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.
Refinance Assistance from NABARD
NABARD would provide refinance assistance to commercial banks, RRBs, SCBs SCARDBs and other such eligible institutions. Quantum and rate of interest on refinance will be as decided by NABARD from time to time.Adjustment of subsidy
- The capital subsidy will be back ended with minimum lock-in period of 3 years.
- The capital subsidy should be refunded one year after the account becoming NPA and remaining NPA as on date.
- The capital subsidy will be adjusted against the last few installments of the bank loan.
- The capital subsidy admissible under the scheme will be kept in the “Subsidy Reserve Fund Account (Borrower-wise) in the books of the financing bank. No interest will be paid on this amount by the bank. In view of this, for the purposes of charging interest on the loan component, the subsidy amount should be excluded. The balance lying to the credit of the “
Subsidy Reserve Fund Account” will not form part of Demand and Time Liabilities for calculation of CRR and SLR.
Monitoring
- Joint Monitoring Committee (JMC) consisting of representatives of NABARD, concerned banks and State Secretaries-in-charge of Animal Husbandry and Dairying under chairmanship of Joint Secretary (P&F) , Department of Animal Husbandry, Dairying & Fisheries (DAHD&F), and Government of India (GoI) will review implementation of the scheme at regular intervals.
- At the State level, the scheme shall be monitored by State level Committee (SLC), constituted for monitoring central sector animal husbandry schemes being implemented by NABARD.
- The participating banks should conduct periodic inspections of the units and give a feedback to the SLC on a consolidated basis.
- The units set up under the scheme will be field monitored on a sample basis by NABARD and major observations will be put up to JMC for discussion.
Modifications
The discretion to modify the unit cost is vested with an Empowered Committee under the Chairmanship of Secretary, DAHD&F, and GoI.Other Conditions
- The participating banks will adhere to the norms of appraising the projects regarding technical feasibility and commercial/financial viability.
- All possible care will be taken to avoid duplication of projects under the scheme with similar projects implemented by Directorate of Agricultural Marketing, Ministry of Agriculture and Ministry of Food Processing in the same areas.
- The participating banks should ensure insurance of the assets created under the project, wherever required.
- A signboard displaying “Assisted by Department of Animal Husbandry Dairying and Fisheries, Ministry of Agriculture, Government of India through NABARD” will be exhibited at the unit.
- Pre and post completion inspection of the project shall be undertaken by the participating bank to verify physical, financial and operational progress as and when required.
- DAHD&F reserves the right to modify, add and delete any terms / conditions without assigning any reason.
- DAHD&F’s interpretation of various terms will be final.
- DAHD&F reserve the right to recall any amount given under the scheme without assigning any reason thereof.
- Pre and post inspection would be undertaken by DAHD&F/NABARD to find out the physical and financial progress as and when required.
- Other operational instructions issued by DAHD&F / NABARD from time to time will be strictly followed
