A Fellow emu farmer and my friend, Mr. Vidyasankar of PAN Emu farm has sent this email to me on NABARD assistance on Emu Farming. I am posting here for other people to know of the assistance.
Please look at the underlined statements, which shows that you need only 10% of the total cost of the project. Remaining 90% can be given by Banks.
This information also available at: http://dahd.nic.in/guideddpaulfund.htm
OPERATIONAL GUIDELINES1. Background
CENTRAL SECTOR PLAN SCHEME
“DAIRY/POULTRY VENTURE CAPITAL FUND”
CENTRAL SECTOR PLAN SCHEME
“DAIRY/POULTRY VENTURE CAPITAL FUND”
Milk production in India is characterized by small rural producers scattered all over the country accounting for about 70 per cent of production. Although the organized sector, which produces western type products also has shown fast growth in the last three decades, it still accounts for only 15 per cent of the total milk produced in the country and a far larger proportion of milk continues to be marketed by the unorganized sector - comprising innumerable vendors, small processors, merchants, manufacturers and retailers of indigenous milk products like khoa, paneer, dahi and milk based sweets, etc. But the main problem in the unorganized sector is quality, which creates a serious threat to the health of consumers. Unsanitary local conditions, unhygienic containers, substandard processing equipment, poor handling methods, breaks in the cold chain etc contribute to poor quality and at times unsafe milk in the unorganized sector. To bring about structural changes in the unorganized sector, the measures like processing at village level, process and market pasteurized milk in a cost effective manner, quality up gradation and up gradation of traditional technology to handle commercial scale using modern equipment and management skills, it is proposed to introduce the dairy venture capital fund scheme under which assistance can be provided to the rural beneficiaries under a schematic proposal through bankable projects. These projects should include activities like private veterinary clinics and other support services needed for the growth of the sector.
With the various efforts made by the Government of India, ICAR, State Governments, Financial Institutions and private sector etc. poultry has developed well in the country. However, these efforts have resulted in growth only in a few states and a considerable segment in the poultry sector is still unorganized and is spread over in the form of small farms in far-flung areas that still need organized efforts to exploit this potential. The training and marketing also continue to be the weakest link in various poultry development programmes. Due to these limitations, poultry development, particularly, in the North Eastern States and Eastern states is still at a very primitive stage. In the absence of organized marketing and training programme the poultry development programme is not able to realize its full potential.
2.1 The main objective of the scheme is to create a venture capital fund for providing financial assistance to agricultural farmers/ individual entrepreneurs and groups of all sections of unorganized as well as organized sector for the following purposes:
Ø To promote setting up of small dairy farms for milk production
Ø To bring structural changes in the unorganized sector; processing and marketing of pasteurized milk at village level
Ø To bring about upgradation of quality and traditional technology to handle milk on a commercial scale
Ø To boost the unorganized poultry sector in states where development is in primitive state and also to give incentive and create infrastructure facilities for export of poultry products by organized sector from advanced states
Ø Establishment of poultry and breeding farms with low input technology and also for other poultry species
Ø Setting up of poultry feed plant/ laboratory
Ø Setting up of egg grading, packing and storing facility for promoting export
Ø Marketing of poultry products (specialized transport vehicles, cold storage etc)
3. Activities/Total Outlay/Area of operation covered under the scheme:
3.1 The funds will be distributed among dairy and poultry activities with an overall ratio of 2:1. The following activities will be funded under the scheme either individually or in combination.
(A) Components, which can be funded under dairy sector:
1. Establishment of small dairy farms – upto 10 animal units (Buffalo and crossbred cows) for milk production - Rs.3.00 lakhs - only in non-operation flood areas
2. Purchase of milking machines /milko testers / bulk milk cooling units (upto 2000 lit capacity)
- Rs.15.00 lakhs
3. Purchase of dairy processing equipment for manufacturing indigenous milk products - Rs.10 lakhs
4. Establishment of dairy product transportation facilities including cold chain – Rs.20.00 lakhs
5. Cold storage facilities for milk and milk products – Rs.25.00 lakhs
6. Establishment of private veterinary clinics – Rs.2.00 lakhs for mobile and Rs.1.50 lakhs for stationary clinics.
(B) Components, which can be funded under poultry sector:
1. Establishing poultry breeding farms with low input technology birds and also for ducks/turkey/guinea fowl/Japanese quail/emu/ostrich etc – Rs.30.00 lakhs
2. Establishment of feed godown, feed mill, feed analytical unit – Rs.16.00 lakhs
3. Marketing of poultry products (specialized transport vehicle, cool room storage facilities and retention shed for birds etc) - Rs.25.00 lakhs
4. Egg grading, packing and storage for export capacity - Rs.80.00 lakhs
5. Retail poultry dressing unit (upto 300 birds per day) - Rs.5.00 lakhs
6. Egg/broiler carts for sale of poultry products - Rs.0.10 lakhs
7. Central grower unit (12,500 birds per batch and 4 batches per year) -20.00 lakhs.
The Scheme can be implemented in any part of India. However, thrust needs be given in states like Uttaranchal, Maharashtra, U.P., Karnataka, Tamil Nadu,. Punjab, M.P, Orissa, A.P., Rajasthan, and North-Eastern states during 2004-05. For N.E. states an allocation of Rs.2.0 crores out of Rs.7.2 crores may be made while S.B.I, P.N.B., Indian bank and Canara Bank have promised to take lead in implementing this scheme, other commercial banks, cooperative banks and regional rural banks may also participate as per the field level demand.
4.1 The eligible beneficiaries shall include agricultural farmers/ individual entrepreneurs and groups of all sections of unorganized as well as organized sector. Preference may be given to traditional sweet makers (Halwais) to improve quality and hygiene of their products. In poultry, preference will be given to Pheriwalas, which will generate self-employment for urban poor. Veterinary Science Graduates alone will be considered for providing loan under the component of veterinary clinics.
4.2 The indications given in Paragraph 3 above only show the maximum outlay of the project to be included under the scheme. The State level Review and Disbursement Committee will ensure that maximum number of units receives the benefit under the scheme and the spread of the proposals approved is not limited to one area/activity.
5. Preparation of Projects
5.1 The borrowers selected by identified banks will be financed for specific activities under dairy/poultry sector and assisted under the scheme. The borrowers will prepare a bankable project and submit it to the banks for consideration under the scheme. The fund provided by DAH&D will be kept with NABARD and will act as a revolving fund from which the beneficiaries under the scheme will be given a interest free loan of 50% of the total cost of the project/proposal subject to the ceiling indicated above in Para 3. 10% of the total investment will be borne by the borrower as his margin and the bank will charge an interest rate applicable as per their norms on the balance loan amount of 40% of the project cost. This will help the borrower in reducing his interest burden. A list of schemes/components, which may qualify under this scheme, has already been described above in Para 3. The Banks will adhere to their own appraisal norms. However, the checklist to facilitate the compliance of the requirements of formulation/scrutiny/appraisal in respect of the scheme will be provided to the banks by NABARD.
6. Implementation period and funding pattern
6.1 The scheme will be implemented during the X Plan period. It is an umbrella project under which individual schemes will be sanctioned.
6.2 There is a provision of Rs.7.20 crores for the scheme during the current financial year
6.3 Scheme funding/ Pattern of Investment:
Entrepreneur’s Contribution: 10% of total outlay
Revolving Fund’s (GOI)share:50% of total outlay - no interest
Bank’s share: 40% of total outlay - interest as applicable to agriculture loans
7. Implementing Institutions
7.1 NABARD will be the Nodal Agency for implementation of the scheme. The scheme will be implemented by Commercial Banks, Cooperative Banks and RRBs.
8. Disbursement of Loan/Revolving Fund
8.1 The financing bank will disburse the loan within 7 days of the approval of the State Level Review and Disbursement Committee to the borrower to whom the loan has already been sanctioned. The Bank will not charge interest from the borrower on the amount received by it from the revolving fund.
9. Submission of proposals for release of interest free loan portion
9.1 The format in which the banks will claim the interest free loan amount from the revolving fund is enclosed at Annexure II. The Bank’s controlling office will submit the consolidated claim, activity wise to NABARD RO on a fortnightly basis.
10. Sanction of project and release of amount from Revolving Fund and Repayment of loan
10.1 For the first year, NABARD ROs will implement the scheme in the states identified and launch the scheme with the participation of the banks in all the districts. The bank will identify beneficiaries for the activities under the scheme.
10.2 The project will be sanctioned by the bank after proper scrutiny as per its laid down procedure and satisfying itself that the proposal is viable and meets the conditions prescribed under the scheme. The bank will submit its claim in the prescribed format to the Regional Office of NABARD after sanction of the loan proposal.
10.3 The State level Review and Disbursement committee headed by RO, Incharge of NABARD will have representatives of leading banks, other banks expected to participate in the scheme and the Animal Husbandry and Dairy Departments of the concerned State Govts and will meet at least once in a fortnight. Thus, the maximum time taken to clear a proposal will not be more than 15 days.
10.4 Fifty percent of the total outlay i.e. the interest free loan portion, out of revolving fund, will be released by NABARD to the bank after scrutiny of the claim. For this, the State level Review and Disbursement Committee (SLRDC) will accord approval for disbursement of loan on the basis of first come first serve basis and considering the merits of the case and authorise release of the amount by NABARD Head Office. The Committee will ensure the timely disbursement of loan preferably with in 7 days, once it is approved. Accordingly, NABARD HO will release the amount to the participating banks from the revolving fund. A ratio of 2:1 may be maintained between the loan released for dairy and poultry sectors respectively at the national level.
10.5 The bank will release the entire loan amount in instalments depending upon the progress of implementation of the project. The bank will affect recovery as per its prescriptions and will return pro rata of the recovery made to NABARD for crediting towards the revolving fund on an annual basis.
11. Repayment of Loan
11.1 Repayment period of loan will depend upon the cash flow and will be up to a maximum of 7 years including grace period of two years. Any deficiency in repayment in the project will be the responsibility of the bank as the borrowers are to be identified and selected by them.
12. Recovery/Passing on Revolving fund amount
12.1 The recovery of loan , when made will be divided between GOI’s and bank’s share of loan on pro rata basis.
13. Unit Cost
13.1 The maximum outlay of the project for individual borrowers has been given in Para 3. Unit cost will depend on the type of investment, size of operation, and type of equipment and infrastructure needs. The State level Review and Disbursement Committee at the Regional Office of NABARD will consider the above factors while deciding on the interest free loan amount to be released.
14. Refinance Assistance
14.1 NABARD would provide refinance to participating banks for 90% of the amount financed by the banks as term loan. Rate of interest on refinance will be decided by NABARD from time to time.
15. Security Norms
15.1 The security norms will be as prescribed by Reserve Bank of India from time to time.
16. Adjustment in Borrower’s Account
16.1 The bank can charge interest as per its norms on its portion of the loan account but should not charge any interest on amount drawn from the revolving fund. The bank will disburse the loan amount after it receives interest free portion from the revolving fund. It shall recover the loan amount as per instalments prescribed and pass on pro rata portion of the amount recovered back to NABARD on yearly basis. The loan amount will vary depending on the purpose for which the loan is given.
16.2 Regular repayments will make the borrower eligible for interest subsidy on the bank loan portion (to the extent of 40% of the outlay) upto 50% of the interest payable. The bank will charge the usual interest amount on this portion and for only the regular repayment; it will claim 50% of the amount interest charged from NABARD as subsidy. On receipt of the subsidy from NABARD the amount will be credited to the borrower’s account. This subsidy will be claimed from NABARD on yearly basis as per the format to be prescribed by NABARD.
17.1 The National level Joint Monitoring Committee will be headed by Joint Secretary, Dairy Development (Dept. of AH and Dairying, MOA, GOI) and will have representatives of NABARD, State Bank of India, UCO Bank, Punjab National Bank, Canara Bank and Indian Bank and Secretaries of AH and Dairy Development of four State Governments on rotational basis. This Committee will formulate guidelines for the implementation of the scheme and monitor the implementation of the scheme. NABARD will closely monitor the units financed and will conduct periodic inspections to verify the utilization and study the working of the scheme.
17.2 The State level Review and Disbursement Committee (SLRDC) will be headed by RO of NABARD and will include representative of banks expected to participate in the scheme and Animal Husbandry and Dairy Departments of the concerned State Govt. The Committee will authorise release of the interest free loans as well as the interest subsidy to banks. The Committee will meet on a fortnightly basis and send bank-wise, activity-wise and district-wise statement to GOI and NABARD HO on monthly basis. It will also help in popularising the scheme in the state. The RO, NABARD will also be the convener of the SLRDC.
17.3 The participating banks will conduct periodic inspections of the units and give a feed back to the Joint Monitoring Committee on a consolidated basis and to the State Level Review and Disbursement Committee at the State Level on any deviation / misutilisation of funds.
17.4 On completion of the project, the participating bank would submit a completion certificate to DAH & D through NABARD.
18. Role of various agencies
ü To administer the revolving fund and conduct fortnightly meeting of State Level Review and Disbursement Committee along with financing banks and Animal Husbandry and/or Dairy Department of the concerned State.
ü To scrutinize the claims of the bank and release the amount claimed
ü To monitor the scheme on a regular basis and provide a report to DAH&D, GOI on monthly basis.
ü To plan for improvement and expansion of the scheme for future, based on the feed back
ü To identify, receive and sanction the projects received from the borrowers for various purposes identified under the scheme and disburse the loan amount within 7 days of approval by State Level Review and Disbursement Committee.
ü To recover the loan amount as per repayment schedule and repay the amount recovered on the loan portion out of the revolving fund to NABARD on yearly basis.
ü To provide feed back on implementation of the scheme at State and national level.
18.3 Role of DAH&D
ü To convene the meetings of the Joint Monitoring Committee regularly and review the implementation with NABARD and financing banks. At least one meeting will be held in each quarter.
ü To plan and expand the scheme in future as per the feed back received from NABARD and financing Banks.
ü To undertake field visits of projects on sample basis and make funds available as and when needed
19.1 NABARD and the implementing banks will make efforts for wide publicity at the district and State levels through organisation of Workshops and through Farmers’ Clubs, Non-Governmental Organizations and rural branches of financing banks.
19.2 The members of the State Level Review & Disbursement Committee will also help in popularizing the scheme.
20. Other conditions :
* A signboard at the site "DAH&D Assisted Project" will also be exhibited.
* DAH&D reserves the right to modify, add, and delete any terms/conditions without assigning any reason.
* DAH&D's interpretation of various terms will be final.
* DAH&D reserves the right to recall any amount given under the scheme without assigning any reason thereof.
* Any other pre & post inspection would be undertaken by DAH&D representative to find out the physical & financial progress as and when required.