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          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

  1. To incentivize the states that increase their investment in Agriculture and allied sectors
  2. To provide flexibility and autonomy to the States in planning and executing programmes for agriculture
  3. To ensure the preparation of Agriculture Plans for the districts and states
  4. To achieve the goal of reducing the yield gaps in important crops
  5. To maximize returns to the farmers
  6. To address the agriculture and allied sectors in an integrated manner

        Basic features of the RKVY

  1. It is a State Plan scheme
  2. The eligibility of a state for the RKVY is contingent upon the state maintaining or increasing the State Plan expenditure for Agriculture. & Allied Sectors
  3. 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.
  4. The list of allied sectors is as indicated by the Planning Commission
  5. 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

  1. Preparing the SAP and ensuring the preparation of the DAPs
  2. Coordinate with various other line departments and implementing agencies
  3. Manage funds received from various sources
  4. Furnishing the U.Cs.
  5. 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

  1. Sanction the projects under Stream- 1 of the RKVY
  2. Monitor and Review the progress of the sanctioned projects
  3. Ensure that the convergence takes place
  4. Ensure that no duplication of efforts takes place
  5. 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



        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