RASHTRIYA KRISHI VIKAS YOJANA
- March 9, 2009
- Posted by: INSIGHTS
- Category: AGRICULTURE
RASHTRIYA KRISHI VIKAS YOJANA (RKVY)
• Declining investments in Agriculture
• Declining share of agriculture in the GDP
• Insufficient attention to the allied sectors
• Continued high dependence of the rural people on the agriculture and allied sectors
• Rapid growth in other sectors of the economy
• Distress in Agriculture
• NDC (National Development Council)Resolution
In its meeting held on 29.5.2007, the NDC resolved to introduce
An additional Central Assistance Scheme (now RKVY) that incentivizes states to increase public investment in Agriculture and allied sectors.
– Key end goal – achieve at least 4.1% growth in agriculture by the end of XI Plan
• Objectives of the RKVY
- To incentivize the states that increase their investment in Agriculture and allied sectors
- To provide flexibility and autonomy to the States in planning and executing programmes for agriculture
- To ensure the preparation of Agriculture Plans for the districts and states
- To achieve the goal of reducing the yield gaps in important crops
- To maximize returns to the farmers
- To address the agriculture and allied sectors in an integrated manner
• Basic features of the RKVY
- It is a State Plan scheme
- The eligibility of a state for the RKVY is contingent upon the state maintaining or increasing the State Plan expenditure for Agriculture. & Allied Sectors
- The base line expenditure is determined based on the average expenditure incurred by the State Government during the three years prior to the previous year.
- The list of allied sectors is as indicated by the Planning Commission
- The preparation of the district and State Agriculture Plans is mandatory
6. Encourages convergence with other programmes such as NREGS, SGSY, BRGF, etc.
7. Pattern of funding is 100% Central Government Grant.
8. If the state lowers its investment in the subsequent years, and goes out of the RKVY basket, then the balance resources for completing the projects already commenced would have to be committed by them.
9. It will be an incentive scheme – allocations are not automatic
10. It will integrate agriculture and allied sectors comprehensively
11. It will give high levels of flexibility to the states – including approvals at the level of the state governments
12. Projects with definite time-lines are highly encouraged
• List of allied sectors
• Crop Husbandry (including Horticulture)
• Animal Husbandry, Dairy Development and Fisheries
• Agricultural Research and Education
• Agricultural Marketing
• Food storage and Warehousing
• Soil and Water Conservation
• Agricultural Financial Institutions
• Other Agriculture Programmes and Cooperation
• Three clear stages
• Determination of Eligibility – to be done by the Planning Commission
• Determination of Allocation – to be done by the Planning Commission
• Distribution of Funds – to be done by the DAC
• Once a state becomes eligible..
The allocation among the eligible states is dependent upon three parameters
• % share of net un-irrigated area to the net un-irrigated area of the eligible states – 20%
• The Projected growth rates in the GSDP, to be attained by the end of XI Plan – 30%
• Increase in the total Plan expenditure in Agrl. & Allied Sectors – 50%
• Once the allocation is determined by the Planning Commission…..
The distribution of funds is in two streams
Stream-1: At least 75% of the allocated amount and Stream 2: The balance amount
• Stream-1 funding is approved by a State Level Sanctioning Committee (SLSC) headed by the State Chief Secretary
• Stream-1 is oriented toward project based funding, with definite time-lines
• States will have to prepare DPRs for undertaking projects consistent with the SAPs and DAPs
• Existing Schemes that require strengthening can be covered under this – especially such schemes that have a resource gap
• Not more than 25% allocated funds can be used for this stream
• Sanction procedure as in the case of other plan schemes
• Option to expend the entire resources under the Stream-1 exists
• Planning Process
• A District Agriculture Plan (DAP) for each district should be formulated
• Planning Commission has already circulated detailed guidelines
• The DAP should include AH, Dairying, Fisheries, Minor Irrigation Projects, RD works, etc.
• A comprehensive State Agriculture Plan (SAP) should evolve out of the DAPs
• Finalized SAP should be placed before the DAC/Planning Commission, as a part of the State Plan Exercise.
Areas of Focus under the RKVY
• Integrated Development of Food crops, including coarse cereals, minor millets and pulses
• Agriculture Mechanization
• Soil Health and Productivity
• Development of Rainfed Farming Systems
• Market Infrastructure
• AH, Dairying & Fisheries
• Concept to Completion Projects that have definite time-lines
• Support to Institutions that promote Agriculture and Horticulture, etc.
• Organic and Bio-fertilizers
• Innovative Schemes
• Operationalizing the RKVY
• State Agriculture Department is the Nodal Department
• For fast-track implementation states may notify or create an Agency to implement the RKVY
• Funds may be released directly to the Agency to facilitate faster flow
• Administrative expenses of the Agency can be borne under the RKVY but within the overall ceiling of 1% of the total allocation under the RKVY
• The Agency/Nodal Dept. will……
Be responsible for
- Preparing the SAP and ensuring the preparation of the DAPs
- Coordinate with various other line departments and implementing agencies
- Manage funds received from various sources
- Furnishing the U.Cs.
- Establishing an effective I.T. based and web-enabled MIS within six months time
• Nodal Agency will finalize the SAP and submit it to the State Planning Department for integrating with the overall State Plans.
• State Planning Department will pose it to the Planning Commission
• Meanwhile, the DPRs are to be kept ready for placing before the SLSC
• Once the approvals are received from the Planning Commission, SLSC is convened and Stream-1 proposals are placed before the SLSC
• The SLSC Agenda is sent to the DAC at least 15 days prior to the meeting date.
• The DAC representative, not below a Joint Secretary will attend the SLSC meeting.
• Once the SLSC sanction is given the DAC will immediately release funds to the Implementing Agency, or the Nodal Department, as the case may be.
• State Level Sanctioning Committee
• Chaired by the Chief Secretary
• APC/Principal Secretary, Agriculture – Vice-Chairman
• Secretary, Agriculture – Member- Secretary
• Representation from the DAC, DAHD, and Planning Commission
• Quorum incomplete without at least one GoI representative
• To meet at least once a quarter
• States to constitute the Committee as soon as possible
• Responsibilities of SLSC
- Sanction the projects under Stream- 1 of the RKVY
- Monitor and Review the progress of the sanctioned projects
- Ensure that the convergence takes place
- Ensure that no duplication of efforts takes place
- Commission field studies to monitor and evaluate the projects
• Rs.1500 crore for the year 2007-2008
• Rs.5875 crore every year till the end of the XI Five year Plan
• Total investment of Rs.25,000 crore for the XI Five Year Plan
• Administrative Expenditure
• States are entitled to spend up to 1% of their allocation under the RKVY for administrative contingencies that may include –
• Consultant Fees
• Operational expenses
• Expenses of the Implementing Agency including Staff Costs
• BUT NO VEHICLES CAN BE BOUGHT
• NO PERMANENT EMPLOYMENT CAN BE CREATED
• What Should The States Do?
• Decide if you want to notify the Implementing Agency. If you have no such Agency, decide if you want to establish one.
• Issue directions for the preparation of the DAPs and the SAP. Give specific deadlines.
• Notify the SLSC
• Sensitize the state Planning Department about the scheme
• Commence DPR preparation for the Stream-1 projects
• Engage a Consultant where necessary