Direct Transfer of Subsidy of different agricultural Inputs to farmers

(DBT INITIATIVES IN ODISHA)

To ensure Seamless & automated subsidy benefit transfer to a farmer’s bank account,

electronically.

How? Registration of farmers with their details & bank accounts.

Validation of farmers’ bank accounts through PFMS gateway. Linking the developed application software with scheme funds.

…...And thereby, Reducing delay in subsidy administration.

Ensuring correct targeting of the beneficiary. Curbing pilferage, if any.

Automated bills & UC generation.

To electronically transfer input subsidy (GOI/State) to the

registered farmer’s account through PFMS (Public Finance

Management System) mode.

Ensure Integrity of Transaction & Integrity of supply of inputs.

To avoid wrongful inclusion and/or exclusion of farmers by Dealers.

To prevent any misuse of subsidy.

Develop a robust MIS to provide quick and convenient method for

grievance redressal.

Specific Objectives defined…

D

A Dedicated DBT cell set up by the Agriculture & Farmers’

Empowerment Dept.

Roping in six banks namely, BOI, Canara Bank, SBI, HDFC Bank, Axis

Bank and ICICI bank through floating of EOI for subsidy disbursal and

to facilitate interest free loans on subsidy for maximum 3 months to

ease upfront payment.

DBT for seed input subsidy implemented from Kharif 2016 and DBT for

Farm Machineries subsidy including pump sets already rolled out on

6.3.17 through out the State.

Application software for Execution of private Lift Irrigation Points in

farmer field and administration of subsidy in DBT mode have been

finalized and the scheme will be rolled out during April.

Notifying schemes under section 7 & 57 of Aadhar Act will be done

very soon.

PROGRESS SO FAR………..

D

Digitization & Aadhar seeding of farmers’ data base (HOF) including

family members will be completed very soon.

Capturing Aadhar number of farmers by the Village Agril. workers and

Agril.overseers through specifically developed mobile app.

Orienting officials from the Govt. of Tripura, Chhatisgarh,Telangana and

UP on the automation system of subsidy disbursal of Seed DBT.

Inclusion of all the kinds and incentives under different demonstrations

programmes through DBT Is being worked upon.

Listing up of all inventories/assets created/ to be created,

demonstrations done/to be done through GPS/Geo tagging by

specifically developed mobile apps.

PROGRESS SO FAR………..Contd…

Shri Naveen Patnaik, Hon’ble Chief Minister of Odisha, inaugurating Direct Benefit Transfer of Seed

Subsidy programme and addressing the gathering at the State Level Krushak Divas (Akhaya

Trutiya)-2016 at Laxminarayanpur Villege, Pipili Block, Dist Puri, Date-09-May-2016

Registration of about 18.00 lakh farmers (HOF) (59.30 lakh family

members) through web and mobile interface till date . Bank account details, family members, Photo ID, Aaadhar number

(optional) are being captured during the registration process. Share croppers are not deprived during the registration process. 2719 Service Cooperative Societies(PACS/LAMPS) and 628 AAOs were

involved in registering farmers. Farmers registered (paddy procurement) under the FS & CW Dept.

have also been brought to the fold of registered farmers. Registration is dynamic & is still continuing at

http://odishaseedsportal.nic.in & http://agrisnetodisha.ori.nic.in by the AAOs & PACS/LAMPS.

Registration of Farmers (Common to all schemes through DBT)

SEED-DBT Integration of applications – system flow

Achievement …(Kharif-2016)

Sale of seed through DBT mode

Crop Lifting Farmer Sale

Paddy 299593.40 291943.80

Black Gram 486.32 5.24

Groundnut 419.70 120

Scheme wise Details

Scheme Name No of Distinct Farmer Total Amount (in Rs.)

NMOOP 325 625339.5

NFSM 22788 11821350

RKVY 48824 23014663.2

STATE PLAN 277255 247654412

Total 349192 283115765

DBT-FARM MACHINERIES SUBSIDY

Start

Farmer registration Issue of Farmer-ID

Login

End

Administrator Target to DDA

Block Target Farmer Apply online

Auto Generation of Permit & SMS to farmer

Vendor to receive the money through RTGS/NEFT, supply the

machine, input the details of machine & upload photo

Fund transfer from the farmer

validated/loan account to dealer

account

Generation of payment file

Manufacturer registration

Approval by Admin.

Payment Gateway

Mechanisation DBT Mode

Third party verify 50%

Random

No officers/intermediaries involved in the entire process from

generation of permit to subsidy disbursal. Farmer has the option to choose the best make, model, best

negotiated price in view of the dealer billing price and sale price of each dealer shown in the portal.

Cashless transfer of all in cost of the machine from the farmer validated account/loan account of the farmer to that of the registered dealer.

Dealer has the option only to choose the engine no and chassis no. against the permit.

Farmers availing loan from the registered banks will be eligible for free interest on subsidy up to 3 months period.

Manufacturer cannot manipulate the machine serial/pump engine no. in view of uploading the bills raised in favour of the distributor/dealer.

Computer generated bill raised in favor of farmers against the all in cost received.

(Transparency and integrity of subsidy transaction of farm machines)

REGISTRATION OF MANUFACTURERS / DEALERS

Dealer Registration Page

Model Cost Entry by Manufacturer

Grouping of Dealer by the Manufacturer

Distribution of Engine/Chasis/Sl.No.

Online Application Form

Permit Page

Dealer Supply Page

System Generated Invoice

DBT-SUBSIDY FOR EXECUTION OF LIFT IRRIGATION POINTS

Start Farmer registration Confirm by

Administrator

Login

End

Administrator Target to DDA

DDA Login Block Target Farmer Apply online

VAW upload GPS photo issue Go ahead (within 7days)

AAE, inspection, upload GPS photo, Bill & SRC

(within 15 days)

DDA,DAO (Random check)

Completion + Bank loan

sanction letter (Hard copy)

Generation of payment file for Release subsidy

AAO upload

completion+loan sanction letter (within 2 days)

JALANIDHI-I DBT mode

Bank to release subsidy (within 7 days)

DBT-SUBSIDY FOR NEED BASED INPUTS

Issues & Challenges encountered during implementation of SEED-DBT

PROCESS: Bulk verification to the account number and IFSC Code combination done through PFMS portal. For account holders of DCCB banks, one particular software company does the validation of accounts.

CHALLENGES & SOLUTIONS: Confusion hovers around the Account holder name.

Many times the account Number and the IFSC code combination are valid but may not belong to same beneficiary.

To ward off this, Fuzzy logic is being used to revalidate the acceptance cases. Three Artificial Intelligence based algorithms are hybridized together to compare the account holder name registered in the system and the account holder name returned by the PFMS/OSCB .This brings the speed and accuracy to the system to fuzzy match the names rating them as “Complete Match”, “Strong Match”, “Normal Match”, “Weak Match”, “Mismatch”.

Some “Normal Match” & “Weak Match” cases are cleared manually due to high inaccuracy ratio. After getting accepted status from fuzzy logic, farmer IDs are generated and intimated to the farmers through NIC SMS.

Validation of accounts of registered farmers & Generation of Farmer ID

During Registration….

Challenges : 1) Need to cover maximum farm families within 2 months time span before Kharif-16 2) A good number of farm families did not have bank accounts. 3) Inclusion of share croppers 4)Registration in interior pockets of the State, where there is no network/feeble net connectivity. 5) Biggest problem/challenge was making farmers aware on registration with a bank account and photo ID in hand.

Solutions: 1) Registration done through PACS/LAMPS capitalizing on their previous experience of enrolling about 9 lakh farmers for Paddy procurement in the Department of Food Supplies and Consumer Welfare Department with incentives of Rs 5/- per individual registration. 2)To cover almost all the farm families, HOF was only taken in to consideration with liberty to mention the bank account details of any one of his family members. 3) Share croppers only to give a self declaration in support of he/she being a farmer. 4) The PACS/LAMPS of those areas were taken to sub-division/district HQs for registration on war footing basis. 5) All the field functionaries of Agriculture department & Cooperation deptt had been engaged and they

gave some exclusive time daily for the PR campaign. Different Closed social network groups were formed at block level, district level and state level to monitor the progress of registration vis-à-vis targets given to VAWs/AOs/PACS/LAMPs.

During online seed sale process….

Challenges: 1) Creating awareness amongst the dealers about the process of doing online seed transaction both through mobile and web app. 2) Online sale of seeds through Mobile App/Web Application was another challenge in remote interior areas with no/feeble data connectivity. 3) Sale of seeds to unregistered, or registered farmers whose IDs could not be generated. Solutions: 1) Hands on training and awareness programmes on continuous basis were conducted at GP, Block, District and State level for such purpose. 2)The Mobile App for seed transaction i.e. Seed DBT App has been so designed that it works in both offline and online mode. 3) Unregistered farmer/ farmer who is registered but whose ID generation is pending, were also allowed to purchase seed with district specific 0 ID (called zero transaction) and that farmer gets subsidy only after he gets FID after registration

During Payment Process….

Challenges: 1) Crediting subsidy through PFMS by integrating with NIC applications was the most challenging task. Waiting for the response from PFMS to apply digital signature certificate without any control in our part. 2) Rejection of one particular farmer was resulting in the rejection of the entire payment file, involving around thousands of farmers. 3) Payment for the account holders in banks which were not integrated in PFMS mode in general and the State Cooperative Banks in particular. 4) Difficulties were also experienced in crediting subsidies from the bank level to the joint account holders, PPF accounts, RD accounts etc which have earlier been approved by PFMS after application of DSC.

Solutions: 1) Resource persons from NIC were deputed to Delhi and problem solved to some extent. 2) Manually removing the individual rejection from the file and sending it again. However, the PFMS solved the issue subsequently. 3) A dedicated bank account was opened in the Odisha State Co-operative Bank and their internal payment system was utilized for the purpose of subsidy payment 4) These contentious issues were solved on case to case basis after due corrections from the field.