The Cabinet Committee on Economic Affairs gave its approval for a new Additional Central Assistance Scheme.

The objectives of the scheme are:
(i) to enhance public investment in agriculture and allied sectors.
(ii) to incentivise States to draw up comprehensive State and District Agriculture Plans.
(iii) to help the States to achieve the targeted agricultural growth rates.

The scheme will enable the States to draw up plans for their agriculture sector more comprehensively, taking agro-climatic conditions, natural resources, and technology into account, and by integrating livestock, poultry and fishery sectors.

The outlay under the scheme would depend upon the amount provided in the State Budgets for agriculture and allied sectors, over and above the base line percentage expenditure incurred by the State Governments.

The funds under the ACA would be provided to the States as 100% grant by the Central Government.

An outlay of Rs.1500 crore for the Scheme for 2007-08, along with an allocation of Rs.25,000 crore for five years has also been approved by the CCEA.

It would result in quantifiable increases in agriculture and allied sector production, productivity and farm incomes and reduction in yield gaps.

Mr. Neeraj Sharma

Neeraj Electronics

CEO, Neeraj Electronics
Jorhat, India

Free Member, Joined :06/09/2007
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