Rashtriya Krishi Vikas Yojana (RKVY) Scheme
The lack of investment, especially public investment in the agricultural sector, has slowed India's growth of agricultural and allied sectors. To resolve this issue, the National Development Council (NDC) has come up with a strategy to rejuvenate agriculture with an Additional Central Assistance Scheme, i.e. Rashtriya Krishi Vikas Yojana.
Want to know more about this government-backed scheme? Stay tuned!
What Is Rashtriya Krishi Vikas Yojana Scheme?
Initiated in 2007, the Rashtriya Vikas Yojana (RKVY) is an umbrella scheme that ensures overall agricultural and allied services development. This scheme encourages States to increase public investment in agricultural and allied services. With 100% central assistance, RKVY scheme was implemented as Additional Central Assistance to State Plan scheme.
Certain alterations came in the funding since 2015-16. Now it works following a 60:40 ratio.
From 1st November 2017, the Rashtriya Vikas Yojana was rebranded as Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RKVY – RAFTAAR scheme).
This scheme brings decentralized planning in the agricultural sector as it initiates State Agricultural Plan (SAP) and District Agricultural Planning (DAP). The Central Government planned the Rashtriya Vikas Yojana based on agro-climatic conditions that ensure the availability of advanced technology and natural resources and provide accommodation for the local needs.
Features and Objectives of Rashtriya Krishi Vikas Yojana
The salient features of the Rashtriya Krishi Vikas Yojana are,
- The Rashtriya Krishi Vikas Yojana is a State Plan scheme.
- The baseline expenses are calculated based on the average expenditure of the state government during the three years before the previous year.
- This scheme runs with 100% central assistance.
- States can get optimal flexibility through this scheme.
- The Rashtriya Krishi Vikas Yojana integrates Agricultural and allied sectors cohesively.
- Since it is an incentive programme, the allocations are automatic.
- This scheme encourages merging with other programs such as NREGS.
- This scheme mandates the preparation of District and State Agricultural plans.
- The Rashtriya Krishi Vikas Yojana encourages projects which have a definite timeline.
- States which have committed to invest in agriculture by abiding by the norms of RKVY-RAFTAAR yojana must continue to do so even if they roll out from the RKVY basket.
The main objectives of RKVY yojana are discussed below -
- Provide flexibility and autonomy to States so that they can plan and execute agricultural programmes.
- Encourage State Government public investment in agricultural and allied sectors by offering them incentives.
- Make sure the agricultural plans are strategized based on agro-climatic conditions, natural resources and technologies.
- Track whether the agricultural plans in the States focus on local requirements, crops and priorities.
- Increase returns to farmers.
- Lower yield gaps in important crops in the State.
- Bring changes in the production in agricultural and allied sectors.
- Assure the preparation of Agricultural Plans for the States and District.
What Allied Sectors Are Covered Under the Rashtriya Krishi Vikas Yojana?
Here is a list of all the sectors covered under the Rashtriya Krishi Vikas Yojana.
- Crop Husbandry
- Animal Husbandry
- Dairy Development
- Agricultural Research and Education
- Soil and Water Conservation
- Agricultural Financial Institutions
- Agricultural Marketing
- Food storage and Warehousing
- Other Agriculture Programmes and Cooperation
Eligibility Criteria for Rashtriya Krishi Vikas Yojana
States will be eligible to avail the Rashtriya Krishi Yojana in the given circumstances -
- All States and Union Territories are eligible.
- State Agricultural Plans (SAPs) and District Agricultural Plans (DAPs) have been prepared.
- States spend at least a proportion for agriculture and related sectors. Further, they must give special attention to marginalized farmers.
Once states receive the funds allotted by the Central Government, they can transfer this amount directly to farmers or communities involved in agricultural activities.
Documents Required for Rashtriya Krishi Vikas Yojana
Following is a list of important documents States have to submit to receive funding under RKVY project.
- Quarterly basis performance report (physical and financial achievements) and outcomes within the given time frame in a specified format.
- 100% Utilization Certificates (UCs) for the funds allotted upto the previous financial year.
Who Can Apply for Rashtriya Krishi Vikas Yojana?
Individuals of India engaged in agricultural and related sectors can apply for the PM Krishi Vikas Yojana.
Under the Rashtriya Krishi Vikas Yojana, farmers will receive 20-50% subsidy in 2021-22 for cultivating fruits and traditional farming. Farmers can apply online to get this grant. The respective department will perform the selection. Through DBT (Direct Benefit Transfer scheme), grants will reach selected farmers.
What Are the Benefits of Rashtriya Krishi Vikas Yojana?
- Agriprenurship Orientation- The scheme provides an orientation of two months where one get can a stipend of ₹10,000. Further, this scheme offers mentorship on different financial, technical and other issues.
- Funding to Agripreneurs- Rashtriya Kisan Vikas Yojana provides funding up to ₹5 lakh (which is a 90% grant and 10% contribution to the incubatee). As stated earlier, states and the funding under RKVY- RAFTAAR in a 60:40 ratio, whereas the hilly areas will get funding in a 90:10 ratio. On the other hand, Union Territories will receive 100% funding.
- Seed-stage Funding of R-ABI Incubatees- Funding of ₹25 lakh is available (in form of an 85% grant and 15% contribution from the incubatee). All incubatees of R-ABI will receive this funding. Incubatees, i.e. startups, must register themselves as a legal entity in India with two months of residency at R-ABI.
Under the Rashtriya Krishi Vikas Yojana, states will get funding into two instalments (50% each), and the final instalments will be available once they provide a 100% Utilization Certificate.
With systematic funding from the Central Government, India's agricultural and allied sectors can ensure commendable growth.