CAPITAL INVESTMENT SUBSIDY SCHEME FOR

CONSTRUCTION/ RENOVATION OF RURAL GODOWNS

25 February 2012

NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT

Regional Office, PATNA

Committed to rural prosperity

Grameen Bhandaran Yojana

Scheme effective from 01.04.2001; continues during XI FYP Scheme guidelines revised w.e.f 26.06.2008 To promote private and cooperative sector investment in
creating storage infrastructure in rural areas for raw and processed farm produce and agricultural inputs

To provide facility for pledge financing and marketing credit

Strengthen agricultural marketing infrastructure through
introduction of National System of Warehouse receipts Warehousing (Development & Regulation Act).

Committed to rural prosperity

Grameen Bhandaran Yojana Salient Features

i.

Godowns to be constructed outside Municipal corporation area eligible

ii. Godowns of capacity 100 MT to 10000 MT will be

iii. For godowns beyond 10000 MT, subsidy would be

limited to 10000MT
iv. Small size godowns upto 50 MT to be considered as

special case based on viability analysis topographical requirement of the area

and

Committed to rural prosperity

Grameen Bhandaran Yojana Salient Features contd..

i. Should be structurally sound with ventilation and water proofing

ii. Protection from rodents, birds, etc

iii. Should have easy approach, internal roads, drainage, etc iv. Technical specifications relating to NWRS are yet to be finalised by GoI v. Sanction in any state cannot exceed 20% (18 Lakh MT) of total capacity targeted for XI FYP (90 lakh MT)

Committed to rural prosperity

Documents to be submitted by bank along with the Advance subsidy claim

1. Project report.

2.
3. 4. 5. 6.

Land document.
Loan sanction letter. Brief coverage on technical feasibility and financial viability. Proof of category. Affidavit of the beneficiary.

Committed to rural prosperity

Documents to be submitted by bank along with the final subsidy claim

1. Copy of JIC Report.

2.
3.

Compliance report from bank, if any.

Completion certificate signed by promoter and verified by JIC.

4.

Proof of category.

Committed to rural prosperity

Grameen Bhandaran Yojana Salient Features contd..

Women farmers, SC/ST entrepreuners and their SHGs and cooperatives : 33.33% (Max. ceiling : Rs.62.50 lakh) All categories of farmers, agrl. graduates, cooperatives, CWC and SWC : 25% (Max. ceiling : Rs.46.87 lakh)

All categories of individuals, companies, corporations, etc. : 15%

(Max ceiling : Rs.28.12 lakh) Project cost for godowns <1000 MT : Rs.2500/MT Project cost for godowns >1000 MT : Rs.1875/MT Project cost for renovation of godowns (by NCDC) : Rs.625/MT
Committed to rural prosperity

Grameen Bhandaran Yojana Salient Features contd..

Min. Bank loan : 46.67% and margin 20% in case of subsidy rate of 33.33% Min. Bank loan : 50% and margin 25% in case of subsidy rate of 25% Cost of allied structures that are functionally required for godown operation could be included Min. bank loan to exclude subsidy component Repayment period 5 years incl. 1 year grace Max. period for completion of project 15 months+6months grace Lock in period 5 years

Committed to rural prosperity

Grameen Bhandaran Yojana Salient Features contd..

Pledge loan available (as per RBI guidelines) upto 75% of value of stored produce from banks

Loans for Rural Godowns are classified as Indirect finance to Agriculture under priority sector
For farmer category, major source of income should be from agriculture Documentary proof should be taken IT returns or affidavit More than one godown promoted by the same borrower is eligible for subsidy. But, in each location the capacity eligible for subsidy is restricted to 10000 MT Godowns should be located in different survey nos. and have all required amenities
Committed to rural prosperity

Grameen Bhandaran Yojana Salient Features contd..

For partnership/co-ownership to be treated under category of women farmers, 50% and more ownership of women members is required

Proper documentary proof should be obtained for categories eligible for higher rate of subsidy

Joint Monitoring visits should be done and signed by all parties on the spot; corrections should be authenticated by all the members
Committed to rural prosperity

Grameen Bhandaran Yojana Progress (31.3.11)

State/ROs participated Nos of Schemes Capacity Created TFO Bak Loan Subsidy released : 25 : 19715 : 244.37 lakh MT : Rs.4349.37 crore : Rs.2915.91 crore : Rs.649.83 crore

Committed to rural prosperity

Grameen Bhandaran Yojana Likely Changes

Scheme likely to get revised awaiting GoI instructions

Max. capacity ceiling to be raised to 50000 MT Unit cost likely to increase by 40 % to 60 % Subsidy ceiling to increase to Rs.3.75 crore to Rs.6 crore

Self financed projects to become eligible in NE areas (max. 10000 MT)

Committed to rural prosperity

Thank You for Your Attention !!!

Committed to rural prosperity