Rashtriya Krishi Vikas Yojana (RKVY

)

18.09.2007

Background
‡Declining investments in Agriculture ‡Declining share of agriculture in the GDP ‡Insufficient attention to the allied sectors ‡Continued high dependence of the rural people on the agriculture and allied sectors ‡Rapid growth in other sectors of the economy ‡Distress in Agriculture
18.09.2007

.NDC Resolution In its meeting held on 29.2007.2007 .09. -Key end goal ± achieve at least 4.1% growth in agriculture by the end of XI Plan 18. the NDC resolved to introduce An additional Central Assistance Scheme (now RKVY) that incentivizes states to increase public investment in Agriculture and allied sectors.5.

To ensure the preparation of Agriculture Plans for the districts and states 4. To provide flexibility and autonomy to the States in planning and executing programmes for agriculture 3.2007 .09. To address the agriculture and allied sectors in an integrated manner 18.Objectives of the RKVY 1. To maximize returns to the farmers 6. To incentivize the states that increase their investment in Agriculture and allied sectors 2. To achieve the goal of reducing the yield gaps in important crops 5.

09.Basic features of the RKVY 1. The preparation of the district and State Agriculture Plans is mandatory 18. 4. The list of allied sectors is as indicated by the Planning Commission 5. It is a State Plan scheme 2. The eligibility of a state for the RKVY is contingent upon the state maintaining or increasing the State Plan expenditure for Agrl. The base line expenditure is determined based on the average expenditure incurred by the State Government during the three years prior to the previous year.2007 . & Allied Sectors 3.

. SGSY. If the state lowers its investment in the subsequent years. then the balance resources for completing the projects already commenced would have to be committed by them. BRGF. 8. Pattern of funding is 100% Central Government Grant.2007 .09. 18. 7. and goes out of the RKVY basket. Encourages convergence with other programmes such as NREGS.Basic features. etc. Contd. 6.

Basic features . Contd. It will be an incentive scheme ± allocations are not automatic 10. 9.2007 .. Projects with definite time-lines are highly encouraged 18. It will give high levels of flexibility to the states ± including approvals at the level of the state governments 12.09. It will integrate agriculture and allied sectors comprehensively 11.

Dairy Development and Fisheries ‡ Agricultural Research and Education ‡ Agricultural Marketing ‡ Food storage and Warehousing ‡ Soil and Water Conservation ‡ Agricultural Financial Institutions ‡ Other Agriculture Programmes and Cooperation 18.2007 .List of allied sectors ‡ Crop Husbandry (including Horticulture) ‡ Animal Husbandry.09.

2007 .09.Three clear stages ‡ Determination of Eligibility ± to be done by the Planning Commission ‡ Determination of Allocation ± to be done by the Planning Commission ‡ Distribution of Funds ± to be done by the DAC 18.

Once a state becomes eligible..50% 18. ‡ % share of net un-irrigated area to the net un-irrigated area of the eligible states ± 20% ‡ The Projected growth rates in the GSDP.. & Allied Sectors .09. The allocation among the eligible states is dependant upon three parameters. to be attained by the end of XI Plan ± 30% ‡ Increase in the total Plan expenditure in Agrl.2007 .

The distribution of funds is in two streams Stream-1 : At least 75% of the allocated amount Stream-2: The balance amount 18.09..Once the allocation is determined by the Planning Commission.2007 .

Stream-1 ‡ Stream-1 funding is approved by a State Level Sanctioning Committee (SLSC) headed by the State Chief Secretary ‡ Stream-1 is oriented toward project based funding.2007 . with definite time-lines ‡ States will have to prepare DPRs for undertaking projects consistent with the SAPs and DAPs 18.09.

2007 .09.Stream-2 ‡ Existing Schemes that require strengthening can be covered under this ± especially such schemes that have a resource gap ‡ Not more than 25% allocated funds can be used for this stream ‡ Sanction procedure as in the case of other plan schemes ‡ Option to expend the entire resources under the Stream-1 exists 18.

Fisheries.2007 . etc. as a part of the State Plan Exercise. Minor Irrigation Projects. Dairying.Planning Process ‡ A District Agriculture Plan (DAP) for each district should be formulated ‡ Planning Commission has already circulated detailed guidelines ‡ The DAP should include AH. 18. ‡ A comprehensive State Agriculture Plan (SAP) should evolve out of the DAPs ‡ Finalized SAP should be placed before the DAC/Planning Commission. RD works.09.

2007 .09.DISTRICT AGRICULTURAL PLAN OTHER DEPTL ACTIVIT IES DAP RD AH. DAIRYING FISHERIES Areas of Convergence 18.

‡ Organic and Bio-fertilizers ‡ Innovative Schemes 18.2007 .09.Areas of Focus under the RKVY ‡ Integrated Development of Food crops. etc. Dairying & Fisheries ‡ Concept to Completion Projects that have definite timelines ‡ Support to Institutions that promote Agriculture and Horticulture. including coarse cereals. minor millets and pulses ‡ Agriculture Mechanization ‡ Soil Health and Productivity ‡ Development of Rainfed Farming Systems ‡ IPM ‡ Market Infrastructure ‡ Horticulture ‡ AH.

09.2007 .Operationalising the RKVY ‡ State Agriculture Department is the Nodal Department ‡ For fast-track implementation states may notify or create an Agency to implement the RKVY ‡ Funds may be released directly to the Agency to facilitate faster flow ‡ Administrative expenses of the Agency can be borne under the RKVY but within the overall ceiling of 1% of the total allocation under the RKVY 18.

Coordinate with various other line departments and implementing agencies 3.09. Furnishing the U. Establishing an effective I. 5. Manage funds received from various sources 4.T. based and web-enabled MIS within six months time 18.The Agency/Nodal Dept.Cs. will.. Be responsible for 1. Preparing the SAP and ensuring the preparation of the DAPs 2.2007 .

2007 . ‡ State Planning Department will pose it to the Planning Commission ‡ Meanwhile. the DPRs are to be kept ready for placing before the SLSC ‡ Once the approvals are received from the Planning Commission.09. ‡ Nodal Agency will finalize the SAP and submit it to the State Planning Department for integrating with the overall State Plans.Contd. SLSC is convened and Stream-1 proposals are placed before the SLSC 18.

‡ The SLSC Agenda is sent to the DAC at least 15 days prior to the meeting date. or the Nodal Department. as the case may be.09. not below a Joint Secretary will attend the SLSC meeting.Contd. ‡ Once the SLSC sanction is given the DAC will immediately release funds to the Implementing Agency. ‡ The DAC representative. 18.2007 .

and Planning Commission ‡ Quorum incomplete without at least one GoI representative ‡ To meet at least once a quarter ‡ States to constitute the Committee as soon as possible 18. Agriculture ± Member.2007 . DAHD. Agriculture ± Vice-Chairman ‡ Secretary.State Level Sanctioning Committee ‡ Chaired by the Chief Secretary ‡ APC/Principal Secretary.09.Secretary ‡ Representation from the DAC.

Ensure that no duplication of efforts takes place 5. Monitor and Review the progress of the sanctioned projects 3.2007 . Commission field studies to monitor and evaluate the projects 18. Ensure that the convergence takes place 4.Responsibilities of SLSC 1.1 of the RKVY 2. Sanction the projects under Stream.09.

5875 crore every year till the end of the XI Five year Plan ‡ Total investment of Rs.Funds ‡ Rs.2007 .25.1500 crore for the year 2007-2008 ‡ Rs.000 crore for the XI Five Year Plan 18.09.

2007 .09.Administrative Expenditure ‡ States are entitled to spend upto 1% of their allocation under the RKVY for administrative contingencies that may include ± ‡ Consultant Fees ‡ Operational expenses ‡ Expenses of the Implementing Agency including Staff Costs ‡ BUT NO VEHICLES CAN BE BOUGHT ‡ NO PERMANENT EMPLOYMENT CAN BE CREATED 18.

2007 ‡ ‡ ‡ ‡ ‡ . decide if you want to establish one. Give specific deadlines. Issue directions for the preparation of the DAPs and the SAP.09. Notify the SLSC Sensitize the state Planning Department about the scheme Commence DPR preparation for the Stream-1 projects Engage a Consultant where necessary 18. If you have no such Agency.What Should The States Do? ‡ IMMEDIATELY Decide if you want to notify the Implementing Agency.

2007 .Thank You 18.09.

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