Cabinet approves ongoing Centrally Sponsored Scheme (State Plans) – Rashtriya Krishi Vikas Yojana (RKVY) as Rashtriya Krishi Vikas Yojana- Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR) for three years i.e. 2017-18 to 2019-20
The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved the continuation of Rashtriya Krishi Vikas Yojana (RKVY) as Rashtriya Krishi Vikas Yojana- Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR) for three years i.e. 2017-18 to 2019-20.
The financial allocation of the scheme will be Rs. 15,722 crore with the objective of making farming as a remunerative economic activity through strengthening the farmer’s effort, risk mitigation and promoting agribusiness entrepreneurship.
RKVY-RAFTAAR funds would be provided to the States as 60:40 grants between Centre and States (90:10 for North Eastern States and Himalayan States).
The schemes include egular RKVY-RAFTAAR (Infrastructure & Assets and Production Growth) with 70%of annual outlay to be allocated to states as grants based for the activities like i. Infrastructure and assets with 50% of regular RKVY-RAFTAAR outlay or Value addition linked production projects with 30% of regular RKVY-RAFTAAR outlay, etc.
Fund would be spent on innovation and agri-entrepreneur development through creating end-to-end solution, skill development and financial support for setting up the agri-enterprise -10% of annual outlay including 2% of administrative costs.
The scheme will incentivize States in enhancing more allocation to Agriculture and Allied Sectors. This will also strengthen farmer’s efforts through creation of agriculture infrastructure that help in supply of quality inputs, market facilities etc. This will further promote agri-entrepreneurship and support business models that maximize returns to farmers.