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Comparative Data of Banks in Himachal Pradesh


Table- 5.2


5.8 Performance under Annual Credit Plan 2020-21

Banks prepared Annual Credit Plan for financial year 2020-21 for disbursement of fresh loan on the basis of potentials worked out for various priority sector activities by NABARD.

The financial targets under Annual Credit Plan 2020-21 have been

increased by 9.45 per cent over the last plan outlay and fixed at `27,702 crore.

Banks have disbursed fresh loans to the tune of `14,256 crore up to September, 2020 and achieved 51.46 per cent of the annual commitment. The Sector-wise target viz-a-viz achievement up to 30.09.2020 is gives Table 5.3.


Position as on September, 2020 at a glance

(` in crore) Sl.


Sector Annual Targets 2020-21

Targets September,


Achievement September,


Percentage Achievement

September, 2020 1. Agriculture Direct 11310.93 5655.46 3396.77 60.06

2. MSME 8513.88 4256.94 6677.72 156.87

3. Education 456.68 228.34 35.93 15.73

4. Housing 1656.03 828.01 434.01 52.42

5. Others-PS 1687.22 843.61 83.27 9.87

6. Total Priority Sector Loans (1 to 5)

23624.74 11812.36 10627.70 89.97 7. Total Non Priority

Sector loans

4077.02 2038.51 3628.11 177.99

Total Loans( 6+7) 27701.76 13850.88 14256.11 102.93


5.9 Implementation of Government Sponsored Schemes:

i) National Rural Livelihood Mission (NRLM)

The Ministry of Rural Development, launched flagship program of Government of India for promoting poverty reduction through building strong institutions of the poor, particularly women and enabling these institutions to access a range of financial services and livelihoods services. This scheme is implemented in the State through HP State Rural Livelihood Mission (HPSRLM), Rural Development Department, Government of Himachal Pradesh. Banks in the Himachal have been allocated the annual target of `91.30 crore covering 10,270 beneficiaries under this Scheme. Banks have sanctioned 2,471 loan to the tune of

`39.16 crore up to 10th December, 2020 under NRLM scheme.

ii) National Urban Livelihood Mission (NULM)

The Government of India, Ministry of Housing and Urban Poverty Alleviation (MoHUPA), restructured the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY) and launched the National Urban Livelihoods Mission (NULM). The Self Employment Programme (SEP) is one of the components (Component 4) of NULM which will focus on providing financial assistance through a provision of interest subsidy on loans to support establishment of Individual and Group Enterprises and Self-Help Groups (SHGs) of urban poor.

NULM has been implemented in Himachal Pradesh by Urban

Development Department. Banks have disbursed loans to the tune of

` 3.33 crore under NULM as on 31st October, 2020.

iii) Pradhan Mantri Employment Generation Programme (PMEGP) Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy programme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India.

Khadi and Village Industries Commission (KVIC) is the nodal agency at national level for implementation of the scheme. At State level the scheme is implemented through KVIC, KVIB and District Industries centre. In financial year 2020-21, a target of financing 1,215 new units under the scheme was allocated to Banks.

The implementing agencies have been targeted to provide margin money disbursement to the tune of

` 36.43 crore under the Scheme.

Banks have sanctioned `28.97 crore as margin money to the entrepreneurs of 479 units till September, 2020.

iv) Dairy Entrepreneurship Development Scheme (DEDS) The Ministry of Agriculture and Farmer Welfare, Government of India is implementing the Dairy Entrepreneurship Development Scheme (DEDS) through NABARD for Dairy sector activities. The capital subsidy under the scheme is administered through NABARD.

Banks have sanctioned 356 proposals involving `4.76 crore up to September, 2020 under the DEDS.


5.10 Kisan Credit Cards

Banks are implementing Kisan Credit Cards (KCC) through their rural branches to provide adequate and timely credit support from the banking system under a single window to the farmers to meet the short-term credit requirements for cultivation of crops and other needs. Banks have disbursed fresh KCCs to 87,402 farmers amounting to `1,336 crore up to September, 2020. Banks have financed 4,22,168 farmers under KCC scheme with an aggregate amount of

`6,670 crore up to September, 2020.

5.11 Rural Self Employment Training Institutes (RSETIs)

Rural Self Employment Training Institutes (RSETIs) are an initiative of Ministry of Rural Development (MoRD) to have dedicated infrastructure at district level to impart training and skill up-gradation of rural

youth geared towards

entrepreneurship development. The Lead Banks i.e. UCO Bank, PNB and SBI have set up RSETIs in 10 districts of the State (except Kinnaur and Lahaul & Spiti). These RSETIs are conducting EDPs under various Government sponsored programmes for poverty alleviation and to develop entrepreneurship under PMEGP Schemes.

5.12 Special drive for Aadhaar linkages with Bank account and verification of Aadhaar in all existing Bank Accounts

In Himachal Pradesh, 95 Aadhaar Enrollment and Updation Centres are identified by various Banks to provide facility of Aadhaar enrolment and updation facility.


NABARD has strengthened its association with the developmental process substantially for Integrated Rural Development in the recent years by the initiatives encompassing a wide range of activities viz. Development of Rural Infrastructure, Micro Credit, Farmer Producer Organizations, Rural Farm and Non-Farm Sector, skill development, increased Refinance, besides strengthening the rural credit delivery system in the State. In addition, NABARD is also implementing or is associated with certain Centrally sponsored credit linked subsidy schemes of Government of India.

5.14 Rural Infrastructure

The development of

infrastructure in rural areas through Rural Infrastructure Development Fund (RIDF), since its inception in 1995-96 has emerged as NABARD’s major intervention in partnership with the State Governments. Under this scheme, concessional loans are given by NABARD to State Government and State owned Corporations for the completion of ongoing projects and also to start new projects in certain selected sectors. Financing over the years has become broad based covering 37 eligible activities into agriculture and related sectors, social sector and rural connectivity.

From an initial allocation of

₹15.00 crore under RIDF-I from the year 1995-96, the allocation to the State has now reached the level of

₹844.20 crore under RIDF-XXV (2020- 21). RIDF has played an important role in development of diversified sectors like irrigation, roads and bridges, flood protection, drinking water supply in addition to primary education,


veterinary services, watershed development, IT infrastructure etc. In recent years, innovative project for development of Poly-Houses and Micro Irrigation Systems and Solar irrigation have been supported.

Financial assistance of ₹8,886.17 crore has been sanctioned under RIDF for implementation of 12,151 projects as of 31.12.2020 to the state including rural roads/bridges, irrigation, rural drinking water, education, animal husbandry etc. An amount of ₹326.20 crore has been disbursed up to 31.12.2020 to the State Government.

After the implementation/completion of the sanctioned projects, 11,790 km road will become motorable, 25,743 metre of bridges will be constructed and 1,58,030 hectares land will benefit through irrigation projects. In addition, 2,921 rooms in Primary Schools, 64 Science Laboratories in Secondary Schools, 25 IT Centres and 397 Veterinary Hospitals have been constructed.

5.15 Warehouse Infrastructure Fund (WIF)

NABARD has sanctioned

₹418.02 lakh to the State Government for the financial year 2019-20. One Controlled Atmosphere (CA) Store Project at Churah, Chamba with 500 MT capacity is being implemented by HPMC. For Modernization and Upgradation of Cold Stores into CA stores ₹ 855.00 lakh at Rohru, Oddi and Patlikuhal with capacity of 3,480 MT has been sanctioned as of 31.12.2020.

5.16 Food Processing Fund (FPF) NABARD has established a Food Processing Fund (FPF) with a corpus of ₹2,000 crore in 2014-15 for providing financial assistance for establishing the designated food parks

and also for setting up of individual food/agro processing units.M/s Cremica Mega Food Park has been extended financial assistance of

₹32.94 crore out of total project cost of

₹103.85 crore in the State.

5.17 Refinance Support

NABARD extends Long Term Refinance for diverse activities viz.

rural housing, small road transport operators, land development, minor irrigation, dairy development, self help group, farm mechanization, poultry, plantation, horticulture, sheep/goat/

piggery rearing, packing and grading house activity and other sectors to the tune of ₹ 615.41 crore during 2020-21.

Himachal Pradesh Gramin Bank and Cooperative Banks also released an amount of ₹269.55 crore under long term refinance and ₹59.00 crore to Commercial Banks as on 31.12.2020.

NABARD has also supplemented the efforts of Cooperative Banks and RRBs for crop loan disbursement in the state by sanctioning Short Term (ST) credit limit of ₹1,015.00 crore against which the banks have drawn refinance assistance of ₹1,015.00 crore during 2019-20. Further an amount of ₹1,660.00 crore was sanctioned in the current year out of which ₹1,380.00 crore has been drawn as of 31.12.2020. To mitigate the impact of Covid-19, NABARD has provided Special Liquidity Facility of

₹550.00 crore to Cooperative Banks in H.P.

5.18 Special Refinance Schemes To give boost to the agriculture and rural sector in the Post Covid era, NABARD launched 4 new schemes.

a) Transformation of PACS (Primary Agricultural Cooperative


Societies) as MSCs (Multi Service Centres):

Under this scheme, an amount of ₹3.17 crore has been sanctioned to 13 PACS in the State as on 31.12.2020.

b) Special Refinance Scheme in NABARD watershed and WADI Project areas:

The scheme aims to promote sustainable economic activities, livelihood and employment opportunities in supported NABARD

watershed and WADI areas by providing concessional refinance

facility @ 3 per cent to the banks for extending cheaper credit to the ultimate beneficiaries.

c) Special Refinance Scheme for Promoting Micro Food Processing Enterprises:

The scheme aims to provide a fillip to the Pradhan Mantri Formalization of Micro Food Processing Enterprise Scheme. NABARD will extend long term refinance to all eligible banks / FIs at 4 per cent to accelerate capital formation in Micro Food processing enterprises.

d) Schematic Refinance for Water Sanitation and Hygene Activities The Scheme aims to meet credit requirement of banks/ FIs to enable them to provide timely and hassle free credit to eligible beneficiaries /entrepreneurs to facilitate WASH activities.

5.19 Government Sponsored Schemes

a) Under National Livestock Mission

`1.48 crore subsidy has been released in the financial year 2019- 20 and `98.79 lakh for the year 2020-21 as on 31.12.2020 in the State.

b) Under New Agricultural Marketing Infrastructure Scheme `3.41 lakh has been sanctioned as of 31.12.2020 for the State.

5.20 Micro Credit

The Self Help Group (SHG) movement has spread across the Himachal Pradesh and is now on a firm base. The movement has given added support in human resources and financial products. As on 31st March 2020 the cumulative number of credit linked SHGs stood at 58,872 and the number of credit linked SHGs with loans outstanding was 13,063 with an amount of `15,491.49 lakh.

The announcement in Union Budget 2014-15, of financing of Joint Farming Groups “Bhoomi Heen Kissan”

(landless farmers) has given further credence to effort of NABARD in innovating and reaching out to the landless farmers through Joint Liability Groups (JLGs) mode of financing. As on 31.03.2020, 8,424 Joint Liability Groups have been provided loan disbursement of `11,174.58 lakh.

During the year 2020-21, NABARD has sanctioned `40.00 lakh each to Himachal Pradesh Gramin Bank (HPGB), State Bank of India and Uco Bank for promotion and credit linkage of 1,000 JLGs over a period of 3 years.

5.21 Promotion of Farmers’