Rural Godown Subsidy Scheme

NABARD – Rural Godown

The importance of institutional credit in boosting rural economy has been clear to the govt.... of India right from its early stages of designing. Therefore, the Federal Reserve System System System System Bank of India (RBI) at the insistence of the govt.... of India, constituted a Committee to Review the Arrangements For Institutional Credit for Agriculture and Rural Development (CRAFICARD) to seem into these very critical aspects. The Committee was formed on 30 March 1979, under the Chairmanship of Shri B. Sivaraman, former member of designing Commission, Government of India.

The Committee’s interim report, submitted on 28 November 1979, outlined the necessity for a replacement organisational device for providing undivided attention, forceful direction and pointed focus to credit related issues linked with rural development. Its recommendation was formation of a singular development financial organization which could address these aspirations and formation of economic bank for Agriculture and Rural Development (NABARD) was approved by the Parliament through Act 61 of 1981.

NABARD came into existence on 12 July 1982 by transferring the agricultural credit functions of RBI and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). it had been dedicated to the service of the state by the late Prime Minister Smt. Gandhi on 05 November 1982. acknowledged with an initial capital of Rs.100 crore, its’ paid up capital stood at Rs.14,080 crore as on 31 March 2020. Consequent to the revision within the composition of share capital between Government of India and RBI, NABARD today is fully owned by Government of India.

Agriculture is the primary source of livelihood for about 58 per cent of India’s population. India was the ninth largest exporter of agricultural products in 2017. In 2018-19, Government of India is targeting foodgrain production of 285.2 million tonnes. In order to safeguard the Agriculture produce there is a huge requirement of developing infrastructure in terms of Godowns, Market Yards, Cold Storage facilities and Food processing. This provides two-pronged benefit of safeguarding the excess Agriculture produce and providing good prices for the farmer consistently. As a part of achieving these benefits NABARD has introduced Agri Marketing Infrastructure (AMI) Scheme to encourage companies to setup storage rural go-downs. Following is the snapshot of the scheme.

Rural Godown Subsidy Scheme Overview

Validity : 22.10.2018 to 31.03.2021

Channelising / Nodal Agency : NABARD

Pattern of Assistance and its ceiling

North East, Hilly areas, Andaman & Nicobar Islands and Lakshadweep :

• 33% of Capital Cost, Max cap of Rs.66.66 Lakhs
• Subsidy Ceiling : (For 50-5000 MT in Rs. Per MT @ 1333.20/-)

SC / ST / FPO’s / Women Entrepreneur / Panchayats, Self-help groups :

• 33% of Capital Cost, Max cap of Rs. 50 Lakhs
• Subsidy Ceiling : (For 50-1000 MT in Rs. Per MT @ Rs. 1166.55/-) (For 1000-5000 MT in Rs. Per MT @ Rs. 1000.00/-)

All other Categories of Beneficiaries (General and others) :

• 25% of Capital Cost, Max cap of Rs. 37.5 Lakhs
• Subsidy Ceiling : (For 50-1000 MT in Rs. Per MT @ 875/-) (For 1000-5000 MT in Rs. Per MT @ 750/-)

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