Agri – Clinic & Agri Business Centre

To supplement efforts of public extension by necessarily providing extension and other services to the farmers on payment basis or free of cost as per business model of agri-preneur, local needs and affordability of target group of farmers;

To support agricultural development; and to create gainful self-employment opportunities to unemployed agricultural graduates, agricultural diploma holders, intermediate in agriculture and biological science graduates with PG in agri-related courses.

Agri-Clinics:

Agri-Clinics are envisaged to provide expert advice and services to farmers on various technologies including soil health, cropping practices, plant protection, crop insurance, post harvest technology and clinical services for animals, feed and fodder management, prices of various crops in the market etc. which would enhance productivity of crops/animals and ensure increased income to farmers.

Agri-Business Centres:

Agri-Business Centres are commercial units of agriventures established by trained agriculture professionals. Such ventures may include maintenance and custom hiring of farm equipment, sale of inputs and other services in agriculture and allied areas, including post harvest management and market linkages for income generation and entrepreneurship development.

Linkage with Credit:

Assistance under the scheme would be purely credit linked and subject to sanction of the project by banks based on economic viability and commercial considerations. The eligible financial institutions under the scheme are:

• Commercial Banks
• Regional Rural Banks (our bank)
• State Cooperative Banks
• State Cooperative Agriculture and Rural Development Banks
• Such other institutions eligible for refinance from NABARD.

3 Ceiling of project cost for subsidy is Rs.20 lakh for an individual project (Rs. 25 lakh in case of extremely successful individual projects) and to Rs.100 lakh for a group project (established by a group comprising at least five trained persons under the Scheme) .The banks may, nevertheless, subject to their own satisfaction, finance groups formed by 2 or more trained persons under the Scheme within the Total Fund Outlay (TFO) ceiling of Rs.20 lakh per trained person and overall ceiling of Rs.100 Lakh, whichever is less, for the purpose of subsidy. However, the actual credit sanctioned by the banks for a venture established under the Scheme could be higher depending on the financial viability and technical feasibility. Thus, for instance, if an individual is granted a loan for TFO of Rs.35 Lakh, subsidy shall be reckoned only on TFO of Rs.20 Lakh.

The term loan would be composite in nature and our bank would extend bank loan as per the Total Fund Outlay (TFO), which would includes fixed capital cost and working capital for one operating cycle. Loan sanctioned will be the differential amount between TFO and margin money. Composite Subsidy will be provided even for low capital investment as it is Definitely possible that some argi-prenures already have capital (e.g building) to start a Venture, thereby requiring minimal capital investment. At least 10% value of the Total Financial Outlay of the project should be in capital form. The repayment schedule 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). The Finacle modalities under “E” details will be at par with the Bank’s guideline regarding Back Ended Subsidy. Repayment period will depend on the nature of activity and will vary between 5 to 10 years. The repayment period may include a maximum grace period of 2 years (to be decided by the financing branch as per needs of individual projects). Rate of interest on term loan shall be as per RBI guidelines and declared policy of the bank in this regard.

The stipulations on margin money shall be in accordance with the guidelines of Reserve Bank of India issued from time to time. In case of loans up to Rs. 5 lakh, no margin Money is required as per present norms. The margin money to be contributed by the general category entrepreneur will be as per prevailing norms. However, concessions would be made in respect of SCs/STs, women and beneficiaries of North-Eastern States, Hill areas. In such cases, a maximum of 50% of the margin money prescribed by banks could be given by NABARD to meet the shortfall in borrower’s contribution, if the bank is satisfied that the borrower is unable to meet the margin money requirements. Such assistance to banks by NABARD will be without any interest. The banks may, however, levy a service charge up to 2% per annum from the borrowers.

As most of the eligible activities pertain to agricultural input supply and services and The cost of investment will be less than Rs.25 lakh in most cases, the security norms Applicable to tiny industries as prescribed in RBI circular No.RPCD.PLNFS.BC.65/06.02.31/99-2000 dated 31.3.2000 would be made applicable to these units. Accordingly, up to a loan amount of Rs.5 lakh, the loans can be secured against hypothecation of assets created and no further security would be necessary.

Time limit for completion of the project would be as envisaged under the project, Subject to maximum of 6 months period from the date of disbursement of the first instalment Of loan by bank branch, which may be extended by a further period of 6 months, if reasons For such delay are considered justifiable by the branch concerned. If the project is not completed within the stipulated period, benefit of subsidy shall not be available and advance subsidy placed with the financing branch, if any, will have to be refunded forthwith to NABARD.

The financing branch will adhere to the norms of appraising the projects regarding Technical feasibility and commercial/financial viability. The financing branch should ensure insurance of the assets created under the project, wherever required statutorily. If beneficiary opts to buy insurance on these assets, even if insurance is not required statutorily, such expenditure will be an eligible component of the TFO. A sign board displaying “Assisted under the Scheme of Agri- Clinics and Agri- Business Centres, Ministry of Agriculture, Government of India” will be exhibited at the unit. Pre and post completion inspection of the project shall be undertaken by the Financing branch to verify physical, financial and operational progress as and when required.

NABARD will provide refinance assistance to commercial banks, RRBs, SCBs, SCARDBs and other such eligible institutions at the rate of 100% of the amount financed by the banks as term loan. Rate of interest on refinance will be as decided by NABARD from time to time.

Eligibility for Subsidy:

In the Pre-revised Scheme, subsidy was admissible in respect of agriculture graduates trained under ACABC scheme on or after April 1, 2004, for fresh investments made after July 9, 2006. The candidates trained under the Scheme prior to April 1, 2004 who have made investments after July 9, 2006, were to be considered on a case by case basis. Subject to fulfilment of all other eligibility conditions under the scheme, a Committee headed by Director General (DG), National Institute of Agricultural Extension Management (hereinafter referred to as MANAGE) used to take a decision in such matters.