AGRICLINICS AND AGRIBUSINESS

1. OBJECTIVES:

a. To supplement the efforts of Government extension system b. To make available supplementary sources of input supply and services to needy farmers c. To provide gainful employment to agriculture graduates in new emerging areas in agricultural sector

2. CONCEPT/DEFINITION

Agriclinics: Agriclinics are envisaged to provide expert services and advice to farmers on cropping practices, technology dissemination, crop protection from pests and diseases, market trends and prices of various crops in the market and also clinical services for animal health etc. which would enhance productivity of crops/animals.

Agribusiness centres: Agribusiness centres are envisaged to provide input supply, farm equipments on hire and other farm services.

3. ELIGIBILITY:

The scheme is open to Agriculture Graduates/Graduates in subjects allied to agriculture like horticulture, animal husbandry, forestry, dairy, veterinary, poultry farming pisciculture and other allied activities.

4. EDP TRAINING TO AGRI GRADUATES:

SFAC/NABARD would be arranging a 2-month long intensive training to the agriculture graduates in accounting, business and related matters free of cost at selected centres throughout India. Upon completion of the said programme they would be issued a certificate and a registration number.

5.SELECTION OF BORROWERS:

Selection of borrowers and location of the projects could be done by banks in consultation with the Agricultural Universities, KVKs/ Agriculture Departments of the state.etc. Besides, the name and address of those agriculture graduates who have completed the training programme can be had from the web

6. PROJECT ACTIVITIES: An illustrative list of ventures.

Soil and water quality cum inputs testing laboratories (with Atomic Absorption Spectrophotometers) Pest surveillance, diagnostic and control services Maintenance, repairs and custom hiring of agricultural implements and machinery including micro irrigation systems (sprinkler and drip) Agri Service Centres including the three activities mentioned above (Group Activity). Seed Processing Units Micro-propagation through Plant Tissue Culture Labs and Hardening Units Setting up of Vermiculture units, production of bio-fertilisers, bio-pesticides, bio-control agents. Setting up of Apiaries (bee-keeping) and honey & bee products' processing units Provision of Extension Consultancy Services Hatcheries and production of fish finger-lings for aquaculture Provision of livestock health cover, setting up veterinary dispensaries & services including frozen semen banks and liquid nitrogen supply Setting up of Information Technology Kiosks in rural areas for access to various agriculture related portals

 Feed Processing and testing units Value Addition Centres Setting up of Cool Chain fro the farm level onwards (Group Activity) Retail marketing outlets for processed agri-products Rural marketing dealerships of farm inputs and outputs Any combination of two or more of the above viable activities along with any other economically viable activity selected by the Graduates, which is acceptable to the Bank.

7. PROJECT COST AND COVERAGE:

Agricultural graduates may take up the project either individually or on joint/group projects. The outer ceiling for the cost of project by individual would be Rs. 10 lakhs and for the project by group would be Rs. 50 lakhs. The group may normally be of 5, of which one could be management graduate with qualifications or experience in business development and management. However, for availing refinance under ARF, the outer limit of the project cost would be Rs. 25 lakhs subject to ceiling of Rs. 15 lakhs towards refinance availment. Projects with outlay above Rs. 25 lakhs may be submitted to NABARD for prior sanction.

Next 8. MARGIN MONEY:

Upto Rs. 5 lacs. - Nil. Above Rs. 5 lacs - 15 to 20 % . 9. RATE OF INTEREST:

To be decided by Banks as per the RBI guidelines.

10. SECURITY:

Upto Rs. 5 lacs - Hypothecation of Assets created out of Bank Finance.

Above Rs. 5 lacs - Hypothecation of Assets created out of Bank Finance and mortgage of immovable property or collateral security of adequate worth or third party guarantee.

11. COVERAGE UNDER CGTSI SCHEME

It has been indicated by the Ministry of SSI, Government of India that out of twenty enterprises covered under ACABCs, nine activities are eligible for support under the Credit Guarantee Fund Scheme of their Ministry

The eligible nine activities, as identified by the Ministry of SSIs, Government of India for coverage under the Credit Guarantee Scheme for Small Industries and approach the Credit Guarantee Fund Trust for Small Industries (CGTSI) for necessary cover. The list of eligible activities are: Sr.No. Code Area Type of Activity

1. Project 03 Maintenance and Repair of Agricultural Implements & Machinery including Micro Irrigation Systems SSSBE* 2. 3. 4. 5. 6. 7. Project 04 Project 05 Project 06 Project 07 Project 08 Project 14 Agri Service Centres SSSBE*

Seed Processing Units SSI** Tissue Culture SSI** Production of Bio-fertilizers, Bio-pesticides, Bio-control agents SSI** Honey and Bee Product Processing Units Feed Processing & Testing Units SSI** SSI**

8. Project 13 Setting up of Information Technology Kiosks in rural areas for access to various agricultural related portals SSI** 9. Project 16 Setting up of Cool Chain from the farm level onwards SSI**

12. REPAYMENT:

The period of loan will vary between 5 to 10 years depending upon the activity. The repayment period may include a grace period of a maximum 2 years.

13. NABARD REFINANCE:

NABARD refinance would be available to the extent of 100% of bank loan

14. MARGIN MONEY ASSISTANCE:

Margin money assistance from soft loan Assistance Fund of NABARD would be available to the extent of 50% of the margin money prescribed by banks to meet the shortfall in borrowers 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/loan to banks will be without any interest but the banks may charge a service charge of 3% p.a. from the beneficiary.

15. ELIGIBILITY NORMS:

Eligibility to draw refinance by banks will be determined as per instructions issued by NABARD from time to time.

16. MODE OF REFINANCE:

Refinance will be extended under Automatic Refinance Facility as well as schemes with prior sanction depending upon the project outlay and amount of refinance. Backssssss