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i. gramin bhandaran yojana – godowns scheme - Efresh India

i. gramin bhandaran yojana – godowns scheme - Efresh India

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I. GRAMIN BHANDARAN YOJANA – GODOWNS SCHEME<br />

1) Objective:<br />

Creation of scientific storage capacity (<strong>godowns</strong>) in rural areas to meet the requirements of farmers<br />

for storing farm produce, processed farm produce and agricultural inputs.<br />

2) Subsidy is provided to <strong>godowns</strong> of capacity 100 tonnes to 10,000 tonnes.<br />

NOTE: No maximum ceiling on subsidy in the case of projects of rural <strong>godowns</strong> of<br />

Cooperatives assisted by NCDC (National Cooperative Development Corporation).<br />

3) Implementation Period: 31.03.2007 up to 31.03.2012.<br />

4) Eligibility<br />

• Any individual/farmer<br />

• Group of farmers/growers,<br />

• Partnership/ Proprietary firms<br />

• Non-Government Organizations ( NGOs)<br />

• Self Help Groups ( SHGs)<br />

• Companies<br />

• Corporations<br />

• Co-operatives<br />

NOTE 1: Local Bodies other than Municipal Corporations, Federations, Agricultural Produce<br />

Marketing Committees, Marketing Boards and Agro Processing Corporations in the entire<br />

country.<br />

NOTE 2: Assistance is available only to cooperatives for renovation of their rural <strong>godowns</strong>.<br />

Page 1 of 4


5) Subsidy:<br />

Rate of subsidy shall be:-<br />

a) For projects :<br />

• Located in North – Eastern States and hilly areas.<br />

• Women Farmers/ their self help groups /cooperatives<br />

and SC/ST entrepreneurs operatives<br />

& their self-help groups/ Co-operatives of any<br />

region.<br />

b) For farmers (Other than Women Farmers),<br />

agriculture graduates, cooperatives and State /<br />

Central Warehousing Corporations<br />

33.33% with maximum ceiling on subsidy of<br />

Rs.62.50 lakh<br />

25% with maximum ceiling on subsidy of Rs. 46.87<br />

lakh<br />

Note: For a & b; no maximum ceiling on subsidy in the case of cooperatives assisted by<br />

NCDC.<br />

(c)<br />

(d)<br />

For other individuals, companies & corporations etc. – 15% with maximum ceiling on<br />

subsidy of Rs. 28.12 lakh.<br />

For renovation of <strong>godowns</strong> of cooperatives with assistance from NCDC – 25% subsidy.<br />

6) Release of Subsidy<br />

Subsidy for the projects under the <strong>scheme</strong> shall be released<br />

i) Through NABARD for projects financed by Commercial, Cooperative and<br />

Regional Rural Banks, ADFCs, SCBs, SCARDBs, NEDFI and scheduled PUCBs<br />

and other institutions eligible for refinance from NABARD<br />

ii) Through NCDC for projects financed by NCDC or by Cooperative Banks in<br />

accordance with its eligibility guidelines.<br />

Page 2 of 4


7) Procedure to be followed for availing subsidy for construction of godown<br />

Projects financed through Banks<br />

STEP 1<br />

STEP 2<br />

STEP 3<br />

STEP 4<br />

STEP 5<br />

STEP 6<br />

Beneficiary should submit project proposal to local Sub Office / Regional Office of DMI and also should<br />

submit an application form along with project report and other documents to the bank for availing term<br />

loan and subsidy.<br />

Bank sanctions the project and furnishes a brief project profile-cum-claim form for advancing subsidy<br />

(Annexure-I) to RO, NABARD with a copy to the local Sub Office/ Regional Office of DMI as per list at<br />

Annexure VI.<br />

NABARD will sanction and release 50% advance subsidy to the bank and also forward a copy of claim<br />

form (as in Annexure-I) to the Head Office of DMI project-wise for replenishment or adjustment against<br />

advance subsidy provided by DMI to NABARD.<br />

After completion of the project the beneficiary should inform the bank for the inspection of the project by<br />

the three member committee<br />

For rural <strong>godowns</strong> of upto 1000 MT capacity, Joint inspection committee will be constituted.<br />

The Joint Inspection Committee consults the Head of the Gram Panchayat / Member of concerned Local<br />

Body before making recommendations for release of final subsidy for each project.<br />

After inspection, the bank will submit the claim form for final subsidy in the prescribed format given at<br />

Annexure-II to NABARD, in triplicate, with a copy to Regional Office/Sub-Office, DMI. NABARD shall<br />

release the final subsidy to banks which will be replenished by DMI.<br />

Projects financed through NCDC:<br />

STEP 1<br />

STEP 2<br />

STEP 3<br />

STEP 4<br />

STEP 5<br />

STEP 6<br />

STEP 7<br />

STEP 8<br />

STEP 9<br />

NCDC provides assistance to the cooperatives for construction/renovation of <strong>godowns</strong>.<br />

The cooperative societies shall formulate proposals in the format prescribed by NCDC and shall submit<br />

to RCS/State Govt. or directly to NCDC.<br />

The RCS/State Govt. examines the proposal and recommends to NCDC for consideration.<br />

NCDC communicates its sanction to the State Govt. and a counter sanction will be issued by the State<br />

Govt. to the societies.<br />

The pattern of funding, interest rates, mode of release of sanctioned assistance are as per NCDC’s norms<br />

and policies as circulated from time to time.<br />

The State Govt. periodically furnishes progress report to the NCDC and NCDC furnishes the same to<br />

DMI.<br />

DMI releases advance subsidy for parking in NCDC’s account. The project-wise subsidy will be<br />

adjusted / replenished by DMI.<br />

NCDC furnishes utilization certificate to DMI.<br />

NCDC and DMI may undertake inspection of <strong>godowns</strong> to verify the utilization on a random basis.<br />

Page 3 of 4


8) TO AVAIL SUBSIDY FOR THE CONSTRUCTION OF GODOWN –<br />

FLOW CHART FORM EASY TO UNDERSTAND<br />

Projects financed through Banks<br />

Projects financed through NCDC<br />

(For construction/renovation of <strong>godowns</strong>)<br />

Beneficiary should approach local Sub Office /<br />

Regional Office of DMI and submit project<br />

proposal<br />

Cooperatives are assisted by the NCDC for<br />

construction/renovation of <strong>godowns</strong><br />

Beneficiary should submit all necessary<br />

documents and Project Report to the Bank and<br />

obtain loan sanction letter<br />

Cooperatives should submit proposals to<br />

RCS/State Govt. or directly to NCDC (in the<br />

format given by NCDC)<br />

Bank sanctions the project and furnishes a<br />

brief project profile-cum-claim form to<br />

NABARD and to the local Sub Office/ Regional<br />

Office of DMI<br />

NABARD sanctions and release 50% advance<br />

subsidy to the bank<br />

Beneficiary should inform bank for the<br />

inspection of the project after its completion<br />

by the three member committee<br />

Final subsidy is released on the recommendations<br />

of the Joint Inspection Committee<br />

Bank will submit the claim form for final subsidy<br />

in the prescribed format (Annexure II) to<br />

NABARD in triplicate form<br />

NABARD releases the final subsidy to banks<br />

The RCS/State Govt. recommends to NCDC for<br />

consideration<br />

NCDC sanction will be issued by the State Govt.<br />

to the societies<br />

State Govt. furnishes progress report to NCDC<br />

and NCDC furnishes the same report to DMI<br />

DMI releases advance subsidy into NCDC’s<br />

account<br />

NCDC furnishes utilization certificate to DMI<br />

NCDC and DMI may undertake inspection of<br />

<strong>godowns</strong> to verify the utilization on a random<br />

basis<br />

Page 4 of 4

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