The Ministry of Tribal Affairs provided a status update on Van Dhan Vikas Kendra (VDVK) clusters, revealing that 4,712 VDVKs have been sanctioned across 28 States and Union Territories, covering 12.94 lakh beneficiaries. The total sanctioned amount under both Pradhan Mantri Janjatiya Vikas Mission (PMJVM) and Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) schemes stands at ₹642.19 crore, with 3,406 VDVKs currently operational.
Financial support is provided through TRIFED, with a maximum of ₹15.00 lakhs allocated per VDVK to State Governments for expenses including raw material, training, tool kits, machinery, mentoring, packaging, branding, transportation, and storage. Notably, revolving working capital is not provided to VDVKs under these schemes.
Under the Minimum Support Price (MSP) component, revolving fund is provided to State Implementing Agencies (SIAs) specifically for procuring Minor Forest Produce (MFP) from tribal gatherers when market prices fall below MSP. During Financial Year 2025–26, ₹2.50 crore was released to Meghalaya's SIA for MFP procurement.
Fund release mechanism utilizes the Treasury Single Account (TSA) system introduced by the Ministry of Finance, which provides oversight over liquidity and ensures just-in-time release of funds. Most State Implementing Agencies have opened TSA accounts.
Operational VDVKs are encouraged to graduate into Van Dhan Producer Enterprises (VDPEs) for enhanced value addition, aggregation, and market linkage based on performance. One VDPE proposal from Madhya Pradesh has been approved in principle.
State-specific data shows 148 VDVKs operational in Chhattisgarh under both schemes. Since 2013-14, revolving funds totaling ₹153.66 crore have been released to Chhattisgarh SIA, facilitating MFP procurement worth ₹467 crores until 2025-26. The state's claim for reimbursement of losses under MSP operations is under examination, and no procurement proposal has been received from Chhattisgarh during the current financial year.
The Ministry has advised SIAs to develop mechanisms for direct fund transfer to VDVK bank accounts and ground-level primary procurement agencies, noting that some states already implement this practice.