In a bid to incentivise States to increase allocations for agriculture and allied sectors the, Cabinet Committee on Economic Affairs on Wednesday approved the continuation of Rashtriya Krishi Vikas Yojana (RKVY) for three years — 2017-18 to 2019-20 —renaming it as Rashtriya Krishi Vikas Yojana-Remunerative Approaches for Agriculture and Allied sector Rejuvenation (RKVY-RAFTAAR).

“The financial allocation of the scheme will be ₹15,722 crore with the objective of making farming a remunerative economic activity through strengthening the farmer’s effort, risk mitigation and promoting agri-business entrepreneurship,” an official release said.

The RKVY-RAFTAAR funds would be provided to States as 60:40 grants between Centre and States (90:10 for North-Eastern States and Himalayan States).

Under the revamped scheme, about 50 per cent of the annual outlay will be provided for setting up infrastructure and assets, 30 per cent for value addition-linked production projects and 20 per cent of the outlay will be flexi-funds.

“States can use this (flexi-funds) for supporting projects as per the local needs,” the release added.

In addition, about 20 per cent of the annual outlay would be provided for implementing special sub-schemes of national priorities under RKVY-RAFTAAR.

Also, 10 per cent of the annual outlay would be provided for innovation and agri-entrepreneur development through creating end-to-end solution, skill development and financial support for setting up the agri-enterprise.

“The scheme will incentivise States in enhancing more allocation to agriculture and allied sectors. This will also strengthen farmers’ efforts through creation of agriculture infrastructure that helps in supply of quality inputs, market facilities, etc,” the official statement said.

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