Rkvy 14th Fin
Rkvy 14th Fin
Rkvy 14th Fin
Operational Guidelines
2017-18 to 2019-20
Government of India
quarterly physical & financial progress activity mapping for effective devolution
Inter-State allocation of RKVY-RAFTAAR funds will be based on the following parameters and
weights:
1 Percentage share of net un-irrigated area in a State to the net un- 15%
irrigated area of all States.
4 Average Gross State Value Added (GSVA) in agriculture and allied 20%
sectors in the last 3 years.
6 Inverse of Yield gap between state average yield and potential yields 10%
as indicated in the frontline demonstration data.
2.0 Ministry of Agriculture & Farmers Welfare could modify above criteria/weights depending upon
new parameters becoming relevant in future.
3.0 Expenditure which should be excluded for the purpose of parameter No. 3 concerning expenditure on
agriculture and allied sectors are:
(a) Expenditure on output subsidies such as that relating to food subsidy, subsidy for
procurement of milk, bonus on procurement of food grains and other crops, etc.;
(b) Expenditure on Civil Supplies and Public Distribution System. However, expenditure on
creation of storage and warehouse for agriculture purposes will be considered for the
purpose of Parameter 3;
(c) Expenditure on interest subvention, electricity or diesel subsidy etc.;
(d) Debt relief or other one time relief to farmers;
(e) Irrigation except as included in para-4 c below.
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4.0 Certain expenditure which is directly related to the development of agriculture sectors may be
allowed in the expenditure on agriculture and allied sectors for the purpose of Parameter 3;
Note:
1. The above illustrative list of projects is indicative and not exhaustive.
2. Food processing units, especially those industries which get assistance under various schemes of
the MoFPI, should not be eligible for assistance under RKVY.
3. State specific research projects through SAUs/ICARs in any area of agriculture and allied sectors
may be undertaken under Production Growth stream only.
4. Infrastructure and Assets stream emphasizes promoting group approach for subsidies.
Accordingly, level of subsidies in the case of unspecified projects should be kept to the minimum
for higher coverage of beneficiaries/ areas.
5. State should form of stakeholders‟ groups/organizations involving them in planning, execution
and future maintenance of the created assets.
Framework for supporting Public Private Partnership for Integrated Agriculture Development
(PPPIAD) under RKVY-RAFTAAR
A Scheme for facilitating large scale integrated projects, led by private sector players in the
agriculture and allied sectors, with a view to aggregating farmers, providing additional income to
farmers and integrating the agricultural supply chain, with financial assistance through RKVY-
RAFTAAR under the direct supervision of State Governments, supported by National Level Agencies.
Background and Rationale
The agricultural produce landscape in India is undergoing significant and rapid change. This is primarily
led by changing consumer demand preferences, as rising incomes rearrange the contents of the household
food basket in both urban and rural India. Concern for food safety, traceability and assured year-round
availability of quality agri produce at reasonable prices are demands which have emerged at the top of the
supply chain. Organized retail is doubling its share every three years or so and is likely to play an
increasingly important role in influencing the nature of agricultural markets in the coming decade.
Traditional production and supply arrangements are unlikely to prove adequate in meeting the challenges
posed by these two major developments.
Agriculture GDP is heavily weighted in favour of high value produce like horticulture, animal husbandry,
dairy, poultry and fish products. Recent evidence suggests that this segment is increasingly favoured by
small and marginal producers as it is labour intensive, offers quicker returns and can engage a higher
proportion of women (especially dairy activities). Thus there appears to be immense potential to leverage
high returns from non-cereal sub sectors, especially for small producers. This fits well with the vision of
Hon‟ble Prime Minister for doubling of farmers‟ income by 2022.
However, several hurdles need to be overcome to reach these highly desirable goals. For one, 85% of
operational land holdings in the country are now marginal or small and unless there is urgent intervention
in aggregating producers through farmer‟s institutions, we are unlikely to achieve scale in production and
leverage it to the advantage of all stakeholders, especially primary producers. The fragmented agricultural
marketing value chain and the large number of intermediaries is another major constraint, leading to
wastage, low returns to producers and volatility in availability and prices at the consumer end. Estimates
of the wastage of perishable such as fruits and vegetables range from 18-40% but they are undeniably too
high and penalize both producers and consumers. The example of AMUL in milk demonstrates the
benefits of value chain integration in agricultural produce. Yet, an efficient supply chain for cereals,
perishables and other high value agricultural produce is unlikely to materialize unless there is parallel
investment in aggregating farmers and farm produce at the bottom end, and strong and direct linkages are
created between producers and market players, both for retailing raw produce and processed food.
Finally, the growing demand for quality agricultural products creates an opportunity to reduce risk in
agriculture through the integration of producers on the one hand and retailers and processors on the other.
While production and price risks are the most obvious areas of attention, the potential to create
partnerships between farmer‟s groups and market players also opens up better links with input suppliers,
financial institutions and research bodies. This convergence can lead to better targeting of government
expenditures on agricultural subsidies and achieve better outcomes for public policy. Overall, a
Coverage and Scope PPPIAD launched during the 12th Plan is being continued under RKVY-
RAFTAAR for the remaining period of Fourteenth Finance Commission (FFC) (2017-18 to
2019-20), whereby State can take up value addition linked production projects that may take
care from production to marketing of any agriculture & allied sector activities that specify end
to end processes.
Objectives
Main objectives of scheme are:
Augmenting the current government efforts in agricultural development by leveraging the capabilities of
the private sector by:
•Enhancing production and productivity, improve nutritional security and income support to
farmers.
•Promote, developing and disseminating technologies for enhancing production and productivity.
•Assisting states in addressing the entire value chain, right from the stage of pre-production to the
consumers table through appropriate interventions.
•Creating employment generation opportunities for skilled and unskilled persons, especially
unemployed youth.
•Improving the delivery and monitoring mechanism under RKVY-RAFTAAR funded projects.
Strategy
To achieve the above objectives, the scheme will adopt the following strategies:
• Companies to submit a Detailed Project Report (DPR), to States directly or SFAC for
consideration of SLSC.
• Organize growers into Farmers Association/Groups in every project.
• Identify/select aggregators and enable tie-up with farmers/associations/groups.
• Coordinate with ICAR/SAUs/Private Sector to provide improved varieties of seeds/seedlings and
to introduce innovative technologies as required.
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• Addressing issues in the credit supply chain with support from NABARD.
• Measures for production and productivity enhancement by adopting improved cultivars,
production technologies using precision farming techniques, protected cultivation, micro irrigation
etc.
• Primary processing, sorting, grading, washing, packaging and value addition clusters.
• Logistics from farm to market including:
Post-Harvest Management, Storage and Transport infrastructure.
Aggregators for suitable tie ups in the supply-chain.
• Support to these groups to develop warehouses, cold chains, Controlled Atmosphere (CA).
Implementing Agencies
1. Small Farmers Agri-Business Consortium (SFAC).
Proposals can be either submitted directly to States or to SFAC at the national level. In either case, the
NLA or State Government will examine the project proposal from the viewpoint of suitability to priorities
and objectives of the State and the general framework of RKVY-RAFTAAR. If found suitable, the
proposal will be forwarded to the SLSC chaired by Chief Secretary for consideration. Based on the
approval of the SLSC, the project will be rolled out after an agreement has been signed between the State
Government and Project Promoter.
All fund releases will be made directly by the State Government to the concerned private sector Project
Promoter, based on satisfactory progress reports. Funding will be in the form of reimbursement of
expenditures incurred by the Project Promoter on various approved budget heads, after these have been
duly verified by the independent monitoring agency.
A baseline survey to determine the entry level situation and end-of-project survey will also be conducted
by the independent monitoring agency to assess the impact of the project intervention. It will further
furnish monthly, quarterly and annual progress reports to DAC&FW and the State and operationalize
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Information Communication Technology (ICT) enabled Management Information System (MIS) up to
grass root level and if need be develop and host its own website.
The scheme will be demand and need based in each segment. Technology will play an important role in
different interventions. The interventions envisaged for achieving desired goals would be varied and
regionally differentiated with focus on potential vegetable crops to be developed in clusters by deploying
modern and hi-tech interventions and duly ensuring backward and forward linkages.
Performance based overhead costs will be given to the companies for meeting administrative expenses for
executing the projects. The companies would have to submit Results Framework Document (RFD) for
getting the project approved. If the company‟s performance is excellent, it can be entitled to maximum
overheads of 8 per cent, similarly, if it is average, it would be entitled to overheads of 5 per cent. If the
company‟s performance is poor, it would be only entitled to overheads of 2 per cent.
The release of funds would be done in a phased manner as per the approved project proposal. The entire
project would be divided into five phases with a specific financial allocation for each phase. Amount
pertaining each phase would be released during the beginning of each phase. For availing funds of the
subsequent phase, the company would have to submit a detailed utilization certificate from the company
auditor and interim project report of that phase.
This DRM will be the forum to resolve any disputes which arise during the implementation of PPPIAD
projects. If this committee is unable to resolve an issue, it will be referred to the SLSC chaired by Chief
Secretary, in which all members of the DRM will be invited to participate. The decision of the SLSC in
any matter will be final.
Disclaimer: PPP-IAD guidelines are subject to revision from time to time as per the policy directions
from GOI.
The components / activities which would be eligible for project based assistance under RKVY-
RAFTAAR are elaborated below. This is an illustrative list and the States may choose other
components/activities, but ensure that they are reflected adequately in the SAP and the DAP.
a) Integrated development of major food crops such as wheat, paddy, coarse cereals, minor millets,
pulses, oilseeds: Assistance can be provided for making available certified/HYV seeds to farmers;
production of breeder seed; purchase of breeder seed from institutions such as ICAR, public sector
seed corporations, production of foundation seed; production and distribution of certified seed;
seed treatment; Farmers Field Schools at demonstration sites; training of farmers etc. Similar
support would be provided for development of other crops such as sugarcane, cotton or any other
crop/variety that may be of importance to the state.
b) Integrated development of fodder crops including perennial grasses, fodder , trees and shrubs:
Assistance can be provided for making available certified/HYV fodder seeds to live stock rearers,
production & purchase of breeder fodder seed from institutions such as ICAR and SAUs, public &
private sector seed corporations, production of foundation fodder seed; production of certified
foundation seed. Assistance can also be provided for forage production from
Wasteland/Gauchar/Rangeland/grassland/non-arable land/Rivers basin, drainage line, degraded
mining land, watershed catchments area/canal embankments/Forest fringe. Fodder demonstration
for Livestock based farming system approach. Assistance extended to crops residue producers and
crop residue collection, storage transportation for fodder to animals. Diversification of
Agricultural crops to fodder crops Inter cropping of Fodder Crops in horticulture grove.
c) Agriculture mechanization: Assistance can be provided to individual beneficiaries for farm
mechanization efforts especially for improved and gender friendly tools, implements and
machinery. However, assistance for large equipment e.g. tractor, combine harvester, sugarcane
harvester, cotton picker etc. for which individual ownership may not be economically viable,
assistance should only be limited for establishing custom hiring centres under RKVY
(Infrastructure & Assets) stream.
d) Activities related to enhancement of soil health: Assistance can be provided to the farmers for
distributing soil health cards; micro nutrient demonstration; training of farmers for promotion of
organic farming including printing of publicity/utility literature; amelioration of soils affected with
conditions such as alkalinity and acidity.
e) Development of rainfed farming systems in and outside watershed areas: Assistance for
promoting integrated farming system (agriculture, horticulture, livestock, fisheries etc.) generating
livelihoods for farmers Below the Poverty Line (BPL).
f) Integrated Pest Management schemes: This would include training of farmers through Farm
Field Schools etc. on pest management practices; printing of literature/ other awareness
programmes.
g) Promoting Extension Services: This would include new initiatives/support ongoing initiatives for
skill development, training & extension activities under Sub- Mission on Agriculture Extension
(SMAE) initiatives – both in terms of more coverage and enhanced outreach, preferably those of
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small & marginal farmers through-
(i) Skill Development for imparting skill based training of rural youths of more than 200 hours
duration.
(ii)Complement and supplementing ongoing Training & Extension activities of SAME, especially
under ATMA.
(iii) The support would help revamp the existing State agricultural extension systems.
Activities relating to enhancement of horticultural production: Assistance will be available for nursery
development and other horticulture activities, pollination support through bee keeping and establishment
of new garden (Area expansion) for fruits, vegetables, flower, mushroom, spices, aromatic plants and
plantation crops etc.
h) Animal husbandry and fisheries development activities: Assistance will be available for
improvement in fodder production, genetic up-gradation of cattle and buffaloes, enhancement of
milk production, enlarging raw material base for leather industry, poultry development,
development of small ruminants and enhanced fish production, Improvement in livestock health
(Sub-component- Foot and Mouth Disease Control programme, Vaccination and surveillance
against PPR, Brucellosis and other economically important disease of livestock and poultry,
Training of Vets and Para-vets, Awareness and Animal Health Camps, Surveillance under
Antimicrobial Resistance (AMR) and one Health approach for zoonotic disease).
i) Study tours of farmers: Study tours of farmers within the country especially to research
institutions. Model farms etc.
j) Organic and bio-fertilizers: Support for decentralized production at the village level and their
marketing, etc. This will include vermicomposting and introduction of superior technologies for
better production.
k) Sericulture: Sericulture upto the stage of cocoon production along with extension system for
cocoon and silk yarn production and marketing.
The above list is not exhaustive. Therefore, schemes that are important for agriculture and allied sector
development, but cannot be categorized under (a) to (k) can also be proposed under this stream.
However, projects for creation/strengthening of infrastructure & assets should be funded under RKVY –
RAFTAAR (Infrastructure & assets) stream.
5. Financing State‟s share and/or topping up subsidy level in respect with other
Central/State Schemes;
7. Purchase of vehicles;
8. Financing any kind of debt waiver, interest subvention, payment of insurance premium,
compensation to farmers and calamity relief expenditure; additional bonus over &
above Minimum Support Price (MSP);
FORMAT
i. Context/Background: This section should provide a general description of the scheme/project being posed
for appraisal.
ii. Problems to be addressed: This section should describe the problem to be addressed through the
project/scheme at the local/regional/national level. Evidence regarding the nature and magnitude of the
problems should be presented, supported by baseline data/survey/reports etc.
iii. Aims and Objectives: This section should indicate the development objectives proposed to be achieved,
ranked in order of importance. The outputs/deliverables expected for each development objective should be
spelt out clearly.
iv. Strategy: This section should present an analysis of alternative strategies available to achieve the
development objectives. Reasons for selecting the proposed strategy should be brought out. Basis for
prioritization of locations should be indicated (wherever relevant). This section should also provide a
description of the ongoing initiatives, and the manner in which duplication can be avoided and synergy
created with the proposed project.
v. Target Beneficiaries: There should be a clear identification of target beneficiaries. Stakeholder analysis
should be undertaken, including consultation with stakeholders at the time of scheme/project formulation.
Impact of the project on weaker sections of society, positive or negative, should be assessed and remedial
steps suggested in case of any adverse impact.
vi. Management: Responsibilities of different agencies for project management of scheme implementation
should be elaborated. The organization structure at various levels, human resource requirements, as well as
monitoring arrangements should be clearly spelt out.
vii. Finance: This section should focus on the cost estimates, budget for the scheme/project, means of
financing and phasing of expenditure. Options for cost sharing and cost recovery (user charges) should be
explored. Issues relating to project sustainability, including stakeholder commitment, operation-
maintenance of assets after project completion and other related issues should also be addressed in this
section.
viii. Time Frame: This section should indicate the proposed zero date for commencement and also provide a
PERT/CPM chart, wherever relevant.
ix. Cost Benefit Analysis: Financial and economic cost-benefit analysis of the project should be undertaken
wherever such returns are quantifiable. Such an analysis should generally be possible for infrastructure
projects, but may not always be feasible for public goods and social sector projects.
x. Risk Analysis: This section should focus on identification and assessment of risks in implementation and
how these are proposed to be mitigated. Risk analysis could include legal/contractual risks, environmental
risks, revenue risks, project management risks, regulatory risks, etc.
xi. Outcomes: Criteria to assess success and whether or not the development objectives have been achieved
should be spelt out in measurable terms. Base-line data should be available against which success of the
project will be assessed at the end of the project (impact assessment). Success criterion for scheme
deliverables/outcomes should also be specified in measurable terms to assess achievement against
proximate goals.
xii. Evaluation: Evaluation arrangements for the project, whether concurrent, mid-term or post-project should
be clearly spelt out. It may be noted that continuation of schemes from one period to another will not be
permissible without a third-party evaluation.
Last but not the least, a self-contained Executive Summary should be placed at the beginning of the document.
Note:
1. SLSC may co-opt two more members from Agricultural Research Organizations, reputed NGOs
working in the field of Agriculture, Deputy Commissioners of important districts, and leading
farmers.
2. The quorum for the SLSC meeting would not be complete without the presence of at least one
representative from the Government of India.
Note:
(i) Component -wise UCs may be furnished for General, SCSP, & TSP separately for Normal RKVY-
RAFTAAR and each of the Sub-schemes.
(ii) Sanction No. and date of sanction for release of State share fund should be mentioned in UC.
Ongoing projects
Sector Name:
Sl. Name of Sanctioned Total Phasing of Fund Fund sought in Targets Achievements Remarks
No. Project SLSC No./ Cost expenditure received C.F.Y. (if any)
Date (Year-wise) so far
Physical Financial Cost/Unit Physical Financial
Total
New projects
Sector Name:
Sl. Name of Total Cost Phasing of expenditure Fund sought in C.F.Y. Targets Remarks
No. Project (Year-wise) (if any)
Total
Recommended activity mapping for effective devolution of funds, functions and functionaries to Panchayati Raj Institutions (P RIs)
3. Implementation Release of priorities Will be associated in Will be associated Will be associated Priority should
DAC & FW:
of Projects (Crop, projects based on selection of site/ in selection of in selection of be given to
funds to
Development Release of funds to availability of funds location of projects in locations/villages beneficiaries based
implementing SC/ST, Women
Horticulture, State consultation with on cluster
Departments/ implementation and
Micro Mini implementing agencies approach
Agencies. weaker section of
irrigation, agencies. (however, there the society.
Animal should not be any
Husbandry, repeat beneficiary
Sericulture etc. year after year in
as per sectors RKVY-
taken up RAFTAAR).
by each State)
DAC & FW: Dept. of Agriculture, Cooperation & Farmers Welfare, DAP- District Agriculture Plan, SAP- State Agriculture Plan, SHG- Self Help Group
Sl. Scheme sub component Allocation (Rs. Cr.) Percentage Level to which mapped, based on activity mapping of function Remarks
No. /funding stream (% of allocation)
Sectoral and district –wise allocation of projects under RKVY-RAFTAAR shall be done by the States. State may devolve funds to Panchayat bodies as per projects allocated for
implementation.