REVISED CENTRAL SECTOR SCHEME: ESTABLISHMENT OF AGRI-CLINICS AND AGRI-BUSINESS CENTRES (ACABC) ZONAL WORKSHOP ON GSS Pune, 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

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  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 : TFO CEILING WILL BE ` 10 LAKH (INDIVIDUAL)  FRESH/EXPANSION PROJECTS SANCTIONED BY BANKS ON OR AFTER : 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 1 ST 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

1STATES22 2NOS. OF UNITS566 3TFO SANCTIONED ( ` CRORE) BANK LOAN ( ` CRORE) SUBSIDY RELEASED* ( ` CRORE) * ADV + FIN + INT. SUB –I + INT. SUB –II Progress (As on )

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