• For Stream-I:
    • Stream-I is project-based. The areas of focus that have been enlisted elsewhere in the Guidelines under para 4 are the broad areas within which these projects should be posed and sanctioned by the SLSC. The project approach will mean that all the essential ingredients of a good project are properly considered and included, ie., feasibility studies, competencies of the implementing agencies, anticipated benefits that will flow to the farmers, definite time-lines for implementation, etc. The Nodal Agency will satisfy itself that the project fulfills the objectives of the RKVY before recommending the Detailed Project Reports (DPRs) to the SLSC.


    • The Nodal Agency is authorized to hire Consultants to prepare the DPRs under Stream- I and the Agency can spend up to 5% of the funds in the stream for the preparation of specific projects. If any DPRs are already available with the state Nodal Agency that fulfill the objectives of the RKVY , but have not been implemented for want of funds, they may also be included in the DAP and the SAP and thereafter, posed to the SLSC under Stream-I. If the SLSC does not approve the DPRs posed, funds cannot be accessed. No mobilization advances can be paid to any Consultant or any Agency under this provision, nor can any upfront payments be made. This condition is being imposed to ward off any inferior DPRs, preparation of which is often an end in itself, as sometimes noticed.


    • In a situation where a DPR is prepared, has found acceptance and been paid for, the balance amount of 95% of the funds will be distributed as below:
      ? 45% of the funds will be released as first installment to the state, upon the receipt of the Sanction Letter issued by the SLSC. In a situation where the DPR is prepared by the Nodal Agency or Implementing Agency itself, then the flow of funds will be as below:
      ? 50% of the funds will be released as first installment to the state, upon the receipt of the Sanction Letter issued by the SLSC.
      ? 40% of the balance funds will be released when a physical progress of at least 50% of the milestones is informed to the DAC, as envisaged in the DPRs and
      ? The balance 10% of the funds will be released when the Project is completed and field verification is done by a designated agency of the Government of India. The designated Agencies will be chosen by the DAC at an appropriate time.

    • The DAC may retain a small portion of the RKVY funds to organize pan-Indian or state-specific evaluation studies of the projects implemented or for any administrative contingencies as may arise.


    • The Nodal Agency shall ensure that Project-wise accounts are maintained by the Implementing Agencies and are subjected to the normal process of Statutory Audit. Likewise, an inventory of the assets created under the Projects should be carefully preserved and assets that are no longer required, should be transferred to the Nodal Department, for its use and redeployment where possible.


    • At least 75% of the total allocation under the RKVY is earmarked for Stream-I with an intent that maximum flexibility is given to the states to plan for their agriculture development in accordance with their own unique needs and local aspirations.


    • Funds can be released directly by the Centre to the Nodal Agency as notified by the State Nodal Department.


  • For Stream-II
    • Stream-II processes are relatively more conventional. Once the State Planning Department poses the proposals to the Planning Commission as a part of its State Plan exercise and obtains the approval of the Planning Commission, then the fund flow follows the same course as followed usually. A maximum of 25% of the funds allocated to a state are available under the Stream-II.


    • Assistance under the Stream-II will be released to the states in two equal installments. 50% of the Central allocation will be released as first installment to the states at the commencement of the Kharif Season, in April. The release of the second and final installment would be considered on the fulfillment of the following conditions:
      ? Utilization certificates for the funds released, upto the previous financial year.
      ? Expenditure of at least 60% of available funds, ie., unspent balance of the previous year plus the releases in the first installment.
      ? Submission of performance report in terms of physical and financial achievements as well as outcomes, on a regular basis, within the stipulated time frame.

    • The permissible carry over of unspent balance would be 10% of the Central allocation. Any excess over the permissible limit of 10% carry over will be adjusted in the second installment. The central assistance to the designated Nodal Agency/Agriculture department will be released as per the approved mechanism of the Ministry of Finance.


    • The Nodal Agency/Department should ensure that the Central Assistance released under the Scheme is utilized in accordance with the approved State and District Plans. Since the amounts of the second and final installment of the allocation will depend upon the progress of utilization of funds by the states, the state should ensure that the funds released are utilized promptly, properly and progress reports are sent to the DAC at the earliest. Non-utilizaation of central assistance will hinder further release of funds.


    • The performance of the states will be reflected in the Performance Budget document of this Ministry.


    • The Department of Agriculture and Cooperation may effect changes in the scheme guidelines, other than those affecting the financing pattern as the scheme evolves, whenever such changes are considered necessary.


  • Depending upon the state?s needs, a state may choose to use its entire allocated RKVY funds under the Stream-I only. In that event 100% of the RKVY funds can be utilized for the Stream-I. However, the reverse is not permissible, that is, a state cannot choose to lower its Stream-I allocation below 75%.