NEW AGRICULTURE MARKETING INFRASTRUCTURE SCHEME
MINISTRY OF AGRICULTURE AND FARMER’S WELFARE, GOVT. OF INDIA.
SCHEME implemented by Department of Agriculture, Co-operation and Farmer’s Welfare Through the Directorate of Marketing and Inspection (DMI).
Implementation of Agriculture Infrastructure Fund by Govt of India and liberalized the Grain Market are the two major factors that boost up the private entrepreneurship in Warehouse Sector. Integration of All Infrastructural activities such as Warehousing, Silo Project, Pack houses, Assaying units, Sorting & Grading units, Cold chains, Logistics facilities, Primary processing centers etc. has opened the door of investment in Warehousing/Storage infrastructure.
So if you are thinking for Start-up Warehouse business then you should be aware of various Govt Incentives eligible for such business.
There are two type of special financial assistance provided by Govt i.e
- Capital Subsidy (Centre/State Govt)
- Interest Subvention on Bank Loan.
Here we are going to discuss Capital Subsidy given by NABARD.
You can also read our blog on Interest subvention at https://kipfinancial.com/agriculture-infrastructure-fund/
If you are going to located your business in Haryana then you can go state warehouse subsidy also. To know more read at: https://kipfinancial.com/subsidy-for-warehouse-in-haryana/
Let start to explore NABARD Subsidy:
National Bank for Agriculture and Rural Development Bank (NABARD) is implementation bank for capital subsidy on warehouse throughout the India. It is also known as Refinancing Bank that gives the fund to other Bank for rural development.
Basic Features of Scheme:
- Infrastructure should be used for storage of Grain/oil seeds and for primary processing activities such as Sorting, Grading etc.
- Storage infrastructure like Godown including stand-alone silos for storage of food grains with necessary ancillary facilities like loading, unloading, bagging facility etc. are eligible for subsidy.
- Subsidy will be available on capital cost of the project including cost of allied facilities like boundary wall, internal road, internal drainage system, weighing, grading, packing, quality testing & certification, firefighting equipment etc.
- Permissible Capacity of Godown for Subsidy:
- 50 Mt to 5000 MT for Individual or Group of Promoters
- 50 Mt to 10000 MT for State Agencies
- Subsidy under this scheme is credit linked. Means to say there should be Bank finance on such project.
- Minimum Promoter Contribution will be 20% of Total Project Cost. It may vary from 20% to 50%.
- Minimum Term Loan (Including Subsidy) should be 50% of Total Project Cost. Loan Amount may vary from 50% to 80%.
- Subsidy Ceiling:
- For FPO/Woman/SC/ST 33% of Allowable Project Cost
- For Other 25% of Allowable Project Cost
- Subsidy Pattern:
50% Advance at the time of submission of Application subject to complying scheme guidelines.
50% Final Subsidy after inspection of Godown and recommend by Joint Inspection Committee.
- Time Line for Application for Subsidy: Within 18 Month from the date of first disbursement of loan installment.
For receiving timely update of Tender, Registered Yourself at: https://docs.google.com/forms/d/e/1FAIpQLScqGyhXKCN01Pdiw8-nQRHs7IxDDAMX_PRnTDfjVpEPo7l6og/viewform?usp=sf_link
To know more consult at:
Jitender Kumar (90171-51780)(email@example.com)
KIP Financial Consultancy Pvt. Ltd.
DSB – 38, KIP Complex, Red Square Market, Hisar – 125001 (HR)