NEW DELHI, Nov 1: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared 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 till 2019-20.
The scheme with financial allocation of Rs 15,722 crore was cleared by CCEA chaired by Prime Minister Narendra Modi and is aimed at making farming a remunerative economic activity through strengthening the farmer’s effort, risk mitigation and promoting agribusiness entrepreneurship, an official statement here said.
The scheme will incentivise 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 and market facilities.
This will further promote agri-entrepreneurship and support business models that maximise returns to farmers. Under this, regular RKVY-RAFTAAR (Infrastructure & Assets and Production Growth) with 70 per cent of annual outlay is allocated to states as grants for the following activities: infrastructure and assets with 50 per cent of regular RKVY-RAFTAAR outlay; value addition linked production projects with 30 per cent of regular RKVY-RAFTAAR outlay and flexi-funds with 20 per cent of regular RKVY-RAFTAAR outlay. States can use this for supporting any projects as per the local needs.
Besides, there is allocation for special sub-schemes of RKVY-RAFTAAR of national priorities for 20 per cent of the annual outlay; and 10 per cent of annual outlay including two per cent of administrative costs for innovation and agri-entrepreneur development through creating end-to-end solution, skill development and financial support for setting up the agri-enterprise. (UNI)
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