FUND FLOW MECHANISM


1. Funds will be released to states after approval of annual action plan by national Executive Committee in May of each year.

2. Incentives to farmers for organic conversion, organic inputs, on-farm input production infrastructure etc shall be provided as Direct Benefit Transfer (DBT) to their respective bank accounts of farmers/ group of farmers. States may define the policy guidelines for utilization of such funds, but it will be the choice of the farmers to select the input/ input production infrastructure.

3. States/ Implementing agencies will furnish utilization certificate (UC) in the prescribed format (Form GFR 19-A) and physical & financial progress report containing physical and financial targets of the previous grants-in-aid, along with State share, before requesting for release of subsequent instalment.

4. All implementing agencies are required to maintain subsidiary accounts of the grants-in-aid and get the same audited from a Chartered Accountant.

5. Grants in aid will be released as per provisions regarding release of funds contained in GFR 2017 and instruction issued in this regard by Government of India from time to time.

6. The project is to be executed over a period of 3 years, every year audited report (GFR 19-A) duly signed by Chattered Accountant along with physical report is to be submitted to DAC&FW, Ministry of Agriculture and Farmers Welfare, Govt. of India. State that requires additional time to implement the project, beyond 3 years may seek prior permission before the end of the project period during first 2 years subject to the condition that they should not exceed the overall per hectare and per farmer cost ceilings.

7. As far as possible, all the activities should be funded through PKVY as per guidelines. Convergence with other schemes like RKVY, MIDH, NFSM etc. of the DAC&FW and schemes of other ministries like MSME, MOFPI for value addition, marketing can be done.