REVISED CENTRAL SECTOR SCHEME: ESTABLISHMENT OF AGRI-CLINICS AND AGRI-BUSINESS CENTRES (ACABC)

ZONAL WORKSHOP ON GSSPune, 18 July 2012

Dr. P Sahoo, AGM, HO, Mumbai

NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT

HEAD OFFICE, MUMBAI

OBJECTIVES

• TO PROVIDE EXTENSION AND OTHER SERVICES TO THE

FARMERS

• TO SUPPORT AGRICULTURAL DEVELOPMENT

• TO CREATE GAINFUL SELF-EMPLOYMENT OPPORTUNITEIS

CONCEPT / DEFINITION

• AGRI-CLINICS : TO PROVIDE EXPERT ADVICE &

SERVICES WHICH WOULD ENHANCE PRODUCTIVITY AND ENSURE INCREASED INCOME TO FARMERS

• AGRI-BUSINESS CENTRES : COMMERCIAL AGRI-VENTURES FOR INCOME GENERATION & ENTREPRENEURSHIP DEVELOPMENT

ELIGIBLE PERSONS GRADUATES IN AGRICULTURE & ALLIED

SUBJECTS ALLIED SUBJECTS

DIPLOMA HOLDERS (WITH 50% MARKS)/PG DIPLOMA HOLDERS IN AGRI AND ALLIED SUBJECTS FROM SAU, STATE AGRI. & ALLIED DEPTS. AND STATE DEPT OF TECHNICAL EDUCATION.

BIOLOGICAL SCIENCE GRADUATES WITH PG IN AGRI AND ALLIED SUBJECTS.

DEGREE HOLDERS IN COURSES RECOGNISED BY UGC HAVING MORE THAN 60% OF THE CONTENT IN AGRI. & ALLIED SUBJECTS.

ELIGIBLE PERSONS CONTD….

DIPLOMA/PG DIPLOMA HOLDERS IN COURSES WITH >60% OF COURSE CONTENT IN AGRI & ALLIED SUBJECTS, AFTER B.SC. IN BIOLOGICAL SCIENCES FROM RECOGNISED COLLEGES AND UNIVERSITIES

AGRICULTURE RELATED COURSES AT INTERMEDIATE (+2) LEVEL WITH AT LEAST 55% MARKS

DIPLOMA IN AGRICULTURE & ALLIED SUBJECTS OFFERED BY OTHER AGENCIES ARE ALSO ELIGIBLE SUBJECT TO APPROVAL OF DEPARTMENT OF AGRICULTURE AND COOPERATION, GOI ON THE RECOMMENDATION OF THE STATE GOVERNMENT

CANDIDATES SHOULD BE TRAINED

AREA OF OPERATION

• BOTH RURAL AND URBAN AREAS

• GEOGRAPHICAL LOCATION :

NO RESTRICTION

FULL FINANCIAL SUPPORT FOR

TRAINING/HAND HOLDING (MANAGE)

CREDIT (BANKS)

CREDIT– LINKED BACK ENDED SUBSIDY THROUGH NABARD

Eligible Financial Institutions

• CBs

• RRBs

• SCBs

• SCARDBs

• UCBs (Scheduled)

PROJECT COST INDIVIDUAL CEILING : ` 20 LAKH (`

25 LAKH IN CASE OF EXTREMELY SUCCESSFUL PROJECTS)

GROUP CEILING : ` 100 LAKH (AT LEAST 5 TRAINED PERSONS OUT OF WHICH ONE COULD BE FROM MANAGEMENT BACKGROUND)

GROUP COULD BE 2 OR MORE TRAINED PERSONS

PERSON WITH MANAGEMENT BACKGROUND ONLY TO BE INCLUDED IN GROUP OF 5 OR MORE

PROJECT COST CONTD….

• COMPUTER /PRINTER/BROADBAND CONNECTION (1 MBPS ATLEAST) – AN INTEGRAL PART OF TFO

• CREDIT SANCTIONED BY BANK COULD BE HIGHER DEPENDING ON VIABILITY/ FEASIBILITY

• AT LEAST 10% OF THE PROJECT COST SHOULD BE IN CAPITAL FORM

• INSURANCE COULD BE A PART OF TFO

EXTREMELY SUCCESSFUL PROJECTS

PROJECT COST LIMIT IS EXTENDED BY ` 5 LAKH I.E. ` 20 LAKH + ` 5 LAKH = ` 25 LAKH)

TO BE APPROVED BY EMPOWERED STEERING COMMITTEE USING ABOVE CRITERIA

BASED ON DEFINED CRITERIA AND SCORING FOR THE SAME

TERM LOAN SHOULD BE COMPOSITE (FIXED CAPITAL + WC FOR 1

OPERATING CYCLE) REPAYMENT SCHEDULE IS TO BE

DRAWN ON THE TOTAL COMPOSITE LOAN INCLUDING SUBSIDY

REPAYMENT PERIOD : 5-10 YEARS DEPENDING ON ACTIVITY

MAX GRACE PERIOD : 2 YEARS ROI ON LOAN : RBI

GUIDELINES/POLICY OF THE BANK LOCK-IN PERIOD : 3 YEARS

MARGIN MONEY

AS PER RBI GUIDELINES

NO MARGIN FOR LOAN UPTO ` 5 LAKH

50% OF THE MARGIN MONEY AS SOFT LOAN FROM NABARD

SECURITY

AS PER RBI GUIDELINES

LOANS UP TO ` 5 LAKH CAN BE SECURED AGAINST HYPOTHECATION OF ASSETS CREATED

CREDIT LINKED COMPOSITE SUBSIDY

44% FOR WOMEN, SC/ST AND ALL CATEGORIES OF BORROWERS FROM NER, HILLY STATES

36% FOR ALL OTHERS RELEASED UPFRONT IN ONE INSTALMENT BY NABARD TO BANKS AFTER SANCTION OF LOAN

ALL CANDIDATES TRAINED UNDER THE SCHEME SHALL BE ELIGIBLE FOR SUBSIDY IF LOAN IS SANCTIONED ON OR AFTER 9.7.2006

CREDIT LINKED COMPOSITE SUBSIDY

BANK TO KEEP SUBSIDY IN ‘SUBSIDY RESERVE FUND ACCOUNT (BORROWER WISE)’

BANKS NOT TO CHARGE INTEREST ON SUBSIDY PORTION

BALANCE IN THE ‘SUBSIDY RESERVE FUND ACCOUNT’ WILL NOT FORM PART OF DTL

CREDIT LINKED COMPOSITE SUBSIDY

REVISED TFO CEILING APPLICABLE TO CASES SANCTIONED AFTER 4.8.10

CASES SANCTIONED BUT NOT CLOSED SHALL BE CONVERTED TO COMPOSITE SUBSIDY- DIFFERENTIAL AMOUNT BETWEEN PAYBLE AND PAID ASSISTANCE TO BE RELEASED IN ONE LUMPSUM ON OBTAINING A CLAIM FROM THE BANK

CREDIT LINKED COMPOSITE SUBSIDY

BENEFIT OF SUBSIDY CAN BE EXTENDED TWICE TO A SINGLE BORROWER WITHIN THE OVERALL CEILING

WHEN 2 INDEPENDENT PROJECTS ARE FINANCED TO THE SAME BENEFICIARY (SUBSIDY WOULD BE AS PER ADMISSIBLE TFO CEILINGS BY CONSIDERING THE TFO OF BOTH THE PROJECTS TOGETHER)

EXPANSION OF AN EXISTING PROJECT OF A BORROWER (ONLY ON THE TFO FOR EXPANSION AND THE COST OF THE EXISTING PROJECT IS NOT INCLUDED)

CREDIT LINKED COMPOSITE SUBSIDY

FRESH/EXPANSION PROJECTS SANCTIONED BY BANKS BEFORE 4.8.10:

TFO CEILING WILL BE `10 LAKH (INDIVIDUAL)

FRESH/EXPANSION PROJECTS SANCTIONED BY BANKS ON OR AFTER 4.8.10 :

TFO CEILING WILL BE ` 20 LAKH (INDIVIDUAL)

PROCEDURE AGRIPRENEUR TO SUBMIT PROJECT

PROPOSAL FOR LOAN AND SUBSIDY TO BANKS

BANKS TO APPRAISE, SANCTION AND DISBURSE THE FIRST INSTALMENT

BANKS TO CLAIM SUBSIDY FROM NABARD WITH A BRIEF PROJECT PROFILE-CUM-CLAIM FORM

ROS ARE EXPECTED TO DISPOSE OFF THE CLAIMS WITHIN A FORTNIGHT FROM THE DATE OF RECEIPT OF THE CLAIMS

BANKS TO SUBMIT UTILIZATION CERTIFICATE

DELIVERY OF EXTENSION SERVICES SHALL BE THE MAIN COMPONENT

RECORD OF ADVISORY SERVICES (PRESCRIBED PROFORMA) IS TO BE MAINTAINED BY THE UNIT

ANY TWO OFFICIAL MAY TAKE UP PERIODIC/SURPRISE VISIT FOR VERIFYING RECORDS OF ADVISORY SERVICES

WHERE MISUTILIZATION OF SUBSIDY HAS BEEN NOTICED BANK SHALL REFUND THE SUBSIDY TO NABARD

A CONSOLIDATED REPORT IS TO BE FINALIZED BY THE BANK BEFORE 3 YEARS LOCK-IN PERIOD FOR FORWARDING TO NABARD/ATMA FOR INFORMATION

TIME LIMIT FOR COMPLETION : 6 MONTHS FROM DATE OF DISB. OF 1ST INSTALMENT (PLUS ADDITIONAL 6 MOTHS FOR JUSTIFYABLE DELAY)

BENEFIT OF SUBSIDY IS NOT AVAILABLE IF THE PROJECT IS NOT COMPLETED WITHIN STIPULATED TIME & SUBSIDY IS TO BE REFUNDED TO NABARD

INSURANCE TO BE TAKEN WHEREVER REQUIRED

DISPLAY OF SIGN BOARD AT THE UNIT

PRE AND POST COMPLETION INSPECTION OF PROJECT BY BANK

SUBSIDY SUBJECT TO AVAILABILITY OF FUNDS FROM GOI

EMPOWERED STEERING COMMITTEE SECRETARY (A&C) : CHAIRMAN ADDL. SECY, DAC : MEMBER AS & FA, DAC : MEMBER DDG (EXTN.), ICAR : MEMBER DG, MANAGE : MEMBER ED, NABARD : MEMBER JT. SECY (EXTN.) : MEMBER

SECRETARY

GOI’S INTERPRETATION OF THE SCHEME

INSTRUCTIONS WILL BE FINAL

1 STATES 222 NOS. OF UNITS 5663 TFO SANCTIONED

(` CRORE)45.54

4 BANK LOAN (` CRORE)

35.49

5 SUBSIDY RELEASED* (` CRORE)

11.82

* ADV + FIN + INT. SUB –I + INT. SUB –II

Progress (As on 30.06.2012)

Thank You for your Attention!