NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT GUJARAT REGIONAL OFFICE, AHMEDABAD

1. SCHEME FORDEVELOPMENT / STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION(AMIGS) State Level Awareness Programme on AMIGS 11 October 2013 I Session By A Parthava, Manager, NABARD NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT GUJARAT REGIONAL OFFICE, AHMEDABAD

2. Scheme for Development / Strengthening of Agricultural Marketing Infrastructure, Grading & Standardisation

3. Reforms linked investment scheme • Central sector scheme effective from 20.10.2004 • 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 to permit agricultural produce markets in private and cooperative sectors. • Scheme implemented in Gujarat from 13 August 2007 as per Gazette Notification

4. Reforms linked investment scheme Objectives • To provide additional agricultural marketing infrastructure • To promote agricultural marketing infrastructure by private and cooperative sector investments • To strengthen existing agricultural marketing infrastructure. • To promote direct marketing

5. Reforms linked investment scheme Objectives (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

6. Salient Features • Subsidy @ 25% max. Rs.50.00 lakh; 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 • 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 are also eligible

7. Salient Features : Pattern of assistance

8. 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 • Time limit for completion – 18 months from the date of disbursement of first instalment of loan by financing bank. However if reasons for delay are justified, 6 months grace period may be allowed by the financial institution

9. Salient Features Contd.. • For large projects with TFO of Rs.2.00 crore or more and requiring phasing, time limit for completion - 36 months • Subsidy through NABARD only for projects financed by institutions eligible for refinance. Eligible institutions include CBs, Coop. banks and RRBs, ADFCs, scheduled PCBs • Hilly areas – places with altitude of more than 1000 metres above MSL

10. Salient Features Contd.. • Tribal areas – areas notified/ declared as tribal areas by Central/State Govt. • 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 • No JMV for projects of TFO below Rs.10 lakh. Full and Final Subsidy could be released in one instalment.

11. Functional Infrastructure for assembling, drying, cleaning, grading, standardisation and quality certification, labeling, packaging, value addition facilities (without change of form) Market users common facilities like market yards, platforms for loading, assembling and auctioning of the produce, weighing etc. Eligible Marketing Infrastructure

12. Infrastructure for Direct marketing of agricultural commodities from producers to consumers/processing units/bulk buyers etc. Infrastructure for E-trading, market intelligence, extension etc. Infrastructure for post harvest operations (excluding transport vehicles) Infrastructure for supply of production inputs and need based services to the farmers. Eligible Marketing Infrastructure (contd.)

13. Assistance will be available to Individuals Group of farmers/growers/consumers Partnership/Proprietary firms Non-Government Organizations (NGOs) Self Help Groups (SHGs) Companies Corporations Autonomous Bodies of Government Cooperatives, Cooperative Marketing Federations APMCs & Marketing Boards Eligible persons/institutions

14. Land and Location Entrepreneur will be free to locate the marketing infrastructure project at any place of his choice. No restriction on location. Land cost will be restricted to a maximum of 10% of project cost in rural areas and 20% in municipal areas and it would form part of the owner’s contribution. Entrepreneur will not alienate the land during the period of the loan for any purpose other than the purpose for which the loan is sanctioned.

15. Credit Linkage Term Loan Minimum 50% / 46.67% Stipulation not applicable to State Agencies Repayment in 11 yrs with 2 yrs grace period Repayment schedule prescribed at the time of sanction of the project will not be allowed to be altered by the financing bank without the prior approval of Head office of DMI on the recommendation of NABARD

16. Credit Linkage (contd.) Term Loan Working capital could also be provided but only capital cost/term loan considered for subsidy Back-ended subsidy No Lock in period prescribed in the scheme

17. Mode of Release 50% - Advance Subsidy Remaining 50% - after JMV Agencies will adhere to their own appraisal norms Insurance of the unit - Responsibility of owner Signboard Other Modalities

18. Bank to sanction loan & release first installment Submit Annexure I and other documents to NABARD for advance subsidy. NABARD sanctions subsidy and send to GoI. On receipt of funds from GoI, subsidy released On release from NB, banks credit to SRF A/c Banks not to charge interest on subsidy amount from date of receipt of subsidy. Procedure for sanction & release of subsidy

19. Procedure for sanction & release of subsidy (contd) On completion, banks to submit request to NABARD for JMV alongwith completion documents. On receipt of letter from NABARD, coordinate for conduct of JMV. JMV team comprises of THREE members Official from DMI Official from NABARD Financing Banker – Branch Manager After JMV, banks to submit Annexure II alongwith original JMV Report for claiming final subsidy Last but not least, banks have to submit Utilization Certificate after full amount of subsidy is received and utilized.

20. The projects sanctioned under the Scheme in Gujarat include: Market yard Bulk Milk Coolers Cleaning, Sortex Machines Cotton Ginning units (not oil mills) Weigh Bridge Animal Cess Market Upgradation of agro commodities Frizzing of Fruits and Vegetables Type of Projects sanctioned in Gujarat

21. Progress of Scheme in Gujarat (31.03.12) • No. of projects sanctioned : 330 • TFO of projects : Rs.36419 lakh • Bank Loan : Rs.23255 lakh • Eligible Subsidy : Rs.7257 lakh • Advance Subsidy released : Rs.3391 lakh • Final Subsidy released : Rs.866 lakh • Total Subsidy released : Rs.4257 lakh

22. Thank You for Your Attention !!!