Title: The Project Management Office
1SCHEME FORDEVELOPMENT / STRENGTHENING OF
AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING
AND STANDARDIZATION
NATIONAL BANK FOR AGRICULTURE RURAL
DEVELOPMENT Maharashtra Regional Office, Pune
2Reforms linked investment scheme
- Central sector scheme effective from 20.10.2004
continues during 2013-14 - Scheme guidelines revised w.e.f 26.06.2008
- Scheme is Reform Linked. Applicable only in
States/Union Territories, where APMC Act is
amended - Amended Act allows Direct Marketing and
Contract Farming and permit setting up of
agricultural produce markets in private and
cooperative sectors. - APMC Act amended in 24 States 4 UTs. APMC Act
yet to be amended in Uttar Pradesh, Haryana, West
Bengal, JK, Meghalaya, Delhi and UT of Puduchery
3Objectives AMIGS Scheme
- To encourage rapid development of agriculture and
allied sectors including dairy, meat, fisheries
and minor forest produce. - To provide additional agricultural marketing
infrastructure - To promote competitive alternative agricultural
marketing infrastructure by private and
cooperative sector investments - To strengthen existing agricultural marketing
infrastructure. - To promote direct marketing
4Objectives AMIGS Scheme-Contd.
- To provide infrastructure facilities for grading,
standardization and quality certification of
agricultural produce - To promote pledge financing and marketing,
credit, introduction of negotiable warehousing
receipt system and promotion of forward and
future markets - To promote direct integration of processing units
with producers
5Infrastructure Projects Illustrative list
- Market user common facilities in the project area
like market yards, platforms for
loading/unloading, assembling and auctioning of
the produce, weighing and mechanical handling
equipments, etc. - Functional Infrastructure for collection/assemblin
g, grading, standardization and quality
certification, labeling, packaging, value
addition facilities (without changing the product
form) - Infrastructure for Direct Marketing from
producers to consumers /processing units / bulk
buyers etc. - Infrastructure for supply of production inputs
and need-based services to the farmers
6Infrastructure Projects Illustrative list contd-
- Infrastructure for E-trading, market extension
and market oriented production planning. - Mobile infrastructure for post harvest
operations viz. grading, packaging, quality
testing etc., - Excludes transport equipment. However reefer vans
or any other refrigerated vans used for
transporting agricultural produce, which are
essential for cold chains are allowed.
7Indicative List of Projects
8Salient Features
- All are eligible incl. NGOs, SHGs,Partnership/prop
reitorary firms/ Companies, Corporations,
Cooperatives, Cooperative Marketing Federations. - Subsidy _at_ 25 max. Rs.50.00 lakh for others
Subsidy _at_ 33.33 max. Rs.60.00 lakh for NE
States, Hilly and Tribal areas, States of
Uttarakhand, Himachal Pradesh and Jammu
Kashmir, SC/ST beneficiaries and their
co-operatives - Local bodies, Autonomous bodies of the Govt,
Agricultural Produce Market Committees (APMCs)
Marketing Boards in the country. - Subsidy _at_ 25 or 33.33 (as per eligibility) with
no upper ceiling -for State Govt. agencies - Credit linkage is optional for projects by State
agencies - Marketing Infrastructure projects sanctioned to
State Govts. under RIDF and Projects co-financed
by NABARD are also eligible
9Pattern of assistance
Source of finance Other than NE States, States of Uttarakhand, Himachal Pradesh, JK, hilly and tribal areas /SC ST entrepreneurs and their cooperatives NE States, States of Uttarakhand, Himachal Pradesh, JK, hilly and tribal areas/SCST entrepreneurs and their cooperatives
Subsidy from Central Government 25 33.33
Institutional Loan from Banks Minimum 50 Minimum 46.67
Owners contribution Rest of the project cost Rest of the project cost
Hilly area is a place at an altitude of more
than 1,000 metres above MSL Tribal areas are
areas notified/declared as tribal area by the
Central/ concerned State Government Cost of
land not exceeding 10 in rural areas and 20 in
municipal areas of the project cost can form part
of the owners contribution
10Salient Features Contd..
- Term loan min.50 of TFO (includes subsidy
component) - Term loan - 46.67 of TFO in case of NE states,
hilly and tribal areas and for entrepreneurs
belonging to SC/ST and their cooperatives - Repayment period depending on cash flow. Can be
upto 11 years (incl. two years grace period). - Time limit for completion 18 months6 months
grace - For large projects with TFO of Rs.2.00 crore or
more, time limit for completion - 36 months - No lock in period (so far)
- No Joint Inspection visit for projects of TFO
below Rs.10 lakh. Subsidy could be released in
one instalment on project completion
11Salient Features Contd..
- Subsidy through NABARD only for projects
financed by institutions eligible for refinance - Projects on purchase of combine harvesters are
eligible for subsidy only in 7 states, viz.,
Odisha, Rajasthan, Chattisgarh, Kerala,
Karnataka, Maharashtra and Gujarat, w.e.f
30.01.08 - Subsidy for such projects should not exceed 20
of the total projects sanctioned under AMIGS
scheme in the State - Land cost upto 10 of project cost in rural
areas and upto 20 in urban areas could be
treated as promoters margin - Hilly areas places with altitude of more than
1000 metres above Main Sea Level - Tribal areas areas notified/ declared as tribal
areas by Central/State Govt.
12Salient Features Contd..
- Any activity pertaining to Post harvest
management providing direct service delivery to
farmers and involving no product form change is
eligible for subsidy. - In addition to compulsory direct service
delivery, the projects could also be utilised for
self purpose during lean period - Projects providing indirect service delivery to
the farmers are not eligible. Cotton pressing and
bailing units not providing direct service
delivery to farmers, are not eligible
13Salient Features Contd..
- Clarifications received from DMI,HO during
2011-12- - The projects whose construction has started/units
are installed before sanction of loan are not to
be considered for subsidy under AMIGS scheme
DMIs letter dated 29.7.11. This instruction is
applicable for even to those units sanctioned by
banks prior to the date of issue of DMIs letter.
- If the project is completed with in the
stipulated period, the subsidy is payable to the
entrepreneur ( even after subsidy is claimed
after a period of 3 to 4 years after disbursement
of first installement of loan) - In case of projects promoted by SC/ST persons in
the capacity of sole proprietorship, partnership
firms , groups etc. would be eligible for 33.33
subsidy, provided all members belong to SC/ST - Projects under AMIGS should not have godown
component of more than 50 of TFO. If more, it
may be covered under RG scheme provided the
project meet the guidelines of RG scheme.
Effective date of stipulation of this instruction
is 11 August 2011. - Subsidy/advance subsidy released to beneficiary
has to be refunded if the loan account becomes
NPA - Joint Inspection Committee visits to the units
shall be carried out within one month of receipt
of information regarding completion of the project
14Documents to be submitted by bank for Advance
subsidy claim
- Advance Subsidy Claim ( Annexure I) through
Controling office of Bank - Project report with activity-wise details of
costs, TFO, Margin and Bank loan - Loan Sanction letter issued by Financing Bank
- Documentary proof for category (SC/ST and their
cooperatives) - Affidavit from the beneficiary
- Copy of relevant approvals/NOC etc along with
approved plan - Proof of direct service by Financing bank
- Declaration from the bank that construction has
started after issue of bank loan
15Documents to be submitted by bank for JIC visit
- Request letter from bank for JIC visit along with
following documents - Completion Certificate duly signed by promoter
verified by qualified/approved engineer/architect
and countersigned by Branch Manager of the
financing bank. - Certificate issued by Chartered Accountant
certifying the actual cost involved in completion
of the project
16Documents to be submitted by bank for final
subsidy claim
- Final Subsidy Claim ( Annexure II) through
Controlling office of Bank - Copy of JIC report as per format (Annexure VI)
duly signed by officials of NABARD,DMI and Bank - Compliance report from bank on observations, if
any, made by JIC team - Certificate on actual cost of construction of the
project and itemwise amounts duly certified by
Chartered Accountant
17Documents to be submitted by bank after receipt
of final subsidy
Utilisation certificate as per format at Annexure
- III of the operational guidelines
18Progress (30 June 2012)
- State/ROs participated 14
- Nos of Schemes 5529
- TFO (Rs. Crore) 4213.18
- Bank Loan (Rs. Crore) 2816.05
- Subsidy released (Rs. Crore) 467.22
19Thank You for Your Attention !!!