Capital Investment Subsidy Scheme for Commercial Production Units for Organic / Biological Inputs

Capital Investment Subsidy Scheme for Commercial Production Units for Organic / Biological Inputs

Scheme Overview

Sponsoring Authority                                 :   NABARD (National Bank for Agriculture and Rural Development)

Implementing Agency /Nodal Agency     :   NCOF (National Centre of Organic Farming)

Objectives:

1. To promote organic farming in the country by making available the organic inputs such as biofertilizers, Biopesticides and fruit & vegetable market waste compost and thereby better return for the produce.
2. To increase the agricultural productivity while maintaining the soil health and environmental safety.
3. To reduce the total dependence on chemical fertilizers and pesticides by increasing the availability and improving the quality of biofertilizers, biopesticides and composts in the country.
4. To convert the organic waste in to plant nutrient resources.
5. To prevent pollution and environment degradation by proper conversion and utilization of organic waste.

Eligible Organizations:

Biofertilizers and Biopesticides production Unit:

1. Individuals
2. Group of farmers/growers
3. Proprietary and
4. Partnership firms
5. Co-operatives
6. Fertilizer industry
7. Companies
8. Corporations
9. NGOs

Fruit & Vegetable Waste Compost Unit:

1. APMCs
2. Municipalities
3. NGOs and Private
4. Entrepreneurs.

Expansion/Renovation –  New/Existing Units engaged in the production are also eligible under the scheme.

Nature of Subsidy  :  Credit linked and back-ended capital investment subsidy.

Quantum of Benefit :

• ➤  Biofertilizers-Biopesticides unit
• –  25% of Total project cost (or) Rs 40 lakh per unit, whichever is less.

• ➤  Fruit & Vegetable Market Waste Compost Unit
• –  33% of Total project cost(or) Rs 60 lakh per unit, whichever is less.

The subsidy for expansion/renovation will be same as above.

Pattern of Assistance:

Biofertilizer-Biopesticide production unit  –

• Owner's contribution     25-33%
• Subsidy from Government of India subject to the maximum ceiling 25%
• Term Loan     42-50%
• Total     100%

For Fruits and Vegetable Market Waste compost unit  –

• Owner's contribution    25-33%
• Subsidy from Government of India subject to the maximum ceiling 25%
• Term Loan     42-50%
• Total     100%

Eligible Financing Institutions:

1. Commercial Banks
2. Regional Rural Banks (RRBs)
3. State Cooperative Banks (SCBs)
4. State Co-operative Agricultural and Rural Development Bank (SCARDBs)
5. Scheduled Primary Urban Cooperative Banks (PUCBs)
6. Agricultural Development Finance Companies (ADFCs)
7. North Eastern Development Finance Corporation (NEDFI) and such other institutions which will be eligible for refinance from NABARD.
8. Cooperatives where they seek loan from NCDC.

Project cost : The project cost will depend upon the capacity, technology, architects, invoice prices of the machines etc. subject to norms of appraisal of financing banks and NABARD.

Project cost includes:

1. Land purchased
2. Civil Works
3. Plant & Machinery
4. Scientific Instruments
5. Equipment’s etc.

Only land purchased (purchase value) by the enterprise will be considered, only that portion of the value on which project is implemented will be considered

Release of Grant:

• 1^st Instalment - 50% (Advance subsidy) of the approved grant
• 2^nd Instalment - 50% of the approved grant

Repayment period :  Generally, up to 10 years under both the Schemes.

Time limit for completion  :  A time limit of maximum 15 months is prescribed for completion of the project from the date of sanction by bank.

Insurance  :  Assets created shall be insured by the entrepreneur till the repayment of loan.