Summer Project

Identifying The Scope For Project

And Corporate Lending In Ajmer,
Alwar And Tonk Districts Of
Rajastan

FOR

KOTAK MAHINDRA BANK

By

Samartha J R

Post Graduate Programme in Agri-Business Management

National Institute of Agricultural Extension Management, Hyderabad
 CERTIFICATE
This is to certify that Mr.Samartha J R, a bona-fide student of Post Graduate Programme
in Agri-Business Management (2005-2007 batch), MANAGE, Hyderabad worked as a
summer trainee in your organization from the period (April 17-June 17, 2006). He has
successfully completed his summer project titled “Identifying the scope for Project and
Corporate lending in Ajmer Alwar and Tonk Districts of Rajastan” towards the partial
fulfillment of his requirements for the course.
I wish him all success in future.

(Dr. B.D Tripathi)

Principal Coordinator
PGPABM
MANAGE, Hyderabad

2
 DECLARATION
This is to declare that, I Samartha J R, a student of Post Graduate Programme in Agri-

Business Management (2005-2007 batch), MANAGE, Hyderabad, have given original

and authentic data, information and maintained full confidentiality to the best of my

knowledge in the project report titled “Identifying the scope for Project and Corporate

lending in Ajmer, Alwar and Tonk Districts of Rajastan” and that, no part of this

information has been used for any other assignment but for the partial fulfillment of the

requirements towards the completion of the said course.

Samartha J R

PGPABM 2004-06

MANAGE, Hyderabad.

3
 Acknowledgement
I owe a great deal to MANAGE for laying the foundation to my study in the field of
business management.

I would like to express my earnest gratitude and thanks to Dr. B.D Tripathi, Principal
Coordinator, (PGPABM, MANAGE) for his support and kind blessings. I am also
thankful to Dr. K. H Vedini (Batch Coordinator) for her support.

I am grateful to KOTAK MAHINDRA BANK for providing me the opportunity to work on

this project. My experience from this project has certainly broadened my knowledge
arena by introducing me to the practical problems that one faces in the field as the
primary link between an organization and its clients. It has also helped me to learn how
to tackle problems and also how to deal with different people, from different walks of life.

I earnestly thank Ms. Jhuma Kundu for her support, guidance and suggestions made at
different stages of the project which have helped me in successfully completing this
project.
I am also thankful to Mr. Shambu Singh and Mr. Shivkumar for their guidelines and
suggestions for developing a framework for this project.
I would also like to thank the district agricultural departments, Bank officials, Kotak staff
in Rajastan and all the respondents, for the help they provided me.
Finally I would like to thank all my friends for their support in one way or the other and
good wishes for my project.

Regards,

Samartha J R

4
 TABLE OF CONTENTS

S.NO CONTENT PAGE.NO

1 Executive Summary 6

2 Introduction 7

3 Agriculture in Rajastan 7

4 Agro Industry in Rajastan 8

5 Agriculture Lending scenario in Rajastan 10

6 NABARD Schemes in Rajastan 12

7 Research Methodology and Objectives 14

8 17
Ajmer District

9 Alwar District 30

10 Tonk District 42

11 Strategies of other Banks 48

Limitations for Large Agricultural Lending in the

12 49
three selected Districts

13 Strategies for the three selected Districts 49

14 End Note 50

15 Annexure (questionnaires Used) 51

5
 EXECUTIVE SUMMARY
This report is about the project “Identifying the scope for Project and Corporate lending
in Ajmer, Alwar and Tonk Districts of Rajastan” carried out in the three mentioned
districts of Rajastan.

The agriculture in Rajastan state is largely limited in its scope because of continuous
drought in most of the districts. So the state government is constantly trying to improve
the agricultural situation in the state by several Irrigation projects and schemes meeting
the farmer’s credit requirement.

The Agro industry sector is relatively a new sector and development of this sector is
comparatively a recent phenomenon. It can be easily said that still efforts are needed
from the government’s side. A plan for the food Parks in the State is a good effort in this
direction.

The government has a policy for doubling the agriculture credit in three years. With this
policy of the government many NGOs and private institutions will come up in near future
and Banks have an opportunity do more of the institutional lending in Rajastan.

In Ajmer district because of drought Agricultural lending has been severely effected and
only 62% of the targeted lending has been achieved. The government is trying hard to
support agriculture by providing organizational support in the district and Banks have an
opportunity here. Other Potential activities for large agricultural lending in the district are
Poultry and Rose cultivation.

Agriculture in Alwar is mainly based on dryland cropping. There are farmers who have
large holdings but have no idea about what to do with the land. Recently some have
planted Aonla, which has some promise for large agricultural lending along with the
Mango cultivation in the district. 70% of the lending by Banks in the rural areas is only
crop loans and Term loans.

Tonk District is one of the most backward districts of Rajastan. There is no large
Agricultural activity. Recently district got the facility of Irrigation and crops are grown in
fragmented land. Most of the lending is through KCC and Kisan shakthi, other than this
term loans have been sanctioned for tractors and minor irrigation projects.

So the main strategies for the bank can be Targeting individuals rather than a particular
activity expect for poultry in Ajmer. Institutional lending, expected to prosper in near
future. Along with lending proposals, Project proposals for farmers who have large
holding. Subsidies from NHB and NABARD, have significant impact as far as the
acceptance of the loan is concerned in all the three districts. Food Parks, offer good
scope for corporate and industrial lending in near future with food parks expected in
Kota, Jodhpur and Sriganganagar.

6
 INTRODUCTION
Rajasthan has exhibited spectacular progress in several areas like harnessing of mineral
resources, development of transport and communication, and the production of energy
resources but the rate of progress and plans of economic development have been slowed
to a large extent by a parallel growth of human population and livestock. Human
resources are, therefore, to be geared into the channel of economic progress while taking
care to arrest their future growth-rate.

The agriculture in the state is largely limited in its scope because of continuous drought
in most of the districts. So the state government is constantly trying to improve the
agricultural situation in the district by several Irrigation projects and schemes meeting the
farmer’s credit requirement.

AGRICULTURE IN RAJASTAN

Rajasthan agriculture is primarily dryland based and pastoral. Wheat and barley are
cultivated in large areas, as are pulses, sugarcane and oilseeds, Cotton, and tobacco, are
cash crops. Rajasthan is among the largest producers of edible oils, in India and the
second largest producer of oilseeds. Rajasthan is also the biggest wool-producing state in
India. There are mainly two crop seasons. The main source of irrigation is bore wells and
tanks. The Indira Gandhi Canal irrigates northwestern Rajasthan.

Graph showing the area Different Crops (ha) and Percentage of the total cropped
area

Agriculture distribution pattern

0.27%
1.02% cereals
pulses
2.89%
sugar
18.55%
C&S
F&V
0.75% 51.60%
oil seeds
4.04%
floriculture
0.08% D&N
13.60% others

Total Cropped Area is 13217538 Ha

7
IRRIGATION IN RAJASTAN

The total area irrigated in Rajastan is 5272191 hectares out of the total cropped area of
13217538 hectares. This accounts to 39.89% as net irrigated area.

Main Sources of irrigation in Rajastan: Canals, Tanks, Tube wells.

Sourcewise area in percentage under irrigation

in Rajastan

canals,
others, 0.55% 25.57% canals
tanks
tanks, 0.15% tube w ells
tube w ells, others
73.73%

Main Canals in the State: Gandhi Canal, Chambal Canal, Gang Canal, Bhankara Canal

Irrigation Projects in the State: Indira Gandhi Irrigation Project, Bisalpur Dam

Recently an awareness programme called Jal Yathra for conveying the importance of
judicious and proper use of Irrigation water by farmers has been launched by the
Government of Rajastan.

AGRO INDUSTRY IN RAJASTAN

The Agro industry sector is relatively a new sector and development of this sector is
comparatively a recent phenomenon. This sector form a substantial part of industries in
state as about 10,000 unit are working in small scale and 74 have come up in medium
and large scale sector.

The agro and food processing sector offers scope for development of several industries
such as solvent extraction, oleo- resins, kinnow/ orange juice, malt extracts, floriculture
and a host of other items. Besides these items like mushrooms, tomato processing, other
processing industries based on mango, ber, pomegranate and other vegetable like onion,
potato, garlic. Industries based on herbal and medicinal plants, sheep, goat , buffalo meat
processing, poultry and poultry products and non edible oil processing industries have

8
bright export prospects. The state government on its parts, is alive to the needs of this
sector with regard to training, technology upgradation, improvement in infrastructural
facility and a progressing Government policy with these measures, along with support
from central government and the coordinated efforts of various institutions working in the
field of agro and food products. It is expected that this industries with come to occupy its
due place in the agro industrial development of Rajasthan.

At present food processing industry faces both external and internal constraints. External
Constraints include the cost disadvantages in the international marketing framework,
while internal constraints consist following:

 Poor quality raw material

 Exclusive Production
 Lack of suitable processed technology
 Infrastructure for distribution
 Storage
 Marketing.

So it can be easily said that Agro-Industry in Rajastan is still in its nascent stage and
requires large scale support from the government for its development as a major
contributor to Rajastan economy.

FUTURE POTENTIAL OF AGRO BASED INDUSTRIES

The state Government is working towards the development of agricultural marketing and
infrastructural facilities like construction of link roads, rural primary markets, rural
godowns, krishi upaj mandi samities (KUMS), grower/producer/marketing cooperatives
societies and post harvest management. But still a lot of work is needed to be done, if the
state has to register a substantial growth in Agro-industry sector.

Agro food parks in Rajastan

Looking to the current need of the hour, Rajastan Industrial Corporation has undertaken
development of Agro Food Park at Ranpur, Kota and Boranada, Jodhpur. Development
of these Parks is in advance stage and entrepreneurs willing to set up their venture can
apply for land in the specified zone (wet process, dry process & green house). The
details of this Parks are as under:

9
 PARTICULAR Agro Food Park Agro Food Park
Ranpur, Kota Boranada, Jodhpur
Area(Acres) 136.74 192.47
No.of plots 100 183
No.of plots for Dry Process 73 146
No.of plots for Wet Process. 18 28
No.of plots for Green 9 9
House.

The Agro Food Park at Sri Ganganagar is in planning stage.

These Parks have been approved by Ministry of Food Processing Industries. These Parks
will have requisite infrastructure including Common Effluent Treatment Plant and
Warehousing.

CURRENT SITUATION OF AGRICULTURE LENDING IN RAJASTAN

At Present there are 43 Banks (Including both the Public and Private) and 14 Regional
Rural Banks in Rajastan state. Lead Bank for Rajastan is Bank of Baroda.

Total Agricultural Loan Issued (As on 31st March 2006)

CATEGORY ACCOUNTS AMOUNT(Lacs)
Commercial Banks 279501 247302.5
RRBs 115810 93952.55
Cooperative Banks 899519 205238.14
Total 1294830 546493.19

Crop Loans

CATEGORY ACCOUNTS AMOUNT(Lacs)

Commercial Banks 211311 133576.01
RRBs 97737 81404.10
Cooperative Banks 880002 18919.54
Total 1189050 40417.65

10
Term Loans
CATEGORY ACCOUNTS AMOUNT(Lacs)
Commercial Banks 66088 66840.58
RRBs 18073 12548.45
Cooperative Banks 19517 16046.6
Total 103678 95435.63

Recovery in Agriculture sector is 77.51%(2004-2005),which is improving year by year

and indeed a silver line for the Bankers, however a huge amount of funds is still stuck
with the barrowers and is mounting year after year. The provisions of Rajasthan
Government’s support in recovering banks dues are primarily stipulated under RACO
(ROD) Act 1974.Though bankers have filed numerous cases under this act the recovery is
much below the expected level. The pendancy of cases under this act is more than 1.6
lacs.

Some Bankers feel that if the present situation continues then it will be tuff to carry on
with government sponsored agricultural schemes and the cases should be solved in mind
that it will be counter productive for the developmental journey.

The government has a policy for doubling the agriculture credit in three years. Some of
the bankers feel that with this policy of the government many NGOs and private
institutions will come up in near future and they have to do more of the institutional
lending in Rajastan.

11
NABARD has the following schemes for Rajastan state.
AGRICULTURAL FINANCE SCHEMES.

1. Kisan Credit Card (KCC): The KCC facility designed exclusively for the benefit
of the farmers aims to provide them the opportunity to manage and utilize their
funds in the manner they deem fit. KCC provide adequate and timely support to
farmers for their production needs e.g. purchase of quality inputs, investment
requirements like purchase of agriculture implements/tractor etc, farming
expenses towards farm maintenance, unforeseen family expenses (consumption)
and maintenance of non-farm activities.

2. Purchase of agricultural implements including indigenous improved ones being

utilized for field operations including harvesting/sorting/grading, for not only to
farmers, but also for land-less laborers.

3. Purchase of heavy agricultural machinery like tractors, power-tillers, etc. either

by farmers having larger holdings with irrigation facilities or group of farmers
with irrigation facilities.

4. Purchase of second hand tractors to provide opportunity to those interested

farmers in dry land farming or having a small land holding who can not afford to
purchase new tractors.

5. Production credit for raising various crops from the point of preparatory tillage
till harvesting, for land owners or permanent tenants or lease holders or share
croppers.

6. Farm produce marketing loan against pledge of reciept of warehouse/ cold

storages to the farmers.

7. Development of irrigation facilities, covering sinking of wells/bore wells, lifting

of water by installation of pump sets, transporting of water through field
channels, water saving system like drip irrigation/sprinkler irrigation etc. for
farmers .Energising of pump sets through Non-conventional Energy Resources
like wind mill, solar energy etc. or installation of generation sets is also covered.

8. Extending Custom services to farmers by way of machinery like tractor thresher

etc. Equipment on rental basis and maintenance of cold storage /godowns for
hiring, by individuals, institutions / organizations.

9. Providing employment to the unemployed technical personnel through Agro

service Centre.

12
10. Setting up of Agri clinic and Agribusiness centre by agriculture graduates.

11. Construction farm building/structures like cattle shed, tractor shed, thrashing
yards, fencing etc. by individual farmer or firms engaged in agricultural activity
and is of long term nature.

12. Construction/Expansion/modernization/Renovation of Rural Godown/Cold

storage.

13. Development of horticulture including production, processing and marketing of

various fruits, vegetables, plantation and flowers, which cover from nursery to
the point of market, by individual farmers, firms, organization like co-operative
societies etc. and which covers both long term and short term requirement.

14. Development of land like bunding, terracing, leveling etc. and reclamation of
saline, alkaline, ravine soils by farmer or organisation like co-operative societies
etc.

15. Development of allied activities to agriculture like dairy, poultry , fisheries,

sericulture, mushrooms, apiculture etc. by production , processing and marketing
by farmer, land less laborers, firms, organisations, like co-operative societies etc
.finance by way of long term nature and short term nature is being extended.

16. Financing Scheduled Caste & Scheduled tribes who have been provided/allotted
land by the State Govt, can be financed for purchase of farm implements
irrigation pair of bullocks etc.

13
 RESEARCH METHEDOLOGY

The main purpose of the project is to know the scope for large agricultural lending with a
ticket size of minimum 10 lacs.

The objectives:

1. Identify potential of large predominant agricultural activities in the area

(district and taluka level) for Bank lending.

2. Finding out the existing market scenario, the major financer, and the
limitations as well as identifying the ways to overcome it.

3. Finally formulating the strategies (including lead generation) to enter in to

the potential markets.

Mainly the Projects of individual farmers and Corporates/Industries are targeted. Three
districts of Rajastan are covered under this project namely Ajmer, Alwar and Tonk

14
Sources approached for secondary data collection:

Jaipur

 Ajay Sirohi Assistant manager Agri Finance, Kotak Mahindra Bank

 Krishi bhavan
 Director NIAM
 State Level bankers Committee(SLBC)
 Head Office NABARD

Ajmer district

 Shyam Bihari, Kotak Mahindra Bank

 Office of the Deputy Director Agriculture
 Different Banks including the Lead Bank (Bank of Baroda)
 District Development officer NABARD
 Office of the Deputy Director Horticulture
 Office of the Deputy Director Animal Husbandry
 Different dealers and Traders
 District Industrial Centre(RIICO)
 Intensive Poultry Development Board(IPDP)
 National Egg Coordination Committee(NECC)

Alwar district

 Rithuraj Sharma, Kotak Mahindra Bank

 Office of the deputy Director Agriculture
 Different Banks including the Lead Bank (Punjab National Bank)
 District Development officer NABARD
 Office of the Deputy Director Horticulture
 Office of the Deputy Director Animal Husbandry
 Different dealers and Traders
 District Industrial Centre(RIICO)

15
Tonk District

 Suresh Sherawat, Kotak Mahindra Bank

 Office of the Deputy director Agriculture
 Different Banks including the Lead Bank(Bank of Baroda)
 District Development officer NABARD
 Office of the Deputy Director Horticulture
 Office of the Deputy Director Animal Husbandry
 Different dealers and Traders
 District Industrial Centre(RIICO)

Secondary data regarding large agricultural activities, Agricultural lending in these

districts by banks and information about the individual farmers and the industries is
collected from these sources. After the collection of secondary data further information
and details are gathered by meeting the individuals’ concerned.

16
AJMER
District Map

17
AGRICULTURE IN AJMER DISTRICT

Agriculture in Ajmer is constrained by severe drought situation prevailing from last four
years. Normally rains come sufficiently at an interval of three to four years. Irrigation
facility is limited, so mostly dryland crops are grown. Only very few farmers are
cultivating vegetables and flowers like rose. So Rose is becoming popular among farmers
having irrigation facility.

Classification of Farmers based on land Holding

CATAGORY CRITERIA PERCENTAGE

Marginal Less than 1 hector 47%
Small 1-2 hector 20.6%
Semi Medium More than 2-4 17%
Medium 4-10 11.9%
Large More than 10 3.1%

Average size of holding is 2.3 hectares.

Irrigation in Ajmer
Total Area under irrigation in Ajmer District is 41404 hectares.

Sourcewise irrigated area in Ajmer

 Canals:5 hectares
 Tanks:7hectares
 Tubewells:41284 hectares
 Other sources:39 hectares

18
AGRO INDUSTRIES/CORPORATES IN AJMER

At present there are 24 medium and large scale industries in Ajmer. Out of them only five
are agro industries

1. Ajmer Jilla Daugdh Utpadak Sahakari Sangh Ltd

Opposite HMT Beawar Road
Ajmer
J R Dhaka MD (0145) 2440352, 2440027

2. Baldua foods and processors Ltd

JLN Udyogpuri
Sendra Road
Beawar
Ajmer
S N Baldua Director (0145) 2355884

3. Uttra foods and feeds Pvt Ltd

Ladpura Road Gagwhna
Ajmer
Dr.M M Pathak AGM (0145) 2787152

4. Mahalaxmi Mills(A Unit of NTC)

Near railway station
Beawar
Ajmer
J R Dixit (0145) 251132

5. Shree Bijay Cotton Mills

Bijay Nagar
Ajmer
R S Mathur GM (0145) 230206

AGRICULTURE LENDING SCENARIO IN AJMER

Lead Bank: Bank of Baroda

Total Number of banks: 29(Including 18 Commercial and 11 Cooperatives)

Because of drought Agricultural lending has been severely effected and only 62% of the
targeted lending has been achieved. The Bankers feel that in near future they will be
lending the Private agricultural organizations and NGOs along with the government
Organizations which are expected to come up because of the policy decisions of the
government. The government is trying hard to support agriculture by providing
organizational support and Banks have an opportunity here.

19
MAJOR AGRICULTURAL ACTIVITY IN AJMER HAVING POTENTIAL FOR
LARGE AGRICULTURAL LENDING

POULTRY

Total number of Poultry birds estimated in Ajmer is 8 lacs which is half of normal 16 lacs
largely because of Bird flu menace after February 17, 2006.But expected to recover fully
by the end of the year 2006

Economics of a Poultry Unit of 1000 Birds

COST COMPONENT (Rupees)

Capital for infrastructure 28000
Working capital 91000
Operating Expenditure 232000
TOTAL 323000
INCOME COMPONENT
Eggs 300/bird/year 300*1000=300000 120/100 Eggs=360000
Meat (950 birds) 5%death rate 36/bird=34200
Droppings 10/Bird=10000
Gunny bags of feed 8/bird=8000
TOTAL INCOME/YEAR 412200
Profit 88850
Deppreciation 60000
Net income 28000(First Year)
Second Year 28000+10000=38000
Third year onwards 48000
Source: Intensive Poultry Development Programme Ajmer

So the minimum size of farm for lending of more than 10 lacs in Ajmer is around
30000 birds.

20
 ROSE

Pushkar Area has some Rose Farmers who are likely to invest in Green house Rose
farming, Gulab jal production and Gulkand factories. So Rose is a Potential crop to
concentrate in near future

Economics of cut flowers production (Roses) in a polyhouse of one hectare size is given:

Sr. Particulars Amount

No. Rs.
in lakh
I Capital Investment
1 Polyhouse structure 45.00
2 Pre cooling and cold storage unit 15.00
3 Refrigerated van 13.00
4 Planting material 4.50
5 Land value 2.00
Total 79.50
II Costs and Returns
1 Fixed costs 16.43
2 Variable costs 29.82
Total costs 46.25
3 Total no. of flowers produced 6,76,170
during 9 months (N0.)
4 Per flower
Average cost (Rs) 6.85
Average price received 12.28
with no important (Rs)
Average price received net 10.44
ofimport duty (15%) (Rs)
Net profit (Rs) 3.59

The items of fixed cost included interest on investment, depreciation on structure and
transport and other equipment, and amortization of planting material. The items of
variable cost included irrigation charges, fertigation, labour charges, managerial and
supervision charges grading, packing, transport costs and air freight. This showed that
inspite of high cost of cultivation of roses in polyhouses, their production is quite
profitable due to export market.

21
POTENTIAL CLIENTS FOR LARGE AGRICULTURAL LENDING IN AJMER

Businessmen

Name and Address Manoj Sharda 982907037 (Personal)

(Contact Person: Jayanth Sharma 9829903268)
17 Datanagar, Lohagal node, near Rambhavan,
Shastrinagar Ajmer
Business Manufacturer of Biscuits for Parle Mumbai
Turn over 90 Crores worth Biscuits manufactured and
supplied to Parle
Source of funds Previously Bank of Baroda now all the repayment
is over
Rate of funds 10%
Use of funds For Agri related projects in Future
Fund Required More than 2 Crores
Projects Floriculture, Agroforestry, Fruit plants
Collateral Land on Mortgage previously for BOB
Repayment record -
Remarks Stresses on the role of the Government, Water and
Power availability for Agriculture. Positive for the
proposal of lending by Kotak

Name Nari Bhai 9414008571

Sahil Hotel Delhigate Ajmer
Business Hotel, Travel agency, Poultry(Business all over
North India)
Turn over 1 Crore/month
Source of funds Revenue from the Business
Rate of funds -
Use of funds -
Other activities(including Farm House 8.5 biga(aonla, jamun, mango at
agri) Pushkar) 13.5 biga Poultry
Remarks Not very much keen on taking Bank Loans

22
3
Name Jagath Singh
Owner Jagat Palace and Pushkar Palace
Reception Jagat Palace (91145 ) 2772953 2772954
Remarks Highly rated Businessman, owning 2 Heritage
Hotels at Pushkar Ajmer. Contacted his
associates, who say he is open to taking loans for
the development of his agricultural farm and has
keen interest in farming

TRADERS

4
Name Ved Mithra Sharma
Director Ved Seeds (Family Business)
Kesarganj Ajmer
9829270691 9414008338
Business Seeds and Agri Inputs, Oil seeds Stockiest
Turn over Around 70 Lakhs Per Annum
Source of funds -
Rate of funds -
Use of funds Seed Production Unit
Fund Required 15 to 20 Lakhs
Projects Vegetable seed production on 10 bhiga Land
Collateral -
Repayment record -
Remarks Interested in taking Loan

23
5

Name Mangilal Banseli

Nataraj Krishi Sevakendra, Ganapathi Market
Near Ganaheda Chungi circle, Pushkar 305022
2773478(O) 2772016 2773454(R)
Wakchand Grandson 9314247355
Om Prakash, In the Shop 9314247355,9351296255
Business Agri inputs, Gulkand, Gulabjal
Turn over Well off
Source of funds -
Rate of funds -
Use of funds Business
Fund Required Will have a clear picture after an year
Projects Gulkand and Gulabjal factory
Collateral Land and Property
Repayment record -
Remarks Hesitant to invest now because of drought and
plans invest next year

Name Kamlesh Jain

Nakoda Krishi Seva Kendra, Ganaheda, Pushkar
2773546
Business Agri Inputs
Turn over 40 lakhs/annum
Source of funds SBBJ,PNB
Rate of funds 10%
Use of funds Business
Fund Required Around 10 lakhs
Projects Improving the coverage of the present business
Collateral Property other than land
Repayment record -
Remarks Interested

24
DAIRY

Name Raj Purohit Dairy

Ghoogra Village, Ajmer
Manohar Singh 9414002938
Surinder Singh 9414006819 0145 2787619
Business Pasteurized milk
Turn over 30000 liters Daily, plans are on for increasing the
capacity to 50000 liters/Day
Source of funds Union Bank of India, PNB(Taken during starting
of the present plant around 1 crore now repayed)
Rate of funds 8.25%
Use of funds Dairy
Fund Required 2 Crores
Projects Aromatic ghee Plant-50 Lakhs,
Butter Plant-1 Crore,
Cattle feed plant-50 lakhs, for all this the land has
been purchased, they also need funds for new
infrastructure
Collateral -
Repayment record Good
Remarks Positive and Interested

Name Ajmer Dairy(Saras Ajmer)

Lending pattern Through Revenue, Short term Loan from Banks
Source of funds RCDF(Rajastan Co operative Dairy federation)which
looks after the financial requirements of all the dairies
under Saras in Rajastan,
Rate of Funds 5.75 to 6% HDFC Bank
Services Obtained Happy
Collateral Offered Hypothecation and Fixed assets
Turnover 100 Crores
Remarks A cooperative but a commercial organization. Needs
large amount of funds.

25
POULTRY

Name Sudeer Shivahare

Fine Poultry Farm, Palda Parbathpur
Home Address: 22 Adarshnagar Maingate, Ajmer
Ph (0145) 2441606
Business Poultry
Turn over 1 Crore/Annum
Source of funds BOB
Rate of funds 10% No Subsidies
Use of funds Farming and Poultry
Fund Required 30 Lakhs
Projects Farming and Poultry
Collateral Land ,Infrastructure, Home
Land Holding 10 Acre
Remarks Interested

10

Name Sunil Mittal

Mittal Poultry Farm Pushkar Road Ajmer
0145 2643823(Farm) 2627520(Home) 9829572924
Remarks Not interested in sharing his plans as he feels that
the business is highly unpredictable after the bird
flu episode. Projects are after 6 months to 1 Year

11

Name Deepak Vidhani

Deepak Poultry Farm Pushkar Road Ajmer
9352007171
Business Poultry
Remarks Not interested at present now concentrating on
rebuilding his business after bird flu threat.
Projects are After 6months to 1 Year

26
12

Name Lokesh Birds 0145 2423785 Sitaram Bazar

Kesarganj, Ajmer Farm:Kesarpura Bewar road
Ajmer
Business Hatcheries, One of the largest supplier of chicks in
North India
Remarks Projects after accessing marketing situation in
about 6 months to 1year

13

Name M S Khan 9829073774

near Jama Masjid Ajmerdairy Khanpura Rastha
Beawar road Ajmer
Business Poultry
Turn over -
Source of funds -
Rate of funds -
Use of funds Poultry
Fund Required Requires fund in near future
Projects -
Collateral -
Repayment record -
Remarks In need of funds

14

Name Kevalram Hatcheries Mahesh Kevalram Office

above Punjab Sindh Bank Kesarganj, Station Road
Ajmer 0145 2622057
Business Hatcheries, One of the largest suppliers of chicks in
North India
Remarks Concerned about the future of poultry market says
the number of birds in ajmer district has come
down from 16 lakhs to 8 lakhs and demand for
chicks an parental stocks is has drastically
comedown. Plans depend on the developments in
the near future.

27
15

Name and Address Syed munnabar Hussain

NECC Committee Ajmer 9414220377

16

Name and address Fakri Moin

NECC Ajmer
Moin Poultry Farm Parbathpura Bypass
Ajmer

FARMERS

17

Name Chogalal Rawat 9829072657

Village end Post Ganaheda
Pushkar
Remarks Very much interested and wants to talk directly
with the bank

18

Name Manohar Ajmera 9351442141 Banseli, Pushkar

Business Nursery(Krishna Nursery)
Turn over -
Source of funds PNB Already Repayed Now SBBJ
Rate of funds -
Use of funds Nursery
Fund Required 20 Lakhs
Projects Improvement of 24 biga land
Collateral Land
Repayment record Good
Remarks Already has Loan on Land no other Collateral
available.

28
19

Name Babulal Mahaver, Ganaheda, Pushkar 0145

2772051
Business Gulab jal, Gulkand
Turn over -
Source of funds No loans taken yet
Rate of funds -
Use of funds -
Fund Required -
Projects -
Collateral -
Land and agriculture 25 bhiga vegetables, aonla and Rose are grown
Remarks Progressive farmer capable of investing but
hesitant to reveal details can invest in future.

INDUSTRY/CORPORATE

20

Name Uttara Foods and Feeds Pvt Ltd

Ladpura Road
Gagwhna Ajmer 0145 2787152
Business Poultry feed in Ajmer Corporate office Pune
Dr.M M Pathak AGM
Turn over -
Source of funds -
Rate of funds -
Use of funds -
Fund Required -
Projects New Biscuit factory at Ajmer
Collateral -
Repayment record
Remarks Financial Matters managed at Pune.

29
ALWAR
DISTRICT MAP

30
AGRICULTURE IN ALWAR

Agriculture in Alwar is mainly based on dryland cropping. There are farmers who have
large holdings but no Idea about what to do in the land. Recently some professionals and
businessmen have planted Aonla in the outskirts of the town.

Classification of Farmers based on Land Holding

CATAGORY CRITERIA PERCENTAGE
Marginal farmers Less than 1 hector 46.44%
Small farmers 1-2 hector 24.91%
Medium and above More than 2 hector 28.65%

Average land holding of farmers is 1.8 Hector

Irrigation In Alwar

Total area under irrigation in Alwar is 452020 hectares.

Source wise area under irrigation in Alwar

 Tubewells:267882 hectares
 Other Sources:255 hectares

AGRO INDUSTRIES/CORPORATES IN ALWAR

There are 99 large and medium scale industries in Alwar. But only 4 out of them are
viable agro industries.

1. Alwar Jilla Daugdh Utpadak samiti

Jaipur Road
Alwar

2. Shashi Phyto chemicals Ltd

Old Industrial Area Alwar

3. Vijay Solvex Ltd

Itarana Road
Alwar

4. Dabur India Ltd

MIA Alwar

31
AGRICULTURAL LENDING SCENARIO IN ALWAR

Total Number of Banks in Alwar is 26.Lead bank in the district is Punjab National Bank.
Total Agricultural Credit targeted in 2005 was29579.55 lacs and achieved was 59839.92
lacs. So the achievement was 201.29%.

In rural areas 70% of the lending is through agriculture only through Kisan Credit Card
and Term Loans mainly for purchase of Tractors.

32
 POTENTIAL ACTIVITIES FOR LARGE AGRICULTURAL LENDING IN
ALWAR

AONLA

Aonla cost of cultivation

Particulars Investments Over The Years Total Cost

1 2 3 4
Land Preparation 1000 - - - 1000
Digging Pits @ Rs.5/- per Pit

( 80 Pits of 2.5 x 2.5' x 2.5' / Acre ) 400 - - - 400

Planting Material @ 80 Plants /Acre

(@ Rs.30/- per Plant), 15% extra for

Mortality and Gap Filling 2700 - - - 2700
Planting & Staking @ Rs.5/- per Plant 500 - - - 500
Barbed Wire Fencing 8000 - - - 8000
Farm Implements 1500 - - - 1500
Manures & Fertilizers 1200 1500 1800 2000 6500
Irrigation 500 800 1000 1200 3500
Plant Protection Measures 500 600 800 1000 2900
Orchard Management 500 800 1100 1500 3900
Miscellaneous Expenses 500 700 900 1000 3100
Total 17300 4400 5600 6700 34000

Projected Income

Particulars Income Over The Years

5 6 7 8 9 - 25
Yield / Acre in Kg 3000 4200 4800 5500 6000
Gross income @ Rs. 6/- per Kg 18000 25200 28800 33000 36000
Maintenance Cost (Rs./acre) 7500 8000 8500 8500 8500
Net Income 10500 17200 20300 24500 27500

* The above figures are only indicative

Maintenance Cost of Amla for One Acre

Spacing: 7 m x 7 m, No of Plants /Acre = 80

33
 MANGO

Cost and Income from Mango Cultivation (Rs. per ha)

Spacing : 10m x 10m

Plant population: 100

Estimated cost:

Sr. Particulars Year Total

No. 1 2 3 4 5
1 Planting material 2200 -- -- -- -- 2200
2 Manures & Fertilisers 3000 1100 1100 1400 1400 8000
3 Plant protection 1100 600 600 700 700 3700
4 Sprayer & implements 1500 -- -- -- -- 1500
5 Fencing 2500 -- -- -- -- 2500
6 Irrigation 1800 500 500 500 500 3800
7 Labour 3200 1200 1200 1500 1500 8600
8 Intercropping 1500 -- -- -- -- 1500
9 Miscellaneous 600 500 500 500 500 2600
Total 17400 3900 3900 4600 4600 34400

Projected Income

Year
1 to 5 6 7 8 9 10 11 12 13 1415th
onwards
Yield (q/ha) 0 25 35 50 60 70 80 90 100 110 120
Gross value @ 0 11250 15750 22500 27000 31500 3600 40500 45000 49500 54000
Rs. 4.50 / kg
Maintenance 0 4600 6000 6000 6200 6200 6200 6200 6200 6200 6200
(Rs/ha)
Net Income 0 6650 9750 16500 20800 25300 29800 34300 38300 43300 47800
(Rs/ha)

34
POTENTIAL CLIENTS FOR LARGE AGRICULTURAL LENDING IN ALWAR

Businessmen

21

Name Narain Dutt

Herohonda Authorised Dealer, Modern Machinery
stores
Station Road Alwar 301001 (0144) 2337234 2332650
Business Hero Honda Showroom
Turn over -
Source of funds PNB
Rate of funds 9.5-11.5%
Use of funds For Agriculture only. Total requirement is around 50
Lacs out of which 25% is given by the government as
subsidy so 30 lakhs is the requirement.
Agri activity Organic farming Aonla, lemon, Mango
Projects Storage Godown, Medicinal and Aromatic Plants, Oil
Extraction plant, Tulsi
Services obtained Subsidy from the government
Collateral Property
Repayment record -
Remarks Interested in taking Loan

22

Name Akbar Khan 9414019486

Alwar
Business Transport(Delhi-Haryana Roadways)
Turn over -
Source of funds Kotak Mahindra, GE Capital, Tata
Finance
Rate of funds Not disclosed
Use of funds Transport and in Agriculture land
Other activities(including agri) 25 Bhiga land
Income from other activities -
Services obtained
Collateral Vehicle
Repayment record -
Remarks Already a customer of Kotak Mahindra

35
23

Name Shambu Dayal 9829517359 (01492) 277280

Bhiwadi
Business JCB(2) and Tractors(6), Motar parts Shop
Turn over Around 10 lakhs per annum
Source of funds Kotak Mahindra, PNB, Digambar finance
Rate of funds -
Use of funds Business(Require 8 to 10 lakhs)
Other activities 106 biga land in Father’s name Musturd,
(including agri) Chickpea, Bajra, Clusterbean, Sagvani, Safeda
And Dairy
Income from other activities -
Services obtained Happy
Collateral Land, JCB, Tractors
Repayment record -
Remarks Interested in taking Loans. Already a Customer of
Kotak

24

Name Phool Singh(Son: Mukesh)

9414293076 9351343009
Address: House 610 Bombay Bewadi Carrier
Maheshwari, Biwadi
Business Transport
Turn over 1 lakh/month
Source of funds Kotak, ICICI Bank
Rate of funds Expectation 7 to9
Use of funds For Transport Business( Requirement is more than
10 lakhs)
Other activities(including 17 Acres of Land wants to invest once he gets
agri) power supply in his Farm.
Income from other activities -
Services obtained Happy with the present services obtained
Collateral Vehicles
Repayment record -
Remarks Wants to invest in Agriculture and Transport
business Already a customer of Kotak keen to take
loan from the Bank again

36
25

Name Puran Patel 9414215225

Authorised Mahindra and Mahindra Dealer
Patel Motors Bewadi
Business Tractor Dealer Mahindra and mahindra
Turn over 1.5 Crores
Source of funds Kotak Mahindra and PNB
Rate of funds -
Use of funds Business
Fund Required More than 10 Lacs
Land Holding 18 biga
Collateral Land
Repayment record -
Remarks Already a customer of Kotak

TRADERS

26

Name Rahul Goel

Rahul Traders
Shaheed Namichand Market
Alwar
Business Cement, Seeds, Pesticides and other agri inputs
(Manufacturer, Importer)
Income Well Off
Agri activity Farming is there on smaller Scale
Source of funds Indian Overseas Bank
Use of funds Business
Rate of interest(%) 9.5 to 11.5
Collateral Property including Land
Repayment -
Remarks Plans for new Organic Product Launch, not very keen on
changing bankers

37
27

Name Ved Joshi

9414017008 9414016958 (0144) 2339135(O) 2337008(R)
Unnat Agro Pvt Ltd
Station Road
Alwar
Business All Agro Inputs, Seed Production(Musturd, Wheet, Barley)
Income Well Off
Agri activity No agriculture of their own, but Act as the link between seed
growing Farmers and certifying Agency
Source of funds Bank Of India
Use of funds For Business
Rate of interest 10.75%
Collateral Loan on Hypothecation
Repayment -
Remarks Plans for a Project of 1 crore consisting of seed production,
Own R&D facilities and allied activities, Interested in taking
Loan

DAIRY

28
Name Saras dairy Alwar

Lending pattern banks, Society shares, NDDB, Rajastan Cooperative

Dairy Federation(RCDF)
Source of funds Mainly from HDFC Bank Jaipur at 5.85% interest
rate(fixed rate) processing 2-3days, clearance/
repayment 31 July every year. Lending is done by the
banks based on hypothecation no collateral is taken.

Rate of Funds 5.75-6 HDFC

Daily Transaction 1.5 lakh liter milk arrives per day and farmers are paid
Rs 15/letre so total Rs 2250000 per day. Payment is
made at least once in 15 days.
Iquidity maintained Liquidity of around 34000000 is maintained.
Remarks Profit oriented organization looking for expansion of
area covered. Net profit 0.75%

38
FARMERS

29

Name Col. R S Naruka 9414022751 (0144)2700741(O)

Retired Army Officer,
Propriter Kothirao Hotel, Mothidungri, Alwar
Crops grown Tomato, Chilli, Brinjal, Fruit Saplings
Acreage Total 17 acres (25bigas) where presently a micro project is
running with10 acre vegetables under Drip, 5 acre Greenhouse
Nursery(Largest in the District)where 2.5 lakh fruit saplings
are produced
Allied AA Interested, Yet to Start
Income AAA -
Non-ag activities Hotel Business, Real Estate
Income NAA Total figure given
Use of fund Only for Agriculture
Source of funds Corporation Bank
Rate of interest 9%
Collateral offered Land, Machinery, Property
Net Cash Flow 1 lakh/Month
Repayment -
Remarks Future Project is of 300 acres where along with the micro
project components other components will also be introduced.
Needs around 50 to 60 lakhs lending. Highly positive response
to proposal of lending from Kotak.

39
30

Name Umrao lal Saini

Kangal Hatha
Infront of Pal Do Pal Hotel
Jaipur Road
Alwar
Crops grown Aonla-1 bhiga, Gladiolus-3.5 bhigas, Gobi-3bhiga , Gulab 2
bhiga
Acreage Total 10 bhiga
Allied AA Flower Shop at Nangli Circle Alwar(Sales 30-40 thousand
flower cut and bouquet per month)
Income AAA 1.5 lakhs/month
Non-agactivities -
Income NAA -
Use of fund Agriculture
Source of funds PNB
Rate of interest Through Kisan Credit Card and Kisan Shakthi(6-7%)
Collateral offered Land
Net Cash flow Around 15 lakhs only from Floriculture
Repayment -
Remarks Only farmer cultivating Gladiolus in the whole District. Plans
for a Marriage Hall in the Outskirts of the city and a large
flower shop in the circle.

31
Name Rajkumar gupta, 9829244018

Sawan ram taneja (Retired Inspector of Land revenue)

Crops grown Mainly Eucalyptus, Mango, Aonla
Acreage More than 250 ha
Allied AA Vegetable oil (Vanaspathi brands Ashoka, scooter),Musturd oil
Extraction
Income AAA Well off
Use of fund For Agriculture(50-70Lakhs)
Source of funds SBBJ
Rate of interest Not disclosed
Collateral offered Land
Net worth -
Repayment -
Remarks Feels that the Bank should come with the project proposal
along with the lending proposal. Interested in taking franchise
of the Bank.

40
INDUSTRIES

32

Name Maneesh Goyal B.E,MSc(BITS Pilani),MBA(IIMB)

9829050049
Manufacturer and Supplier of Herbal Extracts,
Phytochemicals and neutraceuticals(Shashi
Phytochemical Industries) 1,Old Industrial Area
Alwar
Also known as Prakash Pulvarising mills
Business Herbal Extracts, Phytochemicals and
neutraceuticals and Pesticides
Turn over 11 to 12 Crores/annum
Source of funds Indian Bank
Rate of funds Around 10.5%
Requirement of funds 1 Crore
Other activities(including Cultivation of Herbs
agri)
Income from other activities -
Services obtained Comfortable
Collateral Stocks
Repayment record -
Remarks Plans are there for Large scale Cultivation of
Herbs and extraction Plant. Very much interested
in taking funds from Kotak Mahindra.

33

Name Ashok Jain ,Jayanthi Industries Alwar

Business Cold Storage, Soft Drinks, Ice blocks
Turn over Well off
Source of funds Mostly the revenue generated from Business
Rate of funds -
Use of funds Business
Other activities(including plans to invest in Horticulture in future
agri)
Remarks Plans to invest 15 crores in Soft drinks Business in
future

41
 TONK
DISTRICT MAP

42
AGRICULTURE IN TONK

Tonk Agriculture is improving from last one year after it got the irrigation facility from
Bisalpur dam near Devli, primarily established for the purpose of providing drinking
water facility to Ajmer city.

Devli is now a potential region for vegetable production, but has fragmented land
holding.

Classification of Farmers based on the Land Holding

CATOGARY CRITERIA PERCENTAGE

Marginal Less than 1 ha 30.03%
Small 1-2 ha 20.23%
Semi Medium 2-4 ha 20.83%
Medium 4-10 ha 19.84%
Large Mora than 10 ha 9.07%

Irrigation in Tonk
Total area under irrigation in Tonk is 75197 hectares.

Source wise irrigated area in Tonk:

 Tanks:17 hectares
 Tubewells:70954 hectares
 Other Sources:2585 hectares

INDUSTRIAL SCENARIO IN TONK

 No. of large and medium scale units: 2

 No. of large and medium scale industries: 2
 No. of small scale units: 5,722
 No. of industrial areas: 4
Deoli
Malpura
Newal
Tonk

43
Main existing industries

 Agro based units (maida, suji)

 Ball bearings
 Edible oils
 Leather tanning units
 Mineral based items and textiles.

AGRICULTURAL LENDING SCENAREO

Lead Bank: Bank of Baroda

Total Number of Banks:12(87 Branches)

At the end of Dec 2005 the Target was 9333.29 lacs and the achievement was 8060 lacs
that is a achievement percentage of 86.42.

In Tonk there is no Project or Corporate lending. Most of the lending is through KCC and
Kisan shakthi, other than this term loans have been sanctioned for tractors and minor
irrigation. No lending is over 5-6 lakhs. There are no harvester machines in the district.
Land holding is fragmented. There are a few Mustard oil extraction mills near Nevai.

MAJOR AGRICULTURAL ACTIVITIES

Tonk District is one of the most backward districts of Rajastan. There is no large
Agricultural activity. Recently they have got the facility of Irrigation and vegetables are
grown in fragmented land. Remaining agricultural land is covered mostly by Dryland
field crops.

44
POTENTIAL CLIENTS FOR LARGE AGRICULTURAL LENDING IN TONK

BUSINESSMEN

34

Name Rajeev Bansal 9414221205

Business Law College, Medical Stockiest
Turn over -
Source of funds Loans not Taken
Rate of funds -
Use of funds For College and Hostel Building
Fund Required 30 Lakhs
Projects College and Hostel Improvement, new building
Collateral -
Land 9.5 Bhiga on Record (13 in Use) Musturd and
Vegetables are grown
Remarks Runs an NGO which gives Training to Farmers
about Vermi composting, Dairying Etc

35

Name Banwarilal Soni 9414273581

Rajesh Beedi Factory
Joshi Mohalla
Tonk
HOME: Chauni Road, Bambur gate
Tonk
Business Beedi Factory, Gold and Silver Wholesaler
Turn over -
Source of funds No Loans yet
Rate of funds -
Use of funds In Business
Fund Required 30 Lakhs
Land Holding 16 bhiga
Collateral -
Repayment record -
Remarks Interested and in need

45
36

Name Prabhulal Choudury 9414334088

Alok Public School Infront of Indian Gas Agency
Shastrinagar Tonk
Business Lawyer by Profession , Private School
Turn over -
Source of funds Housing Loan from BOB
Rate of funds Floating rate
Use of funds For Land Improvement
Fund Required 10 Lakhs
Land Holding 25 biga
Collateral -
Repayment record -
Remarks Interested

37

Name Jayanthi Lal P Jain 9214664708

Eicher Tractors
Sawaimadhavpur Road near Gujar hostel
Tonk
Business Eicher Tractor Showroom
Turn over 1.5 Crore/annum
Source of funds PNB 5 Lakhs
Rate of funds 10%
Use of funds Horticulture, Floriculture
Fund Required 60 Lakhs(Total Project 80 Lakhs)
Projects Horticulture, Floriculture
Collateral Collaterable asset 40 lakhs
Land Holding 14 bhiga
Remarks Interested

46
38

Name Sanjay Sanghi (01432) 253018 9414258081

Sanghi Motars Tractor Dealer
near Roadways depot
Devli Road ,Tonk
Business Tractors and Auto Rickshaws, FMCG
Turn over 1 crore/year
Source of funds No Loans yet Revenues
Rate of funds -
Use of funds Business
Fund Required 20 Lakhs
Projects -
Collateral
Land Holding 20 biga Musturd, Jowar
Remarks Interested

INDUSTRIES

39

Name Sushil Kumar Jain 9414249013

Jain Handicrafts
Babra ka Chouk
Purani Tonk
Business Sheep Wool made Products including Felt(Namda)
accessories, Shoes, Flowers, mats, Cushion, Bags,
Carpets Etc Totally hand made
Turn over 50 Lakhs/Year
Source of funds No Loans Yet
Rate of funds -
Use of funds For handicrafts made from wool
Fund Required 10 Lakhs
Projects Conversion of indirect exports of his goods into
direct exports
Collateral -
Repayment record -
Remarks Has commercial Land in Industrial Area. Goods
are exported indirectly to America, Japan and
Europe. Has Artisan Card. Interested in taking
Loan

47
STRATEGIES OF OTHER BANKS

Public Sector Banks

Public sector banks are into crop loans and term loans. Term loans are mainly for the
purchase of tractors and the number of loans with a lending of more than 10 lacs is very
limited. The Banks are happy to disperse the crop loans and the term Loans which are
very easily crossing the policy requirement of 18% of their lending. Even these Crop
loans and Term Loans are acquiring a large proportion of their Total lending. They say
that they do give away Loans amounting more than 10 Lacs only if the Party approaches
them.

All the prominent Public sector banks are there in the three districts covered. Some of the
facilities given by them are mentioned below.

BANK OF BARODA

It is the Lead Bank of Rajastan and also for Ajmer and Tonk Districts.But has very
limited Large agricultural lending.

PUNJAB NATIONAL BANK

Punjab National Bank is the Lead bank for Alwar district. It has many schemes in
agriculture finance but the maximum limit for those schemes is 10 Lacs.

Apart from this Bank is attracting farmers by establishing Soil testing centres, Famers
training centres,training of rural Youth for self employment under PNB centenary Rural
Development trust.

STATE BANK GROUP

State Bank Group has the maximum number of Agriculture development banks (ADBs)
in the three districts. They have all the schemes offered by the NABARD

Private Sector Banks

Among the private sector Banks HDFC and ICICI Banks are very active. HDFC is
Financing SARAS Dairy there by covering up high proportion of its Agricultural lending.
ICICI Bank is into Financing Orange growers in the state. It also has a insurance scheme
for Orange Crop.

48
LIMITATIONS FOR LARGE AGRICULTURAL LENDING IN THE THREE
SELECTED DISTRICTS

1. Fragmented Land holding, which had made the farmers to take up crops in
limited area and farmers are able to meet their credit needs through crop loans.

2. Bank is not well known, the farmers are hesitant to share information

3. Attitude of farmers, they are satisfied with the limited work they do and don’t
like to innovate.

4. Weather conditions, discourage large investment in agriculture.

5. Poor infrastructure, discourage Corporate establishment in the districts.

6. Favoritism towards public sector Banks, Farmers and even businessmen favour
public sector banks than the private sector Banks.

STRATEGIES FOR THE THREE SELECTED DISTRICTS

1. Targeting individuals rather than a particular activity expect for for poultry in
Ajmer.

2. Institutional lending, expected to prosper in near future.

3. Project proposals, along with the lending proposals proposing a project suitable
for that particular region giving details of cost, returns and profits.

4. Subsidies from NHB and NABARD, have significant impact as far as the
acceptance of the loan is concerned in all the three districts.

5. Food Parks, offer good scope for corporate and industrial lending in near future
with food parks expected in Kota, Jodhpur and Sriganganagar.

6. Training centers of Farmers, thus encouraging them to innovate and take up

new projects.

7. Services to Farmers, such as soil testing centers and technical guidance.

8. Advertisement, to popularize the bank.

49
END NOTE

Agriculture lending in the districts of Ajmer, Alwar and Tonk districts of Rajastan is
largely based on crop loans and term loans. Large scale lending is hindered because of
adverse weather conditions in recent years and lack of proper infrastructure for agro
based industries.

So the scope for large lending in these 3 districts is indeed limited.

50
ANNEXURES (QUESTIONNAIRS USED)

For Bankers
Name of the bank
Client Profile
Interest rate
NPA
Sectors
Repayment record
Services offered
Lead time for the loan
Type of interest rate
Contact person
Remarks

For Businessmen

Name
Business
Turn over
Source of funds
Rate of funds
Use of funds
Fund Required
Projects
Collateral
Repayment record
Remarks

Industry/Corporate
Name
Lending pattern
Source of funds
Rate of Funds
Services Obtained
Collateral Offered
Turnover
Remarks

51
For Traders/Dealers

Name
Crops managed
Income
Large farmers visiting
Agri activity
Source of funds
Use of funds
Rate of interest
Collateral
Repayment
Remarks

For Farmers

Name
Crops grown
Acreage
Allied AA
Income AAA
Non-ag activities
Income NAA
Use of fund
Source of funds
Rate of interest
Collateral offered
Net Cash Flow
Repayment
Remarks

52