Components
a. Production related components- credit linked projects relating to establishment of hi-tech, commercial production units of following items are eligible for assistance under this component :-
- High quality commercial crops
- Indigenous crops / produce, herbs, spices
- Aromatic & Medicinal Plants
- Seed & Nursery
- Bio-Technology, micro-biology, bio-chemistry bio-diversity, tissue culture and mist chamber
- Bio-pesticides
- Organic fertilizers, organic foods, bio-dynamic farming, vermin-compost
- Establishment of Hort. Health clinics / laboratories
- Hydroponics, Aeroponics
- Beekeeping and its products
- Mushrooms and its products
- Nuts and its products
Pattern of Assistance
Credit linked back-ended subsidy @ 20% of the total project cost limited to Rs 25 lakh per project in general area and Rs 30.00 lakh in NE Region, Hilly and Scheduled areas. However, for capital intensive and high value crops under protected cultivation and open air cultivation of date palm, olive and saffron subsidy will be @ 25% of project cost with ceiling of Rs.50 lakh (33% of project cost with ceiling of Rs.60 lakh for scheduled and hilly areas).
General conditions
1. The above assistance shall be available for projects covering area above four hectares (above 10 acres) in case of open cultivation, and more than 1000 sq. meter in case of protected cultivation.
2. Credit component as means of finance of the project should be term loan from banking or non banking financial institutions and should be at least 15 % more than the admissible rate of subsidy.
3. Projects relating to setting up of new production units shall be appraised to ensure and enable entrepreneur to incorporate essential hi-tech components in the form of planting material, plantation, irrigation, fertigation, precision farming, on farm PHM/ primary processing related infrastructure, GAP etc.; and to that extent, the project shall be integrated in nature.
4. Normative cost of various components shall be prescribed by NHB.
b. PHM/Primary Processing related components- credit linked projects relating to following items are eligible for assistance under this component :-
- Washing, drying, sorting, grading, waxing, packing, palletizing, freezing units etc.
- Pre-cooling units / Cool Stores
- Reefer Van / Containers
- Specialized Transport Vehicle
- Retail outlets
- Auction platform
- Ripening / curing chamber
- Market yards / rope ways
- Irradiation / Vapour Heat Treatment unit
- Primary processing of products (Fermentation, extraction, distillation, juice vending, pulping, dressing, cutting, chopping, dehydration etc.)
- Natural colour and dyes extraction
- Essential oils, perfumery and cosmetics out of horticulture products
- Products out of horticulture waste
- Horticulture ancillary industry for promoting indigenous manufacturing of horticulture related farm tools & machineries, equipments, plastics containers, packaging etc.
- Adoption of Quality Assurance Systems (HACCP, TQM, ISO, EurepGap etc.)
- For plastic Crates and Bins, Cartons, Aseptic Packaging and Nets (50% subsidy)
Pattern of Assistance
Credit linked back-ended subsidy @ 40% of the total project cost limited to Rs 50 lakh per project in general area and @ 55% of project cost limited to Rs 60.00 lakh in Hilly and Scheduled areas. Pattern of assistance for plastic crates will be 50% of the total cost.
General conditions from PHM/PP projects:
1. Primary Processing and Post Harvest Management related projects shall be implemented either as on-farm projects linked with individual projects of area expansion of commercial horticulture or as a common facility for cluster of new projects of commercial horticulture and existing orchards / farms. Projects relating to introduction of new plant/ machinery / equipment to effect automation, introduction of latest processing technology etc. in existing PHM infrastructure may also be considered; however, components covered by regular repairs & maintenance and replacement of old plant & machineries on attaining near zero book value is not to be incorporated. PHM components such as pack-house will be eligible for enhanced rate of subsidy only when infrastructure is as per prescribed level of technology, if any.
2. Subsidy @ 50% as per prescribed norms will be available for crates and nets (shed and anti-hail only) in integration with commercial horticulture projects of production as one time assistance. Subsidy for crates shall be released only after its actual purchase at appropriate stage, which shall be at stage of fruiting / harvesting. Accordingly, release of subsidy for crates shall be made separately at appropriate stage later.
3. As financial assistance for plastic crates / bins is given at producers’ end itself and it is aimed to increase producer’s share in consumer-end price of horticulture produce; assistance for plastic crates / bins shall be considered along with a new, credit-linked project of pack-house / ripening or curing chamber / cold storage unit/ primary processing unit or their suitable combination when Producers’ Company / Registered Growers Association / PSU is the promoter of such projects. The proposal shall be considered on merit in view of business model of the project, stocking & stacking system and actual need. But for this, the crates must be integral part of fixed capital investment under such credit linked projects and should be appraised by the lending Bank accordingly. Committee of NHB shall formulate formula for assessing admissible number of crates / bins in respect of any such project.
4. Shade nets and anti hail nets shall be considered as one time assistance for credit linked project for the benefit of existing commercial horticulture projects of fruit orchards qualifying area norm of above 4 Ha. Assistance in case of CFB Cartons, Aseptic Packaging, Punnets / Poly bags etc shall be available on merit for launching a new horticulture product during its first year and for introduction of horticulture products in a market as one time assistance.
5. Benefit of exclusive components of cold storage scheme shall also be available to the promoters over and above the assistance that will be provided under Commercial Horticulture Scheme to set up integrated projects for production and PHM components.
6. Selection of units for promotion of indigenous manufacturing of items covered by item 3.1 (B) shall be decided on merits by a Committee of NHB.
7. Credit component as means of finance of the project should be term loan from banking or non banking financial institutions and should be at least 15 % more than the admissible rate of subsidy.
8. Projects relating to setting up of new production units shall be technically and financially appraised to ensure and enable entrepreneur to incorporate latest available technology to take care of quality of produce, economy in cost of production, energy saving, safety and environmental concerns.
9. Projects under this scheme component may be integrated as part of new Production Related projects or in integration with existing Production Related projects set up with or without assistance under NHB schemes and falling under category of Production related Components; certain components may be on-farm and other may be off-farm; in addition, such projects shall be set up by a service provider/ trader / processors with proper backward linkage with production of fresh horticulture produce.
10. Normative cost for various components shall be prescribed by NHB from time to time. |
