National Agriculture Development Programme/Rashtriya Krishi Vikash Yojna

Guidelines for the National Agriculture Development Programme(NADP)/Rashtriya Krishi Vikash Yojna (RKVY)


  • 1.1 Education reforms initiated since 1911 have put the Indian economy on a higher growth trajectory. Annual growth rate in the total Gross Domestic Product (GDP) has accelerated from below 6 per cent during the initial year of reform to more than 8 per cent in recent years. The Planning Commission in its approach paper to the Eleventh Five-Year-Plan has stated that 9 per cent growth rate in GDP would be feasible during the Eleventh Plan period. However, Agriculture that accounted for more than 31 per cent of total GDP at the beginning of reforms failed to maintain its pre-reform growth. On the contrary, it witnessed a sharp deceleration in growth after the mid-1990s. This happen despite the fact that agricultural productivity in most of the states was quite low as it were, and the potential for the growth of agriculture was high.

  • 1.2 The GDP of agriculture increased annually at more than 3 per cent during the 1980s since the Ninth Five-Year Plan (1996 to 2001-02), India has been targeting a growth rate of more than 4 per cent in agriculture, but the actual achievement has been much below the target. More than 50 per cent of the workforce of the country still depends upon agriculture for it’s livelihood. Slow growth in Agriculture and allied sectors can lead to acute stress in the economy because the population dependent upon this sector is very large. A major cause behind the slow growth in agriculture is the consistent decrease in investment in the sector by the state governments. While public and private investments are increasing manifold in sectors such as infrastructure, similar investment are not forthcoming in agriculture and allied sectors, leading to distress in the community of farmers, especially that of the small marginal segment Hence the need for incentivizing states that increase their investment in the agriculture and allied sectors has been felt.

  • 1.3 Concerned by the slow growth in the Agriculture and allied sectors, the National Development Council (NDC), in its meeting held on 29th May, 2007 resolved that a special Additional Central Assistance Scheme (RKVY) be launched. The NDC resolved that agricultural development strategies must be reoriented to meet the needs of farmers and call upon the Central and State governments to evolve a strategy to rejuvenate agriculture. The NDC reaffirmed its commitment to achieve 4 per cent annual growth in the agricultural sector during the 11th Plan. The Resolution with respect to the Additional Central Assistance scheme reads below:
    Introduce a new Additional Central Assistance scheme to incentivize States to draw up plans for their agriculture sector more comprehensively, taking agro-climatic conditions, natural resource issues and technology into account, and integrating livestock, poultry and fisheries more fully. This will involve a new scheme for Additional Central Assistance to State plans, administered by the Union Ministry of Agriculture over and above its existing Centrally Sponsored schemes, to supplement the state-specific strategies including special schemes for beneficiaries of land reform. The newly created National Rain fed Area Authority will request assists States in planning for rain fed areas.

  • 1.4 The Department of Agriculture, in compliance of the above resolution and in consultation with the Planning Commission, has prepared the guidelines for the RKVY scheme, to be known as NADP/RKVY that are contained in this document.

2.Basic Features of the RKVY

  • 2.1 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:
    • i.To incentivize the states so as to increase public investment in agricultural and allied sector.
    • ii.To provide flexibility and autonomy to states in the processing of planning and executing Agriculture and allied sector
    • iii.To ensure the preparation of agriculture plans for the districts and the states based on agro-climatic conditions, availability of technology and natural resources.
    • iv.To ensure that the local needs/crops/priorities are better reflected in the agricultural plans of the states.
    • v.To achieve the goal of reducing the yield gaps in important crops, through focused interventions.
    • vi.To maximize returns to the farmers in Agricultural and allied sectors.
    • vii.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.

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

  • 2.3 The RKVY will be a state plan scheme. The eligibility for assistance under the scheme would depend upon the amount provided in State Plan Budget for Agriculture and allied sector, over and above the base line percentage expenditure incurred by the State government on Agriculture and allied sectors. The list of allied sector as indicated by the Planning Commission will be the basis for determining sectoral expenditure i.e. Crop Husbandry (including Horticulture), Animal Husbandry and Fisheries, Dairy Development, Agricultural Research and Education, Forestry and Wildlife, Plantation and Agriculture Marketing. Food Storage and Warehousing, Soil and Water Conservation, Agricultural Financial Institutions, other Agriculture Programmes and Co-operation. 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 baseline would be a moving average and the average of the previous three years will be taken in account for determining the eligibility under the RKVY funds already received. The RKVY funds will be provided to the states as 100% grant by the Central Government. The state are required to prepare of determining eligibility under the RKVY is illustrated in Annexure-I. The states are required to prepare the Agricultural Plans for the districts and the state that comprehensively cover resources and indicate definite action plans.

  • 2.4 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 state’ overall Plan Proposals for 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 requirement with the 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.

  • 2.5 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

  • 2.6 It will be permissible for the states to initiate time-lines, and clear objectives for agricultural and allied sectors excluding forestry and wildlife, and plantations (i.e., Coffee, Tea, 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.

  • 2.7 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 representatives 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.

  • 2.8 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.

  • 2.9 The pattern of funding is100% 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 locals choices so that the outcomes are as envisaged in the RKVY objectives.

3.The Planning Process of RKVY

  • 3.1 Each District will formulate a District Agriculture Plan (DAP) by including the resources available from other existing schemes, District, State, or Central schemes such as BRGF, SGSY, NREGS and Bharat Nirman, etc. The District Agricultural Plans shall not be the usual aggregation of the existing schemes but would aim at moving towards projecting the requirements for development of Agricultural and allied sector within the overall development perspective of the district. The District Agriculture Plans would present the financial requirement and the sources of financing the agriculture development plans in a comprehensive way. Since RKVY is conditional to proper District Planning and since Planning Commission has already circulated guidelines for District Planning in line with Constitutional requirements, these requirements should be adhered to by the state as far as possible. The states will have to specify the institutional mechanisms evolved by them for District Planning as resolved in the NDC and submit a status report at the stage of the Annual Plan exercise. The SLSC will monitor the and ensure this. The DAP will include animal husbandry and Fishery, Minor Irrigation projects, rural development works, agricultural marketing schemes and schemes for water harvesting and conservation, etc. keeping in view the natural resources and technological possibilities in each district.

  • 3.2 Each state will prepare a comprehensive State Agricultural Plan (SAP) by integrating the District Plans. The state will have to, at the outset, indicate resources that can flow from the state to the district. The DAP will integrate multiple programmes that are in operation in the district concerned, include the resources and activities indicated by the state, combine the resources available from the other programmes and finalize the plan. The element that will be taken into account should cover at the least:
    (a) Sectoral and District segments of the State Plan.
    (b) Centrally sponsored schemes, viz. NREGS (National Rural Employment Guarantee Scheme), BRGF (Backward Region Grant Fund), SGSY (Swarn Jayanti Gram Swarojar Yojana) and Bharat Nirman, etc. and
    (c) Tied and united grants from the Central and State Finance Commissions.
    The preparation of the State Agricultural Plan could be a two-way process. In one method, the state nodal department (Agricultural Department) could obtain the draft DAPs from the districts in the first instance and examine if aspects of importance to the state are properly covered in the district plans or not. For example, at the state level, the vision could be to set up fertilizer quality testing labs is corporate in the District Agricultural Plans of the districts Concerned. Ensuring the state priorities with respect to agriculture and allied Sectors are appropriately captured in the District Agricultural Plans would be the responsibility of preparing the SAPs. In the other method, the state Nodal Agency could communicate to the Districts in the first instance, the state’s priorities that ought to reflect in the respective district plans and the districts may incorporate these in their district plans. The preparation of the of the District Agriculture Plan is an Elaborate, exhaustive and interactive process of Every care should be taken by the state nodal department and the district agriculture department officials in ensuring that the DAPs are properly and comprehensively made ensuring that the DAPs are properly and comprehensively made available unless all the district are ready with the district plan. Wherever the states feels the need to engage consultant to prepare the DAP and or SAP, they may do so.

  • 3.3 Several states/union territories may already have prepared comprehensive district and state agriculture plans. They may ascertain if they could be updated and used for the purpose of the RKVY. However, in state with no such preparation, an exercise should immediately commence, so as to complete it within a three month period. The district level potential linked credit plans (PLP) already prepared by the NABARD may be useful in this ground. The state governments are advised to make best use of PLPs and SREPs (Strategic Research and Extension Plans) develop under the ATMA programme. The guideline for preparing the District Development Plans has been communicated to the state government by the Planning Commission. For the purpose of the RKVY, the District Development Plans so prepared, in accordance with the Planning Commission’s Guidelines should be broadly sufficient. It should however be ensured that the convergence with other programmes as well as the role assigned to the PRIs are satisfactory. for the year2007-08, a clear indication should be given by the state that they are encouraging the preparation of the district Agricultural plans that are integral to the to the District Development Plan. The intent of the states will be known by the number of districts already covered, and the availability of a road map for covering the remaining districts. Eventually, i.e., from 2008-09 onwards, no assistance under the RKVY shall be available unless all the districts are ready with the district plan. Wherever the states feels the need to engage consultant to prepare the DAP and /or SAP, they may do so.

  • 3.4 The finalized State Agricultural Plan will be placed before the Department of Agriculture (DAC) and the Planning Commission, as a part of the State Plan exercise, for Additional Central Assistance by the State Planning Department. The DAC AND Planning Commission will approve the SAP with such suggestion as may be necessary. The state will provide complete rationale and justification for the assistance sought, well before the state plan discussions to firm up their views on the proposals and make such consultants as may be necessary with concerned department.

  • 3.5 The districts will be required to prepare a shelf of projects, for posing to the SLSC under stream-I. At least 75% of the total funds under the RKVY that a state gets entitled to, will be available under the Stream-I. The Nodal Department/Agency will undertake/compile Such projects from each of the districts prioritize them and place them before the SLSC. The SLSC is vested with the authority to sanction the project under stream-I in a meeting that will be attended by the representatives of the Government of India. The Nodal Agency will give at least 15 clear days of notice to the representative of the Government of India while sending the meeting notice, along with a gist of the agenda. The projects posed to the SLSC under stream-I shall be consistent with the District and State Agriculture Plans. The balance of the total RKVY funds will be available for strengthening of the existing schemes and for filling Gaps under the State Plans. This would be united assistance to the states

  • 3.6 A state is permitted to use up to 1% of its total RKVY funds for incurring administrative expenditure that includes payments to consultants, recurring expenses of various kinds, staff costs, etc. However, no permanent employment can be created, nor can vehicles be purchased.

  • 3.7 The DAC may retain a proportion of 1% of the RKVY funds at its level, so as to organize pan-India evaluations or for such administrative contingencies that may arise at various times.