1. 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

2. RKVY
Genesis Approach Funding

3. 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

4. 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

5. 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, crore released to states and UTs
Crops, horticulture, farm mechanization, NRM, Agri Marketing & Post-harvest management, livestock, fisheries, extension etc.
XII Plan
Rs crore allocated (RE).
Rs crore spent
Annual Plan
Rs crore BE in and Rs crore in (BE)

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

7. State’s budgetary support to Agri & Allied sector

8. RKVY
Priorities -Past and Present

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

10. 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

11. 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?

12. 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

13. RKVY
Project
Identification
-Pathways

14. 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”

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

16. 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

17. 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

18. RKVY
Analytical Pathways for Project
Identification

19. 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

20. 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

21. 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

22. 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

23. 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

24. Thanks….