Pan India DBT Rollout in Fertilizers

DBT in Fertilizers
implementation in States

Presentation on 16th 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.

Department of Fertilizers Slide2

 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.

Department of Fertilizers Slide 3

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.

Department of Fertilizers Slide 4

 Subsidy for Urea manufactured by NFL

Plant Subsidized Subsidy Market Price

Price (MRP component of Urea
Rs /50 Kg ( Rs /50 Kg ( Rs /50 Kg
Bag) Bag) Bag)
Nangal 268 728 984
Panipat 268 659 916
Bathinda 268 572 829
Vijaipur-I 268 450 707
Vijaipur-II 268 407 663

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.

Department of Fertilizers Slide5

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.

Department of Fertilizers Slide 6

 DBT Process Flow : Linkage with Soil Health & land Records

1. Farmer is identified on basis of Aadhaar authentication, Voter ID

or KCC.
2. Using Aadhaar, Land and Soil Health details are fetched.
3. Recommendation on type and quantity of fertilizers is
generated. (Farmer however, takes final decision.)
4. System indicates amount to be paid by the farmer and subsidy to be
paid by Government on his behalf.
5. Farmer pays only subsidized MRP.
6. Post purchase, a SMS is sent to farmer.

Department of Fertilizers Slide7

 DBT Process Flow
Retailer login with Aadhaar Bio
Buyers visits Retailer Auth or Mobile OTP Auth

NO
Demographic records are Buyer shares Voter ID or KCC and
Buyer shares his Aadhaar is advised to enroll for Aadhaar
captured using e-KYC

UIDAI YES

NO
Buyer shares his Mobile Buyer shares mobile number of
any family member

YES

Demographic details are

entered

Recommendations from Sale transaction details are Sale Completed

Land records and Soil entered
Health card (SHC)
Slide 8

Department of Fertilizers
Back
 Key Stakeholders
1
1. State Governments 5
Dept of State
Fertilizers Governments
(Agriculture Department)

2. District Administration
2
Stakeholders
3. Fertilizer Companies (LFS)
District
NIC Administration
4. Technology Partner (NIC)
4
5. Owner (DoF) Fertilizer
Companies

The success of pilot will depend on close coordination among all stakeholders,
robust monitoring and evaluation mechanism, and setting up of a professional team.
Department of Fertilizers Slide9
 List of Pilot Districts
S. No District State Aadhaar Saturation (%) No. of Retailers
1 Krishna Andhra Pradesh 99.11 973
2 West Godavari Andhra Pradesh 101.38 1100
3 Una Himachal Pradesh 111.37 230
4 Hoshangabad Madhya Pradesh 104.29 246
5 Pali Rajasthan 99.59 343
6 Rangareddy Telangana 117.66 205
7 Kishanganj Bihar 92.82 349
8 Narmada Gujarat 91.07 95
9 Karnal Haryana 106.87 772
10 Kurukshetra Haryana 106.68 550
11 Tumkur Karnataka 102.02 533
12 Thrissur Kerala 103.70 178
13 Nasik Maharashtra 98.44 1346
14 Raigarh Maharashtra 97.89 200
15 Malda West Bengal 87.07 800
16 South 24 Parganas West Bengal 94.29 1225
17 Begusarai* Bihar 80.28 694
18 Dhanbad* Jharkhand 94.93 26
19 Gorakhpur* Uttar Pradesh 81.93 1488
Total 11353
* Three additional districts were included in Pilot phase on 27th January, 2017.
Department of Fertilizers Slide10
Existing Payment Process

1. Companies become eligible for payment as soon as quantity is

received in the Districts.

2. 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.

3. 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.

Department of Fertilizers Slide11

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 .

Department of Fertilizers
Slide12
Re-engineered Payment Process (contd..)

Department of Fertilizers
Slide13
 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.

Buyer Sale
Information Information Information
captured by
Retailer
 Buyer Name-M
 Father’s name-M
 Mobile Number-M
 Type of Fertilizers-M
 Aadhaar Number-M/O
 Voter/KCC-M/O  Quantity of Fertilizers-
 Address-O M
 Land details- O
 MRP of Fertilizers-M
 Soil Health Card –O
 Name of the Plant-M
 Name of the company-M

M- Mandatory
O- Optional
Department of Fertilizers Slide15
 Present Status: DBT Rollout in pilot districts
Sr. District Retailers / PoS PoS Received / Master DBT Status
No Required Deployed Training
1 Krishna (AP) 973 973/973 Completed Live (1st Oct 16)
2 West Godavari (AP) 1100 1100/1100 Completed Live (1st Oct 16)
3 Una (HP) 230 230/221 Completed Live (1st Jan 17)
4 Hoshangabad (MP) 246 217/214 Completed Live (1st Jan 17)
5 Pali (Rajasthan) 343 343/270 Completed Live (1st Jan 17)
6 Rangareddy (Telangana) 205 205/184 Completed Live (1st Jan 17)
7 Kishanganj (Bihar) 349 344/308 Completed Live (1st Feb 17)
8 Karnal (HR) 772 772/590 Completed Live (1st Feb 17)
9 Kurukshetra (HR) 550 520/332 Completed Live (1st Feb 17)
10 Nasik (Maharashtra) 1346 1200/1200 Completed Live (1st Feb 17)
11 Raigarh (Maharashtra) 200 200/200 Completed Live (1st Feb 17)
12 Tumkur (Karnataka) 533 533/355 Completed Dry Run (26th Nov 16)
13 Narmada, (Gujarat) 95 95/61 Completed PoS under Deployment.
14 Thrissur, (Kerala) 178 200/125 Completed Replaced over Kannur.
15 Malda, (WB) 800 Not Implemented as State Govt. has not shown any
16 South 24Parganas,WB) 1225 interest.
17 Begusarai, (Bihar) 694
Three additional districts were included in Pilot on 27th
18 Dhanbad, (Jharkhand) 26
January, 2017. Sensitization process has been initiated.
19 Gorakhpur, (UP) 1488
Total 11353 6422/5928
Department of Fertilizers Slide16
Transaction Summary of Pilot District
S. District Go Live Total Retailers Go Live Total Total Qty
No. Name Date Retailers Using Opening Transacti sold
POS Stock (In on
MT)
1 West 1st Oct 2016 1099 1090 228709.99 344347 124219.6
Godavari
2 Krishna 1st Oct 2016 974 945 160207.43 178103 64418.94
3 Una 1st Jan 2017 256 208 6724.575 6130 1485.72
4 Hoshangabad 1st Jan 2017 222 221 140361.2 6206 27936.1
5 Pali 1st Jan 2017 328 268 10634.36 7568 2274.825
6 Rangareddi 1st Jan 2017 197 193 91754.216 15885 3868.375

7 Kishanganj 1st Feb 2017 432 304 6366.25 21975 4782.476

8 Kurukshetra 1st Feb 2017 582 459 59836.89 4202 3109.375

9 Karnal 1st Feb 2017 866 628 56208.28 15224 14142.73

10 Nashik 1st Feb 2017 2213 1242 87265.79 143031 24569.81
11 Raigarh 1st Feb 2017 312 198 3621.53 2976 891.25
TOTAL 7481 5756 851690.511 745647 271699.201

Department of Fertilizers Slide 17

Sale Transaction Details of Pilot Districts

* The status is for 6 pilot districts live as on 31 st Jan. 2017

Department of Fertilizers Slide 18
Stakeholders Responsibility
Key
Responsibilities
Stakeholders
Department of  Act as Nodal agency to oversee, coordinate, monitor and facilitate adequate support in
Fertiliser implementation of DBT in all pilot districts .
District  To coordinate, monitor and facilitate adequate support in implementation of DBT in
Collector their district.
 Constitute “DBT working group” comprising of all stakeholders at District Level.
District / Block  To ensure the available stock update is correctly done at retailer end.
Agricultural
 Ensure correction of any wrong stock entry reported via mfms portal.
officers (BAO)
Lead Fertilizer  Reconcile all stock at District warehouse/ wholesaler/ Retailer/ Plant wise/ Product
Companies wise and update the same on mfms website.
 Ensure that all fertilizer retailers/ wholesalers have the mfms credentials.
 Readiness for e-bill generation using e-sign.
 Ensure from Go-Live date, all movement of fertilizers will be captured on real-time
basis and updated on mfms portal.
DIOs’(NIC) /  Ensure the District Agricultural Officers are issued with credentials for mfms.nic.in.
District
 Coordinate alongwith the nodal officer of each district/Lead Fertilizer Companies
Consultants
operating in that state for :
 Installation of Point of Sale (POS) Machines at retailer’s outlet.
 Capturing dealer and other representatives ‘Aadhaar’ data on POS Machine.
 Diligently conduct Dry run of DBT Pilot followed by full scale implementation.
 Capacity Building and Grievance Addressal of DBT users in the districts.
Department of Fertilizers Slide19
Role of State Agriculture Department
i. State DBT Co-ordination & Monitoring Committee consisting of Principal

Secretary Agriculture , Principal Secretary Revenue, LFS and State coordinator

need to be constituted.

ii. Close monitoring of POS Deployment.

iii. Licenses to only those retailers who agree to sell through POS device and updating

of retailers list.

iv. Sensitization of Farmers : POS sales, SHC recommendation.

v. Expedite issue of Soil Health Card : out of 13.99 Corers, only 5.12 Crores SHC

distributed (35.87%) ( SHC scheme website status on 14/2/17).

vii. Updating of SHC data base and data sharing between SHC server and iFMS server.

Department of Fertilizers
Slide20
Role of State Governments & District Collectors

State & District Collectors have key Role in DBT Implementation.

Preparatory Activities:

i. To ensure 100% Aadhaar penetration in DBT districts.

ii.  Seeding of Aadhaar number in soil health card data base.

iii. Seeding of Aadhaar in Land Record Database.

iv. Prepare District Soil profiles where Aadhaar penetration is not
100%.

Contd./
Department of Fertilizers
Slide21
Role of State Governments & District Collectors (Contd.)
Role of States During Implementation:

i. Training of retailers – District-wise training need to be organized.

ii. To ensure that dealer’s list uploaded on iFMS is latest/correct.

iii. Stock position at company warehouse and retailers need to be

updated correctly.

iv.  Setting up grievance redressal mechanism.

 

Department of Fertilizers
Slide22
Role of District / Block Agricultural Officer

 Constitution of “DBT working group” comprising of all stakeholders at District

Level.

 Block Agricultural Officers to have login id and password for mfms.nic.in.

 Dealers & retailers (mFMS ID details) should be mapped /assigned to Block

Agricultural Officers to ensure better monitoring .

 While conducting physical verification of stock :

• Check if stock tallies with stock shown in mFMS against that wholesaler ID
• Ensure that stock value entered through POS devices are correct.
• If any retailer reports change in opening stock ,District/ Block Agricultural
Officers can update the correct opening stock once(Stock correction will be one-
time activity.).
• Ensure Physical stock = mFMS stock = Stock on ePoS.

Department of Fertilizers
Contd./
Slide23
Role of District / Block Agricultural Officer(Contd.)
 Block Agricultural officer may physically need to verify the closing stock of all
the retailers assigned to him prior to “GO LIVE” day in excel sheet / paper.
Closing stock will be taken as per company, plant, product and retailer wise.

 Template below may be used :

Sl. Retailer Retailer Company Plant Product Quantity

No. Name ID

Department of Fertilizers
Slide24
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.

Department of Fertilizers Slide25

Responsibilities of NIC

i. Software development of iFMS, DBT (PoS Devices)

ii.  Troubleshooting and Helpdesk Support

iii. Proper Coordination with device vendors to sort out hardware/

software issues. 

iv. software application or MIS on Key Performance Indicators.

Department of Fertilizers
Slide26
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.

Department of Fertilizers Slide27

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.

Department of Fertilizers Slide28

PAN India Deployment of PoS Devices

 PoS deployment has to be completed by 31st May, 2017.

 No Subsidies will be available/paid on the fertilizer sold
without PoS after 31st May, 2017.

Department of Fertilizers Slide29

The Way Forward: Rollout of PoS Devices across all States
Steps Involved
i. Procurement of devices.
i. Total requirement in 35 States/UTs :175619
a) In 19 States/UTs where PSUs are LFS :81080
b) In 14 States/UTs where Pvt. Companies are LFS :94539
ii. Preparation of devices (Installation of software).
iii. Training of Master for all states. (For Pilot states conducted & for
other Trainers states training scheduled.)
iv. District wise training of retailers.
v. Deployment of devices.

Department of Fertilizers
Slide30
 State wise PoS Requirement
S. No. State/UT LFS Retailers S No. State/UT LFS Retailers

1 Bihar 24050 20 Uttar Pradesh 30191

2 Punjab 8873 21 Jharkhand IFFCO 2239
3 Madhya Pradesh 8222 22 Uttrakhand 918
4 J&K NFL 2792
23 West Bengal 13348
5 Himachal Pradesh 2175
24 Andhra Pradesh 7981
6 Chhattisgarh 2136 NFCL
25 Odisha 3089
7 Delhi 173
8 Maharashtra RCF 19366 26 Telangana 5374
9 Gujarat 10037 27 Tamil Nadu 9463
10 Dadra & Nagar Haveli GNVFC 2 28 Puducherry 43
29 Andaman &
SPIC
11 Daman & Diu 1 2
Nicobar Islands
12 Kerala FACT 2503
13 Assam 569 30 Rajasthan Chambal 8966
14 Tripura 123
31 Karnataka MCFL 7740
15 Manipur 37
16 Mizoram 9 32 Haryana
BVFCL KRIBHCO 5126
17 Meghalaya 6
18 Nagaland 4 33 Goa ZIL 59
19 Arunachal Pradesh 2
TOTAL PoS Required  175619

Department of Fertilizers Slide 31

 Deployment of PoS devices – in states (19) covered by PSUs
S. LFS State/UT Retailers Total Status
No.
1 Bihar 24050 •LOI has been issued on 24th Nov 16 for 81080 PoS
2 Punjab 8873 device to following 3 vendors [M/s Oasys (36486), M/s
3 Madhya Pradesh 8222 Linkwell (28378), & M/s Analogics (16216)].
4 J&K 2792 •NFL has issued order for 8180 PoS on 15th Dec.’2016.
5 NFL Himachal Pradesh 2175 48421 •1300 PoS will
6 Chhattisgarh 2136 be received for Bihar by 20th Feb. ‘17.
7 Delhi 173 •NFL has received 1563 PoS machines by 20th Jan.’17,
2016. (752 for Punjab, 386 for M.P, 227 for Himachal
Pradesh, 68 J&K and 130 for Chhattisgarh).
8 RCF Maharashtra 19366 •RCF has issued order for 4559 PoS and devices will be
19366
received by 5th March'17.
9 Gujarat 10037 Procurement File is put up for approval to
10 GNVFC Dadra & Nagar Haveli 2 10040 management since very log time for their share of
11 Daman & Diu 1 2500.
12 FACT Kerala 2503 Purchase order will be placed for 2800 PoS on 17th
2503
Feb.'17 through NFL.
13 Assam 569 •150 PoS will be received by 20th Feb.’17.
14 Tripura 123
15 Manipur 37
16 BVFCL Mizoram 9 750
17 Meghalaya 6
18 Nagaland 4
19 Arunachal Pradesh
Department of Fertilizers
2 Slide 32
    TOTAL 81080  
Deployment of PoS devices – in states covered by Private Companies
S.
LFS State/UT Retailers Total Expected Delivery Date
No.
1 Uttar Pradesh 30191 •PO will be placed for 16500 on tomorrow.
2 Jharkhand 2239 •Oasys is L1 and they are in communication
IFFCO 33348
3 918 with L2 and L3 as Oasys did not show up
Uttrakhand with their devices till date .
4 West Bengal 13348
5 Andhra Pradesh 7981 • PO will be placed on 20th Feb’17.
NFCL 29792 • Expecting 2000 devices on 25th Feb'17
6 Odisha 3089
• Total Requirement is around 40000.
7 Telangana 5374
8 Tamil Nadu 9463 •They are waiting for State Govt approval for
9 Puducherry 43 PoS Procurement and deployment.
SPIC 9508
10 Andaman & 2
Nicobar Islands
11 Chambal Rajasthan 8966 8966 P.O. placed on 9th Feb’17 for their share of
2300.
Expected Date of delivery within 15 days by
Vision-tek.
12 MCFL Karnataka 7740 7740 • P.O will be placed by 20th Feb’17.
•Expected delivery by End of March’17
13 KRIBHCO Haryana 5655 5655  1360 deployed for Karnal & Kurukshetra
 P.O placed for 527 on 25th Jan’17.
Expected to be received by 20th Feb’17
14 ZIL Goa 59 59 • P.O will be placed by 20th Feb’17.
Department of Fertilizers Slide 33
    TOTAL   94539  
Immediate Action required by States
 Hold review meeting with LFS to review the status of procurement of
PoS devices for the state.

 Cost of Procurement is to be shared by all companies proportional to

their Market share.

 Companies can buy directly the devices proportional to their share or

can provide funds to LFS

 In case any company is neither procuring nor providing funds, LFS can
procure the devices on their behalf and request DoF to recover the cost
from the Subsidy Bills.

* LFS – is the lead agency to coordinate procurement of devices.

Department of Fertilizers Slide34

Training of master Trainers/Retailers

i. Training of master Trainers - done for All states.

ii. Training of retailers will have to be held district-wise.

iii. States have key role in training Master trainers.

iv. Full support of District Collectors, District Agriculture Officer ,

DIOs and State Government required for training and

deployment of devices.

Department of Fertilizers
Slide35
 Thank You

Department of Fertilizers Slide 36