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

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. 


Release of subsidy

After sanction of the subsidy by the PSC, the Regional Office of NABARD shall release the subsidy amount after confirming the availability of funds from NABARD Head Office.
Capital subsidy for large processing units, emu processing, feather processing and units for technology up gradation shall be released in two installments ( advance and final):
  • advance subsidy after release of first installment of loan by the bank, and
  • final installment after completion of the unit and submission of satisfactory report by joint monitoring team.
After completion of the unit, the bank shall inform the concerned RO of NABARD for taking up a joint monitoring visit and also apply for release of final installment of subsidy in the format given as Annexure III. The joint monitoring visit will be taken up by a team comprising of representatives of the financing bank, State Animal Husbandry Department and NABARD. Format for joint monitoring report is given in Annexure IV.
The final installment of subsidy shall be released after submission of a satisfactory report by the joint monitoring team. The subsidy shall be released on first come first serve basis subject to availability of funds.
Immediately after receipt of subsidy amount from NABARD, the implementing bank branch should open a separate borrower wise Subsidy Reserve Fund account; credit the subsidy to the Subsidy Reserve Fund account of the borrower.
A Utilization Certificate in the prescribed format (Annexure V) shall be submitted by the participating bank to NABARD to the effect that the amount of subsidy received by them has been (kept in Subsidy Reserve Fund account and no interest is charged on this amount) fully utilized and adjusted in the books of account within the overall guidelines of the scheme.
The annexure are available at website http://dahd.nic.in.


  • Repayment Period will depend on the nature of activity and cash flow and will vary between 5- 9 years. Grace period may range from 6 months to 1 year.
  • The repayment schedules will be drawn on the total amount of the loan (including subsidy) in such a way that the subsidy amount is adjusted after liquidation of net bank loan (excluding subsidy).


Rate of Interest

Rate of interest on the loans shall be as per RBI guidelines and declared policy of the bank in this regard. The bank may charge interest on the entire loan amount till the subsidy is received and from the date of receipt of subsidy by the implementing branch, interest has to be charged only on the effective bank loan portion, i.e., outlay excluding the margin and subsidy


The security for availing the loan will be as per guidelines issued by RBI from time to time.


Time limit for Completion of the project

  • Time limit for completion of the project would be as envisaged under the project, subject to maximum of 12 months period from the date of disbursement of the first installment of loan which may be extended by a further period of 3 months, if reasons for delay are considered justified by the financial institution concerned.
  • If the project is not completed within the stipulated period, benefit of subsidy shall not be available and advance subsidy placed with the participating bank, if any, will have to be refunded forthwith to NABARD

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