Objective

1. Guidelines for “Central Sector Scheme for Salvaging & Rearing of Male Buffalo Calves” GoI has introduced a Centrally Sponsored Scheme called ‘Salvaging & Rearing of Male Buffaloe Calves’

2. Objective • Salvaging male buffalo calves and rearing them economically for meat production and recovery of hides to enlarge raw material base for leather industry and improving availability of by-products - creation of employment opportunities in rural areas.

3. Who are eligible for assistance? • Individuals Entrepreneurs , Companies, partnership firms, corporations, cooperatives • Farmers,NGOs,SHGs, JLGs, • Preference- SC/ST ,Women (40% of individual units )

4. What are the benefits? • Two types of benefits : • Model – I: Individual units – 1to 9 calves – 100% Interest Subsidy on Short Term loan. • Model – II : Commercial units – 10 to 50 calves & Model – III: Industrial units- 1000 calves - Capital subsidy @25% of the outlay ( 33 1/3 % in NE States including Sikkim and hilly areas) • Margin Money - Minimum 10% for II & 25 % for III of the project cost-Scheme purely credit linked. • Balance portion of the project cost to be met from loan from banks at normal rates of interest

5. Eligible activities • Model I : Individual units – 1 to 9 male buffalo calves (Rs 6400/ calf) – farmers who own the calves: ST loan • Model II: Commercial units – 10 to 50 male buffalo calves (Rs 87000 per rearing of 10 calves) – Term Loan • Model III: Industrial units – 1000 male buffalo calves (Rs 83.45 lakh) – Term loan

6. How to get the assistance? • Eligible beneficiaries may identify specific activity • Bankable project to be prepared and submitted to the financing bank • ‘Model Projects’ prepared by NABARD may be referred for guidance ( attached to Circular) • Available in NABARD Website (www.nabard.org)

7. Contd…. • Prospective borrowers may contact Commercial Banks / RRB / Cooperative Banks with bankable project • Banks to appraise the project and get themselves satisfied about the viability before sanction. • Only eligible borrowers will be considered for assistance. Identification and selection of beneficiary is the responsibility of the bank. • Banks will obtain security for loan as prescribed by RBI from time to time.

8. Role of NABARD • Fund placed with NABARD • Banks submit claim for “Interest Subsidy” & “Capital Subsidy” to NABARD • Only one “State Level Sanctioning and Monitoring Committee (SLSMC) for all AH schemes. • Convene meetings of the committee / PSC and place the proposals received from banks for assistance for sanction. • Release of assistance will be subject to availability of funds from GoI.

9. Repayment & Unit Cost • Repayment period: depend on nature of activity- One year for Model I. 4 to 6years for Model II & III including one years grace. • Repayment schedule is drawn on the total amount of loan (including subsidy) in such a way that subsidy amount is adjusted after liquidation of bank loan. • Indicative Unit costs may be followed. Banks may sanction higher/ lower TFO based on local conditions. Subsidy will be calculated on indicative or actual cost, whichever is less.

10. How to claim • Model I: ST loan for one year sanctioned & disbursed by Bank . Beneficiary repay the loan along with interest. Bank in turn will claim 100% IS from NABARD in the prescribed format. • Model II: TL (TFO including subsidy) sanctioned by Bank. After the disbursement of first installment of the loan, Bank will apply to the NABARD for sanction and release of entire subsidy in the prescribed format.

11. How to claim • Model III: TL (TFO including subsidy) sanctioned by Bank. After the disbursement of first installment of the loan, Bank will apply for 50% Advance Subsidy. After completion of the unit, Bank will submit Final Subsidy claim to the NABARD along with JMC inspection report. JMC by Bank, NABARD & State AH Dept.

12. How to adjust subsidy • Capital subsidy – with minimum 3 years lock-in-period • Kept in “Subsidy Reserve Fund a/c (borrower-wise) in the books of financing bank. • Adjusted after liquidation of net bank loan ( excluding subsidy)

13. Time limit for completion of Project • For Model II & III: Maximum 12 months period from the date of disbursement of the 1st installment of loan. Further period of 3 months if reasons for delay are justified by the financial institution concerned.

14. PROMOTIONAL ASSISTANCE • Training of Farmers Entrepreneurs • 1 -2 days-100 % Grant up to Rs. 200 /person ,finalized by SLCMC by NGO /TE through NABARD. • Publicity :- By NABARD.

15. Monitoring • CMC- Joint Sect. (DADF)GoI, members from DADF , ,PLANNING COMM. , SEC. OF 3 SGs & 3 BANKS (Roatation )Min. RD , Enironment & Forest , SMM Min. , Deptt. Of Commerce & Inds. (Leather section) & NABARD. – HLY. • SLCMC – Qly. , Pre-Post verification by Bank • New Components- BY SECRETARY (DADF)GoI, SECRETARY EXPENDITURE & CHIEF ADVISOR (PL. COMM) • MONITORING – BY INDEPENDENT AGENCY.

16. Other issues …. • NABARD provides refinance to banks @ 90% on the bank-loan portion. • Rate of interest on refinance – as decided from time to time. • After crediting the subsidy in the subsidy reserve fund account of the borrower, a Utilization Certificate will be submitted by the bank to NABARD.

17. Progress Report …. • Subsidy claims amounting to Rs.11.37 lakh are pending with NABARD for want of funds from GoI

18. Thank You