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Million Farmers’ Initiative ( PPP for Integrated Agricultural Development) a framework for enabling public-private partn

Million Farmers’ Initiative ( PPP for Integrated Agricultural Development) a framework for enabling public-private partnerships under RKVY. Summary of Developments & Overview of Project Proposals. Background.

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Million Farmers’ Initiative ( PPP for Integrated Agricultural Development) a framework for enabling public-private partn

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  1. Million Farmers’ Initiative(PPP for Integrated Agricultural Development)a framework for enabling public-private partnerships under RKVY Summary of Developments & Overview of Project Proposals

  2. Background • Need to develop integrated value chains in agriculture- increase returns to primary producers • Importance of integrating producers with market players – reducing role of intermediaries • Call for stronger famer-industry linkages made by H.E. President of India on 15/12/11 and 15/2/12 • Leveraging RKVY investments to attract higher private investments in agriculture; integrate value chain

  3. Main Features of proposed PPPIAD • Corporates to propose integrated agricultural development projects involving min. of 5000 farmers • Encompassing all activities from “production” to “marketing” • Projects to span 3-5 years • Average investment per farmer – Rs 100,000 (Max. of Rs 50,000 from Govt. and remaining from the private sector) • Farmers’ subsidy component to be directly credited to their accounts/ reimbursement to companies on independent verification of activity • Mobilizing farmers into producer groups; building agri infrastructure; value addition to be main components. • Independent agency to monitor projects; payment on verification of results achieved

  4. Role of States • PPPIAD proposals to be directly submitted to States by corporates; approval by SLSC • SFAC to play technical support role if requested • Funding to approved projects directly by States through RKVY window • Independent monitoring agency to track progress and verify outcomes

  5. Performance Based Incentives • 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 if excellent, it can be entitled to maximum overheads of 8-10 per cent • If the company’s performance is poor, it would be only entitled to overheads of 1-2 per cent.

  6. Summary of developments so far

  7. Summary of Proposals received

  8. Next steps • PPPIAD draft paper circulated at Kharif Conference: States to send their comments by 15 March • PS/Secretaries invited to FICCI dinner with corporates for informal discussions – 7 p.m. on 5th March at Federation House • Detailed guidelines for PPPIAD to be issued by DAC by end March 2012 • States to consider a few pilot proposals during 2012-13

  9. Thank You We look forward to your suggestions

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