Central Sector Scheme on Assistance for Boosting Seed Production in Private Sector

Central Sector Scheme on Assistance for Boosting Seed Production in Private Sector

Scheme Overview

Sponsoring Authority     :    NSC (National Seed Corporation)

Effective Date                  :    01.05.2016

Objective : 

The main objective of the Scheme is National Seed Policy, 2002, recognizes greater role for the private sector in the functioning of the seed industry in the country. Realizing the need for increased seed production with a view to enhance seed replacement rates and particularly in the high volume low value crops it has been proposed in the Tenth Plan to provide assistance for boosting seed production in the private sector.

 Patten of Assistance :

• ➤ General areas (Including SC/ ST / Women ) :  40% of eligible Capital Project Cost (Max up to Rs. 60 Lacs per project)

• ➤ Hilly / Scheduled areas   : 50% of eligible Capital Project Cost (Max. of Rs. 75 Lacs per project)

Nature of Subsidy -  Credit Linked and back ended

Who are Eligible under scheme :

1. Partnership firms
2. Private companies
3. Individual entrepreneurs
4. Self-help groups
5. Seed Cooperative’s

Subsidy Components   :-

For Creation of Infrastructure development of Private seed industry specified in NSC scheme by following manner: -

• Seed Godowns

•                         - with AC/GI sheet (Civil)
•                         - with Flat Roof (Civil)

• Seed Processing

•                        - Plant Structure (Civil)
•                        - Machineries & Equipment

Release of Subisdy :

1. Release of subsidy to NSC by DAC. Accordingly NSC would release subsidy to Bank/ NCDC
2. Advance Subsidy : within 15 days from submission of Project profile cum claim form.
3. Final Subsidy : Within 30 days from date of Joint Inspection

Capital Investment Calculation :

1. For Seed Godown with AC/GI Sheet         :   Rs. 7000/- per Sq. MT.
2. For Storage Godown with flat roof            :  Rs. 7500/- per Sq. MT. (or) Actual Cost - whichever is lower.
3. Seed Processing Plant Structure               :   Rs. 7000/- per Sq. MT. (or) Actual Cost - whichever is lower
4. For Machinery                                               :   As per actual
5. For Transportation, Freight, Errection, Commissioning & Electrification Charges   :   Up to 2.5% of total cost of Eligible Machinery for Seed Processing Plant

Max Eligible capital project cost up to 150 lakhs (Any number of project at any number of locations)

• Special condition :  For creation of infrastructure promoter can avail benefit and operate the projects
•   -   either at one time or more than one time
•   -   either from one place or any number of locations

When to apply  -   Within 60 days from the date of Sanction of Term Loan (TL) by the Bank

• Time limit for completion of the project :

1. Within 15 months from the date of sanction of term loan (With grace period of 3 months)
2. If not completed within the time, the benefit of subsidy shall not be available and advance subsidy has to be refunded