CENTRAL SECTOR SEHEME "ESTABLISHMENT OF AGRI-CLINICS AND AGRI-BUSINESS CENTERS"

1.0 CENTRAL SECTOR SEHEME

1.1 A new Central Sector Scheme "Establishment of Agri-Clinics and Agri-Business Centres" has been launched during the year 2001-2002 at an outlay of Rs. 1.00 crore without the subsidy component. It was continued in the first year of Xth Five Year Plan also. At Present this scheme with a larger scope is under consideration.

1.2 The Scheme aims at extending opportunity to all eligible agriculture graduates, to support agriculture development through economically viable ventures, as stakeholders by providing the capital for this purpose by way of bank finanace on the one hand and entrepreneurship skill on the other, to set up information kiosks, tissue culture laboratories, soil testing, water testing laboratories, agri-clinics, agri-business centers and take up other related activities. Some model schemes have been prepared by National Bank for Agriculture and Rural Development (NABARD).

1.3 The Scheme will also provide opportunities for self-employment to agriculture graduates in agricultural and allied enterprises and help in the absorption of productivity enhancing technologies in the areas of their operation.

1.4 Under the Scheme, those who propose to avail the benefit of the Scheme will be given bank finance at priority sector lending rates through Banks, who would, in turn, be refinanced by NABARD. They would also be given training through SFAC to enable them to set up their own economically viable ventures. The expenditure for the training will be borne out of GOI funds under the scheme.

1.5 Presently, there is no provision of subsidy in the Scheme. However, the DAC has taken up the matter of giving backended subsidy to the entrepreneurs with the Planning Commission.

1.6 There is no state-wise allocation of funds under the Scheme.

1.7 The local banks will appraise the project proposals submitted by the graduates under the Scheme, and if the project proposals are found to be viable by the local banker, loan under the Scheme shall be advanced to the graduate concerned.

2.0 Persons Eligible under the Scheme

This scheme is open to

• Agriculture Graduates, without any restriction regarding age or experience.
• Graduates in subjects allied to Agriculture like horticulture, sericulture, fisheries, animal husbandary, forestry, dairy, veterinary, poultry farming and other allied subjects.
• In a Group venture of five graduates or more, there can be one management graduate also along with eligible four or more agri-graduates. Fresh Agriculture graduates as weel as retired agriculture profesionals are welcome to avail the benefits of this scheme. Projects can be taken up on individual / group / joint basis, with an upper ceiling for projects set up by individuals at Rs. 10 lakhs, and, prorata, upto Rs. 50 lakhs for a project set up by a group which may be of 5 or more persons.

3.0 Activities and Ventures to be Promoted under the Scheme

3.1 Under this scheme an agriculture Graduate can set up Agriclinics to provide expert services and advice on cropping / fisheries practices, technology dissemination, protection from pests and diseases, market trends and prices in the markets etc. on payment, or Agribusiness Centres to provide agricultural inputs, farm and fisheries equipments on hire, as well as set up cold storage, Tissue Culture Units etc. In order to enhance the viability of the ventures, Agriculture Graduates may also take up allied activities in agriculture extension along with the Agriclinics / Agribusiness Centres. The list of ventures which can be taken up is as below :-

1. Soil and water quality cum inputs testing laboratories (with Atomic Absorption Spectrophotometers);
2. Pest surveillance, diagnostic and control services;
3. Maintenance, repairs and custom hiring of agricultural implements and machinery including micro irrigation systems (sprinkler and drip);
4. Agri Service Centres including the three activities mentioned above (Group Activity);
5. Seed Processing Units;
6. Micro-Propagation through Plant Tissue Culture Labs and Hardening Units;
7. Setting up of Vermiculture units, production of bio-fertilizers, bio-pesticides, bio control agents,
8. Setting up of Apiaries (bee-keeping) and honey & bee products processing units;
9. Provision of Extension Consultancy Services,
10. Facilitation and agency of agricultural insurance services,
11. Hatcheries and production of fish finger-lings for aquaculture;
12. Provision of livestock health cover, setting up of veterinary dispensaries & services including frozen semen banks and liquid nitrogen supply;
13. Setting up of Information Technology Kiosks in rural areas for access to various agriculture related portals;
14. Feed Processing and testing units;
15. Value Addition Centres;
16. Setting up of Cool Chain from the farm level onwards (Group Activity);
17. Post Harvest Management Centres for sorting, grading, standardisation, storage and packaging;
18. Setting up of Metallic / Non-Metallic Storage Structures (Group Activity);
19. Retail marketing outlets for processed agri-products;
20. Rural marketing dealerships of farm inputs and outputs.
21. Any other activity in agriculture and other allied area.

3.2 A unit can have the above ventures singly or in combinations or 2 or more activities depending upon the local needs and capabilities of the entrepreneurs. Model project profiles for some of the above activities are available at NABARD offices and at National Institute of Agricultural Extension Management (MANAGE), Hyderabad.

4.0 Terms and conditions of Bank Credit Under the Scheme

4.1 Initially the Ministry of Agriculture, Govt. of India had envisaged extending credit linked back-ended subsidy for this scheme. However, this is under consideration with the Planning Commission and at present no subsidy is being offered witht the scheme. Model project profiles convering some of the activity areas under the scheme have been prepared and these will be made available to the training institutions for use by trainedd entrepreneurs. the bank credit, as per the Scheme, will be extended to the entrepreneurs on specific terms and conditions, after completion of the training programme and submission of the proposal to the banks.

4.2 Rate of interest to be charged by the financing institutions from the ultimate borrowers would be the same as prescribed by RBI for Priority Lending from time to time.

4.3 The security for availing the loan will be as per guidelines issued by RBI from time to time.

4.4 Depending upon the cash flow, the period of moratorium may extend upto 2 years and period of repayment extend upto 7 years. The repayment period indicated in the model schemes prepared by AFC can be taken as the base norm.

4.5 The terms and conditions as applicable to project lending by financing banks and / or refinance by NABARD including the technical feasibility and financial viability will also be applicable to the projects under the scheme. The borrower / financial bank shall furnish the progress reports in respect of the scheme as prescribed by Government of India / NABARD for the purpose of monitoring the projects. DAC would implement this programme as a Central Sector Scheme.

4.6 The Selection of borrowers and location of the projects may be done by the lending banks in consultation with Agricultural Universities / KVKs etc. in their area of operations, if necessary.

4.7 Terms and conditions of refinance by NABARD :

1. Quantum of refinance : 100 % of the bank loan.
2. Rate of interest on refinance : As decided by NABARD from time to time. The present rates per annum are :

4.8 Margin Money assistance from 'Soft Loan Assistance Fund' of NABARD : A maximum of 50 % of the margin prescribed by banks, to meet the shortfall in borrower's contribution, if any, where the bank is satisfied that the prospective borrower is unable to meet the margin money requirements, could be given by NABARD. Such assistance/loans to banks will be without any interest but the banks may charge service charge of 3 % p.a from the beneficiary.

5.0 Training Component of the Scheme

5.1 The training programme, being organised by SFAC, will comprise skill improvement and updation in the chosen area of activity, as well as entrepreneurship and business management. For providing this training, which shall be residential in nature, institutions all over the country, have ben identified by SFAC in sonsultation with Indian Council of Agricultural Research (ICAR).

5.2 At present Memorandum of Understanding (MOU) has been signed with 36 training centres across the country and negotiations are going on for signing MOUs with other training centres so that training under the Scheme can be given in all parts of the country.

5.3 SFAC will be utilizing the services and infrastructure of MANAGE, Hyderabad to coordinate the training programme. This training will be offered to those interested in availing the bank loan under the scheme so that they are well equipped to set up their own ventures. The Government of India order in this regard has been issued on 08/01/2002.

5.4 During the training proposed under the Scheme at various training centres across the country, the agricultural graduate interested in taking a bank loan under the Scheme will be given inputs on how to make an effective bankable project proposal. The training shall also include inputs regarding project management, case studies, field visists and lecture by experts in various agricultural activities.

5.5 As on 27^th August, 19,054 applications for training had been received fromm all the parts ofs the country.