RKVY-RAFTAAR Incubation Scheme

The Rashtriya Krishi Vikas Yojana - Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RKVY-RAFTAAR) is a revised scheme of RKVY launched in the year 2018. This scheme aims to provide financial assistance in the form of loan for setting up of new agribusiness incubators. In this article, we look at the RKVY-RAFTAAR Incubation Scheme in detail. Also, read about Rashtriya Krishi Vikas Yojana (RKVY)

Objectives of RKVY-RAFTAAR Agribusiness Incubators

The objectives of the RKVY-RAFTAAR Agribusiness Incubators are given below:

To promote entrepreneurship, innovation and business creation in agriculture and allied sector by skill development, technology scale-up and capacity building.
To build employment opportunities for youth in agriculture in rural areas.
To achieve ''Lab to land'' through promoting a culture of Agri startups.
To promote an integrated approach for Research and Development (R&D), technology acquisition, knowledge dissemination and commercial technology transfer.
To facilitate agri-startup ecosystem by supporting for cost-effective, value-added services including technical, legal, financial, intellectual property and regulatory compliance related services to agripreneurs.
To build an agri-startup ecosystem, by establishing a network between academia, financial institutions, industries and other related institutions.
To provide an innovative solution to meet local and global agribusiness challenges and competitiveness.

Eligibility Criteria

The following are the eligibility criteria for submitting the proposal for setting up agribusiness incubators:

Any Public funded Academic, R&D institutions, Organizations, State Agriculture University (SAUs)/IITs/IIMs (host institutions) working with Agriculture and Allied sectors are eligible to apply for the scheme.
The institutions should have required infrastructure with a minimum of 5,000 sq.ft builds up space to support agri-incubation activity.
Note: A real R&D proposal for academic activity and industrial consultancy will not be eligible to participate in the scheme.

Components under RKVY-RAFTAAR

The following are the key components that will be executed under the RKVY-RAFTAAR scheme:

Strengthening of existing agribusiness incubators and setting up of new agribusiness incubators.
Seed Stage funding of Agribusiness Incubators
Agripreneurship orientation
Pre-stage funding of Agripreneurs

Steps involved in RKVY-RAFTAAR

The following are the steps involved in RKVY-RAFTAAR scheme are explained in detail: Step 1: The existing or new agribusiness incubators will strengthen itself with need-based infrastructure and human resources support to implement different components. After that, the agribusiness incubator will execute and monitor various activities covered under these components. Step 2: Selected RKVY-RAFTAAR incubators will be provided with seed-stage money at the rate of 85% with an aggregate ceiling of Rs. 25 lakhs through agribusiness incubators for product development/improvement, administrative and market research in the early stages of a start-up. Step 3: Selected RKVY-RAFTAAR agripreneurs with business platform-based ideas will be provided with a stipend for 2 months for training and internship with agribusiness incubators. Step 4: Selected RKVY-RAFTAAR interns after successful completion of training and internship will be provided pre-seed stage seed money at the rate of 90% with a maximum ceiling of Rs. 5 lakhs through Agribusiness incubators to convert their proof of concept into a product. Note: The funding support will be provided to operate the R-ABI programme up to March 2020.

RKVY-RAFTAAR Selection and Monitoring Committee (RC)

The Nodal Division of RKVY-RAFTAAR is responsible for the overall management and implementation of the scheme. The Nodal agency will invite the applications and sanction projects for agribusiness incubators based on the recommendations of RKVY-RAFTAAR Selection and Monitoring Committee (RC). The Nodal Division will ensure the release of funds in instalments, following due procedure and ensuring proper utilization of funds etc. Also, the Nodal Division will be the final authority for deciding on all matters, including fund allocation and review of progress and monitoring of all projects sanctioned under the scheme.

Pattern of Financial Assistance and Release of funds

The eligible host institution would be provided financial support under this component for the fiscal year of 2019-20.
The agri incubators would be provided with a maximum ceiling of Rs. 200 lakhs which would cover capital and operational expenditure as per applicable rules.
Any expenditure is above the sanctioned amount will have to be borne by the host institution or agri-business incubators from its resources.
The RC while recommending sanction of the grant to agri-business incubators will confirm whether any other funding already received by Eligible Incubator from other Ministries and Departments under similar schemes like DST, BIRAC, MSME, NITI Aayog, DBT, NABARD etc., especially (towards capital expenditure).
The grant would be disbursed in two instalments are:
1st instalment: To the extent of 100% of capital expenditure along with first-year operational expenses will be provided.
2nd instalment: The Nodal Division will sanction the residual amount as specified already.
The release of the fund after the first year is performed only after the satisfactory performance given by the agri-business incubators. For this purpose, the development of work and achievement of the milestones/deliverables, as indicated in the business plan of the agri-business incubators approved by the Nodal Division of RKVY-RAFTAAR in DAC&FW, will be tracked periodically.
Any change or modification required during the implementation not covered above would be considered on the recommendation by RC, and such modifications will be considered if the results of agribusiness are effective in operation.
The Nodal Division will ensure the release of instalments in time after the Division sanctions the project based on recommendations of RC. Similarly, subsequent payments will be issued after utilization of 80% of the previously released amount and receipt of provisional Utilization Certificate (UC) of 80% of already released funds.