Govt okays continuation of ‘Rashtriya Krishi Vikas Yojana’; gets Rs 15722 crore for 3 years

NewsBharati    02-Nov-2017
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New Delhi, November 2: The Cabinet Committee on Economic Affairs has approved the continuation of Rashtriya Krishi Vikas Yojana for three years. Its continuation will be as Rashtriya Krishi Vikas Yojana-Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR).

The Ministry of Agriculture said “The financial allocation of the scheme will be Rs. 15,722 crore with the objective of making farming as a remunerative economic activity through strengthening the farmer's effort, risk mitigation and promoting agri­business entrepreneurship.

 

The objective is to make farming a remunerative economic activity through strengthening farmers' efforts, risk mitigation and promoting agri-­business entrepreneurship. The scheme will incentivize states in enhancing more allocation to agriculture and allied sectors.

RKVY-RAFTAAR funds would be provided to the States as 60:40 grants between Centre and States (90:10 for North Eastern States and Himalayan States) through the following streams:

(a) Regular RKVY-RAFTAAR (Infrastructure & Assets and Production Growth) with 70%of annual outlay to be allocated to states as grants based for the following activities:

i. Infrastructure and assets with 50% of regular RKVY-RAFTAAR outlay.

ii. Value addition linked production projects with 30% of regular RKVY-RAFTAAR outlay.

iii. Flexi-funds with 20% of regular RKVY-RAFTAAR outlay. States can use this for supporting any projects as per the local needs.

(b) RKVY-RAFTAAR special sub-schemes of National priorities - 20% of annual outlay; and

(c) Innovation and agri-entrepreneur development through creating end-to-end solution, skill development and financial support for setting up the agri-enterprise -10% of annual outlay including 2% of administrative costs.

The scheme will incentivize States in enhancing more allocation to Agriculture and Allied Sectors. This will also strengthen farmer’s efforts through creation of agriculture infrastructure that help in supply of quality inputs, market facilities etc. This will further promote agri-entrepreneurship and support business models that maximize returns to farmers.