1. GUJARAT REGIONAL OFFICE, AHMEDABAD
SCHEME FOR DEVELOPMENT / STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION (AMIGS)
State Level Awareness Programme on AMIGS
11 October 2013
I Session By
A Parthava, Manager, NABARD
NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT
GUJARAT REGIONAL OFFICE, AHMEDABAD

2. Scheme for Development / Strengthening of Agricultural Marketing Infrastructure, Grading & Standardisation

3. Reforms linked investment scheme
Central sector scheme effective from
Scheme guidelines revised w.e.f
Scheme is Reform Linked. Applicable only in States/Union Territories, where APMC Act is amended
Amended Act allows ‘Direct Marketing’ and ‘Contract Farming’ and to permit agricultural produce markets in private and cooperative sectors.
Scheme implemented in Gujarat from 13 August 2007 as per Gazette Notification

4. Reforms linked investment scheme
Objectives
To provide additional agricultural marketing infrastructure
To promote agricultural marketing infrastructure by private and cooperative sector investments
To strengthen existing agricultural marketing infrastructure.
To promote direct marketing

5. Reforms linked investment scheme
Objectives (contd)
To provide infrastructure facilities for grading, standardization and quality certification of agricultural produce
To promote pledge financing and marketing credit
Introduction of negotiable warehousing receipt system and promotion of forward and future markets
To promote direct integration of processing units with producers

6. Salient Features
25% max. Rs lakh; 33.33% max. Rs lakh – for NE States, Hilly and Tribal areas, States of Uttarakhand, Himachal Pradesh and Jammu & Kashmir, SC/ST beneficiaries and their co- operatives
25% or 33.33% (as per eligibility) with no upper ceiling - for State Govt. agencies
Credit linkage is optional for projects by State agencies
Marketing Infrastructure projects sanctioned to State Govts. under RIDF are also eligible

7. Salient Features : Pattern of assistance
Source of finance
General
Category
NE States, hilly tribal areas, SCST entrepreneurs and their co-operatives
Subsidy
25%
33.33%
Bank loan
Margin money
contribution
Minimum 50%
Rest of the project
Cost
Minimum 46.67%
cost

8. Salient Features Contd..
Term loan min.50% of TFO (includes subsidy component)
Term loan % of TFO in case of NE states, hilly and tribal areas and for entrepreneurs belonging to SC/ST and their cooperatives
Time limit for completion – 18 months from the date of disbursement of first instalment of loan by financing bank. However if reasons for delay are justified, 6 months grace period may be allowed by the financial institution

9. Salient Features Contd..
For large projects with TFO of Rs.2.00 crore or more and requiring phasing, time limit for completion - 36 months
Subsidy through NABARD only for projects financed by institutions eligible for refinance. Eligible institutions include CBs, Coop. banks and RRBs, ADFCs, scheduled PCBs
Hilly areas – places with altitude of more than metres above MSL

10. Salient Features Contd..
Tribal areas – areas notified/ declared as tribal areas by Central/State Govt.
Any activity pertaining to Post harvest management providing direct service delivery to farmers and involving no product form change is eligible for subsidy.
In addition to compulsory direct service delivery, the projects could also be utilised for self purpose during lean period
No JMV for projects of TFO below Rs.10 lakh. Full and Final Subsidy could be released in one instalment.

11. Eligible Marketing Infrastructure
Functional Infrastructure for assembling, drying, cleaning, grading, standardisation and quality certification, labeling, packaging, value addition facilities
(without change of form)
Market users common facilities like market yards, platforms for loading, assembling and auctioning of the produce, weighing etc.

12. Eligible Marketing Infrastructure (contd.)
Infrastructure for Direct marketing of agricultural commodities from producers to consumers/processing units/bulk buyers etc.
Infrastructure for E-trading, market intelligence, extension etc.
Infrastructure for post harvest operations (excluding transport vehicles)
Infrastructure for supply of production inputs and need based services to the farmers.

13. Eligible persons/institutions
Assistance will be available to
Individuals
Group of farmers/growers/consumers
Partnership/Proprietary firms
Non-Government Organizations (NGOs)
Self Help Groups (SHGs)
Companies
Corporations
Autonomous Bodies of Government
Cooperatives, Cooperative Marketing Federations
APMCs & Marketing Boards

14. Land and Location
Entrepreneur will be free to locate the marketing infrastructure project at any place of his choice. No restriction on location.
Land cost will be restricted to a maximum of 10% of project cost in rural areas and 20% in municipal areas and it would form part of the owner’s contribution.
Entrepreneur will not alienate the land during the period of the loan for any purpose other than the purpose for which the loan is sanctioned.

15. Stipulation not applicable to State Agencies
Credit Linkage
Term Loan
Minimum 50% / 46.67%
Stipulation not applicable to State Agencies
Repayment in 11 yrs with 2 yrs grace period
Repayment schedule prescribed at the time of sanction of the project will not be allowed to be altered by the financing bank without the prior approval of Head office of DMI on the recommendation of NABARD

16. Credit Linkage (contd.)
Term Loan
Working capital could also be provided but only capital cost/term loan considered for subsidy
Back-ended subsidy
No Lock in period prescribed in the scheme

17. Agencies will adhere to their own appraisal norms
Other Modalities
Mode of Release
50% - Advance Subsidy
Remaining 50% - after JMV
Agencies will adhere to
their own appraisal norms
Insurance of the unit
- Responsibility of owner
Signboard

18. Procedure for sanction & release of subsidy
Bank to sanction loan & release first installment
Submit Annexure I and other documents to NABARD for advance subsidy.
NABARD sanctions subsidy and send to GoI.
On receipt of funds from GoI, subsidy released
On release from NB, banks credit to SRF A/c
Banks not to charge interest on subsidy amount from date of receipt of subsidy.

19. Procedure for sanction & release of subsidy (contd)
On completion, banks to submit request to NABARD for JMV alongwith completion documents. On receipt of letter from NABARD, coordinate for conduct of JMV.
JMV team comprises of THREE members
Official from DMI
Official from NABARD
Financing Banker – Branch Manager
After JMV, banks to submit Annexure II alongwith original JMV Report for claiming final subsidy
Last but not least, banks have to submit Utilization Certificate after full amount of subsidy is received and utilized.

20. Type of Projects sanctioned in Gujarat
The projects sanctioned under the Scheme in Gujarat include:
Market yard
Bulk Milk Coolers
Cleaning, Sortex Machines
Cotton Ginning units (not oil mills)
Weigh Bridge
Animal Cess Market
Upgradation of agro commodities
Frizzing of Fruits and Vegetables

21. Progress of Scheme in Gujarat (31.03.12)
No. of projects sanctioned : 330
TFO of projects : Rs lakh
Bank Loan : Rs lakh
Eligible Subsidy : Rs.7257 lakh
Advance Subsidy released : Rs.3391 lakh
Final Subsidy released : Rs.866 lakh
Total Subsidy released : Rs.4257 lakh

22. Thank You for Your Attention !!!