Govt sanctions Rs 642 cr for 4,712 Van Dhan Vikas Kendras: Oram

Union Minister Jual Oram informed that Rs 642.19 crore has been sanctioned for 4,712 Van Dhan Vikas Kendras (VDVKs) under the PMJVM and PM-JANMAN schemes, covering 12.94 lakh beneficiaries across 28 States/UTs, with 3,406 VDVKs operational.

Union Minister of Tribal Affairs Jual Oram on Thursday laid a statement on the Table of the House that the Ministry of Tribal Affairs provides financial support for the establishment of Van Dhan Vikas Kendras (VDVKs) through Tribal Cooperative Marketing Development Federation of India Limited (TRIFED) under the Pradhan Mantri Janjatiya Vikas Mission (PMJVM) and Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN). As of date, 4,712 VDVKs, covering 12.94 lakh beneficiaries, have been sanctioned in 28 States/UTs, with a total sanctioned amount of Rs 642.19 crore under both the schemes, out of which 3,406 VDVKs are operational.

VDVK Funding and Operations

A maximum amount of Rs 15 lakh is provided to State Governments to set up one VDVK for incurring the expenditure on raw material, training and capacity building, tool kits and machinery, mentoring charges, packaging and branding, transportation, storage etc. Revolving working capital is not provided to VDVKs under the schemes. However, under the Minimum Support Price (MSP) component of the scheme, a revolving fund is provided to State Implementing Agencies (SIAs) for undertaking Minor Forest Produce (MFP) procurement from tribal MFP gatherers at MSP, in case the market price falls below the MSP. During the Financial Year 2025-26, an amount of Rs 2.50 crore has been released to the State Implementing Agency (SIA) of Meghalaya for the procurement of MFP.

Fund Release Mechanism

Fund release for establishment of VDVKs is undertaken through the Treasury Single Account (TSA) system introduced by the Ministry of Finance. TSA accounts have been opened by almost all State Implementing Agencies, and funds are being transferred to the TSA accounts of the SIAs. TSA system provides the treasury and central bank total oversight over liquidity, eliminates idle cash parked in commercial banks, and ensures "just-in-time" release of funds for public expenditures.

Future Growth: From Kendras to Producer Enterprises

As mentioned in reply to part (a) above, revolving working capital is not provided to VDVKs under PMJVM / PM-JANMAN schemes. Operational VDVKs are encouraged to graduate into Van Dhan Producer Enterprises (VDPEs) for value addition, aggregation and market linkage based on their performance. One VDPE proposal from the State of Madhya Pradesh has been approved in principle for implementation.

Implementation Status in Chhattisgarh

A total of 148 VDVKs are operational in the state of Chhattisgarh under the PM-JANMAN and PMJVM Schemes.

Revolving funds amounting to Rs 153.66 crores have been released to Chhattisgarh SIA for procurement of MFPs since 2013-14, through which MFPs worth Rs 467 crore have been procured by the State till 2025-26. Chhattisgarh SIA has submitted the claim for reimbursement of losses under the MSP operations, which is under examination. No proposal for procurement of MFPs has been received from the State of Chhattisgarh during the current financial year.

Improving Last-Mile Fund Transfer

The matter has been discussed with the SIAs, and they have been advised to devise appropriate mechanisms for transferring funds directly to the bank accounts of VDVKs and ground-level primary procurement agencies. In some States, funds are already being transferred directly to the bank accounts of VDVKs. (ANI)

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