RURAL GODOWN SCHEME (GRAMIN BHANDARAN
YOJANA)
In India about 165.77 mill. Ha land is under
agriculture, producing 526.77 mill tons of agriculture produce
comprising mainly food grains, pulses, oilseeds, cotton, jute,
sugarcane, etc. The agriculture production of the country has
increased four fold during the last five decades. However, in
spite of being self sufficient in production of food grains, the
farmers are unable to obtain remunerative prices for their produce.
They lack sufficient storage facilities, distributed in various
parts of the country.
Necessity of Godowns:
-
To store food grains in scientific manner,
minimise losses and maintain quality.
-
To avoid damages by rats, birds, small
insects etc. and deterioration in quality of the grains.
-
Non-availability of storage facilities
at the farmers, forces them to sell their produce during the
peak harvest season, when prices are the lowest depriving
of remunerative prices.
Benefits of Godowns:
-
Scientific storage leads to maintain quality
of food grains.
-
In godowns, frequent spraying of insecticides
and fumigation of food grains make them safe from rats, and
small insects.
-
Remunerative price is realised for food
grain, stored in Godowns leading to improved income to the
farmers.
-
The farmers can expect pledge loan of 70
% against stored produced.
-
If godown is run on commercial and professional
lines by farmers Cooperative sales and purchase societies,
it will lead to an increase in their incomes and help in employment
generation.
- The time limit of this scheme is upto 30th March2007.
The salient features of the scheme are
as follows
Nodal agency:
Director of Marketing , Maharashtra State, Pune.
Eligible Organisations: The
construction /expansion of rural godown can be taken up by individuals,
farmers, group of farmers /growers, partnership /proprietary firms,
non government organisations, self help groups, companies, cooperative
societies, Agriculture Produce Marketing Committees, Marketing
Boards and Agro-Processing Corporations in the country. Assistance
is also available for renovation / expansion of rural godowns
(restricted to the godowns constructed by co-operatives only).
Location: The construction of
godown has to be made outside the limits of Municipal Corporation,
with a minimum capacity of 100 MT and restricted to a maximum
capacity of 10,000 MT.
Credit Linked Assistance: Subsidy
under the scheme is linked to institutional credit and available
only to such projects which are financed by commercial Banks,
Co-operative Banks, Nationalised Banks and Regional Rural Banks.
Loan to the entrepreneurs, from banks for the construction of
godowns would be over a period of 10 years, and should be repaid
in 11 installments with a moratorium on repayment of 2 years.
The construction of godown shall be completed within 15 months.
Nature of the Scheme
Subsidy: Subsidy under the scheme
shall be provided on the capital cost of the project, as below:
- The rate of subsidy will be 25% of the capital cost of the
project. In case where the entrepreneur belongs to S.C./S.T.
the rate of subsidy shall be 33.33 per cent.
-
From 1st Oct. 2004 few changes made in
by Central Govt. in this scheme are for farmers, Agricultural
graduates, Co-op. societies state & central wearhousing
corporation are eligible for 25% subsidy & remaining can
get 15% subsisy.
-
Minimum size of godown eligible for subsidy
would be 100 MT
-
Capital cost of the project for releasing
subsidy under the scheme shall be calculated as follows:
-
For godowns upto capacity of 1000
MT, actual cost or Rs. 2000/- per ton storage capacity,
whichever is lower.
-
For godowns exceeding capacity of
1000 MT, actual cost or Rs. 1500/- per ton storage capacity,
whichever is lower.
-
For Renovation / Expansion of Godown
constructed by cooperatives with assistance from NCDC,
actual cost or Rs.500/- per tone of storage capacity,
whichever is lower.
-
Amount of subsidy calculated as above,
shall be further restricted to a maximum storage capacity
of 10,000 MT and further to a maximum amount of Rs. 37.50
Lakhs, for each project. Entrepreneur belongs SC/ST, maximum
amount of subsidy shall be Rs. 50 Lakhs, for each project.
-
Subsidy for the project under the scheme,
shall be realised through the NABARD for project finance by
the commercial, cooperative and regional rural Banks.
-
The capacity of the godown, will be calculated
1.8 MT per sq. m. of floor area with an average height of
not less than 4.5 m. Minimum capacity should be 100 MT in
some cases (physical/special requirement) permission should
be required from related office-
for that NABARD is going to issue the guidlines for the same.
Training: The training will
be arranged to the officers and honorary persons for maintaining
godowns, scientific storage, record etc.
Proposals: Loan/ Subsidy proposals
shall be prepared in Bank Proforma and proforma given by Agricultural
Marketing Board, Pune along with the necessary documents. Seven
copies of the proposals shall be prepared and submitted as below.
Documents:
1. Application, 2. 7/12 Extract, 3. 8-A Extract, 4. NOC from
municipal corporation 5. plan, 6. Estimate.
Apart from this do-operative societies required following additional
documents -
1. Board of Director's meeting resolution,2. Audit Memo Copies,3.
Financial report of last 3 years.
The recommendation from Dist. Deputy Registrar shall be required
before submitting to the above agencies.
Target for Construction of Godown under
this Scheme: In Maharashtra State under this scheme
5000 Godown construction target is fixed. Following chart showing
the position of 30 Dec. 2004.
| Number of target fixed for construction of Godown |
5000 nos |
| Receivedproposals to Banks |
4690 |
| Cost of construction for Godowns |
468.66 crore |
| Capacity in M.T. |
30.24 Lacs M.T. |
| Number of proposal sansctioned by Bank for loan |
1330 nos |
| Bank loan sanctioned amount |
98.31 Crore |
| No.of Subsidy saction proposal by Nabard |
1136 |
| Nabard subsidy sanctioned |
Rs.31.65 Crore |
CISS for Rural Godowns- Farmer category -Clarification
1. Rural godown projects promoted by farmers(other than woman
farmers) are eligible for subsidy at a rate of 25% of the capital
cost of the godown subject to a maximum of Rs. 46.87 lakhs under
the captioned scheme. Non-farmers on the other hand, are eligible
for subsidy at the rate of 15% of the capital cost. A farmer for
this purpose was defined as a person whose main source of income
is from agriculture. However, there was no clarity on what documentry
evidence should be taken as proof for determining the farmer category.
2. In this regard, DMI has since clarified as under:
i. In the case of promoter who was filing income tax returns,
copies of the IT returns of the last three years may be scrutinized
for deciding his/her major source of income and accordingly the
category should be decided.
ii. In case of promoter who was not filing IT returns, an affedavit
to the effect 'that his/ her major source of income is from agriculture'
may be obtained by the financing bank, along with Tehsildar's
certificate, and the farmer/ non-farmer category could be accordingly
decided.
CISS for Rural Godown- 
Eligibility of more than one godown in different locations
The operational guidelines for "CISS for Rural Godowns"
stipulate that subsidy under the scheme shall be restricted to
a maximum capacity of 10000 tonnes. In this regards, the Department
of Marketing and Inspection, GoI, had advised that "One promoter
is eligible for subsidy claim for more than one godown in different
locations subject to the condition that the subsidy claim should
not exceed 10,000 MT capacity for each location", which is
further clarified as under:
(i) If one applicant is making several godowns in different locations,
which godown may be considered as a seperate project and for each
such godown the eligible subsidy amy be given upto a capacity
creation of 10000 MT, even if the bank has sanctioned all such
godowns through one common letter.
(ii) However, if more than one godowns are located in the same
premises, then, it may be examined as to whether such godowns
are proposed to be built on the land located in different gatta/
survey nos and whether they seperately have all the required amenities
and space. Only if they have such seperate specifications, they
may be considered as projects in different locations, for the
purpose of subsidy. Otherwise, they may be considered as a single
project only and overall subsidy for such project may be limited
to 10000 MT.
(iii) You are requested to advise your controlling offices/ branches
accordingly.
Please acknowledge receipt.
Central Govt.Memorandum
Godown
Layouts
