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HO DEPARTMENTS

Farm Sector Development Department
1. Genesis
 
The Farm Sector Development Department (FSDD) was created out of NABARD’s erstwhile Development Policy Department - Farm Sector.
 
The objective of the department is the implementation of multifarious farm sector initiatives aimed at:
 
  • Conservation and management of natural resources
  • Accelerating ground level credit flow by rural financial institutions
  • Promoting incremental agricultural production and productivity
  • Generating rural employment 
  • Raising the standard of living of rural poor through credit and grant
 
FSDD manages the following funds:  
 
  • Farm Sector Promotion Fund (FSPF)
  • Watershed Development Fund (WDF)
  • Tribal Development Fund (TDF)
  • Producers Organization Development Fund (PODF) 
  • ‘Producers’ Organization Development and Upliftment Corpus’ Fund (PRODUCE fund)
  • Umbrella Programme for Natural Resource Management (UPNRM) 
 
 
2. Core functions of the Department:
 
  • Farm Sector Promotion Fund (FSPF)
 
Farm Sector Promotion Fund (FSPF) was created in NABARD, by the merger of two erstwhile funds, viz. Farm Innovation and Promotion Fund (FIPF) and Farmers' Technology Transfer Fund (FTTF), on 26 July 2014.  The Fund focusses on promoting innovative and feasible concepts/projects and transfer of technology for enhancing production and productivity in agriculture and allied sectors. 
 
  • Watershed Development Fund (WDF)
 
NABARD has been implementing watershed development projects since the inception of Indo-German Watershed Development Programme in India (IGWDP) during 1990s. The participatory watershed development concept and methodology has proved to be a successful initiative in enhancing the productivity, production and improving livelihood security of rural community. 
 
To replicate the initiatives further in the drought prone areas of the country, the Union Finance Minister, in his budget speech for 1999-2000 had announced the creation of a Watershed Development Fund (WDF) in NABARD. WDF comprises a contribution of 100 crore each by Ministry of Agriculture (MoA,) Government of India (GoI) and NABARD.
 
  • Tribal Development Fund (TDF)
 
NABARD has been supporting tribal development through concessional rates of refinance, separate line of credit to agencies supporting tribal families, promotional activities, etc. However, a key concern for NABARD has been the sustainability of tribal livelihoods.
Based on the successful experience of Adivasi Development Programmes, NABARD embarked upon an ambitious program of replicating the wadi model across the country. In this direction, Tribal Development Fund (TDF) was created by NABARD with initial corpus of Rs. 50 crore, out of its profits for the year 2003-04. The Fund has grown over the years and the credit balance as on 31 March 2018 was Rs. 951 crore. The projects under TDF are implemented by partnering with the State Governments, Krishi Vigyan Kendras (KVKs), NGOs and corporates. A comprehensive tribal development programme having small orchard as the core component, popularly called as “wadi” model, is being implemented for improving the livelihood of tribal population. 
  • Promotion and Development of Farmer Producer Organizations
 
Producer Organization (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen, etc. Producer Organizations have been considered to be one of the effective means of linking small producers with the agricultural value chain for the purpose of enhancing net income of producers.
 
NABARD provides financial and development support to POs through two funds:
 
Producers Organization Development Fund (PODF)
 
Recognizing the strength of POs, NABARD created a dedicated fund “Producers, Organization Development Fund (PODF)” during 2011, to support these organizations on three levers i.e. credit facilitation, capacity building and market linkage support. In addition, grant support is also made available for business incubation services, skill building, documentation of successful models, ICT application in business management, etc.  
 
‘Producers’ Organization Development and Upliftment Corpus’ Fund (PRODUCE fund)
 
PRODUCE Fund of Rs. 200 crores was created by the Government of India in NABARD in 2014-15 for building of 2000 Farmer Producer Organizations (FPOs) in the country. The aim of the PRODUCE Fund is to promote new FPOs and support their initial financial requirements, to make them credit worthy, commercially vibrant and sustainable business enterprise of farmers. 
 
  Umbrella Programme for Natural Resource Management (UPNRM)
 
  • To examine the viability of the loan based participatory and community oriented Natural Resource Management (NRM) based business models with strong capacity building support. Screening of projects is based on the Guiding Principles that ensure the projects are pro-poor, environmentally sustainable, have community participation, practice good governance, and are integrated & needs-based
  • To encourage a shift in NRM financing from grant to loan and from a project approach to a programme approach in the NRM sector
  • To undertake Appraisal, Sanction, Disbursement, Monitoring, Default/NPA Management of projects of both Head Office (HO) and Regional Offices (RO) and repayment of HO projects
  • To manage reimbursement of claims under Loan and Grants from KfW and GIZ
  • To maintain project data and reimbursement of claims
  • To undertake Special Audit, Operational Audit and Statutory Audit
 
 
3. Broad Achievements of the Department
 
As on 31 March 2018:
  • Total number of projects sanctioned in 28 states – 712 projects
  • Number of tribal families benefitted – 521292 
  • Amount sanctioned from TDF– Rs.2120.71 crore
  • Amount disbursed – Rs.1461.99 crore
State-wise Project details:
 

S. No.

 Name of State

No. of Projects

No. of Families

Financial assistance committed (Rs. lakh)

1

 A & N

4

2034

383.02

2

Andhra Pradesh

53

37587

14999.44

3

Arunachal Pradesh

4

2406

1109.93

4

Assam

10

4650

1988.09

5

Bihar

20

13697

6085.37

6

Chhattisgarh

83

57216

23537.96

7

Gujarat

47

41850

16628.73

8

Himachal Pradesh

5

1715

873.33

9

Jammu & Kashmir

1

500

298.40

10

Jharkhand

41

28835

12470.89

11

Karnataka

28

23069

9287.52

12

Kerala

18

8297

3710.66

13

Madhya Pradesh

77

66627

26439.94

14

Maharashtra

50

47082

17909.75

15

Manipur

2

700

309.39

16

Meghalaya

8

3430

1365.40

17

Mizoram

7

2600

1162.72

18

Nagaland

10

4550

1881.48

19

Odisha

57

48119

19063.72

20

Rajasthan

57

48944

18398.43

21

Sikkim

5

2038

930.04

22

Tamil Nadu

14

9648

4399.93

23

Telangana

32

19832

8400.49

24

Tripura

2

600

252.23

25

Uttar Pradesh

20

12754

5777.15

26

Uttarakhand

6

3520

1314.53

27

West Bengal

49

28192

12768.64

28

Dadra Nagar Haveli

1

800

312.69

Bee keeping (multi state)

1

11.67

 

Total

712

521292

212071.53

 
Far Reaching : Cumulatively, 334 projects have been sanctioned under UPNRM covering 21 states and one union territory of India with total financial assistance of Rs.780.62 crores with loan of Rs. 738.55.00 crores and grants of Rs.42.07 crores. Cumulative disbursement stood at Rs.567.06 crores with loan of Rs.540.46 crores and grants of Rs.26.60 crores
Socially viable :  The total number of beneficiaries of the livelihood based projects under UPNRM are 1,58,869 out of which approximately 81% belong to Scheduled Caste (SC), Scheduled tribe (ST) and Other Backward Classes (OBC) and the remaining 19% are from the General category. In addition, around 1,50,000 beneficiaries are getting benefits from community drinking water projects.
Environmentally sustainable: 
 

Environmental Interventions

Value

SRI Cultivation (Ha)

74809.4

Drip Irrigation area (Ha)

3533.92

Biogas Units

13035

Vermicompost Production (Q)

63462

Plantation area (Ha)

9299.4

Number of trees planted

4787175

SSI area (Ha)

520.57

Number of Solar Lantern

13485

Number of Solar Pump sets

4

Organic Farming area (Ha)

8580.96

Area under Medicinal Plants (Ha)

485

 
Climate friendly and water efficient: 
 

Outcome

Value

Carbon Mitigated through Biogas Plant (tonnes of CO2)

50836.5 tonnes of CO2e/2m3 biogas digester/year

Fuelwood saved through Biogas (Q)

328482 year

Trees saved through Biogas Plant (No.)

32174.9 plants/year

Carbon sequestered through agroforestry (tonnes of CO2)

54414222.5 tCO2e/ha/year

Carbon mitigated through SRI (tonnes of CO2)

52366.58 Co2 e/ha/year

Carbon mitigated through Drip (tonnes of CO2)

5265.5408 tonnes of Co2 e/ha/year

Water saved through SRI (cubic meters)

411451700

Water saved through Drip (cubic meters)

19577916.8

Replacement of Chemical Fertilizer (Kgs)

317310

Kerosene replaced by Solar Lantern (lt/Year)

809100

 
 
Gender friendly and inclusive: 40% of the total beneficiaries (excluding beneficiaries of community drinking water projects) are women, while 60% are men.
Economically viable : Out of random sample 135 projects, 78 projects (58%) reported increase in income of beneficiaries ranging between 10-30%, whereas 22 projects (16%) showed above 50% increase in annual income of beneficiaries after implementation of UPNRM projects.
 
Farm Sector Promotion Fund (FSPF)
 
  • During the year 2017-18, 2229 new Farmers’ Clubs were promoted in the country.
  • Under DPR mode, 108 projects were sanctioned during the year 2017-18, involving grant commitment of Rs.8.89 crore. An amount of Rs.6.28 crore was disbursed as grant during the year towards implementation of various new and ongoing promotional programmes.
  • Under Capacity Building for Adoption of new Technology (CAT), 255 exposure visits were sanctioned to build the capacity of around 7757 farmers (including 553 women), in collaboration with select Research Institutes, KVKs and SAUs for adopting new/ innovative methods of farming. A grant assistance of Rs.1.47 crore was provided during the year under CAT initiative.
Watershed Development Fund (WDF)
 
NABARD entered into watershed development activities through KfW assisted Indo German Watershed Development Programme in the year 1992 in Maharashtra, wherein participatory approach of watershed development was launched in India on pilot basis for the first time. Subsequently, in order to demonstrate effectiveness of these interventions, Watershed Development Fund (WDF) was set up in NABARD in 1999-2000 with an initial corpus of Rs. 200 crore contributed by GoI and NABARD in equal proportion. The fund has been augmented over the years by way of interest differential earned under RIDF and interest accrued on the unutilized portion of the Fund. The total corpus of WDF stood at Rs. 1241.53 crore as on 31 March 2018.
As on 31st March 2018, cumulative sanction under all programmes stood at Rs. 1904 crore, out of which an amount of Rs. 1641 crore has been released so far covering an area of 20.35 lakh ha. Against 2741 watershed development projects sanctioned, 1331 projects were completed successfully. The programme wise details are given as under:
 
Programme No. of Projects No of projects completed Area (lakh ha) Amt sanctioned (Rs. lakh) Amt released (Rs. lakh)
Indo-German Watershed Development Programme (IGWDP-4 States) 326 300 335369 33847 32280
PM’s Package 764 673 882773 92651 80779
Watershed Development Fund (WDF) 814 271 722740 40210 37780
Integrated Watershed Development Programme (IWDP) - Bihar 79 77 80000 6000 5500
Kutch Drought Prone Programme (KDPP) - Gujarat 10 10 10000 350 330
WDF-Climate Proofing (CP) 97 0 NA* 4576 1221
KfW Soil Projects 123 0 NA* 6002 2572
Sustainable Development Plan (SDP) 464 0 NA* 4487 2559
Indo-German Watershed Development Programme –Climate Proofing (IGWDP-CP) 40 0 NA* 2255 1071
Springshed based watershed development programme 24 0 4118 22 9
Total 2741 1331 2035000 190400 164100
 
 
*These projects are being implemented in completed watersheds.
Currently, the following Watershed Development Programmes are being implemented by NABARD:
 
  • Participatory Watershed Development Programme under Watershed Development Fund (WDF)
  • Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW, Germany including WDF Climate Proofing
  • Climate Proofing in Indo-German Watershed Development Projects in Gujarat and Rajasthan
  • Spring shed based Watershed Development Projects
  • Sustainable development plan
  • Climate proofing of watersheds under WDF programme
 
1. Participatory Watershed Development Programme
 
Participatory watershed development programmes are implemented in two phases namely Capacity Building Phase (CBP) and Full Implementation Phase (FIP) in participatory mode, with the active involvement of Village Watershed Committee (VWC) and Project Facilitating Agency (PFA). The projects are being implemented in 18 states namely Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal.  As on 31st March 2018, 814 WDF projects have seen sanctioned with financial outlay of Rs. 402.10 crore, of which an amount of Rs. 377.80 has been disbursed. 
 
2. Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW, Germany
The soil restoration programme is being implemented by NABARD across five states with a support of €10 million from KfW, Germany between August 2016 and December 2019. The programme is being implemented in 123 completed watershed projects across 32 districts in the target states. The districts within the identified states were selected based on the Rainfed Area Priority Index (RAPI) developed by Central Research Institute for Dryland Agriculture (CRIDA). As on 31 March 2018, all the 123 projects were sanctioned with financial commitment of ₹58.53 crore, of which an amount of ₹ 24.75 crore was disbursed.
 
3. Climate Proofing in Indo-German Watershed Development Project
 
As part of sustainable development plan in the completed watershed projects implemented under IGWDP Gujarat and Rajasthan, NABARD is implementing climate change adaptation and livelihood programme in 40 completed watershed projects with financial assistance of Rs. 22.50 from KfW Germany out of the residual funds accrued over a period time due to exchange rate gains under regular IGWDP programmes of Rajasthan and Gujarat. As on 31st March 2018, an amount of Rs. 10.70 crore has been disbursed under the programme. 
 
4. Spring shed Development Programme in NER
 
 
In order to revive and rejuvenate springs, which are lifeline of the North Eastern Region (NER), and minimize the adverse impact of climate change on water availability both for human consumption and irrigation, especially during off-season, NABARD has launched an innovative and integrated spring shed based participatory watershed development programme in the NER including Sikkim, on a pilot basis with financial support under WDF since January 2017. As on 31 March 2018, 24 spring shed development projects were sanctioned in NER including Sikkim.
 
5. Sustainable Development Plan
 
Building on the success of the initial watershed programmes, NABARD has reoriented its approach towards sustainable development by making it much more holistic. Its approach includes technology transfer, agriculture extension, credit intensification, Integrated Pest Management (IPM), Integrated Nutrient Management (INM), promotion of FPOs, etc. Need based capacity building and leadership development of the watershed community, convergence of various centrally sponsored schemes and programmes forms part of the Sustainable Development Plan (SDP). As on 31 March 2018, 464 SDPs have been sanctioned. 
 
6. Climate-proofing projects of watersheds
 
To reduce vulnerability of climate change on the rural community and enhance agriculture productivity, production, livelihood and income of the farmers, NABARD is implementing a climate change adaptation initiatives under WDF in six states (Bihar, Himachal Pradesh, Jharkhand, Maharashtra, Madhya Pradesh and Tamil Nadu). As on 31 March 2018, 97 climate proofing projects were sanctioned with a commitment of ₹ 45.76 crore.
 
Web-based monitoring of watershed projects
 
NABARD had signed MoU with the National Remote Sensing Centre (NRSC), Hyderabad for monitoring of IGWDP watershed projects through Geospatial technologies on a pilot basis in Gujarat, Rajasthan and Andhra Pradesh and NABARD assisted watershed projects under WDF in Madhya Pradesh. A separate web portal and mobile app have been developed under this initiative for uploading the data by Project Facilitating Agencies (PFAs). The portal is facilitating NABARD in real time tracking of physical and financial progress and impact evaluation (change detection) of watershed projects (‘pre’ and ‘post’) through analysis of satellite images during the pre and post project implementation period. 
 
Under the system, physical and financial progress of implementation of the projects are tracked through generation and downloading of MIS reports on real time basis. It also facilitates geo-tagging and mapping assets created in the project areas through mobile app., and generation of MIS reports; district wise, state wise, NGO wise and activity wise. 
 
Tribal Development Fund (TDF)
 
•    Total number of projects sanctioned in 28 States / UT - 712
•    Number of tribal families benefitted – 521292
•    Amount sanctioned from TDF as on 31.03.2018 – `2120.70 crore
•    Amount disbursed as on 31.03.2018 – `1461.98 crore
 
Promotion and Development of Farmer Producer Organizations
 
Under PRODUCE Fund, a grant assistance of Rs. 197.74 crore has been sanctioned to 792 Producer Organization Promoting Institutions (POPIs) for promotion and nurturing of 2,154 FPOs. As on 31st July 2018, 2062 FPOs have been registered under different statutes/ legal forms and undertaking various agribusiness activities. The POPIs are given necessary trainings and handholding support through 19 Resource Support Agencies (RSAs). 
 
NABARD has developed a portal named ‘NABFPO.IN’ and digitized the FPO data including members’ profiles for use by the stakeholders. Broad details of FPOs are available on NABARD website (www.nabard.org).
 
Performance Measurement Tool has been developed for the assessment and monitoring of overall performance and facilitating designing of need based interventions & credit linkages for building robust organization. 
 
With a view to increasing participation of farmers and FPOs on the trading platform of Commodity Exchanges, NABARD and SEBI jointly organized National Seminar, for the key stakeholders to develop road map for linking the FPOs with Commodity Exchanges for improved price discovery and realization of enhanced price of the agricultural produce by the farmers.
 
NABARD has, with the support of BIRD, introduced a Short term Certificate course for CEOs of FPOs, which is being organized through 10 Anchor agencies in various states. As on date, 220 CEOs have completed this course.  
 
Considering the positive outcome of PRODUCE Fund, NABARD has introduced a scheme for promoting another 3000 FPOs by adopting low cost model and leveraging financial resources under its various promotional and developmental programmes/ schemes. As on 31 July 2018, 1929 FPOs have been promoted across 22 States under this initiative.
 
4. Ongoing projects and schemes
 
Farm Sector Promotion Fund (FSPF)
 
  • Farmers’ Club Programme
  • Capacity Building for Adoption of new Technology (CAT)
  • DPR Projects for productivity enhancement 
Watershed Development Fund (WDF)
 
  • Indo-German Watershed Development Programme (IGWDP) 
  • Prime Minister’s Package for Distressed Districts under WDF
  • Watershed Development Fund - Non Distressed Districts
  • Convergence of CSR funds in watershed projects
  • Sustainable Development in Watershed areas
  • Implementation of Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW & GIZ, Germany
  • Climate Change Adaptation Project in Akole & Sangamner Taluka of Ahmednagar District, Maharashtra
  • Climate Proofing of Watershed Projects in Rajasthan and Tamil Nadu
  • Web based monitoring of Watershed projects
5. Additional Information
 
NABARD has conducted impact and mid-term evaluation studies in completed watershed projects through different agencies. The evaluation reports submitted by the agencies are as under:
  • Impact Evaluation in Maharashtra by Institute of Rural Management (IRMA,) Anand
  • Mid Term evaluation of watersheds in Andhra Pradesh by Central Research Institute for Dryland Agriculture (CRIDA)
  • Impact evaluation of PMs Package Programme by Indian Council of Agricultural Research (ICAR), Bellary
In order to share the learnings and successful interventions with the other agencies in watershed projects, following publications have been brought out:  
  • Watershed Digest- January 2016 issues
  • Touching Lives - IGWDP-AP success stories
  • Farmer Producers’ Organizations –Empowering Small Farmers
 
Contact Information:
 
Dr. P. M. Ghole
Chief General Manager
5th floor, 'A' Wing
C-24, G Block
Bandra-Kurla Complex, Bandra (E)
Mumbai – 400 051
Tel: (91) 022-26539649