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POTENTIAL LINKED CREDIT PLAN
(2006-2007)
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DISTRICT : BONGAIGAON, ASSAM
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National Bank for Agriculture and Rural Development
Assam Regional Office
Laxmi Bhavan, Panbazar
Guwahati - 781 001
Tel: 2540873, 2540875, 2523872, 2519247 Fax: 2541131
e-mail : nabassam@dataone.in
PLP 2006-07 - Bongaingaon, Assam
FOREWORD
Potential Linked Credit Plan (PLP) is prepared to estimate potentials for investment
opportunities under different sectors and sub-sectors of economy for each district. In the PLP
for 2006-07, we have made assessment of potentials, keeping in view the infrastructure and
other necessary support services available in the district. It also identifies the infrastructural
constraints hindering the flow of ground level credit and the infrastructure requirement of the
district for balanced development. The process of preparation of PLP has been made
consultative particularly through pre PLP discussions with the concerned stakeholders to fine
tune the potential estimates. Tapping these potentials call for concerted action on the part of
the banks, Government, NGOs and other related organisations.
NABARD has been constantly endeavoring to facilitate smooth credit flow through various
measures like refinement in policies and products, redesigning and launching new
products/schemes, promotional interventions to enhance credit absorption capacities,
providing assistance to state government for creating infrastructural facilities, organising
rural people into SHGs/JLGs, promotion of Farmers Clubs and other relevant initiatives.
NABARD had prepared and provided model bankable schemes for more than 100 activities
to banks in the form of CDs. Banking plans on Bamboo cultivation, Dairy Development,
Piggery, Fishery and Vermicompost have been launched in various districts of the state. The
efforts for doubling of agriculture credit in three years witnessed growth of more than 200%
in the first year itself i.e. 2004-05. This is the result of collective and concerted efforts made
by banks, line departments and all concerned. We hope, the same tempo will be maintained
in the current year and the following years as well.
GoI has recently announced various initiatives viz. doubling of credit flow to Small and
Medium Enterprises (SMEs) by the end of 2009-10, Horticulture Mission for development of
Horticulture, renovation and development of Water Harvesting Structures etc. Achieving
higher growth rate of economy and for providing self employment opportunities to
unemployed calls for organised and intelligent efforts by banks for facilitating hassle free
credit flow to various sectors and the needy sections.
Due publicity of investment opportunities available in the district coupled with coordinated
efforts by all concerned is vital for higher credit flow in the district. Sanction of Kisan Credit
Cards to farmers and Swarozgar Credit Cards to rural artisans/SMEs/self employed persons
would ensure smooth credit flow in a hassle free manner and also reduce transaction cost to
banks. Therefore coverage under these schemes need to be increased. Setting up of 10
agri-clinics per district would encourage adoption of improved technologies and better
cropping patterns by the farmers. It would also help in adopting technologies developed by
agriculture universities/ research centers by the farmers. Encouraging adoption of
improved technologies for higher productivity and efforts to minimising risk would enable
banks to lend.
Matching support is required from State Govt. and the district authorities in the form of
providing needed infrastructure facilities and assistance for recovery of sticky loans. The
progress made by banks in doubling credit flow to agriculture and SMEs need to be closely
monitored at the district level. For this purpose BLBC/DCC meetings should be conducted
periodically so that issues hindering credit flow could be sorted out in these meetings. Banks
need to give attention to timely and regular submission of LBRs by branches to generate data
needed to facilitate monitoring of credit flow for each sector/activity.
We would like to place on record our sincere appreciation to the Deputy Commissioner, Lead
District Officer of RBI, Lead District Manager, Line Departments and other agencies for
extending their cooperation, guidance and active support in finalisation of this PLP. We also
appreciate the support received from controlling offices of Commercial Banks, RRBs and
Cooperative Banks.
We hope, the PLP will assist banks in development of potential available in the district
through provision of credit and in improving their business. We do hope that the PLP would
also help the State Government in identifying and creating infrastructure needed in the
district for enabling banks to increase credit flow.
(C. K. Gopalakrishna)
Chief General Manager
Assam Regional Office
NABARD, Guwahati
10 October 2005
CONTENT S
Chapter Items Page No
Executive Summary 1
District Profile 6
Summary of Broad Sector-wise PLP Projections 9
Summary of Detailed Sector-wise PLP Projections 10
Chapter I Introduction 11
Chapter II I. Sectoral Review and Potential projections
1. Crop loan 14
II. Investment Credit for Agriculture and Allied Activities
A. Investment Credit for Agriculture
2. Minor Irrigation 17
3. Land Development 20
4. Farm Mechanization 23
5. Plantation & Horticulture 25
6. Sericulture 29
6. Forestry and Wasteland Development 31
B. Investment Credit for Allied Activities
7. Dairy Development 34
8. Poultry 37
9. Sheep, Goat and Piggery 39
10. Fisheries 41
11. Storage/Godowns and Market yard 44
12. Renewable sources of energy and waste utilisation 46
13. Other Allied Activities (Bullock/Bullock carts, etc.) 49
III. Non-farm Sector Activities 51
IV. Other Priority Sectors 55
Chapter III Infrastructure Support 57
Chapter IV Support requirement for Government Sponsored Programmes 65
Chapter V Role of Informal Credit Delivery System 71
Chapter VI Performance of Credit agencies 76

Chapter VII Policy initiatives of GoI/State Govt./RBI/NABARD and other agencies 80
Chapter VIII Response from the farmers 88
Annexure I Activity wise / Block wise Potential Linked physical and financial estimates
Annexure II An Overview of Ground Level Credit Flow - Agency wise
Annexure III Sector wise Ground Level Credit Flow under Agri. and Allied activities
Annexure IV Scales of Finance for different crops as approved by DLTG
Annexure V Unit cost for the activities relevant for the district finalised by SLUCC
Annexure VI Unit cost for NFS activities finalised at District level
Annexure VII Model Schemes relevant for the District
Annexure VIII Information on the Selected Commodity of the district
EXECUTIVE SUMMARY
The undivided Bongaigaon district is situated in a humid sub-tropical climate. There is

high rainfall and humidity .The economy of Bongaigaon and Chirang district is primarily
agrarian in nature. After the formation of Bodoland Territorial Areas District (BTAD), the
Chirang district has been carved out of Kokrajhar, Bongaigaon and Barpeta districts. Total
population of the Chirang district is 3,43,626. There are two Sub-Divisions in the Chirang
district. They are at Kajalgaon and Bijni. Chirang district is bounded by Bhutan on the
North, by Kokrajhar district on the West , by Bongaigaon district on the South and by
Baksha district on the East. There is dense forest in the foot hills of the Royal Bhutan. The
Manas National wild Life Park is the centre for tourist attraction of the district . Manas
Wild Life Park was declared as a National Park in 1990, located at the foothills of the
Bhutan with unique Bio-diversity . The National Park is included in the Tiger Reserve
network under the Project Tiger in 1973 and international importance under UNESCO’s
WORLD HERITAGE convention in 1988 as well as Biosphere reserve in 1989.
Therefore, the economic development of both the district is dependent on agriculture and
allied activities. The Potential Linked Credit Plan (PLPs) of Bongaigaon and Chirang
district envisages deployment of bank credit to the tune of Rs. 2480.25 lakhs for the
development of various sectors during the year 2006-07. The share of agriculture and allied
activities, non-farm sector and other priority sector are in the range of 30.82%. 20.79% and
48.38% respectively. Although the agro- climatic condition of the district is highly
conducive for development of agriculture and allied activities, the constraints on
infrastructural facilities coupled with other socio- economic conditions prevailing in
the district have hampered the development of the district. The institutional credit flow to
various sectors have also been affected due to very poor recovery performance resulting in
high level of NPAs.
The major district level constraints, infrastructure and non credit inputs to be created and
the action to be initiated by various agencies are as follows:
Sector/Activitywise Summary of Potential and
Financial Requirements for 2006-2007
Crop Loan
The economy of the district is agriculture based and 80% of the population is engaged in
agriculture. On the basis of area covered under major crop, Kharif occupies major part
followed by Rabi. Paddy is the major crop. There is little scope for bringing more area under
tillage. However, there is more scope for application of scientific and modern method of
cultivation and introduction of Hybrid and HYV seeds to increase production and intensity
of cropping. Financial requirement is estimated at Rs.317.95 lakhs to exploit the potential
during 2006-07.
[ 1 ]
Minor Irrigation
Bongaigaon district has a good number of rivers, flowing from the mountainous region of
Bhutan to its south. The rivers offer a high potential for flow and lift irrigation. Total
irrigation potential created is estimated at 5442 ha and out of which 5242 ha has so far been
utilised. Most of the lift irrigation schemes are now defunct due to lack of maintenance.
Minor irrigation cover only 6% of the net cropped area of the district out of which the area
irrigated through ground water and surface water are 20% is 80% respectively. Financial
requirement for exploitable potential is estimated at Rs.36.86 lakhs during 2006-2007.
Land Development
The soil type is generally sandy to sandy loam with alluvial deposits. The soil is highly
porous and therefore, lacks moisture retention capacity and is susceptible to erosion. The
water level in the district is very low. The rivers and riverlets originating from Bhutan Hills
flow in spate causing torrential floods during rainy season changing their course frequently
eroding river banks and creating havoc in the agricultural fields. The problem is further
compounded due to the creation of irrigation channels by the local farmers for agricultural
practices as it has led to large scale gully erosion. The Department of Soil Conservation has
formulated suitable and effective gully erosion schemes under the Centrally Sponsored
Project with the objective of arresting further erosion. Due to lack of budgetary resources
exploitable potential is estimated at Rs.17.14 lakhs under bank finance during 2006-07.
Farm Mechanisation
Percentage of area under multiple cropping is less than 50% and cropping intensity is 161%. The use of
tractor and power tiller is still low though a number of agencies are providing tractors and power tiller
under different schemes. Based on the above factors, there is potential for increasing crop intensity through
the use of either tractor or power tiller. The financial requirement for exploitable potential under farm
mechanisation during 2006-07 is estimated at Rs.80.00 lakh.
Plantation and Horticulture
Bongaigaon district has less than 5% of the total geographical area under plantation
and horticultural crops like banana, coconut, arecanut, rubber, tea, and bamboo.
Financial requirement is estimated at Rs.28.98 lakhs during 2006-07 under plantation
and horticulture.
Sericulture
Sericulture industry has great potential in Bongaigaon district. There are 156
sericulture villages where 1604 number of families are engaged in sericulture
activities. Rearing Eri and Silk worms and reeling of yarn is one of the traditional
activities of both tribal and non-tribal women of the district. Financial requirement
to exploit the potential is estimated at Rs.7.40 lakhs during 2006-07 under sericulture.
[ 2 ]
Forestry and Wasteland Development
Forest occupies 55809 ha out of the total geographical area of 251000 ha. The forest is an
important source of firewood and fodder, besides, employment generation, moisture
conservation, soil erosion control and amelioration of the environment. Since there is scope
for institutional finance in Bongaigaon district, financial requirement is estimated at
Rs.10.89 lakhs for forestry and wasteland development during 2006-07.
Animal Husbandry
Animal Husbandry is the main agri-allied activities for the rural population of the district.
There is a huge gap in demand and supply of milk. Pork, Mutton and Poultry meat are
popular among the tribal and general population of the district. There is shortage of supply
to meet the demand. Naturally high prices prevail in the market. Financial requirement is
estimated at Rs.88.80 lakhs to exploit the potential during 2006-07 under different heads of
animal husbandry.
Fisheries
The district has potential with resources in the form of ponds, beels and number of rivers.
Fish has a good demand in the market and almost all sections of population eat fish. There
is a shortfall in supply of fish in the market and good quantity of fish is imported from
outside the district/state. Financial requirement is estimated at Rs. 22.95 lakhs to exploit
the potential during 2006-07.
Storage/Goodman/Market Yard
There are certain areas in Bongaigaon district producing large quantity of potato and other
vegetables like cabbage, cauliflower, tomato etc. There is no storage facility for such
perishable items. Hence there is glut in the market during season and shortage during the
off-season. As a result both producer and consumer suffer. There is no scope for
institutional finance under private enterprise. Only scope available is under
cooperative sector. However, the cooperative sector is very weak and as such no
institutional finance is forthcoming. Therefore financial requirement is estimated
Rs. 10.50 lakhs for the year 2006-07.
Renewable source of energy and waste utilization
There is scope for development of renewable source of energy and waste utilization in the
Bongaigaon district. The cattle population in the district is 281696 as per 2003-2004 census.
Even if 50% of the animal dung is made available for renewable source of energy and
utilization to establish unit in the district. Financial requirement is estimated at Rs.0.45
lakhs to exploit the potential during the year 2006-07.
Non-farm Sector : The Bongaigaon district is one of the industrial districts in Assam.
There are BRPL, Dhaligaon, Ashok paper mill, Aluminum factory existing in the district.
Small scale industries, Khadi and Village units and cottage industries can be developed
[ 3 ]
based on local resources. The estimated financial requirement is Rs.515.70 lakhs for the year
2006-07 under the non-farm sector and Rs. 1200.15 lakhs under other priority sector.
Major Constraints
The major constraints prevalent in the district, which stand in the way of smooth
implementation of various developmental schemes are highlighted in brief in the following
paragraphs:.
In most of the cases, the funds are not utilised for the specific purpose. Due to diversion of
funds, no assets are created and in turn the scarce resources of the financial institutions
are blocked as repayments are not forthcoming.
In 30 to 50 percent cases, there are instances where assets are created by the
beneficiaries and they are able to reap the benefits of the scheme. However, they do
not voluntarily repay the bank dues due to prevailing non-repayment climate.
In certain cases, there is lack of regular follow up from the side of the financial
institutions mainly due to staff constraints or other reasons like lack of coordination
amongst the concerned departments for recovery drive, prevailing law and order
problem in the district.
There is lack of entrepreneurship in the district. The people prefer government jobs to
self employment. Those who come forward for self-employment, lack entrepreneurial
idea, business acumen, perseverance and self-confidence to become successful.
The poor recovery climate prevailing in the district ultimately discourages the
financial institutions to go ahead further even with the govt. sponsored programmes.
The district is frequently affected by floods and the silt carried by the rivers from the
Bhutan hills occasionally makes the cultivable land unsuitable for cultivation.
Further, these small rivers frequently change their course resulting in erosion in
cultivable land.
[ 4 ]
[ 5 ]
D-I
DISTRICT PROFILE AT A GLANCE
(As on 31 March 2005 )
1 Name of the district Bongaigaon
Geographical area (sq. km) 2510 sq. km.

(a) No. of blocks/talukas 7
917
(b) No. of villages (inhabited)
(2001 census)
2 (c) No. of villages electrified 816
(d) No. of villages connected by all weather 430
roads
(e) No. of villages having supply of potable water 2530
(habitations)
Normal Actual
3 Rainfall (mm) 2003-04 2004-05
2500-3500 3,105.8 4,423.6
4 Agro-climatic Region & Zone Lower Brahmaputra valley Zone
Population (in 2001 census )
(a) Male 465,240
(b) Female 439,595
(c) Total 904,835
5 (d) SC/ST Population
Schedule caste 92770
Schedule Tribes 110696
(e) Population density / sq. km. 360%.
(f) Population below poverty line ( 1991 census) 86,744
Classification of workers As per Dy. Director of economic &
statistics
(a) Cultivators 113,791
(b) Of (a) Small Farmers 233087
6 (b) Marginal Farmers 60156
(c) Agricultural Labourers 51,972
(d) Artisans 1,888
(e) Household Cottage industries 8,940
(f) Allied Agro-activities 51,972
(g) Other workers 118,540
(e) Non workers 611,592
1999-2000 (Provisional ) statistical
Land utilisation
hand book of Assam 2004
(a) Geographical area (ha.) 251,000
(b) Net Sown area (ha.) 92,680
7 (c) Forest 55,809
(d) Fallow land (ha.) 12,428
(e) Land not available for cultivation (ha.) 74,694
(f) Cropping Intensity 161%
(g) Area brought under HYV seeds (ha.) 47,090
[ 6 ]
8 Size of holdings No. (%) Area (ha.) (%)

a. a. Less than 1 ha. 44877 44 23758 25
b. b. Between 1 and 2 ha. 48934 47 23369 25
c. c. Above 2 ha 10646 11 20903 22
8 Irrigation (in ha)
a. Net irrigated area 22,897
b. By channels 11,048
c. By wells 2,569
d. By other Sources (specify) ELIS 3,518
e. By STWs 21,378
9 Consumption of Organic and Chemical i) Organic 46 kg./ha.
Fertilizer and pesticides per ha. ii) Chemical Fertilizers 80/ha,
iii) Pesticides 0.10 kg/ha
Agriculture Support Facilities Nos.
Seed NA
Fertilizers 146 nos.
Pesticides depots NA
10 Rural Markets/Mandis 47 nos.
Rural Godowns NA
Cold Storages Nos. : Nil Total capacity - nil
Animal Husbandry ( 2003 census)
a. Plough animals 161,425
b Dairy Animals
(i) Cows 176,368
11 (ii) Buffaloes 3,282
c. Sheep 36814
d. Goat 127300
e. Pigs 34612
f. Poultry 2,364,518
(12) Predominant economic activities of the district
Agriculture is the predominant economic activities of the district. Paddy is the
major crop of the district and covers 75 % of the total gross cropped area. Present
average production of rice is near about 1.54 MT per hectare. Agro - climatic
condition of the district is conducive for agriculture but agriculture practices
followed are only traditional. There is enough scope for modernisation and
commercialisation of agriculture.
(13) Major food : Rice Wheat, Peas

Commercial crops : Mustard, Potato, Vegetables, Pulses
Plantation crops : Rubber, Jute etc.
Horticulture crops : Coconut, Arecanut, Citrus, Pineapple, Guava
(14) Special/additional/other features of the district relevant to credit estimates
of updated year.: Nil
(15) Other factors affecting the district rural economy and development of
various sectors viz. flood, drought, pest attack, hailstorms etc.
Recurrence of flood is the major factor affecting the crop production during Kharif season.
[ 7 ]
D-II
INDICATORS OF THE CREDIT DELIVERY SYSTEM - KEY BANKING STATISTICS AS ON 31-03-2005
(Rs. lakh)
SCB RRBs CBs Total
1 No. of banks 2 1 10 13
2 No of branches 2 12 26 40
i. Rural 0 9 10 19
ii. Semi -Urban 2 3 16 21
iii. Urban 0 0 0 0
Total 2 12 26 40
3 No. of Staff per branch/society 11 5 12 28
4 No. of loan accounts 1,053 9,773 18,555 29,381
5 No. of loan accounts per branch 526 814 713 734
6 Average population per branch 6,708 21,850 20,200 19,696
Average no. of villages covered per
7 9 29 20 22
branch/per society
8 Total deposits as on 31 March 2005 1,624.63 7,096.47 37,550.18 46,271.28
9 Average deposits per branch 812.31 591.37 1,444.23 1,156.78
2.46 Growth in Deposits
c) 2004 over 2003 150.62 607.97 -1087.32 -328.73
D) 2005 over 2004 68.22 --487.53 3535.72 3116.41
11 Total loans outstanding as on 31.3.05 324.91 2,102.18 15,888.29 18,315.38
% Increase in Outstanding :
12 c) 2004 Over 2003 82.05 9.10 37.56 33.49
d) 2005 over 2004 -1.70 15.52 47.60 41.82
13 Loan outstanding per account 0.31 0.21 0.85 0.62
14 Loan outstanding per branch 162.45 175.18 611.08 457.88
15 ST/MT/LT loans per ha. n/a n/a n/a n/a
% of agricultural advance to total
16 12.98 10.69 5.57 6.30
advances as on 31.3.05
17 CD Ratio (agency-wise) 20 29.62 42.31 39.58
18 % of recoveries of loans to demand
therefor :
As on 30.6. 2003 10.83 9.76 36.15 13.50
As on 30.6.05 8.00 23.75 19.11 21.44
19 % of overdues to loan outstandings 2.46 1.13 0.12 0.11
20 % of net NPAs to total assets 16.84 19.38 10.67 11.79
21 Brief information relating to The performance of the credit institutions in the
performance of credit agencies district is very poor in lending to Agricultural
(Cross refer with chapter V- sector. This has resulted in very low in CD Ratio in
Performance of credit agencies. all banks. Due to non recovery of dues the total
NPA’s is 11.79% in the district as on 31.3.2005. The
position can be improved if the banks and line
department take join actions strategy for recovery by
using the state machinery and support.
[ 8 ]
SUMMARY OF BROAD SECTOR-WISE PLP PROJECTIONS
FOR THE YEAR 2006-07

(Rs. lakh)
Sl. Financial
Sector
No. Projections
1 CROP PRODUCTION 317.95
TERM INVESTMENT FOR AGRICULTURE AND ALLIED

2 446.45
ACTIVITIES
TOTAL INVESTMENT UNDER AGRICULTURE AND

3 764.40
ALLIED ACTIVITIES (1+2)
4 NON FARM SECTOR 515.70
5 OTHER PRIORITY SECTOR 1200.15
6 TOTAL PRIORITY SECTOR (3+4+5) 2480.25
[ 9 ]
SUMMARY OF DETAILED SECTOR-WISE PLP PROJECTIONS

Name of the District : Bongaigaon
(Rs. lakh)
Sl
Sector PLP Projections
No.
1 Minor Irrigation 36.86
2 Land development 17.14
3 Farm Mechanisation 80.00
4 Plantation and Horticulture 28.98
5 Sericulture 7.40
6 Forestry and Wasteland Development 10.89
7 Dairy 126.80
8 Poultry 23.44
9 Sheep-Goatery-Piggery 80.00
10 Fisheries 22.95
11 Storage Goodman/Market Yard 10.50
Renewable source of energy and waste

12 0.45
utilization
13 Bullock & Carts 1.04
Total Term Loan 446.45
14 Crop loan 317.95
Total Agricultural Credit 764.40
15 Non- Farm Sector 515.70
16 Other Priority Sector 1200.15
Grand Total (Total Priority Sector i.e.

Agriculture + Non Farm Sector + Other 2480.25
Priority Sectors)
[ 10 ]
CHAPTER - I
INTRODUCTION
Credit Planning in India received focussed attention in development planning after

introduction of the scheme of Social Control over banks in 1967 and nationalisation of
14 major commercial banks in 1969. Adoption of area approach and introduction of
Lead Bank Scheme in the beginning of Seventies was the first attempt towards
decentralised credit planning with district as a unit of planning. Districts were
allocated to individual commercial banks which were to act as pace setters in the
designated districts in providing integrated banking facilities. Under the Lead Bank
Scheme, the designated bank was to prepare District Credit Plans (DCPs) in
consultation and coordination with other banks and Government functionaries
operating in the respective districts. Although the District Credit Plans (DCPs)
underwent several changes over the period, these plans, however, did not focus on
the potential existing at the ground level and the absorption capacity.
In the year 1988-89, NABARD took the initiative to prepare district-wise credit plan
exhibiting sector wise potential for agriculture and rural sector with a view to make
further improvement in district credit planning. These were named as Potential Linked
Credit Plans (PLPs). The basic objective of the PLP is to map the existing potentials for
development and evolve an appropriate mechanism through which such potentials could
be harnessed over a specified time frame. The PLP document attempts at making
projections of the credit requirements for different sectors in a district taking into account
the existing physical potential, availability of infrastructure, marketing support,
absorption capacity and other strengths & weaknesses of the rural credit delivery system.
These plans aim at reflecting, in a more realistic way, the micro or local needs, potentials
and linkages associated with various development agencies operating in the district. PLP,
thus, depicts the potential for harnessing human and natural resource endowments both
over a short and long term period and attempts to facilitate improving capital efficiency
while providing meaningful directions to the flow of ground level credit.
The broad strategy for formulation of PLPs envisages estimation of long term potentials
(in terms of physical units) duly phased out over annual duration in each sub sector of
agriculture and rural development taking into account the natural and human resource
endowments. The approach adopted for preparation of PLPs focuses on bottom-up
planning process. The potentials are first estimated block-wise and then aggregated to
form the PLP for the district as a whole. For the purpose of translating the potentials into
credit plans, the infrastructure requirements are identified and compared with the
currently available infrastructure. The requirement of infrastructure support is also
assessed on the basis of various developmental schemes / programmes being run or
proposed by Central Government / State Government / Local Bodies, etc. in the districts.
The past trends of investment made in district, Sub-Sectors, their relative growth rates,
capabilities and constraints in implementation, etc. were also kept in view while phasing
[ 11 ]
the identified potentials. NABARD has been constantly endeavouring to introduce

refinement in the methodology of preparing PLPs and making improvement in its
contents so that the PLP could be used as an essential support / reference document to
the District Credit Plans. For the purpose, the process has been made more consultative
and broad based for better feedback. Pre -PLP discussions are held with the nodal
departments, Govt. officials, Bankers, Non Governmental Agencies/VAs, development
agencies and all concerned. The policies, priorities and thrust areas declared by the
Govt. of India and the State Govt. are also taken into consideration.
In the Base PLPs detailed potential analysis is done once in every five years
co-terminating with the National Five Year Plans and thereafter refinements are made
every year. Base PLP projections are updated annually under Annual PLPs to bring out
the required revisions /modifications in tune with the changing times and necessities. In
the Base PLPs, first of all sector wise Long Term Potential is assessed and then compared
with the existing infrastructure to arrive at the Exploitable Potential in the next five
years. Keeping in view the availability and gaps in infrastructure and support services,
annual phasing of exploitable potential is attempted.
RBI, in its mid-term review of annual policy statement for the year 2004-05, has
dispensed with the restrictive provision of Service Area Approach (SAA) scheme.
However, the positive feature of SAA such as credit planning and monitoring of the
credit purveyance has been retained. accordingly, the allocation of villages among the
rural and semi-urban branches of banks shall not be applicable for lending, except
under Government sponsored schemes. The commercial banks and RRBs are free to lend
in any rural and semi-urban area, the borrowers have the choice of approaching any
branch for their credit requirements. The requirement of obtaining 'no due certificate'
from the service branch for lending by non-service area branch has been dispensed with.
Further, the Annual Credit Plan/District Credit Plan will be based on the Potential
Linked Plans (PLPs) prepared by NABARD.
Taking into consideration the revised guidelines issued by RBI, NABARD also changed its
methodology for preparation of PLPs. The NABARD discussed the modalities for
preparing the credit plans with select Commercial Banks to make the planning exercise
more participative ensuring active involvement of Branch Managers, Controlling Offices
and Government Departments at the district level. Taking into account the views that
emerged during the consultation, pre-PLP meetings are to be convened by LDMs during
August/September to be attended by the banks, Government agencies etc. to reflect their
views and concerns regarding credit potential (sector/activity-wise) and deliberate on
major financial and socio-economic developments in the district in the last one year and
priorities to be set out for inclusion in the PLP. PLPs, containing block-wise/activity-wise
potential, are be placed before a Special meeting of the District Consultative Committee
(DCC) for detailed discussion prior to finalizing an implementable District Credit Plan.
The Controlling Offices of Commercial Banks and Head Office of RRB and DCCB/LDB
[ 12 ]
have been advised to circulate the accepted block-wise/activity-wise potential to all their
branches for preparing their Branch Credit Plans. The branch Credit Plans are required
to be discussed and aggregated to form the Block Credit Plan in the Special Block Level
Bankers Committee (BLBC) meetings. The Block Credit Plans would be further aggregated
by the Lead District Manager to form the District Credit Plan. AAP/DCP is to be launched
by 01 April after final acceptance/approval by DCC.
With the liberalisation and globalisation of Indian Economy in general and agriculture
sector in particular, the agricultural sector needs to be more responsive and competitive
to face the external challenges. This would necessitate huge investments in
infrastructure, technology, post harvest management, research and development,
extension services, etc. Credit planning will therefore continue to play a significant role
in ensuring prioritization and making available adequate credit to various sectors of rural
economy. Towards this end, the present PLP document for the year 2006-07 will prove to
be useful to all agencies and functionaries associated with the rural development
especially to the bankers in preparing District Credit Plans by duly recognising the
potentials available in each sector of the district economy.
[ 13 ]
CHAPTER - II
I. SECTORAL REVIEW AND PROJECTIONS OF POTENTIALS
2.1 Crop Loans (ST Production and Marketing Credit)
2.1.1 Introduction
The economy of Bongaigaon district is basically agrarian in nature with about 80% of the
population dependent on agriculture. Paddy is the major crop. Other important crops
include oil seeds, pulses, cash crop like jute, vegetables etc. The agro climatic conditions of
the district are conducive for various agricultural activities. Agriculture in the district is
characterized by over dependence on rainfall, predominance of seasonal crops and
traditional methods of cultivation. However, after successful implementation of STW
programme the farmers are increasingly adopting improved agricultural practices. The
cropping intensity is 161% . The soils of the district are either alluvial or a mixture of red
and black soil. Total geographical area of the district is 251000 ha. Of which present net
cropped area is around 92680 ha. The area brought under high yielding variety seeds is
around 47090 ha. The estimated net irrigated area is 22897 ha. 2084 numbers of KCC have
been issued and disbursed an amount of Rs. 223.75 lakhs by the banks during the year
2004-05 in the district. GOI has directed banks to double the agriculture credit in three
years starting from the year 2004-05. In order to create eligibility, four schemes were
introduced covering Farmers in distress, Farmers in arrears of loan, One Time Settlement
Scheme and providing credit to farmers having loan from non institutional sources.
2.1.2 Availability and gaps in infrastructure and support services

The Agricultural Department is headed by DAO and supported by 3 SDAOs, 2
specialist under each SDAOs who in term are helped by 14 AEOs and 101 VLEWs
(Village Level Extension Workers). The Agricultural Engineering Wing is headed by 1
Assistant Engineer, 4 junior engineers, 1 foreman, 2 mechanics and 9 tractor
operators. Assam Seed Corporation is involved in supply of seeds, fertilizers,
machines, tools, equipment etc. to farmers. There are 97 registered FMC in the
district. Special programme like ICDP, OPP, Technology Mission and AACP are
under implementation in the district. The progress in the issue of KCC is very slow
with a very few KCCs have been issued by banks. There is one processing unit &
community canning and Training Center of GOA (DA) in the district. There are 13
PACS in the district. All the PACS are ceded to the branches of SCB. No financial
assistance could be availed by the PACS during the last five years due to high level of
overdues at the branch level as well as at PACS level.
The gap in infrastructure cover several areas. Lack of adequate irrigation facilities,
inadequate extension support, absence of strong viable and effective cooperative structure
and insurance coverage against natural calamities, recurrence of floods and soil erosion,
inadequate storage and marketing arrangement, absence of good banking net work with
trained and experienced manpower to provide timely credit support to farmers, lack of
Agriclinic, Agri. Business Centres and cold storage facilities etc.
[ 14 ]
However, emphasis is being made to remove the above constraints by Agriculture

Department to increase the productivity and production in the district. The General
Insurance Corporation of India has already launched the Rashtriya Krishi Bima Yojona for
popularizing the crop insurance and help the growth of crop production. The list of the
STWs beneficiaries has been prepared by DAO ( Agri. Engineering Wing ) for taking up
with banks to encourage crop loans and issue of ‘KISAN CREDIT CARDS’.
2.1.3 Assessment and Phasing of the Potential in Base PLP and Rephasing of
Potential on account of infrastructure changes for the year 2006-07
Considering the thrust given to this sector, GOI Guidelines and the past performance, the
Base PLP projections have been revised for the year 2006-2007 as under:
( Rs. lakh)
Activities BASE PLP UPDATED PLP
Phy.
Scale Fin. Bank Scale Phy. Fin. Bank
Unit Unit Unit
of fin. Outlay Loan of fin. Units Outlay Loan
s
1. Paddy ha. 0.15 300 45.00 43.39 ha. 0.13 1500 195.00 195.00
2. Wheat ha. 0.12 25 3.00 2.88 ha. 0.10 25 2.50 2.50
3.
ha. 0.10 25 2.50 2.44 ha. 0.09 25 2.25 2.25
Rapeseed/mustard
4. Jute ha. 0.11 10 1.10 1.08 ha. 0.10 50 5.00 5.00
5. Other oil seed ha. 0.11 10 1.10 1.08 ha. 0.10 10 1.00 1.00
6. Pulses ha. 0.07 10 0.70 0.66 ha. 0.06 10 0.60 0.60
7. Potato ha. 0.38 30 11.40 10.75 ha. 0.31 200 62.00 62.00
8. Vegetables ha. 0.28 40 11.20 10.41 ha. 0.23 200 46.00 46.00
9. Other/ Misc. ha. 0.14 30 4.20 4.15 ha. 0.12 30 3.60 3.60
TOTAL 480 80.20 76.84 2050 317.95 317.95
Block wise physical and financial program for the year 2006-2007 has been given in
Annexure-I
2.1.4 Review of Ground Level Credit
The details of loan disbursed by the banks for the crops loan during past seven years are
given below:
Year Amount (Rs. lakh)
1998-99 0.64
1999-00 1.54
2000-01 5.28
2001-02 28.34
2002-03 134.27
2003-04 152.47
2004-2005 267.97
However, it is estimated that an amount of Rs. 317.95 lakhs would be disbursed by bank
branches during the year 2006-07.
[ 15 ]
2.1.5 Suggested action points:
Departments
Govt. Line department to take initiative to create infrastructural facilities in the

district and support services in tune with the PLP projections.
Banks
The bankers may take a positive attitude towards the financing of crop loans.
All eligible farmers to be issued KCC by banks.
2.1.6 Other Issues
Write up on KCC and RKBY
Given the enormity of the credit requirements on one hand and the vagaries of nature on
the other, financing for agriculture has been a gigantic task for banks in India. Ensuring
timeliness and adequacy of credit to farmers, the scheme of Kisan Credit Cards has been
introduced. So far 2084 KCC were issued in the district against a potential of 5600 nos. This
card also provides insurance to the holders.
National Agriculture Insurance Scheme implemented by GOI covers all the crops grown in
the district. Accordingly, all farmers who avail crop loans from financial institutions are
compulsorily covered and is optional for non loanee farmers. The scheme provides
comprehensive risk insurance against yield losses due to natural calamities like floods,
droughts, hailstorm, hurricane, etc. The sum insured extends to the value of the threshold
yield of crop, with an option to cover up 150% of the crop on payment of extra premium .
This scheme is expected to be critical instrument of development in the field of crop
production by providing financial support to the farmers in the event of crop failure and
help maintaining flow of agricultural credit.
[ 16 ]
II. INVESTMENT CREDIT FOR AGRICULTURE AND ALLIED SECTOR

A. Investment Credit for Agriculture
2.2 Minor Irrigation (MI)
2.2.1 Introduction
Minor Irrigation (MI) covers the irrigation projects with a cultivable command area up to 2000
hectares. All ground water development falls within Minor Irrigation category. Bongaigaon
district is endowed with vast potential of surface and ground water. There is plenty of scope for
surface water irrigation by lift irrigation schemes and ground water exploitation by
constructing STWs in the district. Out of the total geographical area of 251000 hectares about
74694 hectares (30%) in the district are not suitable for intensive cultivation. The net sown area
at present is 92680 hectares, of which only 37.39% area is under irrigation. As per the latest
ground water assessment data, all the blocks in the district have been categorized as “white”
implying that there is vast untapped potential for ground water exploitation. As per the data
available with irrigation Department, the ground water in the district is suitable for
irrigation purposes. The data on block-wise long term ground water potential and the present
stage of ground water development are not available. There are 39 completed MI schemes of
which 21 schemes are functioning and 18 nos. are not functioning for various reasons.

To support the phased development of the potential, certain basic infrastructural facilities
would be necessary which are identified as follows :
A nodal agency in the district to co-ordinate the various minor irrigation

development projects and provide technical guidance about various MI structures.
A list of registered suppliers of good quality machines, tools, implements and other
inputs to be published and widely circulated.
Adequate budgetary allocation by the government for infrastructural development

and ongoing projects is essential
Revival of Nodal Agency - Assam State Minor Irrigation Development Corporation. The
Assam State Minor Irrigation Development Corporation (ASMIDC) was the major implementing
agency for commissioning the Minor Irrigation projects in the district. But due to the severe
resource crunch and heavy overdue problem, the agency has remained almost defunct since
1992-93. The Bongaigaon Irrigation Division started functioning since 1979 with its headquarters at
Bongaigaon. Presently the division is looking after the Irrigation Development works in
Bongaigaon district and part of Kokrajhar district. The division is headed by an Executive
Engineer and is assisted by three sub-divisional Engineers heading three sub-divisions
viz.—Abhayapuri, Bongaigaon and Bijni. The District Agriculture Department with its
headquarters at Bongaigaon and three sub-divisional offices at Bijni, Bongaigaon and North
Salmara has been functioning since 1991. The main objective of the Agriculture Department is to
increase crop production, educating farmers about the latest technologies in the field of
[ 17 ]
agriculture including irrigation and implementation of STW projects under NABARD’s RIDF and
World Bank’s ARIASP projects. Bongaigaon Electrical Division is one of the divisions of ASEB. In
1984, Bongaigaon REC Division was created by ASEB for execution of Rural Electrification works.
In 1993, the division was renamed as Bongaigaon Electrical Division-II with its area of operation
limited to Bongaigaon District and part of Kokrajhar District and was implementing schemes for
rural electrification which is one of the prime requisite for MI projects. The agencies viz. Assam
Seed Corporation, STATEFED, HFC and good number of private agencies are involved in supply
of necessary inputs and maintenance services for MI development in the district.
The Bongaigaon Irrigation Division has been facing difficulties in implementing their
projects mainly due to insurgency problems over the past two years. The financial
crisis of the department, shortage of power supply, lack of proper training to farmers
in HYV cultivation etc. are certain other gaps which need to be bridged.
It was stated that the District Agriculture Department is facing acute shortage of
transportation facilities like jeeps, etc. The ASEB is also facing major problems like
financial constraints, manpower shortage and inadequate supply of materials. Poor
communication also appears to be an important infrastructural gap.
The Abhayapuri E & D subdivision (under Kokrajhar E & D division) is presently headed
by Assistant Executive Engineer with a limited staff. Since the district is flood prone area,
a full-fledged Flood Control Division may be required to be set up immediately at
Bongaigaon. The recurrence of flood and soil erosion by AI river needs immediate attention
by the department. The suppliers of various inputs are presently confined in the district
head quarter. Therefore, there is an urgent need for such units in the Sub-Division and at
block level so as to ensure timely and adequate supply of various inputs to the farmers at a
reasonable cost. Due to lack of state Govt. initiatives, the progress in exploitation of
surface and under ground water was very slow.
Considering the thrust given to this sector and the past performance, the revised
projections in the base PLP has been made for the year 2006-2007 as below :
(Rs. lakh)
Activity (All activities BASE PLP UPDATED PLP
having potential may be Unit Phy. Fin. Bank Unit Phy. Fin. Bank
furnished) Cost Units Outlay Loan Cost Units Outlay Loan
A. STW 0.23 200 46.00 23.00 0.27 250 67.50 33.75
B. LLP/ 0.16 150 24.00 12.00 0.17 10 1.73 0.86
C. Pump set 5 HP 0.15 30 4.50 2.25
TOTAL 0.74 370 70.00 35.00 290 73.73 36.86
@ 50% of the TFO
Block-wise physical and financial programme for the year 2006-2007 has been given in the
Annexure I.
[ 18 ]
Though the district has a good potential for implementing Minor Irrigation Programmes
the actual disbursement made by the banks is very dismal. The details of the ground level
disbursement made by the bank under this sector during last seven year are given below :
Year Amount (Rs. lakh)

1998-1999 2.71
1999-2000 2.94
2000-2001 2.58
2001-2002 3.21
2002-2003 Nil
2003-2004 Nil
2004-2005 Nil
2.2.5 Suggested Action Points:
Department
The Minor Irrigation Department in the district to increase infrastructure under MI.
Immediate need for assessing block wise ground water potential available in the
district.
To ensure upkeep and maintenance of the Minor Irrigation Structures like DTWs,
STWs, LLPs Dug Wells etc. and also revive the nonfunctional structures wherever
possible.
To formulate Bye- laws governing FMCs & give them legal status.
To formulate a scheme for surface irrigation like LLP etc.
To concentrate on development of infrastructure and extension services relating to

introduction of new cropping systems with HYV/ Hybrid varieties, efficient water
utilisation, intensive mixed farming system, backward and forward linkages for
SKY (NABARD funded STW programme) & ARIASP projects which are in various
stages of implementation in the State as well as in the district and will create a
future irrigation potential.
Priority need to be given for completion of ongoing projects and improving

irrigation efficiency with institutional credit support.
Keeping in view the abundance of surface water and viability of the MI

programme, bankers should take active participation for increasing the
credit flow.
To extend loan facility to needy and genuine farmers for installation of

STWs/LLPs , Pumpset 5 HP under ‘ On Farm Water Management’ a centrally
sponsored programme. Under this, the farmers are eligible for 30% subsidy.
[ 19 ]
2.3 Land Development

2.3.1 Introduction
Out of a total geographical area of 251000 ha, the net cropped area is 92680 ha. The topography
of the district represents mostly plain lands except some small portions of isolated hills in
Bijni sub-division bordering Bhutan. The district is drained by the Brahmaputra on the south
and two of its major tributaries viz. Ai & Manas flowing from the north to south. About 72%
of normal rainfall is received during May to August. Heavy rainfall coupled with high
intensity of wind causes severe soil erosion, particularly on upper reach and in flood prone
areas. Sheet Gully erosion, and riverbank erosion, are the main types of erosion commonly
seen in the district. It may be observed that there is vast scope for land development
activities, water management and soil conservation in the district. The total estimated
potential area for land development activities is 15700 hectares in the district.

In order to ensure the planned development of the above potentials certain basic
infrastructures are required which are as follows :
A nodal agency with full-fledged division of soil conservation at the district level to
initiate various land development works.
Adequate availability of various types of machines, tools and implements required

for L.D. and water management.
Effective training programmes, demonstration and other extension facilities.
Reorientation of the bankers outlook and approach towards L.D which are basic
needs of sustainable agricultural development.
Goalpara Soil Conservation Division with its head quarters at Kokrajhar is the nodal agency to
oversee the soil conservation and water management works in the district. There is only one
range office in the Bongaigaon district which was under the jurisdiction of Goalpara division .
The range offices is headed by Soil Conservation Ranger who is assisted by Soil Conservation
Overseer, demonstrator, etc. Although the division is equipped with both technical and
non-technical staff, to provide necessary support and guidance to farmers it is necessary to set
up separate division with head quarter at Bongaigaon keeping in view the long-term needs.
Agriculture Engineering wing of Agriculture Department is also associated with
implementation of soil and water conservation schemes like, watershed development, drainage
etc. Flood Control department also plays its role in soil and water conservation in the district.
The NWDPRA project is being implemented in the following areas by Agriculture

Department in the district with 100% budgetary assistance from the GoI .
Kalabari Thorthori project (ext)

Ghilaguri Tamranga Beel project (ext)
Lungai (n)
Chengmari
Garugaon (n)
[ 20 ]
Ballamguri (ext)
Barigara (n)
The implementing agencies are :
Appropriate Technology Mission.

Abhayapuri Sanskritik Parishad
Natures Foster
Sidli Biswajyoti club has withdrawn from the implementing agency. The progress of
the work under NWDPRA Schemes is not satisfactory.
The projections under various Land Development activities made in the Base PLP for the
year 2006-07 have been revised downwards in view of slow pace of infrastructure
development seen over previous year . The details are as under :
(Rs. lakh)
Activity (All BASE PLP UPDATED PLP
activities having
Unit Phy. Fin. Bank Unit Phy. Fin. Bank
potential may be Unit
Cost Unit Outlay Loan Cost Unit Outlay Loan
furnished)
Land development for
ha. 0.21 30 6.30 5.67 ha. 0.25 5 1.25 1.12
field crops
Watershed
management for ha. 0.18 50 9.00 8.10 ha. 0.18 5 0.90 0.72
rainfed farming
Farm ponds/ Water
ha. 0.64 20 13.00 11.70 ha. 0.64 10 6.40 5.76
harvesting structure
Vermi-culture/
improved composed ha 0.07 35 2.45 2.21 ha 0.08 20 1.60 1.44
making
Rain water harvesting
. 0.30 54 16.20 8.10
scheme for SC/ST
TOTAL 0.13 165 30.75 27.68 94 26.35 17.14
Bank loan @ 90% of TFO/RWHS 50% of TFO
Annexure I.
2.3.4 Review of Ground Level Credit:

As the LBR system has not been stabilized, the break up of actual physical and financial
achievement for the last 3 to 5 years are not readily available. However as per feedback, no
significant bank credit was made available and most of the farmers in the district meet the
expenses towards land development works from their own resources or provided under various
Govt. programmes. The subsidy extended @ 100% by the department is also affecting the credit
[ 21 ]
flow to this sector. The scope for bank credit, therefore, is not high for the sector. It is estimated
that banks would be able to disburse about Rs. 17.14 lakhs during the year 2006-2007.
2.3.5 Suggested Action Points

Departments
State government to arrange for allotment of permanent patta and individual
ownership of land.
Generate awareness among farmers about availability of bank finance for land
development activities.
Banks
Create awareness among bankers, farmers and government officials about the
different bankable schemes under land development activities.
2.3.6 Other issues

Organic Manure and Bio-degradable organic wastes
Indiscriminate and unscientific pattern of use of chemical fertilizers had resulted in fast
depletion of soil fertility thereby making them unfit for cultivation in the long run and fall
in productivity of soils. In order to attain sustainability in production, there is a need to
increase the usage of organic manure, FYM etc., to rejuvenate the soils and bring them
back to their natural health. In view of this there is an urgent need to enhance the
production and supply of organic manures and compost through NADEP method of
composting and vermiculture etc.
The Bio- degradable waste from agriculture activities and Municipalities can be used for
producing manure. The Agro and Municipal waste from vegetable and fruit markets will be
available for converting the same into organic manure. A people-driven programme aiming
at encouraging segregation of organic and inorganic garbage at source is to be launched in
the district. The segregated garbage is to be brought to NADEP and vermi compost units
where organic garbage would be recycled and manure obtained thereof could be sold.
Vermi Culture
Production of vermi casting through scientific rearing of earth worm is to be encouraged in the
district. The vermi casting is found to be a good source for sustainable agriculture. Due to its
unique characteristics of supplementing humus, plant nutrients, vitamins, enzymes, antibiotic
and plant growth hormones, vermi castings have the potential of becoming an effective and
commercial bio-fertilizer. The important benefits of using vermi castings in the field is for better
crop yield, effective environment protection, optimum utilisation of bio-degradable wastes,
reduction in the cost of farm inputs such as water, fertilizers, pesticides etc.
Compost making : The compost making units under NADEP system, which is cost
effective, employment generating, pollution free and involving very simple technology,
may also be encouraged in the district. It works on aerobic bio-degradation process which
requires 100 to 120 days for compost making. The efficient use of dung and agro-wastes in
this process makes it possible to produce 20 kgs of enriched compost from one kg of dung.
[ 22 ]
2.4 Farm Mechanisation
2.4.1 Introduction
In view of acute shortage of human and animal labour for farm operations combined with
management problems, the Farm Mechanization appears to be the solution for increasing
the production and productivity of various farm products. However in the district, 47% of
the farmers have land holding of less than 2 ha (of which 44% have less than 1 ha) which is
again fragmented into further small pieces. Therefore, large-scale mechanization with big
machinery is difficult unless State Govt. takes up land consolidation and promote
Cooperative Farming. Therefore, financing of small tractors, power tillers, improved
implements etc. should be given priority. Successful implementation of STW programme
with NABARD's RIDF assistance has encouraged the state Govt. to identify tractors and
power tillers as the thrust area to consolidate the benefits of the development of irrigation.
Taking into account the number of units already existing in the district and also the fact that
a substantial number of farmers would still continue with their traditional farming practices,
the total long term potential of tractors and power tillers have estimated as below.
2.4.2 Availability and Gaps in Infrastructure and Support Services
The Basic infrastructure required for phased development in the district is as follows :
Availability of genuine machineries and accessories.
Repairing and maintenance facilities.
Training facilities for handling modern machineries.
Adequate flood control and soil conservation measures.
Adequate network for providing credit support and a nodal agency to oversee the
entire farm mechanization work.
The Agriculture extension wing of the department of agriculture is the nodal agency
looking after various farm mechanization works in the district. The DRDA is the other
important agency promoting farm mechanization. Assam Agro. Industries Development
Corporation has sales outlet at Bongaigaon and supplies power tillers, agricultural
implements like MB plough, paddy weeders, sheer points, pesticides, fertilizers etc. to
cultivators. The banking sector with the network of 41 branches in the district is providing
necessary credit support for various farm mechanization activities.
The most important infrastructural gap is the lack of adequate irrigation facilities. The
irrigation department could not initiate the projects due to lack of fund constraints. The
agricultural department does not have adequate number of Subject Matter Specialist in
Agriculture Engineering. After Sales services of various farm machineries like tractors,
power tillers, etc. need improvement. Cold storage facilities is needed in the district and
the marketing facilities are not adequate.
[ 23 ]
Considering the importance of the sector and the past performance the Base PLP
projections have been revised as under for the year 2006-2007.
(Rs. lakh)
Activity BASE PLP UPDATED PLP
Cost Units Outlay Loan Cost Units Outlay Loan
Tractors 3.50 10 35.00 28.00 3.50 25 87.50 70.00
Power tiller 1.25 150 187.50 150.00 1.25 10 12.50 10.00
Total 170 222.00 178.00 35 100.00 80.00

Bank Loan @ 80% of TFO
Annexure I.
The ground level disbursements taken place during last 6 years are as under :
(Rs lakh)
2002-2003 5.67
2003-2004 9.00
2004-2005 24.99
It may be seen from the above that the disbursement under the sector show mixed trend
over the years. However, in view of successful implements of STW project and OFWM
scheme in the district, the credit flow would increase in the future. It is estimated that Rs.
80.00 lakh would be disbursed during the year 2006-2007.
Banks
Coordination with Agriculture Department and FMCs to identify the progressive

entrepreneurs for financing these activities.
Transparency in selection of borrowers
[ 24 ]
2.5 Plantation Horticulture

2.5.1 Introduction
The district of Bongaigaon is under the North East Sub Tropical horticulture zone of India.
Considering the immense potential available, Government of Assam has drawn several
programmes for comprehensive development of plantation & horticulture commercially.
The district has favourable agro climatic conditions for the development of various
plantation and horticulture crops. However, the horticulture & plantation crops are
generally not grown on commercial scale in the district. Approximately 104454 farmers
are involved in growing horticultural crops. The Rubber Board is making efforts to bring
adequate area under rubber plantations. Coffee is also identified for plantation in upland
and forest areas. There is no Govt. Assisted Rubber Plantation in the district. Adequate
quantity of planting material is not available in the district. Banana plantation is also
picking up in the district. There is a scope for plantation of Medicinal and Aromatic plants .
The Govt. of India has notified Medicinal and Aromatic Plants promotion as a thrust area
and set up National Medicinal Plant Board (NMPB) at National level and State Medicinal
Plants Boards (SMPB) at State level. Area under plantation and Horticultural crops
productivity and production in the district in the year 2004--2005 is indicated below :
Sl. Productivity
Name of crop Area (ha) Production M.T
No. Kg/ ha
1 Assam lemon 447 3600 1609
2 Guava 101 956 96
3 Litchi 490 7450 3651
4 Jackfruit 224 10515 227
5 Mango 173 5247 908
6 Orange 171 8370 2268
7 Pineapple 300 18531 5559
8 Ginger 545 6125 3338
9 Coriander 322 640 206
10 Black pepper 101 1825 184
11 Garlic 314 1510 474
12 Chili 885 653 578
13 K/ vegetable 2700 14025 37867
14 R/ vegetable 6500 13810 89765
15 Coconut 718 80 Nuts 1.033 lakhs nuts
16 Arecanut 3385 4 Pons 180.75 pons
17 Aonla 60 44580 2675
18 Khilikha 55 5620 309
19 Bhomora 2 3720 7
20 Banana 958 12164 11653
21 Papaya 268 15300 4100
22 Medicinal and Aromatic plant 120 4921 591
[ 25 ]
2.5.2. Available and Gaps in infrastructure and support service
The Agriculture Department is the nodal agency looking after the various
horticulture programmes in the district.
Assam Agro Industries Development Corporation, STATEFED, HFC, etc. are

involved in the supply of inputs.
Rubber Board has an office at Bongaigaon. Weekly markets are in operation in the
district. Rubber processing unit at Khagarpur has already been started production
& functioning under the financial assistance of SIRD.
Horticulture progeny orchards located at Boitamari (10 ha.) and Kasilotra (5 ha.)
have been given on private lease for a period of 5 years. This is expected to increase
the supply of planting material.
GREENWAY BIOTEK Horticulture Centre have been inaugurated recently at Sidli

under Chirang district. They are basically production cum supplying tissue
culture product of Banana .
To achieve the phased development as envisaged above, certain basic infrastructural

facilities would be necessary viz.
A full fledged nodal agency at the district Head Quarter to coordinate the plantation
and horticulture development.
Availability of good quality of seed and planting material .
Training facilities for the entrepreneur/ farmers.
Soil testing laboratories and irrigation facilities.
Cold storage and storage godowns.
Marketing arrangement, transporting facilities and good number of food processing

units, etc.
Gap in infrastructure : Number of progeny orchards and nurseries are

inadequate in the district to meet the requirement at present. Lack of cold storage,
market yards and organized marketing system, processing units, training and
demonstration plots to educate farmers, absence of ownership of the land, lack of
awareness of scientific cultivation practices, lack of credit facilities and general
apathy of Bankers to provide credit support, non existence of large scale
processing facilities, non- availability of important and vital infrastructures
facilities, lack of awareness of details of programmes for Government employees,
bankers, extension workers, are the major infrastructure gaps in the district.
[ 26 ]
Considering the trend in ground level credit flow and the recent development in the
infrastructure, the Base PLP projections for the year 2006-2007 have been revised as follows :
(Rs. lakh)
having potential may Unit Phy. Fin. Bank Unit Phy. Fin. Bank
be furnished) Unit
1. Citrus ha. 0.30 10 3.00 2.55 0.30 7 2.10 1.79
2. Pineapple ha. 0.60 10 6.00 5.10 0.60 7 4.20 3.57
3. Pepper ha. 0.43 10 4.30 3.66 0.43 7 3.01 2.59
4. Coconut ha. 0.54 10 5.40 4.59 0.54 7 3.78 3.21
5. Arecanut ha. 0.65 60 39.00 33.15 0.65 7 4.55 3.87
6. Rubber ha. 0.47 3 1.41 1.20 0.47 10 4.70 4.00
7. Battlevine ha. 0.53 1 0.53 0.45 0.53 7 3.71 3.15
8. Guava ha. 0.40 20 8.00 6.80 0.40 5 2.00 1.70
9. Medicinal and ha 0.30 20 6.00 5.10
Aromatic plants
TOTAL 124 67.64 57.50 77 34.05 28.98
Block-wise physical and financial program for the year 2006-2007 has been given in the
Annexure I.
2.5.4. Review of Ground Level Credit:

During the past few years no disbursement was made in this sector by the banks. However,
the ground level credit during the year 2004- 05 was Rs. 24.16 lakhs.

Departments
Better co-ordination between State Govt. Department and financial institutions in
implementation of schemes.
Educating the farmers by trained personnel and technical experts.
Banks
To provide loan to good farmers and utilise the services of good FMCs for
facilitating credit flow.
2.5.6 Other issues

The Agriculture Department/NABARD has taken initiative for implementation of
innovative schemes in post harvest technology/export- oriented projects like
Cultivation of medicinal and Aromatic plants.

Cultivation of Patchouli,
Horticulture Mini Mission.
[ 27 ]
SCHEME FOR AGRI EXPORT ZONES (AEZ)
With a view to boosting agricultural exports from the country, Government of India has
notified 49 zones for creation of AEZ. NABARD has also identified AEZ as a thrust area for
extending necessary support through refinance and other interventions. Accordingly,
NABARD has decided to provide refinance to Commercial Banks, RRBs and State
Co-operative Banks for financing to farmers for cultivation production of identified
crops/commodities in AEZ under contract farming.
The AEZs will be concerned with A to Z of the agri-exports. The emphasis will be on
partnership among various agencies/systems and convergence of interventions of various
agencies like APEDA, Ministry of Food Processing Industries, National Horticulture Board
etc. The focus will be on increasing exports of identified commodities with economies of
scale for the benefit of all concerned. In AEZ, a package is offered to facilitate exports and
induce private sector investment. APEDA will be the nodal agency for notifying the zones
in various states as AEZ.
Refinance from NABARD will be available to Commercial Banks, RRBs, SCB and SCARDBs
under schematic lending for financing farmers under contract farming mode either
directly or through processor/exporter. Refinance will be at 100% of the eligible bank loan.
All the district in Assam are covered under Agri Export Zone.
[ 28 ]
2.6 Sericulture
2.6.1. Introduction
Traditionally, Sericulture is one of the most important Agro based cottage industry in the State &
employment generating activities in Bongaigaon district. Climatic conditions are favourable for
cultivation of crops like Eri, Muga and Mulberry for silk worms rearing. The activity is specially
practiced by the local people including SC/ST families in the district. Most of these activities except
for growing of plantation and rearing are basically non-farm activities and is dealt separately
under the relevant section. The farm sector activities associated with sericulture are covered in this
section. For taking up large- scale exploitation of this crop, important food plants like castor,
kesseru, som and soalu have to be grown. The production and area of plantation of Sericulture in
the district is gradually improving. The area of plantation of Sericulture in the district is as under:
Area of plantation
Sector Private Government
Eri 14.1 ha 150 ha
Muga 18.56 ha 107 ha
Mulberry (pat) 91.02 ha 110 ha
2.6.2 Availability and gaps in infrastructure and support service
To achieve a systematic development of sericulture the infrastructure requirements identified are:
Sericulture Office for identification of suitable area and beneficiaries.
Development of nurseries for adequate supply of quality planting material.
Establishment of Eri Concentration in the district for seed production programme to

supply seeds to village rearers as the district is a predominantly Eri producing area.
Considering the increasing demand for the indigenous silk and the importance given by the
department it is anticipated that the sector would gain importance in future and the
institutional credit flow would increase. Considering the trend of the demand, the Base
PLP projection for the year 2006-2007 has been revised as follows :
( Rs. lakh)
activities having
potential may be Unit Unit
furnished)
1. Sericulture - 1 0.10 10 1.00 0.85 1 0.10 10 1.00 0.85
Mulberry
2. Sericulture - 1 0.40 10 4.00 3.40 1 0.40 10 4.00 3.40
Muga
3. Sericulture - Eri 1 0.37 10 3.70 3.15 1 0.37 10 3.70 3.15
TOTAL 30 8.70 7.40 30 8.70 7.40
Bank loan @ 85% of the financial outlay
[ 29 ]
Annexure - I.
2.6.4. Review of Ground Level Credit:
The separate data of ground level disbursement under the sector is not available. However,
keeping in view the importance of credit for the development of the activity, it is estimated
that an amount of Rs. 7.40 lakh would be disbursed during the year 2006-2007.
Departments
Line Department to concentrate on infrastructure and extension services to

beneficiaries.
Train the identified farmers in sericulture activities and link them to bank credit
through Govt. sponsored programmes.
Banks
To extend loan facility to the needy and genuine beneficiaries for setting up of
Farm and Non-Farm activities in the district, under Sericulture.
[ 30 ]
2.7 Forestry and Wasteland Development

2.7.1. Introduction
As per the Forest Survey of India, State of Forest Report (SFR) 2001, the forest cover in the
district was 55809 ha. forming about 22.23% of the total geographical area. Due to unabated
deforestation and encroachment, the area under forest is dwindling very fast . The district
has vast wastelands both under Govt. and private ownership which are mostly not useful
for agriculture. The socio-economic conditions of the rural people in Bongaigaon district is
mostly dependent on forest for various day to day requirements. Due to over exploitation,
the existing forest cover has deteriorated to a great extent. Therefore, there is a need for
massive afforestation & wasteland development programme through Agro Forestry and
Farm Forestry for restoring both ecology and economy.
The Agro – climatic condition of the district is found to be suitable for development of
forestry sector. In view of the local demand and commercial importance, forestry
development on the uncultivated farmlands, fallow lands, and community lands, etc. needs
to be considered on a priority basis for Bamboo and Jatropha plantation .
2.7.2. Availability and Gaps in infrastructure and support services

The district has two forest divisions viz. Ai valley forest division and Bongaigaon forest
division. The division of social forestry with headquarters at Bongaigaon is looked after by
DFO (Social Forestry), with range office at Bijni, Abhayapuri and Bongaigaon and head
office at Manikpur , Kabaitary and Nakkati. Besides there are small plantation centers at
Majgaon and Boitamari. They are implementing various schemes like social forestry,
general/ tribal sub plan, area oriented fuel and fodder project and decentralized people’s
nursery. The northern part of district fall under Manas Reserve Forest. Sal, Khair,
Shissoo, Acacia, Koroi, etc. are the popular tree species found in the district. The district
had one paper mill viz., Ashok Paper Mills at Jogighopa. The mill was closed for quite a
long time but now the unit has been taken over by Senko Group for revival.
Though number of good developmental agencies are available there are very less functional
co-ordination between them. Involvement of local people in various schemes is an
important missing link . The Joint Forest management (JFM) with people’s participation
needs to be attempted with legal backup from Govt. of Assam for development and
maintenance of forest. Bankers need to encourage financing in the afforestation on private
lands and include it under SAP.
For phased development of forestry sector, the infrastructural facilities required are :
Nodal Department / Agency’s involvement in identification of suitable area,

beneficiary, coordination with financial credit institutions and technical guidance
to farmers etc.
Opening of nurseries for adequate supply of quality seeds, planting material.
Availability of inputs like fertilizer, pesticides , insecticides, tools and implements.
[ 31 ]
Based on the trend of credit flow in the district the Base PLP projections have been
revised for the year 2006-07 as follows:
(Rs. lakh)
BASE PLP UPDATED PLP
Activity Unit Unit Phy. Fin. Bank Unit Phy. Fin. Bank
(ha) Cost Units Outlay Loan Cost Units Outlay Loan
Farm forestry plantation ha 0.36 35 12.60 10.08 0.36 7 2.52 2.01
Wasteland development ha 0.36 45 16.20 12.96 0.36 5 1.80 1.44
Biodiesel and Jatropha ha - - - - 0.30 20 6.00 4.80
Bamboo Plantation Acre - - - - 0.11 30 3.30 2.64
Total 28.80 23.04 13.62 10.89
Bank loan @ 80% of the TFO
Block-wise physical and financial program for the year 2006-2007 has been given in the
Annexure I.
2.7.4 Review of Ground Level Credit:

Since LBR system is still not stabilized ,specific data on credit flow under this sector is not
readily available. As per information available there has not been significant credit flow to
this sector for the last few years. However, it is estimated that an amount of Rs. 10.89 lakh
would be disbursed during the year 2006-07.

Departments
Agriculture Department in co-ordination with other line Department to identify
compact areas and prepare location specific schemes with suitable tree species.
Involvement of communities and good SHGs in social forestry may be explored.
Banks
To come forward to encourage the farmers to take up activity with bank credit.
Prepare bankable/model schemes and motivate farmers to take up forestry
activities like Bamboo and Jatropha plantation.
Bamboo Plantation & Development :

Bamboos being the versatile perennial grass species are distributed in a wide range of
agro-climatic and soil conditions. Bamboos, due to their faster growth and horizontal root
and rhizome network conserve the top soil and moisture and considered as the efficient soil
binder. With increasing wastelands in forests and non forest areas, bamboos have been
considered as the effective tool to cover the wastelands under vegetation cover. There are
more than 1500 recorded uses of bamboos and it support the rural and urban economy and
ecology to a great extent. Apart from these industrial and utilitarian values, they support the
agriculture, fisheries, sericulture, animal husbandry and other allied sectors. Meanwhile
[ 32 ]
they are well acceptable by the society because of their multifarious uses and knowledge of
the their propagation and regeneration. The Bamboos therefore considered by GOI as a
developmental tool and a ‘National Mission on Bamboo Technology and Trade’ has been
launched with the aim to generate employment and income opportunities and to ensure
ecological security. GOI has envisaged to cover 2 million hectares of Bamboo plantation in
forest and non-forest areas in X five year plan and to expand it in future also. To augment the
financial resource for such a programme, it is therefore necessary to develop a Public Private
Partnership (PPP) and provide the credit support for Bamboo plantations. The plantation
models may be developed as farm forestry, agro-forestry, boundary plantation and strip
plantation. As the Bamboo nurseries will be necessary to feed the plantations they may also
be supported through credit support individually and as group activities as well.
Jatropha ( family : Euphorbiaceae) :
Jatropha curcas is a wild growing hardy plant well suited for cultivation in harsh climate
including wasteland. It can be easily propagated from seeds as well as through vegetative
propagation. Jatropha can also be profitably grown as a perennial non-edible oil crop on
irrigated and partially irrigated lands. The rate of success of plantation is much better with
polypot seedlings than direct sowing or cuttings. For procuring polypot seedlings either a
nursery may be established or seedlings may be obtained from nursery raised by Forest
Department/Forest Development Corporation or kissan nurseries. It is desirable to obtain
clonally propagated planting stocks, if available. A spacing of 2mx2m will enable better
growth of the canopy to produce more seeds. Application of FYM & some doses of fertiliser
will boost the growth of the plants particularly in wastelands where soil nutrients are
almost in depleting state. The main objective of Jatropha plantation is to produce seeds,
and therefore, artificial irrigation during dry period as well as flowering and fruiting time,
upto 6th year will undoubtedly boost the growth of the plants and seed production as well.
Around 200 liters of bio-diesel can be procured from 10 quintal of Jatropha seeds.
Cost of cultivation upto 6th year is around Rs.39,000/- based on a labour rate of Rs.56/- per
manday. The returns are expected to start from 2nd year onwards stabilising by 7th year at
Rs.24,000/- per hectare. A flexible repayment schedule shows that by 11th year entire bank
loan with interest can be repaid with half of income generated, although the plantation will
generate sufficient income till 30 years. IRR of such partially irrigated Jatropha plantations
is 30.39%. These parameters have indicated beyond doubt that, the Jatropha plantations
are both technically feasible and financially viable and bankable too.
A few companies viz. Godrej and Hindusthan Levers have shown interest to purchase the
seeds. Besides, the Indian Railway has guaranteed to procure any quantum of Jatropha oil
for their own use. GoI is giving due importance to Jatropha cultivation in a big way
especially to counter the steep hike in petrol and diesel prices. The non-edible oil is in fact a
substitute to diesel and a few companies have initiated trial plantations including setting
up of extraction and emulsification of Jatropha oil for bio-diesel production.
[ 33 ]
B. INVESTMENT CREDIT FOR ALLIED ACTIVITIES
2.8 Animal Husbandry - Dairy Development
2.8.1 Introduction
Animal Husbandry is an important allied sector in the State as well as in the district. The
sector is characterised by a large population of non descript animal/desi birds with low per
capita availability of eggs/year. Among the animal husbandry activities, Dairy, Piggery,
Poultry and Goatery are the important sub-sectors. The animal husbandry and veterinary
department is the nodal department in the district overseeing implementation of various
programmes and extension services. As per the livestock census (2003), the cattle and
buffalo population is as under:
Indigenous Cattle Crossbreed Cattle Buffaloes
Milch animal 167,492 8,876 3,282

Total cattle population in the district 325,260 12,533 6,278
Total as % of state cattle/Buffalo 4.8% 3.84% 0.86 %
Based on the livestock data furnished by Animal Husbandry Department, Bongaigaon, the
quality of CB Cows, local cows and buffaloes available for bank finance is inadequate
within the district. The estimated milk production in the district for the year 2004-05 was
48.000 tonnes as against the demand of 148.80 tonnes. The per capita availability in
comparison to State figures is below in the district.
On the basis of the total population of Livestock in the district there should be around 50
veterinary dispensaries/hospitals all over the district headed by qualified doctors whereas
there are only 15 veterinary dispensaries. As against 50 artificial insemination centers
required, there are only seven insemination centers in the district. There are 117
Govt./Pvt. Piggery unit, 66 Dairy farm, 51 broiler farm, 1 goatery farm, 1 poultry layer , 23
duckery farm but no slaughter houses in the district. Kajoligaon, Bijni, Abhayapuri,
Kabaitari and Dhantola are the 5 main livestock markets in the district. The paucity of
government budgetary fund may be considered as one of the major constraints in the
process of dairy development in the district. Tribal co-operative farm and allied industries
registered under Co-operative Society Act. has been functioning in the district covering 200
villages in an area of 100 sq.kms. There are 2 functional cooperative milk societies, 15
dispensary , 15 first aid centres, 9 milk routes but there are no chilling and packing
facilities in the district. The staff in the dairy Development Department is inadequate .
Improved extension services are needed for the development of these sectors.
[ 34 ]
The department is headed by District Animal Husbandry and Veterinary officer. The
Veterinary Department provides the following services viz. – vaccination, castration of
Scrub bulls, veterinary extension and education on fodder development, cattle feed and
livestock management. The District Rural Development Agency (DRDA) also plays vital
role in identifying interested farmers and providing credit linked Government subsidy to
procure dairy animals.
In addition to quality milch animals there are certain other factors which are important for
successful exploitation of the potential, as envisaged below.
Availability of adequate green and dry fodder, concentrated feed, water, etc.
Suitable space for cattle housing.
Availability of facilities for animal breeding, medicines and veterinary aid centers.
Training facilities for dairy farmers/entrepreneurs and adequate marketing and

transport facilities.
Chilling units and milk processing plants.
Suitable banking network to provide necessary credit support.
Potential on account of infrastructure changes for the year 2006-2007.
The credit flow to this sector during the past few years under the SAP indicated positive
trend. Based on the performance of the ground level credit flow, the Base PLP projections
have been revised for the year 2006-2007 as under :
( Rs. lakh)
BASE PLP UPDATED PLP
Activity Unit Phy. Fin. Bank Unit Phy. Fin. Bank
Unit
1. CB cows with shed-
2 animal unit of 6-7 No. 0.30 150 45.00 36.00 0.35 350 122.50 98.00
LPD//animal
2. Cows-local
(without shed) with
an average milk No. 0.11 525 57.75 46.20 0.11 200 22.00 17.60
yield of 3 LPD/animal
(2 animal unit)
3. Graded Mura
Buffaloes 2 animal
unit with shed with No. 0.27 200 54.00 43.20 0.28 50 14.00 11.20
an average milk yield
of 4 LPD/animal
TOTAL 875 156.75 125.40 600 158.50 126.80
Block-wise physical and financial programme for the year 2006-07 is given in Annexure I.
[ 35 ]
2.8.4. Review of Ground Level Credit
The details of ground level credit flow during the last 5 years is given in the following table:
Year Disbursement
2000-2001 32.99
2001-2002 9.56
2002-2003 19.66
2003-2004 41.96
2004-2005 159.72
Departments
The state Govt. should take necessary strategies for improvement of infrastructure.
The Veterinary dispensaries in the block level should be provided with all
facilities.
The breeding infrastructure should be provided to dairy farmers.
Setting up of feed mills and fodder cultivation in the district.
Assam Agricultural Competitiveness Projects (AACP) may also be brought under

the Animal Husbandry and Veterinary Department for strengthening the
veterinary infrastructure.
Animal Husbandry & Veterinary Department can also select good borrower for
establishing dairy and poultry units under Venture Capital Fund of NABARD.
[ 36 ]
2.9 Poultry
2.9.1 Introduction
Poultry eggs and meat are the important sources of high quality proteins to balance the diet
of common people. Poultry farming especially Broiler and Layer farming can provide
gainful employment, if done on a commercial scale, to harness the tremendous market
potential available in the district.
Poultry is still taken up as a traditional backyard activity on a small scale and

commercialization is yet to take place in the district. With the increasing demand for
poultry meat and eggs, there is a good scope for commercialisation of the activity in future.
Duckery is popular as an integrated component among the rural masses. Since the
commercial farms are very few in the district there is a substantial scope for development
of this sector through bank credit.
According to the data available from District Animal Husbandry & veterinary office as per
2003 census , the total population of poultry birds and ducks in the district are as under :
Sl. Total Of which (Desi)

Types of birds
No Population improved species Hens and Ducks
1 Poultry 1693582 592754 1100828
3 Ducks 670936 402562 268374
TOTAL 2364518 995316 1369202
2.9.2 Availability and gaps in infrastructure and support services :
This has been dealt in detail under Dairy sector (para 2.8.2)
There is no hatchery and poultry-breeding farm in the district for supply of day old
chicks. The day old chicks are supplied from the neighbouring states like West
Bengal.
There is no availability of quality feed, medicines, health care units etc.
No organized marketing arrangement for poultry meat and eggs exists in the
district.
Recently M/S Arambagh Hatcheries (P) Ltd. and M/S Poultry Care for Cobb chicks
have opened outlets for supply of broiler chicks procured from Siliguri. The units are
also supplying broiler feed. The supply of day old chicks could also be ensured from
hatchery unit located at Guwahati. One poultry hatchery unit established at
Abhayapuri as per extension unit of SIRD, Abhayapuri. The scope for broiler sector is
showing positive trends.
Considering the trend and the ground level credit flow during the past few years ,the
Base PLP projections were revised. The details are given in the following table :
[ 37 ]

Poultry layer (500 birds unit) 1.22 50 61.00 59.31 1.27 10 12.70 10.16
Poultry broiler (500 birds) 0.65 100 65.00 63.19 0.68 20 13.60 10.88
Ducks rearing (28+4 birds) 0.06 100 5.70 5.44 0.06 50 3.00 2.40
TOTAL 250 131.70 127.94 80 29.30 23.44
Annexure I.
2.9.4 Review of ground level credit
On review of ground level credit , it is estimated that an amount of Rs. 23.44 lakh
would be disbursed by banks during the year 2006-07.
The details of the ground level credit flow to the sector during the last five years have been
indicated below:
Year Disbursement
2000-2001 7.93
2001-2002 3.97
2002-2003 0.90
2003-2004 2.03
2004-2005 3.95
2.9.5 Suggested action points
Department
Information desk at the district veterinary office is needed to disseminate

information about the potential of poultry activity among the interested parties.
The initiatives taken by the A.H. Department in training and guiding a few rural
youth in setting up of broiler units need to be continued.
Steps to be taken to set up small hatchery-cum-feed mixing units with the assistance
under Infrastructure development fund of SGSY.
Similarly, custom hatching has tremendous potential and the department can look
into identifying potential pockets for setting up these units.
Banks
Banks to encourage the farmers for setting up broiler and layer units in the district.
SHG under SGSY could be identified for setting up of small scale broiler units, to
cater to the increasing demand for poultry product in the district.
[ 38 ]
2.10. Sheep, Goat and Piggery

2.10.1 Introduction
Piggery and Goatery are the popular activities under small animal development schemes in
the district. Sheep rearing is a low profile activity and goatery is more popular than sheep
rearing among the people of the district. In view of the demand, for goat meat, there is a
scope for establishment of goat and piggery units in the district. As per the 2003 livestock
census, the district has a population of 36814 sheeps; 127300 goats; 34612 pigs. Of late, pork
consumers are increasing & demand is very high in N.E Region as well as in the district of
Bongaigaon. The activity is closely related to the tribal population and small and marginal
farmers. There is a regular in flow of Pigs from Bihar, U.P. and other eastern States.

Infrastructural details have been covered under the dairy chapter. The significant
development has been the sanction of one Pork processing unit (capacity of 50 pigs/ day) by
the Govt. of India, Ministry of food processing with a grant-in-aid of Rs.100.0 lakh to M/S
Dhaligaon Piggery Farm Cooperative Society and Allied Industries Ltd., Dhaligaon,
Bongaigaon district. The total project cost is Rs.202.58 lakh. Financial assistance to the tune of
Rs.40.75 lakh will be provided by BAC (Bodoland Autonomous council). The Govt. of India
and BAC have already released Rs.66.00 lakh and Rs.10.5 lakh respectively. The civil work of
the project is over but some machinery are yet to installed and lying for a long time without
functioning . As a result the processing unit could not be commenced in time. As per Mr. R.L
Basumatary, Secretary, informed that he need another 60 lakhs to start the project and
approached to the Governor of Assam , for financial assistance. Once the project becomes
operational at Dhaligaon, hygienic pork will be available in the district and scope for export
to Bhutan etc., will increase.
Considering the importance of the sector, SAP projections and the past performance the
Base PLP have been revised for the year 2006-2007.
(Rs. lakh)
Fin.
Unit Phy. Bank Unit Phy. Fin. Bank
Outlay Unit
Cost Units Loan Cost Units Outlay Loan
Goatery unit (5 female +1 male) 0.10 150 15.00 12.00 1 0.11 50 5.50 4.40
Piggery breeding unit (3+1 animal) 0.29 50 14.50 11.60 1 0.36 200 72.00 57.60
Piggery (fattening unit 4 no. of 0.12 100 12.00 9.60 1 0.15 150 22.50 18.00
animals )
TOTAL 41.50 33.20 100.00 80.00
Annexure I
[ 39 ]
2.10.4 Review of ground level credit :
Due to non stabilisation of SAMIS, the purpose wise breakup are not readily available.
However, it is reported that major portion of the disbursement is for piggery. Therefore , it
is estimated that Rs. 80.00 lakh would be disbursed by banks during the year 2006-07.
Piggery has good potential from the institutional point of view. The target vis-a-vis
achievement during the last four years under this sector is as under :
(Rs. lakh)
Year Disbursement
2000-2001 28
2001-2002 12.57
2002-2003 10.44
2003-2004 33.75
2004-2005 131.66
Department
State Govt. to take steps for improving infrastructure.
Veterinary dispensary at block level to be ensured functioning.
Services of Veterinary Doctors at block level to be ensured.
The Pork Processing Plant should be made operational, the Coop Society should
take necessary steps in this regard.
[ 40 ]
2.11 Fisheries
2.11.1 Introduction
The district of Bongaigaon is endowed with fisheries resources in the form of ponds/tanks, Beel,
swamps, low-lying area, derelict water bodies and a diverse network of river and revulets.
In addition to above an estimated network of 100 kms. of riverine stretches including a part
of the mighty river Brahmaputra can be considered for the exploitation of fisheries. The
present annual fish production from the above resources in the District is about 5794
tonnes during 2004-2005 as against a demand of 8972 tonnes for the entire district at the
recommended rate of 11 Kg. per capita per annum assuming 90% of the human population
consume fish. There is a wide gap between production and demand. The short fall is
partially made good through import of fish nearly 245 tonnes imported during 2004 -05 from
other states like Andhra Pradesh, U.P, W.B., Bihar, etc. Out of the total production in the
district nearly 70% comes from capture fishery resources and 30% from culture fisheries.
As regards existing natural resources in the district of Bongaigaon, around 548 hectare of
water spread area is under ponds / tanks with average production of less than 1 tonne. per
ha/year, and there is ample scope for improving this production to 3mt/ha/year by
adopting scientific culture techniques. Besides, there are low lying and swampy areas of
about 623 ha. available for construction of new ponds/ tanks . By adopting scientific
technology and management practices the farmers can raise the average production of fish
from Beels in the district . The Fish Seed production in private sectors was 18.22 million
during 2004-2005 indicating good sign for development of activity.
There is a declining trend in fish catch from rivers in the entire state in general and
Bongaigaon district in particular due to indiscriminate fishing, large scale capture of
undersized fishes and unscientific management.

Infrastructure facilities are required for fish culture in ponds/ tank, Beel fisheries,
Riverine fisheries, and Inland fisheries to cater to the development needs. There is a need
for fish seed hatcheries.
The office of District Fisheries Development Officer was established on 2nd July 1993. The
FFDA (Fish Farmers Development Agency) was reregistered on 29th October 1993 and
looked after by Additional District Fisheries Development office. No major development
has taken place during the last five years in the infrastructure availability. The Govt. Fish
farms (1 in Abhayapuri) have been given on 5 years lease to private agencies. There are two
Eco-hatcheries, 6 fish production, one fish grower under private sector located at
Garaimari, Kisanbazar and Nadiapara. The market of Garaimari is popular for the sale of
fish seed. Total fish seed production during the year under private sectors was 27.17
Million, Bodoland Autonomous Council (BAC) Kokrajhar has approved a scheme for
development of Nayachora Beel under Bongaigaon subdivision at a cost of Rs. 3.00 lakh.
[ 41 ]
There are 3106 nos. of pond/tank with water area 273 ha developed by private fish farmers,
847 nos. with water area of 215. ha with adequate measures for conservation of fish stocks.
The fishery dept. is responsible for the successful implementation of F.F.D.A. Programme
as well as other developmental Scheme in rural areas. The scheme on the development
activities will be shared on 75:25 basis between the Govt. Of India and State Govt. The
subsidy will be provided at 25% for SC/ST beneficiary and 20% for general beneficiaries.
Subsidy will be provided to the beneficiary if the remaining cost of item is contributed by
him from his / her own resources. The scheme are as follows:
a. Reclamation of /Renovation of pond /tank:- The estimated outlay is Rs. 60000/-

per ha.; subsidy is at 20% with maximum ceiling of Rs. 12,000/- per ha. for all farmers
except SC/ST for whom it is Rs. 15,000/- per ha.
b. Input for 1st year fish culture:- The estimated outlay is Rs. 30,000/-per ha.,
subsidy is @ 20% with maximum ceiling of Rs. 6,000/- per ha. For all farmers except SC/ST
for whom it is Rs. 7,000/- per ha.
c. Construction of new pond/tank:- The estimated outlay is Rs. 3.0 lakh per ha,
subsidy is @ 20% with a maximum ceiling of Rs. 60000/- per ha for all farmers except
SC/ST, for whom it is Rs. 75,000/- per ha.
d. Training of fish farmers:- Stipend @ Rs. 100/- per day during the training period
of 10 days & a lump-sum of Rs. 100/- for field visits
The fishery department in the district has inadequate staff. The Department is functioning
without adequate infrastructure like Laboratory, Training Center, Audio-visual Equipments,
etc. Posting of fishery extension officer at Sidli, Tapattari , Srijangram and Boitamari
Development Blocks and fishery demonstrator at Dantol Development Blocks are necessary.
Based on the trends in credit flow in the district, the Base PLP projections and the
importance of the sector the projections have been revised as follows for the year 2006-2007.
( Rs. lakh)
having potential may be Unit Phy. Fin. Bank Unit Phy. Fin. Bank
Unit Unit
furnished) Cost Units Outlay Loan cost Units outlay Loan
Fish culture in new ponds ha. 2.85 5 14.25 13.84 0.4 ha 1.20 5 6.00 5.10
Fish culture in existing
ha. 0.15 100 15.00 14.58 0.4 ha 0.70 10 7.00 5.95
ponds
Duck/Pig cum Fish
ha 1.30 10 13.00 12.64 0.4 ha 1.20 5 6.00 5.10
culture
Fish seed hatcheries 3.50 5 17.50 1.17 no 7.00 1 7.00 5.95
Boats and nets no 0.10 10 1.00 0.85
TOTAL 120 59.75 42.23 31 27.00 22.95
[ 42 ]
Annexure I.
2.11.4 Review of Ground Level Credit : An amount of Rs. 10.36 lakh disbursement have
been made during the 2004-2005. Discussions with Fisheries department officials in the
district revealed that in spite of a good potential, the actual credit flow so far has been very
slow. However, with the increase in demand for fish and fish products, more and more
private entrepreneurs are showing interest in taking up this activity and thus credit
requirements is also expected to grow in the coming years. It is estimated that Rs. 22.95
lakhs would be disbursed by banks during the year 2006-07.
Departments
Fishery Department to take concrete steps for development of infrastructures like

fish seed hatchery, for supply of quality seed.
Support training for fish farmers in scientific methods of fish farming.
Need for better coordination between FFDA and the banks
Banks
To tap the private entrepreneurs for taking up the fishery investments.
[ 43 ]
2.12. Storage, Godowns and Market-yards
2.12.1. Introduction
The State of Assam has made a considerable progress in agricultural sector, mainly rice
production in recent years. However, the existing market yards and storage facilities are
not adequate in the district. The union Govt. have proposed to create additional cold
storage capacity of 12 lakh metric tonnes and additional 4.5 lakh tones for onion storage
godowns in the country under Capital Investment Subsidy Scheme implement through
NABARD. Setting up of STWs under RIDF programme has also increased agricultural
production. Therefore, there is need to promote to investments in Storage Goodman and
Market yard projects.
2.12.2. Availability and Gap in Infrastructure and Support Services.
i. The existing market yards and storage facilities in the Bongaigaon district are
inadequate. There is a need for construction of additional number of cold storage,
rural godowns and market yards etc.
ii. The Bongaigaon district has a well-laid network of road and railway lines
throughout the district linking villages with major markets and railway stations.
The seasonal crops like banana, pineapple, orange, and vegetable etc. grown in the
district offers good scope for storage and marketing help the farmers to realise
better prices for the products.
iii. A CISS is available for cold storage/ rural godown where in subsidy is made
available.
The ground level credit flow during the last three years is reported as Nil. No projections
have been made in SAP for the last few years in this sector, However, it is anticipated that
there will be demand for credit in future under this sector, the Base PLP projections for the
year 2006-2006 has been revised as under :
( Rs. lakh)
activities having
furnished)
2. Storage/ godowns No 3.50 2 7.00 3.50 No 3.50 2 7.00 3.50
3. Mini cold storage No 7.00 2 14.00 7.00 No. 7.00 2 14.00 7.00
TOTAL 4 21 10.50 4 21.00 10.50
Bank loan @ 50% of TFO
Annexure I
[ 44 ]
No disbursement have been made in this sector since long . However , it is estimated that
Rs. 10.50 lakhs would be disbursed by banks during the year 2006-07.
Department
The District Administration and District Agriculture Department to take necessary

steps for establishing cold storage, rural godowns and market yard in the district.
[ 45 ]
2.13 Renewable Source of Energy and Waste Utilization
2.13.1. Introduction
Fuel scarcity is becoming acute day by day and the over exploitation of fossil fuel is also
creating an irreversible ecological peril. The significance of Bio-Gas Development was
realized by KVIC in 1961, for its special contribution in maintaining the ecological balance
through exploitation of non-conventional energy resources improving sanitation by
effective use of animal excreta, converting into high value organic manure and most
importantly as an alternative to total dependence on conventional resources, especially in
rural areas. In keeping with this objective, the Govt. of India launched “National project on
Bio-Gas Development (NPBD) in 1981 with the Department of Non-conventional Energy
Sources (DNES) under the Ministry of Energy at the Center and the Department of Rural
Development at the State level as nodal implementation agencies. Although, the scope for
development of Bio-gas in Assam as a whole is immense as has been indicated by the DNES
harnessing of existing potential has been below 5%, large scale development of Renewable
Source of Energy and Waste utilization in Bongaigaon district is relatively less when
compared to other districts of the state. This is due to the fact that the Cattle population in
the district is less. There are other sources which are easily available like electricity, coal,
fuel wood etc. However, there is need to change the mindset of the people towards setting
up bio-gas plants.
For successful installation and operation of Biogas plant, the following infrastructures are
generally required :
Cow-dung is the main raw material. Therefore, the main requisite will be
availability of sufficient number of animals to ensure supply of adequate quantity of
cow- dung on a perennial basis.
For construction of plant, the material viz. cement, bricks, and steel should be
available in time.
Skilled masons should be available locally for repairing and maintenance of

installed Biogas plants.
Finally there should be a nodal agency to popularize the Biogas plants and to look
after the execution of plants, training to farmers and to arrange subsidy.
The District Rural Development Agency (DRDA) and KVIB, Bongaigaon are the nodal
agencies responsible for motivation, demonstration, providing technical guidance,
supervision of construction and linkage with institutional credit. Both the agencies
posses technical staff to look after the biogas plants. At present, the DRDA Bongaigaon
has 5 turn key assistants to motivate the rural people to use Biogas and one field
assistant to supervise the implementation of Biogas plant. The installation is being
[ 46 ]
made by DRDA through approved contractors. At the state level Govt. of Assam plans to
increase the installation of Biogas plants during the Xth five-year plan period.
Comparing the ideal infrastructure required for Biogas vis-à-vis the infrastructure
available in the district, we come across the following gaps :
The district has a total cattle and buffalo population of about 3.075 lakhs, definitely a
limiting factor for adequate supply of cow – dung for the Biogas plants.
Difficulty in cow dung ,other waste material collection due to open grazing system.
Skilled masons for installation as well as subsequent maintenance and repair is

always in short supply in rural area.
The existing number of turnkey assistants and supervising staff with DRDA is not
adequate.
Based on the trend in achievement under this sector during the last few years the Base
PLP have been revised for the year 2006-2007.
(Rs. lakh)
activities having
potential may be Unit
furnished)
1. Renewable source No. 0.13 100 13.00 11.04 0.13 5 0.65 0.45
of energy and waste
utilization
TOTAL 100 13.00 11.04 5 0.65 0.45
@ 70% of the financial outlay
Block-wise physical and financial projection for 2006-2007 are given in Annexure-I.
2.13.4 Review of ground level credit
There is no credit flow in this sector since long . Nominal projection have been made in
SAP over the last few years without any result. On review of credit flow in this sector , it is
estimated that Rs. 0.45 lakh would be disbursed during the year 2006-07.
2.13.5 OTHER ISSUES
Although the Bongaigaon district has sufficient potentials for implementation of various
innovative schemes nothing has been coming up in the district. Cow-dung is the main raw
material. Therefore, the main requisite will be availability of sufficient number of animals
to ensure supply of adequate quantity of cow- dung on a perennial basis.
For construction of plant, the material viz. cement, bricks, and steel should be
available in time.
[ 47 ]
Skilled masons should be available locally for repairing and maintenance of

installed Biogas plants.
Finally there should be a nodal agency to popularize the Biogas plants and to look
after the execution of plants, training to farmers and to arrange subsidy.
The District Rural Development Agency (DRDA) and KVIB, Bongaigaon are the nodal
agencies responsible for motivation, demonstration, providing technical guidance,
supervision of construction and linkage with institutional credit. Both the agencies posses
technical staff to look after the biogas plants. At present, the DRDA Bongaigaon has 5 turn
key assistants to motivate the rural people.
Department
The proposals should be built up keeping in view of size of plants and availability of
adequate numbers of cattle/ buffaloes. DRDA and KVIB - Nodal agency to popularize
the Biogas plants. DRDA may arrange for installation of plants on turn key basis.
Farmers may also be given training on use of plants
Nodal agencies to motivate, demonstrate, provide technical guidance, supervision

of construction and linkage with institutional credit.
The Development Department of Govt. like DRDA, KVIC and KVIB should create
adequate infrastructure for installation and maintenance of the plants.
Banks
To increase the credit flow of to the sector , the banks support is necessary.
[ 48 ]
2.14 Other Allied Activities (Bullock and Bullock Carts, etc.)
2.14.1 Introduction
As we have discussed earlier in this chapter, the economy of Bongaigaon is basically

agrarian with more than 70% of its population depending directly or indirectly on
agriculture. The district has about 113791 cultivators of which 60156 i.e. 53% belong to
category of small and marginal farmers. Most of these farmers adopt traditional cultivation
practices solely dependent on bullocks for tilling their lands. The Govt. of Assam has
introduced a group-farming scheme for power tillers. However, number of power tillers
acquired so far have been very low. The most easily available and cheapest mode of
transportation is Bullock carts for carrying various agricultural and other domestic
products. Thus inspite of introduction of various improved farm machinaries, the “Bullock
power” still remains the main source for various farm operations and transportation in the
rural areas and it will continue for some more time.
i. Beside adequate number of plough bullocks in the district other infrastructural

facilities are required to support the development of the potential they are :
Availability of good quality of animals (bullock and he buffalo), proper veterinary

facilities, green and dry fodder, pliable roads for easy and smooth hauling of carts.
Adequate credit delivery system to offer financial support to farmers.
ii. Existing male cattle and buffalo population in the district is as follows:
a. Crossbreed male cattle 3,657

b. Indigenous male cattle 157,768
c. He Buffalo 2,896
TOTAL 164,321
iii. Existing veterinary facility in the district has already been discussed under “Dairy
development” (Para 2.8.2)
iv. Availability of workers for manufacturing traditional bullock- carts.
v. The activity is mostly covered under various subsidy-linked programme.
vi. The indigenous non-descript type cattle have comparatively low ploughing capacity.
There is acute shortage of good quality animals as well as organized market for
purchase/sale. Lack of improved tools and implements for tilling with bullocks,
fabricators/skilled worker for manufacturing improved variety of carts for smooth
and pliable hauling.
[ 49 ]
Due to poor ground level credit flow in the past few years, the base PLP projections have
been revised as follows:
(Rs. lakh)
activities having
furnished)
Plough bullock No. 0.10 100 10.00 8.00 No. 0.10 5 0.50 0.40
Bullock & bullock
No. 0.13 80 10.40 8.32 No. 0.16 5 0.80 0.64
cart.
TOTAL 0.23 180 20.40 16.32 10 1.30 1.04
Block wise physical and financial programme for the year 2006-07 have been given in
Annexure I.
The exact data on credit for financing of bullock was not available as the LBR system is yet
to stabilise in the district. However, it is estimated that around Rs. 1.04 lakh could be
disbursed by the banks under the activity during 2006-07
Department
DRDA should continue to sponsor the programme under SGSY for interested
borrowers.
Banks
Adequate provision for this activity may be made in ACP
[ 50 ]
III. NON-FARM SECTOR ACTIVITIES

2.15 Credit for Non Farm Sector
2.15.1 Introduction
The Bongaigaon district is represented as conglomeration of numerous ethnic groups with
various cultures and traditions. Although the agriculture is main source of income of
people, it cannot absorb all the increasing labour force. Therefore, Non-farm sector in an
important sector from the point of view of increasing employment opportunities and
promoting industrial development. The total work force of 185696 accounted for 20% of the
total population as per 2001 census. Cultivators 113791 and Agriculture labourers 51972
accounted for about 90% of total work force. Since the data of 2001 census is not available,
the occupational distribution of work force in the district as per 1991 census is as follows : -
Sl. No. Occupation Population Percentage of

total work force
1 Allied activities 3182 1.10
2 Mining, processing, manufacturing, 3319 1.14
Servicing, etc.
3 Construction, trade & other industries 24357 8.50
4 Transport, storage & communication 9864 3.40
5 Marginal workers 39135 13.50
6 Other services 24802 8.55
There is vast potential for NFS activities as per DIC, Bongaigaon for the agro based
(Processing of Arecanut, pineapple, spices, citronella, mushroom, ginger etc.) and forest
based (Li-camph, Salpata plates & cups, Herbal/ Ayurvedic medicines, Sal seed processing
unit). The Bongaigaon Refinery and Petrochemical Ltd. and Dhaligaon are the major
industries in N.E. Region are situated in the district. The other industries are Bongaigaon
Alluminium Factory, Ashok Paper Mills, Jogighopa Bottling plant of LPG, Assam Textile
Corporation, Bharatppur Oxygen Gas, Dhaligaon etc. The number of SSLs registered up to
December 1997 were 351.
2.15.2.1 In order to support the development as above, the following infrastructure would
be necessary :
Availability of land.
Construction material/ raw materials.
Uninterrupted power supply.
Transport and communication.
Technical assistance and quality testing laboratories.
Nodal agency to provide entrepreneurial motivation, training and guidance.
Marketing arrangements.
[ 51 ]
Work shed / industrial estates.
Environmental safety measures.
Suitable banking network to provide necessary credit support.
2.15.2.2 The District Industries and Commerce Center (DICC), Bongaigaon is the primary
agency for providing all services and supporting facilities to entrepreneur and artisans
under a single roof for setting up of industries in the district was set up in 1996. The DICC
Bongaigaon is headed by General Manager and supported by one functional manager, 2
Assistant Directors, 3 Assistant Managers, 6 extension officers including Bijni Sub
Division. The DICC Abhayapuri is headed by Assistant Director and supported by
superintendent and 4 extension officers. The other organizations involved in this sector
include KVIC, DRDA and ASIDC.
The DICC provides service facilities in preparation and selection of suitable schemes,
feasibility report, supply of scarce raw materials, marketing arrangements, financial
arrangements through local financial institutions, subsidy money etc. DICC is also the
nodal agency for implementation of PRMY scheme. The PMRY physical target was 450 of
which 335 has been sanctioned and disbursed Rs. 240.79 lakh during the year 2004-05.
Various schemes implemented by DICC include loans to SSI units, training , margin
money loan, supply of improved tools, interest subsidy, power subsidy under state plan.
The existing infrastructural facilities available for the entrepreneurs are as follows:
Industrial estate, New Bongaigaon: 29 Bighas with 34 sheds have been constructed
and allotted 30 to entrepreneurs, of these only 19 are functioning and 5 have been
closed. Also industrial area with 10 bigha of land where M/S Brahmaputra
corporation and S.S. Dying industry established .
Commercial Estate, North Bongaigaon is having 2 sheds constructed and allotted to

entrepreneurs with one Bigha of open space for expansion. One fabrication unit
and one plastic bag unit is functioning.
Commercial Estate, Abhayapuri : 3 Bighas with five constructed sheds and

sufficient open space for expansion in future.
Growth Center, Khazira, Dhaligaon : 27 Bighas of land, 2 sheds constructed and

allotted to entrepreneurs for proposed pork processing unit.
Commercial Estates at Khasikotra (for ST), Bhetagaon(Bijni)- 37, Bighas and a few
more potential areas coming up in the district.
The future plans include:

To develop rural industriesfacilaties and growth centre with minimum land
area upto 2 bighas at suitable location in every ANCHALICT PANCHAYUAT
and Blocks in the district.
[ 52 ]
2.15.2.3 Existing industrial infrastructure : Handloom and Textile activities are looked
after by superintendent, Handloom and Textile, North Salmara, Abhayapuri. The District
office is at Kokrajhar. There are 3 HTCs at Abhayapuri, Chakapara and Barlawgaon. There
are two extension service units (WESU) at Bijni and Bishnupur. Further, there are nine
PWEs in North Salmara, 28 in Bongaigaon and 17 in Bijni Sub-Division with district level
Handloom Cooperative Society at Bongaigaon. Bank loan has been fixed at Rs. 50,000/- per
unit by District Banker Committee.
2.15.2.4 If we compare the infrastructural facilities required for development of NFS

activities and the present infrastructural facilities available, as discussed above, we do not
come across any such major gap for the time being. However, certain areas may still have
to be improved viz. assured power supply to all rural areas , backward and forward
linkages in the form of adequate and timely input supply and marketing of the finished
products , training and extension support to fine tune the entrepreneurs aptitude ,
upgradation of skills etc. Some other constraints are : -
Lack of market yards/ cold storage, inadequate production credit, testing laboratories
and consultancy services for project preparation and evaluation in the district.
Considering the importance of the sector especially from the point of employment
generation the Base PLP projections and the past performance, the following revision has
been made in base PLP projections for the year 2006-2007.
(Rs. lakh)
1. Small scale industries. 5.00 200 1000.00 136.73 5.00 100 500.00 375.00
2. Village/ cottage 0.50 300 150.00 131.27 0.50 100 50.00 37.50
industries.
3. Handicraft/ tiny .0.12 350 42.00 38.27 0.12 50 6.00 4.50
sectors.
4. Rural artisans and 0.12 350 42.00 38.27 0.12 100 12.00 9.00
decentralised sectors
5. Agro processing 0.50 10 5.00 3.75
5. Working capital 68.90 85.95
Total 5.74 1,200 1234.00 413.44 360 573.00 515.70
Block-wise physical and financial programme for the year 2006-2007 hav been given in
Annexure-I
[ 53 ]
The progress and ground level credit flow during the past 3 years have been given as under:
(Rs. lakh)
Year Amount
2002-2003 89.45
2003-2004 272.3
2004-2005 67.66
Department
DICC to play a vital role in the identification of location specific non farm activities
taking into account the raw materials availability,skills and market potential.
State Government may have to improve the position with regard to availability of
electricity, communication facilities etc. So as to enable growth of
micro-enterprises.
Scope for involving women as well as SHGs in NFS activities need to be explored by
the DRDA.
NGOs to take active part in promotional schemes of NABARD, viz.,REDP, ARWIND

and cluster approach for rural industrialization.
Banks
Banks may extend credit facilities to the educated unemployed youth to set up their
NFS units and provide required working capital for the existing for the existing
Industrial Units.
[ 54 ]
IV. OTHER PRIORITY SECTOR

2.16.1 Introduction
As discussed under Non-farm sector chapter, a large section of potential working
population in the district is without any job and needs to be provided with some income
generating activity. Bongaigaon is having a good scope for absorbing people in various
kinds of business and service activities. The activities covered under other priority sector
are transport operators (SRTO), retail trade (RT), small business (SB), professional and self
-employment (P&SE), education loans, consumption loans, etc. The tertiary sector assumes
importance as the economy grows and this is in turn will influence the production and
productivity in primary and secondary sectors creating long term potential in the district.
2.16.2. Availability and Gaps in infrastaructure and support services

The most important infrastructure required for development of trade and service
activities are transport and communication facilities, organized marketing system,
easy information system, uninterrupted electricity supply and sincere
entrepreneurship, establishment of big industries in the district.
The availability of infrastructure for setting up projects under OPS is discussed

under Non-farm sector chapter.
Considering the importance of this sector and the past performance the following revision
has been made in the base PLP projections for the year 2006-2007 .
(Rs. lakh)
SRTO 3.25 50 162.50 145.25 3.25 100 325.00 292.50
Service/business 0.32 1,500 480.00 432.00 0.50 1,500 750.00 675.00
Rural housing 0.70 150 105.00 94.50 1.00 250 250.00 225.00
Education 0.17 50 8.50 7.65 0.17 50 8.50 7.65
Total 1,750 756.00 679.40 1,900 1333.50 1200.15
Bank loan @ 90% of TFO
Block-wise physical and financial programme for the year 2006-07 are given in Annexure - I
2.16.4 Review of ground level credit flow:
The total credit flow under the broad sector during last 3 year five years in the district has
been given below:
Year Loan distbursed

2002-2003 649.01
2003-2004 608.68
2004-2005 1,194.27
[ 55 ]
It is observed from the above that the disbursements show increasing trend over the last
few years. Further increase in the ground level disbursement under this sector is expected
to grow substantially in the future and estimated at Rs. 1200.15 lakhs ground level credit
flow during the year 2006-2007 ..
2.16.5 Suggested Action point
Departments
The concerned departments may identity the educated unemployed youth and
provide training for setting up the service units.
In order to facilitate recycling of funds to extend higher level of fresh credit, blocked
resources the form of huge overdue loans have to be recovered. Government may
extend necessary assistance to banks in improving recovery particularly under
Government sponsored schemes where the recovery rate is below 10%.
Banks
Banks may encourage the setting up of service units by providing credit support.
Banks may aim at least 25% increase in their financial support to this sector.
Selection of beneficiaries should invariably be made jointly by bank and

department staff to establish bonafides of the borrowers.
[ 56 ]
CHAPTER - III
INFRASTRUCTURE SUPPORT
A. Introduction
Infrastructure is an index of development status of the district. Adequate and appropriate

infrastructure is essential to exploit full developmental potential of the district .
World development report 1994 ( published by World Bank ) focusses on economic

infrastructure and includes services from:
Public utilities - power, telecommunications, piped water supply, sanitation and sewerage,
solid waste collection and disposal, and piped gas.
Public works- roads and major dam and canal works for irrigation and drainage other
transport sectors, urban and interurban railways, urban transport, ports and water ways
and airports.
Hon’ble President Dr. Abdul Kalam in his address to Parliament “ outlined and over
reaching vision to build India and called it “ Bharat Nirman” “ Bharat Nirman” has been
conceived as a business plan, to be implemented over a period of 4 years, for building
infrastructure mainly in rural India.
It has 6 components- Irrigation, Roads, Water supply, Housing, Rural electrification and
Telecom density.
Keeping in view the predominantly agrarian economy of the district and importance of
essential basic services related to social sectors like health, education, following
components are included under “Infrastructure” in the chapter.
Electricity - mainly rural electrification .
Transportation - mainly roads and bridges
Irrigation
Communication ( Telecommunication and post)
Education
Health
Water supply and sanitation
Rural market yards
Information Technology
Key requirements for prominent “ agriculture and allied activities” in the district.
[ 57 ]
Economy of Bongaigaon district is mainly agrarian. It is a major producer of paddy,

Banana, Pineapple, citrus, jackfruits, etc. Agriculture , Dairy , piggery and weaving are the
most prominent economic activities in the district . Most of the industries are closed down
due to various reasons and Assam Government has not taken any initiative to revive the
industries. As a result, it hampered the economic development in the district due to Power
shortages, poor rural road connectivity, cold storage facility, rural bridges unfit for traffic
and lack of suitable infrastructures and other logistics support for industries etc.
B. INFRASTRUCTURE INDICATORS : Status of the district under various

infrastructure components is to be graded to a five point scale depending upon the
deviation ( negative ) from the State level. Categorisation is than made as under :
Infrastructure component District State Category
1. Electricity
a. No of village electrified ( as per pre
816 77.13 A+
2003-04)
b. % of village electrified ( as per 2003-04 89% NA
c. Percentage of rural comers to total
NA
consumers. NA
2. Transportation
a. Road density per 1000 sq. Km area 32.7 448 D
b. No of transport vehicles per 1000 sq.
5,986 8,549 B
Km ( registered vehicles of all types)
c. Village connected by pucca road. 15.48 % 44.94% D
3. Irrigation
a. Irrigated area to net cropped area %. 7.09 37.19 D
b. % of area irrigated through ground 20.00 2.61 A+
water
c. % of area irrigated through surface water 80.00 97.38 B
d. No of tube wells per 100 ha of cropped 3.00 4.89 C
area
4. Communication
a. No of telephone lines per 100 population NA 1.84
b. Population served per post office NA 6651
c. Average area served per post office sq. kms NA 19.57
5. Education
a. Literacy rate 59.33 63.25 A
b. Literacy rate- Male 67.67 71.28 A
c. Literacy rate - Female 50.44 54.61 A
d. No of schools per 1 lakh population ( 110 144 B
elementary education upto viii )
e. No of secondary and sr. Secondary 20 20 A+
schools per 1 lakh population
f. No of degree & professional colleges per NIL 1.31
1 lakh population
g. Teacher- pupil ratio up to class ( i - iv) 1.38 1.36 A+
Class -V to class VII 1.17 1.14 A+
[ 58 ]
6. Health
a. Birth rate ( per 1000 persons) 10 26.6 D
b. Death rate 1.30 9.2 A+
(per 1000 persons)
c. Mother mortality rate (MMR) PER 1000 NA NA
live births
d. Infant mortality rate ( IMR) per 1000 NA 70
live births
e. Life expectancy at birth NA NA
f. Sub centre/ primary health centres/ 16.58 22.49 A
community health centres per 1 lakh
population
g. No of dispensaries / hospitals per 1 3.87 1.85 A+
lakh population
h. No of beds in hospitals per 1 lakh NA 45.58
population .
i. Doctors (modern i.e. Allopathic system) NA 1.74
per 1 lakh population
7 Water supply
Percentage of villages having drinking
water supply ( fully or partially) 76.28 99.17 B
8. Agriculture markets
No of agriculture markets per 100 sq. kms NA 24
9. Poverty
Percentage of rural people below poverty
line 9.58 36.09 D
10. Agricultural marketing
No of regulated markets per 100 sq. kms. 1 24
11. Productivity of major agriculture crops kg/ha
i. Winter paddy 1281 1,651 B
ii. Summer paddy 1124 1794 C
iii. Ahu paddy 961 1046 A
iv. Maize 608 700 A
v. Rapeseed/ mustard 604 501 A+
C. Sector wise infrastructure requirement & suggested action points:
As indicated earlier, the district basically confront with the problem of inadequate, poor
infrastructure in terms of community irrigation facilities, power supply, roads and
bridges, storage godown/cold storage, organised market, primary health services,
veterinary services, drinking water supply, basic education facilities etc.
In addition to common infrastructure, some of the important infrastructure gap identified

under different sectors/ activities are as under :
1. Agriculture
Water Conservation and Harvesting
The 7 blocks of the Bongaigaon district have been categorised under “ White” category.
District economy mainly agrarian. Hence urgent need to implement OFWM , AACP and
[ 59 ]
incentive may be provided by the Govt. to all farmers on the line of ‘ Water Harvesting
Scheme for SC/ST farmers . Processing units with diversified products based on seasonal
local fruits/vegetable need to set up multiple crop. To encourage organic farming/integrated
nutrient management a commercial bio-fertiliser unit and few vermi compost units need to
be promoted for which a CIS schemes also available. The NWDPRA projects implemented by
District Agriculture Department should complete within time frame.
2. Irrigation projects
20% of irrigation done through groundwater with STW in some parts and 80% by using
surface water in the 7 blocks of the district. Irrigation projects should be accorded priority
for maximum utilisation of surface water. There are 39 completed MI schemes of which 21
schemes are functioning and some are not functioning for various reasons. Govt. should
provide adequate budget for maintenance of existing irrigation projects by Government. 3
Irrigation projects have been submitted by the concerned department for sanction under
RIDF should be considered.
3. Electric Power Supply
Despite electrification in most of the villages , there has been acute power shortages during
the peak agriculture season resulting loss to agriculture production and productivity in
the district . Providing adequate power supply is essential for irrigation especially during
Rabi season .
4. Horticulture
Climate of the district is suitable for growing lime, guava, oranges pineapple, jackfruit
banana etc. However, there is no processing industries, cold storage facilities in the
district. This has resulted in very few farmers opting for horticulture crops
Cold storage units should be established. Assistance is available under CISS for Cold
storage's and the scheme is valid unto 31 March 2007.
There is urgent need to provide all logistics and promotional support to agro processing
industries, 24 hr.. power supply and other support to industries of the district.
Jatropha plantation are existing in more or less in the villages . Farmers should be
motivate to adopt the Jatropha plantation commercially subject to availability of by back
policy and established with a processing unit for manufacturing for Bio-diesel in future
by the Govt.
5. Animal Husbandry
Dairy and Piggery is the second most prominent economic activity in the district. The
SHGs, educated unemployed youth are start dairy farming opting as a economic activity
and livelihood in Bongaigaon district. There is nothing modern equipment and technology
like pasteurization of milk ,bulk cooling unit, specialised vans for milk supply, modern
[ 60 ]
processing etc. In the district. Besides milk, product like Ghee, Poneer, Sweet, Cream are
sold by it in the local market by individual farmers.
There is need to establish large size commercial dairies and use modern technology for
processing of milk into ghee, butter, etc. Such value addition will effect far better returns to
the producers. Assistance may be taken under Government of India’s scheme “ Venture
Capital Fund for Dairy , which is being implemented through NABARD in the district. The
significant development has been the sanction of one Pork processing unit ( capacity 50 to
100 pigs/day) by the Govt. of India , Ministry of food processing with a grant in aid of Rs.
100.00 lakh to M/S Dhaligaon Piggery Farm Cooperative Society and Allied Industries Ltd.
Dhaligaon, Bongaigaon district.
6. Transportation
95% of villages are not covered by Pucca roads .
Construction of village roads be accorded priority. Village connectivity should

ensure that the entire road ( village road to district road and district road to
National /State Highways ) is constructed/repaired .
Village Road Bridges should replace by RCC Bridge for the better
communication/marketing etc.
7. Education
110 elementary schools upto viii standard, 29 vernacular schools, 13 High School
Secondary schools per 1 lakh population .
Number of teachers also inadequate in some schools.
D. RIDF Projects in Bongaigaon district
RIDF was set up in the year 1995-96 with an initial amount of Rs. 2000 crore (RIDF-I) made up
of contributions of deposits from schedule commercial banks operating in India to the extent
of shortfall in their agricultural lending subject to maximum of 1.5% of the net bank credit.
Since then, the scheme has been continued as under with the successive Union Budgets.
RIDF- IX Tranche 2003-2004
The Government of India have approved IX-Tranche of RIDF for 2003-2004 with a corpus of Rs.
5500 crore. Government of India have, however, desired to be taken up that loans from RIDF-IX
should be sanctioned for projects linked directly to reforms the State Government. Which
benefit the farmers more directly and priority to be given for projects relating to irrigation ,
soil and water conservation, etc. The quantum of loan for thrust areas like irrigation, Soil and
Water Conservation and system improvement in Power Sector has been revised upwards to
95% of eligible cost. Connectivity, it has been reduced to 80% of the eligible cost.
In Bongaigaon district, under RIDF-IX tranche 2003-2004, the State Government have
submitted proposal for construction of four bridges proposal and sanctioned three RCC
[ 61 ]
bridge under RIDF- IX amounting to Rs 240.33 lakhs. The details of projects sanctioned
under RIDF are indicated below :
NABARD SANCTION OF PROJECTS IN BONGAIGAON DISTRICT
UNDER RIDF- V, VIII, IX AND X .

S. Name of the Type District Implem Project RIDF Likely date Disb.
No project enting cost loan of
agency completion
1 Bridge No. Bridge Bongaigon PWD. 197.90 100.79 Work 90.70
2/1 over GOA completed
river Dulani
on
Gerukabari
– Bijni Road
6/1 on GOA completed
Abhayapuri
Lengtisichin
ga Road
Abhayapuri-
Lengtisichin
ga Road
4 Bridge Bridge Bongaigon PWD. 48.44 43.60 Work 34.34
No.1/3 on GOA completed
Abhayapuri-
Lengtisichin
ga Road
Abhayapuri
Lengtisichin
ga Road
Total 533.80 403.10 372.80
RIDF-V
6 Shallow MI Bongaigaon DAO 299.00 179.40 Completed 173.14
Tube Well GOA
phase -I
(1300 nos.)
7 STW Phase MI Bongaigaon 1150.00 690.00 Completed 206.10
II( 5000 nos.)
Total 1449.00 869.40 382.63
3
RIDF - VIII
8 Bridge No. Rural Bongaigaon PWD 138.28 124.45 Under 24.89
1/1 on bridge GOA progress
Kabaitari
Abhayapuri
Road
[ 62 ]
RIDF-IX
9 Bridge No. 2/1 on Rural Bongaigaon PWD, 101.04 80.83 March 0

Bijni Kuklung bridge GOA 2006
Road
10 Bridge No. 16/1 on Rural Bongaigaon PWD, 93.44 74.75 March 0
Salbari bridge GOA 2006
Bongaigaon Road
11 Bridge No.6/1 on Rural Bongaigaon PWD, 105.94 84.75 March 0
Dharampur bridge GOA 2006
Borghola Road
Total 438.70 364.78
RIDF -X
12 Gargaon - FIS MI Bongaigaon Irriga 157.09 81.24 Work 0
tion progress
13 Kukulong -FIS MI Bongaigaon - do - 186.31 95.55 - do - 0
14 Chakapara ELIS MI Bongaigaon - do - 59.38 48.78 Yet to 0

start
Under RIDF projects, construction of 5 RCC rural bridges have already been completed in
between Abhayapuri and Lengtisinga road , Gerukabari and Bijni road. On
implementation of RIDF projects, the people of the villagers are more benefited in
transportation , marketing and communication with the urban area and towns.
E. Infrastructure for support under RIDF
It is emerged during the course of discussions with the District Administration , line
departments and bankers in the district for assistance from RIDF is required for
development of infrastructures in the district and the Deputy Commissioner, Bongaigaon
issued a letter to concerned line departments for submission of project proposal to
NABARD for approval under RIDF-XI. The infrastructure requirements of the district
which could be considered for sanction under RIDF are as follows:
Irrigation projects submitted under RIDF XI
Name of schemes Area ( ha) Estimated cost.
1. Nowapara F.I.LS. 350 ha Rs. 136.00 lakhs
2. Doichunguri F.I.S 450 ha Rs. 247.00 ,,
3. Bhogjhora F.I.S 350 ha Rs. 220.00 ,,
PWD Road and E&D
4. Flood protection on enhancement of Aie River for effected area of Rowmari and
Sourabari
5. Improvement of rural road from Bidyaour to Basugaon and also RCC bridge on the Kujia
river.
[ 63 ]
6. Construction of RCC Bridge on Champabati River.
7. Improvement of rural road from Bijni to Bishnupur .
8. Improvement of road from Borobazar block to Bhutan border .
9. Construction of RCC Bridges on road from Bengtol gate to Bengtol .
10. Improvement of rural road from Ujani to Enkarbari villages.
11. Replacement and construction of RCC bridge on Kujia river , Dakhinkajalgaon.
PROGRESS OF THE IWDP/HARIYALI PROJECTS, BONGAIGAON DISTRICT.
The IWDP/ HARIYALI projects have undertaken by DRDA in 5 Blocks for infrastructures
development in Bongaigaon district and the work of the projects is under progress. The
physical and financial targets of the projects are given below:
( Rs. lakh)
Name of project Project Area Amt. Amt. Total Expendi Balance
Name of block cost (in in ha Sanc- sanct- received ture up
lakh) tioned ioned to 30
by by April05
GOI. GOA
1. Tapattary Mora Manas 331.00 5,515 45.50 4.13 49.63 49.63 0.00
IWDP 2001-02
2. Borobazar Silborijan 360.00 5,419 49.50 4.50 54.00 46.10 7.90
Hariali project
2003-04
3. Boitamari Tunia 300.00 5,000 41.25 - 41.25 23.00 18.25
watershed
project 2004-05
4. Manikpur Manas Bank 300.00 5,000 41.25 - 41.25 - 41.25
H. Project
2004-05
5. Sidli Silghaguri 300.00 5,000 41.25 - 41.25 - 41.25
IWDP 2004-05
[ 64 ]
CHAPTER-IV
SUPPORT FOR GOVERNMENT SPONSORED PROGRAMMES
4.1 Introduction :
The economy of Bongaigaon district is primarily agrarian. Therefore, the economic

development of the district is dependent on agriculture and allied activities. The
agro-climatic condition of the district is highly conducive for development of agriculture
and allied activities. Out of total 917 villages in the district 816 villages have been
electrified as reported by the electricity Board. The Bongaigaon district is well connected
by road. Number of villages connected by all weather roads as per Executive Engineer,
P.W.D. Road Division, Bongaigaon is 831.60 kms. No. of villages having supply of potable
water is 2530 (habitations) . There are 20 number of State dispensaries, 23 nos. P.H.C, 117
nos. sub- centres, 4 nos. C.H.C, Railway dispensary -1, Pvt. Hospital -5, BRPL Hospital -1
Rural Family Welfare Centre - 6, Blood Bank facility-1, Rural hospital -5, Govt. subsidiary
hospital -3, 1105 nos. of primary, preprimary and middle schools in the district. The rural
housing has been given importance in the district through various Government schemes
and Bank schemes.
Sl. Particulars Male Female Total

No.
a Literacy rate of the district 67.67 50.44 59.33
b Agriculturists 86,876 26,915 113,791
c Service 4,113 4,827 8,940
d Other Workers 100,090 18,450 118,540
e Marginal Workers 24,656 35,500 60,156
f Non workers 239,940 371,652 611,592
4.2 Credit Linked Subsidy Schemes
4.2.1 Cold storage/Onion godowns
A capital investment subsidy scheme for construction/expansion/modernisation of cold

storage and storage for horticulture produce. The scheme envisages not only creation of
additional capacity by construction of be new cold storages but also encourages, expansion
/modernisation/renovation or rehabilitation of old cold storage units. Subsidy is available
@ 33.33% of the project cost with a ceiling of Rs.60.00 lakh.
Since Assam produces about 39 lakh tonnes of fruits and vegetables every year including
potatoes, the demand for cold storages in Assam is gradually increasing. The cold storages
will improve the marketing avenues for the produce and the farmers will be able to realise
higher income.
4.2.2 Rural Godowns
The Directorate of Marketing and Inspection, MoA, Government of India in collaboration

with NABARD has formulated a credit linked subsidy scheme for construction/
[ 65 ]
renovation/expansion of rural godowns. Creation of scientific storage capacity in

rural areas for meeting the requirements of farmers for storing farm produce,
prevent distress sale of produce by farmers immediately after harvest, promote
pledge financing and marketing credit, introduce a national system of warehouse
receipts in respect of agricultural commodities stored in such godowns, etc. are
the main objective of the scheme.
The scheme provides credit-linked back-ended capital investment subsidy.
For the projects in North-East Region subsidy admissible @ 33.33% of the project
cost with a ceiling of Rs.60.00 lakh
4.2.3 Rain Water Harvesting structures for SC/ST
4.2.3.1 Objective:
Government of India had announced a special scheme in the budget viz ‘ RAIN WATER
HARVESTING SCHEME FOR SC/ST FARMERS’’ for increasing per capita income of
SC/ST farmers in the country. In order to augment the income generating capacity of these
SC/ST farmers suitable local water harvesting structures are proposed along with
provision for small lifting devices on a nationwide scale .
4.2.3.2 States covered under the scheme
All States and Union Territories are covered under the scheme. In all, one lakh winter
harvesting structures are proposed and the state-wise allocation of the physical programme
has been arrived at based on the percentage of SC/ST families in the State/Union
Territories to the all India number of SC/ST families, and on the potential for water
harvesting structures in the area.
4.2.4 On Farm Water Management in Eastern and North Eastern States
The scheme is being implemented in all the districts of Assam. Individual farmers or group
of farmers will be eligible for assistance under the scheme. Preference will be given to
small and marginal farmers and SC/ST beneficiaries.
Assistance will be available for the following activities :-
construction of Shallow Tube Wells (STWs) with pumpsets to individual/group of

farmers;
community Lift Irrigation Points (LIP) to a group of farmers;
electric/diesel water pumping sets to individual farmer and
dugwells only in plateau areas for individual or group of farmers.
The financing bank shall adhere to spacing norms between wells, other technical norms as
recommended by NABARD for different structures in each State. The financing bank shall
also ensure that the pumpsets financed are as per IS 10804 and other accessories of each
project are as per BIS standards.
[ 66 ]
All institutions eligible for NABARD refinance are eligible for participation in the Scheme.
Selection of beneficiaries will be done by the financing bank. However, assistance of Govt.
agencies, Panchayats, NGO, SHG etc. can be taken for identification/selection of
beneficiaries.
The contribution of the beneficiaries will be at a minimum of 20% of the project cost.
Subsidy @ 30% of the project cost from Government of India will be available to all eligible
borrowers. Subsidy will be available only in cases where bank loan is availed. The amount
of subsidy will be limited to 30% of the average unit cost as recommended by the Unit Cost
Committee of NABARD or the actual project cost whichever is lower. The subsidy will be
back-ended with a lock-in period of 2 years, i.e, the beneficiaries will not be eligible for
subsidy of the loan if liquidated completely within 2 years from the date of initial
disbursement of loan
4.3 Government sponsored programmes:
4.3.1 Swarnajayanti Gram Swarozgar Yojana (SGSY)
Despite introduction of poverty alleviation programmes like IRDP, rural poverty in India
continues to be a significant and the number of rural poor has more or less remained static
and is estimated to be about 244 million persons. `Swarnajayanti Gram Swarozgar Yojona `
has been launched from April 1999 as a holistic programme covering all aspects of self
employment such as organization of the poor into self help groups, training, credit,
technology, infrastructure and marketing. With the launching of SGSY, the earlier IRDP,
TRYST, DECREE, STIR, GK., and MSS programmes are no longer in operation. Under
SGSY, 384 SHGs have been planned for the year 2004-2005 for the district of which 170 have
been identified for key economic activities and 165 have been sanctioned and disbursed by
banks amounting to Rs. 245.67 lakhs and also released revolving fund assistance 341 nos. of
SHGs. Accordingly ,Subsidies to the extent of Rs. 191.92 lakhs ,revolving fund Rs. 33.49
lakhs, infrastructure Rs. 59.33 lakhs, training Rs. 21.37 lakhs have been provided by DRDA
during the year 2004-2005. DRDA had received fund from Central and state Govt.
amounting to Rs. 328.71 lakh and incurred expenditure amounting to Rs. 306.11 lakhs
during the year 2004-2005. The performance of SGSY ( Individual) for Physically
Handicapped as on 31 March 2005 target was total 73 and 102 sanctioned and disbursed by
banks amounting to Rs. 24.98 lakhs and released subsidy Rs. 9.84 lakhs by DRDA ,
Bongaigaon.
4.3.2 Scheduled Castes/Scheduled Tribes Action Plan
The total population of the district is 9,04,835 as per 2001 census of which 7,95,053
population are living in the villages. The population survey of BLP families is under
process as per DRDA report. The population below poverty line as per DRDA statistics are
as under:
[ 67 ]
Population below poverty line (DRDA statistics )

Number of rural Households 135,088
Number of BPL Families -Block-wise 86,677
The total beneficiaries covered under SC/ST so far is 4209 families, weaker section 14242
numbers under various BLP programmes in the district.
The present arrangements to bring economic development for remaining population by the
State Government is inadequate and steps should be taken to improve the economic
development of the below poverty line. Block- wise highest number of schedule caste and
schedule Tribes population as per 1991 census in the district are as under :
Name of the blocks SC ST

1. BOROBAZAR 15,278 93,404
2. MANIKPUR 15,494 10,009
3. SRIJANGRAM 8,773 1,156
4. TAPATTARY 11,779 751
5. BOITAMARY 14,439 2,381
6. DANGTOL 7,576 8,572
7. SIDLI CHIRANG 2,298 23,741
Total 75,637 140,014
There are programmes specially designed for lending schemes for O.B.C, APTDC & S.C.
Ltd. Under the Family Oriented Income Generating Schemes ( F.O. I. G. S. ) and are being
implemented through bank finance. Due to non- availability of subsidy and non
sponsoring of beneficiaries by the implementing agency, the targets could not be achieved
since last few years in the district.
4.3.3 Prime Minister’s Rozgar Yojna (PMRY)
The scheme launched in the year 1993-1994 is being implemented through District
Industries Centre. It envisages financial assistance to educated unemployed youth in the
age group of 18 to 35 in starting new ventures. The age limit has been relaxed up to 45 years
in respect of SC/ST/Ex- Servicemen/ Physically handicapped persons. The borrowers
under the scheme are eligible for sanction of composite loan up to Rs. 2.00 lakhs for any
venture covering industry and services. For business sector, the loan amount is restricted
to Rs. 1.00 lakhs. If two or more eligible persons join together in partnership, the finance
can be extended up to Rs.10 lakhs. Subsidy is limited to 15% of the project cost subject to a
maximum of Rs. 7500 per person. Preferences would be given to women & those belonging
to weaker sections with the reservation of 22.5% for SC/ST and 27% for OBCs.
The achievement under PMRY during 2004-2005 was 335 out of target 500 and
financed by banks was amounting to Rs. 240.79 lakhs.
The flow of credit is very poor due to lack of coordination between the banks and DICC.
The task force committee should select the genuine enterpreneurs .
[ 68 ]
DICC should involve with banks to recover the outstanding dues from PMRY
beneficiaries.
4.3.4 OTHER GOVERMENT SPONSORED PROGRAMMES
SEMFEX II/BLISS
This scheme also is in operation in the district and the Zillah Sainik Board/Rajya Sainik
Boards has been closely monitoring the implementation of the programme. The Banks
provides financial assistance to Ex- Servicemen for undertaking some income generating
activity. Under the programme interest subsidy is made available to the Ex- servicemen by
the KVIC. Due to lack of initiative from KVIC the scheme is yet to pick up.
Credit cum subsidy for rural Housing. Ministry of Rural Development, Govt. of India,
has introduced the scheme. The scheme will be implemented only by the designated bank
branches identified by the State Govt. and the implementing agency will also be identified
by the state Govt. The target group will be rural house holds with annual income up to
Rs.32, 000/-. The subsidy ceiling is Rs. 10,000 per household. The target is of 257 houses with
subsidy of Rs. 25.70 lakhs for Bongaigaon district. The DRDA have been allotted target for
construction of 102 new houses @ Rs 20,000/- out of which completed 92 houses and subsidy
was allotted Rs. 28.22 lakhs of which incurred expenditure Rs. 23.00 lakhs for the
Bongaigaon district.
4.3.5 Past Trends:
The details of achievements vis-a-vis the targets under the different Government-sponsored and
programmes sponsored by other agencies during the past three years be indicated as below:
2002-2003 2003-2004 2004-2005

Programme
Target Achiev. Target Achiev. Target Achiev.
SGSY( Indv) 300 110 300 110 17 102
(ph) (ph)
SGSY( Group) 63 31 63 72 170 165
IAY New - 1666 nos. 2,286 1,996 nos 6148 4933

construction nos nos
IAY Up grad. - 1011 nos. 1,142 950 nos 3252 2779
nos nos
SJRY - 8.26 - 10.9 5,368 4949
nos nos
NPBD - - 18 18 - -
PMGY new - - 452 421 411 370
PMGY up grad - - - 212 1,530 1,388
4.3.6 Comment
On examination of the implementation of the programme, it reveals that credit

disbursement is on declining trend due to;
The recovery performance is unsatisfactory,
[ 69 ]
Maintenance of the assets are very poor
Income generation among the beneficiaries have not improved.
Lack of better cooperation for follow-up and monitoring by banks/Govt.

Deparments resulting in poor recovery.
Projections for 2006-07
Taking into consideration the various relevant factors such as new policy initiatives taken
by the Government, availability of infrastructure/additions there to planned, credit
absorption capacity etc., the activity-wise projections under the different programmes are
given in Chapter -II.
Block-wise Identification Of Key Activities:
Based on the potentials for the various economic activities in the district, as detailed in the
different Sub-Chapters of Chapter-2, the ‘Key’ activities that could be taken up for financing
by the banks in respective blocks of the district are indicated below:
Block Proposed key activities

1. Borobazar Block Dairy/ Piggery/ Sericulture/ Fishery/ Power tiller,.
Tractor/ Improved Horticulture, Weaving
2. Manikpur Block -do-
3. Sidli- Chirang Block -do-
4. Dantol Block -do-
5. Boitamari Block -do-
6. Tapattary Block -do-
7. Srijangram Block -do-
[ 70 ]
CHAPTER - V
ROLE OF INFORMAL CREDIT DELIVERY SYSTEM
5.1 Self Help Group
5.1.1 Introduction
In the state of Assam despite large rural banking network, a vast majority of rural poor
have no access to formal banking system. The credit flow to the socially and economically
backward classes and tribal population has been far from satisfactory.
The large number of borrowers having small credit needs.
Frequent need of credit
Limitation imposed by legal frame work.
Banks perception of risks and credit worthiness of the borrowers.
Thus 2-3% of the BPL families belonged to SC/ST in the district. In view of the high level of
poverty , the district has an excellent scope for bringing members of such families under
the umbrella of bank credit through formation of SHGs. Most of the rural women are
forming SHGs in the villages through various forum /NGO/VA and social workers.
5.1.2 Micro Finance Profile in the district is depicted in the following table:
Sr. Particulars
No.
1 Total number of blocks in the district 7
2 No. of blocks where SHGs exist 7
3 Total no. of blocks where SHGs are credit linked 5
4 No. of NGOs in the district 185
5 No. of NGOs participating in linkage 4
programme
6 No. of additional NGOs to be roped in during the CBs RRBs Coop.
year 3 7 -
7 Total No. Bank branches in the district 40
i) Of which no. of branches participating in 6
linkage programme
ii) No. of additional branches proposed to be 2
roped in
iii) No. of banks acting as SHPIs -NIL-
iv) No. of Govt./other agencies participating DRDA, DVO, FDO and
Sericulture
V) No. of Govt./other agencies likely to
participate
8 NGO-wise status of
i) SHGs promoted i) ANT- 20, NKY- 25 ,
ii) Saving linked Procesta - 1575
iii) Credit linked, ii) 227
Iv) refinance linked iii) 200
iv) 200
[ 71 ]
5.1.3 Projections for the year 2006-2007
No. of SHGs to be promoted No. of SHGs to be saving No. Of SHGs to credit

linked linked
600 600 400
5.1.4 SHG Linkage Programme - Strategy
The Training requirements of bank officers/NGO Staff/Govt. and other functionaries

approximately - 100. The SHG bank linkage programme in the district is a good sign for
future and assured by bankers to give priority on SHG linkages .RRB (PGB) is the main
bank in the formation SHGs in the district and other commercial bank ie. SBI has given
target to its branches for direct bank linkage under NABARD Schemes and cooperative
bank are not showing any interest in promotion as well as credit linkage of SHGs and thus
total SHGs have already been formed in the district.
Formation of Prochesta Self Help Group initiated by ZSS is 1575 , total saving linkage Rs.
80.75 lakhs and bank credit linkages of 236 Procesta group amounting to Rs. 30.29 lakhs has
been effected so far in the district. However, more credit linkages is respected during the
year 2006-2007 and the target is likely to be achieved.
5.1.5 SHGs in Government Programmes:
The DRDA in the district had target 170 SHGs and achieved 165 SHGs for economic
activities amounting to Rs. 191.92 lakhs during the year 2004-2005 under SGSY Scheme. 341
numbers received revolving fund assistance amounting to Rs. 33.49 lakhs during the year
2004-2005. With the launching of SGSY the importance of SHG formation become prominent
in the district. There is a scope for promoting SHGs through line department. There was a
massive SHGs capacity building and skill upgradation training programmes held in the 7
Blocks under the SGSY scheme as well as NABARD ‘s SHG training/ awareness
programmes.
Bank/branches as SHPIs in district: - SBI and PGB both are accepted as SHPI for
grant assistance from NABARD but progress is not picking up . All the bank
branches has shown keen interest in direct credit linkage of SHGs under NABARD
scheme. Only a few Bank branches in the district have extended cooperation with
line department in financing SHGs. RRB(PGB) is the main bank involved in the
formation of SHGs in the district besides NGOs/VA.s
Rating Norms - The rating norms of SHGs is followed by DRDA as per the
guidelines of SGSY schemes. The bankers and other voluntary organisation are
following the NABARD guidelines for rating while financing the SHG in direct
linkages.
[ 72 ]
5.1.6 Need of Joint Liability Group
The mid-segment which predominantly performs agriculture related activities requires

quantum of credit larger than micro- credit , it also requires credit for longer duration is
Joint Liability Group.
To reduce risk cost and improve recovery performance.
To reduce transaction cost.
To facilitate smoothening the flow of credit and serving a larger segment of the
agrarian population .
To provide a greater degree of flexibility to the borrower to determine his/ her

needs and priorities.
To provide hassle- free credit for agriculture & other rural enterprises.
Objective
To assist establishment and financing of JLG to facilitate smoother flow of credit to mid
segment credit takers.
To use different models of JLG to act as collateral enhances and collateral substitutes.
There are four models for financing by banks under the JLG. JLG is consisting 5 to 10
clients ( new or existing ), informally registered as a group with banks. The undertaking
offered by the group ( by all members ) enables them to jointly receive such amounts as
deemed eligible by the bank for pursuing any individual or joint activities as found suitable
by the group. Its main purpose is too facilitate mutual loan guaranteeing and execution of
joint liability agreement making them individually /severally and jointly liable for
payment of interest and repayment of loan obtained from the bank. JLG members normally
live in the same neighbourhood/ village and are from the same socio- economic background
and environment. JLG members carry out same production activities and are expected to
know and trust each other well.
5.1.7 Non-government Organisations/Voluntary Agencies(NGOs/VAs)

The Bongaigaon district has a quite a few NGOs/VA like PROCESTA, Nehru Yuva Kendra,
Natures foster, Prayas, Aie Seuj Samity, Appropriate Technology Mission, Sidli Biswajyoti
Club, and Abhayapuri Sanskriti Parishad etc. They play an important catalytic role in
implementation of socio-economic development programmes.
5.2 Farmers' Club

5.2.1. Status of Programme implementation in the district.
Farmers Club as on 31 March 2005
Bank Clubs NGO/VA Satellite Clubs Total No. of Total No.

Clubs Clubs SHGs
1 NIL NIL 1 500
[ 73 ]
5.2.2. The existing Farmers Clubs in the district are mostly defunct. There is a need to
revive the Farmers Club.
5.2 3. However, projections for the year 2006-2007 can be made to open at least 6 farmer
club in view of potentiality available in the district and roped other agencies also for
implementation of the farmers club programme.
5.3 Women Development Initiatives

5.3.1 Introduction
Women play an important role in the overall development of the economy. Recognizing the
fact that women being equal partners in development, should have equal access and
opportunities to share the benefits of any planned development. Government of India has
been paying special attention to gender related issues and as a corollary to this; the govt.
has taken many policy initiatives.
5.3.2 Women Population

The total women population in the district is given below.
Particular Rural Urban Total

Male 4.07 0.57 4.64
Female 3.87 0.53 4.40
Total 7.94 1.10 9.04
As seen from above table, out of the total population of 9.04 lakhs, female population
represents nearly 94.82% of the total population .The coverage of women under government
sponsored schemes are increasing during the last few years
5.3.3 Potential Activities

Apart from undertaking farm based activities such as dairy, sheep rearing and goat
rearing, women took up to non – farm activities like tailoring, chamki embroidery, fur
dolls, basket, paper mach dolls, papad making, pickle making, detergent powder, soap
making, beads mat weaving, bidi making, broom making, leather goods, Earthen ware
pottery, paper plates, cups, napkins, file covers, file boards, brick& tiles, chalk making,
plastic products, reeling, twisting and weaving activities etc.
5.3.4 Business Activities

Among business activities women usually take up activities like vending of fruits and
vegetables, provision stores, tea/coffee shops, tailoring, typewriting and public call offices.
5.3.5 Self Help Groups

One programme which has substantially addressed the credit needs of women, is the Self
Help Group (SHG), introduced by NABARD in 1992 which has well stabilized in the district.
The launching of DPEP & TLC in all the district of the state, exclusively for women
empowerment and the capacity building on the lines of SHGs has provided partnership
[ 74 ]
support among agencies in women development. The Prochesta has subitted a proposal as
SHPI for grant assistance from NABARD, RO, Guwahati. Formation of Prochesta Self Help
Group initiated by ZSS in the Bongaigaon district is as under:
Total Prochesta Group formed : 1575

Total women member : 23,375
Total deposit in banks : Rs. 80.75 lakh
Total group loan sanctioned : 236 nos
Amount sanctioned : Rs.30.29 lakh
In order to give thrust and ensure more share and better participation of women the
following measures may be taken :
Identification, formation and financing of more SHGs with the active participation
of NGOs, bank officials, government officials, educational Institution and other like
minded Institution.
Better implementation of government sponsored programmes like SGSY in the true

spirit of holistic development and qualitative support to the poor women, so as to
encourage and assist women meaningfully to take up income generating activities
with the infrastructure and support assistance of the promotional organizations.
Women oriented REDP with escort and support services be organized and supported
by development agencies, DIC, banks etc.
NGOs and other development agencies may formulate feasible proposals to support
their women members by utilizing promotional and credit assistance available from
NABARD under ARWIND and MAHIMA schemes.
5.3.6 Credit Package for Women
The details of programmes specially designed for lending to Women (both rural and urban)
and Targets and Achievements for the preceding year for coverage of Women as under :
5.4 Suggested Action Points

The strategies for improving quality of lending under different Government
Sponsored Programmes can be taken as under:
Transparency in selection of beneficiaries and key activities.
Timely and adequate financing to actual and needy beneficiaries by banks.
State Government should make concrete plan for backward and forward linkages.
Proper co-ordination for monitoring and supervision by banks and Government agencies.
State Government should give necessary instructions to Sponsoring agencies for
full cooperation with the bankers.
Government subsidy should be available to bankers within the time frame .
Government sponsoring agency should take necessary steps for recovery of loans.
[ 75 ]
CHAPTER VI
PERFORMANCE OF CREDIT AGENCIES
The major credit institutions operating in the district of Bongaigaon consists of 10

commercial banks with 26 branches , 1 RRB with 12 branches , one SCB with 2 branches , and
ASCARD bank with one branch which is not functioning in the district. There are 12 banks at
the end of March 2005 with 40 branches , of which 21 are semi urban and 19 are rural
branches. The performance of the all financial agencies are not upto the mark during the last
4 years due to various unforeseen factors. Due to high overdues and poor recovery most of
the banks are reluctant to extend credit support. This has resulted in lower performance..
The institutional credit needs in the district are mainly met by the commercial banks and
Regional rural bank which have the advantage of the wide spread branch network, higher
deposits, expert staff and higher risk taking capacity in the banking business .However, the
commercial banks and RRB in the district suffer from chronic weakness, inadequate staff
in the interior rural branches.
The district administration should take necessary steps and take stern action against
willful defaulter in the district. The expansion of credit for the SCB is greatly hampered by
weak PACS and high overdues.
01. Deposits.
Sr. Deposits
AGENCY No. Of
No.
Branches 20001-2002 2002-2003 2003-2004 2004-2005
1 CBs 26 25,588.48 35,101.78 34,014.46 37,550.18
2 RRB 12 6,129.45 6,976.03 7784.00 7,096.47
3 SCB 2 1,182.31 1,405.79 1,356.41 1,624.63
Total 40 32,900.24 43,483.6 43,154.87 46,271.28
02. Loans outstanding
Sr. Loans Outstanding

No. of
No. AGENCY
Branches 2001-2002 2002-2003 2003-2004 2004-2005
1 CBs 26 10388.85 7824.73 1763.91 15888.29
2 RRB 12 1407.18 1667.82 1891.60 2102.18
3 SCB 2 147.91 181.56 330.53 324.91
Total 40 11943.94 9674.11 12914.04 18315.38
03. Credit Deposit Ratio
Sr. No. AGENCY 2001-2002 2002-2003 2003-2004 2004-2005

1 CBs 40.60 22.29 31.64 42.31
2 RRB 22.96 23.92 23.99 29.62
3 SCB 12.51 12.92 21.23 20.00
[ 76 ]
Analysis
i) Deposits : The bank wise deposit position as on 31 March 2005 as indicated above
during the last four years showed a continuous increasing from Rs. 32900.24 lakhs to Rs.
46271.28 lakhs during 2001-2002 to 2004-05. However, deposits declined from Rs. 43483.60 lakh
in 2002-03 to Rs 43154.87 lakh in the year 2004-05.
(ii) Loans Outstanding : The loans outstanding also show and increasing trend
during 2003 - -04 but declined during 2002-2003 but again there has been an increase during
2004-2005. The increase has been in smaller scale as compared to deposits. The percent
growth in deposit and loans outstanding was negligible as compared to deposits.
(iii) Credit Deposit Ratio :- The over all CD ratio for the district is unsatisfactory at
22.24% for the year 2002-2003 , 29.92% in 2003-2004 and 39.58% in 2004-05. Various factors
including external factors beyond the control of the banks, high over dues etc. are the main
reasons for the poor CD ratio.
04. Performance to fulfil the National Goals during 2004-2005
Sr. Agency Loans Priority Direct loans Loans to Loans DRI

No. Outstanding Sector to weaker to Loans
Agriculture sections Women
1 CBs 15888.29 1252.87 492.12 910.49 385.30 6.51
2 RRB 2102.18 634.37 134.19 389.32 145.05 -
3 SCB 324.91 6.62 5.62 15.23 6.85 -
Total 18,315.38 0 631.93 1,315.04 537.2 6.51
Analysis :- The overall performance to fulfill the national goals during 2004-2005 by banks
was not satisfactory . Banks have shown keen interest in financing in Agriculture and
allied activities .The performance of CBs, RRB and SCB in lending to direct loans to
Agriculture, weaker sections and women was inadequate during 2004-05.
05. Annual Action Plans - Performance during last 3 years

(Rs. lakhs)
Sr. 2002-2003 2003-2004 2004-2005
Agency
No.
Target Achiev. % Target Achiev. % Target Achiev.. %
1 CBs 994.67 609.92 61 1682.56 727.08 43 931.18 1252.87 134

2 RRB 321.50 272.31 85 379.33 373.47 104 327.51 634.37 193
3 SCB 24.04 52.63 136 33.59 6.19 18 15.71 6.62 42
Total 1340.21 914.86 68 2095.48 1126.74 54 1274.40 1893.86 149
Analysis :- The overall achievement showed a increasing from 2002-2003( 68.00%) and followed
by declining during 2003-2004 (54%) and increased during 2004-05 (148.60%). Though banks overall
performance achievement was less than target set to some sectors but the Annual Credit Plan
target during the year 2004-05 was achieved and quantum wise credit disbursement has improved.
[ 77 ]
06. RECOVERY POSITION :
Sl. 2000-2001 2001-2002 2002-2003

Agency
No Demand Recovery % of Demand Recov. % of Demand Recov. % of
recov. recov. recov.
1 CBs 1668.75 2250.84 13.53 2094.09 241.74 11.54 1909.11 186.40 10.00
2 RRB 345.41 71.42 20.67 313.42 94.62 30.00 334.42 120.89 36.15
3 SCB 80.02 6.19 7.74 81.96 4.96 6.05 164.25 17.79 10.83
4 DLDB - - - - - - - -
Total 2094.18 303.45 14.49 2489.47 341.32 14.00 2407.78 325.08 13.50
Analysis of recovery position:
The overall recovery position of all the banks operating in the district is not satisfactory.
The percentage of recovery during the last three years 2000-2001 , 2001-02 and 2002-03 was
14.49% , 14% and 13.50% respectively. There was a decline in achievement of recovery
during 2000-01 to 2002-03. The recovery position for the year 2004-05 is not available till the
end of August 2005. The position of pending BAKIJAI cases as on 31.6.2003 is 5586 cases
amounting to Rs. 1163.73 lakhs in the district.
The recovery position of the banks was very bad in all respects and the bankers and the
Government line departments have not taken any initiative for recovery drive in the
district. As a result the recovery percentage has not improved and the percentage of
recovery was 13.50% only in the district. The percentage of NPA as on 31.3.2005 is in
commercial banks 54.05%, cooperative banks 16.84% & RRBs 19.38% respectively .The
impact of refinance absorbing capacity of each type of RFI in the district was not
satisfactory.
07. DAP/MOU - RRBs
Financial details at glance as on 31.3.2004

(Rs. lakh)
RRB (PGB)
Sr.
Financial Indicators Target under DAP Achievement %
No.
Achieve.
1 Share capital 3612.81 3128.39 86.58
2 Reserve Fund 49.25 99.25 201.52
3 Deposits 92000.00 86912.89 94.47
4 Borrowings 11306.00 7539.44 66.68
5 Loans Issued 16000.00 12243.77 76.52
6 Loans O/S 41300.00 39579.99 95.83
7 Investment 48178.00 50840.59 105.52
8 Recovery % 65.00 63.00 -
9 Average yield on investment 10.00 9.27 -
10 Average cost of funds 5.30 5.30 -
11 Financial margin 4.70 3.39 -
12 Transaction cost 2478.00 2277.47 -
[ 78 ]
RRB (PGB)
Sr.
Financial Indicators Target under DAP Achievement %
No.
Achieve.
13 % of T.C. TO W.F 2.32 2.31 -
14 Net margin 2.38 1.06 -
15 Profit / Loss (+) 1112.00 (+) 958.82 -
16 Per Employee Business 139.00 133.43 -
17 Per Branch Business 776.00 771.30 -
RRB : Pragjyotish Gaonlia Bank is the only RRB functioning in the district with its 12
branches. The RRB has 169 branches with its Head Office at Nalbari covering 9 districts of
Assam. The overall health of the RRB is weak and it has taken up for restructuring .The
bank has entered into Memorandum of Understanding with the Sponsor Bank on an
annual basis as per NABARD guidelines and the performance in details as mentioned
above may be seen.
STATUS ON SAMIS: The LBR system has not been stabilized in the district of
Bongaigaon. During 2004-2005 except the RRB (PGB), most of the commercial bank
branches have not submitted the LBR- 2 return (40% ) upto June ’04 . As regards the LBR -
3/U-3 the percentage of submission of return upto June 2005 was 90% .Due to poor
response from the banks the LBR- 2 & LBR- 3 have not been complied by LDM. All the bank
in the district have submitted the LBR-1 for the year 2004-2005. Thus there is a need for
improvement in the submission of LBR returns by the banks particularly by commercial
banks in the district so as to compile accurate data on key parameters at the district level
for fruitful and meaningful analysis of the ground level credit flow.
[ 79 ]
CHAPTER -VII
POLICY INITIATIVES
A. Government of India :
Highlights of Union budget 2005-06
Doubling Flow of Agricultural Credit : Commercial Banks, RRBs and Co-operative
Banks have been asked to increase the flow of credit to agriculture by another 30%
during 2005-06. Public sector banks to increase the number of borrowers by another 50
lakh. To ensure adequate credit availability to farmers so as to achieve 4% growth in
agriculture sector during the X Plan period, GoI had announced in 18 June 2004 a
credit package envisaging minimum 30% annual growth in credit flow to agriculture
over a period of 3 years from 2004-05 to 2006-07 for doubling of agriculture credit.
Assured irrigation facilities : Govt. of India has announced creation of assured

irrigation facilities for additional 10 million hectares of area over a period of five
years from 2006-2011.
National Horticulture Mission : Govt. of India has desired diversification of

agriculture from food/other crops to horticultural crops, dairy, poultry, fisheries,
pulses and oilseeds. In this backdrop, National Horticultural Mission was launched
on 01 April to ensure an end to end approach having backward and forward
linkages covering research, production, post harvest management, processing and
marketing, under one umbrella, in an integrated manner.
Water use efficiency Sprinkler / Drip : To ensure water-use efficiency in

agriculture, micro-irrigation technology, comprising drip and sprinkler irrigation,
is to be promoted on a large scale. The coverage is to be increased from 1.2 million
hectares at present to 3 million hectares by the end of Tenth Plan and to 14 million
hectares by the end of Eleventh Plan.
Rural Knowledge Centre : Government of India has announced its support to 'Mission
2007' for setting up of Rural Knowledge Centres in every village. Mission 2007, a national
initiative launched by an alliance comprising nearly 80 organisations including civil
society organisations, was launched on the recommendation of National Commission on
Farmers for setting up Rural Knowledge Centres all over the country using modern
information and communication technology (ICT). NABARD has earmarked Rs. 100
crore out of RIDF for the purpose.
Cluster approach for Handloom Sectors : The GoI announced to adopt cluster
development approach to promote production and marketing of handloom products.
In the first phase, 20 clusters is proposed to be developed. For the welfare of
handloom weavers, the coverage of life insurance scheme will be increased to 20
lakh weavers in next two years. The coverage of health insurance package for
weavers is proposed to be increased to two lakh weavers.
[ 80 ]
Backward Regions Grant Fund : Govt. of India has set up Backward Regions Grant
Fund for development of backward districts with the initial allocation of Rs. 5000 crore
during 2005-06, and an equal amount would be allocated every year in the next four
years. Based on certain socio-economic variables, 170 districts have been identified as
backward district. Consequent upon the establishment of the Fund, the existing
Rastriya Sam Vikas Yojna (RSVY), envisaged to end in 2006-07, will be wound up with
suitable transition arrangements to protect the districts now covered under RSVY.
Outlay versus Outcome : In order to improve the quality of implementation and

enhance the efficiency and accountability of delivery mechanism, GoI has decided to put
in place a mechanism to measure the development outcomes of all major programmes. It
would be ensured that programmes and schemes are not allowed to continue indefinitely
from one plan period to next without an independent and in-depth evaluation.
Union Budget has proposed to enhance the annual target of credit linkage to 2.5 lakh
SHGs during 2005-06.
Other Govt. Initiatives

Bio-fuels : To promote commercial cultivation of the Tree Borne Oilseeds (like
Jatropha, Karanj) and its processing, provision of adequate incentives have been
made. The Govt. of India has assigned NOVOD Board under the Ministry of
Agriculture, the responsibility for implementation of back ended credit linked
subsidy scheme for promotion of Tree Borne Oilseeds during the Xth Five Year Plan.
The scheme envisages 50 % as bank loan, 20 % beneficiary's share and 30 % subsidy.
Agri Clinics and Agri Business Centres (ACABC) : The Ministry of SSIs, GoI have
identified nine activities, out of 20 enterprises covered under ACABC as eligible for
coverage under the Credit Guarantee Fund Scheme for Small Industries. The eligible
nine activities are : Maintenance and Repair of Agricultural implements & machinery
including micro irrigation systems, Agri Service Centres, Seed Processing Units,
Tissue culture, Production of Bio fertilizer, Bio-pesticides, Bio control agents, Honey
and Bee Product Processing Units, Feed Processing and Testing Units, Setting up of
information technology kiosks in rural areas for access to various agricultural related
portals, Setting up of Cool Chain from the farm level onwards.
Agri - Export Zones (AEZs): To take advantage of the new international trade
environment, GoI, through Agricultural and Processed Food Products Export
Development Authority (APEDA), had earlier established 48 AEZs. During the year,
12 new AEZs were approved by APEDA covering 36 new districts for promoting 11
crops which include spices, cashew, tea, fruits, medicinal plants and pulses.
Stepping up Credit to Small & Medium Enterprises (SMEs) : A policy package

to step up credit flow to SMEs from Rs. 67600 crore in 2004-05 to Rs. 135000 crore by
[ 81 ]
2009-10 was announced. Public Sector Banks have been asked to fix their own
targets to achieve a min. of 20% annual growth in credit flow.
B. State Government Initiatives
Power Sector Reform : State Govt. Has decided to strengthen and augment the
power sector with particular emphasis on rural electrification and improvement of
distribution network. 3100 transformers to be installed. A Micro Hydel Project is
proposed to be installed in Karbi Anglong.
Road connectivity : Under AACP, 1000 kms of rural roads to be upgraded to all
weather roads including conversion of 285 nos. of STP bridges to RCC and
rehabilitation of 1000 km link / feeder road.
Education : Computers are to be provided to 230 schools under Rajiv Gandhi

Computer Literacy Programme.
Health : Govt. has decided to set up Six Regional Diagnostic Centres with modern
equipments for diagnosis, 21 Community Health Centres.
Drinking water in rural areas : A special programme to supply drinking water in

remote rural areas of the state has been launched under the Chief Minister’s
package programme “Mukhya Khowa Pani Jogan Abhijan” to install 18600 spot
sources. The Govt. proposes to cover 200 villages and 5825 partially covered
habitations by safe drinking water.
Agriculture :
State agriculture policy focuses on assured irrigation, diversification of agriculture,

marketing facilities for agriculture produce, agricultural credit, crop insurance and
dealing with the agricultural sector as an area with maximum potential for
employment generation.
For mechanisation of agriculture, 800 tractors to be procured and given to SHGs on

50 per cent cost sharing basis.
During the project period of AACP, 16000 shallow tube wells and 20000 low-lift
pumps to be installed. 20000 hectares of agricultural land to be covered by micro
watershed. Besides, 750 tractors and 1500 power tillers to be distributed.
Decentralized agriculture extension to be piloted in 11 districts along with

development of 50 haats and 24 rural wholesale markets in agriculture surplus area.
Integrated development of horticulture through active participation of SHGs under

Technology Mission.
Irrigation : Additional irrigation capacity of 50202 hectares to be created during

2005-06. For efficient irrigation and maintenance of irrigation schemes, public
participation would be encouraged.
[ 82 ]
Dairy Development : For promotion of dairy in the state, Govt. has decided to
promote formation of 250 Dairy Cooperative societies and 250 SHGs.
Fisheries : 3000 hectares of Beels, 1200 hectares of farmers’ ponds along with
activities like development of community tank, integrated fish culture and fish seed
production to be developed under AACP.
Self Help Groups : Recognising the importance of SHGs in the development

process, Govt. has decided to focus on promotion and support to SHGs. All products
made and sold by SHGs have been exempted from tax on sales.
Employment generation :
Priority to be schemes and projects having relatively higher capital output and
employment investment ratios.
Formulate and implement specific employment generation schemes like Kalpataru.

Self employment to be provided to 50000 unemployed youths.
All products made and sold by PMRY units have been exempted from tax on sales.
Small and Cottage Industries : Generation of employment among the artisans by
improving their traditional skills, standardisation of their products and linking up
with the market. Modern skills and tools to be provided to artisans and craftsmen.
Mission to Generate Employment & Stimulate the Economy of Assam (2005-08)

The Mission is primarily aimed at generating substantial and sustainable employment
opportunities in the state within a short time frame, i.e. 2005-08. It is also aimed to address
certain aspects that have long term foundation impact on the economy of the state.
Increasing income levels in agriculture sector by according greater emphasis on

promotion of cash crops, development of agricultural infrastructure, accelerated
development of dairy Sector and creation of Cluster of farms and agro based enterprises.
35000 ha additional area is proposed to be covered under horticultural crops, 6000 ha
medicinal and aromatic plants, 5000 ha under Jatropha & Pongamia (bio-diesel) and
8000 ha bamboo cultivation. The target is to generate at least 1 lakh sustainable direct
employment opportunities in the state during 3 year tenure of the Mission.
Stimulating development of Handloom and handicraft through improved designs,

better manufacturing techniques, and increase in mechanisation to generate
employment and additional income for around 50000 weavers/artisans.
Promoting tourism to attract domestic and foreign tourists by providing financial

and technical stimulus package to facilitate private enterprises to develop 5 tourism
circuits including 6 new private-sector Tourist Resorts/Inns.
[ 83 ]
Stimulating development of viable Small and Medium Enterprises (SMEs) through

financial and technical stimulus package. It is estimated to create 2000 direct and
sustainable job opportunities.
Development of about 250 acres of land to attract industrial investments and other
entrepreneurs.
Development of Manpower Skills by imparting technical vocational training to

qualified youth.
Making provision for Primary Health care Services.

Successful employment generation programmes to be given due cognizance.
Promoting Public-Private partnership model.
C. NABARD / Reserve bank of India
Flow of Credit to Agriculture
Keeping in view the realisation amongst bankers regarding increasing business
opportunities in financing agriculture, banks were urged to step up credit to
agriculture.
RBI has set up an Expert Group to formulate strategy for increasing investment in
agriculture.
The limit on loans to farmers through the produce marketing scheme has been
increased from Rs.5 lakh to Rs.10 lakh under priority sector lending.
Special Agricultural Credit Plan (SACP) was extended Private Sector Commercial
Banks. These banks were advised to fix the SACP target showing a growth rate of 30
% over disbursement made during 2004-05.
Banks were also advised to increase their disbursements to small and marginal
farmers to 40 percent of their direct advances under SACP.
Banks were allowed to waive margin / security requirement for agricultural loans
up to Rs. 50000.
NABARD has revised the Model Kisan Credit Card scheme with a view to providing
the comprehensive credit requirements of farmers covering term credit, working
capital for agriculture and allied activities and a reasonable component of
consumption needs under a single window.
Operational guidelines for implementation of Debt relief Measure were issued to

Co-operative Banks and RRBs.
Liquidity support scheme for Cooperative Banks and RRBs for supporting
conversion/reschedulement of farmers' dues at ground level under the scheme
"farmers in distress" and "farmers in arrears" was announced.
[ 84 ]
143 model bankable projects for various investment activities were prepared and
circulated to banks .
Micro-finance
NABARD has set a target of linking additional 5.85 lakh SHGs to banks by
end-March 2007.
NABARD launched a pilot project viz. Micro Enterprise Promotion by SHGs and
e-Grama financing Joint Liability Groups and Rythu Mithra groups.
The Reserve Bank has enabled non-governmental organisations (NGOs) engaged in

micro-finance activities to access ECBs up to US $ 5 million during a financial year
for permitted end-use, under automatic route, as an additional channel of resource
mobilisation.
Modalities for allowing banks to adopt the agency model by using the infrastructure of
civil society organisations, rural kiosks and village knowledge centres for providing
credit support to rural and farm sectors and appointment of micro-finance
institutions (MFIs) as banking correspondents are being worked out by RBI.
Credit Flow to Small Scale Industries

The Credit Information Bureau of India Ltd. (CIBIL) is working out a solution that
would provide comprehensive credit reports on SSIs.
Existing guidelines on financing small scale sector, debt restructuring, nursing of

sick units, etc. is being reviewed with a view to rationalising, consolidating and
liberalising them.
Under a scheme to be drawn up by the RBI, banks will be encouraged to establish

mechanisms for better coordination between their branches and branches of SIDBI
which are located in 50 clusters identified by the Ministry of Small Scale Industries,
Government of India.
Units with investment in plant and machinery in excess of SSI limit and upto Rs. 10
Crore has been categorised as Medium Enterprises.
NABARD would also develop 50 additional clusters in partnership with other

agencies and take up intensive development of five clusters over a period of five
years, exclusively with Bank’s involvement focussing on agro-based, food
processing, manufacturing / industrial activities, handlooms and handicrafts.
Agriclinics / Agri business centre :

Margin money and collateral security requirement for bank loan up to Rs. 5 lakh
under ACABC scheme has been waived.
[ 85 ]
Banks were advised that shortfall in margin money/down payment by the borrower
can be supported out of Soft Loan Margin Money Assistance Fund of NABARD
subject to a maximum of 50 % of margin prescribed by banks.
Rate of interest on refinance was fixed at the lowest slab irrespective of size of loan.
Soft Loan Margin Money Assistance Scheme has been de-linked from refinance
extended in cases of loans beyond Rs. 5 lakh.
Six months' expenses for setting-up of units were allowed to be capitalised and
included in the project cost.
ITC’s e-Choupal :
The e-choupal, promoted by ITC Ltd., a multi product agro-business corporate, is an
information technology enabled initiative aimed at providing guidance to farmers
through readily accessible on-line knowledge on scientific farm practices, weather
conditions and relevant market information including real time market. They serve
about 4-5 contiguous villages and are managed by leading farmers in the village
called "Sanchalaks". More than 5200 e-choupals, covering around 20000 villages have
been established. NABARD has supported a project entitled "Diagnostics for
e-choupal" by ITC Ltd. in Madhya Pradesh with a grant assistance of Rs. 9 lakh. The
objective of the project is to develop an IT based practical handbook and diagnostic
tools for production and protection of major crops of the region with the help of
experts from Agricultural Universities. ITC Ltd., with this support, has brought out
video films in CDs covering best practices on soil sampling, seed germination test
and soyabeen cultivation for the benefit of farmers. NABARD, on a pilot basis, has
sanctioned Revolving Fund Assistance to 20 identified Sanchalaks of e-choupal.
Mahindra Subhlabh Services :

In order to develop the tie ups with banks for financing farmers, NABARD has
launched a scheme for financing FSCs in collaboration with Mahindra Shubhlabh
Services Ltd., a wholly owned subsidiary of Mahindra & Mahindra Ltd.
Agri-Export Zones :
During the year 2004-05, 12 new AEZs were approved by APEDA covering 36 new
districts for promoting 11 crops which include spices, cashew, tea, fruits, medicinal
plants and pulses. Total number of approved AEZs has gone up to 60, spread over 20
states. AEZ covering eight districts of Assam for Ginger has been approved by Govt.
of India. The total investment committed under the AEZ programme by all agencies
stands at Rs. 1724 crore, including private investments of Rs. 970 crore.
Promotion of Bamboo cultivation :

NABARD aims at developing bamboo farming, processing and marketing as a
mainstream activity by changing the ‘forestry mindset’ to ‘farm mindset’. NABARD
[ 86 ]
has constituted a ‘Bamboo Cell’ at its HO and prepared a document highlighting

policy & promotion, financial assistance, capacity building and networking.
Banking plan to boost bamboo cultivation in different states have been prepared. It
is envisaged to provide credit support for development of bamboo over an area of 1
lakh hectares with an estimated investment of Rs. 200 crore annually.
Medicinal and Aromatic Crops :

NABARD has prepared state-wise directories of manufacturers and traders and
formulated 45 bankable model schemes of high demand species. NABARD is promoting
the cultivation of MACs in AEZs. The unit cost / scale of finance for MAC cultivation
has been fixed. NABARD provides cent per cent refinance at the lowest slab.
To ensure a stable market and remunerative prices for MACs grown by farmers,
NABARD initiated dialogues with corporate houses like Reliance Life Sciences, GUFIC,
Keva Biotech, Natural Remedies, Zandu Pharmaceuticals, Healthy Herbals, etc.
Contract Farming :
The National Agricultural Policy of the GoI and the Inter Ministerial Task Force on
Agricultural Marketing Reforms have recognised the increasing importance of
contract farming in agri-business.
NABARD has developed a special refinance package for contract farming

arrangements (within and outside AEZs) aimed at promoting increased production
of commercial crops and creation of marketing avenues for farmers.
NABARD has sponsored nearly 11000 Farmers’ Club as on 2004-05.

Joint Liability Groups has been launched based on the learnings from the
SHG-Bank linkage programme. It will facilitate financing tenant farmers, oral
lessees, share croppers and small & marginal farmers and enable them to be
released from the clutches of money lenders.
Special Package for NER

Prescribed eligibility norms relating to overdues/NPAs for sanction of ST credit
limits for SAO to cooperative banks and RRBs was not insisted upon.
Concessional rate of interest (at present 5.25 %) to SCBs on ST (SAO) credit limits &
ST weavers' finance and cent per cent refinance for thrust areas & NFS activities.
Relaxed norms of NPA and restricted refinance (for availing refinance) for the
benefit of CBs, RRBs and Cooperative banks.
The rate of interest on refinance on investment activities was fixed at the lowest
slab (at present 6 %) for all agencies and for all activities.
NABARD provided grants of Rs.10.20 lakh to Indian Institute of Bank Management,

Guwahati to cater to the training needs of personnel of all banks in NER.
[ 87 ]
CHAPTER -VIII
RESPONSE FROM FARMERS
8.1 Introduction
The economy of Bongaigaon District is basically agrarian in nature and the farmers of the
district dependent on agriculture. With the ever growing population and continuing pressure
on agricultural land, it has now become necessary to find practical solution for the poor
farmers in the district. The information collected from the 50 farmers, revealed that most of
the farmers are having an average of 3 bigha to 50 bighas of cultivable land .Farmers are
mostly small and marginal farmers and agriculture offer a vast potential for generating large
quantities paddy. There is scope to develop allied activities also. The farmers are willing to
cultivate Bamboo, Safed Musli ,Medicinal and Aromatic plants, Jatropha and species if
proper guidance /training etc. from the concerned line departments.
8.2 Analysis of the information/data received from the farmers

As discussed with the farmers regarding availability of the infrastructure ,marketing
support, credit and extension services etc., they stated that they are completely dependent
on natural water resources and are not getting any support from the Government. Lack of
adequate irrigation facilities, inadequate extenuation support, insurance coverage against
natural calamities, control of flood ,erosion of land by river , cold storage facilities,
marketing arrangement and provision of timely credit support to farmers by credit
institutions in the district are same of issues to battened to by concerned government
departments and banks. The Farmers also stated that they are not aware of Government
Sponsor Programmes, issue of KCC, SCC, various benefit from the Agriculture Department,
Animal Husbandry, District Fishery Department, FFDA, Sericulture, Handloom and
Textiles, Irrigation Department etc. After harvesting, the produce is sold at the local
markets and as result poor farmers are not getting expected actual price.
The farmers expect that the government should initiate some measures like relaxation of
documentation on the issue of the KCC, arrange for distribution of fertilizers, insecticide,
seeds, provide marketing facilities, establishment of rural haats, fix procurement price on
produces locally , procure the produce through FCI, provide Irrigation facilities and haste free.
Recommendation/Suggestion
The Agriculture Department has to take initiative for implementation of innovative

schemes, educate the farmers offering by free training, supply of good variety seeds for
Bamboo cultivation , Safed Musli, Vanilla, Ginger, Banana, Patchouli, Flowers, Spices etc.
For successful implementation of schemes, Government line departments should take

initiative to create infrastructural facilities like, Market connectivity to enable
farmers to get best prices, Construction of Rural godowns, Marketing infrastructure.
The financial institutions should take proper initiative towards financing of crop loans,
issue of KCC, formation of SHGs and financing other allied economic activities to farmers.
[ 88 ]

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Chapter V Role of Informal Credit Delivery System 71

Chapter VI Performance of Credit agencies 76

Annexure II An Overview of Ground Level Credit Flow - Agency wise

The undivided Bongaigaon district is situated in a humid sub-tropical climate. There is

Sector/Activitywise Summary of Potential and

Financial Requirements for 2006-2007

Plantation and Horticulture

Forestry and Wasteland Development

Renewable source of energy and waste utilization

DISTRICT PROFILE AT A GLANCE

(As on 31 March 2005 )

1 Name of the district Bongaigaon

Geographical area (sq. km) 2510 sq. km.

8 Size of holdings No. (%) Area (ha.) (%)

(13) Major food : Rice Wheat, Peas

SUMMARY OF BROAD SECTOR-WISE PLP PROJECTIONS

FOR THE YEAR 2006-07

1 CROP PRODUCTION 317.95

TERM INVESTMENT FOR AGRICULTURE AND ALLIED

TOTAL INVESTMENT UNDER AGRICULTURE AND

4 NON FARM SECTOR 515.70

5 OTHER PRIORITY SECTOR 1200.15

6 TOTAL PRIORITY SECTOR (3+4+5) 2480.25

SUMMARY OF DETAILED SECTOR-WISE PLP PROJECTIONS

1 Minor Irrigation 36.86

2 Land development 17.14

3 Farm Mechanisation 80.00

4 Plantation and Horticulture 28.98

6 Forestry and Wasteland Development 10.89

11 Storage Goodman/Market Yard 10.50

Renewable source of energy and waste

13 Bullock & Carts 1.04

Total Term Loan 446.45

14 Crop loan 317.95

Total Agricultural Credit 764.40

15 Non- Farm Sector 515.70

16 Other Priority Sector 1200.15

Grand Total (Total Priority Sector i.e.

Credit Planning in India received focussed attention in development planning after

the identified potentials. NABARD has been constantly endeavouring to introduce

2.1.2 Availability and gaps in infrastructure and support services

However, emphasis is being made to remove the above constraints by Agriculture

2.1.4 Review of Ground Level Credit

2.1.5 Suggested action points:

Govt. Line department to take initiative to create infrastructural facilities in the

All eligible farmers to be issued KCC by banks.

2.1.6 Other Issues

Write up on KCC and RKBY

II. INVESTMENT CREDIT FOR AGRICULTURE AND ALLIED SECTOR

2.2.2 Availability and gaps in infrastructure and support services

A nodal agency in the district to co-ordinate the various minor irrigation

Adequate budgetary allocation by the government for infrastructural development

2.2.4 Review of Ground Level Credit

Year Amount (Rs. lakh)

To formulate a scheme for surface irrigation like LLP etc.

To concentrate on development of infrastructure and extension services relating to

Priority need to be given for completion of ongoing projects and improving

Keeping in view the abundance of surface water and viability of the MI

To extend loan facility to needy and genuine farmers for installation of

2.3 Land Development