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AP: NABARD’s Initiatives in Andhra Pradesh during 2020-21

The National Bank for Agriculture and Rural Development (NABARD) has been playing a significant role in the socio-economic development of the State of Andhra Pradesh through financial and non-financial interventions.

Despite the world having been plagued with the COVID-19 pandemic for the entirety of the year, NABARD Andhra Pradesh Regional Office, given the silver lining provided by the agriculture sector in these bleak times, disbursed ₹32,844 crore, up from ₹27,992 crore the previous year – a growth of 17%.

Refinance to Rural Financial Institutions

₹22,065 crore was extended as refinance to the banks for crop production and other agricultural activities. Special Liquidity Fund of ₹2,500 crore was provided to Regional Rural Banks (RRBs) and Rural Cooperative Banks (RCBs) during the COVID-19 pandemic. ₹623 crore was also released directly to the RCBs for their multi-purpose credit requirments.

Support for Infrastructure Development

NABARD continues to play a significant role as a partner in the development initiatives of the State. In order to augment the resources of the State Government for rural infrastructure creation, ₹1,794 crore was sanctioned under RIDF during the year and ₹1,361 crore was released towards augmentation of basic infrastructure facility in 21,205 government schools under GoAP’s flagship Mana Badi Nadu Nedu scheme, construction and upgradation of 94 rural health centres and construction of 1,714 Anganwadis across the state.

To supplement the efforts of per drop more crop component of Pradhan Mantri Krishi Sinchayee Yojana, NABARD released ₹616 crore under Micro Irrigation Fund (MIF). Besides, NABARD sanctioned ₹1159 crore to AP Road Development Corporation (APRDC) and disbursed ₹408 crore under NABARD Infrastructure Development Assistance (NIDA) for widening and strengthening of 233 rural roads. NABARD continued its support to the Chintalapudi lift irrigation project in West Godavari and Krishna districts and so far disbursed ₹1,118 crore under NIDA against the sanctioned amount of ₹1,931 crore.

Support for Polavaram Irrigation Project

NABARD has sanctioned ₹10,466 crore towards Polavaram Irrigation Project, against which ₹9,897 crore has been disbursed so far to GoAP under Long Term Irrigation Fund (LTIF).

Atmanirbhar Bharat – Transformation of PACS as Multi Service Centres (MSC)

Under PACS as MSC Special Refinance Scheme, in synergy with Agriculture Infrastructure Fund (AIF) of GoI, NABARD sanctioned refinance of ₹2,021 crore in respect of 2,587 PACS for establishing various agri-infrastructure facilities in convergence with Rythu Bharosa Kendra (RBK) scheme of GoAP.

Support to Federations for Procurment and Marketing

NABARD has supported AP State Civil Supplies Corporation Ltd. (APSCSCL) for procurement operations during 2020-21 with disbursement of ₹7,100 crore for working capital requirements. AP State Seeds Development Corporation and AP MARKFED were also supported with disbursement of ₹200 crore and ₹172 crore respectively.

Special Schemes to Augment Credit Flow to thrust areas

NABARD has also formulated concessional special refinance schemes for various purposes which include conversion of PACS as Multi Service Centres (MSCs), supporting beneficiaries in watershed and wadi project areas, promotion of WASH (Water, Sanitation & Hygiene) activities and support for micro food processing units. To provide credit support to the farmers in watershed and Maa thota project areas, NABARD prepared banking plans to the tune of ₹132 crore and ₹86 crore respectively.

Towards an Ecosystem to Promote Collectivization of Producers and Nurture Sustainable Collectives

In line with Government of India’s vision and State Government’s thrust on mitigating farmers’ issues, NABARD promoted and nurtured 293 Farmer Producer Organizations (FPOs) in Andhra Pradesh. These FPOs comprise of more than one lakh shareholding members, who are mostly small and marginal farmers. NABARD has also facilitated credit linkage of FPOs through its subsidiary NABKISAN Finance Ltd. and other financial institutions.

NABARD also facilitated aggregation of agricultural produce from FPO members and expanding of marketing avenues through market linkages, including through Kisan Rail. Besides, skill training on packaging of produce was also provided to ensure increase of shelf life of agricultural commodities, which will enable the FPOs to foray into agri exporting.

Livelihood Promotion, Skilling and Facilitating Technology Adoption

NABARD sanctioned four new Maa thota projects with grant assistance of ₹10.32 crore, which will benefit more than 2,000 tribal families and create sustainable livelihood opportunities. NABARD also sanctioned two new watershed projects and released grant of ₹2.71 crore towards climate proofing and soil conservation activities. For undertaking promotion and developmental initiatives in the farm sector, NABARD provided grant support of ₹73 lakh under its Farm Sector Promotional Fund for various farm sector activities, which included support for 8 innovative projects and exposure visits and capacity augmentation for farmers.

Under its support to development of Micro Enterprises, skilling rural youth and promotion of livelihoods, NABARD has supported more than 100 programmes aimed at benefitting 6,000 rural beneficiaries.

Geo-tagging of Agri Storage Infrastructure

NABARD, through its subsidiary NABCONS, embarked on the prestigious assignment of Geo-tagging of Agri Storage Infrastructure (ASI) in the entire country as envisaged by the GoI, with 3,994 ASIs geo-tagged in the state of Andhra Pradesh.

Support for Marketing

NABARD organized the 3rd edition of NABARD Crafts Mela at Vijayawada from 12 to 21 March 2021. Around 120 artisans, craftsmen and SHG women from across the country and all 13 districts of Andhra Pradesh exhibited handicrafts, handlooms and various other products in the mela. NABARD has been sanctioning rural haats, rural marts, promoting rural innovations and supporting artisans by conducting and sponsoring their participation in state/national level exhibitions/melas. Besides, two exhibitions were also sponsored in Srikakulam and Kadapa districts. As part of innovative marketing strategy, 10 Mobile Vans were sanctioned to FPOs for marketing of agricultural produce under Rural Mart Scheme.

Support for Microfinance and Formation, Nurturing and Credit Linkage of JLGs

NABARD is providing incentive for promotion and credit linkage of JLGs, which are composed of small and marginal farmers, as well as tenant farmers. NABARD sanctioned grant of ₹4.21 crore and released ₹2.87 crore to various agencies during the year for livelihood and micro enterprise development programmes, promotion and nurturing of JLGs and for capacity building of various stakeholders working in the micro finance sector. 103 sensitisation and capacity building programmes were also organised at district level for bankers, NGO field workers, SHG leaders and various stakeholders to give a thrust to the micro finance sector.

Towards Supporting Banking services “Reaching the Unreached”

NABARD has sanctioned grant of ₹14.16 crore and disbursed ₹8.45 crore towards financial inclusion initiatives in the State such as conducting 7,000+ financial and digital literacy camps, 280 street plays on financial literacy awareness, setting up centres for financial literacy, supporting mobile demonstration vans, supporting micro-ATMs for doorstep banking, distribution of RuPay Kisan cards, onboarding RRBs and RCBs to BHIM UPI platform, etc. The role of NABARD-supported Mobile Demonstration Vans hosting ATMs was widely appreciated in addressing the cash crunch created due to lockdowns and panic buying on account of COVID-19 pandemic.

Strengthening the Rural Cooperative Sector & Computerisation of PACS

NABARD with an objective to improve the skill and capacity of the workforce have been supporting training programmes for the staff of APCOB, DCCBs and PACS, providing infrastructure support to PACS, and for setting up of PACS Development Cells in DCCBs and for human resource capacity building measures of cooperatives. Towards these activities, ₹129 lakh grant support has been extended during 2020-21 under Cooperative Development Fund.

Further, NABARD has sanctioned grant of ₹5 crore towards computerisation of all the PACS in the state and ₹66 lakh towards setting up of Business Development and Product Innovation Cell in APCOB. Besides, NABCONS, a wholly-owned subsidiary of NABARD, has recently submitted a report on Revival of Cooperatives in Andhra Pradesh to the GoAP for consideration, with suggestions to strengthen the cooperative structure in the state.

Credit Potential Assessment

NABARD in its State Focus Paper has assessed credit potential of ₹2.31 lakh crore for Andhra Pradesh under priority sectors for the year 2021-22, which was released on 26 March 2021 in the State Credit Seminar held at AP Secretariat, Velagapudi, with Shri Kurasala Kannababu, Hon’ble Agriculture Minister and other senior GoAP officials and bankers present.

Climate Change Interventions

NABARD released ₹38 lakh under Adaptation Fund towards climate change adaptation project for development/restoration of mangrove plantation in coastal areas and livelihood for fishermen in 3 villages of Krishna District which has a project outlay of ₹4.14 crore. Besides, to increase awareness, one-day awareness meet on climate resilient agriculture practices was conducted at Vijayawada with participation of FPO members and farmers pursuing organic farming.

Other Innovative Initiatives

NABARD has embarked on Sanitation Literacy Campaign, with 113 Sanitation Literacy Programmes involving 5,000 individuals across the state conducted during the period 02 Oct 2020 to 26 Jan 2021.

NABARD launched “MY PAD MY RIGHT”, a unique developmental initiative which aims to make an impact in the area of rural menstrual hygiene by empowering rural women to take up manufacturing of sanitary pads at their own level. The livelihoods programme, which will provide one sanitary pad making machine to SHGs at district level on a demonstrative basis, is being undertaken in Vizianagaram district. The programme is being executed through NABFOUNDATION, a Section 8 Not for Profit subsidiary of NABARD for undertaking innovative projects in a collaborative mode with all interested stakeholders.

NABARD entered into MoUs with State Bank of India and Andhra Pragathi Grameena Bank for collaborative approach to enhance rural prosperity through convergence of institutional lending and ongoing developmental initiatives.

Way Forward

NABARD is committed to help unlock the potential contained in rural Andhra Pradesh and further contribute to the growth story of Andhra Pradesh in the years to come, said Sri Sudhir Kumar Jannawar, CGM, NABARD’s AP Regional Office.

 

 

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