Poultry Venture Capital Fund (Subsidy) Scheme – Operational Guidelines III

This article is part of a series I am writing on a Poultry Venture Capital (Subsidy) scheme. In this series I will provide operation guidelines including basic introduction, objectives, eligibility, project cost and subsidy, funding pattern, sanctions, time limit etc.

Funding pattern

• Entrepreneur contribution ( margin) - For loans upto Rs one lakh, banks may not insist on margin as per RBI guidelines. For loans above Rs 1.00 lakh: 10% (minimum)
• Back ended capital subsidy - as indicated above at 5.1.
• Effective Bank Loan (excluding eligible subsidy as above) - Balance portion,
  Minimum 40% of the outlay

 

Linkage with credit

Assistance under the scheme would be purely credit linked and subject to sanction of the project by eligible financial institutions 

Eligible financial institutions

• Commercial Banks
• Regional Rural Banks
• State Cooperative Banks
• State Cooperative Agriculture and Rural Development Banks, and
• Such other institutions, which are eligible for refinance from NABARD.

 

Sanction by banks

• Projects other than large processing units, emu processing, feather processing and units for technology up gradation:
  • The entrepreneurs shall apply to their banks for sanction of the project. The bank shall appraise the project as per their norms and if found eligible, sanction the total outlay excluding the margin, as the bank loan. The loan amount is then disbursed in suitable installments depending on the progress of the unit. After the disbursement of first installment of the loan, the bank shall apply to the concerned Regional Office of NABARD for sanction and release of total eligible subsidy in the format given in Annexure I.
• Large processing units, emu processing, feather processing and units for technology up gradation:
  • In respect of these proposals, the financing bank shall submit the projects to concerned Regional Office of NABARD. After preliminary scrutiny, the proposals will be sent to NABARD
    Head Office and will be placed before National level Committee for sanction. The quantum of subsidy shall be decided by the Committee. Once the project is cleared, the financing bank would be advised, which in turn shall release first installment of loan and apply for release of advance subsidy to concerned Regional Office of NABARD in the format given in Annexure II. After completion of the unit, the bank shall apply for sanction and release of final installment of subsidy in the format given in Annexure III.

 

Project Sanctioning Committee (PSC)

PSC of NABARD Regional Office shall examine the proposals other than large processing units, emu processing, feather processing and units for technology up gradation, and sanction the subsidy in case of eligible proposals.

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