Rashtriya Krishi Vikas Yojana

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To spur growth in the Agriculture and allied sectors, National Development Council (NDC), in its meeting held on 29th May 2007 observed that a special additional Central Assistance (ACA) Scheme be introduced to incentivize States to draw comprehensive agriculture development plans taking into account agro-climatic conditions, natural resources and technology for ensuring more inclusive and integrated development of agriculture and allied sector. Rs 22,408.76 crore was released to States out of which Rs. 21,586.6 crores was utilized in implementing 5768 projects in certain broad categories namely; crop development, horticulture, agricultural mechanization, natural resource management, marketing & post-harvest management, animal husbandry, dairy development, fisheries, extension, etc. Govt. of India launched Rashtriya Krishi Vikas Yojana (RKVY) from 2007-2008 to incentivize States to draw up comprehensive agriculture development plans. In pursuance to aforesaid observation and consultation with the Planning Commission, Department of Agriculture & Cooperation (DAC), Ministry of Agriculture, Govt. of India launched Rashtriya Krishi Vikas Yojana (RKVY) from 2007-2008, which has been operational since then.

Objectives of RKVY

The main objectives of the scheme are to:

  • To provide flexibility and autonomy to States in the process of planning and executing Agriculture and allied sector schemes.
  • To ensure that the local needs/crops/priorities are better reflected in the agricultural plans of the States.
  • To incentivize the States to increase public investment in Agriculture and allied sectors.
  • To bring about quantifiable changes in the production and productivity of various components of Agriculture and allied sectors by holistically addressing them.

Eligibility Criteria and Inter-State Allocation of Funds:

RKVY will continue to be implemented as a State Plan Scheme. The list of allied sectors as indicated by the Planning Commission will be the basis for determining sectoral expenditure. Expenditure on shallow tube well, deep tube well and sprinkler irrigation will also be considered for calculating baseline expenditure. (Also refer to Appendix-B).


A State will become eligible to receive RKVY allocation if the baseline share of Agriculture and allied sectors in its total State Plan is at least maintained. For States to become eligible, the “average percentage share of expenditure in agriculture and other identified related sectors during last three years” should be at least equal to the baseline level.

Interstate allocation

RKVY Funds will be made available to the States in two installments of 50% each. Eligibility & Inter-Stateallocation criteria will not be applied for providing funds under the sub-schemes of RkVY or SpecialSchemes. Release of funds will only be made to the state government and States may supplement RKVy projects from within their resources.

Release of Funds

50% of the RKVY annual allocation will be released as the first installment to the State, upon the receipt of the minutes of SLSC approving implementation of new projects and/or continuation of ongoing projects. Release of the second and final installment would be considered on the fulfillment of the following conditions: 100% Utilization Certificates (UCs) for the funds released up to the previous financial year; Expenditure of at least 60% of funds released in the first installment during the current year; and. Submission of performance report in terms of physical and financial achievements as well as financial outcomes every quarter.

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