OPERATIONAL GUIDELINES - Agmarknet

IMPLEMENTATION PERIOD(xviii) The scheme shall be implemented with effect from 20-10-2004 during 2004-05and during 2005-06 & 2006-07 in the Tenth Plan with a Central Assistance of Rs.175crore for marketing infrastructure projects. In addition, there will be a centralallocation of Rs.15 crore for strengthening Agmark laboratory network and forgeneral awareness and training programmes and studies, etc.IMPLEMENTING AGENCY(xix) The scheme shall be implemented by the Directorate of Marketing &Inspection (DMI), an Attached Office of Department of Agriculture and Cooperation.A list of regional/sub-offices of DMI is at Annexure VII.4. ASSISTANCE PATTERN(i)FOR PROJECTS FINANCED THROUGH BANKS/NABARDPattern of fundingSource of financeOther than NE States,hilly and tribal areasNE States, hilly and tribalareas*/SC & STentrepreneurs and theircooperativesSubsidy from Central25% 33.33%GovernmentInstitutional loan from Minimum 50% Minimum 46.67%commercial/cooperative banksetc.,Owner’s contribution** Rest of the project cost Rest of the project cost* Hilly area is a place at an altitude of more than 1,000 metres above mean sea level.* Tribal areas are areas notified/declared as tribal area by the Central/concernedState Government**Cost of land not exceeding 10% in rural areas and 20% in municipal areas of theproject cost can form part of the owner’s contribution.Mode of Release(a) 50% of the subsidy amount will be released to NABARD by Department ofAgriculture and Cooperation in advance. Accordingly, NABARD would releasesubsidy to the participating banks in advance for keeping the same in a SubsidyReserve Fund Account of the concerned borrowers, to be adjusted finally againstloan amount of the bank on completion of the project. This amount of 50% subsidywould be released by NABARD to the participating bank on submission of a projectprofile-cum-claim form.-6-