PM to unveil Rashtriya Krishi Vikas Yojana

NEW DELHI: Prime Minister Mahmohan Singh’s new passion is agriculture. His team is busy devising a grand scheme for farmers, which is expected to be announced in the forthcoming National Development Council’s (NDC) meeting on May 29.

The scheme will provide for a substantial additional central assistance (ACA) apart from Rs 1,33,000 crore proposed for the sector in the 11th Plan (2007-12).

“The PM may announce a new programme for agriculture sector under ACA scheme in the forthcoming NDC meeting. The proposed scheme is likely to be called as Rashtriya Krishi Vikas Yojana (RKVY). The Centre would provide substantial amount under the scheme for the remaining four years of the 11th Plan,” a government source told ET.

The states would, however, be required to make a matching contribution to the new centrally-sponsored scheme (CSS) based on their existing plan expenditure on agriculture, it added. Actual central assistance for the new scheme would be finalised after allocation for the agriculture sector is worked out by the NDC.

As per the proposal, the new scheme would not replace an existing CSS. However, most of the additional funds provided to sector under a new agricultural strategy (this would be approved by the NDC) would be channelled through RKVY.

The new scheme is being considered to meet additional funds required for the farm sector to achieve the targeted 4% growth levels during the current Plan. Planning Commission has suggested that growth of sector is crucial for achieving overall average GDP growth rate of 9% during the 11th Plan.

While the details of the new scheme would be worked out after its announcement, states have already been advised to converge most essential aspects of their state specific action plan for agriculture into a specific programme. This would then form the basis of the new CSS that would be given a final shape by a committee chaired by ministry of agriculture with participation department of rural development and the Planning Commission.

It is understood that disbursement of funds to states under the new scheme would be based on a formula based on size of agricultural GDP of a state and the potential yield gap (the gap between actual yield and potential yield for relevant crops).

Funds would be made available to states on the basis of acceptable agricultural pan and a matching contribution by them. The centre would also monitor progress of the new scheme in each states to ascertain fund requirements in subsequent year of its operation.