No.01(01Y/PFC-1/2022 Ministry of Finance Department of Expenditure Publle Finance Central-l Division North Block, New De Dated the 08" april, 2022 UENCE MEMORANDUM Subject: Appraisal of Schemes ~ Centrally Sponsored Sehemes (CSSs) and Central Sector Selremes (CSs) tu be eumtinued over the XVdh Finance Commission Cycle (approved for continuation by the Cabinet till 30.09.2022 vr such shorter period as may have been approved by the EFC) ~ Guidelines. Attention is drawn to Department of Expenditure’s (Dols) O.M. of even number dated 01.02.2022 (eapy enclosed) containing list of CSSs and CSs approved for continuation by the Cabinet vide its decision dated 19.01.2022 and comened vide Cabinet Secretariat's vommunicauion WNo.2/CM/2022(1) dated 28.01.2022. AS regards the CSSs_and_CSs ined_in_the ibis RS hil decided that they may be coatined ti 30 09.2022 or such shorter peclod as may have beeh appraved by the Expenditure Finance Committee (EFC). It had further decided that fresh appraisal shall be carried out on “Zero-Based Budget Review” with a view to identify whether these schemes need t0 be merged or closed or allowed to continue with such modification in their design architecture and financial outlays as may be needed to optimize the use of public funds and to produce optimal benefit to the public 2. _ In pursuance to the direetions of the Cabinct, for the listed schemes, EFC Memos submitted hy the Ministries (reference 10 Mi continuation aver the XVth Finance Cammiscinn cycle inolnding the minutes of the EFC ‘meetings have been examined. Based on the examination, for the schemes which require re- appraisal in terms of the ubove referred Cabinet decision, other schemes which have similar interventions/further action points have been identified. A lis wontaining such CS9s and CSs hhac been propared ond the § need to present theie LPC Meiivs fi feslt appraisal by the FFC have heen categorized as “Lead Ministries”. Other Ministries which implement similar schemes and action points, in respect of some schemes, have also been idemuified. (Annex) siries includes Departments as well) for 3. For the apprabal and approval of the schemes contained in Dok O.M. of even number dated 01,02,2022, tie following guidelines shall apply: 4) The lead Ministries shall circulate their EFC Memos to other Ministries as stated in ‘Annes, DoE and reuls. EPC sneuiys shall be prepared and circulated after completion of the action points. ITI Aayog for theit cou 1h) While examining the FEC memos, the recipients of the EFC Memoe chall, inter alin identify schemes similar in design and intended benefits being implemented by other Ministsies and offer their comments In terms of whether such schemes (including the Page 2 of 14 ischeme being presented for appraisal by the EFC) should be rationalised through mergericlosure or what modifications must be carried out so as to ensure that each scheme uses optimum resources without duplication of efforts and intended benefits ‘Suggestion may be given to ensure that overlaps are avoided. ©) The Lead Ministry shall examine the comments received and offer their counter comments, If the Lead Ministry proposes to accept the recommended modifications in the scheme being implemented. the FC Memo should be accordingly modified. )_ In terms of the mandate of the Cabinet for conducting Iresh appraisal on “Zero-tased Budget Review”, EFC shall take within its ambit and scope, not only the selieme being presented by the Lead Ministry but also, as may be considered appropriate, and afier considering views of the implementing Ministry, such other scheme’s which are identified ac having qverlaps and cope for rationalisation in terme of closine and ‘merger and make suitable recommendations. ©) Based on the appraisal of the scheme presented by the Lead Ministry, EFC shall recommend financial outlays including Outputs-Outcomes for the balance period of the Finanee Commission cycle. This may, if deemed necessary, may also extend to ‘other seheme!s in order to ensure that duplication in resource allocation is avoided. §) EFC, while appra the scheme/s shall consider the following:~ i, Closure of scheme/s ii, Continuation of the scheme/s with only financial outlay provided for its committed liability iii, Merger of a scheme with another scheme. iv. Reduction in the scope and coverage of scheme/s or its components. ¥v. Reduction in the financial outlays of scheme’ or its components. vi Modification in tho timelines for implementation of the schemele under consideration. Vil. Merger of Programme Monit ing Units/ Administrative Units, 4. In view of ahove. all ministries are requested to circulate the draft FRO ta all stakeholders and follow the timelines (in reference to issue of this U.M.) for appraisal of schemes as per schedule given below: Time Schedule Dwecks S T week Circulation of draft BFC to all D weeks stakeholders seeking comments on the proposal (ifveyuired meeting cant be leldiscussion) Preparation of final EFC proposal its T weeks citeulation as indicated in Annex. | 5 This snes with the approwal of Finance Secretary & Secretary (Fypenditure) a «win Encl: - As above. ae ZX (Hema Jaiswal) Director (PFC-LI) Ph.23095614 Al the Secretaries to the Government of India (listed in Annex) Al Financial Advisers Ministries/Departments (listed in Annex) Prime Minister's Office Cabinet Seoretariat NITI Aayog, Internal Circulation Doks website Page 30116Amex ‘Schemes to be appraised by EFC having scope for further rationalization across Mimistries ~ Anmex (0 DoE’s OM dated 01.02.2022. Lead No | Ministry List af List of Central | Centrally ‘Sector Schemes Action Points EEC Memo to be circulated to te Ministries Sustainable and Inclusive Development of Natural Rubher Sector (Rubber Board) 3 | Commerce Home Affairs | Geioec Bom) Integrated Colfee Development Project (Col Board) Tea Development and Promotion Scheme (Tea Board) Integrated Scheme for Export Promotion and Quality Improvement in Spices and Research & Development of Cardamom | MoARFW 0 examine taking over operations of thoze bodies and schemes being implemented by them in order to bring synergies | with agricultural research aud eatensivn faviliticn, 1. DAGFW 2. DARE, 3. NITI Aayog 4. DUE Police Infrastructure: Building Projects of CAPs, CPOs ‘and Delhi Police MIA to any outa comprehensive rationalization exercise of 4 this Scheme to ensure that only priority projects, 1.NITI Aayog 2. Dok. 3. MoHUA Page 4 ot 14 wekeeping in view resource avuilability/sharing of infrastructure amongst CAPEs. wherever possible, are sanctioned Home Affairs Safety of Women | under implementation in MHA, MHA to ensure that there adequate convergence with otier Schemes of Goveinment, instuding the Smart City Projects of MoHUA and women safety schemes implemented by Ministry of Women and Child Development. 1. MoHUA, 2, MoWUD 3. NITI Aayog 4. DoE. Home Afar Bower Arca Development Programme from Ist ‘April, 2021 w Bist March, 2026. MITA must ensure that development works are tnken up in convergence with flagship schemes of key ministries implemented in the same arca, including | special focus scheme for tional distriots. BADP may be used for critical gap filling in these areas. Disiriet Magistrates of ese border districts may be sensitized on this approach and the Scheme design must inchide District Level committee fer BADP including District ollivers of Education, Health, W&CD, Drinking Water, Power, Drinking — Water and Sanitation, et 1, DoRD. 2. DoHFW 3. DoSEL 4. MoWCD 5. DoDWS 6 NITI Aayog 7. Dok 8. Any other Ministry having scheme creating physical Infrastructure in the border areas Textiles National Handicrafts, Development Programme (NHDP) MoT Stall ensure sonvergence with different schemes of various ministries targeting artisans like USTAAD Scheme of Ministry of Minority Affairs and SPURTI scheme of MoMSME. Page S of 14 1. MoMSME_ 2. MoMA 2 DPI 4. NITI Aayog 5. DoE,1, MoMSME | National ‘MOT shall ensure 2. MOMA Geen couvergenve ainungst the 9 | Textiles | Development prliren sepporting wfins [DENT Progiamne tere within the Ministry an 4. NITI Aayog, [Crees across the Ministry | 5. DoE MOMSME sill ensure | 1.MoT (converge ‘convergence with nncelmerger schemes of with National ministries targeting artisans | Handicrafts USTAAD Scheme of] Development | Ministry of Minority AMfaiy | SehemedNatt peeneme ie Ei and NHDP —(Handloom | — onal for, Regeneration’ andHandicrafts) schemes of | Handloom 10 | MSME | of — ‘Traditional Mat Dasliegend Industries Soheme) (SFURTI) 3, MoMA 4. DPILT >. NIL Aayog. 6. DoE DFS may examine the | 1, MoMSME merger ofall the guarantee | funds opemting under she | > Ministry of ‘Avienecisiso af umbrella of NCGTC or Financia | tH comps of retention of separate funds | 5, pogie Me coetce, Credit Guarantee sit rn Fiat dee Bice ceca and | 4. MUTA cant accordingly submit a} ¢ Seiad . NITL Aayog 6. DoE ees MoMA may examine scope | 1. DoSIE ‘ivcatonal fir rationalisation in| yg 2 | Mlmorty | Empowerment convergence with different | 2» MoT Affairs | Cems soln stemes 60855, pewD PMEES) eS ee) oe MoTA, DoSIE andDEPwD | 4. DoSEL Page 6 ot 14 aSNITI Aayog 6. DUE Water Resuurecs, RD&GR Flood Management & Border Ara Programme ‘The rationalization of this scheme has been envisaged to part finance it from the fund to be allocated (for reducing the risk of urhan flooding in seven most populous clues inthe country) fom NDMP amounting to Rs.2500 crore during the period from 2021-22 19 2023-20 as recommended by XVth Finance Commission. LNITI Aeyog 2. MHA, 3. MoHUA 4. FCD Division of DoE Rural Developm ent | ‘Management Support to Rural Development Programmes and Strengthening of District Planning Process Scheme TRC has recommended continuation till 31st March 2022. AJNIFM to undertake evaluation study on the efficacy of the scheme. Fucther continuation of the scheme depends on the recommendations of AINIFM.Dio Rural Development intends to seek interim extension for the scheme till 3151, May, 22 or in order to make changes, if any based on the Lvaluation Report. 1 AINIFM 2. NITI Aayog 3. DoE, 13 DoNER Schemes of North ast Council EFC recommended its tation for 1 year vuly. Ministry to decide inter se allocation. Ministry has been asked w reduve dhe committed liabilities first. Page 7 ot 14 1 MoWeD 2. RoR 3. NITI Aayog| Renewal of schemes beyond | 4. DoE 31.03.2022 would requis | review and rationalisation. SDP fx BTC 16 | PeNER (new) i. Under NESIDS, large umber of projects are ‘duplication of tne inluaulves under the ongoing schemes of other Ministries such as i ICDS, MGINREGA etc. (North Fast With regards to | special NERSDS, there are already 17 | DoNER | Infrastructure various schemes _ being Development implemented hy various Sctene Ministries / Departments for constructions of roads in NER a a ili, Ministry may close on down the definet projects 18 | DONER | opment ‘under Non Lapsable Central meee Pool of Resources. acboe (NLCPR). iv. Special Development Special Package (SDP) for 19 | DoNER | Development 'sodolana Jerntoral Paalegee Council (BTC) (new) may he made a sub.scheme of Special evelopment { Packages. EFC had recommended that this scheme willbe continued only fi une yea , ie, 2021.22 and will be eee ferleved. ry C5-TEW | 1 maar as integpaea istry for Coopetation peration! (Moc, 2. MoDeNER 20 | Agricutur Scheme = on a Agricultural A New Scheme in plase of | 3, NITI Aayog, BFarmers! | Cooperation ISAC 1s being formulated ene by the Ministy of | 4 DoE Cooperation (MoC) for | 2022-23 onwards. MoC may ensure that the redesigned and frach si scheme has no overlap with Pape 8 of 14schemes implemented by | MoC and schemes of other Ministries! Department a Fenilizers | Urea Subsidy The Scheme has been approved by EFC fur one period will he decided after due rationalisation and review of extant orders. 1. DA&EW 2. NITI Aayog DoE | ‘d_ policy for distribution of sugar through Public Distribution System (PDS) | for Antyodaya | Anna Yojana “(AAY) families perp in view of the recommendation of the Expenditure Management Committee and Rangarajan committee that the sugar subsidy should be ‘completely phased out by the Cental goverment, EFC had recommended that the scheme may continue only ull 3ist Maren, 2023.In view of the decision of the Cabinet, DPD may need fresh appraisal for continuation beyond 30.08.2022. 1. NITI Aayog 2. DoE Agricultur e &Farmers! Welfare Keishionnat Yojana (Components ) Seope for further rationalizations deliberated during FEC meeting: 1. Mission on Organic Value Development for Fast Region (MOVCDNER) should. be merged with Paramparagat Krishi Vikas Yojana in view Of the overlap in objective. The scheme has overlappin components with other schemes like Formation of FPOs, PM Kisany Sampada Yojana and National Rural Livelihood Mission. A convergence architecture rage yor 1s 1. NITI Aayog. 2. Dok, 3. DONER, 4. DARE, 5. DoD, 6. DOLR 7.MolPIneeds 10 be built in by the Department ‘Components of setting up (of bio-Tertitzers tabs oF Soi Health and fertility sub- scheme to be merged with the schemes aumed tor promotion of Organic Farming, ln, Agriculture Census, Statistics and Eeonor scheme is not a beneficiary oomiented scheme and. the components related to administrative nature of work should be classified as nnonsehennes and ebanges in Budget Heads should accordingly be made. iv. SubeMission on “Agricultural Extension to be merged with Rashiuiya Krishi Vikas Yojana. Also, the administrative components of the scheme need to be moved to Establishment expenditure, ¥. Mission for Integrated Development of Horticulture (MIDH)_ has overlaps with the scheme Formation of FPOs, Pramparagat Krishi Vikas Yojana, National — Bee Keeping and Honey | Mission. ‘Ihe scheme needs tw be tavionatized by «hing out the overlapping components. Also. — the expantiure on National Horticulture Board and Coconut Board to be moved Establishment Expendiure Vi. Sub-Mission on Seed and Plauing Ma {SMSP) is not a beneficiary Page 10 of 14 oe] oriented scheme and the | components related to. administrative nature ot swuck stu be‘clasifel as nonsschemes and changes in Budget Heads should | sivccningly be inate, vu. National Food and atti Selly Mo (NFNSM) has overlaps with | | other schemes or | | components suchas mechanization, micro Imgation, soil and plant protection —amayenent, post harvest management ete. and therefore it need to be restructured, Overlapping components such as oil management may Ue shifted wW Suit Health, water management ‘component may be merged with PMKSY-PDMC, plant protection management may be merged with Plant Protection and quarantine and component on gistnbution of farm emeily may be merged Sub-Mission on Agricultural Mechanisation. z . Integrated Scheme on Agricultural Marketing (ISAM) should be CSS and the component of catalyzing private investment in setting up of agribusiness projects to be merged with REVY. ix. Component of seed production and distributio creation of soed hubs of National Mission on Edible Oil (NMEO) ~ Oilseeds have overlaps with Sub Mission _on Seed and Page 11 of 16 a WePlanting — Material, The irrigation management has overlaps with PM. Krishi Sinha ‘Yojana. Agrioulur e 24 gerarmers Welfare 25 | Coal Exploration seal and of Rashtriya Krishi Yojanal Various Components) Scope for further rationalizati i during EFC meeting: i. With the inception of Agriculture Infrastructure Fund (AIF), scope of this scheme needs to be reduced. Every aspect of the scheme has overlap with either the sehiciies uf DASFW wt other departments cuch ae DAHD and DoF. Rainfed development scheme overlaps with National Food and Nutrition Security Mission (NENSM) and thus needs 10 be rationalized by taking out the overlapping components, Also, Water harvesting and management component may be merged with Integrated Watershed Development Programme of DoLR. ili, Paramparagat Krishi Vikas Yojana lias overlaps with the scheme entitled Formation of 10000 EPOs and convergenve mechanism needs to be elaborated and the outlay needs tu be restricted. LNITI Aayog, 5 . Earlier approval of EFC stands cuperseded by the decision of the Cabinet dated 19” January 2022. ji, Reference is invited 1 CCEA’s approval on the adoption of methodology for auction of coal and 1. Ministry of Power 2. Railways, 3. NITI Aayog 4. Dok rage 22 or 16Tignite mines/blocks for sale of coal / lignite on revenue sharing basis and tenure of coking coal linkage on 20th May. 2020, This would enable“ competition in exploration of coal and lignite with the participation ‘of more private players and would allow discovery of prices through market. Therefine, it is Felt that Government spending in this sector is not needed ili. Ministry of Coal may collect credible data regarding funure projections of demand of coal kee} in mind environmental concerns, climate change, technological advancement and the emerging renewable energy sector. iv. Ministry may engage an independent agency look into the need for promotional/revional exploration. v.NITI Aayog may workout the demand forecast. Poge 13 ur as“Following Schemes were not part of the Cabinet Approval. [lowever, these schemes have scope of further being iccued vide thie OM, rationalization and needs to be appraived by the EFC in terme of the guidal Concerned Ministries Nepartments are requested to do the needful Tist oF Tist oF FEC Moma ta he S Lead Central Centrally Minkay. (Seane Sponsorea Seton Points circulated to the = sees Schemes Ministries Sapp Thee Ba weed Tor tigen Scheme (PSS). Telia Gareeinand se Price provecting interest of both soncumers and farmers loo Going by the expert [eae analysis, our own | I. NITI Aayog, | Scheme experience and international Agriculture | PPPS) pilot experiences, and by the | 2 DoE. 1, | Aare | orate majority views of the 5 ya ge ‘nel Fanmet | cirement a panicipants, itis clear that a | * Welfare single agency under a single | 4, DyC Department would de able | to play a better role in price | §. DFPD YeESS) nina stabilization. PM.AASHA 6 MoFPI Therefore, deci and Market | regarding’ single Ministry winner and single agency who will Selrenne (MIS) implement the combined | * PY scheme need 0 he taken Price (Ref :Meeting held on >, | Consumer | Stabilisation 1S July, 2021to consider * | affairs [Fund (PSE) Rationalization of Schemes d for Price Intervention in | Oilseeds. Pulses and _| Horticultural Crops). Poge 28 uf 38F.No. 01(01)PFC-”2022 Ministry of Finance Department of Expenditure PFC-I Division North Block, New Leni Dated: 1° February, 2022 Office Memorandum Subject: Approval of schemes - Centrally Spurisvred Schemes (CSSs) and Central Sector Schemes (CSs) to be continued over the 15" Finance Commission cycle. This is with reference to approval of Centrally Sponsored Schemes (CSSs) and Central Sector Schemes (CSs) to be continued over the 15” Finance Commission cycle. In this regard, the undersigned is directed to convey that the Cabinet vide its decision dated 19-01-2022 conveyed vide Cabinet Secretarial No.2/CM/2022(i) dated 28" January, 2022 has approved the following: i) With regard to schemes listed in Annexure, irrespective of the appraisal and recommendations of Expenditure Finance Committee (FFC) and in supersession of any approval of any component authority made fur their continuation over the 15" Finance Commission cycle, the schemes may be continued only up to 30” September, 2022 or such shorter period as may have been approved by the EFC. Continuation of these schemes will De subject 10 adherence of the recommendations of the EFC. Fresh appraisal shall be carried out on an inter departmental basis by the EFC by then. This fresh appraisal shall be on the basis of ‘Zero Rase Budget’ review with a view to identify whether these schemes need to be merged or closed oF allowed to be continued with such modification in their design, architecture and financial outlays as may be needed to optimize the use of public fund and produce optimal benefits to the public. ii) During the period till 30" September, 2022 the schemes may continue to operate, disburse tunds and sanction new commitments even if some such commilments may require expenditure beyond that date. Iowever, the pace of expenditure including such commitment shall be reasonable for the time period and broadly proportionate to the overall outlay recommended by the EFC(approximately 1/10" of the outlay envisaged over the 5 years). 2. Guidelines for flesh appraisal will be issued separately. In the meanwhile, the Ministries/Departmonts may have a fresh look at these schemes in terms of broad guidelines given in DoE OM No. 42(02)/PF-I/2014 dated 8 December, 2020 keeping in wew the objectives of turther rationalization of these schemes through merger, clusuie and restructuring, The findings of the evaluation reports for these schemes may alco be kept in view for such review. The appraisal process will also take into account the ‘outcomes achieved by these schemes, the innerent strength of a Ministry/Depat trent tuimplement them including a decision on which Ministry should implement which scheme, 3. Any Cabinet Note or proposals by Ministries/ Departments for approval of the Finance Minister related to these schemes may be considered as disposed of 4 This issues with the approval of Finance Secretary & Secretary (Expenditure), nck: As Above. Al Secretaries to the Government of India All Financial Advisers Ministries) Departments ‘Cabinet Secretariat Prime Minister's Office NITI Aayog Katiway Board Internal Circulation i— (Or. Shivalii M, Gnounan) Director (PFC-1) Tel: 23093109 e-mail: shivalll.chounan@nic.inSchomes continued up to 30-09-2022 or earliar Annexure ‘S. | Ministry! | List of Central Sector List of Centrally | Amount | No Deptt. Schemes: Sponsored Recommend Schomos od by EFC for XVth FC Cycle (Fin | Crore) | [4 [Commerce | Sustainable and Inclusive 1A08 | | Development of Natural if | Rubber Sector | ae] [integrated Coffee | 7.199 | | Development Project | oar Tea Development and 968 | PromotionScneme | Sal |e 3 | Integrated Scheme for 578 | Export Promotion and | Quality Improvement in | | | Spices and Research & | | | Development of Cardamom | 5 | Home | Police Infrastructure | 21,087 Affairs Building Projects of CAPFs, | CPOs and Delhi Police [6 | Home Safety of Women under 4.574 | Affairs | implementation in MIA 7 |Home Border Arca | 4,535 Affairs Development | Programme from 1st | | April, 2021 to 31st March,2026. National Handicrafts 908 Development Programme | (NHUP) National Handioom 950 | Development Programme | (NHDP)10 | MSME Scheme for Fund for | 2,000 Regeneration of Traditional | Industries (SFURTI ) | 11) | Financial | Augmentation of the corpus 17,000 | Services of Credit Guarantee Fund for Micto Units | ~42-| Minority Pradhan Mantri Educational 2.294 Affaire Empowerment Scheme | (PMFES) [13 | water 7 "| Flond Management [4,500 — Resuuiues, | & Border Area | RD&GR Programme. 74) Rural Management Support to. 176 Developme | Rural Development nt | Programmes and | Strengthening of District | Planning Process Scheme = ~ | Sel 2,800 Schemes of North East 4 ee Couneil 10 “ari ae DoNER SDP for BTC (now) Ww | North East Special | | DoNER: Infrastructure Development | | ‘Scheme Pe epee es OO gS ee ee iets North East Road Sector | | ss Development Scheme 19 ‘Special Development JDONER — | packagoe | | 20 | Agriculture | &Farmers’ Welfare: 21 | Fertilizers | Agneultural Cooperation | Urea Subsidy 60,46722 | DFPD Roviced policy for 3a distribution of sugar through Public Distribution System (PDS) for Antyodaya Anna ‘Yojana (AAY) tamilies | 23 | Agriculture Krishionnati Yojana | 73,092 &Farmers’ (Components ) | Welfare | 24 Agriculture Rashtriya Krishi RFarmers’ ‘Vikas Yojana Welfare (Components: Organic farming, Sail Health & | fertility, Rainfed area development, Agriculture | Mechanisatoin (including Promotion | | of Agricultural Mechanisation and Management of Crop Residue (CRIN), Village haats & GRAAMS, | Crop Diversification Programme and Per Drop More Crop) Cual Exploration of coal and 2,143 Lignite