Download
1 / 26
260 likes | 272 Views
Explore the transition to a new Direct Benefit Transfer model for fertilizers in India, addressing challenges, complexities, and innovative solutions. Follow the progress and expected outcomes of this pilot project.
E N D
Pan India DBT Rollout in Fertilizers DBT in Fertilizers Workshop on 2nd Feb. 2017 Department of Fertilizers
Background Hon’ble Finance Minister in Budget Speech for 2016-17 announced: “…. introduce DBT on Pilot basis for fertilizers in few districts …....” Decisions taken in PMO on 12th March 2016: • Project to be started on a pilot basis. • A committee headed by CEO, NITI Aayog to recommend and finalize modalities. Highlights of Meeting at NITI Aayog on 28th Mar 2016: • Pilot Project in 16 Districts. • 8 Districts each in Rabi 2016. • 8 Districts each in Kharif 2016.
Traditional DBT model The key elements of traditional DBT model (E.g. in LPG) are: Beneficiaries and their entitlements are defined. Beneficiary is identified on the basis of Aadhaar authentication. After Aadhaar authentication, subsidized entitlements are sold to beneficiary at market price. Subsidy amount is transferred to the beneficiary after sale transaction.
Challenges & Complexities of implementing traditional DBT in Fertilizers DBT in Fertilizers is much more complex than DBT in other schemes. • Beneficiary is not defined. (Presently being sold on no denial basis.) • Beneficiary entitlement is not defined. • Subsidy amount is more than twice of subsidized price. • Moving MRP to Market Price will cause huge burden on farmers. (As they would be required to pay market price upfront.) • Multiple products (Urea, P&K etc) have varied subsidy amounts. • Subsidy component varies plant / Company wise even for the same product.
Subsidy for Urea manufactured by NFL Moving the MRP to Market Price would mean that Urea of Same Company but from different plants would have to be sold at different prices.
Proposed DBT Model in Fertilizers • Selling price will not be moved to market price, unlike LPG. (Farmer will not be required to pay market price upfront.) • Farmer are identified on the basis of Aadhaar/ EPIC/ KCC. • Fertilizers are sold at subsidized MRP, and subsidy amount is paid by the Government on behalf of farmer, directly to the manufacturer. • As of now subsidy is paid to the manufacturer on basis of “receipt at Districts/Retailers”. • As per the proposed model the subsidy will be paid based on “actual sales” captured on PoS device. • Subsidy to manufacturer will be paid on weekly basis.
List of Pilot Districts * Three additional districts were included in Pilot phase on 27th January, 2017.
Existing Payment Process • Companies become eligible for payment as soon as quantity is received in the Districts. • Company submits bills on basis of receipts at districts. The bill is signed by company representative and CA. 95% (Urea) subsidy and 85-90% (P&K) subsidy is released within 2 months. • Remaining 5% (Urea) subsidy and 10-15% (P&K) subsidy is released after (a) retailer’s acknowledgement on mFMS and (b) issuance of B1 and B2 certificates from state Government.
Re-engineered Payment Process • Estimate the monthly expenditure Head Wise for Pilot Districts on the basis of Supply Plan of the previous month with a variation (+/- 10%). • Approval of Competent Authority to be taken for estimated Monthly expenditure, in concurrence with IFD (Advance Sanction). • Fertilizers sale transactions to be captured online using Biometric Authentication. • On 8th, 16th, 24th and last day of the month, company Representative to generate bills head wise on the basis of actual sale. Weekly bills to be digitally signed and uploaded in iFMS. • On next day, Bills received to be processed and the claims added to be digitally signed by DDO .
Re-engineered Payment Process (contd..) • DDO will issue a digital sanction for the admitted claim amount. • Once the digital sanction is received, PAO will pass the payment through PFMS. • PFMS Will give records to iFMS for the payments made. • System will generate weekly /monthly expenditure statements for the company and concerned departments. • On 20th of every month the Concerned Division (Urea & P & K) will initiate the process of reconciliation and recoup Heads and prepare estimated requirement for next month. • This process has been approved by CGA.
Expected outcomes of DBT • Significant impact on prevention on leakage and diversion. • Create Aadhaar seeded database of beneficiaries. • Transaction visibility at buyer level. • Subsidy transfer to manufacturer on the basis of actual sales. • Identify field level challenges both at the retailer and farmer level. • Infrastructure level challenges such as network connectivity and devices. • Acceptance levels (of retailer and farmer) towards technology intervention. • Capacity levels such as literacy levels (of retailers) to operate PoSmachine.
Key Stakeholders • State Governments • District Administration • Fertilizer Companies (LFS) • Technology Partner (NIC) • Owner (DoF) 1 5 Dept of Fertilizers State Governments Stakeholders Fertilizer Companies 2 NIC 4 District Administration • The success of pilot will depend on close coordination among all stakeholders, • robust monitoring and evaluation mechanism, and setting up of a professional team. 3
Information to be captured at PoS device If Aadhaar number is available, the buyer will be authenticated through UIDAI with e-KYC service. Mobile number is mandatory. If mobile number is not available, the buyer will be asked to share mobile number of his family member. Sale Information Buyer Information • Information captured by Retailer • Buyer Name-M • Father’s name-M • Mobile Number-M • Aadhaar Number-M/O • Voter/KCC-M/O • Address-O • Land details- O • Soil Health Card –O • Type of Fertilizers-M • Quantity of Fertilizers-M • MRP of Fertilizers-M • Name of the Plant-M • Name of the company-M M- Mandatory O- Optional
To ensure 100% Aadhaar penetration in DBT districts. • Seeding of Aadhaar number in soil health card data base. • Seeding of Aadhaar in Land Record Database. • Constitution of “DBT working group” comprising of all stakeholders at District Level. • Monitor procurement of PoS devices through LFS as per specification approved by NIC • To ensure through fertilizer companies/State Agriculture Department that dealer’s list uploaded on iFMS is latest/correct. • To ensure that the stock position at company warehouse and retailers are always updated in iFMS. • Providing of details of district/block/mandal officer to NIC along with mobile number, so that login can be created for them to access their iFMS portal. • Setting up grievance redressal mechanism. Preparatory Activities by State Governments & District Collectors
Roles and Responsibilities – Companies • Procurement of PoS devices/tablets and installation of application as per instructions issued by NIC. (http://mfms.nic.in/ ). • Deployment of PoS devices/tablets at retail points. • Depute a nodal officer for each district for coordination with District Administration. • Arrange district level workshops with retailers. • All sale transactions (Company to wholesaler or retailer) must be entered online on real time basis. • Sensitize the field officer in district regarding implementation of DBT. • Complete a network survey of all retail points for connectivity assessment. • Availability of Aadhaar for all retailers. • Coordination with device vendor and NIC to sort out hardware/software issues. • Periodic reporting to DoF and District Collector.
Responsibilities of NIC • Software development of iFMS, DBT (PoS Devices) • Troubleshooting and Helpdesk Support • Proper Coordination with device vendors to sort out hardware/ software issues. • software application or MIS on Key Performance Indicators.
PAN India Deployment of PoS Devices • Vide Cabinet decision dated 25th October, 2012, Rs. 50/MT was allowed for acknowledging the receipt of fertilizer through mFMS portal. • No action was taken by Fertilizer companies/Retailers to implement this decision. • In a workshop held on 16th September, 2016, it was made mandatory to acknowledge fertilizer receipt through PoS devices w.e.f. 1st January 2017.
PAN India Deployment of PoS Devices • Since no action was taken to install, date of deployment of PoS machines was extended by one month, i.e., upto 31st January, 2017 during workshop held on 11th November, 2016. • As companies failed to comply revised deadline, this deadline has been further extended to 31st May, 2017. • It has been clarified to companies that after 31st May, 2017, subsidy will be paid only on the quantity of fertilizer sold through PoS devices.
The Way Forward: Rollout of PoS Devices across all States • Steps Involved • Procurement of devices. • Total requirement in 35 States/UTs :175619 • In 19 States/UTs where PSUs are LFS :81080 • In 14 States/UTs where Pvt. Companies are LFS :94539 • Preparation of devices (Installation of software). • Training of Master for all states. (For Pilot states conducted & for other Trainers states training scheduled.) • District wise training of retailers. • Deployment of devices.
Deployment of PoS devices – in states covered by Private Companies
Training of master Trainers/Retailers • Training of master Trainers - done for pilot districts. • For remaining states workshop being done today. • Training of retailers will have to be held district-wise. • Full support of District Collectors, District Agriculture Officer , DIOs and State Government required for training and deployment of devices.
