Gramin Bhandaran Yojana

Size of godown

Owner has to decide the capacity of his or her godown. Subsidy for the scheme is provided for a minimum potential of 100 loads and maximum of 30,000 loads. A smaller rural godown - 50 ton capacity is also qualified under the scheme on the basis of topography or viability analysis/requirement of a region. Also, godowns located in hilly areas with 25 ton capacity also qualify for the scheme in specific cases

Pledge Loan

Upon hypothecation of farm produce, farmers can avail of the pledge loan facility. The interest rates, loan amount and pledge period are based on the RBI/NABARD guidelines and banking practices of various financial institutions

Conditions

Godowns should be robust in terms of their structure for storage of agricultural produce. Entrepreneurs may have to get a licence under the State Warehousing Act. Godowns which have capacity to store around 1,000 tonnes must be accredited by the Central Warehousing Corporation (CWC)

Location

Godowns must be constructed outside the limits of municipal corporation. Also, any godowns (promoted by Ministry of Food Processing Industries) located at food parks are eligible as well

Credit-linked assistance

Subsidy linked to institutional credit is available for projects financed by the following:

1. Urban Cooperative Banks
2. Regional rural banks
3. Commercial banks
4. North Eastern Development Finance Corporation (NEDFI)
5. State Co-operative Agricultural and Rural Development Bank
6. State cooperative banks
7. Agricultural Development Finance Companies

Credit facility will be extended for construction costs of boundary wall, grading, platform, packaging, internal road, internal drainage system in addition to quality certification and warehousing facilities

Capital Cost

Godowns (1000 tonnes)

Godowns above 1000 tonnes capacity

Depends on the actual cost or cost of a project appraised by a bank or Rs.3500 per ton, whichever is lower

Depends on the actual cost or cost of a project appraised by a bank or Rs.1500, whichever is lower

Subsidy

Projects which receive finance from cooperative and commercial banks will get subsidy via NABARD. The subsidy in the Subsidy Reserve Fund Account is tax free

The subsidy rate is as follows:

1. 25% of a project’s cost for farmers and cooperatives subject ceiling on Rs.2.25 crores (subsidy)
2. 33.33% of a project’s cost for SC/ST entrepreneurs and projects in hilly areas subject to ceiling on Rs.3 crores (subsidy)
3. 15% of a project’s capital cost for individuals, corporations, subject to ceiling on Rs.1.35 crores (subsidy)
4. 25% of a project’s cost for godowns’ renovation aided by NCDC

Security

Mortgage of land and godown