It
is well known that the small farmers do not have the economic strength to
retain the produce with them till the market prices are favourable.
There has been a felt need in the country to provide the farming community with
facilities for scientific storage so that wastage and produce deterioration are
avoided and also to enable it to meet its credit requirement without being
compelled to sell the produce at a time when the prices are low. A
network of rural godowns will
enable small farmers to enhance their holding capacity in order to sell their
produce at remunerative prices and avoid distress sales. Accordingly, Grameen Bhandaran Yojana, a
Capital Investment Subsidy Scheme for Construction / Renovation of Rural Godowns was introduced in 2001-2002 and
extended upto 31.03.2007. The Scheme has now been approved for
implementation during the years 2007–12, with modifications in its operational
guidelines for new projects to be sanctioned after 26 /06 /2008. Accordingly,
revised operational guidelines of the scheme are applicable for new projects
sanctioned on or after 26 /06 /2008 to 31.03.2012.
The
main objectives of the scheme include creation of scientific storage capacity
with allied facilities in rural areas to meet the requirements of farmers for
storing farm produce, processed farm produce and agricultural inputs;
promotion of grading, standardization and quality control of agricultural
produce to improve their marketability; prevention of distress sale immediately
after harvest by providing the facility of pledge financing and marketing
credit; strengthen agricultural marketing infrastructure in the country
by paving the way for the introduction of a national system of warehouse
receipts in respect of agricultural commodities stored in such godownsand
to reverse the declining trend of investment in agriculture sector by
encouraging private and cooperative sectors to invest in the creation of
storage infrastructure in the country.
Eligible Organizations
i) The project for construction of rural godowns can be taken up by individuals,
farmers, Group of farmers/growers, Partnership/ Proprietary firms,
Non-Government Organizations (NGO’s), Self Help Groups (SHGs),
Companies, Corporations, Co-operatives, Local Bodies other than Municipal
Corporations, Federations,
Agricultural Produce Marketing Committees, Marketing Boards and Agro Processing
Corporations in the entire
country.
Assistance for renovation of rural godowns will,
however, be restricted to godowns constructed
by cooperatives only.
Location
ii) Under the scheme, the entrepreneur
will be free to construct godown at any
place, as per his/her commercial judgment except for the restriction that it would be outside
the limits of Municipal Corporation area. Ruralgodowns constructed
in the Food Parks promoted by the Ministry of Food Processing
Industries shall also be eligible under the scheme for assistance.
Size
iii)
Capacity of a godown shall be decided by an entrepreneur.
However, subsidy under the scheme shall be restricted to a minimum
capacity of 100 tonnes and
maximum capacity of 10,000 tonnes. No maximum ceiling on subsidy in the case
of projects of rural godowns of
Cooperatives assisted by NCDC.
iv)
Rural godowns of smaller size upto 50 tonnes capacity will also be eligible for
subsidy under the scheme as a special case based on viability analysis
depending on the topography/special requirement of the State/Region. In
hilly areas*, rural godowns of
smaller size upto 25 tonnes capacity
will also be eligible for subsidy. For this,
NABARD will issue
appropriate guidelines.
*where the project site is located at a height of more than
1000 meters above mean sea level.
Conditions for Scientific Storage
v) Godowns built under the scheme shall be
structurally sound on account of engineering considerations and functionally
suitable to store the agricultural produce. The general conditions for
scientific construction will be as follows:
a) The
construction of godown shall
be as per Central Public Works Department/State Public Works
Department specifications or any other standard
specifications laid down in this
behalf. The godown shall
be properly ventilated, shall have well fitted doors,
windows and ventilators and shall be
waterproof (control of moisture from floor, walls and roof etc.)
b) The godown structure
shall have protection from rodents.
c) The godown shall
have protection from birds (windows / ventilators with jali).
d) The openings of godown such
as doors, windows etc. shall be designed
in such a manner that the godown can be sealed for
effective fumigation etc.
e)
The godown complex shall have an easy approach
road, pucca internal roads, proper drainage,
arrangements for effective control against fire and theft and
also have arrangements for easy loading and unloading
of stocks.
vi)
The entrepreneur may obtain a license to
operate the godown,
if so required by the concerned State Government, under the State Warehousing
Act or any other relevant laws. All
Rural Godowns to be constructed under the Scheme in
future, should be confirming to the technical specifications relating to the
implementation of the Negotiable Warehouse Receipt System (NWRS). The rural godowns of 1000 tones capacity and more shall be considered as
eligible for assistance under the Scheme, only on giving an undertaking alongwith the application that they would be
implementing the Negotiable Warehouse Receipt System. DMI in consultation with the
Department of Food and Public Distribution and NABARD shall modify godown specifications to meet the
requirements of implementation of Negotiable Warehouse Receipt System and
NABARD shall ensure that these specifications are in-built in the eligibility
criteria for giving subsidy to the rural godowns of
any size under the Scheme.
Credit Linked Assistance
vii) Subsidy under the
scheme is linked to institutional credit
and will be available to only such projects as are
financed by Commercial Banks, Regional Rural Banks, State Cooperative Banks (SCBs), State Co-operative Agricultural and Rural
Development Bank (SCARDBs), Agricultural Development
Finance Companies (ADFCs), North Eastern
Development Finance Corporation(NEDFI), Urban Cooperative Banks etc. Loan to
the entrepreneurs from banks for the construction of godowns would
carry an adequate long-term repayment period.
viii)
Assistance under the scheme shall be available on capital cost of construction
of godown including the cost of allied
facilities like boundary wall, internal road, platform, internal drainage
system, weighing, grading, packaging, quality certification, warehousing
facilities which are
functionally required to operate the godown.
Pledge Loan Facility
ix) The farmers keeping their
produce in the godowns shall
be eligible to avail pledge loan on hypothecation of their produce. The terms
and conditions governing pledge loans viz. margin, rate of interest, period of
pledge, amount etc. will be as per the guidelines issued by RBI/NABARD and as
per normal banking practices followed by the financial institutions.
Training
x) A
general awareness programme on
the scheme for the farmers and a training programme for
the entrepreneurs for construction, maintenance and operation of rural godowns will be organized by the National
Institute for Agricultural Marketing, Jaipur (NIAM)
and other National/State level Institutions.
Implementation Period
xi)
Implementation of the scheme shall be continued beyond 31.03.2007 upto 31.03.2012.
xii) The
modified scheme will be applicable to all new projects for construction /
renovation of rural godowns in
respect of which loans are sanctioned on or after
26/06/2008 upto 31/3/2012.
Nodal Agency
xiii)
The scheme shall be implemented by the Directorate of Marketing and Inspection
(DMI), an Attached Office of Department of Agriculture & Cooperation.
A list of Regional/ Sub Offices of DMI is enclosed at Annexure-VI.
Target
xiv) Under
the Modified Scheme, creation of new 85 lakh tonnes and renovation of 5 lakh tonnes of rural storage
capacity is targeted.(Total 90 Lakh M.T.)
xv) The
sanction of projects in a State would be restricted to a maximum of 18 lakh tonnes (20%
of the total capacity of 90 lakh tonnes envisaged
during the XI Plan), but in specific circumstances the unused quota of a State
can be diverted to another State by a conscious decision taken by a Committee
to be constituted in the Ministry of Agriculture for this purpose.
xvi)
5 lakh tonnes would be reserved for small
farmers and 5 lakh tonnes for
cooperatives during the XI
Plan but a conscious decision for diverting this
reserved
quota to other categories can be taken by the Committee to be constituted in
the Ministry as stated above
Insurance
xvii) It will be
the responsibility of the owner of the godown to
have the insurance for the godown.
xviii) Rate of subsidy shall be:-
(a) 33.33% of the capital
cost of the project in case of projects located in North – Eastern States,
hilly areas and those belonging to Women Farmers/ their self help groups /
co-operatives and SC/ST
entrepreneurs & their self-help groups/ Co-operatives subject to a maximum ceiling on
subsidy of Rs.62.50 lakh. No
maximum ceiling on subsidy in the case of cooperatives assisted by NCDC;
(b) 25% of
the capital cost of the project to all categories of
farmers (Other than
Women Farmers), agriculture graduates, cooperatives and State/ Central
Warehousing Corporations subject to a maximum ceiling on subsidy of Rs.
46.87 lakh. No maximum ceiling on subsidy in
the case of cooperatives assisted by NCDC;
(c)
15% of the capital cost of the project to
all other categories of individuals, companies & corporations etc., subject
to a maximum ceiling on subsidy of
Rs. 28.12 lakh; and
d)
25% of the capital cost of the project for renovation of godowns of cooperatives with assistance from
NCDC.
xix) Capital cost of the project for the purpose of subsidy under the scheme shall be calculated
as follows:
a) For godowns up to 1000 tonnes capacity – Project cost as appraised by financing Bank or actual cost or Rs 2500/- per tonne of storage capacity,
whichever is
lower;
b) For godowns exceeding 1000 tonnes capacity – Project cost as appraised by Bank or
actual cost or Rs 1875/-
per tonne of storage capacity, whichever is
lower.
However, for godowns exceeding 10,000 tonnes capacity, the subsidy would be
restricted to that admissible for capacity of 10,000 tonnes only, subject
to the
relaxations made under para 3
(xviii) above for projects of the cooperatives;
c) For renovation of godowns by cooperatives with assistance from
NCDC - project cost as
appraised by Bank / NCDC or actual cost or Rs.625/-
per
tonne of storage capacity, whichever is
lower.
xx)
No beneficiary shall draw subsidy for the godown project
or any of its component from more than one source.
xxi) The
capacity of godown shall be calculated @ 0.4 M.T. per cu. mtr.
Release of Subsidy
xxii) Subsidy for the projects under the
scheme shall be released through NABARD for projects financed by Commercial,
Cooperative and Regional Rural Banks,
ADFCs, SCBs, SCARDBs,
NEDFI and scheduled PUCBs and
other institutions eligible for refinance from NABARD and through NCDC for
projects
financed by
NCDC or by Cooperative Banks in accordance with its eligibility guidelines.
Adjustment of subsidy in Borrower's Account
xxiii) The
subsidy released to the bank / NCDC for an individual project will be
kept in a separate borrower-wise account. The adjustment of subsidy
will be back ended. Accordingly, the full project cost including the subsidy
amount, but excluding the margin money contribution from the beneficiary, would
be disbursed as loan by the banks. The repayment schedule will be drawn on the
loan amount in such a way that the total subsidy amount is adjusted after full
bank loan component net of subsidy with interest is liquidated but not before 5
years from the date of disbursement of first instalment of
loan.
No interest chargeable on subsidy portion
xxiv) The subsidy admissible to the promoter
under the scheme will be kept in the Subsidy Reserve Fund Account
(Borrower-wise) in the books of the financing banks. No interest would be
charged on this by the Bank. In view of this, for purposes of charging
interest on the loan component, the subsidy amount should be excluded.
The balance lying to the credit of the subsidy reserve fund account will not
form part of demand and time liabilities for the purpose of
SLR/CRR.
A. Eligible
Financing Institutions
The eligible financing institutions under the scheme are:-
i)
Commercial Banks, Regional Rural Banks (RRBs), State
Cooperative Banks (SCBs), State Co-operative
Agricultural and Rural Development Banks (SCARDBs),
Agricultural Development Finance Companies (ADFCs),
Scheduled Urban Coop. Banks, North Eastern Development Finance Corporation
(NEDFI), and such other institutions eligible for refinance by NABARD.
ii) NCDC
and Cooperative Banks recognized by NCDC in accordance with its eligibility
guidelines.
B. Term Loan
i) Minimum 50% of the project cost (46.67% in
case of NE States, hilly areas, Women Farmers/ their self help groups /
co-operatives and SC/ST
entrepreneurs & their self-help groups/ Co-operatives ) is to be raised as term loan from the
financing banks. As the subsidy is back-ended, eligible amount of subsidy would
be initially allowed as term loan to the beneficiary. The repayment schedule
will be drawn on the total loan amount (including subsidy). The subsidy
amount will be adjusted after liquidation of bank loan (net of subsidy) but not
before 5 years from the date of disbursement of first instalment of term loan.
ii)
Depending upon the cash flow, the term loan would carry an adequate long term
repayment period, not less than 5 years including a grace period of one year.
iii) Rate of
interest to borrowers on term loan shall be as per RBI guidelines.
Interest will be chargeable from the date of the first disbursement of loan.
iv) The financial
institution may also provide working
capital separately for undertaking business by entrepreneurs.
v)
NCDC may follow its own norms for period of term loan, its
repayment, moratorium, interest rate etc.
