Ref No: NB. DoR /GSS/ 1510 /NLM-1/2018-19 14th September 2018
Circular No. 241 / DoR – 65 / 2018
The Chairman/ Managing Director
All Scheduled Commercial Banks/
All Scheduled Urban Banks,
Regional Rural Banks / ADFCs /
State Cooperative Banks /
State Cooperative Agriculture Rural Development Banks,
Other institutions eligible for NABARD refinance.
Administrative Approval for implementation of Centrally Sponsored Scheme” National Livestock Mission-EDEG Component during 2018-19.
We are pleased to advise that the Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture and Farmers Welfare, Government of India vide their letter no. 99-6/2018/NLM/Adm. Approval dated 2nd May 2018 has approved the continuation of the captioned Scheme for 2018-19,(vide Memo F.No.99-6/2018/NLM/Adm. Approval dt. 07 August 2018 and operational guidelines of NLM EDEG vide letter No.2-47/2009-AHT/FF (Vol. III) dt. 28 August 2018 for difficult areas, hill areas and subsidy ceiling for SMBC component).
The total budget allocation for 2018-19 is Rs.199.89 crores and the State wise category wise allocation is indicated in Annexure I. The scheme has been given interim extension beyond 12th plan period pending appraisal / approval of the scheme, subject to the condition that there shall be no change in nature, scope and coverage of the scheme as approved for the 12th plan. The detailed operational guidelines are available at www.dahd.nic.in.
2. NABARD will be the implementing agency under Entrepreneurship Development & Employment Generation (EDEG) component of National Livestock Mission. This includes i.e. Poultry Venture Capital Fund (PVCF), Integrated Development of Small Ruminants and Rabbit (IDSRR), Pig Development (PD), Salvaging of Male Buffalo Calves (SMBC). The sub-components of the above are furnished in Annexure –A-I (B). The rate of subsidy for various areas and various categories of the beneficiaries are furnished in Annexure –A-I (C).
3. The extract of the operational guidelines are as under;
I) Eligible Financial Institutions – Commercial Banks, Urban Banks, Regional Rural Banks, State Cooperative Banks, State Cooperative Agriculture and Rural Development Banks and such other Institutions eligible for refinance from NABARD.
II) Sanction of Project by Banks / Financial Institutions & Release of Subsidy – The entrepreneur will prepare a project report as per scheme norms and submit to the bank / financial institution for their sanction. The Bank / Financial Institution shall appraise the project as per administrative approval issued by DADF from time to time and if found eligible, sanction loan (Total Financial Outlay (TFO) – Margin Money). After sanction of proposal by Banks / Financial Institutions, the controlling office will upload the details as per the templet prescribed in the EDEG Portal within 30 days of sanction and block eligible subsidy amount. On successful upload and post validation, the bank will release the entire credit / first instalment as the case may be. The details of entire credit / first instalment may be updated within 30 days of first upload. Thereafter, the loan amount shall be disbursed in suitable instalments, if required, depending on the progress of the unit.
The Banks/ Financial Institutions controlling office shall ensure the subsidy claims should be uploaded within stipulated time period failing which the system will delete the application automatically, as budget cannot be earmarked for unlimited period.
The applications rejected due to incomplete details or any other reason, the applications has to be uploaded afresh after making necessary corrections.
III) Project Sanctioning Committee (PSC) – The Project Sanctioning Committee (PSC) set up at NABARD Head Office shall consider proposals uploaded by Concerned Financing Bank / Institutions in portal and approve the subsidy cases of eligible applicants within one month of receipt of the proposal.
IV) The subsidy will be released subject to availability of the category-wise funds allocated to the states.
V) The financing Bank / institution would keep subsidy amount borrower-wise in “Subsidy Reserve Fund Account in their books of accounts and adjust the subsidy amount in the subsidy reserve fund account of the beneficiary within seven days of the receipt of subsidy from NABARD failing which the financing bank / financial institution shall be liable to compensate the beneficiary to the extent of the additional interest charged. The controlling office of the financing bank / institution shall submit utilization certificate to the effect that the subsidy amount has been credited to the Subsidy Reserve Fund Account (SRFA) of the beneficiary along with details of the beneficiary. The certificate should be submitted / uploaded to NABARD online within fifteen days of receipt of subsidy.
VI) Repayment period / grace period - EDEG Component Repayment Period Grace Period
Poultry Venture Capital Fund (PVCF) 5 to 9 years 6 months to 1 year
Integrated Development of Small Ruminants and Rabbits (IDSRR) Maximum 9 Years 2 Years
Pig Development (PD) 5 to 6 years 1 Year
Salvaging of Male Buffalo Calves (SMBC) 4 to 6 years 1 Year
VII) Time limit for completion of the project - Time limit for completion of project would be as envisaged under the project subject to maximum of 12 months from the date of disbursement of first instalment of loan. This maximum period may be extended by 3 months by the financing bank in cases where justification given by the beneficiary is found adequate.
VIII) Lock in Period for subsidy – 3 years i.e. subsidy can be adjusted to borrowers account after period of three years and shall be returned if the account becomes a Non Performing Asset (NPA).
IX) Margin Money - RBI guidelines to be followed as applicable from time to time.
X) Priority in Providing Assistance - Priority may be given to the beneficiaries from the categories of Scheduled Caste, Scheduled Tribe, landless, small, marginal and BPL category farmers along with farmers belonging to drought and flood affected areas of the country.
5. Monitoring and Reporting - The units set up will be monitored by NABARD on sample basis and major observation would be placed before the Project Sanctioning Committee (PSC).
6. This may be brought to the notice of your concerned branches.
Please acknowledge receipt.
(G R Chintala)
Chief General Manager
Encl: As Above