Scheme for agri marketing infrastructure liberalised

NEW DELHI: The Government on Thursday liberalized 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 P R Dasmunsi told reporters 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 1000 metres above mean sea level.