CAPITAL INVESTMENT SUBSIDY SCHEME FOR CONSTRUCTION/ RENOVATION OF RURAL GODOWNS

1. CAPITAL INVESTMENT SUBSIDY SCHEME FOR CONSTRUCTION/ RENOVATION OF RURAL GODOWNS NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT MAHARASHRTRA REGIONAL OFFICE, PUNE

2. Grameen Bhandaran Yojana – Salient Features • Godowns to be constructed outside Municipal corporation area • Godowns of capacity 100 MT-10000 MT will be eligible (Revision : Max capacity - 30000 MT/25000 MT for NER/Sikkim/Hilly areas, w.e.f. 20.10.11) • For godowns beyond 30000/25000 MT, subsidy would be limited to 30000/25000 MT • Small size godowns upto 50 MT to be considered as special case based on viability analysis and topographical requirement of the area • In hilly areas (project site located at height of more than 1000metres above MSL), upto 25 MT also allowed Revision in Normative cost

3. Grameen Bhandaran Yojana – Salient Features contd.. • Should be structurally sound with ventilation and water proofing • Protection from rodents, birds, etc • Should have easy approach, internal roads, drainage, etc • Technical specifications relating to NWRS are yet to be finalised by GoI • XI Plan stipulation : Sanction in any state cannot exceed 20% (18 Lakh MT) of total capacity targeted for XI FYP (90 lakh MT) • Under Annual extension for 2012-13 – No capacity cap for states has been indicated

4. Documents to be submitted by bank for Advance subsidy claim • Project report • Land document • Loan sanction letter • Brief coverage on technical feasibility and financial viability • Proof of category • Affidavit of the beneficiary Documents

5. Documents to be submitted by bank for JMC visit Request letter from bank for JMI visit along with following documents : • Completion Certificate duly signed by promoter verified by licensed engineer and countersigned by Branch Manager of the financing branch. The registered /licensed engineer may also certify that the Godown has been constructed as per technical parameters and is fit for scientific storage. • Copy of the licence/ permission obtained for commissioning the godown from competent authority (if applicable) • Copy of the Insurance Policy in respect of the godown

6. Documents to be submitted by bank for final subsidy claim • Copy of JIC Report. • Compliance report from bank, if any. • Completion certificate signed by promoter and verified by JIC. • Proof of category. Documents

7. Documents to be submitted by bank after receipt of final subsidy • Utilisation certificate as per format at Annexure - III of the operational guidelines • The basic role of NABARD is over after receipt of the utilization certificate

8. Grameen Bhandaran Yojana – Salient Features contd.. • Project cost for godowns <1000 MT : Rs.2500/MT (Rs.3500/MT) • Project cost for godowns >1000 MT : Rs.1875/MT(Rs.3000/MT) • Project cost for NE/Hilly region :Rs.4000/MT (New category)

9. Grameen Bhandaran Yojana – Maximum Subsidy

10. Grameen Bhandaran Yojana – Salient Features contd.. • Cost of allied structures that are functionally required for godown operation could be included • Subsidy to be kept in reserve fund account – borrower-wise • Subsidy to be adjusted back – ended • Repayment period – depending on cash flow and should be adequately long, with a grace period of 1 year • Max. period for completion of project – 15 months + 6months grace • Lock in period – 5 years

11. 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 30000 MT • Godowns should be located in different survey nos. and have all required amenities

12. 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

13. Grameen Bhandaran Yojana – Progress (30 June 2012) • State/ROs participated : 26 • Nos of Schemes : 23068 • Capacity Created : 281.73 lakh MT • TFO : Rs.5359.88 crore • Bank Loan : Rs.3625.40 crore • Subsidy released : Rs.831.43 crore MP, AP and Maaharashtra ROs have exceeded the target of 18 lakh MT i.e. 20% of total target under XI FYP.

14. Grameen Bhandaran Yojana – Recent Instructions • Guidance Note to All ROs (Compilation) : IOM No.853, dated 29.6.11 • Addendum : IOM No.265, dated 23.4.12 • Beneficiary not eligible for subsidy from more than one source for different components of Rural Godown project • For corporates – Completion certificate duly signed by the Chief Engineer could be accepted • Upwardly revision in the normative cost/ceiling on subsidy • Cases for which subsidy is recalled/refunded need not be considered again • Central/State Govt. Agencies supported under RIDF are eligible • JMC visit to be taken up within 1month from the date of receipt of information regarding completion of projects

15. Thank You for Your Attention !!!