulent use of land records, it has become imperative to introduce on-line land verification system. Government of Tripura has made available all land records online for verification.

n) Crop Insurance: The coverage of the Prime Minister’s Fasal Bima Yojana, launched by GoI, to make the farmer feel secure against natural calamities, will be increased to 40% of cropped area during 2017-18 and 50% during 2018-19, for which a sum of `9,000 crore has been earmarked in the Union Budget 2017-18.

o) National Agriculture Market (eNAM): To enable farmers to get better prices for their produce in the market, the coverage of National Agricultural Market (eNAM) will be expanded from the current 250 markets to 585 APMCs during 2017-18. Assistance up to a ceiling of Rs.75 lakh will be provided to every e-NAM market for establishment of


cleaning, grading and packaging facilities. This will lead to value addition of farmers' produce.

p) Computerisation of PACS: In order to ensure seamless flow of credit to small and marginal farmers through Primary Agriculture Credit Societies (PACS), financial support will be available for computerization and integration of all the 63,000 functional PACS in the country with the Core Banking System of DCCBs/StCBs.

(ii) Suggested Action Points

a) The operation of land market, in both its segments of sale and lease transactions, reveal the underlying dynamics of agricultural trans-formation and its implications towards the state policy on agricul-tural lands. Although recent survey indicates that only 10% area was under lease arrangement, studies have indicated a higher per-centage of leasing. This suggests for according full legal status to tenancy as a general class of land tenure by protecting the in-terests of both the owners and the tenants. (State Govt.)

b) Govt. may also consider issuing cultivators license cards, especially to tenant farmers and oral lessees so as to make them eligible for institutional credit (GoT).

c) Tenant farmers and oral lessees may be facilitated with institu-tional credit through JLG mode. (Banks/Govt.)

d) Precision farming needs to be stressed upon as it has been a reality in the West, to ensure balanced use of fertilisers and rationalisation of subsidy, especially on urea, in order to encourage its optimum use.

e) An effective crop insurance scheme acceptable to the farming com-munity by overcoming the constraints in the existing schemes by diverting part of the subvention provided to crop loans is required. To ensure timely support during the distress, there is need to use technology for quick and accurate assessment of damage, timely reporting and quick disbursal of relief measures to the affected. (Govt./Banks/Insurance Coy)

f) Agri. universities, KVKs, RSETIs and FLCs to play a more active role in disseminating technology to the door steps of the farmer. (GoT. /Banks)

g) The Minimum Support Price (MSP) prescribed for a crop is same for the entire country. However, there is need to have regional spe-cific MSP keeping in view the varying costs of cultivation across the states. (GoI)


h) Farmers clubs to be strengthened and made use of effectively. (Banks)

i) Land records may be made available on-line and bankers may be given access to verify the ownership of the land offered as security or for cultivation of crop. On lines of Karnataka state, on-line regis-tration of charge on land may be introduced in our state also. This will give comfort to the bankers in ensuring increased credit flow to the sector. (GoT).

j) In addition, the recommendations made in GoI’s Economic Survey 2016-17 with regard to pulses production, as enumerated in Chap-ter 1 need to be put in place.

4.1.1.2. Water Resources

(a) With an average rainfall of 2272 mm, the state is endowed with plenty of water resources, both surface and ground water. As regards ground water, the annual Replenishable Ground Water Resource is 2.19 BCM and Net Annual Ground Water Availability was 1.97 BCM. The Annual Ground Water Draft in the State was 0.17 BCM and the stage of Ground Water Development was just 9% making the state rich in water resources. The depth to water level for the Pre Monsoon-2013 period was 1.21 (minimum) and 6.58 (maximum) metres below ground level. The corresponding figures for November 2013 were 0.88 and 5.42 respectively, indicating good availability of ground water. Hence all the blocks in the State have been classified as ‘safe”. The surface water is available from 10 major rivers viz., as detailed below:

Table – 4.3 Details of rivers in the State

River(length in Km.) Location Catchment Hill Ran

geCombined

Catchment(ha)Howrah (35.90) Agartala Baramura 400Gomati (163.40) Sonamura-

Udiapur Baramura 2,492Khowai (166) Khowai Atharamura 1,328Dhalai (75.85) Kamalpur Atharamura-

Longtharai 630Manu (140) Kailashahr Longtharai 2,278Juri (79) Dhramnagar Jampui 482Feni (86.80) Sabroom Baramura-Deotamura 505Burima (50) Bishalgarh Baramura 414Deo (50) Jampui Sakhan-Jampui 328Muhuri (56) Belonia Baramura-Deotamura 576

(b) These rivers swell in monsoon but become shallow during rest of the year. There are no major irrigations project in Tripura. Gomati, Khowai


and Manu are the three medium irrigation projects in the State. Therefore, major source of irrigation is minor irrigation projects like lift irrigation, deep tube wells, diversion schemes, shallow tube wells, water harvesting structures, tanks etc. To achieve the targeted agricultural growth rate of 4.1% in the 12th Five Year Plan, expansion and optimum utilisation of irrigation infrastructure is necessary. Apart from ensuring coverage of more cultivable land under assured irrigation, the aim is also to increase cropping intensity, thereby optimising the utilization of the limited land assets for improvement of the socio-economic condition of rural masses. Out of the total estimated irrigation potential of 1,40,383 ha, the total irrigation potential created, as on 31.03.2015, stood at 1,13,597 ha, of which the net potential utilised was 77,930 ha.

(c ) Micro Irrigation Fund: Govt of India, in the Union Budget 2017-18, have announced setting up of a dedicated Micro Irrigation Fund with NABARD with an initial corpus of Rs.5,000 crore to achieve the goal ‘per drop, more crop’.

© Ground Level Credit Flow and PLP ProjectionsThe details of GLC flow to water resources sector during the last three years vis-à-vis the targets were as under:

Table – 4.4 ACP Targets and Achievement(Rs. lakh)

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18PLP projections 857.78 920.37 949.77 1053.26 864.47ACP Targets 858.14 920.37 949.77 1053.26 864.47ACP Achievement 472.64 1740.94 2536.98 2176.61 2251.31% achievement to ACP target 55.07 189.16 240.95 206.64 260.42*

*as on 30.9.2017(d) Keeping in view various factors such as unit cost, past credit history, improvements in infrastructure etc., the credit projections for the year 2017-18 have been made at Rs. 799.37 lakh as detailed below:

Table – 4.5.Water Resources - Physical and Financial Projections 2017-18

(Amount Rs. lakh)

S.No.

Activity Phy Fin

1 Shallow Tubewells 631 216.942 Low Lift Pumpsets 662 167.423 Pumpsets 5 HP 709 227.814 Sprinklers 261 105.715 STW with 1 HP Solar Photovoltaic 35 81.49

Total 799.37


E. Issues and suggested Action Points

a) Emphasis on Minor Irrigation: It is estimated that out of tar-geted irrigation potential of 1,27,000 ha, as much as 79,000 ha can be brought under assured irrigation through surface water and the remaining through ground water. The majority of agricultural activ-ities are confined to interspersed plain lands amid the undulating terrains. Minor irrigation projects are ideal for the state for better utilisation of its ground water as well as surface water resources.

b) Sprinkler/Drip Irrigation: Apart from increasing the irrigation fa-cilities, water use efficiency is the key to optimum utilization of po-tential created. Agriculture / Horticulture Departments may propa-gate the benefits of drip and sprinkler irrigation programmes espe-cially for tea gardens and horticultural crops in the State. Aware-ness camps may be organized and banks may step up financing for Sprinklers/Drip sets.

c) Rainwater Harvesting: Success of Jalkund for storing rainwater for critical irrigation needs has been established in the Pilot Homestead farming work taken up by KVK, South Tripura district, with support from NABARD. This approach needs to be propagated.

d) There is need to encourage Participatory Irrigation Management (PIM) with effective role of Water Users Association (WUA) in order to take full advantage of irrigation potential created in the State so far.

4.1.1.3. Farm Mechanisation(a) Mechanisation of farm operations is very much necessary not only for timely & efficient agricultural operations but also to improve the productivity of crops and to tide over the problems of labour shortage and related problems. It also facilitates adoption of multi-cropping pattern, better utilisation of irrigation potential leading to increase in production. In view of the average smaller size of farm holdings of just 0.49 ha in the State which is much less than the national average of 1.15 ha, there is a limited scope for mechanizing the farming operations in the State at a larger scale. However, due to smaller size of farm holdings, there is good demand for power tillers and suitable hand-operated implements, paddy-weeders, combined thresher-cum-weeders or mini-threshers. The various farming activities such as ploughing, sowing,


transplanting, weeding, irrigating, harvesting etc. can be made efficiently by use of improved machines. Apart from farm based activities, mechanization also helps in off farm activities such as sorting, grading, polishing, storing and marketing of the harvested farm produce.

(b) Ground Level Credit Flow and PLP Projections

The details of GLC flow to the sector during the last three years vis-à-vis the targets were as under:

Table – 4.6. ACP Targets and Achievement(Rs. lakh)

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18

PLP projections 2139.84 2288.06 2422.17 2509.15 3172.94ACP Targets 2139.98 2288.06 2422.17 2509.15 3172.94ACP Achievement 1626.52 2989.20 4527.45 4211.02 3957.88% achievement to ACP target 76.00 130.64 186.92 167.83 124.74*

* as on 31.12.2016

(c) The projections for 2018-19 have been made keeping in view various factors such as unit cost, improvements in infrastructure etc., and the same stand at Rs. 3361.56 lakh, representing a moderate increase of 6% over that of the previous year. The component wise physical and financial projections for the year 2018-19 are as under:

Table – 4.7.Farm Mechanisation - Physical and Financial Projections 2018-19

(Amount Rs. lakh)

S.No

Activity Phy Fin

1 Power Tillers (12-15 HP) 2329 3101.802 Power Threshers with Prime Movers (Self

Propelled)160 183.60

3 Paddy Reapers (Self Propelled) 70 76.16Grand Total 2559 3361.56

(d) Issues and suggested Action Points

a) Lack of technical knowledge about the choice of farm equipment best suited for their farms: Awareness to be created about machin-ery like power tillers instead of tractors, which are more conducive for small size land holdings.

b) Farmers may be encouraged to adopt group farming (Joint Liability Group Mode) for effective use of the farm equipment

c) Rural youth to be trained and provided bank loan for maintenance of farm equipment


d) The network of PACS may be used to act as custom hire service centers for farm equipment.

4.1.1.4. Plantation & Horticulture(a) Plantation and horticulture crops offer huge potential for exploitation in the State, especially in view of its favourable agro-climatic conditions. They help in preventing soil erosion and prove high density green cover to the soil due to their perennial nature. Reclaimed wastelands and degraded lands can be effectively put to use for cultivation of various horticulture crops, by applying suitable manures. Being labour intensive, cultivation of horticulture crops also provide gainful employment opportunities in the rural areas. Value addition in the form of processing, grading and packaging also boosts the output from this sector. Nearly 26.8% of the total Gross Cropped Area in the State is covered by fruit crops. The area under horticulture crops has increased many fold, mainly due to implementation of the 10 Year Perspective Plan in 2002. The major fruit crops grown in the State are mango, guava, banana, lemon, jack fruit, litchi, etc. The total area under cultivation of fruit crops during 2014-15 was around 71180 ha. Vegetable cultivation is one of the fast growing activities, especially in the areas surrounding the cities and urban areas. Green peas, onion, cauliflower, tomato and brinjal are some of the prominent vegetable crops grown in the State. The State accounts for around 37% of the total ginger production in the country. Medicinal and aromatic crops are grown in around 23,000 ha. The area, production and productivity of vegetables in the State during 2014-15 were as under:

Table: 4.8. Area, Production, Productivity of Vegetables in Tripura – 2014-15

Crops Area(000' ha) Production(Lakh MT)

Productivity ( MT /ha)

Summer Vegetables 18.97 2.902 15.30Winter Vegetables 20.14 3.568 17.71Total 39.11 6.470 16.54


(b) The area, production and productivity of major fruits in Tripura during 2014-15 were as under:

Table: 4.9. Area, Production, Productivity of major fruits in Tripura – 2014-15

Crop Area(000' ha) Production(Lakh MT)

Productivity ( MT /ha)

Mango 11.18 0.625 5.6


Pineapple 11.94 1.708 14.3Orange 6.70 0.365 5.45Jackfruit 10.03 3.013 30.02Banana 13.99 1.413 10.10Litchi 3.92 0.205 5.25Lemon 5.54 0.278 5.02Papaya 3.72 0.372 10.00Sapota 0.19 0.015 8.10Musambi 1.20 0.018 1.50Guava 1.00 0.053 5.30Others 10.72 0.127 7.60Total 71.18 8.197 11.52


(c) The State Govt. has proposed an action plan for coverage of additional 30,350 ha in seasonal fallows in the rice-based cropping system and 21,000 ha in uplands of the RoFR areas in order to increase the production to 23.20 MT by the end of 12th Plan.

(d) Model Law on Contract Farming: GoI in the Union Budget 2017-18 announced a proposal to integrate farmers growing fruits and vegetables with agro processing units for better price realization and reduction of post harvest losses. A model law on contract farming would be prepared and circulated to States for adoption.

(e) Ground Level Credit Flow and PLP Projections

The details of GLC flow to the sector are not available. A credit projection of Rs.12,923.55 lakh has been made for the year 2018-19 keeping in view various factors such as unit cost, improvements in infrastructure etc., as detailed in the following table:

Table – 4.10 Plantation & Horticulture - Physical & Financial Projections 2018-19

(Amount Rs. lakh)S.No

Activity Phy Fin

1 Citrus 672 543.502 Pineapple 1476 2316.113 Litchi 470 256.034 Mango 2158 1744.875 Cashewnut 529 332.736 Orange 345 475.147 Musambi 25 26.338 Tea 85 257.919 Arecanut 242 213.86

10 Papaya 454 562.18


S.No

Activity Phy Fin

11 Banana 1340 1427.8112 Chillies 234 74.2513 Rubber 1606 4045.2114 others(flowers, etc) 519 647.63

Total 12,923.55

District wise projections are furnished in Annexure I.

(f) Issues, Constraints & Action Plan for stakeholdersa) Availability of quality seeds and planting materials: Despite

establishment of good number of private nurseries, most have not reached the stage of supplying required seeds and planting materi-als. In Dhalai and North Tripura districts, a few more nurseries should be established to meet the demand of the districts. Mother blocks of musambi, cashew nut and guava may be raised in the state to reduce the dependency on other states for planting mate-rial. Production of disease free, quality seed and planting materials in progeny orchards and private nurseries may be accorded prior-ity.

b) Productivity of fruits & vegetables: Productivity of fruits is low on account of low surviving density of plants in the first year in ab-sence of proper watering arrangements during dry season and in-adequate care and maintenance by growers. Increasing productiv-ity of fruits and vegetable crops through micro irrigation arrange-ments i.e. through installation of drip/sprinkler systems has to be popularized. Water sources may be created through construction of community tanks, farm ponds/reservoirs with plastic/RCC lining to ensure life saving irrigation to crops.

c) Diversification: Minor fruit crops like bel, jackfruit, ber, tamarind, hog plum, custard apple & kharonda has to be given emphasis tak-ing into account diversity in production and their income generat-ing capacity. Introducing new fruit crops like strawberry & grapes, exotic vegetables like broccoli, gherkin, capsicum may be at-tempted.

d) Unstable supply of Vegetables: Vegetables are mostly grown during summer and winter season without any staggering arrange-ments for extending the harvests during the lean period from May to August. This results in abnormal rise in prices. It also limits the income generating potential of the vegetable growers. Therefore, promoting off-season production technologies in different areas and crops – cauliflower, cabbage, tomato, capsicum, cucumber etc., may


be taken up in a big way. Commercial cultivation of some indige-nous vegetables – tree bean, moringa, country bean, bitter gourd and ridge gourd, etc., should also be promoted.

e) Area expansion: Potato is the most important vegetable crop. However, inadequacy of assured irrigation facilities, certified seed tubers, fertilizers and credit has been the main reasons for low area expansion under potato. High density planting with pineapple, guava, litchi, lemon and mango should be encouraged. Wasteland and undulating land suitable for horticulture can be brought under mixed orchard. Rejuvenation of old unproductive orchards should be expedited.

f) Insurance coverage: Insurance coverage of crops other than potato is not available. Non availability of necessary statistical data of all horticultural crops in the state for last ten years is a con-straint in extending insurance coverage to all farmers. Strengthen-ing horticultural statistics and bringing all crops under insurance coverage need to be initiated.

g) Post Harvest Management: Considerable portion of the horticul-ture output does not yield desired income to farmers and many a times goes waste on account of inadequacy of farm gate infrastruc-ture and post harvest management facilities. Post harvest manage-ment includes sorting, grading, packaging, transportation, curing, ripening and storage. Thus, inadequate post harvest handling and marketing infrastructure are the major constraints in creating value addition.

h) The government should create common infrastructure at Farm Gate of production clusters for reducing post harvest losses. Developing market infrastructure and proper linkage with the growers will yield rich dividends both to the farmer and the State. Capacity of cold storage in the State is not adequate as the total capacity is only 50,500 MT as against the production of about 15 lakh MT of fruits and vegetables. Once farm gate infrastructure is created and other facilities like cold storage are adequate, it will give the much needed boost to establishment of food and agro-processing indus-tries in the State.

i) Awareness: It has been observed that there is lack of awareness among majority of farmers about modern production techniques, post harvest handling and marketing practices. Regular awareness camps and follow up through bodies like Farmers Clubs / Farmer


Producer Organisations promoted by NABARD can help in this re-spect.

j) Commercial cultivation of Flowers: Commercial cultivation of high value flowers & ornamental foliage may be expanded.

4.1.1.5. Forestry & Wasteland Development(a) The forests in the state are mainly tropical evergreen, semi evergreen, and moist deciduous. Sizeable area is covered with bamboo brakes which virtually form a “Sub climax” resulting from shifting cultivation from time immemorial. Forests are an integral part of the culture and tradition of Tripura. They maintain environment, bio-diversity, land, soil, water, air regimes. Any imbalance in equilibrium of the above components affects the system adversely and has an adverse impact on human life. A significant number of population of Tripura continues to depend on forests with jhum or shifting cultivation as their main source of cultivation. Almost 10% forests area is under jhum cultivation in the State. The forestry sector provides important supplementary income and inputs in daily lives of tribal people residing in forest areas. Jhum cultivation has become less productive owing to frequent exposure of soil as evident from reduction of jhum cycle to the present day 2-3 years from earlier 5-6 years. The Government of Tripura launched a Perspective Plan on Forestry from 2002 to 2012 for holistic development of the sector. Out of the total geographical area of 10,492 km2 of the State, as much as 6,294 km2 (59.98%) is the forest area. The legal classification of forests is as under:

Table – 4.11: Details of legal classification of forests

S.No Status Area (Km2)% of

Geographical Area of State

1 Reserve Forests (RF) 3588.183 34.202 Proposed Reserve Forests (PRF) 509.025 4.853 Unclassified Govt. Forests (UGF)

(recorded as per rule 16 of TLR & LR rules) *

2195.473 20.93

Total 6292.681 59.98

(b) Forest types

According to classification of Champion and Seth, the forests of the state have been classified in the following six types:

Table – 4.12. Types of forests


S.No.

Types of forests Code Area in km2

1 East Himalayan Lower Bhabar Sal I/I/3/3C/CIb 87.772 Cachar Tropical Evergreen Forests I/I/IB/C3 150.943 Moist Mixed Deciduous Forests I/I/3/3C/C3 550.284 Low Alluvial Savannah Woodland I/I/3/3C/ISI 1316.825 Moist Mixed Deciduous Forests, Dry Bamboo

Brakes I/I/3C/2SI 1230.046 Secondary Moist Bamboo Brakes I/I/2/2B/2SI 397.09

(c) Growth potential of plantationsBlessed with high rainfall, humidity and nutrient rich soils, the forests of the State are in very high productivity zones. Excellent silvi-cultural conditions prevail for forest production. According to Patterson’s CVP (climate, vegetation and precipitation) index (1000-5000) the potential productivity is estimated to be 9-12 m3/ha/year. Research statistics corroborate the fact and following table shows that the Mean Annual Increment (MAI) of commercially important trees in plantations is quite high.

Table 4.13: Details of MAI of commercially important trees

Species Age in years

Volume(m3/ha) MAI (m3/ha)

Teak (Tectonagrandis) Exotic 20 248 12.40Sal(Shorearobusta) 20 181 9.05Gamar (Gmelinaarborea) 20 335 16.75Chamal (Artocarpus) 20 235 11.75

(d) There is a large gap between potential and actual productivity, and generally poor actual productivity in natural forests is due to anthropogenic stress and this is a matter of concern because, rising demand and poor productivity lead to the vicious cycle of low productivity to resource degradation of more area to further lower productivity.

(e) Bamboo plantation and development: Bamboo is a versatile perennial grass species grown naturally in the State. Tripura is called the ‘home’ of bamboo. The wonder plant is intimately interwoven in the socio-cultural fabric of the State. Bamboo based economic activities are an intrinsic part of life. Bamboo finds many uses and is a major source of income and employment as well, especially as it serves the artisan & non-artisan users of the state. It is estimated that 2.46 lakh families in the State are engaged in bamboo related activities. As such this species has been considered by the Government of India as a developmental tool and a ‘National Mission on Bamboo


Technology and Trade’ was launched with the aim of generating employment and income opportunities and ensuring ecological security. Cultivators normally do not contemplate to grow bamboos as a cultivable crop. In order to implement this scheme, a change in the mindset of the farmers is imperative. The area under bamboo forests in the State is 2397 sq. km (as per SFAP). Though considerable bamboo exists under farm sector and on homesteads, no authentic data exists about its extent. The bamboo forests of Tripura may be fitted into two types viz., (i) Moist mixed Deciduous Forest (1/3/3C/C3) and (ii) Secondary moist Bamboo Brakers (1/2/2B/2Si) (as per Champion & Seth classification). A total of 19 species of bamboo are reported in the state. Though the present productivity of bamboo @0.70 MT/ha per annum is higher than the national average @0.52 MT/ha per annum, research studies in various forest divisions show that the productivity of bamboo can be increased to 5MT per ha/year in natural conditions with timely plantation and protection measures.

(f) Medicinal plants resource

Tripura has one of the oldest, richest & most diverse cultural traditions associated with use of medicinal plants. There are large number of village based herbal medicine practitioners who have traditional knowledge of herbal home remedies of ailments & nutrition. Besides the above registered medical practitioners of modified system of Indian Medicine (such as Ayurveda) use medicinal plants. The herbal medicines used by rural people including tribal have not yet been documented. Compiling an exhaustive inventory of medicinal plants in the State is the need of the hour. So far about 266 species of medicinal plants (68 trees, 39 shrubs, 71 herbs and 88 climbers) have been identified and documented.

(g) The State Govt realised a forest revenue of Rs.677.97 lakh during 2014-15 by way of sale of forest produce (Timber: Rs. 213.83 lakh; Firewood: Rs. 9.63 lakh; Bamboo: Rs.51.78 lakh; others: Rs.402.71 lakh), as against a total revenue of Rs.769.51 lakh during 2013-14.

(h) Ground Level Credit Flow and PLP Projections

The details of GLC flow to the sector are not available. The projections for the sector for the year 2018-19 have been made keeping in view various factors such as unit cost, improvements in infrastructure etc.,


and the same stands at Rs.434.17 lakh, an increase of 21.36% over that of the previous year. The component wise physical and financial projections are as under:

Table – 4.14. Farm Forestry - Physical and Financial Projections 2018-19 (Amount Rs. lakh)

S.No

Activity Phy. Fin.

1 Bamboo 907 434.17Grand Total 907 434.17

4.1.1.6. Animal Husbandry – Dairy Development

(a) Animal Husbandry is one of the major activities for providing subsidiary income to the farming families. Next to crop production, animal husbandry is the most important income generating activity under allied agriculture. The sector plays a vital role in the rural economy and supports farmers, particularly small and marginal farmers, both economically and nutritionally. It also plays an important role in employment generation and augmentation of rural income. The State has rich animal resources by variety and number but due to low productivity of the majority of its livestock and birds, it is deficient in animal origin food. The estimated livestock population in the State in 2013-14 was as under:

Table No. 4.15: Estimated livestock population in the State in 2013-14

S.No.

Livestock Estimated population

1 Cattle 8,51,0192 Buffaloes 10,9843 Pigs 3,86,5274 Sheep 3,1435 Goat 6,58,9436 Poultry (Fowl) 27,50,9197 Duck 7,91,938

(b) Veterinary services and animal health:

The infrastructure available for animal health care and veterinary services has been presented in Chapter-5. The aim of these institutions is to provide adequate health coverage to the livestock by curative and preventive health care system. Animal Resources Development


Department (ARDD) takes care of the sector in the State. The main objectives of the ARDD are (a) to provide health coverage to all domesticated animals, both for curative and prophylaxis and (b) to take up livestock development activities for increasing the productivity of livestock, for the benefit of both producers as well as consumers.

(c) For attaining self-sufficiency in animal origin food i.e., milk, meat and egg, the State had implemented a 10-year Perspective Plan from 2002. The measures undertaken by the State Government during the Plan led to increase the production of milk, meat and eggs as detailed below:

Table No. 4.16: Comparative position of production of Milk, Meat, EggsS.No

Parameters Achievement 12 Plan2016-17 Target

2006-07 2014-15

1 Production of Milk (MT) 91,312 1,41,430.67

1,67,965

2 Production of Meat (MT) 14,098 34,814.75 39,5033 Production of Eggs (Cr

Nos.)13.2 15.31 26.58


(d) In order to achieve the targets for 12th Plan, the State Govt. has considered various measures, which include (i) increasing number of cross bred animals through intensification of AI, (ii) setting up of credit linked dairy demonstrative units, (iii) organization of awareness camps, (iv) mass deworming and supply of mineral mixtures, (v) Popularization of castration, (vi) Incentivizing "Door Step Al Workers", (vii) Conducting milk yield competitions and calf rally, (viii) Supply of calf growth meal, (ix) Fertility camp for improving conception rate, (x) Training for private workers, (xi) Supply of breeding bull, (xii) Development of perennial fodder plots including FRA through convergence of fund under MGNREGA,(xiii) Cultivation of azolla as animal fed supplement through convergence with MGNREGA, (xiv) Capacity building of farmers on managerial aspect of milch cattle, (xv) Development of pasture land through convergence of fund under MGNREGA, (xvi) Growing of fodder crops (oat, signal & stylo) in agricultural plots during intercropping period after amon paddy, (xvii) Massive promotion of back yard poultry including FRA, (xviii) Setting up of beneficiary oriented piggery demonstration unit for multiplication including FRA, (xix) Setting up of beneficiary oriented pig breeding unit for patta holders under FRA, (xx) Tuber (Tapioca) cultivation through convergence of fund under MGNREGA in FRA and other areas, (xxi) Improving productivity of goats under conventional small holder/ pastoral system.

(e) Dairy Development:


(i) Augmenting milk production through introduction of improved germ plasm into the indigenous genetic pool of cattle by means of artificial insemination with frozen semen technology has been the thrust area of the State's Animal Resource Policy. Infrastructure for expansion of artificial insemination facilities was created for up-gradation of local low yielding cattle. The State Government has given more emphasis on Dairy Development through Co-Operative system for production of milk as well as its marketing. Milk Producers are encouraged to form Co-operative Societies. The Department extends various assistance to Tripura Cooperative Milk Producers’ Union Ltd (TCMPUL) for developing infrastructure as well as organizing more co-operative societies to encourage the milk producers for more milk production through assured marketing. The TCMPUL is also responsible for maintaining the milk supply of Agartala town. Apart from these, TCMPUL has also undertaken marketing of milk products like chana, paneer, ghee, sweet curd and ice-cream. Production of balanced feed and marketing is also being done by the TCMPUL.

(ii) Area Development Schemes:This sector is best suited for development on a cluster basis through Area Development Schemes. Some of the infrastructure created for this sector are not being put to use to their full capacity. Accordingly, Area Development Schemes involving dairy and vermin compost activities have been prepared in the PLPs in respect of Gomati, Sipahijala and West Tripura Districts covering 200 dairy farmers and amounting to Rs.782.00 lakh.

(iii) Dairy Entrepreneurship Development Scheme: This Credit Linked Subsidy Scheme of GoI is expected to be continued through the financial year 2018-19

(iv) Dairy Processing and Infrastructure Fund: As milk processing facility and other infrastructure will benefit the dairy farmers through value addition and also as a number of milk processing units set up under the Operation Flood Programme earlier have since become old and obsolete, GoI, in the Budget 2017-18 have announced setting up of Dairy Processing Infrastructure and Processing Fund in NABARD, with an initial corpus of Rs.2,000 crore to be increased to Rs.8,000 crore over the next 3 years.

(iv) Ground Level Credit Flow and PLP ProjectionsThe GLC flow to Dairy Development sector during the last three years vis-à-vis the targets was as under:


Table – 4.17: ACP Targets and Achievement(Rs. lakh)

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18

PLP projections 7745.53 8423.99 9864.02 11197.85

11819.35

ACP Targets 7745.76 8423.99 9864.02 11197.85

11819.35

ACP Achievement 2937.31 7203.51 16907.84

11995.37

14624.72

% achievement to ACP target 37.92 85.51 171.41 107.13 123.73**as on 30.9.2017

(v) Keeping in view various factors such as unit cost, improvements in infrastructure etc., the projections for the sector for the year 2018-19 have been made at Rs.13,462.05 lakh as detailed below:

Table – 4.18 Dairy Development - Physical and Financial Projections 2018-19

(Amount Rs. lakh)

S.No Activity Phy Fin1 2 Cross Breed Cows (7 lpd) 5300 5724.002 3 Cross Bred Cows (5 lpd) 672 1088.643 Graded Murrah Buffaloes 351 442.264 Mini Dairy (10 CBCs 7 lpd) 790 6145.155 Dairy Parlours 123 61.995 Total 13,462.05

(vi) Issues and Suggested Action Points(a) Issues:

Non availability of quality animals Non availability of land for fodder cultivation Inadequate feed and fodder Inadequate extension services High cost of concentrate feed Unscientific dairy management practices adopted by the farmers Lack of access to market in interior locations Poor capacity of dairy farmers

(b) Suggested Action Points: The infrastructure for veterinary care may be improved. Government may

seek assistance under RIDF. The KVKs may conduct more programmes for farmers literacy on dairy The beneficiary farmers may be organized on SHG/JLG mode for ensuring

successful implementation of schemes.


Financing by banks may be done on a cluster development basis with tie-up arrangements with milk federations, marketing societies and NGOs

FPOs may be organized for dairy collectives.

(f) Poultry Development(i) The Department maintains poultry and duck breeding farms for production and supply of quality chicks and ducklings of Low Input Technology (LIT) variety. Poultry through household's poultry rearing with LIT variety has been promoted under financial assistance of the Department to reduce mortality during brooding period in rural areas. Brooder houses in all block headquarters are running where day old chicks/ducklings are reared upto 49 days of age and then supplied to the farmers for rearing in the back-yard. The Department has introduced LIT birds like Swarnadhara and Kuroiler variety for rural poultry farming since it can be reared in scavenging system with minimum feed and care.

(ii) Productivity: Demand for egg has been growing faster with the inclusion of egg (at least twice in a week) as nutritional supplement in the Mid Day Meal Programme of the State Govt. Strengthening of government poultry farm to supply required number of germ plasm is the priority area for implementation. At present, three major farms located at Gandhigram in West Tripura, Panisagar in North Tripura and Udaipur in South Tripura districts are supplying birds to the Brooder Houses/field. All these farms need to be strengthened/expanded to cater to the need of supplying adequate number of germplasm.

(iii) Financial viability: Organized Layer Farm is not profitable as production cost of egg is higher than imported eggs due to high price of feed. Therefore, Tripura Brown poultry, a local variety being developed by ICAR, Tripura may be promoted in rural/jhum/FRA areas. Strengthening of rural backyard poultry farming may also be emphasized.

(iv) Awareness: It has been observed that there is lack of interest among the poultry farmers for vaccination of their birds against Ranikhet disease. Regular awareness campaign for control of diseases in backyard poultry is required.

(v) Duckery Development: There has not been any comprehensive development plan for duckery in the state. Indigenous duck in backyard system may be promoted.


(vi) National Livestock Mission: Under the sub-component of Poultry Venture Capital Fund of National Livestock Mission of GoI, credit linked subsidy is available for the following activities:

Table – 4.19: Details of subsidy under GoI’s National Livestock Mission

S.No

Particulars Extent of Subsidy

i Breeding Farms for Birds of alternate species viz., turkey, ducks, Japanese quails, guinea and geese

@25% (maximum Rs.7.5 lakh)

ii Central Grower Units (upto 16,000 layer chicks per batch)

@25% (maximum Rs.10 lakh)

iii Hybrid layer (chicken) units upto 20,000 layers

@25% (maximum Rs.2 lakh for 2000 layer unit)

iv Hybrid Broiler (chicken) units (upto 20,000 birds)

@25% (maximum Rs.0.56 lakh for 1000 broilers

v Rearing of low-input technology birds @25% (maximum Rs.5 lakh)vi Feed Mixing Units (1.0 ton per hour) @25% (maximum Rs. 4.0

lakh)vii Transport vehicles (open cage) @25% (maximum Rs.2.0

lakh)viii Transport vehicles (refrigerated) @25% (maximum Rs.3.75

lakh)ix Retail outlets (dressing units) @25% (maximum Rs. 2.5

lakh)x Retail outlets (marketing units) @25% (maximum Rs. 3.75

lakh)xi Mobile marketing units @25% (maximum Rs. 2.5

lakh)xii Egg/Broiler carts @25% (maximum Rs. 3750)

(v) Ground Level Credit Flow

The GLC flow to Poultry Development sector during the last three years vis-à-vis the targets was as under:

Table – 4.20: ACP Targets and Achievement (Rs.

lakh)

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18

PLP projections 4361.96 4663.85 5722.11 6118.26 8622.85ACP Targets 4361.44 4663.90 5722.11 6118.26 8622.85ACP Achievement 1986.74 5246.11 9806.02 9938.12 7974.85% achievement to ACP target 45.55 112.48 171.37 162.41 92.5*

* as on 30.9.2017


(vi) PLP Projections for the year 2018-19

Keeping in view various factors such as unit cost, improvements in infrastructure etc., GLC during the past 3 years, the projections have been made at Rs.10,026.41 lakh, representing an increase of 16.28% over that of the previous year. The component wise physical and financial projections for the year 2018-19 are as under:

Table No.4.21: Poultry Development - Physical and Financial Projections (Amount Rs. lakh) S.No Activity Phy Fin

1 Layer Birds (300 Birds each) 2414 4246.582 Broiler Birds (300 Birds each) 4198 5682.303 Ducks (8 + 2 ) 1835 97.53

Total 10,026.41

The district wise projections are furnished in Annexure I.

(vii) Other Issues and suggested Action Points: Reputed breeding farms may be invited for establishment of breed-

ing farms and hatcheries in the State. Contract farming may then be thought of.

Health care services in the form of vaccine and insurance facilities may be ensured by the Department

Backyard poultry may be encouraged on a large scale, especially among SHGs & JLGs

Awareness about poultry may be created amongst farmers by the KVKs through Farmers Clubs

Banks may finance establishment of breeding farms. Broiler sector is dependent on outsourcing of inputs like chicks and

feed. These inputs become costly due to higher transportation cost. Technical support to private broiler farmers is needed.

(g) Sheep, Goat, Piggery(i) Sheep & Goatery Development: The Department undertakes goat development with the basic objective to preserve and upgrade the unique character of Black Bengal goat through selective breeding and its scientific management. Goat rearing by the forest dwellers through beneficiary oriented scheme has also been promoted. Tripura is the natural tract of Black Bengal Goat which contributes about 8.61% of


meat production in the state. People are generally not interested to taking processed meat. Instead fresh fleshes are preferred. Reduced carcass yield is on account of less than required emphasis on selective breeding and management of goat. Genetic upgradation of local goat to increase carcass yield needs to be taken up on priority. Goat farm should be strengthened and expanded so that quality Black Bengal goat kids may be supplied to farmers for good economic return. Demand for meat is enormous as around 95% population of the state is non-vegetarian. Under the sub-component ‘Integrated Development of Small Ruminants and Rabbits’ of National Livestock Mission, Credit Linked Subsidy is available for the following activities:

Table – 4.22: Details of subsidy under GoI’s National Livestock MissionS.No


i Commercial Units of 10 ewe/does + 1 ram/buck

@25% (maximum Rs.12,500)

ii Breeding Farms with 100 ewe/does + 5 ram/bucks

@25% (maximum Rs.2,50,000)

iii Commercial Rabbit / Angora units @25% (maximum Rs.75,000)

iv Rabbit – Angora Breeding Farms Varies with unit size

(ii) Piggery Development: Pig rearing is a popular activity in the State among both tribal and non-tribal population. The Department has endeavoured to make this sub-sector more economically viable by enhancing productivity as well as value addition for sustainability. Exotic varieties of pigs have been introduced for augmenting meat production. Modernization of departmental pig breeding farms and value addition with improved quality have been planned to uphold the growth in the sector. It has also planned to promote pig rearing by the forest dwellers through beneficiary oriented scheme. At present, State has eight pig breeding farms. Under the sub-component ‘Pig Development’ of National Livestock Mission, Credit Linked Subsidy is available for the following activities:

Table – 4.23: Details of subsidy under GoI’s National Livestock MissionS.No


i Commercial rearing units (3 Sows + 1 Boar)

@25% (maximum Rs. 25,000)

ii Pig Breeding Farms (20 Sows + 4 Boars) @ 25% (maximum Rs.2,00,000)


iii Retail Pork outlets with facility for chilling @ 25% (maximum Rs. 3,00,000)

(iii) PLP Projections for the year 2018-19

The sub sector wise data relating to flow of GLC is not available for agriculture and its allied activities. The projections for the year 2018-19 have been made keeping in view various factors such as unit cost, improvements in infrastructure, past GLC flow etc., and the same stands at Rs.9,626.01 lakh as detailed below:

Table No.4.24: Sheep, Goat, Piggery - Physical and Financial Projections(Amount ` lakh)

S.No Activity Phy Fin1 Goat Rearing (5 + 1) 3392 808.422 Goat Rearing (10 + 1) 1774 980.143 Goat Rearing (10F+2M) with shed 365 201.664 Pig breeding (10 + 1) 595 1795.205 Pig Rearing cum Fattening (3 + 1) 1808 2387.046 Pig Breeding cum Fattening (3 + 1) 1715 2605.947 Pig Breeding unit (20F+4M) 102 847.62

Total 9,626.01

The district wise projections are furnished in Annexure I.

(iv) Issues and suggested Action Points: ARD Department may provide the necessary health care services Commercial goat rearing and stall fed goat rearing may be encour-

aged on a large scale around cities and districts bordering other States.

Awareness may be created amongst the members of SHGs and JLGs about goat rearing

Exotic Piggery: Popularization of exotic piggery through benefi-ciary oriented scheme may be adopted. Government Pig Breeding Farms may be strengthened to increase supply of exotic germplasm to the farmers.

Pig Feed: Promotion of piggery and goatery in FRA areas and culti-vation of tapioca in forestland now available with people is the way forward.

In order to reduce the cost of maintenance of piggery units, farm-ers may be encouraged to grow Tapioca. The available Khas/fallow land or individual farm land may be utilized for cultivating tapioca crop for production of tubers to feed the pigs. In case of patta holders, pig owners may be encouraged to go for cultivating tapi-


oca crop after performing necessary land development activities in their allotted lands.

4.1.1.7. Fisheries(i) Fish is the most important constituent of diet of 95% of the population of the state. The State’s annual per capita consumption is reported to be the highest among the inland states of the country. The country is the second largest fish producer in the world, ranking only to China and contributes to 5.68% share in the global fish production. Besides offering a rich source of cheap and nutritious diet, the sector is also source of livelihood for a large section of the economically backward population of the country. Out of the total production of 9.58 mill MT, around 64% is from inland fishery. This sector contributes to 0.83% of total GDP and 4.75% of GDP from agriculture. Being landlocked with no coastline, the development of the sector in the State is entirely dependent on the inland water resources. The State however is blessed with abundant water resources in the form of rivers, ponds, lakes, etc.

(ii) Fisheries sector has a strategic role in the economy of Tripura. It has significant contribution towards food and nutritional security and employment generation. Realising the importance of fish for the people and economy of the state and its low per capita availability from local production an eight year Perspective Plan to attain nutritional self-sufficiency in fish was implemented in the state during the period 2004-12. The State is the first among the North Eastern states, rather one of the very few land locked States of the country, to produce seed of fresh water prawn in artificial sea water on a commercial scale. These initiatives along with various other support led to entrepreneurship development and better management practices resulting in substantial improvement in fish production and productivity.

(iii) Progress: On account of various measures initiated by the State Government, encouraging results were obtained. With the total fish production at 64780 MT during 2014-15 (as against 61950 MT in 2013-14), the per capita availability of fish from local production had increased to 17.50 kg during 2014-15 as against 17 kg in 2013-14 and 16.33 kg in 2012-13. Moreover, about 711.98 ha additional water bodies including big water bodies were brought under scientific fish culture besides creating new water areas of about 634.30 ha during 2014-15. Greater emphasis is now being laid on high-tech fish culture by increased use of aerator in fish ponds to increase per ha productivity. Besides, a class of


progressive farmers has come up in the State bringing about higher fish production of above 4-5 tons per ha.

(iv) The measures initiated by Govt of Tripura for development of fisheries sector were as under:

(a) Installation of FRP Hatcheries: In order to produce fish seed in natural environment 4 FRP hatcheries were brought from CIFA, Kausalyaganga, Odissa and they are installed in 3 farms under private sector and 1 in Government Farm. Presently, these hatcheries are operational.

(b) Establishment of Magur Hatcheries: 2 Magur hatcheries were constructed at Sharma F.B.F and Muhuripur NFSF during 2013-14. In these hatcheries magur seeds have been produced and the same are being reared in Government Farms for building of brooder stock to utilize the breeding operation in the hatcheries.

(c) Establishment of 45 Input Storage Centres: Construction of 45 Input Storage Centres was taken up in 45 Blocks covering 8 Districts of the State under RIDF in 2013-14. These centres will facilitate storage and delivery of various fishery inputs like lime, MOC, fish feed etc. to farmers.

(d) Assistance for Scientific utilisation of resources: Towards scientific utilization of available resources thrust were laid on dissemination of technologies in the form of demonstration of scientific fish culture, semi-intensive fish culture, fish culture in small & non perennial water bodies in 2013-14. Under this programme, benefit has been extended to 6,098 farmers in the State.

(e) Popularisation of prawn culture among the farmers: Emphasis was also given on popularizing prawn farming in the State in 2013-14 due to its high demand. For the purpose of production of prawn juveniles, 7 hatcheries have been established for production of prawn seed. In 2013-14, about 6.103 lakhs prawn seed has been produced in the Government sector and supplied to the farmers covering remote areas of the State.

(f) Propagation of pabda and chital fish: The conservation and culture of pabda (O. bimaculatus), 3 pabda hatcheries were established in Government sector, which are under operation for production of seed. In the mean time, technology for breeding of endangered fish especially pabda (Ompaksps) was standardized in the State and seed is being


cultured in farmers pond. In 2013-14, about 20,090 pabda seed have been produced and distributed among the farmers for culture in their ponds. Besides, about 1,300 chitala (N.chitala) seeds were produced under live gene bank programme in Lembucherra farm in 2013-14 and distributed among the farmers for culture.

(g) Ranching in open water bodies :For enhancing fish production in open water bodies as well as ensuring income potential of the fishermen living in and around the open water bodies (i.e. river, rivulets & reservoir) of the State, 27 lakhs big size fingerlings (7-10 cm & above 10 cm size) were stocked in open water bodies during 2013-14.

(h) Involvement of Co-operative Societies and SHGs in fishery sub-sector: There are 143 fishermen co-operative societies including 1-apex co-operative society associated with fisheries activity. The State Fisheries Department has been providing technical and financial supports to the less privileged societies for generation of better income and growth in fish production. In 2013-14, 20 fishermen co-operative societies were assisted for fish production. Besides, 1464 SHGs had also been formed till 2013-14 on fisheries activities. About 260.50 ha water areas of SHGs were encouraged through inputs supply and required training.

(i) Effective training and motivation programme: Towards motivation of farmers in scientific fish culture, emphasis was laid on organizing workshop and training camps at different levels. Thus, all together there are 8 training centers catering training facilities to the fish farmers. In 2013-14, 92 workshops and 2 days training camps were organized in which 8728 farmers were trained and encouraged for adoption of scientific fish culture.

(v) Ground Level Credit Flow and PLP Projections

The GLC flow to crop loans during the last three years vis-à-vis the targets was as under:

Table – 4.25: ACP Targets and Achievement (Rs. lakh)

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18

PLP projections 4537.98 4970.35 6928.98 7142.40 9509.61ACP Targets 4537.80 4970.35 6928.98 7142.40 9509.61ACP Achievement 1877.92 4608.31 11407.2

99406.44 9173.18

% achievement to ACP target 41.38 92.72 164.63 131.7 96.46**as on 30.9.2017


(vi) Keeping in view various factors such as unit cost, improvements in infrastructure etc., past GLC., the potential for 2018-19 has been projected at Rs.11,273.09 lakh, representing an increase of 18.55% over that of the previous year. The component wise physical and financial projections for the year 2018-19 are as under:

Table – 4.26: Fisheries - Physical and Financial Projections 2018-19 (Amount ` lakh) S.No Activity Phy Fin

1 Excavation of new ponds 1377 3910.602 Reclamation of existing pond 2568 2795.723 Feed based Inrtensive fish culture for high

prod.278 121.16

4 Producion of stunted growth fingerlings 759 213.675 Fish culture in smaller water bodies 1010 87.426 Nursery Pond (Prod of fingerlings of 6-7 cm

size)519 37.27

7 Fish farming (Low cost input tech for Comp fish)

6201 1112.62

8 Composite fish culture 635 581.339 Fishing boats 162 68.02

10 Drag nets 230 48.4811 Fresh water prawn cum fish culture 472 152.4612 Integrated Pig cum Fish Farming System 880 978.8113 Semi Intensive cultre in existing water bodies

0.30 mm125 86.29

14 Traditional fish culture without excavation 3600 1079.26Total 11,273.

09

(vii) Issues and Suggested Action Pointsa) Development of new Culturable Areas: Culture fishery is going

to be the key to the required increase in fish production in the State. There is need to create new culturable area as well as re-claim existing culturable resources to achieve the required fish pro-duction.

b) Reclamation of old water bodies: Reclamation of existing water bodies is highly needed to increase water retention capacity and productivity. As per survey of 2010-11, a total of 2738.13 ha of ex-isting water area in the State needed reclamation. This may be ac-corded priority.

c) Non-perennial resources: The total available area of non-peren-nial water bodies in the State was 3359.04 ha, being 14.3% of the total available resources. Water bodies beyond 2 ha in size ac-counted for 2.7% of the total available resource. Schemes for grad-


ually bringing in both these type of water bodies under scientific fish culture may be accorded priority.

d) Inadequate Input application: One of the major factors leading to shortfall in productivity was inadequate input application, espe-cially supplementary feed by farmers who undertook culture with-out any input assistance from the government. This calls for suit-able intervention and extension support of the State Govt/banks.

e) Fish Feed Manufacturing Plant: Availability of good quality bal-anced fish feed has been a major constraint in popularization of fish culture in the State. The existing 15 fish feed plants in the State for production and supply of balance fish feed would be insufficient and need to be increased due to increase in culture area expansion and awareness of imperative need of supplementary feed for in-creased fish production.

f) Qualitative improvement in fish seed: The qualitative improve-ment of seed is required for which replacement of the brooder stock (both fish and prawn) may be emphasised. Increased empha-sis may be placed on production of seed and culture of high value species (prawn, pabda, magur, chitala). Use of floating pelleted feed should also be encouraged.

g) Human resource development: Capacity Building of both in-ser-vice personnel and fish farmers is one of the most important requi-sites. Besides, refreshing the technical skills, they also need to be trained in newly developed technologies. Training and exposure visits for farmers may be organized on a regular basis. Special em-phasis may be given on women and tribal population in all benefi-ciary oriented development activities along with encouragement for entrepreneurship development.

h) Post harvest facilities: Increased fish production will also neces-sitate development of need based post harvest facilities for preser-vation, transport of produce to the markets, construction of new markets, wholesale and retail marketing facilities etc.

i) Area Based Scheme: A model Area Development Scheme on fish-eries has been prepared and presented in Chapter 6, which may be popularised amongst the fish farmers.

4.1.1.8. Other Activities

(a) The potential for use of bullocks and he-buffaloes are covered under this chapter. The contribution of draught/ plough animals (bullocks) is of paramount importance in agriculture especially during pre-sowing and


harvesting operations. They are also used in rural transport for carrying farm produce/goods. Bullocks constitute the biggest source of power even in highly farm mechanized states. Use of draught/plough animals is indispensable in many rural areas in view of remoteness, small holdings, non-availability of fuel for farm machinery at villages, lack of capacity to bear the burden of huge investment in farm equipment & absence of repairing facilities, etc. As the investment requirement in draught / plough animals is lesser, potential demand exists for credit to support the activity especially in case of small and marginal farmers. As on 31.03.2015, the total number of bullocks and he-buffaloes stood at 3,58,024 and 4,381 respectively (Economic Review of Tripura 2014-15).

(b) PLP Projections for the year 2018-19

Keeping in view various factors such as unit cost, improvements in infrastructure, etc., the potential towards bullocks/buffaloes for the year

2018-19 has been projected at Rs.464.05 lakh as detailed below:

Table – 4.27: Others - Physical and Financial Projections 2018-19 (Amount Rs. lakh) S.No Activity Phy Fin

1 Bullocks (1+1) 1612 290.162 He-Buffaloes 229 54.643 Two wheelers to farmers 2165 119.25

Total 464.05(c) Issues and Action Points

a) Provision of cattle health care and treatment facilities at door step of farmers

b) Encouraging farmers to take up fodder cultivation to meet the feed requirement

4.1.2. Agriculture Infrastructure1. Storage Godowns and Market Yards(a) It has been estimated that around 10% of the food grain produced in the country is lost every year due to inadequate storage facilities. Post-harvest management of agricultural and horticultural produce is one of the biggest challenges that the sector faces today. Absence of proper storage facilities also forces the farmers to go in for distress sale of their produce. There is therefore an urgent need for establishment of godowns/cold storages for food grains and horticultural products. These storage facilities have to be on scientific lines incorporating sorting,


grading facilities as well as market yards at different locations easily accessible by the farmers.

(b) Godowns: There are 124-food storage godowns at 59 different places in the State with a storage capacity of 65478 MT, which is grossly insufficient and call for the need for creation of more storage capacity in the state. Out of this, 74 godowns are for storing Paddy with a capacity of 37,383 MT. There is need for creation of more storage capacity in the state.

(c) Cold Storages: As at the end of March 2015, there were 11 cold storages in the State with a total capacity of 51500 MT, which included (a) 5 cold storages under State Agriculture Department [(i) 500 MT potato cold storage at Teliamura of Khowai District, (ii) 2000 MT potato cold storage at Baikhora of South Tripura District, (iii) 1000 MT cold storage at Satchand of South Tripura District, (iv) 2000 MT potato cold storage at Kumarghat of Unakoti District, and (v) 3500 MT multi-chambered cold storage at Melaghar of Sephahijala District], (b) 4 cold storages run by the private agencies, (c) two cold storages run by Co-operation Department and (d) one run by Central Government. The present capacity is barely adequate keeping in view the total production of 16.21 lakh MT of fruits and vegetables in the State during 2014-15 and the projected production of 23.32 lakh MT by the end of the 12 th Plan. There is a need to augment both public and private sector investment for cold storage.

(d) Ground Level Credit Flow and PLP ProjectionsThe disaggregated data of GLC flow to Godowns and Cold Storages during the last three years vis-à-vis the targets is not available. Keeping in view various factors such as unit cost, improvements in infrastructure etc., the credit potential for the year 2018-19 has been projected at Rs. 958.80 lakh as detailed below:

Table – 4.28: Storage Godowns - Physical and Financial Projections 2018-19

(Amount Rs. lakh)S.No Activity Phy Fin

1 Storage Godowns 25 MT 56 47.602 Storage Godowns 100 MT 268 911.20

Total 958.80(e) Issues & Suggested Action Points

a) The small farmers are generally not able to reap the benefits of the rural godowns facilities.


b) Micro warehouse with a capacity ranging from 100 to 500 MT may be propagated at the village level which will benefit the small farm-ers to a great extent.

a) Farmers and entrepreneurs need to be educated about the scien-tific storage techniques

2. Land Development(a) Land is an important factor of production in agriculture. The productivity of crops depends to a large extent on the type of soil, its depth, texture etc. Sixty percent of the geographical area of the State is high land and only about 27 percent is available for cultivation. Land use classification is presented in Chapter 1. Land development comprises a broad spectrum of activities undertaken by farmers for improving the quality of land, preventing soil erosion and increasing productivity. The activities normally covered are land levelling, farm development, reclamation, soil improvement, water management including lining of channels, fodder development, pasture land management, wasteland and watershed development etc. In the state, main activities of land development undertaken by farmers are Farm Pond Development, Lunga Bunding, Vermi Compost, Water Harvesting Tank and Watershed Management etc. Under Integrated Watershed Development Programme (IWMP) 105 Micro-watersheds comprising of 90434 ha. were taken up in the State during 11th Five Year Plan.

(b) Ground Level Credit Flow and PLP ProjectionsDetails of ground level credit flow to land development are not available. Taking into account factors such as unit cost, technology and other developments, the PLPs in the State have made projections of Rs.3,077.36 lakh for 2018-19, as detailed below: Table No. 4.29: Land Development - Physical and Financial Projections 2018-19 (Amount Rs. lakh) S.No Activity Phy Fin

1 Farm Ponds 1032 1738.442 Farm Ponds with Pumpsets 405 758.373 Lunga bunding 1308 580.54

Grand Total 3,077.66(c) Issues and suggested Action PointsIssues

a) In the absence of adequate soil testing facilities, the farmers are not able to apply the required nutrients in the right quantities.


b) Lack of awareness about water and soil conservation, which leads to soil erosion.

Suggested Action Pointsa) Soil testing labs to be set up at block level and wide publicity to be

given for their use. (Govt./KVK/NGO)b) Watershed approach to be popularized to cover more area for wa-

ter and soil conservation (Govt./NGO/Corporates)c) Under the Scheduled Tribes and Other Traditional Forest Dwellers

(Recognition of Forest Rights) Act, 2006, patta has been issued to forest dwellers. Activities envisaged under FRA for the develop-ment of the forest dwellers are agriculture, horticulture, animal husbandry and forestry. There is a proposal to develop land through clearing and leveling, terracing and contour bunding etc. Further, as the area lacks irrigation sources and is rainfed, minor irrigation sources like water harvesting structures with water stor-ing capacity using High Density Polythene (500 micron) plastic wielding may be created. This would require development of land. Intervention from the Department in coordination with other stake-holders would have positive impact in the development of this sec-tor.

3. Other Activities under Agri Infrastructure(a) This section covers activities such as Bio fertilisers, Vermi-compost-ing, tissue culture, seed processing etc. Growing awareness about health and environmental issues is paving the way for increasing demand for or-ganically produced agri products. This is making organic farming a grow-ing business, as organic certification commands better price for the pro-duce in the market. Further, plant tissue culture in recent years, has be-come important in the area of plant propagation and disease prevention. The micro propagation technology has a vast potential to produce plants of superior quality. Tissue culture raised plants are vigorous and fast growing than conventional plants. They yield better results as they are produced under ideal environment from selected mother plants. The tis-sue culture laboratories can also be used to produce bio-fertilisers. Bio-technology also has tremendous scope in plant protection. Biotechnologi-cal application includes the products ranging from those used in main-taining and increasing soil fertility, in pest management and veterinary feed additives or supplements. For promotion of organic farming, identifi-cation of potential areas and crop is crucial. A holistic approach involving integrated nutrient management (INM) and integrated pest management (IPM) would be the best farming strategy. Banana and Bamboo offer good scope for propagation through tissue culture technology.


(b) The Directorate of Biotechnology, Govt. of Tripura, has been en-gaged in disseminating the technology in the field of biotechnology and coordinating implementation of the projects for socio-economic develop-ment of the state. The various activities undertaken by it during 2014-15 include (i) Project on Effect of Green Technology on Seasonal & Perennial (Medicinal) Plants, (ii) Project on "Evaluation/Data Generation of Neem as Bio-pesticide/Bio-fertilizer in Tripura", (iii) Training on Strengthening of Farmers Producer Organization, (iv) Training cum Demonstration on “Effective Micro Organism Technology” for Quick Composting”, (v) Training on Integrated Pest Management of Horticul-tural Crop Crops, (vi) Training on Improved Production Technologies of Organic Farming, (vii) Training on Nursery Management & Propaga-tion Techniques of Fruit Crops, (viii) Training cum distribution pro-gramme on Bee Keeping, (ix) Buyer Seller Meet on Organic Produce, 2015, (x) Workshop on NEEM as Bio-pesticide/ Bio-fertilizer for Sustain-able Environment, (xi) Distribution of Bio-tech kits to marginal farmers so as to reduce use of chemical inputs in agriculture and produce safer food, etc. Further, tissue cultured sabri Banana in 95 ha and Medicinal and Vegetable Plantations in 20 ha was raised for marginal farmers un-der the programme.

(c) PLP Projections for the year 2018-19The PLPs for 2018-19 have projected a potential of Rs.674.20 lakh as detailed below:

Table No.4.30. Other Agri Infra - Physical and Financial Projections(Amount Rs. lakh)

S.No Activity Phy Fin1 Vermi Compost 3410 674.20

Grand Total 674.20

(c) Issues and suggested Action Points:Issues:

Lack of awareness about vermi-compost and organic fertilizers Inadequate propagation of tissue culture technology

Suggested Action Points: Increased use of organic manure will result in reduced consump-

tion of inorganic fertilizers, which directly results in a reduction in the fertilizer subsidy budget of the government.

Commercial production of organic inputs may be encouraged by banks

Technology available with KVKs and AUs for tissue culture may be widely popularized amongst progressive farmers.


Seed production activities may be encouraged through the FPO mode.

4.1.1.4. Ancillary Activities

1. Food and Agro Processing

(a) This sector plays an important role in preservation of food and ensuring food security. It also adds value to the primary agriculture produce, thereby resulting in direct benefit to the farmers. It also provides employment opportunities to number of ancillary activities. Storing the primary agri produce is one of the major problems of the agri industry. Post-harvest losses are in the range of 3% to 18% in food grains, fruits and vegetables, milk, meat, poultry and fish products. Processing helps in reducing such losses, besides increasing the shelf life of the commodities.

(b) The agro-climatic conditions in the State are favourable for growing various horticultural crops in the State. The total production of fruits and vegetables in the State during 2014-15 was 16.21 lakh MT which is targeted to reach 23.32 lakh MT by the end of the 12th Plan Period. The State grows large quantities of vegetables with potato as the major field crop. Therefore, the State has good potential for agro and food processing industries. However, inadequacy of farm gate infrastructure, post harvest management facilities like cold storages has resulted in low value addition to horticulture produce, which is a disincentive for farmers. There is an urgent need for according priority to providing farm gate infrastructure and promoting food processing industries in the State. As discussed in earlier chapters, as many as 10 Designated Food Parks have been established in the State to boost to food processing industries. Some entrepreneurs have set up food processing units in their land. A number of promotional events were held in the State including Investors' Meet, State Level Seminars on Food Processing, etc. It is expected that a large number of food processing industries will be set up in the Food Parks which will give a big boost to industrial development of the State. GoI has accorded top priority for the development of the food processing industry in the country. A special fund with a corpus of ` 2,000 crores has been created in NABARD for providing affordable credit for infrastructural works and for food processing units to be set up in the Designated Food Parks. The details of 10 Designated Food Parks are discussed in Chapter 1.


(c) PLP Projections for the year 2018-19

The details of GLC flow are not available for this sector. The PLPs in the State for 2018-09 have projected a potential of Rs.3,269.50 lakh as detailed below:

Table No.4.31: Agro Processing – Physical and Financial Projections(Amount

Rs.lakh) S.No Activity Phy Fin

1 Agro Processing 3496 2755.752 Rice Mills (Hauler type) 137 513.75

Total 3,269.50

(d) Issues and suggested Action Points:

Issues: Lack of synergy/linkage between the tiny, small and medium enter-

prises Inadequate financial assistance and assistance not being available

at the right time Need for revival of sick units The entrepreneurial capabilities of the sector owners may be im-

proved further by giving them the necessary training and exposure Inadequate skill development of the workers

2. Ancillary Activities -Others Activities

(a) A scheme for setting up Agriclinics and Agribusiness Centres (ACABCs) by agriculture graduates was launched with the support of NABARD. The basic concept of the Agriclinics is to provide expert services and advise to farmers on cropping practices, technology dissemination, crop protection from pest and diseases, market trends and prices of various crops in the markets and also clinical services for animal health etc. Similarly, the basic concept of Agribusiness Centres is to provide input supply, farm equipment on hire and other services. Though SLBC had allocated targets to different banks in Tripura for financing ACABCs, no applications have so far been received and sanctioned. In order to impart training in entrepreneurship under the scheme, the TSAMETI, Lembucherra, Agartala, has been identified/ approved as the Nodal Training Centre by MANAGE, Hyderabad, which would provide the necessary grant assistance under the Scheme.


TSAMETI may identify the candidates and impart necessary training at the earliest.

(b) Producers are unable to realize optimal value for their produce due to small land holding, and it is not financially viable for them to adopt high technology and high yielding varieties of inputs. Through better organisation, they can jointly have access to finance and better linkages to markets. Forming a Farmer Producer Organisation (FPO), can provide them adequate finance timely and provide linkages to market. NABARD has been granting credit and grant support for meeting their investment and working capital requirement. Grant support is being provided for capacity building purposes. NABARD has entered into MOU with TRIBAC to promote new FPOs.

(c) PLP Projections for the year 2018-19In view of poor potential, a moderate projection of 5 ACABC centres have been made for TFO of Rs.37.50 lakh for 2018-19.

(d) Issues and suggested Action Points:

a. The progress of ACABC scheme in the State was poor for different reasons, which include (i) absence of training institute so far to train the prospective candidates, (ii) preference towards salary employment than self-employment by the agriculture and allied graduates, etc. TSAMETI, Lembucherra, Agartala which has been identified as the Nodal Training Centre, may take pro-active interest in conducting training programmes.

b. The extension services are not uniformly and adequately available due to various constraints, which need to be improved to the desired level of outreach.

c. Banks may come forward and take the benefit of the credit guarantee risk cover being given by SFAC and finance FPOs.

d. NGOs should galvanise and motivate farmers to jointly form the Producer Organisation and access credit and grant support from NABARD under PRODUCE and PODF Fund.

4.2 Micro, Small and Medium Enterprises

(a) The Micro, Small enterprises have a special place in the overall Industry sector. Their propensity to absorb a huge labour force, ability to locate themselves near the source of raw material, flexibility in adopting


to changes in technology, export potential, lower level of financial investment etc., underline the need for giving greater importance to this sector. MSMEs are classified either as manufacturing enterprises or as service enterprises. While the manufacturing enterprises are categorised depending upon the investments made in plant and machinery, the service enterprises are categorised based on the investments made in equipment. Accordingly, the identification of a unit as micro, small or medium will be as per the table below:

Table No.4.32: Classification of MSMESector Manufacturing Sector Service Sector

(Investment in P&M) (Investment in Equipment)Micro Upto `25 lakh Upto Rs.10 lakhSmall Above `25 lakh but below `5

croreAbove Rs.10 lakh but below Rs.2 crore

Medium Above`5 crore but below `10 crore

Above Rs.2 crore but below Rs.5 crore

(b) Tripura has not been able to attract investments in this sector and remained an industrially backward state due to unique economic disadvantages arising out of remoteness and poor connectivity, hilly terrain, weak resource base, poor infrastructure, shallow markets, etc. However, the State has the potential for industrial opportunities and improvement which in turn will increase employment generation in the State. Therefore, industrial development has been a thrust area in the State Government's economic policies. The major focus is to promote agriculture based industries in the State as the State has registered commendable growth in agriculture and horticulture sector. Power, which is another important prerequisite for industrial development is also available in plenty in the state. The State has excess power, which it shares with other States. Tea, rubber, bamboo, agro and natural gas based industries have immense potential in the State. The clusters identified in the State were Gandhigram Crafts Processing Cluster; Hapania Jute Cluster; Bamboo Agarbatti Sticks; Paper Bags; Brick kiln cluster; Jirania, etc.

(c) As per the 6th Economic Census-2013, there were 2,37,902 establishments engaged in different economic activities other than crop production and plantation. Out of this, 1,44,674 (60.81%) establishments were in rural areas and remaining 93,228 (39.19%) establishments in urban areas. Further, as on 31.03.2015 the total number of MSME units registered in the State were 2,741. The industrial units in the State can be broadly classified in the following categories:


(i) Resource-based industrial units includes tea processing fruit pro-cessing, cashew nut processing, spice processing, jute bag manu-facturing, saw mills, bamboo processing (handicrafts, mechanised bamboo-stick units and agarbatti-making units), silk reeling/weav-ing, rubber-based units (rubber thread, rubber compound, tread rubber, rubber band, etc), brick kilns, coir units, rice mills, pack-aged drinking water etc.

(ii)Service sector units includes printing presses, automobile repair/ servicing/ tyre re-treading, nursing homes/ diagnostic centers, cold storage etc.

(iii)Units catering to government requirement may be the PVC pipes, spun pipes, ACSR conductors, cables, PCC poles, steel tubular poles, TMT bars/rods/flats, steel re-rolling mill products, alum, ce-ment, etc.

(iv) Other units includes roller flour mills, bakeries/ biscuit manufactur-ing units, handlooms, steel fabrication, distillery, tobacco units, LPG bottling, PU foam, water tanks, mechanised brick kilns, etc.

(d) Infrastructure available: The industrial infrastructure available in the State include (i) Bodhjungnagar Industrial Complex, (ii) Dukli Industrial Area, (iii) Arundhati Nagar Industrial Estate, Badharghat Industrial Estate, Dhajanagar Industrial Estate, Dharmanagar Industrial Estate, Kumarghat Industrial Estate, Integrated Infrastructure Development Centres in North Tripura, Dhalai an South Tripura Districts. In addition, there were 12 Industrial Training Institutes in the State. Further, 10 Designated Food Parks have been identified in the State, the details of which are furnished in Chapter 1. Retail trade is the major activity of the State, which constitute 45% of non-agricultural establishments, followed by manufacturing (18.28%), transport (7.7%), education (7.25%) and other community & personal services (6.32%).

(e) Various incentives are available for setting up of industries from GoI, which include (i) exemption from payment of excise duty and income tax for 10 years, (ii) central transport subsidy, (iii) central capital investment subsidy, (iv) reimbursement of interest paid on working capital for 10 years, comprehensive insurance scheme, etc. Further, the incentives from State Govt include (i) capital investment subsidy, (ii) industrial promotion subsidy, (iii) reimbursement of interest on term loans, (iv) reimbursement of power charges for 5 years, (v) transport subsidy, (vi) 85% exemption from payment of earnest money and security deposits,


(vii) reimbursement of standard certification charges/fees, partial reimbursement of floor space rentals for IT industries, etc.

(f) Ground Level Credit Flow and PLP Projections

The GLC flow to MSME sector during the last three years vis-à-vis the targets was as under:

Table – 4.33: ACP Targets and Achievement (Rs. lakh)

Particulars 2013-14 2014-15 2015-16 2016-17 2017-18

PLP projections 68,859.3974,782.1

1 82,267.4596,705.5

8109048.28

ACP Targets 68,859.3974,782.1

1 82,267.4596,705.5

2109048.28

ACP Achievement 92,335.5184,631.9

1121,963.6

4136676.

9969548.90

% achievement to ACP target 134.09 113.17 148.25 141.33

64*

As on 30.9.2017

(g) The projections for the year 2018-19 have been made keeping in view various factors such as unit cost, improvements in infrastructure etc., and the same stand at Rs.133,621.24 lakh, representing an increase of 22.5% over that of the previous year. The component wise physical and financial projections are as under:

Table – 4.34: MSME - Physical and Financial Projections 2018-19 (Amount Rs. lakh) S.No Activity Phy Fin

A Term Loans1. Manufacturing Sector(i) Micro Enterprises 4450 50062.50(ii) Small Scale Industries 598 14496.00(iii) Medium 23 9487.50

Sub Total for Manufacturing Sector 74,046.00

2 Services Sector(i) Micro Enterprises 3908 14655.00(ii) Small Scale Industries 1039 16671.75(iii) Medium 28 5250.00

Sub Total for Service Sector Enterprises 36,576.75

B Working Capital1 Manufacturing Sector(i) Micro Enterprises 10327.50(ii) Small Scale Industries 2977.20(iii) Medium 1980.00

Sub Total 15,284.702 Services Sector


(i) Micro Enterprises 3048.19(ii) Small Scale Enterprises 3521.85(iii) Medium 1143.75

Sub Total 7713.79Grand Total 133,621.24

(h) Issues and suggested Action Points:i. Improvement of roads, rail links and other infrastructure.

ii. Timely sanction of loans and covering the same under CGTMSE by banks.

iii. Meeting working capital requirements to the full extent by banks.

iv. Govt. to ensure supply of uninterrupted quality power supply to the industries.

v. Banks to consider the credit requirement of traditional sub-sec-tors of handlooms, handicrafts, village artisans, KVI units to protect the livelihood of the sector and their employment gener-ation potential.

vi. Encouragement of good number of Rubber industries such as rubber latex/sheet processing, rubber goods manufacturing, rubber seed oil processing, rubber wood furniture and artefacts

vii. Encouragement of Bamboo products and other handmade hand-icrafts

viii. Providing adequate bank credit and support services for skill up-gradation, publicity and market orientation through partici-pation in Handloom expo, etc.

4.3. Export Credit

(a) Introduction

The Reserve Bank of India first introduced the scheme of Export Financing in the year 1967. The scheme is intended to make short-term working capital finance available to exporters at internationally comparable interest rates. The export credit is extended by banks for Pre-shipment and Post-shipment purposes in Rupee Currency and Foreign Currency. An effort has been made in this section to discuss on Pre-shipment and Post-shipment Rupee Export Credit.

(b) Pre-shipment Rupee Export Credit : ‘Pre-shipment / Packing Credit' (as defined in RBI Master Circular dated 01.07.2013) means any loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing or


packing of goods prior to shipment / working capital expenses towards rendering of services on the basis of letter of credit opened in his favour or in favour of some other person, by an overseas buyer or a confirmed and irrevocable order for the export of goods / services from India or any other evidence of an order for export from India having been placed on the exporter or some other person, unless lodging of export orders or letter of credit with the bank has been waived.

© Post Shipment Rupee Export Credit :'Post-shipment Credit' (as defined in RBI Master Circular dated 01.07.2013) means any loan or advance granted or any other credit provided by a bank to an exporter of goods / services from India from the date of extending credit after shipment of goods / rendering of services to the date of realisation of export proceeds as per the period of realization prescribed by FED, and includes any loan or advance granted to an exporter, in consideration of, or on the security of any duty drawback allowed Government from time to time. As per the current instructions of FED, the period prescribed for realization of export proceeds is 12 months from the date of shipment.

(d) Types of Post-shipment Credits:

Post-shipment advance can mainly take the form of (i) Export bills purchased/discounted/negotiated, (ii) Advances against bills for collection and (iii) Advances against duty drawback receivable from Government.

( e) Due to non-stabilisation of SAMIS in the State, the details of export credit data are not available.

(f) Assessment of Credit Potential for 2018-19

(i) At present the State is not connected to any international business hubs. However, in near future the State would be a transit route for export/import of goods. International business centre at Sabroom is likely to be made operational within next few years which would open the gateway for export / import business for the State.

(ii) Tripura State would have good potential for export credit in the near future. However, keeping in view present scenario, a modest potential of Rs.195.00 lakh has been made for the year 2018-19 as detailed below:

Table No.4.35: Export Credit – Physical and Financial Projections


(Amount Rs. lakh)

S.No Activity Phy Fin1 Export Credit 13 195.00

Total 195.00

(g) Availability of Infrastructure, critical gaps & interventions required, action points / issues to addressed

(i) At present, 70,295.65 ha area is under natural rubber cultivation and there is potential of about 1,00,000 ha area which can be brought under natural rubber cultivation in the State. Rubber Pro-duction recorded at 44,740.17 MT during 2014-15 and likely to in-crease in the coming years. A Rubber Park has been established at Bodhjungnagar over 90 acres of land with technical support of the Rubber Board, Government of India.

(ii)Many Rubber plantations of the state have reached yielding stage and accordingly the productivity level is very encouraging. There is a very good potential for setting up of additional rubber-based in-dustries in the State. There is a vast scope of investment in sectors like auto parts, footwear, tread rubber, vulcanized rubber, rubber band, rubber cushion and mattress, latex thread, textile fabric, hoses etc.

(iii)The State is endowed with rich and diverse resources of bamboo with traditional usage. Out of 130 species of bamboo available in India, Tripura is home to 21 species. Cane & Bamboo Handicrafts of Tripura is considered the best in the country. Tripura Bamboo Mission has been launched in 2007, under PPP framework, for inte-grated development of Bamboo Sector.

(iv) The agro-climatic conditions of the State are favourable for grow-ing various fruit and horticultural crops. Pineapple and Orange renowned for their unique flavour and organic nature of produce besides Jackfruit.

(v) 10 Designated Food Parks have been established in the State to give a fillip to Agro & Food Processing sector. There is vast poten-tial for setting up of food processing units in the State.

(vi) There is an ample scope for area expansion under organic spices cultivation in the State. Major spices in the State include Ginger, Turmeric, Chillies, Black Pepper, Cinnamon, Tezpatta, etc.


(vii) Tripura has 84% of its border with Bangladesh. Promotion of trade with Bangladesh for exporting of agricultural produces, rub-ber produces, bamboo handicraft produces, medicines and machin-ery parts across the border is the need of the hour. There is good potential for Tripura to become international trade hub for trade with Southeast Asian countries. In January 2010, an agreement be-tween India and Bangladesh was signed for promotion of larger for-eign trade with Bangladesh through Land Custom Stations of Tripura.

Issues / Action Points

(i) Banks may identify potential borrowers for financing under the sec-tor.

4.4. Education:

a) Human resources development and empowerment of a country is based on education. It is necessary to ensure availability of this basic need of the people through public and private sector initiatives. Poli-cies at national and state level are framed and implemented for this purpose. Primary education to all on a universal basis is supported through public funding, however, higher education is not considered feasible for support on the same line. The cost of education is increas-ing and the student has to bear most of the cost and accordingly, there is good potential available for institutional funding higher edu-cation.

b) Government of India, Ministry of Finance, Department of Economic Affairs [Banking Division] had accepted the Model Scheme on Educa-tion Loan prepared by IBA for implementation, which was advised to banks for implementation by Reserve Bank of India vide circular No.RPCD.PLNFS. BC.NO.83/06.12.05/ 2000-01 dated 28 April 2001.

c) As per RBI Priority Sector Lending Norms, education loans granted to individuals for educational purposes upto `10 lakh for studies in India and ` 20 lakh for studies abroad are classified as priority sector ad-vances. Further details are available in websites www.ugc.ac.in, www.education.nic.in, www.aicte.org.in , www.webometrics.info .

d) In view of non-stabilization of SAMIS in the State, the details of loans disbursed in the sector are not available.

€ Assessment of Credit Potential for 2018-19

http://www.webometrics.info/

http://www.aicte.org.in/

http://www.education.nic.in/

http://www.ugc.ac.in/


Based on the updated Unit Costs, the potentials of the sector in physical and financial terms for the year 2018-19 has been assessed @ Rs.11606.55 lakh as detailed below:

Table – 4.36: Education - Physical and Financial Projections 2018-19(Rs. lakh)

Activity Phy. Fin.Education loans 4041 11,606.55

Total 11,606.55

III Availability of Infrastructure, critical gaps & interventions required, action points / issues to addressed

a) The schemes for education loan of the banks have attracted many students for taking up higher studies.

b) There are one Central University, one private University, 22 Gen-eral Degree Colleges, one National Institute of Technology, 2 Medi-cal Colleges, 4 Polytechnic Colleges, one Government Law College, One Government Music College, one Art and Craft College, One Agriculture College, One Fisheries College, one Veterinary College, one Paramedical College, One Pharmaceutical College, One Physi-cal Education College, 3 Nursing Colleges in the State. Every year, many students from the State are absorbed in these educational in-stitutions for professional courses. Besides, many students are pre-ferring colleges/institutions for professional courses located outside of the State.

c) Keeping in view the above, a good potential is available for institu-tional credit for higher education.

Issue / Action Point:(i) Banks may explore finding out potential students for bank credit.

4.5. Housinga) One of the most important basic needs of human population is shelter

i.e. a house to inhabit. Housing has always been a major concern for the low income group populations of the country. The Government of India has framed various policies for ensuring houses for the low in-come groups.

b) As a part of its strategy to overcome the housing shortage, the Government of India has adopted a comprehensive National Housing Policy which, among other things, envisaged:


i. Development of a viable and accessible institutional system for the provision of housing finance;

ii. Establishing a system where housing boards and development authorities would concentrate on acquisition and development of land and infrastructure; and

iii. Creation of conditions in which access to institutional finance is made easier and affordable for individuals for construction/buying of houses/flats. This may include outright purchase of houses/flats constructed by or under the aegis of public agencies.

c) Recently, the Government of India has launched “Housing for All by 2022” policy aimed for urban areas with components/options to States/Union Territories and cities, viz., (i) Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource; (ii) Promotion of affordable housing for weaker section through credit linked subsidy; (iii) Affordable housing in partnership with Public & Private sectors and (iv) Subsidy for beneficiary-led indi-vidual house construction or enhancement.

i. Central grant of one lakh per house, on an average, will be avail-able under the slum rehabilitation programme. A State Govern-ment would have flexibility in deploying this slum rehabilitation grant to any slum rehabilitation project taken for development using land as a resource for providing houses to slum dwellers.

ii. Under the Credit Linked Interest Subsidy component, interest subsidy of 6.5 percent on housing loans availed upto a tenure of 15 years will be provided to EWS/LIG categories.

iii. The scheme will be implemented as a Centrally Sponsored Scheme except the credit linked subsidy component, which will be implemented as a Central Sector Scheme. Houses constructed under the mission would be allotted in the name of the female head of the households or in the joint name of the male head of the household and his wife. The scheme will cover the entire ur-ban area consisting of 4041 statutory towns with initial focus on 500 Class I cities and it will be implemented in three phases.

iv. In the Union Budget 2017-18, an allocation of Rs.23,000 crore has been made under PM Awas Yojana to complete one crore


houses to poor by 2019. Further, the National Housing Bank will refinance individual loans.

d) As per the revised Priority Sector Lending Norms issued by Re-serve Bank of India, housing loan would comprise the following:

i. Loans to individuals up to Rs.28 lakh in metropolitan centres (with population of ten lakh and above) and loans up to Rs. 20 lakh in other centres for purchase/construction of a dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan centre and at other centres should not exceed Rs.35 lakh and Rs.25 lakh respectively.

ii. Loans for repairs to damaged dwelling units of families up to Rs.5 lakh in metropolitan centres and up to Rs. 2 lakh in other centres.

iii. Bank loans to any governmental agency for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to a ceiling of Rs.10 lakh per dwelling unit.

iv. 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 Rs.2 lakh per annum, irrespec-tive of the location, is prescribed.

e) In view of non-stabilization of SAMIS in the State, the details of housing loan disbursement are not available.

(f) Assessment of Credit Potential for 2018-19

The potentials of the sector for the year 2018-19 have been assessed at Rs. 50,618.83 lakh as detailed below:

Table – 4.37: Housing - Physical and Financial Projections 2018-19 (Amount Rs. in lakh)

Activity Phy. Fin.Housing Loan 11285 50,618.83

Total 50,618.83

(g) Availability of Infrastructure, critical gaps & interventions required, action points / issues to addressed


a) As per 2011 census data, there were 8,55,556 households in the State, of which around 20% households do not have ‘pucca’ houses. The housing loan schemes of the banks have attracted the salaried employees of govt. /private sectors. Banks have extended substan-tial amount of loans to salaried employees of govt. departments considering the easy recovery of installments from salaries and other collateral securities obtained.

b) Keeping in view the Central Government policy of “Housing for All by 2022”, RBI’s Priority Sector Norms and existing demand for housing loan, huge potential is available under the sector.

Issue / Action Point: Banks may explore potential borrowers for financing under housing

sector.

4.6. Renewable Energy(a) The energy generated from sources such as solar, wind, sea, bio waste and small hydro are termed as renewable energy. The State offers good scope for generating energy from solar, wind, bio waste and small hydro sources. The State has surplus power from the conventional sources. However, the conventional energy sources are not perennial and will face shortage sooner or later. Hence it is all the more necessary to tap the renewable energy sources.

(b) Renewable sources of energy have a great role to play in meeting the energy and power requirement. They also contribute indirectly in protection of forest which results in protection of our environment and ecology.

© The number of cattle available in the State as per Livestock Census 2012 was 8.62 lakh. Further, the State being basically agrarian, there are plenty of agricultural residues available. However, there is no proper system prevalent for disposal of the agricultural residues in the district. Agricultural residues can be utilized for bio-mass energy creation.

(d) The details of credit disbursement to the sector are not available due to non-stabilization of SAMIS in the district.

(e) Assessment of Credit Potential for 2018-19

The potential for the sector for the year 2018-19 has been assessed as under:

Table – 4.38: Renewable Energy - Physical and Financial Projections


2018-19(Amount Rs. Lakh)

Activity Phy. Fin.

Renewable Energy (Bio-gas plant 2 cum.) 854 225.84

Total 225.84

(f) Availability of Infrastructure, critical gaps & interventions required, action points / issues to addressed

(i) Tripura Renewal Energy Development Agency (TREDA), a society run under Tripura Science Technology and Environment Depart-ment has been implementing various schemes on bio-gas and solar technologies in the State as a whole with financial support from Govt. of India and State Government.

(ii)Under GoI's “Remote Village Electrification Programme”, TREDA had distributed 2098 Solar Home Lighting Systems in the district. Besides, TREDA had also distributed Solar Lanterns costing Rs.3750/ per unit, to BPL and APL families on payment of Rs.500/- and Rs.1000/- per unit respectively.

(iii)Further, there are many private level entrepreneurs dealing with Solar Equipment in the State. These private enterprises are also providing after sale services including repairing of the solar equip-ment.

(g) Issues / Action Points

(i) Remote and difficult areas/habitations may be covered through so-lar energy.

(ii)Solar light equipment suppliers may be encouraged to open outlets at district level

(iii)Every rural household may be encouraged to have a bio-gas plant as a measure to protect forest, environment and ecology.

4.7. Others (PMJDY, SHG, JLG, etc)

(a) In terms of revised RBI guidelines on PSL, loans not exceeding Rs.50,000/- per borrower provided directly by banks to individuals and their SHG/JLG, loans to distressed persons to repay their debt to non-institutional lenders and overdrafts extended by banks up to Rs.5,000/- under PMJDY, loans sanctioned to State Sponsored Organisations for SC/ST for the specific purpose of purchase and supply of inputs and/or


the marketing of the outputs of the beneficiaries of these organisations are covered under this para.

(b) As on 31.3.2017, as many as 39,679 SHGs have been savings linked with an deposit of Rs.4765.23 lakh and 33,559 SHGs have been credit linked with a loan outstanding of Rs.13449.02 lakh. GoI’s WSHG Scheme is in operation in West Tripura and Dhalai districts. In addition, NRLM has been launched in a few blocks of the State. Under NRLM, emphasis has been laid on revival of dormant SHGs to bring them under NRLM fold. Simultaneously, new SHGs are also being formed with eligible poor family members. Accordingly, there would be good scope for covering these SHGs through microfinance upto an amount of Rs.50,000/-.

As regards JLGs, as on 30.9.2017, 8794 JLGs have been credit linked to the tune of about Rs.113.00 crore.

(c) The first phase of the mission PMJDY was completed on 14 August 2015. As per the provisions of the mission, overdraft facility upto an amount of Rs.5000/- is permitted to Aadhaar enable accounts after satisfactory operation in the accounts for a minimum period of 6 months. Many of the PMJDY accounts opened during its first phase have already become eligible for overdraft facility.

(d) The PLPs for 2018-19 have projected a potential of Rs.11,628.69 lakh as detailed below:

Table No.4.39. Others – Physical and Financial Projections (Amount Rs.Lakh)

S.No Activity Phy. Fin.1 Financing SHGs 1st dose 11100 6057.502 Financing SHGs 2nd dose 4667 2694.003 Overdraft under PMJDY, etc 58625 2877.19

Total 11,628.69

4.9.2 Issues and Suggested Action PointsIssues:- There are still large number of accounts under PMJDY, where balance

is zero. The zero balance accounts contribute 11.35% of total PMJDY accounts


Under the PMJDY, benefits of insurance of `1 lakh on Rupay card as also overdrafts with certain terms and conditions in which minimum one transaction (financial or non financial) within 45 days is must from the date of issuance of cards.

Aadhar ceding percentage in the State 87.63% as against all India’s 59.34%.

Since there is no provision for paying commission for canvassing the proposals by outside agent except BC, other agents such as LIC agents are not getting interested in canvassing proposals.

Suggested Action Points There is an urgent need to credit all the payments of subsidy/pay/

remuneration compulsory through bank accounts only. Facility of crediting the SB a/c, even if they are dormant may help

in implementation of DBT. Insurance partners need to extend hands through their channels in

stepping up enrolment drive. Exhaustive training programme for branch managers to enable

them to understand the nuances of JLG financing and facilitate quick credit linkage.

Exhaustive training programme for Govt officials so as to sensitise them to form bankable SHGs and help banks in recovery of loans.

Capacity building of SHG and JLG for enabling them to undertake economic activities.

4.8. Social Infrastructure Support(a) Though infrastructure development is aimed at improving the standard of living of the people, there are certain types of investment which have a direct bearing on the social lives of the people, especially in the rural areas. GoI and GoT are also emphasizing creation of social infrastructure with private investment and through PPP mode. Investments in schools, health centers, drinking water and sanitation facilities are examples of some such sectors, which can be termed as Social Infrastructure. Though investments for this sector have been the prerogative of the Government, the gap between the demand for and supply of this infrastructure requirement has been widening over the years. The recent changes in the priority sector guidelines by the RBI, have encouraged private participation through bank credit for this sector. Banks extending loans up to a limit of Rs.5 crore per borrower for building social infrastructure for activities namely schools, health care facilities, drinking water facilities and sanitation facilities in Tier II to Tier VI centres are included under this category.


(b) Accordingly, the following assessment has been made for private participation in creating social infrastructure in the State for the year 2018-19.Table No.4.40. Social Infra Support – Physical and Financial Projections

(Amount Rs. lakh )Activity Phy Fin.Primary & Upper primary schools 311 519.60Drinking Water 9 156.00Sanitation 150 19.80

Total 695.40District-wise and Activity-wise projections are indicated in

Annexure – I. © Critical interventions and suggested action points :

(i) Bank may utilise CGTMSE scheme wherever available. (ii) Availability of electricity may be ascertained or may be provided

for. (iii) Availability of manpower for the created infrastructure is essen-

tial. (iv) Convergence between drinking water supply and sanitation

need to be strengthened.(v) Participation of the beneficiaries, especially women, in water

supply schemes may be ensured right from planning to manage-ment stages.

(vi) Operation and Maintenance of assets created needs to be en-sured

(vii) Since drinking water and sanitation continue to be treated in separate silos, both the quality of drinking water and that of sanitation gets compromised.

(viii) Creating awareness among the people about proper sanita-tion.

6. Summing Up:

The total potential that is projected for financing through bank credit for the year 2018-19 has been projected at Rs.442,978.95 lakh, which is 14.18% more than the projections for the year 2017-18. Of the total projections, the shares of broad sectors were crop loans 37%, Agriculture Term Loans 15.88%, MSME 30% and others 17%. The corresponding shares during 2016-17 were 38.83%, 15.75%, 28.10% and 17.32% respectively. Since Capital formation in agriculture is of prime


importance, without which future growth cannot be sustained, several measures have been suggested in the relevant allied activities of agriculture. One such important step is the adoption of cluster approach in financing agri and allied sector activities through Area Based Schemes, so as to reap the advantages of scale. Successful implementation of a few such Area Based Schemes will have a ripple effect, which will ultimately result in increased flow of credit to the desired sector.


Chapter 5Infrastructure Planning

5.1. Concept and Importance of InfrastructureInfrastructure, in general, refers to a set of facilities through which goods and services are delivered to the public. It is the stock of basic facilities and capital equipment needed for the development of a country or an area. Infrastructural investments in transport, power, irrigation, hydroelectric works, scientific research and training, markets and warehousing, communications and informatics, education, health and family welfare play a strategic, but indirect role in the development process. It makes a significant contribution towards growth by increasing the productivity of land, labour and capital in the production process.

5.1.1. The prosperity of a country depends directly upon the development of agriculture and industry. Agriculture production, however, requires power, credit, transport facilities, etc. Industrial production requires not only machinery and equipment but also skilled manpower, management, energy, credit facilities, marketing facilities, transportation services which include railways, roads, shipping, communication facilities etc. All these facilities and services constitute collectively the infrastructure of an economy. Regions with inadequate infrastructure usually have lower per capita income, bigger share of the primary sector and lower population density. Regions with high infrastructure level usually have higher per capita income. Regions having good basic facilities like health, educational, transport, communication, water, sanitation, energy, housing, etc. will attract more investments, especially from the small and micro entrepreneurs.

5.1.2. Good transportation, low cost of electricity, availability of skilled labour facilities etc., will reduce cost of production, increase production and profit levels. Inadequate infrastructure and services become the burden for infrastructure suppliers, and will lead to low efficiency of output. World Development Report (1994) published by the World Bank under the title, ‘Infrastructure for Development’, rightly mentions that “the adequacy of infrastructure helps to determine the country’s


production, expanding trade, coping with population growth, reducing poverty, or improving environmental conditions”. Socio-economic development can be facilitated and accelerated by the presence of social and economic infrastructure. It has been universally recognized that an adequate supply of infrastructure services is an essential ingredient for productivity and growth. A well-functioning infrastructure including, electric power, road and rail connectivity, tele-communications, air transport, and efficient ports are required for rapid growth. Without any of these, either economic production will suffer or the quality of life will deteriorate. In this respect, adequate and efficient infrastructure is crucial because of its impact on efficiency and growth of other economic activities, and in turn, on the welfare of the society. Apart from growth linkages, infrastructure has a direct relationship with environment, health, poverty, equity and the general quality of life. The higher affluence level of the developed countries with advanced infrastructure bears testimony to this relationship.

5.1.3. Patra and Acharya (2011) examined the spatial disparities in infrastructural facilities across 16 major states in India and empirical evidence suggests that there is a positive relationship between Infrastructure Development Index & Per Capita NSDP and negative relationship between Infrastructure Development Index & Poverty. Hence, efforts should be directed to create more infrastructure facilities at the state level to raise the SDP and reduce the level of poverty and unemployment of the people concerned.

5.1.4. With regard to the infrastructure of North Eastern States, the 14 th

Finance Commission observed as under:

a) “The North-eastern and hill States have several unique features that have a bearing on federal fiscal relations. These States are characterised by: (a) low level of economic activity and the consequential low revenue capacity; (b) the disability arising from large forest cover and hilly terrain; (c) remoteness; (d) infrastructure deficit; (e) international borders and the law and order problems due to persistent insurgency; (f) high level of expenditures on public administration and police, relative to the overall gross state domestic product (GSDP) of the States and the large proportion of government employment in total employment. Most of these States are largely dependent on the resource flows from the Union Government, both for balancing their revenue account and for capital investment. There is, in addition, currently a special dispensation for flow of Plan grants to them. (Para 12.29)


b) Most of the States are faced with significant deficits in infrastructure. The relatively small sizes of their GSDP imply that market borrowings are insufficient for financing these deficits. We have also noted that inter-state issues and coordinated actions by these States play an important role in determining the viability of investments in the region. Since 1996, all Union Government Ministries (with a few exceptions) have been required to earmark 10 per cent of their budget to this region, with any unspent balance being transferred to the Non-Lapsable Central Pool of Resources created in 1997-98 to support infrastructure development projects in the region. (Para 12.30) c) These States would continue to need a special focus, particularly in terms of social and economic infrastructure with inter-state significance. We, therefore, believe that the proposed new institutional arrangement should have a special focus on these States, particularly in terms of making investments in infrastructure. (Para 12.31). We, therefore, urge that the suggested new institutional arrangement also consider taking up issues related to identifying and recommending resources for inter-state infrastructure schemes in the North-eastern States.”

5.2 Status of Infrastructure in the State1. Transport

(a) Transport and communication are the basic infrastructural pre-requi-site for economic development. Development of transport infrastructure is essential for wide range of economic activities starting from marketing of agricultural produce to IT business. Road transport is the only depend-able means of transport as well as the lifeline of the State through its hostile-hilly terrain. Provision of all-weather road connectivity to all the habitations in the State is the prime objective of the State Government. At the present, in the absence of rail connection, more than 99 per cent of freight and 95 per cent passenger traffic is carried by road. The details of road connectivity is presented in the following table:

Table 5.1. Details of road connectivity in the State

S. No

Category Length (kms.)

1 National Highways 6452 State Highways 5323 Major District Roads 904 Other District Roads 1,1955 Village Roads (RD / ADC) 8,1596 Village roads (PWD) 9,674


7 IBB Roads (BRO) 726Total 21,021

(b) The National Highway No.44 is the lifeline of the State providing the vital road link with the rest of the country via shillong and Guwahati. This life is being used for transportation of various goods including essential commodities as also passengers travelling to the main land. Out of the total road distance of 21,021 kms, black topped roads accounted for 10,011 km, brick soled roads for 6,442 kms and the remaining were earthen. Once the work of conversion of meter gauge rail track into broad guage and extending the same upto Subroom is completed, the pressure on road traffic is expected to ease to a considerable extent. Further, the road network has considerably improved in the State with conversion of the timber bridges into permanent bridges. As on 31 March 2017, there were 178 RCC Bridges and 420 Steel Bailey Bridges and 75 SPT bridges in the State. Conversion of Bailey Bridges and SPT Bridges into RCC Bridges may be done in a phased manner to further improve rural connectivity. This is one of the key infrastructure requirements to augment agriculture income.

(C) Issues for Road connectivityi. Road network in the State needs to be developed on the lines of

IRC norms and regular maintenance of roads is also required (par-ticularly in rainy season).

ii. Development of other district Roads and Major district roads, on which large no of commercial vehicles operate through PPP mode.

2. Power:

The progress in power sector in the State despite its geographical, economic and infrastructural bottlenecks has been quite impressive. Of the two sources of generation viz., thermal and hydro, thermal power accounts for 96%. The present peak load is 266 MW which is likely to increase to 340 MW by the end of 12th Five year plan. The Palatana power project, a gas based thermal power project commissioned by OTPC (ONGC Tripura Power Corporation) has the initial production capacity of 726.6 MW. It is one of the biggest projects in NER and is expected to transform the power scenario of the entire NER of the country and stimulate economic growth of the region. The power


transmission corridor needs to be strengthened to transmit the surplus power to other power deficient regions of the country.

3. Health Sector

The well being of a State depends to a great extent on the sound health of its people. Health deprivation is really the most central aspect of poverty. Tripura has the following health infrastructure as on date.

Table 5.2. Details of Health Infrastructure in the State

Health Facility

No. availabl

e

Health Facility

No. availabl

e

Health Facility No. available

Medical Colleges

2 District Hospitals

6 Paramedical Training

1

Health Sub 1126 Nursing 3 Blood Banks 6Primary Health Centres

91 GNM Training Institutes

5 Blood Storage Centres

10

Community Health Centres

20 ANM Training Institutes

2 Tele Medicine Facilities

25

Sub-Divisional Hospitals

12 MPW Male Training Institutes

1

Concerted efforts have been made by the State Government as also under NRHM to improve the health scenario of the state. The alternative system of medicines particularly homeopathy and ayurvedic also needs to be encouraged which have better rural acceptibility.

4. Drinking water

As regards drinking water supply, as on 01 April 2015 out of 8,723 rural habitations, 4,871 habitations were fully covered and 3,848 habitations were partially covered on quantity basis. On quality basis, 3,680 habita-tions were fully covered and 2,873 habitations were partially covered. The other details regarding water supply as on 01.04.2015 were as un-der:

Table 5.3. Details of water supply in the StateS.No Particulars Nos.

1 Deep tubewells in operation 1,6312 Overhead reservoirs commissioned 133


3 Iron Removal Plants commissioned 7854 Surface water treatment plants 475 Population covered with piped water supply scheme 33,58,8

16Source: Economic Review of Tripura 2014-15, GoT

5. Agriculture & Allied Sector Infrastructure(a) Irrigation

Agriculture is the main stay of the economy of Tripura. Irrigation is an important input for enhancing the productivity of agriculture sector. Irrigation sector got priority in the development from IX Plan onwards. As at the end of March 2015, out of the gross cropped area of 4,83,488 ha and Net Cropped Area of 2,55,360 ha, the area under irrigation stood at 1,13,597 ha as against the total estimated irrigation potential of 1,17,000 ha. Out of this, the utilization stood at an estimated 70%. Based on the recent assessment of Central Ground Water Board on ground water availability and utilisation for irrigation, drinking water and industrial uses, there is good potential for creating irrigation infrastructure through surface and ground water projects. The potential lies in minor irrigation projects from surface water sources and tube wells from ground water sources. Small storage projects for utilising surface water have better potential. Thus, emphasis needs to be given to minor irrigation storage projects and tube wells. At present, there are no major irrigation projects in State. Gomati, Khowai and Manu are the three medium irrigation projects in the State. The major source of irrigation is minor irrigation projects like lift irrigation, deep tube wells, diversion schemes, shallow tube wells, 5 HP pumps, water harvesting structures, tanks etc.

(b) Modern Rice Mills

Paddy is the main crop of the State and continues to hold the key to sustained food security in the State. It is grown in 3 different seasons viz., Aus (autumn rice), Aman (winter rice) and Boro (summer rice). There is also paddy cultivation in hill land under improvised Jhuming (shifting cultivation) method. The total food grain production of the state during 2016 was 8.25 lakh metric tons. Paddy constitutes 98% of the total production and 96% of the area under foodgrains production. It is anticipated that during 2016-17, the food grains production would be of the order of 9.35 lakh metric tons and a major portion of which would be paddy. There is an imminent need to increase recovery of rice from paddy through adoption of modern technology. Presently most of the


rice mills of the state are hauler type resulting in low out turn (55% - 57% as against all India standard of 67%) of milled rice. Setting up modern rice mills will improve the rice head recovery (paddy to rice) by at least 5-7%. This will substantially increase the total availability food grains of the state. It will yield more nutrient rice with better shelf life. The process will also reduce human drudgery and will separate the valuable by-products. Further, processing of milled rice along with subsequent exploitation of by-products will be the most feasible and readily adoptable technology to our conditions.

(c) Construction of Godowns

There are 124 food storage godowns in 59 different locations with total storage capacity of 65478 MT out of which 74 Godowns with capacity of 37,383 MT are exclusively for rice. The inadequate facilities for storage of products result in considerable seasonal fluctuations in the price of products and wastage of foodgrains and hence need careful planning for increasing storage capacity.

(d) Market Yards

a) Most of the farmers sell off their produce in the local markets at very low prices immediately after the harvest. Thus, farmers suffer even in years of a good harvest, since they will not be able to get good price realization. The obvious solution is to aggregate their produce and reach bigger markets where they can get a better price for their produce. Presently, there are 554 Primary Rural Markets in the state. Out of this, 84 are Wholesale Assembling Markets which includes 21 Regulated Markets. Huge quantity of fish, meat, dry fish, livestock like poultry, pigs, goats and sheep are transacted in these Agricultural Markets. However, proper infrastructure including scientific slaughter house, frozen chamber for dressed meat and fish are required to be created. Small cool chambers, refrigerated vans, warehouses in the market yard are also needed. Increased fish production in the State will also necessitate development of need based post harvest facilities for preservation and transport of produce to the markets. The State Govt. has planned development of 50 Agricultural Markets during the 12th Plan period. Strengthening and creating Market yards with the above required facilities is essential to increase agri-income and create both interest and paying-capability among the farming community to embrace latest technology to improve productivity.


b) Further, as announced in the Union Budget 2017-18, in order to enable farmers to get better prices for their produce in the market, the coverage of National Agricultural Market (e-NAM) will be expanded from the current 250 markets to 585 APMCs during 2017-18. Assistance up to a ceiling of Rs.75 lakh will be provided to every e-NAM market for establishment of cleaning, grading and packaging facilities. This will lead to value addition of farmers produce.

(e) Bio-Fertilizer Units

Fertilizer is an essential input for agricultural operations. Consumption of chemical fertilizer has increased from 47 kg per ha during the 10th

Plan Period to 55 kg per ha during 11th Plan Period and targeted to reach 100 kg per ha in 12th Plan Period. It was 60kg/ha during 2012-13. Chemical fertilizers are highly subsidized in India and their use has seen an increasing trend across the country. In the State, there is still a need to increase fertilizer use, but overuse of chemical fertilizers will result in degradation of soils. To maintain soil health and fertility, the way forward is increased use of macro and micro-nutrients blended with organic manures, vermi-compost and biofertilizers. The state has 3 bio-fertilizer production units at the district level, 10 mini units at block level and 2 units set up by private management. All these units are producing carrier based bio-fertilizer. As a result, use of bio-fertilizer have increased manifold from meager 1.4 ton in 1999-2000 to 258 tons in 2009-10 and to 1032 tons in 2012-13. There is one central bio-fertilizer laboratory in Agartala to monitor the quality in production in various laboratories within the State. To maintain sustainable soil productivity along with plant protection measures, necessary infrastructure support for production and supply of liquid based bio-fertilizer in addition to the existing carrier based bio-fertilizer may be created. The advantages of liquid bio-fertilizer are manifold. It is easier to maintain quality, involves low transport cost, has longer shelf life and zero contamination and is more user friendly. Moreover, liquid based bio-fertilizer can be used for four different ways – seed treatment, soil application, root dipping and drip irrigation. The agriculture extension services should disseminate the ideas of scientific use of chemical fertilizers along with bio-fertilizers to ensure long term soil fertility and productivity.

(f) Farm Gate Infrastructure for Horticulture crops

Horticulture is one of the most potential sectors for economic development of the state. The State Government had implemented a 10


year Perspective Plan 2002-12 to increase production and productivity which resulted in huge growth in horticultural produce and the state easily achieved the target of 12 lakh MT under the plan. The State Govt. has been making considerable efforts in augmenting production and has set target to achieve 23.32 lakh MT by the terminal year of 12 th Five Year Plan. Keeping in view the thrust given to horticulture, there is an urgent need to upscale the farm gate and post-harvest management infrastructure, such as facilities for sorting, grading, packaging, transportation, curing, ripening, storage and marketing outlets. These facilities are essential for ensuring marketability of horticulture produce, value addition, reducing loss and increasing profitability.

(g) Construction of Cold Storage Units

An important infrastructure for post harvest management of horticulture produce is adequacy of cold storage units. Against the backdrop of over 13 lakh MT production the state has cold storage capacity of about 56,000 MT. The capacity is well below the requirement and additional capacity has to be created in both the public and private sector to take full advantage of the efforts made by the State in increasing horticulture produce. Multi-chamber cold storage units with latest/new technologies which are energy efficient with provision for insulation, humidity control, advanced cooling systems etc. may be constructed. Strengthening value chain like cold storage, refrigerated transport system, etc., will enhance shelf life and minimize post harvest losses at different points.

(h) Veterinary Network

The State has rich animal resources by variety and number but due to low productivity of the majority of its livestock and birds, it is deficient in animal origin food. The population of animals and birds in the State was as under.

Table 5.4. Details of Population of Animal Resources

Particulars Livestock Census 2007

Estimated livestock

population 2014-15

Cattle – Crossbreed 73,537 1,40,568Cattle – Indigenous 8,74,735 8,52,942Buffalo 14,160 11,029Goat 6,45,614 6,65,905


Sheep 3,646 3,255Pig 2,63,659 3,95,962Poultry 24,86,985 43,26,483


Thus, only 6.36% of total bovine population was crossbreed cattle whereas the remaining were non-descript cattle. The non-descript cattle are very poor milk yielder – about 1.15 liters/day during 365 days of lactation. The veterinary network in the State is depicted in the following table:

Table 5.5. Details of Veterinary Network in the State (2014-15)Network type Number

Veterinary Hospitals 16Veterinary Dispensaries 60Veterinary Sub Centres 428Artificial Insemination Centres 11Veterinary Laboratory 4Cattle Breeding Farms 1Poultry/Duck Breeding Farms 5Pig Breeding Farms 10Goat Breeding Farms 2Fodder multiplication farms 7

Source: Economic Review of Tripura, 2014-15

Keeping in view the rich animal resources of the State and very low number of cross-bred cattle, there is an urgent need to further strengthen the existing veterinary infrastructure and create new ones. The State should target to create adequate Veterinary service network to ensure at least one veterinary centre per two Gram Panchayats/ADC villages. Cooperative societies of milk producers should be organized on cluster basis and should be strengthened for supply of inputs as well as providing animal health care services. These clusters should be provided with bulk coolers with milk route connectivity.

5.6. Availability of Financial Support from NABARD for Infrastructure Development

Financial Assistance for infrastructure development is available from NABARD from the following sources:

Rural Infrastructure Development Fund (RIDF) NABARD Infrastructure Development Assistance (NIDA) Food Processing Fund 2014-15 Long Term Irrigation Fund 2016-17 Micro Irrigation Fund 2017-18 Dairy Processing & Infrastructure Development Fund 2017-18

5.3.1. Rural Infrastructure Development Fund (RIDF)


NABARD has been channelizing the shortfall in the mandatory share of priority sector lending by commercial banks to the Rural Infrastructure Development Fund, instituted by Government of India in 1995-96. Though the Fund initially focused on incomplete irrigation, flood protec-tion and watershed management projects, funding for rural infrastruc-ture became more broad-based through the years. RIDF now covers 36 activities related to rural infrastructure development. The activities, sup-ported by the RIDF to varying degrees, can be broadly are classified into three categories viz., (i) Agriculture and related sectors (eligible loans upto 95% of the TFO, (ii) Social Sector (eligible for loans upto 90% of TFO in North East Region) and (iii) Rural connectivity (eligible for loans upto 90% of TFO in North East Region). With allocations in every Union Budget since its inception, RIDF has evolved as a major and popular source of finance to state governments. This long-term partnership between NABARD and the state governments has strengthened over the last two decades. With its experience of managing the RIDF for nearly 20 years, NABARD has gathered significant insights in matters related to rural infrastructure. As an indirect outcome, NABARD has developed in-ternal capabilities in financing and facilitating the creation of rural infra-structure and has expanded its contribution to this domain through vari-ous other initiatives as well. RIDF is expected to continue during 2017-18 also. As indicated in the Table No.5.6, as on 31.03.2017, as many as 2034 projects, covering various activities, have been sanctioned by NABARD to Government of Tripura under RIDF involving a total loan assistance of Rs. 1963.11 crore, of which an amount of Rs. 1447.63 crore was dis-bursed to the State Govt.

Table 5.6. Details of Projects sanctioned under RIDF in the State(` crore)

RIDF Sanctions & Disbursements in TripuraYear Sanctions Disbursements

2011-12 67.15 100.002012-13 99.34 144.252013-14 119.17 150.002014-15 186.97 200.002015-16 342.18 283.552016-17 272.00 198.04


5.3.1.1 Expected benefits under RIDF as on 31 March 2017RIDF is playing pivotal role in developing rural infrastructure. The benefits expected to accrue due to RIDF (as on 31.03.2017) include irrigation potential for an additional 16,987 ha (274.93 lakh ha All India), the provision of better connectivity with a rural road network of nearly 1500 km (4.20 lakh km All India) and the prospect of bridging physical divides in rural areas with almost 22,627 metres (10.15 lakh metres All India) of bridges, on a cumulative basis. The hydel projects added 229 MW of power to the national grid. Other power projects have helped reduce annual transmission and distribution (T&D) losses by 22,736 lakh units by bringing about systems improvement. Agriculture-related projects, including irrigation, generated 28,840 (179.12 lakh All India) recurring jobs and 683 (34,174 lakh All India) man-days of non-recurring employment. Modern Rice Mills have been sanctioned which will take care of production of 8.25 lakh MT paddy in the State. Modern rice mills due to uniform boiling takes care of less loss in terms of rice heads and good quality. Water Supply arrangement Schemes have also been sanctioned to take care of potable water needs of the rural population.

5.3.1.2. Issues under RIDF:a) Concentration on Rural Connectivity (>80%). Diversification to new

areas/activities, especially Agriculture Sector, is the need of hour. b) Projects involving civil construction are not submitted with proper

drawings and detailed component-wise costs considered as per the


Schedule of Rates (SoR). Mention about SoR and year etc., are also not mentioned.

c) Economic benefits viz., population/households/habitations benefit-ted, recurring and non-recurring employment generated, benefits/increase in GDP, etc., are not properly worked out in the Detailed Project Reports (DPRs).

d) Education sector: Higher Secondary schools covering XI & XII class, ITIs/Vocational Training Institutes, special training centres for skill development of rural entrepreneurs under NRLM can be covered under RIDF.

e) State Govt. may make adequate Budgetary Provisions to ensure smooth flow of funds for project execution/ maintenance/ repay-ment of loans with interest.

f) Dropping of projects sanctioned under RIDF, Slow Moving Projects (SMP) and Non Starter Projects (NSP) are a matter of concern.

5.3.1.3. Identification of Critical Infrastructure

There are a number of areas where investments have taken place, but the full benefit of the investment could not be reaped, because the final lap has not been completed or envisaged earlier. For e.g., there might be a village road which leads upto a canal bank. Constructing a bridge across the canal will connect the two banks. The bridge serves as a critical link. Such types of investments which when completed will provide the last mile connectivity or will serve as the vital link are called as critical infrastructure. The major critical infrastructure identified under various sectors are highlighted in Annexure III & IV.

5.3.1.4. Suggestions:

Government of Tripura has been suggested as under:a) The government may consider giving priority to projects having rela-

tively shorter gestation periods, so that the benefits would accrue to the people at an early date.

b) Last mile projects if any, could be prioritised for support under RIDF so that the sunk cost in these projects can be retrieved faster.

c) Investments in check dams and irrigation ponds could also be consid-ered on a priority. The recharge benefit could give rise to further in-vestments in groundwater exploitation by private investments and help conjunctive use of available irrigation potential.

5.3.3. Food Processing Fund


Government of India (GoI) have accorded top priority for the development of the food processing industry in the country and accordingly the Hon’ble Finance Minister had announced setting up of a Special Fund of Rs.2000 crore in NABARD to make available affordable credit to agro-processing units being set up in Designated Food Parks. The Fund has been established in NABARD by RBI. Financial assistance from this Fund, designated as Food Processing Fund 2014-15, will be provided by NABARD either directly or through consortium arrangements with other financing agencies. State Governments, entities promoted by State/ Central Governments, Joint ventures, Cooperatives, Federation of Cooperatives, SPVs, Farmers’ Producers Organizations, Corporates, Companies, Entrepreneurs, etc., may avail loans from this Fund for establishing the designated Food Parks and also for setting up of individual food/ agro processing units in the designated Food Parks. The salient features related with operationalization of the Fund are indicated below. Objective: To provide impetus to development of food processing sec-

tor on cluster basis in the country to reduce wastage of agricultural produce, stable and better price recovery of produce to farmers and to create employment opportunities, especially in rural areas.

Mode of Financial Support NABARD will provide term loans out of the Fund. Term loans will be provided either directly or through con-sortium arrangements with other financing agencies.

Eligible Institutions/ Entities State Governments/ Entities pro-moted by State Governments (with or without Government Guaran-tee)/ Entities promoted by Government of India, Joint ventures, SPVs, Cooperatives, Federations of Cooperatives, Farmers’ Producer Organi-zations, Corporates, Companies, Entrepreneurs, etc.

Designated Food Parks: Only the Designated Food Parks and the in-dividual processing units in the Designated Food Parks will be eligible for financial assistance from the Fund. As on 31.5.2017 there were 10 designated Food Parks in Tripura as detailed below:

Table No. 5.7 : Designated Food Parks in Tripura


S.No District Location Name of the designated

food park / promoterCategory

1 West Tripura

Bodhjung Nagar

Food Park, Agartala, promoted by Tripura Industrial Devt Copn

Food Park

2 West Tripura

Champamura & Tulakona Mouza, Agartala

Sikaria Food Park promoted by M/s. Sikaria Mega Food Park Pvt Ltd

Mega Food Park

3 West Tripura

Agartala Bodhjungnagar and RK Nagar Industrial Complex, GoT

Industrial Area

4 West Tripura

Agartala Dukli Industrial Area, GoT Industrial Area

5 West Tripura

Agartala Arundhatinagar and Badharghat Industrial Estate, GoT

Industrial Estate

6 Unakoti Kumarghat Kumarghat Industrial Estate, GoT

Industrial Estate

7 Gomati Udaipur Dhajanagar Industrial Estate, GoT

Industrial Estate

8 North Tripura

Dharmanagar Dharmanagar Industrial Estate, GoT

Industrial Estate

9 North Tripura

Dewanpassa, Dharmanagar

Integrated Infrastructure Development Centre, GoT

Integrated Infrastructure Devt Centre

10 South Tripura

Sarasima, Belonia

Integrated Infrastructure Development Centre, Govt. of Tripura

Integrated Infrastructure Devt. Centre

Sikaria Mega Food Park is coming up in Tulakona with construction of common infrastructure like warehouses, cold storages, testing labs. Still, it is not fully developed in terms of common infrastructure like roads, power, effluent treatment, worksheds etc. to enable individual units to get set up inside MFP. The idea of MFP is to set up at least 25-30 units with an investment of approx.. Rs.250 crore in the MFP.

5.3.3.1. Issues Food Processing Fund (FPF) 2014-15 can be utilised for expansion and

renovation of existing Food Parks. Promoters of Food Processing units identified during various seminars

organized in Agartala by ASSOCHAM/NABARD, Ministry of Food Pro-cessing, Chamber of Commerce, Food Packaging Institutes, etc., may be allotted plots in designated food parks who may avail financial as-sistance under FPF.

5.3.4. NABARD Infrastructure Development Assistance (NIDA)

NABARD Infrastructure Development Assistance (NIDA), a flexible line of credit support for funding rural infrastructure projects, is designed to


fund State owned institutions/ corporations under on-budget as well as off-budget, for creation of rural infrastructure, outside the ambit of RIDF borrowing. Traditionally, NABARD has been closely working with State Governments through RIDF to fund various infrastructure initiatives. However, this channel for creation of rural infrastructure faces certain issues. The borrowing power of State Governments is limited under Article 293(3), thus limiting the off-take of RIDF. In the course of multiple interactions with State Governments, it was understood that State Governments would like a wider range of financial products to support creation of rural infrastructure. In addition, State Governments are looking for avenues to borrow off-budget (e.g. through corporations) to avoid exceeding their borrowing power limits as also for funding the infrastructure projects which are not in the approved list of projects eligible under RIDF. Based upon this, the NABARD Infrastructure Development Assistance programme was designed for State Governments and other State-owned organizations to fund rural infrastructure creation by providing assistance outside of RIDF borrowing. However, yearly repayments of the Principal and Interest are to be provided for in the budget of the State Governments. The key features of NIDA are enumerated in the following table.

Table No. 5.8 - Key features of NIDAS.No

Component Features

i. Type of loan Term loan for Rural Infrastructure

ii. Tenure Long term, upto 15 years

iii. Interest rate

Will vary based upon project and risk profile of borrower. Interest rates will be linked to NABARD’s market borrowings.

iv. Moratorium

Based upon the specific project and borrower (State Govt. or State owned agencies), moratorium of upto 2 to 4 years can be considered.

v. SecurityAppropriate security will have to be provided by borrower, based upon risk profile and nature of project. State Govt. guarantee is not mandatory, but can be requested based upon the risk profile and nature of project.

vi. Repayment

Repayment schedule can be designed based upon borrower’s requirements, nature of project and risk profile (based upon borrower’s cash flows, a ballooning repayment schedule can be designed, with the greater share of principle repayment structured towards the later tenure of the loan).

As on 31 March 2016, an amount of `10,567 crore was sanctioned under NIDA for 41 projects across various States (Andhra Pradesh, Bihar, Chat-tisgarh, Goa, Gujarat, Haryana, Karnataka, Rajasthan, Maharashtra, Pun-


jab, Tamil Nadu, Telangana, Uttarakhand, Madhya Pradesh, West Bengal, etc.,) covering various purposes as detailed in the following ta-ble:

Table No.5.9: List of NIDA projects sanctioned as on 31.03.2017 (Amt. `crore)

Sector Units Loan Sanc-tioned

Loan dis-bursed

Power Transmission 24 4,132 1,738Roads 4 2,482 376Cyclone Damage Restoration

4 1,063 1,063

Warehousing 2 220 206Solar Power 2 60 51Drinking Water 1 1977 0Bridge 1 463 132Wind Power 1 75 75Sewerage 1 70 49Market Yard 1 25 0Total 41 10,567 3,690

5.3.5. Rural Infrastructure Promotion Fund (RIPF)

Rural Infrastructure Promotion Fund has been created with an initial corpus of Rs.25 crore and operationalized from 1st September 2011 with an objective to promote capacity building initiatives as also efforts for creation of innovative/ experimental/promotional infrastructure, especially in rural areas. The activities to be supported should lead to promotion of sustainable infrastructure development in rural and agriculture & allied sector. They should include a component for documentation of experience during implementation. The experimental projects/activities to be supported should be prototypes of innovative/ experimental/demonstrative nature. Infrastructure assets created should result in improvement or generate demand for other infrastructures of higher order.

5.3.6. Long Term Irrigation Fund (LTIF)The Long Term Irrigation Fund (LTIF) was announced during the Union Budget 2016-17, for fast-tracking of implementation of incomplete major and medium irrigation projects under Accelerated Irrigation Benefit Programme (AIBP) and also two national projects. A total fund requirement of Rs.91,807 crore has been estimated for the period 2016-20 to finance identified 99 incomplete AIPB projects and two National Projects by Ministry of Water Resources, GoI. While the central share will be funded by way of budgetary resources and/or bonds to be


mobilized by NABARD and serviced by GoI as well as market borrowings by NABARD, the state governments shall have the option of funding their share through LTIF/RIDF/state government budgetary resources/market borrowings. The initial corpus of Rs.20,000 crore stands enhanced to Rs.40,000 for the year 2017-18. No irrigation project from Tripura State has been identified for funding under the Scheme.

5.3.7. Dairy Processing & Infrastructure Development FundDairy is an important source of additional income for the farmers. This activity is sustainable even without subsidy. Availability of milk processing facility and other infrastructure will benefit the farmers through value addition. A large number of milk processing units set up under the Operation Flood has since become old and obsolete. Realising this, GoI, in the Union Budget 2017-18, have announced setting up of a Dairy Processing and Infrastructure Fund in NABARD with a corpus of Rs.8,000 crore over three years. Initially, the Fund will have a corpus of Rs.2,000 crore.

Expenditure Finance Committee has sanctioned the allocations made under DIDF. Out of Rs.11,884 crore, NABARD will sanction Rs.8004 crore to NDDB and NCDC which will in turn sanction to Milk Federations, Milk Cooperative Societies and Corporations for milk processing. There is provision for interest subvention through NABARD and the loan will be for 10 year period with moratorium of two years. This Fund will go a long way in creating milk processing infrastructure in the country.

5.4. Summing up

Infrastructure is the key to induce development in any State. The existing low level of infrastructure development index of the State and the high level of poverty index is an indicator of the poor status in the State. It also indicates the abundant scope available for increasing investments for improving the infrastructure. Boosting infrastructure investment has ripple effect in the economy and will serve as a trigger for other developmental activities. With this background, the next chapter details the physical and financial potential available for investment by the private sector under various sectors that constitute the priority sector.


Chapter 6Area Based Schemes

6.1 Introduction

One of the important requirements for sustaining the growth rate in agriculture is to increase the investment or capital formation in agriculture. Hence, in order to reinforce the importance of capital formation, this Focus Paper has made ‘accelerating the pace of capital formation in agriculture and allied activities’ as its theme. As can be observed from the previous chapter, a total potential of Rs.623.70 crore has been identified for investment in agriculture term loans. While there are several ways by which this potential can be tapped by the bankers and other concerned, one method by which positive results can be assured is to implement the schemes on 'area based approach'.

6.2 Advantages of Area Approach


Project based lending is more preferable than sporadic lending. A project approach has a definite area of operation, time frame, clientele and financial projections. Monitoring and evaluation of specified projects are more result oriented than that of unplanned and sporadic ones. A planned approach has the following advantages.

a) There will be clarity of objective and role of each stakeholder.b) Area of implementation and the target beneficiaries are identified

in advance.c) The financial share by each stakeholder is predetermined.d) The overall plan is further subdivided into several time bound, im-

plementable small tasks.e) Monitoring each stage of operation becomes easy. This also facili-

tates midcourse corrections wherever felt necessary. Incidence of failure can be minimized, if midcourse corrections are made on time.

f) Upon full implementation, evaluation in terms of physical and fi-nancial benefits to various stakeholders becomes easy.

g) Lessons learnt about success can be replicated in other similar ar-eas.

6.3 Area Based Schemes

In view of the several advantages pointed out above, in implementing schemes on an area based approach, this paper has identified some of the activities that are best suited for such implementation. Dairy development, homestead farming, fisheries, backyard poultry are some such activities. The Potential Linked Plans of the districts have identified 4 major activities, under which model plans can be prepared for implementation on a small scale for the purpose of demonstration. The activities and the potential investment under such model plans are as under.

Table No. 6.1- Potential Area Based Schemes identified in PLPs

S. No District

ActivityFish cum

Piggery

Dairy cum Vermi

CompostHomestead farming

Backyard

PoultryTotal

1 Dhalai 21.60 0.00 10.00 0.00 31.602 Gomati 0.00 399.60 0.00 0.00 399.603 North

Tripura0.00 0.00 0.00 15.00 15.00

4 Sipahijala 0.00 172.80 0.00 0.00 172.80


5 South Tripura

0.00 0.00 17.50 0.00 17.50

6 Unakoti 0.00 0.00 0.00 10.50 10.507 West

Tripura0.00 209.60 0.00 0.00 209.60

8 Khowai 0.00 0.00 25.00 0.00 25.00Total 21.60 782.00 52.50 25.50 881.6

0

6.3.2. As can be observed from the above table, the total value of the model area based schemes is only Rs.881.60 lakhs, which forms a very miniscule part of the total potential estimated under agriculture terms loans. These schemes are supposed to serve as examples, which when successfully implemented, need to be broad based and implemented on a much larger scale. The following are some of the points which need to be taken into consideration while preparing and implementing model area development schemes.

6.3.2.1. Capitalizing the existing infrastructure

Over the past several years, sizeable investment has been made by Government, Co-operatives and Private sector in improving various types of infrastructure viz., road connectivity, dairy processing, fish feed godowns, cold storages, ice manufacturing units, fish markets, etc., some of which has not been fully utilized to their full potential and can be tapped.

6.3.2.2. Coordination with stakeholders

Successful implementation of the area based schemes will depend to a large extent on the involvement of all the stakeholders such as banks, Government departments, beneficiary farmers, NGOs etc. Much of the success depends on the tie-up for marketing. An area development plan, should therefore take all these factors into account in order to ensure its successful implementation.

6.3.2.3. Advantages of Scale

One of the biggest advantages of implementing projects on a cluster basis, is reaping the benefits of scale. When farming is undertaken on a collective basis, the cost of production comes down because of bulk purchase of inputs. Farm management and timely advice by agriculture department on best practices are also made easy. The farmers will also be in a better position to attract traders and negotiate for a better price for their produce. When these activities are undertaken on a continuous basis, it will also pave the way for strengthening their operations through


formation of Farmers Clubs and Farmer Producer Organisations (FPOs)/Producer Companies, etc.

6.3.2.4. Multiplier effect

Once implemented successfully, these ventures will attract the attention of the neighboring villages. Inquisitive farmers, after learning about the success of a project in their vicinity, will start demanding for a similar exercise in their area. These projects will soon become ‘demand driven’.

6.3.2.5. Process of preparation of Area Based Projects

Based on the overall potential identified for each sector in Chapter 4, areas offering the maximum facilities in the form of infrastructure, bank branches, etc., may be identified on priority basis. The services of DDMs may be made use of for such identification. Thereafter, in consultation with the various developmental departments of the Government and the LDM, the physical potential identified for the area may be broken down into bank branch wise targets. Preliminary meetings with the probable beneficiaries may also be arranged through the medium of Farmers Clubs, wherever available. The cooperation of the beneficiaries for whole hearted support in the projects implementation may be solicited and rolled out through a Participatory Rural Appraisal (PRA) exercise. Shramdaan, wherever found appropriate, may also be undertaken, to ensure the beneficiaries sustained participation throughout the project period. The banking plan so prepared after these steps, may then be placed in the DCC meeting for detailed discussion and support by the banks concerned. Wherever needed, bi/tri partite agreements may also be entered into with the input suppliers, market facilitators, etc., to ensure their commitment in the project. After commencement of the project, its progress may be monitored closely in all the DCC and BLBC meetings.

6.4. A few Model Projects

To facilitate the banks in preparation of Area Based Schemes, model projects on a few activities have been prepared. A brief summary of such schemes is given below.

6.4.1. Composite Fish Culture

6.4.1.1. Introduction

Fish is the cheapest and the most easily digestible animal protein. It is a rich source of Vitamin D. Fish farming can be easily undertaken in village


ponds, tanks or any new water bodies. The technology by which more than one type of compatible fish are grown simultaneously is called composite fish culture. This technology enables one to reap maximum fish production from a pond or tank, by making use of the available fish food organisms, supplemented by artificial feed. Any perennial fresh water pond or tank retaining water depth of 2 meters can be used for fish culture. The minimum water level should not fall below one meter. Even seasonal ponds can be utilised for short duration fish culture.

6.4.1.2. Fish species involved in composite fish culture

Depending on the compatibility and type of feeding habits of the fishes, the following types of fishes of Indian as well as exotic varieties have been identified and recommended for culture in the composite fish culture technology.

Table No. 6.2. Varieties of fishes for culture

Fish Species Feeding Habbit Feeding ZoneIndian Major CarpCatla Zoo plankton Surface feederRohu Omnivorus Column feederMrigal Detritivore Bottom feederExotic CarpSilver Carp Phytoplankton Surface feederGrass Carp Herbivorous Surface, column and marginal

areaCommon carp Detritivore/

OminivorousBottom feeder

6.4.1.3. Important Technical ParametersSome of the important technical parameters that need to be observed in composite fish culture are as under:

6.4.1.3.1. Pond SelectionThe soil should be water retentive. Adequate supply of water should be assured. At the same time, the pond should not be in a flood prone area. Derelict, semi derelict or swampy ponds can be renovated for fish culture by dewatering, desilting, repair of the embankments and provision of inlet and outlet. Construction of new ponds in ideal sites is recommended keeping in view the above parameters. Expenditure incurred on activities such as desilting, deepening of shallow ponds, excavation of new ponds, construction or repair of embankments, construction of inlets and outlets, civil structures such as watchman sheds, pump sets, water supply arrangements, electricity etc., can be included in the project cost.


6.4.1.3.2. Pond Management

Pond Management plays a very important role in fish farming before and after the stocking of fish seed. Various measures that are required to be undertaken in pre and post stocking practices are tabulated below:

a.)Pre-stocking

In case of new ponds, pre stocking operations starts with liming and filling the pond with water. In case of existing pond, the first step is to remove the pond surface from all unwanted weeds and fish, either by manual, mechanical or chemical means. Unwanted and predatory fish and other animals are removed by repeated netting or by using mahua oil cake @ 2500 kg/ha meter or by sun drying the pond bed. The tanks which are acidic in nature are less productive than alkaline ponds. Hence lime is used to bring the pH to the desired level. The normal dosage of lime ranges from 200 to 250 Kg/ha. However, the actual dose has to be calculated based on pH of the soil and water as follows. The pond is required to be filled with rain water or water from other sources after the liming process is over. A new pond also requires to be manured. Fertilization/Manuring of a pond is an important means for intensifying fish culture by increasing the natural productivity of the pond. A combination of both organic and inorganic fertilizers may be used for best results. The fertilizer programme has to be suitably modified depending on the growth of the fish, available food reserve in the pond, physico chemical conditions of the pond and climatic conditions. Organic manure may be applied after a gap of 3 days from the date of liming. Cow dung @ 5000 kg/ha or any other organic manure in equivalent manurial value can be applied. Inorganic fertilization with nitrogen and phosphorus can be undertaken after 15 days of organic manuring. Requirement of nitrogenous and phosphate fertilizers would vary as per the nature of the soil fertility.

b) StockingThe pond will be ready for stocking after 15 days of application of fertilizers. Fish fingerlings of 50- 100 gm size (approximate) should be used for stocking @ 5000 nos. per hectare. However, if fingerlings of smaller size are used, suitable allowance may be made accounting for mortality. The present model envisages stocking of advanced fingerlings and rearing for 10-12 months. Depending on availability of seed and market condition, stocking can be of 3, 4 or 6 species combination in the following ratio.


Table No. 6.3: Ratio of fish species combinationSpecies 3 Species 4 Species 6 Species

Catla 4 3 1.5Rohu 3 3 2Mrigal 3 2 1.5Silver Carp 1.5Grass Carp 1.5Common Carp 2 2

c) Post Stocking Supplementary feedingFish need more food than what is available naturally in the pond. They can be fed with a mixture of rice bran and oilcakes in the ratio of 4:1. Due to the high cost of ground nut oil cake (GOC), farmers have tried using alternate sources like cottonseed oil cake which is comparatively cheaper than GOC. Cotton seed oilcake and GOC can be mixed in equal proportions and fed to the fish. The feed should be placed on a feeding tray or in feeding bags and lowered to the pond bottom. It can also be dispersed at the corners of the pond. After some time the fishes will get used to this type of feeding and aggregate at the same place at particular time for regular feeding thereby reducing the feed loss. The recommended feeding rate is 5 - 6% of the body weight upto 500 gm size of fish and then reduce to 3.5% of body weight from 500- 1000gm size. This feeding is supplementary in nature.

6.4.1.3.3. HarvestingHarvesting is generally done at the end of 1st year, when the fish are in the weight range of 800 gm to 1.25 kg. With proper management, an yield of 4 to 5 tons/ha can be obtained in a year. Harvesting is done by partial dewatering and repeated netting. In some cases complete dewatering of ponds is resorted to. Some farmers resort to partial harvesting also depending on the season and demand for fish.

6.4.1.4. Innovations in composite fish culture/vertical expansion of fish culture

A number of measures are now being employed by the entrepreneurs to increase the per hectare production of fish. Important measures adopted are stocking of advanced fingerlings/yearlings by stunning the growth of fish seed during first year, heavy stocking and multiple harvesting after the fishes attain a size of 500 gm, multiple stocking and multiple harvesting, use of aerators, integrated fish farming with animal husbandry activities like dairy, poultry, piggery or duckery. It is


possible to increase the per hectare production of fish upto 7-10 tonnes per ha/per year by employing different methods as indicated above.

6.4.1.5. Financial ParametersThe approximate cost of undertaking composite fish culture under the 3-species Indian Carp model is Rs.3.44 lakh/ha. The details of the cost estimates are as under:

Table No. 6.4. Indicative cost of composite fish culture-1 Ha area

S.No

Particulars Unit

Quantum

Rate Total

A Capital Cost Amount Rs..

1 Site clearance LS 7000 70002 Construction of pond including

digging, bund construction and compaction and consolidation (using earth moving equipment)

Hrs 40 1500 60,000

3 Diesel Pump set 3 HP

1 30,000

30,000

4 Inlet/outlet sluices LS 8000 80005 Store room/ rest room sqft 150 300 45,0006 Nets and other implements LS 12,00

012,000

7 Miscellaneous LS 6000 6000Total ‘’A’’ 1,68,000

B Operational cost for one crop(one year)

1 Drying, desilting, ploughing etc. LS LS LS 60002 Lime Kgs 500 20 10,0003 Single Super Phosphate Kgs 250 15 37504 Urea Kgs 125 15 18755 Raw cow dung Ton

s10 1000 10,000

6 Fish seed: Catla (2000), Rohu (1500), and Mrigal (1500) @ ` 5 each fingerling

Nos 5000 5 25,000

7 Fish feed Kgs 6000 18 1,08,0008 Harvesting charges LS 60009 Miscellaneous LS LS 5000

Total 'B' 1,75,625Total A+B 3,43,625

Table No. 6.5. Working out Economics

Particulars Year 1 Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Fixed cost 1.68 0.00 0.00 0.00 0.00 0.00 0.00*Recurring cost 1.76 1.84 1.93 2.02 2.12 2.22 2.33

Total cost 3.44 1.84 1.93 2.02 2.12 2.22 2.33


Benefits **Income from sale of fish 1.57 3.32 3.50 3.67 3.85 4.02 4.20

Benefit 1.57 3.32 3.50 3.67 3.85 4.02 4.20Net Benefit -1.87 1.48 1.57 1.65 1.73 1.80 1.87NPWB at 15% DF 13.51 NPWC at 15% DF 9.70

NPV 3.81 BCR 1.39 IRR in Percentage 81.55%

Assumptions: * Recurring cost increased by 5% every year in the calculation above;

** Farm gate price of fish estimated at Rs.90 and half of potential yield is taken into account in Year 1 for calculation and subsequently increased by Rs.5 every year assuming a production of 3500 kg/ha, 85% survival rate and 1.1kg size at harvest.Margin for Bank Loan @15% and Rate of Interest @12% p.a. on a total bank loan of Rs. 2.92 lakh.

Table No. 6.6: Repayment Schedule

Year Net Income Interest Principa

lTotal outgo

Bank Loan O/S

Net Surplus

1 -1.87 0.33 0.28 0.61 2.63 -2.482 1.48 0.29 0.31 0.61 2.31 0.873 1.57 0.25 0.35 0.61 1.95 0.964 1.65 0.21 0.40 0.61 1.55 1.045 1.73 0.16 0.45 0.61 1.09 1.126 1.80 0.10 0.51 0.61 0.58 1.197 1.87 0.038 0.58 0.61 0.00 1.26

Production and incomeAs stated in the above tables, the total annual income will around Rs. 1.57 lakh during the first year and a minimum of Rs.3.20 lakh from the second year onwards. The net surplus after meeting all expenses, including servicing the bank loan, would be around Rs.1.00 lakh per annum. The IRR works out to 63%. The bank loan for 85% of the project cost with an interest rate of 12% can be repaid in 7 years, with an initial gestation period of 1 year.


6.4.2. Homestead Farming System

6.4.2.1. Background

Most of the farmer’s households of the state have a homestead garden of an average area ranging from 0.08 ha to 0.16 ha, wherein seasonal vegetables are grown for subsistence. This is supplemented by livestock farming viz. poultry, piggery, goatary, etc. In the surroundings of the homestead, mostly climber/creeper/bushy types of plants are used as fencing. The poor farmers are often forced to sell their crop land due to financial crisis. However they tend to retain the homestead land. Homestead gardens are considered to be more valuable from the point of socio-economic status of family in view. These homestead gardens can be established as an integrated homestead garden to supplement the family income as also nutritional requirements. Different crops including trees are grown in combination with livestock and fish in the homestead garden. Homestead Farming System (HFS) will have its impact in two ways i.e., conservation and use of on-farm natural resources and meet the family needs for food, fodder and fuel besides cash income. In the year 2009-12, NABARD entrusted KVK, South Tripura with a project “Upscaling of Homestead Farming System” in the seven villages of South Tripura district. Low input cost, stable field, adoption of simple technology and intensive management practices by the family members are the main features of homestead farming implemented by KVK. The project proved that the Homestead Farming System can be replicated in all the districts of the state to improve production and productivity of small homestead lands of majority of farmers in an integrated and suitable manner.

6.4.2.2. Objectives of the Project : To provide sustainable income to the landless, small and marginal farmers through integrated farming system, by judicious use of homestead land with adoption of proper and scientific technologies.

6.4.2.3. Technical Service Provider : The technical support for implementation of the project may be provided by Krishi Vigyan Kendra. KVK would also provide the inputs viz. planting materials, livestock, mushroom spawn, etc., besides guidance/ handholding support to the farmers in preparation of the field.

6.4.2.4. Target Group : Target group under the scheme would be basically small and marginal farmers having an average area ranging from 0.08 ha to 0.16 ha of homestead land.


6.4.2.5. Capacity Building: Prior to implementation of the project, all the farmers selected would be provided with three days capacity building / skill training by KVK-B C Manu on various components of the HFS.

6.4.2.6. Project Period : The project can be implemented within a period of 3 years so that the farmers earn sustainable income from the homestead farm from all the components.

6.4.2.7. Financial Projections : The minimum bank loan support requirement would be around Rs.25000.00 per homestead, which would be extended by the selected bank branches at rate of interest applicable to allied sectors. NABARD may support capacity building of the farmers for proper implementation of the project. Further, NABARD may also consider providing incentives to the Farmers Clubs if they participate as PIA for overall monitoring of the project implementation.

6.4.2.8. Farm inputs: Farm operations showing activities, months of operation & crop area per unit under the project are as under:

Table No. 6.7: Details of farming

Activity Operational Months

Proposed Area Coverage

Nutritious and High Value and Low Volume Vegetable Production

Dec-Feb, June-Aug, Sept-Nov

0.08 ha

Spices and Tuber Crop Production Feb-Dec 0.04 haFruit & Plantation Crop Production (Mango, Lemon, Pineapple, Banana, Papaya, Coconut, Litchi, etc.)

July-Aug 0.04 ha(300 plant

approx)Rural Poultry (dual purpose like Grampriya)

All months 15 nos.

Rural Goatary (Black Bengal) All months 2 nos.Mushroom (Oyster) Sept-Feb 50 cubesVermicomposting All months 1.5 ton capacity

6.4.2.9. Field preparation: About 0.16 ha (1 kani) of land is required for implementation of the project. The land can be developed by removing bushes, shrubs and land levelling.

6.4.2.10. Farming System ApproachTable No. 6.8: Technical Approach

S. No.

Technical approach

1 Introduction of early varieties of tomato, cauliflower, brinjal, vegetables, peas, etc. both for market and own consumption and prevent malnutrition and enhance the nutrition status especially in women and children.

2 Use of standard spacing between perennial and annual crops.3 Adoption of shade loving spices & tuber crops like turmeric, ginger,


tapioca, E.Foot Yam and discoria intercrop in the areas of banana and papaya plantation.

4 Use of fallow areas on the farm including pond embankment and ridges for annual fruits and seasonal vegetables (Nutrition Garden)

5 Recycling of available bio-resources and on-farm production of organic manures by vermicomposting and droppings of poultry and goat to provide required essential plan nutrients to homestead farms.

6 Production of Oyster mushroom at small scale to fulfill the vegetable requirement of their family and enhance the nutrition status.

7 Upgradation of local birds into Grampriya breed, which is for dual purposes (eggs & meat) to help the farmers generate more income. Chicken manures are the richest source of nutrients and can be is used to reduce the use of chemical fertilizers.

8 Integration of goat provides additional income to the farmer besides effectively utilizing unpaid family labour.

6.4.2.11. Irrigation: Small fish pond or dug wells and bore-wells are generally available with farmers for providing necessary irrigation and other water uses during summer season to the farm area for vegetables, fruits, livestock, farm labourers, etc.

6.4.2.12. Crop / Livestock / Enterprises Productiona) Vegetables: Vegetable cultivation can be undertaken both in Kharif

and Rabi seasons. Off-season HYV with short duration of Cowpea (var. Kashi Kanchan), Cauliflower (var. Kamiya), Tomato (var. All Rounder), Okra (var. OH 152), Brinjal (var. Singhnath), Carrot, Bitter Gourd and Cucumber can be grown for better utilization of residual soil moisture and market income. Vegetable varieties should be resistant to bacterial diseases, suitable to cool and dry temperature, moderate heat tolerance and starts harvesting within 50-55 days. About 0.08 ha can be cultivated 3 to 4 times covering about 0.32 ha in a year. Spices and tuber crops: Ginger, Turmeric and Chillies as spices crops and Elephant Foot Yam, Discoria, Tapioca and Colocasia as tuber crops can be grown. These crops can be taken as inter crop in the fruit plantation area of homestead farm. About 0.04 ha area can be utilized under these crops.

b) Fruit crop plantation: Tripura offers favourable environment for the growth of different fruit crops like banana, papaya, pineapple, litchi, mango, jackfruit, etc. A large area of every homestead farm remains fallow where a farmer can easily get year round fruit supply if plantation of diversified fruit trees is done in planned way. About 100 numbers of fruit plants can be transplanted which start fruit bearing from 2nd year onwards i.e Papaya (2nd year), Amrapalli mango (3rd

year), Coconut and Arecanut (4th year). As Tripura has best quality


pineapple, each farm can plant 200 suckers of queen variety for its cultivation as inter crops.

c) Mushroom production: Mushroom cultivation, being a complimentary enterprise, uses farm resources which otherwise remain underutilized. It generates gainful employment for farm family. The agro-climatic conditions of Tripura favour cultivation of Oyster mushroom during the month of September to February. About 38 – 47 kg of mushroom per 50 cubes can be harvested within two months.

d) Livestock production: Animal husbandry has become an important farm activity and provides additional income to the farming community throughout the year. To generate the additional income by utilizing on-farm resources, 15 numbers of dual purposes Grampriya poultry and 2 numbers of black Bengal goats can be integrated in each unit. Dual purpose Grampriya poultry is very efficient in scavenging rural waste materials, require minimum artificial feed, better survivability in local conditions. Farmer could get about 140-160 eggs and 2.5-3.0 kg meat from each poultry bird in one year. Black Bengal goat can effectively survive on shrubs and trees in low fertility lands. This goat is early-maturing, kidding occurs twice a year, give multiple births (2-3 numbers) and produce excellent quality meat production. The farmers can get 4 goat kids from two goats.

e) On-farm compost production: In Tripura most of the farmers cultivate their crops under rainfed condition. All rainfed crops are considered as low nutrients requirement crops. In vegetable crops such as Carrot, Okra, Coriander, Brinjal, Cucumber, Ginger, Cabbage, Cauliflower, Potato, Chillies, Tomato and Turmeric, a dose of about 400 kgs of vermi-compost per 0.16 ha can be used as a substitute for chemical fertilizers. In fruit crops depending on the stage of growth, vermin-compost use of 1-20 kgs per plant gives better yield. Use of vermi-compost also improves the soil quality by improving its water and nutrient holding capacity. To reduce the cost of cultivation and to reduce chemical fertilizers, a low cost vermi-compost tank (3m x 2m x 0.75m: L x W x H) can be established in homestead farm for the production of 1.5-3.0 tons compost per year. The most popular species of earthworm Eisenia foetida was used for vermi-composting. The farmer can produce up to 3000 kg of compost and used for vegetable, spices and fruit crops. The use of vermi-compost can reduce up to 50 per cent of chemical NPK fertilizer cost.


6.4.2.13. Pest, Disease and Weed Management

Weeds, pests and disease of crops shall be controlled by a number of preventive cultural techniques which limit their development. The natural predators of pests and diseases shall be protected and encouraged through appropriate habitat management.

6.4.2.14. Marketing

There is great demand for off season vegetables, fruits (Mango, Pineapple, Lemon, Coconut, Banana, Papaya) and spices & tuber crops, poultry & goat meat, eggs, mushroom in the local markets. All the farm products can be easily sold in the nearby market.

6.4.2.15. Production System

As per the Homestead Farming demonstration following production and income can be generated from 0.16 ha area after 1st year of farm work. The details of Production System are indicated in the following table:

Table No. 6.9: Details of Production System

HFS Production SystemCommodity Area

(ha)/Nos.Av. Yield

(kg)Income (Rs.)

Veg

etab

les

Rabi SeasonCauliflower 0.040 220 5500Tomato 0.038 180 3700Carrot 0.002 25 500Summer SeasonBitter gourd 0.032 150 3750Cucumber 0.016 60 3000Okra 0.032 245 7350Summer SeasonBrinjal 0.032 320 6400Cowpeas 0.048 500 7600

Total: 0.08 x 3 = 0.240

1700 37800

Spic

es &

Tub

er C

rops

Intercrop in Fruit AreaGinger 0.050 150 6000Turmeric 0.020 100 4000Intercrop in Vegetable areaChillies 0.020 100 5000Near Pond / Tree shades areaE Foot Yam 0.002 30 450Discoria 0.002 50 750Colocasia 0.008 80 800


HFS Production SystemCommodity Area

(ha)/Nos.Av. Yield

(kg)Income (Rs.)

Total: 0.136 448 17000Mushroom 50 cubes 47 4200

Egg

&

Mea

t Poultry Eggs 15 poultry 1000 nos. 4000Poultry Meat 15 poultry 45 kg 7000Goat Kids 2 goats 4 nos. 6000

Total: 17000

Com

pos

t

Vermicompost - 3500 7000Chicken manures - 300 600Goat manures - 700 1400

Total: 4800 9000

Frui

ts

Papaya (24 plants) 0.008 900 kg 8000 – 9000Mango (24 plants) 0.020 600 kg 8000 – 12000Coconut (22 plants) 0.024 750 nuts 6000 – 8000Arecanut (30 plants) 0.012 15000 fruits 4000 – 6000Pineapple (200 plants) 0.006 200 fruits 1000 – 2000

Total: 0.070 - from 3rd year onwards


6.4.2.16. Production and cost of farming (Income-Expenditure analysis)

Table No. 6.10: Income and Expenditure – Homestead Farming(Amount Rs.)

Activity YEARA Expenditure 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

1 Vegetable (Seed, fertilizer, PP) – 0.08 ha

1700 1870 2060 2260 2490 2740 3015 3315 3640 4000

Maintenance cost of vegetable plots

1400 1600 1800 2000 2200 2400 2600 2800 3000 3300

2 Spices & Tubers (Seed, Fertilizer, PP) – 0.04 ha

1450 1600 1760 1940 2130 2340 2575 2835 3115 3425

Maintenance cost of Spices & Tuber Plots

500 600 700 800 900 1000 1100 1200 1400 1500

3 Fruits (Planting material, fertilizer, PP) – 0.08 ha

4500 1000 0 0 0 0 0 0 0 0

Maintenance cost of fruits

500 500 600 700 800 900 1000 1100 1200 1300

4 Mushroom Unit – 50 cubes

1000 1100 1200 1300 1400 1500 1600 1700 1800 1900

Maintenance cost of mushroom unit

400 400 500 600 700 800 900 1000 1100 1200

5 Poultry Unit (Chicks, feed, medicine)–15nos

2200 2420 2660 2920 3210 3530 3880 4270 4700 5170

Maintenance cost of poultry unit

500 500 600 700 800 900 1000 1100 1200 1300

6 Goatery Unit (2 kids)

2500 0 0 0 0 0 0 0 0 0

Maintenance cost of Goatery unit

300 300 200 220 240 270 300 330 365 400

7 Vermi-compost Unit

7500 0 0 0 0 0 0 0 0 0

Maintenance cost of vermi-compost unit

400 400 440 480 530 580 640 700 770 850

8 Miscellaneous 2500 500 750 1000 1250 1500 1800 2200 2600 3000Total Maintenance Cost

6500 4800 5590 6500 7420 8350 9340 10430 11635

12850

Total expenditure

27350

12790

13270

14920

16650

18460 20410

22550 24890

27345

B Capital Cost 27350

12790

13270

14920

16650

18460 20410

22550 24890

27345

C INCOME1 Vegetable 0 3780

03820

03860

03890

039400 3980

040200 4060

041000


Activity YEARA Expenditure 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th

2 Spices & Tuber Crops

0 17000

17200

17400

17600

17800 18000

18200 18400

18600

3 Fruits 0 0 10000

11000

12000

20000 19500

18500 30500

32000

4 Mushroom Unit

0 4200 4500 4550 4600 4650 4700 4750 4800 4850

5 Poultry Unit 0 9800 10300

10800

11340

12000 12600

13200 13900

14600

6 Goatery Unit 0 7200 8000 8800 9680 10650 11700

12800 14000

15400

7 Vermicompost Unit

0 9000 9100 9200 9300 9400 9500 9600 e9700

9800

Total Income 0 85000

97300

100350

103420

113900

115800

117250

131900

136250

Gross Surplus 0 72210

84030

85430

86770

95440 95390

104700

107010

108905

Loan Installment

Grace

13408

9737 8842 0 0 0 0 0 0

NET SURPLUS 0 58802

74293

76588

86770

95440 95390

104700

107010

108905

6.4.2.17. Financial analysis

As per the financial analysis of the project, calculated with discounted cash flow method, while the Benefit Cost Ratio works out to 3.32, the Internal Rate of Return (IRR) works out to 43%. Thus the project is financially viable.

6.4.2.18. Repayment Schedule

The principal and interest will be repayable within 4 years with one year grace period. Repayment schedule is as under:

Table No. 6.11: Repayment Schedule(Amount in Rs.)

TFO 27500

Repayment schedule of Homestead FarmingMargin

2500

Bank Loan

25000

Year Loan o/s at the

beginning of the year

Interest

@11.0%

Gross Surplus

Repayment Total Surplus after repayment

Loan o/s at end of the year

Principal Interest

1 25000 2750 0 0 0 0 0 250002 25000 5080 72210 8328 5080 13408 58802 166723 16672 1414 84030 8328 1414 9737 74293 83444 8344 498 85430 8344 498 8842 76588 0.00

6.4.2.19. Conclusion

The project will be technically feasible, financially viable and bankable. It is expected that, on implementation of the project, the participating farmer would be able to generate sustainable income from his / her homestead farm round the year. Further, it is also expected that the


family of the participating farmer would get the required nutritional benefits.

6.4.3 Backyard Poultry6.4.3.1. Backyard poultry production is an age old practice in rural India. Most of the backyard poultry production comprises rearing of indigenous birds with poor production performances. The potentiality of indigenous birds in terms of egg production is only 70 to 80 eggs/ bird/ year and meat production is also very less. However, the backyard poultry production can be easily boost up with improved varieties of chicken and can promise a better production of meat and egg. To improve the socio-economic status of the traditional farmers, backyard poultry is a handy enterprise with low-cost initial investment, but high economic return along with guarantee for improving protein deficiency among the poor.

6.4.3.2 Why backyard poultry farming? Low initial investment but higher economic return. A unit can be started with as low as two chickens to a large flock. Feed cost is negligible due to better utilization of agricultural by-

products and leftover feed and grains. Egg and birds can be sold in local market with high price, because

there is a growing demand for local chicken. Generally high quality desi chicken meat or egg command higher

prices especially as the quality of chicken and egg is better in terms of organic farming as the birds are raised in stress less envir-onment with natural input.

It boosts up in family income for better utilization of family labour-ers, who are not able to perform other agricultural works like old family member or children.

Backyard poultry farming acts as an ‘ATM’, because as per family needs the birds and eggs can be sold at anytime anywhere with cash in hand.

6.4.3.3. Improved strain of poultry birds for backyard farmingDesi or indigenous birds are generally poor performers in egg and meat production. To obtain maximum profit from backyard poultry farming there is an urgent need in the country to improve the status of backyard poultry farming with improved strain of poultry birds, which can give


good results when raised in backyard with low inputs. Improved chicken that can be introduced in backyard poultry farming should have following characters : Adaptability in village condition Self propagation Good brooding capacity Mothering ability Well body conformation Sturdy in nature Good scavengers Attractive and coloured plumage Escaping capacity from predators Disease resistance

Considering the above characteristics, the varieties that can be recommended for backyard poultry farming, in Tripura, especially in view of their availability, are Tripura Black (25%), Coloured Broiler (25%) and Dahlem Red (50%). Their annual egg production is about 85 to 100 eggs/bird/ year. Egg weight varies from 55 to 60 gram and mature body weight varies from 2.0 to 2.5 kg.

6.4.3.4. Housing management for backyard poultry farmingNo elaborate housing is required for backyard poultry farming but, it should protect the birds from sun, rain and predators. If free range system is practiced the birds are let loose in day time for foraging and at night sheltered in shed. For better production performances the following criteria can be considered:

The poultry house should be in east-west orientation to protect from summer wind and cold stress and also for direct sunlight in winter months.

During summer direct sun light should be avoided to reduce the summer stress in birds.

Low cost housing material like wood, bamboo, grass, thatch etc can be utilized.

The poultry house should be free from water seepage or moisture. Floor should be in elevated land or above ground level (minimum

2ft) and free from water crack, easily cleaned, rat proof and dur-able.


There should be free air movement in upper part of the shed to re-duce gas formation inside the shed.

Height of the side wall in poultry house is generally 7 ft to 8 ft. The centre height is 9 ft to 12 ft with slope in either side.

Roofing material like thatch, tiles, asbestos, etc., can be used. Brooder house should have easy ventilation and wire netting which

is used for open air ventilation. Provision of bulb fitted above the ground as hoover may be utilized

to keep the chicks worm.

6.4.3.5. A typical design of a ‘coop’ can be as under:Design 1: Typical design of a ‘coop’

6.4.3.6. Brooding of ChicksThere are two types of brooding viz. Natural brooding and Artificial brooding that can be adopted for backyard poultry farming.

6.4.3.7. Natural broodingIf natural brooding is practiced the local broody hen is used as the indigenous hens are very good sitters. Improved variety of fertile eggs are put into incubation. The hen is provided with nesting materials. Food and water supply is given throughout the incubation period. A broody hen can easily take care for brooding and hatching of 12 to 15 chicks. After hatching the chicks are let loose along with mother for scavenging. There should be provision for separate place inside the shed for young chicks and mother at night.

http://www.extension.umn.edu/food/small-farms/livestock/poultry/backyard-chicken-basics/img/coop-design.jpg


6.4.3.8. Artificial broodingIn artificial brooding provision of artificial heat is necessary. Artificial heat can be provided with electricity, gas, kerosene, wood, sawdust etc. ‘Bukharies’ also can be used as a source of artificial heat. Wood, charcoal or sawdust is used in ‘Bhukaries’ and it is an ideal source of artificial heating when there is acute shortage of electricity, gas and kerosene. The optimum temperature is 95⁰ F in first week and it can be reduced 5⁰F per week up to 6 week till 70⁰F. Two watt/ chick heat is required up to 6 week in brooder house. The necessity of light in brooder house is to increase feed consumption for maximum growth in a short period and also to prevent stampeding or piling if scared. Initially (up to 6 weeks) there should be provision for at least continuous light up to 48 hours in brooder house and in growing stage (8 to 18 weeks) light hour is 10 to 12. But in laying period light should be for 15 to 16 hours. The provision for extra light may be in the morning or evening or may be morning and evening both. To prevent direct contact with heat a chick guard made up of card board or metallic guard can be used in brooder house. The height of chick guard is 15” to 18” is placed in circular shape at a distance of 3’ away from the hover.

6.4.3.9. Feeding managementThe feed cost alone is 70% of total expenditure in poultry production. In backyard poultry farming the feed cost is considered to be minimum. Hence, the birds are let loose for scavenging in the open yard and collect the required protein, energy, minerals and vitamins etc., from insects, snail, termites, seeds of grasses and weeds, leftover grains, crop residues and household wastes. Feed ingredients like broken rice, ground nut straw, wheat or job’s tear grain, rice bean etc., also can be given to the birds. During rainy season poultry feed should not be stored more than 1.5 months to avoid fungus growth (Aflatoxicosis). In backyard poultry farming generally two times feeding is practiced; once at morning and another at evening. The space requirement for feeder is 2 to 7 cm at brooding period, 7 to 10 cm during growing stage and 12 to 15 cm / bird at laying stage. The water space should be 0.5 to 1.5 cm during brooding, 1.5 to 2.5 during growing and 2.5 cm during laying period. The birds may be supplied with extra concentrate ration @ 30 to 60 gm/ day/ bird for better performance. The balanced ration may be formulated with appropriate percentage of maize, rice polish, wheat bran, ground nut cake, fish meal, shell grit or lime stone along with salt, minerals and vitamins or may be with locally available ingredients. The poultry feed


should contain at least 20% protein in starter level, 16% in grower and 18% in laying stage with energy level (ME) 2800 kcal/kg feed in starter, 2600 kcal/kg at grower and 2650 kcal/kg in layer ration.6.4.3.10. Health care managementFor better health care in backyard poultry farming the birds should be vaccinated against virus diseases in time. The diseases that mostly effect the birds are Ranikhet disease, Marek’s Disease, Fowl pox, Gumbroo disease etc. Regular vaccination schedule may be followed. (Table 1). Deworming for internal and external parasites also should be done to maintain a healthy flock. Other diseases that may affect the poultry birds are Coccidiosis, infectious coryza, Salmonellosis etc.

Table No. 6.12. Vaccination schedule for poultry birds

S.No. Age of birds Name of Vaccine

Name of Disease

Doses Route of Vaccination

1 Day old Chicks HVT MD Vaccine Marek’s Disease 0.2 ml S/c or I/m2 4 to 7 days F-1/ Lasota Ranikhet Disease One drop Eye or nostril3 14 to 18 days Intermediate plus Gumboro disease - Drinking water4 35 days F-1/ Lasota Ranikhet Disease One drop Eye and nostril5 6 to 7 weeks Chicken embryo

adoptedFowl Pox 0.5 ml Wing stab

method6 8 to 10 weeks Strain killed

vaccineRanikhet Disease 0.5 ml S/c or I/m

6.4.3.11. Other suggestions for backyard poultry farming

Disease free, improved strain, dual purpose poultry birds may be procured for back yard poultry farming.

Periodical vaccination should be done on regular basis. Clean drinking water and fungus free feed should be supplied to

the birds. The poultry shed should be regularly cleaned and free from mois-

ture and humid condition. Overcrowding should be avoided. If possible there should be separate space for different age group

of birds. Sick bird should be immediately separated/ culled from healthy

flock. Poultry equipment particularly waterer and feeder should be regu-

larly cleaned and disinfected. There should be restriction for outsider into the poultry shed or

farm.


The birds should be free from predators and should not be scared by other animals.

Before procuring new flocks the shed should be thoroughly cleaned and disinfected.

There should be provision for footbath in front of poultry shed. During summer and winter months the shed should be protected

from hot or cold wind by hanging curtain around the side of the wall or shed. In summer months water sprinkling also can be done.

6.4.3.12. Prior to commencement of the activity/ project, the farmers can be imparted training on various aspects of backyard poultry farming viz., management, rearing and pathology of the dual birds, etc., at ICAR, Lembucherra, Agartala.

6.4.3.13. Financial AnalysisFinancial analysis of the backyard poultry farming for a unit consisting of 100 birds with financial assistance from a bank under KCC at a unit cost of Rs.30,000.00 would be as under:

Table No.6.13: Financial Analysis(Amount Rs.)

S. No. Particulars I Year II Year III Year

1 Capital Cost (Shed) 11,000.00 - -

2Recurring Cost (Feed - Rs.12,000.00 & cost of 100 birds Rs.7000.00 @ Rs.70.00 per bird)

19,000.00 19,000.00 19,000.00

3 Total Cost 30,000.00 19,000.00 19,000.00

4Total Benefits (80 eggs @ Rs.5.00 per bird- Rs.400.00 & Meat 2 Kg @ Rs.150.00 per bird - Rs.300.00.

70,000.00 70,000.00 70,000.00

5 Net Benefits 40,000.00 51,000.00 51,000.00

6 NPW of Costs @ 15% 73,256.007 NPW of Benefits @ 15% 2,34,651.008 BCR 3.20

Table No.6.14: Debt Service Coverage Ratio (DSCR)

S.No Year I Year II Year III Year

1 Income from backyard poultry farming-A

70000.00

70000.00

70000.00

2 Interest Payment (KCC loan @ 7% pa) 2100.00 1400.00 1400.00


3 Principal Payment (Presumed having availed Rs.20000.00 next 2 years working capital)

30000.00

20000.00

20000.00

4 Total Payment-B 32100.00

21400.00

21400.00

5 Income divided by Services to Bank (A/B) 2.18 3.27 3.27

6 Average DSCR at farmer’s level 2.91

6.4.3.14. ConclusionIt is expected that, on implementation of the project, the participating farmers would be able to generate sustainable income. Further, it is also expected that the family of the participating farmers would get the required nutritional benefits.

6.4.3. Integrated Dairy Development(a) Introduction:Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. Dairying besides providing high quality human food in the form of milk, the manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gobar gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. The surplus fodder and agricultural by-products are gainfully utilised for feeding the animals. Almost all draught power for farm operations and transportation is supplied by bullocks. Since agriculture is mostly seasonal, there is a possibility of finding employment throughout the year for many persons through dairy farming. Thus, dairy also provides employment throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers and landless labourers. The per capita availability of milk per day in the State is about 90 gm as against nation’s average of 290 gm and recommended allowance of 250 gm, giving good scope for improving dairy development activities in the State.

(b) Loans from banks with refinance facility from NABARD are available for starting dairy farming. For obtaining bank loan, the farmers should apply to the nearest branch of a commercial bank, co-operative bank or Regional Rural Bank in their area in the prescribed application form which is available in the branches of financing banks. In addition to the


bank loan, subsidy under GoI’s Dairy Enterprise Development Scheme (DEDS) is also available for various activities under Dairy development.

© For dairy schemes with large outlays, detailed reports will have to be prepared. The items of finance would include capital asset items such as purchase of milch animals, construction of sheds, purchase of equipment etc. The feeding cost during the initial period of one/two months is capitalised and given as term loan. Facilities such as cost of land development, fencing, digging of well, commissioning of diesel engine/pumpset, electricity connections, essential servants' quarters, godowns, transport vehicle, milk processing facilities etc. can be considered for loan. Cost of land is not considered for loan.

(d) A Scheme can be prepared by a beneficiary after consulting local technical persons of Animal Resources Development Department, Dairy Co-operative Society / Union / Federation / commercial dairy farmers. If possible, the beneficiaries should also visit progressive dairy farms and government/military/ agricultural university dairy farms in the vicinity and discuss the profitability of dairy farming. A good practical training and experience in dairy farming will be highly desirable. The dairy co-operative societies if existing in the villages would provide all supporting facilities particularly marketing of fluid milk. Nearness of dairy farm to such a society, veterinary aid centre, artificial insemination centre should be ensured. There is a good demand for milk, if the dairy farm is located near urban centre.

( e) The scheme should include information on land, livestock markets, availability of water, feeds, fodders, veterinary aid, breeding facilities, marketing aspects, training facilities, experience of the farmer and the type of assistance available from State Government, dairy society/union. The scheme should also include information on the number and types of animals to be purchased, their breed, production performance, cost and other relevant input and output costs with their description. Based on this, the total cost of the project, margin money to be provided by the beneficiary, requirement of bank loan, estimated annual expenditure, income, profit and loss statement, repayment period, etc. can be worked out and shown in the Project report.

(f) The scheme so formulated should be submitted to the nearest branch of bank. The bank's officers can assist in preparation of the scheme for filling in the prescribed application form. The bank will then examine the scheme for its technical feasibility and economic viability.


(g) Technical Feasibility: This would briefly include (a) proximity of the selected area to veterinary, breeding and milk collection centre and the financing bank's branch; (b) availability of good quality animals in nearby livestock market; (c) availability of training facilities, (d) availability of good grazing ground/lands, ( e ) availability of Green/dry fodder, concentrate feed, medicines etc.; (f) availability of veterinary aid / breeding centres and milk marketing facilities near the scheme area.

(h) Economic Viability: This would briefly include – (a) Unit Cost; (b) input cost for feeds and fodders, veterinary aid, breeding of animals, insurance, labour and other overheads; (c) output costs i.e. sale price of milk, manure, gunny bags, male/female calves, other miscellaneous items etc.; (d) Income-expenditure statement and annual gross surplus; (e)Cash flow analysis and (f) Repayment schedule (i.e. repayment of principal loan amount and interest).

(i) Other documents such as loan application forms, security aspects, margin money requirements etc. are also examined. A field visit to the scheme area is undertaken for conducting a techno-economic feasibility study for appraisal of the scheme.

(j) Sanction of Bank Loan and its Disbursement: After ensuring technical feasibility and economic viability, the scheme is sanctioned by the bank. The loan is disbursed in kind in 2 to 3 stages against creation of specific assets such as construction of sheds, purchase of equipment and machinery, purchase of animals and recurring cost on purchase of feeds/fodders for the initial period of one/two months. The end use of the funds is verified and constant follow-up is done by the bank.

(k) Lending terms - General

a. Outlay: Outlay of the project depends on the local conditions, unit size and the components included in the project. Prevailing market prices may be considered to arrive at the outlay.

b. Margin Money: Margin depends on the category of the borrowers and range from 5 to 25%.

c. Interest Rate for ultimate borrower : While the banks are free to decide the rate of interest within the overall guidelines, for working out the financial viability and bankability of the model projects we have assumed the rate of interest as 12 % p.a.

d. Security: Security will be as per NABARD/RBI guidelines issued from time to time.

e. Repayment period of loan: Repayment period depends upon the


gross surplus in the scheme. The loan will be repaid in suitable monthly/quarterly instalments usually within a period of five to seven years.

f. Insurance: The animals and capital assets may be insured annually or on long term master policy, where ever it is applicable.

(l) A model project with 2 crossbred cows is given below. This is indicative only and the applicable input and output costs as also the parameters observed at the field level may be incorporated. Further, the typical design of the sheds for housing cows could be as under:

Design 2: Model Shed design for 2 animal unit






(m) Linkages required: For successful implementation of the Integrated Dairy Development Project, multi-disciplinary approach should be adopted involving the various developmental agencies concerned with the dairy. The areas where linkages play important role are outlined here under:

a) Selection of beneficiaries based on their skills and experience.b)Training of the beneficiaries for ensuring the scientific management

practices.c) Availability of good quality animals and their acquisition.d)Veterinary aid and breeding cover.e) Insurance of animals and other assets.f) Marketing arrangements.

Table No. 6.15: Model Unit Cost and Economics of a 2 Crossbred cow unit

(Amt. in Rs.)

S.No Particulars Amount1 Cost of 2 Crossbred Cows including cost of transportation,

insurance for first year, infrastructure, etc) 1,20,000

2 Average Milk Yield per day (litres per day) 83 Insurance Premium (% per annum) 54 Veterinary aid/animal/ year 4005 Cost of concentrate feed (`/kg) 306 Cost of dry fodder (`/kg) 47 Misc expenses/animal/year 2008 Rate of interest (%) 12


9 Repayment period (years) 610 Selling price of milk (`/ litre) 4011 Sale of gunny bags `per animal) 125

Freshly calved animals in 1st or 2nd lactation are purchased in two batches at an interval of 5 to 6 months. Cost of rearing calves not considered as it will be nullified by their sale value or retention value. Value of manure not taken into account.

Feeding Schedule Per Day

Type of FeedLactation Dry

Price (`) Qty. (kg) Cost Per Day (`)

Qty. (kg)

Cost Per Day (`)

Concentrate Feed 30 3 90 1 30Green Fodder 1.5 25 37.5 20 30Dry Fodder 4 4 16 5 15Total 143.5 48

Lactation ChartYears 1 2 3 4 5 6

Lactation Days 425 510 515 515 515 530Dry Days 120 220 215 215 215 200

Economics

Particulars Years1 2 3 4 5 6

Sale of Milk 136000 163200 164800 164800 164800 169600Sale of Gunny bags 200 250 250 250 250 250Total 136200 163450 165050 165050 165050 169850Cost of feeding during lac-tation 60987.5 73185 73902.

5 73902.5 73902.5 76055

Cost of feeding during dry period 5760 10560 10320 10320 10320 9600Veterinary aid and breed-ing charges 800 800 800 800 800 800

Misc. expenses 200 400 400 400 400 400Insurance charges 0 6000 6000 6000 6000 6000

Total 67747.5 90945 91422.5 91422.5 91422.

5 92855

Surplus 68452.5 72505 73627.5 73627.5 73627.

5 76995 *Recurring expenditure capitalized is excluded from expenditure while arriving at surplus

D. Calculation of BCR and IRR

Particulars Years

1 2 3 4 5 6$Capital Costs 120000

Recurring Cost 66747.5 83745 84222.

584222.

584222.

5 85655

Total Costs 186747.5 83745 84222.

584222.

584222.

5 85655

Benefit 136200 163450 165050 165050 165050 16985

0


Net Benefit-

50547.5

79705 80827.5

80827.5

80827.5 84195

PW Costs @ 15% 307551 PW Benefits @ 15% 447273

NPW 139722 B.C. Ratio 1.45:1 I.R.R. (%) >50% $ Salvage value of animals and residual value of other capital assets not taken into account

E. Repayment schedule

Year

Loan Out-standing

Gross Sur-plus

Interest @12%

Princi-pal

Total Re-payment Surplus

1 120000 68452 14400 20000 34400 340522 100000 72505 12000 20000 32000 405053 80000 73627 9600 20000 29600 440274 60000 73627 7200 20000 27200 464275 40000 73627 4800 20000 24800 488276 20000 76995 2400 20000 22400 54595


CHAPTER 7

Doubling of Farmers’ Income by 2022

7.1 SANKALP SE SIDDHI

DETERMINATION TO ATTAINMENT

Let us together pledge for doubling agriculture income by 2022

Let us together pledge to adopt insurance for crop to secure in-come.

Let us together pledge to adopt organic farming and Soil Health Card for the health of the soil.a

Let us together pledge to adopt high-yielding seeds and planting material.

Let us together pledge we will adopt integrated agriculture system. Let us together pledge we will do value addition of agriculture pro-

duce and we will facilitate secure and proper storage of food grain.

Government of India envisaged seven-point strategies to double the in-come of our farmers by 2022:

Focus on Irrigation along with water use efficiency – “per drop more crop”.

Increase Production through Improved Seeds, Planting Mate-rials, Organic farming and Soil Health Card

Strengthening Warehousing and Cold Chain facilities to curb post-harvest losses

Value addition through Food Processing Overcoming deficiencies in agriculture marketing through e-

NAM linking 585 Regulated markets on the e marketing por-tal


Reduce risk and growth of agriculture Sector through cover-age of Pradhan Mantri Fasal Bima Yojana

Allied activities of agriculture like Dairy Development, Poul-try, Beekeeping, Fisheries, Agro-forestry, horticulture and In-tegrated Farming System

Sankalp se Siddhi programme is a 5 year plan, under which New India Movement 2017 will take place for betterment of the nation.

7.2 Background

a) Hon’ble Finance Minister Shri Arun Jaitley in his Budget Speech on 29 February 2016 announced, “We are grateful to our farmers for being the backbone of the country’s food security. We need to think beyond food security and give back to our farmers a sense of income security. Govern-ment will, therefore, reorient its interventions in the farm and non-farm sectors to double the income of the farmers by 2022.” It is the Hon’ble Prime Minister’s ‘dream’ to double farmers’ incomes by 2022, when In-dia celebrates its 75th year of Independence.

b) Farmers’ incomes have been reportedly lower after netting the ever growing input costs. Considering the rising family expenses especially on health and education, there is a daunting task, before all of us, of improving incomes substantially. However, with proper strategies, we can achieve the goal. Based on certain estimates, farm incomes can be doubled in less than 6 years considering the past performance. In fact, the incomes should more than double to neutralise impact of price rise. Income data from Situation Assessment Survey of NSSO for 2002-03 and 2012-13 showed similar trend and improvement in income of small holders has been slower, comparatively. Further, there has been diversification towards livestock activities while the relative shares of rural non-farm and wages in the total incomes of the farm households declined over time. Thus, we need a diversified plan for farm households backed by a well-enmeshed skilling plan. This is important as India, unlike the developed countries, could not reduce dependence of workers on agriculture even as share of agriculture in Gross Domestic Product declined steeply. Importantly, the doubling strategies should be region-specific given the diversity of agro-climatic conditions in the country.

c) NABARD through its credit planning at district and state levels suggests a few inputs for the strategies at district and state levels in this chapter.

d) As per NSSO report from July 2012 to June 2013, the level of average monthly farm income of farm holding in Tripura is Rs. 5,429.00 against the national average of Rs. 6,426.00.

e) Average annual farm income of agri-household in Tripura was Rs.20,904 in 2002-03 against all India average of Rs.25,380 which rose to Rs.65,160 in 2012-13 as against all India average


of Rs.77,124. Tripura occupies 19th Rank in all India. As per estimation, it may take 6.1 years to double the farmers’ income in Tripura.

f) So, the strategy to double the Farm Income by 2022 is suggested hereunder.

7.3 National Level Strategy to be adopted in Tripura

1. Irrigation with focus on water use efficiency “per drop, more crop”;

2. Quality seeds and nutrients based on soil health of each field;

3. Investments in warehousing and cold chains to prevent post-harvest crop losses;

4. Promotion of value addition through food processing;

5. Creation of a national farm market and removing distortions;

6. Coverage under crop insurance scheme to mitigate risks at affordable cost;

7. Promotion of ancillary activities like poultry, beekeeping and fisheries.

7.4 Doubling Farmers’ income by 2022 in the State of Tripura

The state of Tripura is endowed with rich natural resources and has diverse agro-climatic conditions which offer unique opportunities for cultivation of various crops, livestock rearing, fish culture etc. Tripura is the third-smallest among the 29 states in the country, behind Goa and Sikkim and it contributes to about 0.3% of the country's population. In spite of significant increase in foodgrain production, the state is yet to achieve self-sufficiency in overall foodgrain production. During 2016-17 (TY XII Plan), it has set a target of foodgrain production of 9.35 lakh ton against a requirement of 9.05 lakh ton for the projected population of 40.07 lakh. It leaves a surplus production to the extent of 0.30 lakh ton. There exists immense potential for increasing agricultural production in the state, which may impact surplus food produce be supplied to other states. The vision of ‘Doubling farmers’ income by 2022 is possible to be achieved in the state through ensuring farmers’ access to Skills, Technologies, Markets and Financial Inclusion.

7.5 Status of farmers’ income in Tripura: As per NSSO 70th round (January - December 2013), various key indicators of situation of Agricultural Households in Tripura vis-a-vis all-India are given below:

Average monthly income (Rs.) per agricultural household for the

agricultural year July 2012 - June 2013

https://en.wikipedia.org/wiki/Sikkim

https://en.wikipedia.org/wiki/Goa

https://en.wikipedia.org/wiki/States_and_territories_of_India


State Income from

wages

Net receipt from

cultivation

Net receipt from

farming of

animals

Net receipt

from non-farm

business

Total incom

e

Net investmen

t on productiv

e asset

Tripura

2185 2772 311 162 5429 13

All-India

2071 3081 763 512 6426 513

In terms of sources of income for agricultural households in Tripura, wage and cultivation is the major contributor to total income, ie 40% and 51%. The share of income from livestock and non-farm business to total annual income in Tripura is 6% and 3% respectively. In spite of huge market potential in livestock sector, the share of income from livestock sector is lowest in Tripura as compared to national level (12%). Thus, there is a need to adopt district specific interventions to address the challenges in livestock sector and boost farmers’ income through livestock sector as a part of Agriculture diversification strategy in the State.

Per 1000 distribution of agricultural households by major source of income

No. per 1000 households engaged inState Cultivati

onLivesto

ckOther

Agricultural Activity

Non-Agricultur

al Enterpris

es

Wage/ Salaried

Employment

Others

Tripura 988 267 117 79 885 259

All-India 926 719 94 147 495 191

In Tripura’s reference, only 267 households out of 1000 households are engaged in livestock related activity. More numbers of households may be encouraged for livestock rearing so that they can source their income from this activity. At the same time, the state has limited scope for increasing cultivable land.

Per 1000 distribution of agricultural households by major source of income

Per 1000 distribution of households by major source of incomeState Cultivati

onLivesto

ckOther

Agricultural Activity

Non-Agricultur

al Enterpris

es

Wage/ Salaried

Employment

Others


Tripura 835 31 15 17 83 18

All-India 635 37 11 47 220 51

Livestock sector will play decisive role towards doubling of farmers’ income by 2022 as it is less in comparison to national level. Farmers’ income can be increased from Fisheries sector to a large extent.

7.6 Issues & Challenges:

a) Wide variations in productivity in Agriculture and allied sector per-sist across various districts of Tripura. To increase productivity and im-prove farmers’ income in the state, progress is required along three di-mensions: (i) Quality and judicious use of inputs such as water, seeds, fer-tilizer and pesticides; (ii) judicious and safe exploitation of modern tech-nology (iii) shift into high value commodities such as fruits, vegetables, flowers, fisheries, animal husbandry and poultry. In the longer run, pro-ductivity enhancement requires research toward discovery of robust seed varieties and other inputs, appropriate crops and input usage for a given soil type and effective extension practices.

b) Farmers need to be ensured access to remunerative prices. This is-sue has two aspects, one relating to the Minimum Support Price (MSP) and the other relating to the farmer’s share in the price paid by the final consumer. Poor state of cold storage facilities makes matters worse by discouraging farmers from opting for high value crops with perishable nature in the first place. Agricultural marketing has not seen any signifi-cant reforms and modernization for decades. The supply chain remains fragmented, scale of operations is low and there is excessive presence of intermediaries. A small increase in production above normal level often results in price crash for farmers and a below normal production is fol-lowed by skyrocketing prices in the post-harvest period with hardly any benefit for the farmers.

c) The second factor is price received by the farmers concerned is only a small fraction of the price paid by the final consumer in the mar-ketplace. The APMC market yards are subject to vast technical as well as marketing inefficiencies that undermine the prices that farmers receive. Only a genuine implementation of the model APMC Act, which introduces all-round marketing reform, can ensure that the farmer gets his/ her fair share of the price paid by the final consumer (Gulati and Ganguly 2010). Additionally, some of the restrictive features of the Essential Commodity Act, which create an environment of uncertainty and discourage the en-try of larger players into agricultural-marketing infrastructure.

d) Benefits intended for the tenant farmer such as disaster relief or di-rect benefit transfers risk being disbursed to the owner of the land who


appears as the cultivator in the official records. In the absence of official records, tenants also lack access to formal credit and other benefits available to cultivators as per land records. Hence, in the absence of ownership titles and the prospects of land disputes, banks hesitate to ac-cept land as collateral.

e) Often, farmers are vulnerable to natural calamities such as droughts, floods, cyclones, storms, landslides, hails and earthquakes. Be-cause the poorest farmers are unable to access the formal banking sys-tem in the first place, they are rarely covered by the insurance. There is a need to revamp this situation by providing special attention to marginal and small farmers in case of natural calamities so that they do not suffer any income loss.

f) Tripura state is endowed with rich natural resources, fertile land and abundant water resources. Yet, the state is lagging behind many states in terms productivity of various crops. Thus, comprehensive strate-gies need to be followed to improve productivity of various crops.

7.7 Strategies for the state: The detailed strategies to boost farmers’ income in Tripura are summarized below:

(i)Per Drop More Crop: Effective Water Management

Water is a critical input into agriculture in nearly all its aspects. How much, at what time and how plants are watered has determining effect on the eventual yield. Adequate availability of water is important for animal husbandry as well. Fisheries are, of course, directly dependent on water resources.

(ii) Diversification of Agriculture

The State Government may take active steps to increase the area under pulses production together with oilseed production. The farmers may be encouraged for potato cultivation as it is covered as notified crop under PMFBY.

For potato cultivation more remunerative value chain development approach should be propagated. The intention of value chain development is to ensure that the farmers get higher share of price by removing the market intermediaries. The Value Chain Management on Potato crop can also be introduced in Tripura with higher production. Similarly, value chain management can be considered for turmeric and pineapple also.

The farmers may reduce their focus on paddy cultivation also as the crop needs large doses of irrigation, pesticides and insecticides as inputs which have a very debilitating effect on the environment and leads to soil degradation. The farmers may need to be sensitized not to leave pulse


production to paddy production in the mid way leaving pulse as orphan crop.

(iii) Addressing issues for climate resilient agriculture

The impact of climate change is palpable in Tripura and can be very well observed in all the districts. The approach like Tribal Development Programme (WADI), Watershed Development Programme, UPNRM, Climate Resilient Agriculture Technologies like Zero tillage, Conservation agriculture, Water budgeting & crop planning, Roof Top rain water harvesting, SRI, Integrated Farming System, piggery etc. will be promoted to address the climate change issues in the state and the resilience of rural community will be enhanced against climate change.

(iv) Increasing GLC for Agriculture with special focus in term lending

Considering that the cost of cultivation has gone up and the revised guidelines of KCC warrants inclusion of consumption loan and amount spent towards repairs and maintenance to be embedded in the KCC limit, the average loan per KCC is woefully low, which needs to be stepped up. Agriculture Department has suitably revised the scale of finance for the year 2017-18. In order to increase the production and productivity, it is imperative that more capital formation needs to be taken place in agriculture, for which there is a need to boost credit flow for agriculture term loan activities. NABARD has prepared Banking Plans and model schemes on dairy, sheep, poultry, goat and piggery, seed production, fisheries and machan based vegetable cultivation, Farm Mechanisation, etc. Further, the po-tential worked out in the PLP under agriculture and allied activities gives an idea of the desired directional flow of credit to identified sectors/areas for financing / business by banks. Unit cost is also revised by NABARD for the year 2017-18.

(v) Capacity building of farmers and rural youth and women

JLGs, SHGs, Farmers’ Clubs and POs are very effective ways for addressing the capacity building needs of farmers, rural youth and women. The Farmers’ Clubs provide training on farm related activities like animal husbandry, fisheries, plantiation and horticulture, vermicompost, azolla cultivation, SRI etc. through KVKs, ICAR and NGOs.

(vi) Improving farmers’ income from off- farm business

Adoption of cluster based approach and at the community level, the farmers and artisans need to be organized into JLGs, SHGs, Artisan Groups, Producers’ Organisations, Federations etc.


Diversification of products, improvement of traditional designs, introduction of new designs and linking the production to contemporary market need/ demand would enhance the income realized by farmers’ household members. Design facilitation and development centres also need to be set up to provide inputs on the same.

Common Facilities Centres need to be established, activity cluster-wise for fabric dyeing processing, finishing and quality control for farmers who derive part of their income from non-farm.

Strengthening of value chain from raw materials to retailing. Developing a symbiotic relationship of private marketers/ exporters with groups of informed artisans / weavers.

Increasing the coverage of institutional credit of these artisans/ weavers through Credit Cards/ PMMY/ others.

7.7 Doubling Farmers’ income by 2022 – Steps Suggested

After detail consultation with Farmers, NGOs, Line Departments, PRIs, Farmers’ Clubs and Farmers Producers Organisations, Bankers during BLBC Meetings in the districts throughout the year, a list of activities/initiatives have been enclosed which are to be undertaken by various line departments, KVKs for doubling of farmers income by 2022. The process of issuance of Soil Health Card may be accelerated and popularized among the farmers.

Agriculture Department

Popularization of improved varieties of different crops through Demo Centre

Introduction of remunerative crops Introduction of extensive Farm Mechanization through various

subsidy schemes Soil Health management by establishing sufficient number of Soil

Testing Labs Upgradation of Agricultural Training Centre Arrangement for procurement of paddy at least at par with

Minimum Support Price (MSP) Storage of fertliser in the Govt. channel Number and quality of storage facilities may be increased for

inputs and farm produce Support from MGNREGA for different Agricultural operation

during peak season so that scarcity of agricultural labourers could be minimized

Present cold storage charge per quintal is `190.00. In this regard, the quantum of subsidy to cultivators may be considered for


enhancement from `30.00 to `60.00 as they feel their own contribution of `160.00 is quite high

Delay in selection of beneficiaries and sites by the PRI bodies in case of Govt. programmes.

Horticulture Department

Introduction of Small Mushroom Production Unit in each Block with at least one spawn production unit in the district

Up-Gradation of Small Scale Nursery Shade Net Structure for quality Betel-vine Production

Distribution of Plant Protection Equipment(Foot Sprayer) for orchard

Cultivation of Shade Loving Spices as Intercrop in Areca Plantation, Homestead Cultivation of Coconut for Small & Marginal Farmers

Propagation of Mixed farming of Fruit Bearing Plants Encourage Production of Quality Elephant Foot Yam with Organic

Manures Arrange for Cultivation of Early & High Value Vegetables

Agriculture Marketing Department

Awareness camp on Scientific storing of Potato in Cold Storage Workshop on Scientific Training for Cold Storage Proprietors,

Technicians and Operators Training on better packaging &Post harvest technology Training on Processing and Preservation of Fruits and Vegetables Demonstration programme/camp on Processing and Preservation of

fruits and vegetables

Krishi Vigyan Kendra

Development of ‘organic & sustainable package of practices’ for individual crops of North Tripura district, affordable to resource poor farmers to ensure increase in crop productivity along with qualitative enhancement through optimum utilization of resources

Women empowerment through small scale goatery Establishment of village based seed enterprises in SC and ST

dominated areas for improvement of their livelihood Scaling up and dissemination of appropriate technologies for off-

season (winter season) watermelon cultivation in the Manu riverbed

Development of need based agroforestry models for improving private, community and institutional land in North Tripura

Up scaling family farming through enhancement and integration of land-water-animal and tree based livelihood approaches

Fishery Development Programme by conducting training, demonstration etc.


Climate resilient/ mitigating agriculture technologies - dissemination

Eco-friendly disease and pest management Vocational commercial agriculture technologies

If the above practices are put in place and timely credit is made available to the farmers coupled with marketing facilities, the income of the farmer community will surely be doubled by end of 2022. It is the time the farmers should be ushered with Rainbow Revolution.


CHAPTER 8

Skill India Scheme8.1 Introduction

Noting that India will have a surplus manpower of 4 to 5 crore over the next decade, the Prime Minister emphasized the need to provide this youthful manpower with skills and ability to tackle global challenges and accordingly launched the "National Skill Development Mission" on 15 July 2015 with an aim to train over 40 crore people in India in different skills by 2022. It includes various initiatives of the government like "National Skill Development Mission", "National Policy for Skill Development and Entrepreneurship, 2015", "Pradhan Mantri Kaushalya Vikas Yojana (PMKVY)" and setting up Sector Skill Councils under public-private arrangement. Sector Skill Councils are set up as autonomous industry-led bodies by NSDC. They create Occupational Standards and Qualification bodies, develop competency framework, conduct Train the Trainer Programs, conduct skill gap studies and Assess and Certify trainees on the curriculum aligned to National Occupational Standards developed by them. Till date, the NSDC Board has approved proposals for 38 Sector Skill Councils of which agriculture is one of them.

The population of Tripura was 36,73,917 (2011 Census) with 73.83% of rural population The state had an average decadal growth rate of 14.84% and at this growth rate, an estimated 2.49 million workforce, in the age group of 15 - 59, would be added during the decade 2012-2022. The average schools drop-out rate in the state stood at 49.60% in the category Class I to X during the year 2011-12 and it points towards a low school level inclusiveness. The vocational training infrastructure in the state comprises of Polytechnics, ITIs/ VTPs, Vocational Education and Training Centres, Craft Training Institutes, Other Vocational Training Providers etc. and has an annual intake capacity of about 35,000 trainees. While the state agriculture sector is the main employer, dependency on livestock farming and fishery may be encouraged alongwith manufacturing, trade, repair and servicing.

The State economy is predominantly dependant on primary sector activities.

8.2 Agriculture Sector Skill

Agriculture and allied activities accounts for about 16% of country's GDP. Over 58 per cent of the rural households depend on agriculture as their principal means of livelihood. Agriculture, along with fisheries and forestry, is one of the largest contributors to the Gross Domestic Product (GDP). Besides this, agri industry employs a large number of people.


The demand for agriculture produce and food products is continuously on the rise with increase in population which is presently not matched by the production and supply as the growth in agriculture sector is stagnant at 3%. There is a clear need to increase the productivity given that the available arable land is constant at 161 million hectares. As the low productivity in India is predominantly due to improper farm management practices and loss in post-harvest handling, there is a requirement for specific set of skills in the field of Agriculture.

Considering the above factors, Agriculture Skill Council of India (ASCI) was set up in January 2013 as a Section 25 company under Companies Act of Ministry of Company Affairs. The endeavour of ASCI is to work towards building capacity in the Agriculture Industry and bridge the gap between laboratories and farms. ASCI envisions to touch/ upgrade skills of Cultivators, Agricultural Labours and Direct and Indirect labour engaged in Organised and Unorganized Agriculture and Allied industry.

ASCI also implements Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a unique initiative by the Government of India that aims to offer 24 lakh Indian youth a meaningful and industry relevant skill based training. Under this scheme, the trainees will be offered a financial reward and a government certification on successful completion of training and assessment, which will help them in securing a job for a better future.

8.3 Potential in the State

In view of all the above, this is a good opportunity to identify the areas affected by labour shortage and lack of skill in agriculture sector in the district and to put skilled workforce in place. The possibilities in the state are:1. Rural youths are needed to be imparted quality training from KVKs, RUDSETI, ICAR, College of Agriculture and T-SAMETI.2. The areas which are suffering shortage of labour and lack of skill are as under:

Skilled labour for operating modern farm equipments and machines Skilled labour for maintenance of farm equipments/ machines Lack of knowledge of Integrated Pest Management Lack of knowledge of Marketing arrangements of the State

8.4 Skill India relating to Non agriculture aspect

Skill development is critical for achieving faster, sustainable and inclusive growth on the one hand and for providing decent employment opportunities to the growing young population on the other. The demographic window of opportunity available to India would make India the skill capital of world. India would be in a position to meet the requirement of technically trained manpower not only for its growing economy but also for the advanced economies of the world.


Boston Consultancy Group’s study in 2007 had clearly indicated that by 2020 while India will have surplus of 56 million working people, the rest of the world will encounter a shortage of 47 million working people. However, skilling this large and growing young population from an exceedingly small base would be a big challenge for India.

The realization of full potential of the demographic dividend depends on generation of adequate decent non-farm employment opportunities and up gradation of skills of existing as well as new entrants to the workforce.

The cornerstone of the manufacturing policy for the 12th Plan was to create 10 million additional jobs in the manufacturing sector by focusing on labour-intensive manufacturing and by suitable amendments to the labour regulatory framework, so that manufacturing becomes a genuine engine of employment growth in the country. Focus on more productive and quality (organised and self-employed) employment in the manufacturing and services sector, would create additional 50 million job opportunities in the non-farm/off-farm sector. But this will need a huge effort in the form of skill development aligned to the market needs. In particular, manufacturing, construction, trade, transport, hospitality and other services are the sectors where skill development can lead to a faster growth in employment opportunities.

It is in this context that the National Skill Development Mission officially launched by the Hon’ble Prime Minister on 15 July 2015 on the occasion of World Youth Skills Day. The Mission has been developed to create convergence across sectors and States in terms of skill training activities. Further, to achieve the vision of ‘Skilled India’, the National Skill Development Mission would not only consolidate and coordinate skilling efforts, but also expedite decision making across sectors to achieve skilling at scale with speed and standards. It will be implemented through a streamlined institutional mechanism driven by Ministry of Skill Development and Entrepreneurship (MSDE).

Key institutional mechanisms for achieving the objectives of the Mission have been divided into three tiers, which will consist of a Governing Council for policy guidance at apex level, a Steering Committee and a Mission Directorate (along with an Executive Committee) as the execu-tive arm of the Mission. Mission Directorate will be supported by three other institutions: National Skill Development Agency (NSDA), National Skill Development Corporation (NSDC), and Directorate General of Train-ing (DGT) - all of which will have horizontal linkages with Mission Direc-torate to facilitate smooth functioning of the national institutional mecha-nism.

Seven sub-missions have been proposed initially to act as building blocks for achieving overall objectives of the Mission. They are, viz (i) Institu-tional Training, (ii) Infrastructure, (iii) Convergence, (iv) Trainers, (v)


Overseas Employment, (vi) Sustainable Livelihoods & (vii) Leveraging Public Infrastructure.

The primary objective of the National Policy of GoI on Skill Development and Entrepreneurship 2015 is to meet the challenge of skilling at scale with speed, standard (quality) and sustainability. The policy links skill de-velopment to improved employability and productivity in paving the way forward for inclusive growth in the country. The skill strategy is comple-mented by special efforts to promote entrepreneurship in order to create ample opportunities for the skilled workforce. The mission of the policy is to:

Create a demand for skilling across the country Correct and align skilling with required competencies Connect the supply of skilled human resources with sectoral de-

mands Certify and assess in alignment with global and national standards

and Catalyse an ecosystem wherein productive and innovative en-

trepreneurship germinates, sustains and grows to creation of a more dynamic entrepreneurial economy and more formal wage em-ployment.

8.5 State Level

Tripura Skill Development Mission (TSDM) was constituted under the Chairmanship of Hon’ble Chief Minister in September 2010 to provide a coordinated approach to skill development in the State. The Mission was reconstituted vide notification dated 22 July 2015 headed by the Hon’ble Chief Minister of Tripura to lay down the broad policy objectives, strategies and governance models to promote skill development.

To cater to the needs of the local, national, and international job market

To encourage entrepreneurship and self-employment among stu-dents

To develop state-of-the-art training ecosystem with world-class in-frastructure

To fully align the skill training with the needs of the industry To provide for up-skilling of trainers and Government officials in

the State To increase participation of women and people from marginalized

communities in workforce.

To enhance the productivity of youth and make them employable, the State Govt. has targeted to generate 1 lakh employment under the skill development training programme and to this effect, a new directorate of


skill development under the state Industry & Commerce Department has been created.

One of the major issues in skill development is mismatch between the demand and supply of skills. The problem has arisen due to supply driven skill delivery system. Presently the labour market is facing a strange situation, where on the one hand, an employer does not get manpower with requisite skills and on the other, millions of job seekers do not get employment. Such a mismatch compromises potential economic development. This requires establishing a mechanism for providing access to information on skill inventory and skill map on real time basis.

The SWOT analysis of Tripura on economic and social aspects is given below:


CHAPTER 9

Climate Change9.1 Climate Change Threat Reality or Perception:

Developing countries like India are faced with the challenge of sustaining its rapid growth in the face of global threats of climate change. This threat emanates from accumulated Green House Gases (GHGs) emission in the atmosphere generated through industrial growth and high consumption life styles of developed nations. Green House Gases allow solar radiation from the Sun to travel through the atmosphere, but prevent from being reflected back in the space which causes earth’s temperature to rise.

Burning of fossil fuel is major source of industrial greenhouse gases emissions especially for power, cement, steel, fertilizer or many other industries which rely on fossil fuels such as coal, electricity derived from coal, natural gas and oil. The major green house gases emitted by these industries are CO2, methane, nitrous oxide, Hydro Fluoro Carbons (HFCs) all of which increases earth’s ability to trap infra red energy and thus affect the climate.

The 5th Assessment Report of IPCC has reiterated that the threat of climate change is real and its impact is being felt across the world.

IPCC has warned that if the Global community continues to emit GHG at current rates, the average global temperature can rise by 2.6 to 4.8% Celsius by the year 2100.

Mitigation actions are required to limit the atmospheric concentration of green house gases.

The IPCC Report has comprehensively projected climate risks for the oceans. Ocean warming has caused shifts in species distribution, decline in body size, alteration of ocean productivity and fisheries catch potential especially at lower latitudes.

IPCC has concluded that marginalized segment of the society are highly vulnerable to climate change impacts.

Climate change effects pose an increasing threat to equitable and sustainable development.

Climate change effects have been projected to slow economic growth, make poverty reduction more difficult, further erode food security and prolong existing as well as create new poverty traps, particularly in urban areas and emerging hotspots of hunger.

India’s Initial National Communication (NATCOM) and UNFCC has observed through studies that

• At the national level, increase of 0.4 degrees Celsius has been observed in the surface temperature over the past century.


• A trend of increasing monsoon seasonal rainfall has been found along the West coast, Northern AP and North West India,

• A decreasing monsoon seasonal rainfall has been observed over East MP, North East India and some parts of Gujarat and Kerala.

• Due to increase in one degree temperature, paddy productivity will reduce by 4-20%, wheat 5-20%, and maize 32-50% in India

• Climate change affects livestock sector through increased heat stress, decreased fodder and water availability thereby affecting health of animals and milk productivity.

• Trends have been observed in multi decadal periods of more frequent droughts followed by less severe droughts.

• Data on Coastal tide gauges in the Indian Ocean for more than 40 years reveal that sea level has risen between 1.06 to 1.76 mm per year. These rates are consistent with 1-2 mm ruse in yearly global sea level estimate of IPCC.

• Monitoring data on Himalayan Glaciers indicate that while recession of some glaciers had occurred in some Himalayan region in recent years, the trend is, however, not consistent across the mountain chain.

9.2 Adaptation and Mitigation

Adaptation• Adaptation in the context of Climate Change indicates a set of

responses to the actual and potential impacts of climate change • to moderate the harm or • take advantage of the opportunities that climate change may

bring, • Relocating the communities living close to the sea shore to cope

with the rising sea level• Switching over to cultivation of those crops which can withstand

high temperature and less rainfall.• Adaptation has five principles

• Build adaptive management and social and institutional learning into adaptation processes.

• Build resilience with low cost and higher coverage• Combine soft options with technological interventions and

infrastructural approaches• Attend to cultural, ethical and rights issues in adaptation by

the involvement of all• To support autonomous adaptation.

Major adaptation strategies adopted• National Mission on Sustainable Agriculture (NMSA) launched for

enhancing food security and protection of resources such as land, water, bio-diversity and genetics.

• National Water Mission launched for conservation of water, minimizing wastage and ensuring equitable distribution

• Soil Health card scheme


• Paramparagat Krishi Vikas Yojana launched to promote organic farming practices

• Pradhan Mantri Krishi Sinchayi Yijana launched to promote efficient irrigation

• Neeranchal is a new programme to give a boost to additional impetus to watershed development

• Namami Gange launched to rejuvenate as National Mission for Clean ganga.

Mitigation• Measures to reduce emission of GHGs that cause climate change

by measures such as • switching over to renewable sources of energy such as solar

or wind or nuclear instead of burning of fossil fuel in thermal power stations.

• Measures to reduce energy consumption e.g. Bureau of Energy Efficiency certification (star ratings), use of CFL lamps instead of incandescent lamps

• Protecting/increasing tree cover in forest and other areas• Carbon trading• Educating the people about need for educing environmental

pollution, especially GHG emission.• Major Mitigation strategies adopted

• Clean energy generation upto 175 GW by 2022• National Solar Mission launched to install 100 GW of

solar power by 2022• National Smart Grid Mission launched for efficient

transmission and distribution network• 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

• Swachh Bharat Mission to make the country clean and litter free by 2019

• Green Highways (Plantation and Maintenance) Policy to develop 1.00 lakh km long “tree line” along both sides of National Highways

• Afforestation of 5 mha of area under Green India Mission

9.3 What is Carbon Credit• Carbon Credits are key components of national and

international attempts to mitigate growth in the concentration of GHGs.

• One Carbon Credit is equal to one tonne of carbon di-oxide.


• Carbon credits create a market for reducing GHG emissions by giving a monetary value to the cost of polluting air.

• Emission become an integral cost of doing business and are visible on the balance sheet alongside raw materials and other liabilities or assets.

• For example, consider a business that owns a factory putting out 100,000 tonnes of GHG emissions in a year. Its Government enacts a law to limit the emissions that a business can produce and the factory is given a quota of 80,000 tonnes a year.

• The factory has got two options – either it can reduce its GHG emissions to 80,000 tonnes or is required to purchase carbon credit to offset the excess in the open market from organizations that have been approved as being able to sell legitimate carbon credits.

9.4 Green Finance and CDM• Clean Development Mechanism (CDM) means reducing

GHGs through eco friendly technologies and obtaining Carbon Emission Reductions (CERs) that can be traded.

• Any CDM or clean project that promotes conservation of natural resources, reduction in CO2 emissions or absorption of CO2 from environment is a Green Project and financing such projects is Green Finance.

• India accepted the Kyoto Protocol in 2002 and has been implementing green projects. About one third of the projects approved by CDM Executive Board are from India.

• As Climate change has a cause and effect relationship, it has been recognised that activities like forestry, agriculture and other land based activities like dairy, soil conservation, energy use practices, use of renewable energy sources have tremendous potential for reducing GHGs emission.

9.5 KYOTO Protocol• UNFCCC is an international environmental Treaty

aimed at achieving stabilization of GHGs concentration in the atmosphere at a level that would prevent dangerous interference with the climate system.

• Protocol was initially adopted on 11.12.1997 and entered into force on 16.2.2005.

• As of November 2009, 187 states have signed and ratified the protocol.

• Under the protocol, 37 industrialised nations (annex I countries) commit themselves to reduce GHG gases


emissions (CO2, Methane, Nitrous oxide and Sulphur hex fluoride) and 2 gases HFCs and per Fluor carbons.

• Benchmark 1990 levels were accepted by the Conference of Parties (COP) of the UNFCCC

9.6 Climate Smart Agriculture (CSA)

Agriculture is crucial for food, nutrition and livelihood security in India as it engages almost two-third of its workforce and accounts for 25.2% in GVA (Gross Value Added).

Several industries depend on agriculture for its raw material. Die to close linkage with other economic sectors, growth in

agriculture sector has a multiplier effect on the economy. For making agriculture sustainable and climate resilient,

appropriate adaptation and mitigation strategies are needed. Climate Smart Agriculture (CSA) is defined as an integrated

approach for transforming and reorienting agriculture development under the new realities of climate change.

FAO defines CSA as “agriculture that sustainably increases productivity, enhances resilience (adaptation), reduces GHGs (mitigation) wherever possible and enhances achievement of national food security and development goals.”

In this definition, the principal goals of CSA are defined as food security and development while productivity, adaptation and mitigation are identified interlinked pillars necessary for achieving this goal.

The global population has increased from 1 billion in 1800 to 7.5 billion in 2012 and likely to touch 9.6 billion by 2050.

Due to increase in population, food requirement will increase by 60% by 2050.

Agricultural growth must keep pace with growing population and provide basis for economic growth and poverty reduction.

In order to achieve food security and sustainable agricultural development goals, adaptation to climate change and lower emission intensities per output is required. The transformation just be accompanies without depletion of natural resource basis.

Building block of CSA implementationo Assessing the situationo Identifying barriers and enabling factorso Managing climate risko Defining coherent policies

o Guiding investments A few CSA projects sanctioned during 2016-17 as under:

o Sustainable Livelihoods of Agriculture dependent Rural Communities in Drought prone district of Himachal Pradesh through Climate Smart Solutions


o Promotion of Integrated Farming System of Kalpad in Coastal Wetlands in North Kerala

o Climate Resilient Sustainable Agriculture in Rainfed Farming (Kandi) Areas of Jammu and Kashmir.

o Scaling up Climate Resilient Agriculture Practices towards Climate Smart Villages in Haryana.

9.7 National Action Plan on Climate Change (NAPCC)

Recognising that climate change is a global challenge, India will engage actively in multilateral negotiations in the UN Framework Convention on Climate Change, in a positive, constructive and forward-looking manner. In view of the requirement of a strategy to adapt to climate change that would ensure and enhance ecological sustainability and explore solutions towards more efficient technologies, the National Action Plan on Climate Change (NAPCC) was formulated and launched in June 2008. India’s NAPCC is being led through 8 missions:

• Solar Mission – Ministry of New & Renewable Energy• Enhanced Energy Efficiency – Ministry of Power• Sustainable Habitat – Ministry of Urban Development• Water Mission – Ministry of Water Resources• Sustaining the Himalayan Ecosystem – Ministry of S & T• Green India – Ministry of environment & Forests• Sustainable Agriculture – Ministry of Agriculture• Strategic Knowledge for Climate Change – Ministry of S & T

9.8 Funding Mechanism for Climate Change Measures

(a) Adaptation Fund under UNFCC(AF)

NABARD as India’s national Implementing Entity (NIE) for Adaptation Fund created under UNFCCC has generated certain feasible adaptation projects.

So far 6 projects in six states amounting to US $ 9.86 million were sanctioned from AF.

Conservation and management of coastal resources as a Potential Adaptation Strategy for sea level rise.

Enhancing Adaptive capacity and Increasing Resilience of Small and marginal Farmers in Purulia and Bankura districts of WB

Climate proofing of Watershed development Projects in Rajasthan and Tamil Nadu.

Climate Smart actions and Strategies in North Western Himalayan Region for Sustainable livelihood of Agriculture Dependent Hill communities.

(b) Green Climate Fund (GCF)

Green Climate Fund, set up in 2010, is a Fund within the framework of UNFCCC to assist developing countries in funding


projects with adaptation and mitigation practices to counter climate change.

NABARD accredited as NIE during 10th GCF Board meeting. The Empowered Committee of MOEFCC, GOI approved three

Concept Notes submitted by NABARD for development of DPRs and submission to GCF.

GCF is an operating entity of the Financial Mechanism of the UNFCCC set up vide decision taken at COP 16 at Cancun.

Objective: provide support to developing countries in combating climate change with funding by developed countries and other public & private sources.

The fund is allocated in a ratio of 50:50 for mitigation and adaptation activities respectively.

As on date, a total of USD 10.2 billion has been pledged to the Fund. However USD 179.3 million (1.9% of total amount pledged) has actually been signed till date.

NABARD signed the Accreditation Master Agreement (AMA) with GCF on 27 July 2017

NABARD accredited as the first entity for sourcing financial resources from GCF for India.

GCF resources can be accessed by Accredited entities like NABARD for their countries.

Signing of AMA will be followed by signing of Funded Activity Agreement (FAA) for already approved project of Odisha State on “Ground Water Recharge and Solar Micro Irrigation to ensure food security and enhance resilience in vulnerable tribal areas of Odisha.

Access to Fund resources to undertake climate change projects/programmes will be through accredited national, regional and international implementing entities (IEs) and intermediaries

Entities seeking accreditation to the Fund in order to access its resources will be assessed against the Fund’s fiduciary principles and standards and environmental and social safeguards (ESS)

All entities , including public and private, can apply for accreditation via the:

– Direct access track (for regional, national and sub-national entities): Entities are required to be nominated by their country’s NDA or focal point . Entities may be eligible to receive readiness and preparatory support on accreditation.

– International access track (for international entities, including United Nations agencies, multilateral development banks, international financial institutions and regional institutions)

GCF Project Focus Areaso Adaptation through agro-forestry systems with mitigation co-

benefitso Climate resilience of Rainfed Farming Systemso Climate change resilience building for Tribal Livelihoods

http://www.gcfund.org/readiness/designations.html

http://www.gcfund.org/readiness/designations.html


o Strengthening of crop weather advisory systemso Building resilience of urban sector – habitat, energy,

livelihoods and transporto Renewable energy and resource efficiency improvement

(c) National Adaptation Fund for Climate Change (NAFCC)

GOI established the National Adaptation Fund for Climate Change (NAFCC) to support projects to combat the effects of climate change in sectors lien agriculture, water, forestry.

NABARD has been designated as NIE by MOEFCC. NABARD facilitates identification of projects ideas/concept notes

from SAPCC, project formulation, appraisal, sanction, disbursement. Monitoring & evaluation and capacity building of stakeholders including State Governments.

Projects are sanctioned by NSCCC (National Steering Committee on Climate Change constituted by MOEFCC.

So far, 21 projects with a total assistance of Rs.442.88 crore were sanctioned by NSCCC under NAFCC.

A few are :o Integrated Mangrove Fish farming Systems for coastal areas

against sea level riseo Enhancing Adaptive capacity and Increasing Resilience of

SF/MFo Building Adaptive Capacity of Small Inland Fishers for

Climate resilience and Livelihood securityo Climate Proofing of watershed development Projectso Climate smart Actions and Strategies in North West

Himalayan Region for sustainable livelihood of Agriculture dependent Hill communities.

Operational Modalities of NAFCC

State Governments/Executing Entities to prepare Concept Notes in consultation with the NIE (NABARD) and submit with the endorsement of State Steering Committee on Climate Change to MoEF&CC

Technical Scrutiny Committee (TSC) at the MoEF&CC State Government Department (EE)/ NABARD, will prepare

Detailed Project Report (DPR) of Adaptation Projects, and submit before State Level Steering Committee (SLSC).

Projects with recommendation of SLSC will be forwarded by NABARD to MoEF&CC.

The National Steering Committee on Climate Change (NSCCC) chaired by Secretary (E,F&CC) will consider the project for approval and sanctioning of the funds for implementation of the project.

The SLSC will have to be set up under the chairmanship of Chief Secretary and representatives of the relevant stakeholder


department and NABARD. Provision for inviting subject specialist from Civil Society, NGO, and scientific/ technical institution depending of the requirement. Nodal officers for Climate Change Action Programme could be the convener.

9.9 NABARD as National Implementing Entity (NIE) for Adaptation Fund (AF) and Green Climate Fund (GCF) and National Adaptation Fund for Climate Change (NAFCC)

NABARD has been accredited as the National Implementing Entity (NIE) for India for Adaptation Fund (AF) and Green Climate Fund (GCF) constituted under United Nations Framework Convention on Climate Change (UNFCCC) and National Adaptation Fund for Climate Change (NAFCC) constituted under Ministry of Environment, Forest and Climate Change (MoEFCC), GoI. Adaptation Fund and National Adaptation Fund for Climate Change (NAFCC) focusses on adaptation to climate change and Green Climate Fund focusses on both adaptation and mitigation.

These funds were setup to assist developing country parties that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation and mitigation. The NIEs will bear full responsibility for the overall management of the projects and programmes financed by the Adaptation Fund and Green Climate Fund and will bear all financial, monitoring, and reporting responsibilities.

NABARD Promotes Climate Change adaptation, mitigation and coping through

i. Awareness Creation - National Level interface and Regional Level Meetings and Capacity Building of Stakeholders

ii. Promotion of Sustainable Agriculture practicesiii. Watershed Development an Climate proofingiv. Orchard based livelihood for indigenous peoplev. System of Rice Intensification (SRI)vi. Zero tillage/ Conservation Agriculturevii. Organic farmingviii. Integrated Farming System (IFS)ix. Promotion of Solar based and Renewable energyx. Supporting various initiatives enabling rural people to adapt

climate resilient and climate sensitive technologies and practices

9.10 Climate Change – Interventions in agriculture/rural livelihood context

• Adaptation: Developing ways to protect people and places by re-ducing their vulnerability to climate impacts through alternate live-


lihoods. The adaptive measures minimize the impact of climate change on the livelihoods of people.

• Mitigation: Interventions to slow the process of global climate change, usually by lowering the level of greenhouse gases in the at-mosphere,eg Afforestation which facilitate to absorb CO2 from the air, solar pump sets.

• Climate Proofing: Similar to adaptation but in climate proofing we are protecting investments/ developments with add on activities, eg design of bunds and trenches for withstanding for the expected runoff resulting from intense storms change/ increase the height of check dam (already planned) to cope with flash floods, (frequency & intensity of the same has increased due to climate change), redu-cing the height of waste weirs of minor irrigation tanks to avoid overtopping/breaching of earthen dam.

9.10 State Action Plan on Climate Change: Tripura

The Expert Committee constituted by Tripura State Planning Board on climate change suggested functioning through four Sub Committees, viz Sub Committee-1: Solar Mission, Energy Efficiency and Sustainable Habitat; Sub Committee-2: Water MissionSub Committee-3: Himalayan Eco System, Green Tripura and Sustainable AgricultureSub Committee-4: Strategic Knowledge for Climate Change

The State Action Plan on Climate Change seeks the support of Government of India. Sector-wise budget is given below:Sr. No.

Sectors Key Priorities Total Budget

(Cr.)Adaptatio

nMitigatio

nAdaptation

& Mitigation

Total Activitie

s1 Mission on Energy

Efficiency 5 5 - 10 828.35

2 Solar Mission & Non-conventional Energy 3 3 - 6 1085.1

13 Sustainable Habitat

Mission 4 3 - 7 1196.50

4 Mission on Water 21 - - 21 8005.93

5 Sustainable Himalayan Mission 16 - - 16 94.70

6 Green Tripura Mission 10 7 - 17 591.70

7 Sustainable Agriculture Mission 26 - 1 27 795.80

8 Strategic Knowledge Mission 8 3 - 11 31.00

9 Mission on Health 4 - - 4 30.48

Total 97 21 1 119 12659.57

9.11 Vulnerability Assessment & Areas of Concern


Although the State of Tripura is a Carbon Negative State as also North Tripura district, the State/ district will harvest long term benefit significantly if the State Action Plan on Climate Change is executed in an appropriate manner. The issues of vulnerability of the district as well as the state to climate change are intimately related to its location and indigenous population. The people of the district have been living primarily depending on forest and other natural resources for their livelihoods for many years compared to the urbanized places. A significant number of persons and families in the district continue to depend on forest and jhum cultivation as their main source of livelihood.

However, vulnerabilities arising out of climate change are multidimensional in nature. One sector can compound the vulnerability to the other, e.g. jhum cultivation can affect forestry. The spatial data shows that Tripura has low to medium level of vulnerability in several pockets. Some parts of Panisagar and Kadamtala Blocks are low lying areas and typically flood prone. The large variation in last three years rainfall data in the district indicates possible impact on the main crop, viz paddy and potato in the district. It is likely that gradual change phenomenon like temperature rise and erratic behavior of rainfall etc. might lead to water demand and drought. Therefore, they potentially affect the cultivators, agricultural labourers directly and as also retail trade based on agri-produce and last but not the least, the consumers. The sector-wise vulnerability in Tripura as derived from the SAPCC is indicated below:

Sectors Vulnerability Socio-Economic RisksAgriculture & Food Security

Temperature stress High salinity and water logging Erratic precipitation Loss of soil moisture & fertility Flood/drought conditions Invasion of parasitic species or

disease

Decline in crop yield and production Pre-harvest waste, soil nutrient loss,

less productivity Decline in availability of food and

increased incidence of malnutrition

Riverine & Fishing

Storm surges and flooding Cyclonic events Instability wetlands

Threat to inland freshwater re-sources

Threat to livelihood dependent on fisheries and aquaculture

Threat to wetland ecosystemForestry & Bio-Diversity

Maximum decline in open forests and moderately dense forests

Fragmentation of habitats Slow or no regeneration Species invasion

Loss of ecosystems services Loss of livelihood o people depen-

dent on forest resources Decline in ambient air and water

quality leading to health hazards Extinction of species Change in vegetation composition Soil erosion, top/fertile soil loss Floods and droughts

Health Availability of fresh water Availability of sanitation facilities Vector borne diseases (eg

Malaria) Water logging and higher inci-

dence of water borne diseases

Increased morbidity and mortality Increased burden of health care on

households in affected areas More pressure on plan based

medicines Over-exploitation of medicinal plant

resources


Water Resources

Reduced quality of available wa-ter resources

Higher run off and uneven stream flow

Decrease in ground water recharge and reduction in wet-lands

Flood and drought conditions

Stress on water storage Reduced supply of drinking water Increased morbidity Reduced availability of water for in-

dustrial and food production pur-poses

Decrease in water table

Source: State Action Plan on Climate Change, GoT

9.12 Mitigation strategies for the State

Although Tripura is a carbon negative state, it is likely that there would be rise in the level of GHG by 2030 considering the increasing trend in use of automobiles and home appliances. Due to dependency on jhum cultivation by the people of the district which leads to clearance of forest lands for cropping purposes is likely to reduce the carbon absorbing capacity of the ecosystem. Rapid development of roads and railways also resulted into cutting of matured trees to a great extent which is also supplemented by urbanization and creation of new habitats. Number of increasing vehicles, use of machineries etc. also would add on to the amount of release of GHG to the ecosystem. Green (CNG) vehicles need to be introduced in the district.

To minimize the level of emission of GHG/ reducing the GHG, afforestation have to attempted in areas where large deforestation has taken place due to developmental activities. Fallow land available in the district may be utilized for tree plantation. Agro-forestry needs to be promoted in the district.

New and renewable sources of energy utilization need to be encouraged in the district. To reduce the emission of GHG, the habitats of the district may be covered with solar energy/lighting system. Solar pumping systems may be introduced in the district to replace the old fossil fuel based pumpsets to curb CO2 emissions.

9.13 Adaptation strategies for the State

Although not an immediate threat, however, due to climate variations the livelihood of rural people will be adversely affected as depicted in many studies. Efforts or interventions to minimize the impact of climate change will be treated as adaptation measures. Following preventive and adaptive strategies are therefore suggested:

Use of micro irrigation in place of flood irrigation (as rise in tem-perature will lead to more evaporation and quantity of water is lim-ited so micro irrigation technique like DRIP sets and sprinkler would be more useful)


Construction of covered rain water harvesting structures for drink-ing water (animals and humans)

Construction of farm ponds for ground water recharge Weather advisory services Construction of ground water recharge structures Promotion of high performing indigenous breeds of animals who

are more resistant to diseases than the exotic ones Recycling and reuse of water used for washing or cooking Diversification of cropping pattern as per rising temperature so

that income of farmers is not adversely affected Construction of scientific animal housing as to protect from in-

clement weather and which would enable the animals to utilize their genetic ability and feed for optimal production

Promotion of integrated farming system.

9.14 Indo Himalayan Climate Adaptation Planning (IHCAP)

The Global Programme Climate Change of SDC in collaboration with DST, GOI initiated the Indian Himalayan Climate Change Adaptation Programme (IHCAP) in the Indian Himalayan region in 2012.

The IHCAP aims at building capacity and knowledge enhancement of all stakeholders related to

Scientific and technical knowledge cooperation between SDC and Indian Institutions

Capacities for adaptation measures for vulnerable communities, & Mainstreaming adaptation policies for improved action in the Hi-

malayan region. Tripura Climate Change Cell was constituted as part of the Na-

tional Mission for Sustaining Himalayan Eco System (NMSHE), one of the 8 major Missions under NAPCC

The primary stakeholder of the programme is State Climate Change Cells supported by NABCONS for facilitating the capacity building of the stakeholders.

Tripura Bio Diversity Board is the host institution for the pro-gramme.

Following capacity building programmes have been envisaged:o Modules for Legislators and Senior Bureaucrats (Level 1)o Modules for State Level Officials (Level 2)o Training District Level officials (Level 3)o Training of Trainers Programme (Level 4)o Inter State Exposure Visits (Level 5)

9.15 Tripura & Climate Change Initiatives


Tripura Climate Change Cell (TCCC) was constituted on 31 January 2014 under DST&E, Govt. of Tripura for implementation of climate change activities in the State.

An Inter Departmental Coordination Committee was also consti-tuted on 31 January 2014 in connection with implementation of State Action Plan on Climate Change.

SAPCC was prepared in consultation with Line Departments. Adaptation & Mitigation programmes were incorporated in the Ac-

tion Plan in all the Mission prioritised by GOI including Green Tripura Mission.

DST sanctioned financial assistance for strengthening of TCCC

Key areas of concern identified in SAPCC for Tripurao The State is situated in seismic zone V making the entire Re-

gion prone to earthquakeso The State is prone to High Wind and cyclone (Zone A)o The State faces recurrent floods during monsoon and flash

floods in hilly areaso The river beds are rising due to continuous siltationo The hilly region of the state is prone to landslides.o High risk of forest fires during summerso Practice of Jhum cultivation

9.16 Tripura NAFCC Concept Note

Government of Tripura has already constituted State Level Steering Committee (SLSC).

The Committee met three times and finalized a proposal/concept Note on “Strengthening of Anganwadi Centres” which provide mid day meals in Schools in the State.

The concept Note envisages provision of LPG Stove with cylinders and DTW with lifting device, storage tanks and purification mechanism to provide potable water for cooking as well as toilets in Schools.

Forwarded to NABARD alongwith recommendations of SLSC to be considered by the NSCCC of MOEFCC.


CHAPTER 10

Water Conservation-Per Crop Per Drop

The verbatim content of the address of The then Hon’ble President of India, Shri Pranab Mukherjee to the joint Session of the Parliament of 16th Lok Sabha is reproduced below:

“Each drop of water is precious. My government is committed to giving high priority to water security. It will complete the long pending irrigation projects on priority and launch the ‘Pradhan Mantri Krishi Sinchayee Yojana’ with the motto of ‘Har Khet Ko Pani’. There is a need for seriously considering all options including linking of rivers, where feasible; for ensuring optimal use ofour water resources to prevent the recurrence of flood and drought. By harnessing rain water through ‘Jal Sanchay’ and ‘Jal Sinchan’, we will nurture water conservation and ground water recharge. Micro irrigation will be popularized to ensure ‘Per drop-More crop’ ”

10.1 Introduction

Water is one of the most critical resources necessary for sustenance of life and central to all developmental activities. India, with 2.4% of the world's total geographical area and 18% of the world's population, has only 4% of the world’s total fresh water resources. With about 4000 billion cubic meter (bcm) of annual rainfall, the estimated utilizable water resources is only 1123 bcm (28%), mainly due to hydrological, topographic and other physical constraints. Of the available utilizable resource, 690 bcm is from surface water sources and the remaining 433 bcm is from replenishable groundwater sources. As against this, the cumulative water utilization by all sectors of the economy is 702 bcm (2010) of which, agriculture sector alone consumes around 78% of the total water utilization. This is despite the fact that more than 55% of agriculture in India is rainfed and depends on the vagaries of monsoon. However, due to its wide temporal and spatial variability coupled with inadequate storage infrastructure, there are floods in some parts while severe drought conditions in other parts of the country.

With rapid population growth, urbanization and improvement in the living standards, the water requirement for all sectors is increasing giving a challenge for fair allocation of water. The National per capita annual water resource during 2001 was 1816 cubic meter which fell to 1544 cubic meter in 2010 (CWC, 2015). As per International standard, a situation with less than 1000 cubic meter per capita is considered to be water scarcity situation. It is estimated that by 2050, the total water demand by all sub-sectors (1180 bcm) will surpass the total utilizable water resource of the country (CWC, 2015) and the share of irrigation will come down to 68%.This means that improving water use efficiency is


one of the key priorities of Indian Agriculture. Presently, the average efficiency in respect of surface water irrigation is 35-40% whereas the same is around 55% in the case of ground water irrigation.

10.2 Irrigation Potential

The ultimate irrigation potential of the country has been estimated to be 139.90 million hectare (64.05 m.ha from groundwater and 75.85 m.ha from surface water). Further, additional irrigation potential of 35 million ha could be created through implementation of Inter Basin Water Transfer proposals, taking cumulative potential to 175 mha. As against this, irrigation potential for 113.24 million hectare has been created up to end of XI Five Year Plan i.e. up to March 2012 of which, 89.94 m.ha has been utilized, leaving a gap of around 23.30 million ha which is yet to be utilized. Some of the reasons for increasing gap in irrigation potential created and potential utilized include incomplete coverage of command area works, poor maintenance of irrigation structures due to fund constraint, non-availability of adequate water at outlets resulting in lower supply at the tail ends, large scale deviations from designed cropping pattern to water intensive crops, deteriorating conveyance systems, non-enforcement of warabandi (water rotation system), etc.

The details of potential created and utilized, are as under:(M.ha.)

Sub-Sector Irrigation potential

Potential created

Potential utilised

(i) Major & Medium irrigation 58.47 47.41 35.01(ii) Minor Irrigation 81.43 65.12 54.25

(a) Surface water 17.35 15.72 12.43(b) Ground water 64.05 49.40 41.82

Total 139.90 113.24 89.94

Source: - Planning Commission (2009) Report of the Task Force on Irrigation. @ Gross irrigated area was 89.94 mha, NIA was 65 mha i.e. 46% of NSA

One of the reasons of low irrigation is lack of adequate storage capacity to retain excess rainfall, which leads to water scarcity situation in many parts of the country during non-monsoon seasons. Due to this there is over-dependency on groundwater resources not only for agriculture but also for domestic and industrial usage, leading to over-exploitation of aquifers. This in turn, results in reduced river base flows, declining water table and salt water intrusion into the coastal aquifers. Further, around 76 million hectare land (i.e. 54% of net cultivated area) is under rain-fed condition but contributes 44% of the total food production in the country. With proper irrigation facilities, food production from rain-fed areas can be increased substantially. Empirical evidence suggest that assured or protective irrigation encourages farmers to invest more in farming


technology and inputs leading to productivity enhancement and increased farm income.

10.3 Ground Water Scenario

As per the assessment of dynamic ground water resources, out of 6607 assessment units, 1071 units in various parts of the country have been categorized as ‘over-exploited’, 217 units as ‘critical’ and 697 units as semi-critical. Apart from this, there are 92 units completely underlain by saline ground water. While the overall stage of groundwater development is 62%, the stage of development in states likes Haryana, Punjab, Rajasthan and Delhi has exceeded 100% of annual replenishable resources whereas in UP, HP, TN, Puducherry and Daman & Diu, it ranges between 70 to 100%. This calls for long term policy on conservation and efficient management of scarce water resources using proven technology and changing the pattern of water consumption among various sectors of the economy.

Status of categorization as per ground water assessment report of CGWB is given below:

Category No. of assessment unitsTotal assessment units 6607Over exploited 1071 (16%)Critical 217 (3%)Semi-critical 697 (11%)Safe 4530 (69%)Saline 92 (1%)

(Source: Dynamic GW Resources of India, as on 31.03.2011; CGWB, July, 2014)

10.4 Policy Initiatives of Govt. of India

With a view to addressing the water scarcity situations and ensuring more equitable use of water, the Govt. of India launched Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) envisaging the concept of “water for every farm” and “per drop more crop” to which, NABARD is a key stakeholder. Under this initiative, it is targeted to enhance irrigation efficiency by about 20% and creating 28.5 million ha additional area under irrigation. The total budget allocated for implementing various components under PMKSY is `50000 crore over four year’s period (2015-16 to 2019-20). The major components include fast tracking completion of 99 incomplete major and medium irrigation projects, greater use of micro irrigation systems, ensuring water in every farm and improving soil & water management practices on watershed approach for enhancing livelihood security. These measures are likely to not only enhance agricultural productivity and facilitate post-harvest activities across value chain but also result in creation of rural employment to a great extent.

10.5 National Water Mission


Under the National Action Plan for Climate Change (NAPCC), the Govt. of India envisaged National Water Mission with the core objective of “conservation of water, minimizing wastages and ensuring its more equitable distribution both across and within states through integrated water resources development and management”. The Mission outlines the following five goals across which major initiatives have been envisioned as well as aligned from ongoing schemes pertaining to development and management of water resources in the country. Comprehensive water data base in public domain and assessment of impact

of climate change on water resources Promotion of citizen and state action for water conservation, augmentation

and preservation Focused attention to vulnerable areas including overexploited areas Increasing water use efficiency by 20% Promotion of basin level integrated water resources management

10.6 NABARD’ Initiatives in Water Resources Sector1. Credit Planning for Irrigation Development

Institutional credit under private sector mainly flows for the development of minor irrigation facilities through groundwater resources, including micro irrigation systems and solar pump sets.

2. Refinancing to Rural Financial Institutions

NABARD provides refinance support to all banks for financing MI structures like wells, community tube wells, energy efficient pump sets including solar-based pump sets, pipelines, water courses, lift irrigation schemes, micro irrigation structure, check dams, etc. During 2015-16, out of aggregate refinance support of Rs.48,064 crore to banks for their long-term lending, the share of minor irrigation was Rs.1,174 crore (i.e. 2.44%).

3. Watershed Development

NABARD has been implementing watershed development projects since 1992 with an aim to improve agricultural development by capturing scarce water resources and managing the soil and vegetation both in rain-fed and semi-arid regions. As on 31.03.2016, 1177 watershed projects were implemented across 19 States. The cumulative sanction under all watershed projects stood at Rs.1729 crore, out of which an amount of Rs.1463 crore were released covering an area of 18.38 lakh ha. Though these projects have helped in augmentation of surface and ground water resources, enhanced cropping intensity/ crop productivity and also promoted the water governance through participatory irrigation management & water budgeting, lack of understanding of hydrological


conditions and poor infrastructure management have been the limiting factors in harnessing full potential. The interventions have, however, sustainably reduced the farmers’ distress in rain-fed areas, stabilised crop yield and improved the farmers’ income levels.

4. Financing to State Govt. for Creation of Irrigation Infrastructure

NABARD has been financing to the State Govt. for creating irrigation infrastructure out of Rural Infrastructure Development Fund (RIDF) created during 1995-96. As on 31 March 2017, about 29.10 m. ha irrigation potential has been created/ stabilized through implementation of 302,356 irrigation projects. Out of total financial assistance sanctioned for various infrastructure projects, the share of irrigation projects is around 30.30%. Further, over 50% of total financial support for irrigation sector has been provided toward minor irrigation projects. The same has contributed substantially for creation of tangible benefits in terms of improved productivity and income of the farmers in the command areas.

5. Long Term Irrigation Fund (LTIF)

The Govt. of India during 2016-17 set up Long Term Irrigation Fund (LTIF) in NABARD with an initial corpus of Rs.20000 crore for fast tracking of incomplete major and medium irrigation projects. A total fund requirement of Rs.77,595 crore has been assessed to finance 99 identified incomplete projects over a period 2016-20. On completion, these projects will create additional irrigation potential of around 76.03 lakh hectare which will significantly contribute towards enhancing agricultural productivity.

During 2016-17, a total of 85 projects were sanctioned under LTIF with aggregate loan amount of Rs.49,889 crore. Out of this, a loan amount of Rs.9,086 crore was disbursed.

6. Micro Irrigation Fund

In order to achieve the national objective of enhancing water use efficiency in agriculture sector and bringing about desired growth, the Govt. of India had set up a dedicated fund in NABARD titled “Micro Irrigation Fund (MIF)” with an initial corpus of Rs.5000 crore to be utilized from the year 2017-18 onwards. The main objective of the fund is to achieve overall improvement of water use efficiency by about 20% and to cover at least 10% of command area of surface irrigation projects. The fund on operationalization, would be used for providing loans at reasonable rate to the State Govt. who are the major stakeholders for meeting the state’s share in the projects.

7. Water Conservation Campaign


Water has always played a central role in human societies and is a key driver of sustainable growth and poverty reduction since it is an input to almost all production, in agriculture, industry, energy and transport and also useful for healthy ecosystems. Major parts of India is facing acute water shortage on account of changing weather conditions, unsustainable use of water, deteriorating water quality and increasing sectoral water demand. Increasing ground water over-exploitation, large scale use of chemical fertilisers/ pesticides in agriculture and unsafe disposal of industrial wastes into fresh water, poses severe water quality problems.While the Govt. of India/ State Govt. have introduced several schemes and initiated series of other measures to address water scarcity issues, the problems are becoming more acute in the face of changing demand pattern and climate variability. The significant aspect of water scarcity situation, calls not only for transformational initiatives by the public institutions but also for a massive Water Conservation Campaign and collective/ community actions for its conservation, preservation and efficient utilisation to ensure sustainable future.

In the above context, NABARD launched a major Water Conservation Campaign to cover around 1,00,000 villages in most vulnerable/ water stressed areas, particularly where the ground water is over exploited. The active involvement of bank officials, Govt. extension systems, knowledge partners, technical organizations, Corporates and NGOs, etc., have been the most distinctive features of this initiative. Around 200 Master Trainers and 8000 Krishi Jaldoots were identified and given intensive training through the Expert agencies. The Master Trainers and Krishi Jaldoots were deployed to run the campaign at village level covering different stakeholders including SHG members, Farmer clubs, women, health workers, etc. to sensitize them on water related aspects. The main objectives of the campaign are to: Create awareness among the stakeholders about various methods of

water conservation and its efficient utilization/ management Facilitate adoption of cost-effective technologies for enhancing

productivity per unit of volume of water used Linking banks for facilitating investments in water efficient

technologies, rainwater harvesting and adoption of improved water conservation/ management practices in agriculture.

Increasing adaptive capacity of the farmers against climate change through capacity building.

Promoting climate resilient agriculture using local resources/ water use technologies.

Facilitating improved availability of water for agriculture and enhanced income of farmers/ villagers.

Building capacities of local volunteers (Krishi Jal Doots) to act as resource persons (catalysts) in promoting better water management practices through community actions.

The campaign essentially focuses on creating awareness among the


rural community about the methods of water conservation, preservation and its efficient utilization at various levels using the modern technologies like micro irrigation (more crop per drop), traditional water management practices, adopting improved package of agronomic practices, etc. The campaign was designed to engage with major stakeholders at different levels including Govt. departments, banks, Agri universities/KVKs, PRIs, Resource NGOs, local water champions and other volunteers. To make the campaign effective, area specific contents covering different water management practices applicable to local conditions for various agro climatic regions, with emphasis on community participation, were developed for sharing with the community. The major themes of the Campaign for which specific contents were developed, include;

Harvest Rain water (Catch the drop where it falls) Save Water and Use it Efficiently (More crop per drop) Recharge groundwater (Make well yield more sustainable) Adopt Best cropping practices (reduce crop water demand) Supply moisture to crops for better yield, not irrigation water Rejuvenate village water bodies (ensure water to all) Diversion based irrigation & managing artificial glaciers Spring-shed development in hilly areas

The outcome of campaign will be utilized for preparation of area development schemes, convergence plan with the schemes of Govt./corporates, action plan for leveraging the community actions and designing appropriate policy interventions wherever required. The potential interventions will be mapped in the PLP document and appropriate framework for internalization will be developed by the stakeholders.

10.7 Critical Issues and Challenges in Irrigation Sector1. Irrigation/ Water Use Efficiency

Despite having largest irrigated land, India has very low per unit productivity as compared to International standards. As per basin wise study conducted by Dr. A Vaidyanathan and K. Sivasubramaniam, the overall irrigation efficiency in the country is reported to be around 38%. Krishna, Godavari, Cauvery and Mahanadi systems have a very low efficiency of around 27% while the Indus and Ganga systems are doing better with efficiencies in the range of 43%‐47%. The overall efficiency of surface water irrigation projects is around 35%-40% though there is


potential to increase up to 55-60%. In respect of 55% of the area irrigated by groundwater sources, the efficiencies are quite high (70 to 80%) in view of absence of long conveyance systems. Some of the reasons for poor efficiencies are partial completion of irrigation structures, poor operation and management, unlined canals, absence of volumetric water supply, silting of reservoirs, lack of community participation in planning and management, inadequate use of irrigation efficient practices, lack of capacity building of water users for efficient management of structures, etc.

The National Commission on Integrated Water Resources Development Plan (1999) has postulated that it is possible to achieve higher efficiencies in the order of 55‐60 percent for surface water and 72‐75 percent for ground water. Hence, there is a need to enhance the overall irrigation efficiency at least by 20% from the existing level of 35-40% by way of addressing critical issues so as to bring additional area under irrigation and enhance agricultural productivity for meeting the growing food demand.

2. Gap in Potential Created and Utilized

There is large gap between the potential created and utilized due to several factors. As per study conducted by four Indian Institute of Managements (IIMs), the main reasons for the gap were lack of proper operation and maintenance, incomplete distribution system, non‐completion of on-farm activities, changes in cropping pattern and diversion of irrigated land to other purposes. Out of samples selected for study, 40% of the gap was due to poor maintenance and 25 to 40% due toincomplete distribution system. Cropping pattern andland use change accounted for 15 to 20% of the gap. This suggests that operation and maintenance are extremely important and needs ahigh priority.Also, appropriate pricing of water on volumetric basis can incentivize farmers toselect socially desirable and sustainable cropping patterns. In this context, the community participation in planning and management of irrigation structures assumes significance.

3. Declining Water Table

Public investments in irrigation have been largely focused on surface water irrigation making groundwater a common pool resource for utilization by private players, including farmers. Over the last four decades, more than 84% of the total addition to net irrigated area has come from groundwater. These points towards deleterious nature of over dependency and mindless utilization of ground water for irrigation purposes as also for meeting the growing urban needs. Such a scenario coupled with reducing rainfall-recharge and deforestation has led to faster decline in water table in many parts of the country. Therefore, unless appropriate policy regulations are put in place with regard to pricing of water and power, sustainable usage of ground water, recharging aquifers and promoting conjunctive use of surface and


groundwater, the long term sustainability of ground water for different uses cannot be ensured.

4. Energy Demand for Irrigation (Water Energy Nexus)

With limited land resources, inadequate energy supply and growing water stress, India faces the challenge of providing enough water and energy to grow enough food for the burgeoning population. The issues and challenges in the food, water and energy sectors are interwoven in many complex ways and cannot be managed effectively without cross-sectoral integration. The most distinctive feature of the nexus is the high degree of dependency of downstream communities on upstream ecosystem services for dry-season water for irrigation and hydropower, drinking water and soil fertility and nutrients. It is estimated that the agriculture consumes around 18-20% of the total energy consumption in India. However, inadequate and erratic power supply, availability of cost free power and large number of inefficient pump sets have caused not only fast decline in water table in many areas but also high energy usage. Therefore, promoting energy efficient water pumping devices, replacing low energy efficient pumps with high efficiency pumping system, greater use of solar pumping systems particularly in off-grid areas and optimizing agricultural water demand through appropriate crop planning, efficient use of water, ground water recharging and rainwater harvesting, etc. are some of the measures which need to be adopted by way of policy interventions.

5. Deteriorating Water Quality

India’s huge and growing population is putting a severe strain on the natural resources particularly on land and water. Around 30% of urban and 90% of rural India still depends on untreated surface or groundwater for drinking purposes. India ranks 120out of 123 countries surveyed on the Safe Water Index. The water sources are contaminated mainly by sewage and agricultural runoff. Almost 70% of surface water and growing percentage of ground water are contaminated. About 534 of the total 640 districts in India have contamination higher than the maximum permissible limits (CGWB report, 2014) and the ground water in around 1/3rd districts is unfit for drinking purposes since the concentration of fluoride, iron, salinity and arsenic exceeds tolerance level. Surface water in most places has high microbial contamination. This degraded water quality can contribute to water scarcity thus, directly impacting the usable water resources and water supply. As per WHO estimate, 97 million Indians lack access to safe water. As a result, the World Bank estimates that 21% of communicable diseases in India are related to unsafe water. Further, India is facing chronic water shortages and drought, as rivers become increasingly polluted and groundwater reserves rapidly declining due to unchecked use of water pumps by farmers and villagers. The problem is set to worsen with climate change which will further reduce water availability as also water quality.

http://www.ibtimes.co.uk/india-drought-stricken-villagers-take-second-wives-just-fetch-water-photo-report-1504477

http://www.ibtimes.co.uk/india-drought-stricken-villagers-take-second-wives-just-fetch-water-photo-report-1504477


Therefore, the management of water quality both, surface and groundwater becomes extremely important in the context of meeting the emerging water demand for economic development and providing safe and affordable drinking water to the underserved communities.

6. Recycling/ Reuse of Waste Water

As per recent estimate, the generation of wastewater from urban areas has increased to about 54 billion liters a day (bld) during 2013 from about 5 bld during 1947 and over 80% of this wastewater is discharged into natural water bodies without any treatment due to lack of infrastructure and resources for treatment. Of the 45,000 km length of Indian rivers, 6,000 km have a bio-oxygen demand above 3 mg/l, making the water unfit for drinking (CPCB 1998). While an estimated 80% of wastewater is used for irrigation, there is a lack of policy framework covering the issues associated with this practice. Untreated wastewater from domestic, hospital and industrial areas pollute rivers and other natural water bodies. On the regulation front, the Water Act covers industrial effluent standards, but ignores the domestic and municipal effluents even though they constitute 90% of India’s wastewater volumes. The Industries can reuse/ recycle the generated waste water for various purposes within its production/ processes and prevent water pollution by not releasing untreated wastewater into the water bodies.

7. Climate Change Impact on Water Resources

Projections based on climate models indicate that on a global scale, temperature will continue to rise over the next century causing rise in sea levels and change in circulation pattern that affect precipitation. Water will get biggest hit in terms of availability and extremes of floods and droughts. Further, though the global scale projections indicate a possible increase in precipitation in India, certain areas would receive lower rainfall due to considerable spatial variations. The impact of climate change will essentially be reflected in terms of water availability, changes in agricultural water demand, hydrologic extremes of floods & droughts, changes in water quality, salinity ingress in coastal aquifers, modifications in groundwater recharge and other related phenomena. NABARD as NIE for Adaptation Fund and Green Climate Fund, has been making efforts for accessing climate finance to address adverse impacts of climate change through adaptation actions as also climate proofing of the existing investments in various sectors of economy including the water sector.


ANNEXURES













Annexure II TRIPURA

An Overview of Ground Level Credit Flow- Agency wise and Sector wise ( Rs. crore)

Sl. No.

Agency / Type of

loan

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Target Ach. Target Ach. Target Ach. TargetAch.

TargetAch.

TargetAch.

30.9.2017

1 Crop Loan

CBs 123.68 210.96 234.93 259.16 166.81 307.87142.22 363.00 110.41 958.2

964.53

RRB 69.23 206.45 72.16 233.42 118.86 267.0783.42 290.13 99.73 360.0

043.25

TSCB 28.84 75.15 16.89 82.33 34.55 108.91 42.30 118.05 29.65 187.91 16.18

TCARDB 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 0

Total 229.73 221.75 492.56 323.98 574.91 330.21 683.85 267.94 771.18 239.79 1506.20

123.96

2 Term Loan (MT+LT) 14.9%

CBs 133.21 165.61 144.59 189.53 212.73 230.14652.22 291.76 1036.3

1392.1

3529.48

RRB 179.30 132.87 229.78 137.70 215.85 149.03335.54 157.01 319.61 145.4

2200.05

TSCB 50.26 44.37 173.86 44.83 218.12 57.83 167.81 62.60 13.03 63.37 203.71

TCARDB 6.42 16.97 0.21 17.67 0.37 20.29 1.27 14.27 0.27 9.96 0.09

Total 548.09 369.19 359.82 548.44 389.73 647.07 457.30 1156.84

525.64 1369.22 610.90 933.33

3 Total Agri Credit (1+2) 85.1%

CBs 330.96 256.90 376.57 372.34 448.62 390.87 538.02 794.44 654.75 1146.72 1350.42

594.02

RRB 311.84 248.53 339.32 301.94 371.02 334.71 416.11 418.96 447.14 419.34 505.42 243.30 TSCB 110.64 79.10 119.52 190.75 127.17 252.66 166.74 210.11 180.65 42.68 251.28 219.89

TCARDB 24.38 6.41 16.97 0.21 17.67 0.37 20.29 1.27 14.27 0.27 9.96 0.09

Total 777.82 590.94 852.38 865.24 964.48 978.61 1141.16

1424.78

1296.82

1609.01 2117.10

1057.30

4 MSME CBs 339.07 285.92 391.39 737.05 448.48 625.91 510.69 999.29 610.95 1109.67 791.75 586.87 RRB 184.84 118.48 207.09 136.36 210.54 177.53 216.04 199.98 241.38 233.27 192.50 94.83 TSCB 77.27 51.91 88.09 49.08 86.75 42.88 93.84 20.37 112.61 23.82 104.23 13.79

TCARDB 0.00 7.05 0.00 0.87 0.00 0.00 0.00 0 0 0 0 0

Others 1.72 0.00 2.02 0.00 2.05 0.00 2.10 0 2.10 0 2.00 0

Total 602.89 456.31 688.59 923.36 747.82 846.32 822.67 1219.64

967.05 1366.76 1090.48

695.49

5 Other Priority Sector CBs 192.75 272.12 213.46 274.08 247.68 277.16 307.70 276.34 350.07 439.89 415.75 142.87 RRB 129.58 129.48 138.79 173.15 141.27 126.14 156.19 149.58 160.93 153.44 169.70 80.32 TSCB 63.06 20.26 66.55 20.13 67.01 26.03 75.73 39.56 79.68 31.43 77.90 17.59

TCARDB 2.07 0.00 1.91 0.00 1.96 1.92 2.11 1.72 2.50 0.36 3.00 0.04

Others 6.08 5.73 6.40 4.89 6.59 2.37 8.00 1.53 8.00 2.92 5.50 1.37 Total 393.54 427.59 427.11 472.25 464.51 433.62 549.73 468.73 601.19 628.04 671.85 242.196 Grand Total

CBs 862.78 814.94 981.42 1383.47

1144.78

1293.94

1356.41

2070.07

1615.78

2696.28 2557.92

1323.76

RRB 626.26 496.49 685.20 611.45 722.83 638.38 788.34 768.52 849.47 806.06 867.62 418.46


TSCB 250.97 151.27 274.16 259.96 280.93 321.57 336.31 270.00 372.95 97.93 433.43 251.27TCARDB 26.45 6.41 18.88 1.08 19.63 2.29 22.40 2.99 16.77 0.63 12.96 0.14

Others 7.80 5.73 8.42 4.89 8.64 2.37 10.10 1.57 10.10 2.92 7.50 1.37

G. Total 1774.25

1474.84

1968.08

2260.85

2176.81

2258.55

2513.56

3113.15

2865.07 3603.83 3879.4

5 1995.00

% Ach 83 115 104 124 125 51% Incr in target over last

yr 10.9 10.5 15.5 14 35.4

State Credit Plan Projections for 2018-19 approved by SLBC Rs.4429.82 crore, an increase of 14.18% over last year’s Rs.3879.45 crore


Annexure III

Critical Infrastructural Support to be provided

Minor Irrigation Projects Modern Rice Mills Farm Gate Infrastructure – Facilities for sorting, grading, packaging,

transportation & storage Establishment of pack houses, pre-cooling units mobile pre-cooling units,

cold storage units, Controlled Atmosphere (CA) storage/ Modified Atmosphere (MA) storage, refrigerated vans/ containers and primary/ mobile processing mills.

Cold Storages Godowns Market Yards Bio Fertiliser Units Veterinary Network – Strengthening and Expansion Conversion of Bailey Bridges to RCC Bridges Primary Health Centres


Annexure IV

Critical Interventions required in various Sectors

Sector Critical Interventions RequiredCrop Loan Extension for SRR in non-paddy crops

Expansion of SRI method, Adoption of HYV seeds Timely availability of chemical fertilizers & micro-

nutrients Strengthening Agriculture Extension Machinery Increasing banking outlets for financial inclusion Popularising KCC /Rupay KCC Issuance of Cultivators License Cards

Plantation & Horticulture

Availability of quality seeds and planting materials Area expansion Promotion of off-season vegetables Farm Gate Infrastructure Transport System: Farm-gate to Mandi / Aggregation

Centre Cold Storages Post harvest management facilities

Animal Husbandry

Livestock Breeding & Rearing Centres Organised Animal Markets Animal Health Centres & A. I. Infrastructure Land availability for fodder cultivation Strengthening of extension support Milk Standardisation; Collection & Cold Chain;

Processing & marketing Genetic up-gradation of local goat Inputs for Broiler Sector Popularisation of exotic Piggery

Fisheries Providing loans to fish farmers through KCC for seasonal operations

Fish Feed Manufacturing Plants Support to small farmers for increasing productivity Reclamation of old water bodies Qualitative improvement in fish seed Post harvest facilities, Cold Storage & Ice Factories;

Water Resources

Emphasis on Micro Irrigation, popularization of Drip/Sprinkler irrigation

Rain Water Harvesting Restoration & repairs/improvement to distributaries and

minor/sub-minor of existing irrigation projects. Bed lining of canals to facilitate irrigation in tail-end


Sector Critical Interventions Requiredreaches of command area

Land Development

Promotion of vermi-compost Strengthening of extension machinery

Farm Mechanization

Supply & Services Infrastructure: Farm Machine Hubs Small Equipment Hubs Big Farm Machines Hubs Support to Farm Machines Manufacturing Units Promotion of Joint Liability Groups Awareness/Demo camps of farm equipment

Storage Godowns

Promotion of Rural Godowns Promotion of cold storages

Renewable Sources of Energy

Awareness camp Popularization of Jawahar Lal Nehru National Solar

Mission

MSME & Food Processing

Promotion of agro based industries Entrepreneurship Development Creation of Industrial Parks with common facilities


ABBREVIATIONSACABC Agri Clinics & Agri Business Centres MW MegawattsAch. Achievement MT Metric Tonnes / Medium TermACP Annual Credit Plan NRLM National Rural Livelihood MissionANBC Adjusted Net Bank Credit NA Not Applicable/Not Available

ASSOCHAM

The Associated Chambers of Commerce & Industry of India

MGNREGA/ MNREGA

Mahatma Gandhi National Rural Employment Guarantee Act

ATL Agriculture Term Lending NEFT National Electronic Funds TransferATM Automated Teller Machine NGO Non Governmental OrganisationAU Agriculture University NIA Net Irrigated AreaARDD Animal Resources Development

Department Nos. Number

AOD Average Amount of Debt per household NPAs Non Performing Assets

AVA Average Value of Assets NIDA NABARD Infrastructure Development Assistance

AODL Average Amount of Debt per household with outstanding Loan NABARD National Bank for Agriculture and Rural

DevelopmentAPY Atal Pension Yojana NDDB National Dairy Development BoardBC / BF / BCA

Business Correspondent / Business Facilitator/Business Correspondent Agent

TCARDB Tripura Cooperative Agriculture and Rural Development Bank

CSO Central Statistics Office TTAADC Tripura Tribal Areas Autonomous District Council

CB COW Crossbred cows o/s OutstandingCBs Commercial Banks OPS Other Priority SectorCBS Core Banking Solution PS Priority SectorCD Credit Deposit PDS Public Distribution SystemCRAR Capital to Risk weighted Asset Ratio PMJDY Pradhan Mantri Jan Dhan YojnaCSR Corporate Social Responsibility PMJJBY Prime Minister Jeevan Jyoti Bima YojanaDAR Debt Asset Ratio PMSBY Prime Minister Suraksha Bima YojanaDEDS Dairy Entrepreneurship Development

Scheme PRODUCE Producers Organisations Development Upliftment Corpus

DD Dairy Development PLP Potential Linked Credit PlanDLCC District Level Consultative Committee Phy. PhysicalDTWs Deep Tube Wells HP Horse PowerFCs Farmers’ Clubs PACS Primary Agricultural Coop Credit SocietyFin. Financial PPP Public Private PartnershipFIF Financial Inclusion Fund PMGSY Pradhan Mantri Gram Sadak YojanaFITF Financial Inclusion Technology Fund PMMY Prime Minister’s Mudra YojanaFTTF Farmers Technology Transfer Fund PIM Participatory Irrigation ManagementFPO Farmers Producers Organisation RIDF Rural Infrastructure Development FundFPF Food Processing Fund RIPF Rural Infrastructure Promotion FundFFDA Fish Farmers Development Agency RBI Reserve Bank of IndiaFRA Forest Rights Act RRB Regional Rural BankGCA Gross Cropped Area RTGS Real Time Gross SettlementGCC General Credit Card RSETI Rural Self Employment Training InstituteGDP Gross Domestic Product SLBC State Level Bankers’ CommitteeGLC Ground Level Credit SCC Swarojgar Credit CardGoI Government of India SF / MF Small Farmer / Marginal FarmerGP Gram Panchayat SFP State Focus paperHYV High Yielding Variety SGDP State Gross Domestic ProductHa / ha Hectare SGSY Swarn Jayanti Gram Swarojgar Yojanaha.m. Hectare Metre STCCS Short Term Cooperative Credit StructureHDI Human Development Index SHG-BLP Self Help Group Bank Linkage

ProgrammeIOI Incidence of Indebtedness SRR Seed Replacement RateJLG Joint Liability Group SRI System of Rice IntensificationKCC Kisan Credit Card SAMIS Service Area Monitoring & Information

SystemKM Kilo Meters SFAC Small Farmers Agri-Business consortiumKVK Krishi Vigyan Kendra TCMPUL Tripura Cooperative Milk Producers’

Union Ltdkw Kilowatts TREDA Tripura Renewable Energy Development

AgencyLPD Litres per Day WUA Water Users AssociationLTCCS Long Term Cooperative Credit WIF Warehousing Infrastructure Fund


StructureLEDP Livelihood Entrepreneurship

Development Programme UNFCCC The United Nations Framework Convention on Climate Change

MoA Ministry of Agriculture VAMBAY Valmiki Ambedkar Awas Yojanam / mtr Metre WUA Water Users AssociationMoF Ministry of Finance WIF Warehouse Infrastructure Fund MSE Micro & Small Enterprises IWMP Integrated Watershed Management

ProgrammeMT Metric Tonnes / Medium Term WSHG Women Self Help GroupTSC Total Sanitation Programme ZP Zila panchayat


Details of DDMs & DDM(R) of NABARD in the State

S.No

District Name (S/Shri)

DDM / DDM

®

Contact No

Email ID

1. Dhalai & Khowai

Amit Das DDM 9436928463

[email protected]

2. Gomati &South Tripura

Diganta Kr. Das

DDM 9436134334

[email protected]

3. North Tripura & Unakoti

Timir B Saha

DDM 9402136904

[email protected]

4. Sipahijala Sajal Karmakar

DDM ®

9436451670

[email protected]

5. West Tripura

Rajesh Datta

DDM®

9830200274

[email protected]

mailto:[email protected]




planning.tripura.gov.in · Web viewOf the two major sources of power generation, gas based thermal power accounts for 93% while remaining 7% is generated from hydel power (Gomati

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