Punjab Retrieves ₹100 Cr of Lapsed Agricultural Sector Funds from 2017

The Punjab government has recovered an amount of ₹100 crore in Central funds that were unutilized during the previous years from 2017 to 2022. These funds were allocated under the Rashtriya Krishi Vikas Yojana (RKVY) and other schemes aimed at promoting agriculture and related sectors.

Most of these schemes operate on a 60:40 ratio, where both the Centre and the state contribute funds. However, due to the state government's failure to provide its share of 40% during the past years, these funds remained unused and lapsed.

The pending funds date back to 2017, when Capt Amarinder Singh assumed office as the Chief Minister of Punjab. Since the state government did not provide the required matching grants in previous years, these funds remained unutilized and were subject to recovery.

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The allocated funds consist of ₹58.26 crores for the sub-mission on agricultural mechanization (SMAM). This initiative provides funds and grants to farmers and agricultural organizations to purchase machinery.

Additionally, ₹25.86 crore has been allocated under the Rashtriya Krishi Vikas Yojana (RKVY), which focuses on developing infrastructure for pre and post-harvest activities, including inputs, storage, and marketing facilities.

Another ₹12 crore has been allocated for the Prampragat Krishi Vikas Yojana (PKVY), aimed at promoting traditional farming practices such as cultivating millets. The funds also include ₹7.38 crore for soil health management, ₹33 lakhs for the national food security mission, and ₹28 lakhs for promoting oilseeds cultivation.

According to an officer from the state agriculture department, these schemes were initially launched in the early 2000s with 100% grants provided by the central government. However, later on, it became mandatory for the states to contribute 40% of the funds.

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Gurvinder Singh, the director of agriculture, explained that the state government faced financial difficulties, resulting in the inability to disburse the state's share and the central grants, which ended up being unused.

He stated, “However, starting in 2022, we began claiming these funds as the current government agreed to contribute its portion. Looking ahead, we are optimistic about receiving a minimum of ₹340 crore next year. To secure this amount, the finance department has been tasked with arranging a matching grant. Furthermore, we have submitted a proposal to utilize ₹400 crores from the Centre's allocated funds for the agricultural sector in the following year.”

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