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Rashtriya Krishi Vikas Yojana (RKVY) or National Agriculture Development Programme is a special Additional Central Assistance Scheme which was launched in August 2007 to achieve 4% annual growth in the agricultural sector during the 11th plan. 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 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 National Agriculture Development Programme (RKVY). The scheme was launched to incentivize the States to provide additional resources in their State Plans over and above their baseline expenditure to bridge critical gaps.

Objectives of RKVY

  • To incentivize the states that increase their investment in Agriculture and allied sectors
  • To provide flexibility and autonomy to the States in planning and executing programmes for agriculture
  • To ensure the preparation of Agriculture Plans for the districts and states
  • To achieve the goal of reducing the yield gaps in important crops
  • To maximize returns to the farmers
  • To address the agriculture and allied sectors in an integrated manner

Features of RKVY

RKVY is a State Plan Scheme. The States have to provide the additional budget for agriculture and allied sectors above the baseline.

  • It is a State Plan scheme
  • The eligibility of a state for the RKVY is contingent upon the state maintaining or increasing the State Plan expenditure for Agricultural and Allied sectors
  • The base line expenditure is determined based on the average expenditure incurred by the State Government during the three years prior to the previous year.
  • The preparation of the district and State Agriculture Plans is mandatory
  • The scheme encourages convergence with other programmes such as NREGS.
  • The pattern of funding is 100% Central Government Grant.
  • If the state lowers its investment in the subsequent years, and goes out of the RKVY basket, then the balance resources for completing the projects already commenced would have to be committed by the states.
  • It is an incentive scheme, hence allocations are not automatic
  • It will integrate agriculture and allied sectors comprehensively
  • It will give high levels of flexibility to the states
  • Projects with definite time-lines are highly encouraged

Sectors Covered

  • Crop Husbandry (including Horticulture)
  • Animal Husbandry, Dairy Development and Fisheries
  • Agricultural Research and Education
  • Agricultural Marketing
  • Food storage and Warehousing
  • Soil and Water Conservation
  • Agricultural Financial Institutions
  • Other Agriculture Programmes and Cooperation

Focus Areas

  • Integrated Development of Food crops, including coarse cereals, minor millets and pulses
  • Agriculture Mechanization
  • Soil Health and Productivity
  • Development of Rainfed Farming Systems
  • Integrated Pest Management
  • Promoting extension services
  • Horticulture
  • Animal Husbandry, Dairying & Fisheries
  • Sericulture
  • Study tours of farmers
  • Organic and Bio-fertilizers
  • Innovative Schemes

State Eligibility Criteria

The states are mandatorily required to prepare the District Agriculture Plan (DAP) and State Agriculture Plan (SAP) that comprehensively cover resources and indicate definite action plans. States are encouraged to converge the scheme with other programmes such as NREGS, SGSY, BRGF, etc. If the state lowers its investment in the subsequent years, and goes out of the RKVY basket, then the balance resources for completing the projects already commenced would have to be committed by them.

Funds Approval and Disbursal Process

The Nodal department for the scheme in the states is the State Agriculture Department. The department is required to take appropriate steps for identification of the projects that are important for agriculture, horticulture and allied sector development. If the government of the state is in hurry, it can also constitute an agency by notification for implementation of the RKVY. If the state does so, the funds would be disbursed to this agency but the administrative expenses of such agency cannot exceed 1% of total allocation under RKVY.

This agency or the state department of agriculture will ensure the preparation of the DAPs (District Action Plans) and preparing the SAP (State Action Plan). A District Agriculture Plan (DAP) for each district should be formulated as per the Planning Commission guidelines. The DAP should include clear roadmap of the sectors. Then, the comprehensive State Agriculture Plan (SAP) should evolve out of the DAPs. Finalized SAP should be placed by the State Planning Department before the Department of Agriculture /Planning Commission, as a part of the State Plan Exercise.

The determination of eligibility is done by Planning Commission. How much money should be allocated is also determined by the Planning Commission. Once the state becomes eligible, the Distribution of Funds is done by the Department of Agriculture (DAC), under the Ministry of Agriculture.

The money is released to the state governments. For further flow of the money, the state government is required to create a State Level Sanctioning Committee (SLSC) constituted under the Chairmanship of the Chief Secretary of the concerned State Government/UT. This SLSC approve the projects under RKVY to the agency.

The money is released is in two streams. Up to 75% of the money is released under stream-1 only by the SLSC whereby the money is used for project based funding with definite timelines. For expenditure of this money, states will have to prepare DPRs for undertaking projects that are consistent with the SAPs and DAPs. Rest maximum 25% of the funds can be spend for strengthening the existing schemes. However, there are options that all money is used as per stream-1.


The total outlay of this scheme was kept 25,000 Crore for the 11th plan period in the form of Additional Central Assistance (ACA).

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