The Hindu Business Line : Scheme to boost agri-marketing infrastructure projects soon

THE Union Government will soon come out with an innovative scheme to encourage entrepreneurs investing in agricultural marketing infrastructure projects, picking up to 26 per cent equity.

The move is aimed at bringing down the risk threat for both entrepreneurs and banks.

Announcing this here on Wednesday, Mr P.K. Agarwal, Joint Secretary and Agricultural Marketing Adviser in the Ministry of Agriculture, said the venture capital scheme was part of Government's effort to bridge the gap between producer and consumer.

Addressing a meeting here, he elaborated on a new subsidy scheme launched by the Ministry for development of agricultural marketing infrastructure and standardisation.

The scheme covers a wide range of agricultural and allied sectors activity includingcollection, cleaning, grading, quality certification, labelling, packaging, ripening chambers, retailing, wholesale activity and value addition facilities.

In the entire chain, only transportation facility was included. "We don't want to end up financing trucks," he said.

The capital investment scheme offered subsidy up to 25 per cent of the capital cost with a cap of Rs 50 lakh on each project. In case of north-eastern States, subsidy has been put at 33.33 per cent of the project cost with a maximum of Rs 60 lakh.This is applicable in States and Union Territories where Agricultural Produce Marketing Committee Act reforms are being undertaken.

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