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The government has notified five more states for investment subsidy on infrastructure projects. Andhra Pradesh, Punjab, Himachal Pradesh, Nagaland and Sikkim are the latest beneficiaries under the central sector scheme “Strengthening/Development of Agricultural Marketing Infrastructure Grading and Standardisation”. Kerala, Tamil Nadu, Madhya Pradesh, Nagaland and Union Territory of Andaman and Nicobar Islands were notified earlier, for assistance under the scheme.
By this notification, infrastructure projects in all these states will now be eligible for investment subsidy of 25 per cent of the capital cost up to Rs. 50 lakh on each project. In the northeast states, hilly and tribal areas, rate of subsidy shall be 33.33 per cent of the capital cost up to Rs. 60 lakh. There is no upper ceiling on subsidy in respect of infrastructure projects of State agencies.
The investment subsidy on the capital cost attracts large investments in marketing and post harvest infrastructure projects in agriculture and allied sectors. The Scheme is linked to reforms in the Mandi Act/Agricultural Produce Marketing Committee Act (APMC Act) to allow direct marketing of agricultural commodities and setting up of competitive agricultural markets in private and cooperative sectors.
The infrastructure projects have been broadly defined to include user facilities like market yard, platform for loading, assembling and auction and weighing and mechanical handling equipments, functional infrastructure for assembling, grading, packaging, quality certification, labeling, packaging, etc. infrastructure for e-trading, marketing extension and market oriented production planning. Mobile infrastructure for post harvest operations such as grading, packaging, quality testing etc. is also eligible for subsidy under the scheme.
The concerned State Governments can also take up modernization projects in respect of their existing markets and set up state of art modern terminal markets for the marketing of fruits, vegetables and flowers in the respective areas. The Government has allocated Rs. 190 crore for the scheme during the years of 2005-06 and 2006-07. Subsidy under the scheme is to be released to the financing banks through National Bank for Agriculture and Rural Development (NABARD) and National Cooperative Development Corporation (NCDC).
UM:RC:hk:investment subsidy-300605
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