Key Features of the Facility:

  1. Integration with Government Schemes:
  2. The facility aligns with all existing central and state government schemes, ensuring a seamless convergence that maximizes the benefits available to the agriculture sector.
  3. Online Single Window Platform:
  4. An online single-window platform is available, developed in collaboration with participating lending institutions. This platform simplifies the application process, providing a streamlined experience for applicants.
  5. Project Management Unit (PMU):
  6. A dedicated Project Management Unit (PMU) is established to offer comprehensive support throughout the project lifecycle. This includes assistance with project preparation, application submission, and ongoing management.
  7. Size of the Financing Facility:
  8. The facility boasts a substantial financing capacity of ₹1 lakh crore, designed to support a wide range of agricultural infrastructure projects across the country, including those provided by SERVODAY GROUP as a supplier of Biomass Pellet Plants on a Turnkey basis.
  9. Credit Guarantee:
  10. A credit guarantee is available for loans up to ₹2 crore, reducing the risk for lending institutions and making it easier for applicants to secure financing.
  11. Interest Subvention:
  12. The facility offers an interest subvention of 3% per annum on loans up to ₹2 crore per project at a single location. While the loan amount can exceed ₹2 crore, the interest subvention is capped at this limit.
  13. Capped Lending Rate:
  14. To ensure that the benefits of the interest subsidy reach the intended beneficiaries, a cap on the lending rate is implemented. This cap helps keep services affordable for farmers and other stakeholders.
  15. Wide Range of Lending Institutions:
  16. Multiple types of lending institutions are participating in this facility, including Commercial Banks, Cooperative Banks, Regional Rural Banks (RRBs), Small Finance Banks, the National Cooperative Development Corporation (NCDC), Non-Banking Financial Companies (NBFCs), and more.
  17. Eligibility for Multiple Projects:
  18. Eligible entities, including private sector participants like farmers, agri-entrepreneurs, and start-ups, can propose multiple projects across different locations. Each project can qualify for loans up to ₹2 crore. A maximum of 25 projects is allowed per private entity.
  19. This limitation does not apply to state agencies, national and state federations of cooperatives, federations of Farmer Producer Organizations (FPOs), and Self-Help Group (SHG) federations. For example, entities interested in establishing Biomass Pellet Plants through SERVODAY GROUP can benefit from this provision.
  20. Definition of Location:
  21. A "location" is defined as the physical boundary of a village or town with a distinct Local Government Directory (LGD) code. Each project must be located in a distinct area with a separate LGD code.
  22. Eligibility of APMCs:
  23. Agricultural Produce Market Committees (APMCs) are eligible for multiple projects, provided these projects involve different types of infrastructure within their designated market area.
  24. Interest Subvention Duration:
  25. The interest subvention is available for a maximum duration of 7 years, providing long-term financial support for eligible projects.
  26. Repayment Moratorium:
  27. The facility offers a flexible repayment moratorium period, ranging from a minimum of 6 months to a maximum of 2 years, depending on the nature of the project and the agreement with the lending institution.
  28. Disbursement Timeline:
  29. Disbursements under this facility are scheduled to be completed within six years, starting from the fiscal year 2020-21.
  30. Refinance Support:
  31. NABARD will provide need-based refinance support to all eligible lending entities, including cooperative banks and RRBs, in accordance with its policy, to further facilitate the availability of funds.

This facility represents a significant opportunity for stakeholders in the agriculture sector to develop and enhance infrastructure, contributing to the long-term growth and sustainability of Indian agriculture. Entities like SERVODAY GROUP, offering turnkey solutions for Biomass Pellet Plants, are well-positioned to support these initiatives.