rashtriya krishi vikas yojana: Government funds 800 startups under RKVY to fuel innovation – The Economic Times

New Delhi: The Centre has funded about 800 startups with an amount of Rs 118.65 crore under the Innovation and Agri-entrepreneurship Development Programme component of the Rashtriya Krishi Vikas Yojana (RKVY) to fuel innovation in the field of artificial intelligence (AI), internet of things (IoT), information and communication technology (ICT), and blockchain technology in the agriculture sector.

The move is part of the government’s push to modernise agriculture and allied sectors to increase yield, quality, efficiency and profitability.

Prime Minister Narendra Modi recently called on entrepreneurs together with the corporate world, technology sector and the financial world to collaborate with the government and take Budget initiatives to farmers before they start the new agriculture year this year.

The total amount earmarked for promoting new age companies is Rs 86.64 crore as grants-in-aid. “So far, 799 startups have been finally selected between 2019-20 and 2021-22 by different knowledge partners and agribusiness incubators of the Department of Agriculture, Cooperation and Family

Welfare, and the first instalment of Rs 37.9 crore grants-in-aid has been released,” said an official, who did not want to be identified.

The second instalment of grants-in-aid of Rs 5.09 crore has also been released for 113 startups out of these 799 startups, said the official.

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The department has selected five knowledge partners as Centre of Excellence and 24 RKVY-RAFTAAR agribusiness incubators from across the country. These incubators are empowered to support agri startups throughout the country.

The Union agriculture and farmers welfare ministry had conceived of the scheme to promote innovation and agripreneurship by providing financial support and nurturing the incubation ecosystem.

Under the scheme, grants are provided for startups to build on their business ideas and for those who are already in business and want to scale up, and the release of funds is based on the achievement of milestones. While the programme was for three years – 2017-18 to 2019-20 – it has been extended.

The scheme has funded startups in the fields of agriculture and allied sectors such as agro-processing, food technology and value addition, precision farming and digital agriculture, blockchain technology, logistics, value and supply chain management, online platform, farm mechanisation, organic farming, natural resource management, renewable energy, waste management, animal husbandry, fisheries, dairy and secondary agriculture.

Under the scheme companies are provided with mentorship on financial, technical, intellectual property issues, seed stage funding up to Rs 25 lakh (85% grant and 15% contribution from the incubatee) and pre-seed stage funding of agripreneurs – funding up to Rs. 5 lakh (90% grant and 10% contribution from the incubatee).