Rashtriya Krishi Vikas Yojana

Rashtriya Krishi Vikas Yojana

The Rashtriya Krishi Vikas Yojana (RKVY) is an initiative by the Government of India primarily aimed at promoting holistic development in the agriculture sector and related areas. The central idea behind this scheme is to incentivize states to increase their investment in agriculture and allied sectors.

Launched in 2007, the RKVY seeks to achieve its objectives by providing states and territories with financial autonomy to plan and execute their strategies for agricultural and associated sector growth. It encourages the adoption of innovative practices, promotes resource conservation, and prioritizes the development of appropriate infrastructure to facilitate farming and related activities.

The program operates through a detailed process of planning, sanctioning, and monitoring. Its impact has been felt significantly in terms of increased productivity, improved farmer income, and promotion of sustainable and environmentally-friendly farming practices. However, like any large-scale initiative, RKVY also faces challenges such as issues in resource allocation and coordination between various administrative levels. Despite these hurdles, with the incorporation of technology and a continued emphasis on sustainable practices, the future of RKVY looks promising.

Basic Features

  1. To incentivise the states so as to increase public investment in Agriculture and allied sectors.
  2. To provide flexibility and autonomy to states in the process of planning and executing Agriculture and allied sector schemes.
  3. To ensure the preparation of agriculture plans for the districts and the states based on agro-climatic conditions, availability of technology and natural resources.
  4. To ensure that the local needs/crops/priorities are better reflected in the agricultural plans of the states.
  5. To achieve the goal of reducing the yield gaps in important crops, through focussed interventions.
  6. To maximize returns to the farmers in Agriculture and allied sectors.
  7. To bring about quantifiable changes in the production and productivity of various components of Agriculture and allied sectors by addressing them in a holistic manner

Funding Pattern

  1. North East State: 90% from the central government and 10% from the State government
  2. Union Territory (UT): 100% from the central government.
  3. All other states: 60% from the central government and 40% from the State government.

Project Screening and Project Approval committees

  • State Level Project Screening Committee (SLPSC)
  1. A State Level Project Screening Committee (SLPSC) will be constituted by each state for screening RKVY-RAFTAAR project proposals.
  2. It is headed by the Agriculture Production Commissioner or any other officer nominated by Chief Secretary.
  • State Level Sanctioning Committee (SLSC)
  1. A State Level Sanctioning Committee (SLSC) is vested with the authority to sanction specific projects recommended by SLPSC under each stream of RKVY-RAFTAAR.
  2. One representative is required from the government of India for a committee meeting.
  3. It is headed by the Chief Secretary of the State.
RKVY-RAFTAAR is a project-based scheme. Thus, Detailed Project Reports (DPRs) shall have to be prepared in the format provided to the
states for each of the RKVY projects incorporating all essential details i.e. feasibility studies, competencies of the implementing agencies, anticipated benefits (outputs/outcomes) that will flow to the farmers/ State, definite timelines for implementation etc. In case of large projects costing more than Rs. 25 crore, DPRs should be subjected to third-party “techno-financial evaluation‟ and circulated well in advance to concerned Central Ministries for obtaining comments/observations

DPR Format

  1. Context/Background: This section should provide a general description of the scheme/project being posed for appraisal.
  2. Problems to be addressed: This section should describe the problem to be addressed through the project/scheme at the local/regional/national level. Evidence regarding the nature and magnitude of the problems should be presented, supported by baseline data/survey/reports etc.
  3. Aims and Objectives: This section should indicate the development objectives proposed to be achieved, ranked in order of importance. The outputs/deliverables expected for each development objective should be spelt out clearly.
  4. Strategy: This section should present an analysis of alternative strategies available to achieve the development objectives. Reasons for selecting the proposed strategy should be brought out. Basis for prioritization of locations should be indicated (wherever relevant). This section should also provide a description of the ongoing initiatives, and the manner in which duplication can be avoided and synergy created with the proposed project.
  5. Target Beneficiaries: There should be a clear identification of target beneficiaries. Stakeholder analysis should be undertaken, including consultation with stakeholders at the time of scheme/project formulation. Impact of the project on weaker sections of society, positive or negative, should be assessed and remedial steps suggested in case of any adverse impact.
  6. Management: Responsibilities of different agencies for project management of scheme implementation should be elaborated. The organization structure at various levels, human resource requirements, as well as monitoring arrangements should be clearly spelt out.
  7. Finance: This section should focus on the cost estimates, budget for the scheme/project, means of financing and phasing of expenditure. Options for cost sharing and cost recovery (user charges) should be explored. Issues relating to project sustainability, including stakeholder commitment, operation-maintenance of assets after project completion and other related issues should also be addressed in this section.
  8. Time Frame: This section should indicate the proposed zero date for commencement and also provide a PERT/CPM chart, wherever relevant.
  9. Cost Benefit Analysis: Financial and economic cost-benefit analysis of the project should be undertaken wherever such returns are quantifiable. Such an analysis should generally be possible for infrastructure projects, but may not always be feasible for public goods and social sector projects.
  10. Risk Analysis: This section should focus on the identification and assessment of risks in implementation and how these are proposed to be mitigated. Risk analysis could include legal/contractual risks, environmental risks, revenue risks, project management risks, regulatory risks, etc.
  11. Outcomes: Criteria to assess success and whether or not the development objectives have been achieved should be spelt out in measurable terms. Baseline data should be available against which the success of the project will be assessed at the end of the project (impact assessment). The success criterion for scheme deliverables/outcomes should also be specified in measurable terms to assess achievement against proximate goals.
  12. Evaluation: Evaluation arrangements for the project, whether concurrent, mid-term or post-project should be clearly spelt out. It may be noted that the continuation of schemes from one period to another will not be permissible without a third-party evaluation.
  13. And, a self-contained Executive Summary should be placed at the beginning of the document.

Benefits

  • To strengthen the farmers efforts through the creation of required pre and post-harvest agri-infrastructure that increases access to quality inputs, storage, market facilities etc. and enables farmers to make informed choices.
  • To provide autonomy, and flexibility to States to plan and execute schemes as per local/ farmers needs.
  • To promote value chain addition linked production models that will help farmers increase their income as well as encourage production/productivity.
  • To mitigate the risk of farmers with a focus on additional income generation activities – like integrated farming, mushroom cultivation, beekeeping, aromatic plant cultivation, floriculture etc.
  • To empower youth through skill development, innovation and agri-entrepreneurship-based agribusiness models that attract them to agriculture.
 

Eligibility

The RKVY will be a State Plan Scheme. The eligibility for assistance under the scheme would depend upon the amount provided in State Plan Budgets for Agriculture and allied sectors, over and above the baseline percentage expenditure incurred by the State Governments on Agriculture and allied sectors.
 
The list of allied sectors as indicated by the Planning Commission will be the basis for determining the sectoral expenditure:
  1. Crop Husbandry (including Horticulture).
  2. Animal Husbandry and Fisheries, Dairy Development.
  3. Agricultural Research and Education.
  4. Forestry and Wildlife.
  5. Plantation and Agricultural Marketing.
  6. Food Storage and Warehousing.
  7. Soil and Water Conservation.
  8. Agricultural Financial Institutions.
  9. other Agricultural Programmes and Cooperation.
 
Each state will ensure that the baseline share of agriculture in its total State Plan expenditure (excluding the assistance under the RKVY) is at least maintained, and upon its doing so, it will be able to access the RKVY funds. The baseline would be a moving average and the average of the previous three years will be taken into account for determining the eligibility under the RKVY, after excluding the funds already received.
 
 

Exclusions

List Of Projects/Activities That Should Not Be Funded Under RKVY-RAFTAAR
  1. Creation/topping up of any kind of revolving fund / corpus fund.
  2. Expenditure towards maintenance of assets or any such recurring expenses.
  3. Expenses towards Salary, Transport, Travelling Allowances (TA), Daily Allowances (DA) of permanent /semi-permanent employees. However, expenses towards hiring of manpower on outsourcing/contractual basis can be met within 2% allocation earmarked for administrative expenses with approval of SLSC.
  4. Expenses towards POL (Petrol, Oil, Lubricants).
  5. Financing State‟s share and/or topping up subsidy level in respect with other Central/State Schemes
  6. Foreign Visits/Tours including study tours of farmers abroad;
  7. Purchase of vehicles;
  8. Financing any kind of debt waiver, interest subvention, payment of insurance premium, compensation to farmers and calamity relief expenditure; additional bonus over & above Minimum Support Price (MSP).
  9. Creating/Strengthening assets in Private Sector/NGO‟s beyond what is permissible under any schemes/programmes of Govt. of India

Application Process

Offline
Proposals can be either submitted directly to States or to SFAC at the national level. In either case, the NLA or State Government will examine the project proposal from the viewpoint of suitability to the priorities and objectives of the State and the general framework of RKVY-RAFTAAR. If found suitable, the proposal will be forwarded to the SLSC chaired by Chief Secretary for consideration. Based on the approval of the SLSC, the project will be rolled out after an agreement has been signed between the State Government and Project Promoter.
 
Official Site: rkvy.nic.in
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