Rashtriya Krishi Vikas Yojana (RKVY)

Rashtriya Krishi Vikas Yojana (RKVY) – Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RAFTAAR) aims at making farming a remunerative economic activity by strengthening the farmers‟ efforts, risk mitigation and promoting agri-business entrepreneurship.

What is Rashtriya Krishi Vikas Yojana?

Rashtriya Krishi Vikas Yojana (RKVY) is a centrally sponsored scheme that was launched in 2007 by the Government of India. The scheme aims to provide financial support to states and union territories for the development of agriculture and allied sectors.

Background of the Rashtriya Krishi Vikas Yojana Scheme

Here are the key points about the background of the Rashtriya Krishi Vikas Yojana (RKVY) scheme:

The RKVY scheme was launched in 2007 by the Government of India.
The scheme was launched in response to the National Development Council (NDC) resolution of 2005. This called for a comprehensive and integrated approach to agricultural development.
The scheme was also intended to address the challenges faced by the agricultural sector. This includes low productivity, declining farm incomes, and increasing input costs.
The RKVY scheme is implemented through a three-tier structure:
- The Ministry of Agriculture at the central level,
- The state governments at the state level, and
- The district-level planning committees at the district level.

Basic Features

To incentivise the states so as to increase public investment in Agriculture and allied sectors.
To provide flexibility and autonomy to states in the process of planning and executing Agriculture and allied sector schemes.
To ensure the preparation of agriculture plans for the districts and the states based on agro-climatic conditions, availability of technology and natural resources.
To ensure that the local needs/crops/priorities are better reflected in the agricultural plans of the states.
To achieve the goal of reducing the yield gaps in important crops, through focussed interventions.
To maximize returns to the farmers in Agriculture and allied sectors.
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

North East State: 90% from the central government and 10% from the State government
Union Territory (UT): 100% from the central government.
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)

A State Level Project Screening Committee (SLPSC) will be constituted by each state for screening RKVY-RAFTAAR project proposals.
It is headed by the Agriculture Production Commissioner or any other officer nominated by Chief Secretary.

State Level Sanctioning Committee (SLSC)

A State Level Sanctioning Committee (SLSC) is vested with the authority to sanction specific projects recommended by SLPSC under each stream of RKVY-RAFTAAR.
One representative is required from the government of India for a committee meeting.
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

Context/Background: This section should provide a general description of the scheme/project being posed for appraisal.
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.
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.
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.
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.
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.
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.
Time Frame: This section should indicate the proposed zero date for commencement and also provide a PERT/CPM chart, wherever relevant.
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.
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.
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.
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.
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:

Crop Husbandry (including Horticulture).
Animal Husbandry and Fisheries, Dairy Development.
Agricultural Research and Education.
Forestry and Wildlife.
Plantation and Agricultural Marketing.
Food Storage and Warehousing.
Soil and Water Conservation.
Agricultural Financial Institutions.
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.

Pattern of Funding under the RKVY Scheme

The ratio of funding between the central government and the state governments under the scheme is 60:40, and the ratio would be 90:10 in the case of northeastern states and Himalayan states. For the Union territories, the central government finances the entire amount.

The Central Government would mark its distribution of funds under the program to each eligible state on the following parameters and weights:

Process of Allocation of the funds under the RKVY to the States
Sl. No.	Parameter	Weight
1	The percentage share of net un-irrigated area in a state to the net unirrigated area of the eligible states.	20%
2	The Gross State Domestic Product (GSDP) that the States must reach by the end of the 11th Plan will be calculated using the expected growth rates to a base year (2005–2006) GSDP for the agriculture sector and allied sectors.	30%
3	An increase in the total Planned expenditures in the agricultural and allied sectors from the previous year.	50%

Application Process

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.

FAQs

Is there any maximum age limit for the applicant?

There is no maximum age limit. however, the applicant should not be a minor.

What are the Areas of focus under the RKVY ?

The components for the RKVY could cover the following: Integrated development of major food crops such as wheat, paddy, coarse cereals, minor millets, pulses, oilseeds Agriculture mechanization Activities are related to enhancement of soil health. Development of rainfed farming systems in and outside watershed areas, as also Integrated development of watershed areas, wastelands, river valleys. Support to State seed farms Integrated Pest Management schemes Encouraging non-farm activities Strengthening of Market Infrastructure and marketing development