Govt eases scheme to open up agri marketing sector
The Centre has liberalised the scheme for strengthening agriculture marketing infrastructure by allowing state agencies to utilise their funds for the purpose instead of relying on bank credit.
By Agencies |
NEW DELHI: The Centre has liberalised the scheme for strengthening agriculture marketing infrastructure by allowing state agencies to utilise their funds for the purpose instead of relying on bank credit.
Under the existing guidelines for the central scheme on development/strengthening of agricultural marketing infrastructure, grading and standardisation, assistance under the scheme was credit linked.
Assistance for the scheme under the existing guideline is credit linked and subject to sanction of ‘infrastructure project’ by the specified banks based on economic viability and commercial considerations.
Under the revised guidelines, state government agricultural marketing board/state agencies would be permitted to utilise their funds in lieu of bank loans for financing projects under the scheme, information and broadcasting minister PR Dasmunsi told reporters here on Thursday after the meeting of the Cabinet Committee on Economic Affairs.
It also decided to allow projects located in hill states of Uttaranchal, Himachal Pradesh and Jammu and Kashmir to be eligible for higher subsidies admissible for hill areas irrespective of the altitude at which a project may be located. Hilly area is defined as land situated 1,000 metres above mean sea level.
ADVERTISEMENT
Under the existing guidelines, the rate of subsidy stands at 25% of the capital cost of the project. But for North-Eastern states, hilly areas, tribal areas and to entrepreneurs belonging to SC and STs and their co-operatives, the rate of subsidy is 33.3% of the capital cost of the project. With this approval, state agencies will be better enabled to take up infrastructure projects from their own funds by dovetailing the subsidy under the scheme, without borrowing from the financial institution, Mr Dasmunsi said.
He said J&K, Himachal Pradesh and Uttaranchal will be entitled to higher subsidy in the on-going scheme for taking up marketing infrastructure projects at all places irrespective of altitude. This would benefit producers at higher altitudes who market their produce from projects located at lower altitude.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
