The Union Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved the continuation of centrally sponsored scheme- Rashtriya Krishi Vikas Yojana (RKVY) as Rashtriya Krishi Vikas Yojana- Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR) for a period of three years, from 2017-18 to 2019-20.
The government would be allocating Rs 15,722 Cr for the implementation of the plan. The main objective behind the development is to make farming a remunerative economic activity by strengthening the farmer's effort, risk mitigation and promoting agri¬business entrepreneurship.
The funds set aside for the plan would be provided to the states as 60:40 grants between Centre and States and 90:10 in the case of Himalayan and North Eastern states through the following streams:
1. Regular RKVY-RAFTAAR (Infrastructure & Assets and Production Growth) with 70 per cent of annual outlay will be allocated to states as grants based for the following activities:
- Infrastructure and assets with 50 per cent of regular RKVY-RAFTAAR outlay.
- Value addition linked production projects with 30 per cent of regular RKVY-RAFTAAR outlay.
- Flexi-funds with 20 per cent of regular RKVY-RAFTAAR outlay. States can use this for supporting any projects as per the local needs.
2. RKVY-RAFTAAR special sub-schemes of National priorities – 20 per cent of annual outlay
3. Innovation and agri-entrepreneur development through creating end-to-end solution, skill development and financial support for setting up the agri-enterprise -10 per cent of annual outlay including 2 per cent of administrative costs.
Overall, by continuing the scheme, the government aims to incentivize the states in enhancing more allocation to Agriculture and Allied Sectors. The move is expected to strengthen farmer’s efforts through creation of agriculture infrastructure that help in supply of quality inputs and market facilities, which in turn will further promote agri-entrepreneurship and support business models that will maximise returns to farmers.
• Rashtriya Krishi Vikas Yojana (RKVY) is a continuing scheme under implementation from the 11th Five Year Plan.
• The scheme provides considerable flexibility and autonomy to states in planning and executing programmes for incentivizing investment in agriculture and allied sectors.
• States initiate the process of decentralized planning for agriculture and allied sectors through preparation of District Agriculture Plans (DAPs) and State Agriculture Plan (SAP) based on agro-climatic conditions, availability of appropriate technology and natural resources to ensure accommodation of local needs, cropping pattern and priorities.
• During the 11th and 12th Plan, the states have taken over 13,000 projects in agriculture and allied sector through State Agriculture Department as Nodal Implementing Agency.
• Most states registered higher value of output from agriculture and allied activities in the post-RKVY period.
• Hence, continuation of the scheme is expected to keep up the momentum of agriculture and allied sector growth.
Who: Union Cabinet
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