PROJECT IDENTIFICATION RASHTRIYA KRISHI VIKAS YOJANA (RAFTAAR) ANALYTICAL PATHWAYS FOR PROJECT IDENTIFICATION Dr J P Mishra, Adviser (Agriculture) NITI Aayog 26th April, 2018, Vigyan Bhawan

RKVY Genesis Approach Funding

RKVY: JOURNEY SO FAR… RKVY, as conceived, had two purposes: Deceleration in productivity, imports of foodgrains and low public investment in agriculture 53RD NDC meeting on 29th May, 2007 adopted a resolution to initiate ACA to States RKVY launched in 2007 to operationalize the resolution of NDC RKVY, as conceived, had two purposes: Encourage States to draw up District and State Agricultural Plans; and Increase their own spending in the sector to rejuvenate agricultural development

RKVY: APPROACH (XI Plan to XII Plan and beyond) Inclusive investment-infrastructure and productivity Funding decentralized - larger direct contribution by States Focus Innovations Performance and disadvantaged areas Infrastructure, productivity XI Plan Investment by states in established technologies, and infrastructure Planning and funding - decentralized to states and districts Focus increased investment higher funding to disadvantaged areas farm income along with production National Priorities: Potential but unexploited areas-BGREI Chronic problems-VIIDP and crop diversification Specificity - saffron mission Bridging gaps-A3P, INSIMP, AFDP, NMPS Innovations- Public private projects and vegetables clusters

RKVY: SCALE OF FUNDING Positive Impacts State plan expenditures increased from 1.0% of GDP in 10th plan to 1.4% in the 11th plan State plan expenditures on Agriculture and Allied Sectors (excluding RKVY) increased from about 5% in 10th plan to over 6% in 11th plan RKVY stimulated the States to provide greater attention to agriculture Some vital sectors benefitted Significant deviations afterwards XI Plan Rs. 22,408.77 crore released to states and UTs Crops, horticulture, farm mechanization, NRM, Agri Marketing & Post-harvest management, livestock, fisheries, extension etc. XII Plan Rs. 34994.8 crore allocated (RE). Rs. 27600.35 crore spent Annual Plan Rs. 4750 crore BE in 2017-18 and Rs. 3600 crore in 2018-19 (BE)

Trends of allocations to Agri & Allied sector in State Budget during 2013 to 2016

State’s budgetary support to Agri & Allied sector

RKVY Priorities -Past and Present

Overview of Agriculture RKVY: Priorities –in the past Macro level analysis….. Overview of Agriculture

Overview of Agriculture RKVY: Priorities -Immediate past State level analysis Overview of Agriculture Huge Inter State and Intra sector variations Recurring expenses preferred-crops and inputs Investment in future technology, income/price realization activities least

RATIONALIZING ALLOCATION CRITICAL FOR CAPITAL FORMATION Crop centric investment under RKVY PHM got the least Critical for future growth and Make in India initiative Many important sub-sectors allocated less capacity of project preparation and absorption Can it be linked with contribution to State Agri-GDP?

DISTRIBUTION OF RESOURCES More than 20% projects to Livestock sector Very thin distribution of resources in many projects Impact on scale and outcome Effect on outreach

RKVY Project Identification -Pathways

RKVY “NITI Aayog to undertake State-wise evaluations of RKVY for in-depth evaluation of the projects sanctioned so that the benefits of……….to sanction projects can be dispassionately assessed”

RESPONSE TO PROBLEMS.. Inadequate response to identified problems Macro level analysis….. Based on the data of 2014-2017 Inadequate response to identified problems Critical sector-marketing, water, post harvest and research got the least

Project Identification Pathway - A MISSING LINK Production Growth Over 51% projects in < Rs 1 crore category emanated without SAP More than 75% projects in >20 crore emanated from SAP Non-SAP/DAP projects prevailed over SAP-DAP projects in terms of allocation

Project Identification Pathways A MISSING LINK Infrastructure Over 65% projects in < Rs 1 crore category emanated without SAP More than 56% projects and 65% allocation in >20 crore category emanated from non-SAP route Non-SAP/DAP projects prevailed over SAP-DAP projects in terms of allocation

RKVY Analytical Pathways for Project Identification

Since 2014-15, the inter-state allocations of RKVY funds are done without seeking DAPs States, due to change in nature of funding, questioned insisting on DAPs Still, needs well analytical pathway for addressing the problems identified

RKVY: Inter-State allocation criteria Percentage share of net un-irrigated area in a State to the net unirrigated area of all States 15% Percentage of small and marginal farmers in the state compared to total number of small and marginal farmers in the country 20% Moving averages of the increase in plan expenditure in agriculture & allied sectors including animal husbandry, fisheries etc. in the previous 3 year period 30% Average Gross State Value Added (GSVA) in agriculture and allied sectors in the last 3 years Inverse of Yield gap between state average yield and potential yields as indicated in the frontline demonstration data 10% Percentage of youth population in the state compared to total youth in the country 5% Incentivises all but reforms

Critical Path Analysis (CPA) for RKVY Prioritise projects to address the problems identified in inter-state allocation criteria Twin goals: Resource Allocation Number of Projects Identifying activities according to priorities Sequencing activities along with a timeframe

Non-negotiable for CPA in RKVY Preparation of DAIDP and SAIDP ~25 percent projects sanctioned to originate from districts TSUs set up with district level agencies as participants Ensure convergence with state level bodies Example: SLNA for watershed projects ~50 percent investment on hard infrastructure ~75 percent projects from SAIDP route

CPA as a means to achieve... Allocation among sub-sectors based on analysis of growth potential Congruence of technical areas with sub-sector focus Example: technical area-market development; sub-sector-horticulture Identify activities for priorities in plans Example: priority-rainfed areas; activity-micro-irrigation Bridge need for augmentation through RKVY funds Example, FPOs, Post Harvest Management, Value Chain Allocation on national priorities Example, Market Infrastructure, GrAMs

Thanks….