NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT Maharashtra Regional Office, Pune

1. SCHEME FORDEVELOPMENT / STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT Maharashtra Regional Office, Pune

2. Reforms 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, J&K, Meghalaya, Delhi and UT of Puduchery

3. Objectives – 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

4. Objectives –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

5. Infrastructure 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 forcollection/assembling, grading, standardization and quality certification, labeling, packaging, value addition facilities (without changing the product form) • Infrastructure forDirect Marketing from producers to consumers /processing units / bulk buyers etc. • Infrastructure for supply of production inputs and need-based services to the farmers

6. Infrastructure Projects : Illustrative list contd- • Infrastructure forE-trading, market extension and market oriented production planning. • Mobile infrastructurefor 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.

7. Indicative List of Projects

8. Salient Features • All are eligible incl. NGOs, SHGs,Partnership/propreitorary firms/ Companies, Corporations, Cooperatives, Cooperative Marketing Federations. • Subsidy @ 25% max. Rs.50.00 lakh for others; Subsidy @ 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 @ 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

9. Pattern of assistance * 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 owner’s contribution

10. Salient 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 months+6 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

11. Salient 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 promoter’s 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.

12. Salient 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

13. Salient 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 – DMI’s letter dated 29.7.11. This instruction is applicable for even to those units sanctioned by banks prior to the date of issue of DMI’s 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

14. Documents 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

15. Documents 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

16. Documents 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

17. Documents to be submitted by bank after receipt of final subsidy Utilisation certificate as per format at Annexure - III of the operational guidelines

18. Progress (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

19. Thank You for Your Attention !!!