Here is the brief description of the guidelines related to the Pig Development Scheme, we mentioned earlier.
A. Implementing period and Area of operation
The scheme will be implemented during the remaining XI plan period (2010–11 and 2011-12) through out the country. The high potential 50 districts identified in 15 States however, the proposals received from other than these potential districts can also be considered for providing subsidy assistance under the scheme. The scheme is in operation from 14 July 2010.
B. Eligibility
Producer companies, partnership firms, Corporations, individual entrepreneurs, NGOs, SHGs, JLGs & Cooperatives.
C. Subsidy
The capital subsidy will be back ended with minimum lock-in period of 3 years.
D. Components that can be financed
Indicative unit cost and pattern of assistance are given below
E. Funding pattern
- Beneficiary contribution (margin) - 10 % of the outlay (minimum). The cost of land not exceeding 10% of the project cost can form part of margin by entrepreneur.
- Back ended capital subsidy - with minimum lock-in period of 3 years as indicated above at D.
- Effective Bank Loan - Balance portion
F. Linkage with credit
Assistance under the scheme would be purely credit linked and subject to sanction of the project by eligible financial institutions.
G. Eligible financial institutions
- Commercial Banks
- Regional Rural Banks
- State Cooperative Banks
- State Cooperative Agriculture and Rural Development Banks
- Such other institutions, which are eligible for refinance from NABARD.
The entrepreneurs shall apply to their banks for sanction of the project. The subsidy shall be released on first come first serve basis subject to availability of funds.
E. Repayment
- Repayment Period will depend on the nature of activity and cash flow and will vary between 5-6 years including grace period One (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).
F. Rate of Interest
Rate of interest on term loan shall be as per RBI guidelines and declared policy of the concerned bank.
G. Security
The security for availing the loan will be as per guidelines issued by RBI from time to time.
H. 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.
Note
For detail circular on the scheme please visit:
