Every year, PKVY support starts with an Annual Action Plan. It sets out the clusters, the area and the money, and nothing is released until it is sanctioned. This episode explains how the plan fits into the scheme's flow of funds, what it contains, and the mistakes that cause it to be returned.
The short version
- Regional Councils compile farmers' applications into the Annual Action Plan.
- The plan goes to the Ministry of Agriculture and Farmers Welfare for approval.
- Funds then flow Centre to State to RC, and on to farmers by DBT.
- The plan's area and money must match the component norms per hectare.
Where the Action Plan Fits
Applications become an Annual Action Plan; once sanctioned, funds flow from the Centre to the State, to the Regional Councils, and to farmers by DBT.
- Farmers apply.Farmers approach their Regional Council, which guides them through enrolment and certification.
- RCs compile the plan.The Regional Councils compile the applications into an Annual Action Plan.
- The Ministry approves.The plan is submitted to the Ministry of Agriculture and Farmers Welfare for approval.
- Funds are released.The Central Government releases funds to the State Government, which passes them to the Regional Councils.
- Farmers are paid.The Regional Councils pay farmers directly through Direct Benefit Transfer (DBT).
This is the flow described by the Press Information Bureau in October 2025. Your State Department of Agriculture sets the exact format and dates for each year.
Did you know?PKVY is a component of the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY). About ₹2,265.86 crore was released under PKVY between 2015 and 2025.
What the Plan Contains
The clusters, their villages and area, the farmers, and the money under each component.
- Clusters, with district, block and villages.
- Farmers and area in each cluster, keeping each farmer within 2 hectares and each cluster at 20 hectares.
- Money under each component, at the per-hectare norms below.
| Component (per hectare, over 3 years) | Norm |
|---|---|
| Organic inputs, paid to farmers by DBT | ₹15,000 |
| Training and capacity building | ₹9,000 |
| Marketing, packaging, branding and value addition | ₹4,500 |
| Certification and residue analysis | ₹3,000 |
Worked example. One 20-hectare cluster at ₹31,500 per hectare is ₹6,30,000 over 3 years, of which ₹3,00,000 is DBT to farmers for inputs.
Why Plans Are Returned
Totals that do not match the norms, clusters over 20 hectares, farmers over 2 hectares, and figures that differ from the approval.
- Area mismatch. The plan's cluster area differs from the farmers' registered land.
- Wrong component. Money placed under the wrong head, or above the per-hectare norm.
- Limits crossed. A farmer above 2 hectares, or a cluster far from 20 hectares.
- Figures changed. Totals that differ from the state's administrative approval.
Keep the submitted figures identical to the state's approval. Any difference in the total budget or target area is the first thing a reviewer will query.
Illustrative workload. At about 15 minutes to enter and check one cluster's figures, 100 clusters take about 25 hours.
Check yourself
Tap an answer to see whether you are right, and why.
Who compiles farmers' applications into the Annual Action Plan?
- Each farmer
- The Regional Councils
- APEDA
RCs compile the plan, which goes to the Ministry for approval.
A 20-hectare cluster receives ₹31,500 per hectare. What is the total over 3 years?
- ₹3,15,000
- ₹6,30,000
- ₹31,50,000
20 × ₹31,500 = ₹6,30,000.
Remember these things
- The plan comes before any money.
- Funds flow Centre, State, RC, then farmers.
- Use the per-hectare norms.
- Match the state's approval exactly.
A plan that matches the norms and the approval is sanctioned without a return. KrushiFlow validates these fields and submits farmer records to the portal in bulk.