:::Guidelines | Basic Features of the RKVY:::

The RKVY aims at achieving 4% annual growth in the agriculture sector during the XI Plan period, by ensuring a holistic development of Agriculture and allied sectors. The main objectives of the scheme are :
- 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.

These guidelines are applicable to all the States and Union Territories that fulfill the eligibility conditions.

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 base line 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, i.e 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 base line 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. The RKVY funds would be provided to the states as 100% grant by the Central Government. The process of determining eligibility under the RKVY is illustrated in Annexure-I. The states are required to prepare the Agriculture Plans for the districts and the state that comprehensively cover resources and indicate definite action plans.

Since the RKVY is applicable to the entire State Plan for Agriculture and allied sectors, and seeks to encourage convergence with schemes like NREGS, SGSY and BRGF, the Planning Commission and the Ministry of Agriculture will together examine the States’ overall Plan proposals for Agriculture and allied sectors as part of the Annual Plan approval exercise. At this stage, in consultation with the Ministry of Panchayati Raj it will also be decided if the requirements with respect to the District Development Plans have been met or not. Advice may also be taken from DAHD &F, Ministry of Water Resources, MoRD, DARE, and NRAA, if the convergence has been appropriately factored in.

Once a state becomes eligible for the RKVY, the quantum of assistance and the process of subsequent allocation to the state will be in accordance with the parameters and the respective weights, as explained in Annexure-II.

It will be permissible for the states to initiate specific projects with definite time-lines, and clear objectives for Agriculture and allied sectors excluding forestry and wild life, and plantations (ie., Coffee, Tea and Rubber). For this purpose, the RKVY would be available to the states in two distinct streams. At least 75% of the allocated amount shall be proposed under Stream-I for specific projects. The amount under Stream- II, will be available for strengthening the existing state sector schemes and filling the resource gaps. A review of the ratios between Stream-I and II will be made after a year’s experience in the implementation of the scheme.

A State Level Sanctioning Committee (SLSC) headed by the Chief Secretary of the state will have the authority to sanction specific projects under the Stream-I. The Government of India’s representative shall participate in the SLSC meetings and the quorum shall not be complete without the presence of at least one official from the Government of India.

There may arise a situation when a particular state becomes ineligible to avail of the funds under the RKVY in a subsequent year due to its lowered expenditure on Agriculture and allied sectors. If this were to happen, the states shall be required to commit their own resources for completing the sanctioned projects/schemes under the RKVY.

The pattern of funding is 100% Central grant and the eventual goal is that the additional investments made through the RKVY scheme will lead to at least 4% growth in agriculture. The states are given sufficient flexibility under the scheme to make appropriate local choices so that the outcomes are as envisaged in the RKVY objectives.