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RASHTRIYA KRISHI VIKAS YOJANA (RAFTAAR)

RASHTRIYA KRISHI VIKAS YOJANA (RAFTAAR). ANALYTICAL PATHWAYS FOR PROJECT IDENTIFICATION. Dr J P Mishra, Adviser (Agriculture) NITI Aayog. 26 th April, 2018, Vigyan Bhawan. Genesis Approach Funding. RKVY. RKVY: JOURNEY SO FAR …. RKVY: APPROACH ( XI Plan to XII Plan and beyond).

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RASHTRIYA KRISHI VIKAS YOJANA (RAFTAAR)

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

  2. Genesis Approach Funding RKVY

  3. RKVY: JOURNEY SO FAR…

  4. RKVY: APPROACH (XI Plan to XII Plan and beyond)

  5. RKVY: SCALE OF FUNDING • 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) 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

  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. Priorities -Past and Present RKVY

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

  10. 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. Project Identification -Pathways RKVY

  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. Macro level analysis….. Based on the data of 2014-2017 RESPONSE TO PROBLEMS.. • 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. Analytical Pathways for Project Identification RKVY

  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 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….

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