Agri Business

Nabard sanctions 125 storage projects with Rs 24 cr subsidy

| | Updated on: Nov 25, 2011
image caption

Plans to increase storing capacity to 30,000 tonnes

Andhra Pradesh will create approximately 5 lakh tonnes storage during the current fiscal through funding from Nabard.

The Bank has sanctioned 125 projects with a subsidy of Rs 24.40 crore.

Nabard is extending the subsidy through the Grameen Bhandaran Yojana (Rural godown scheme). It aims to create new godowns or renovate existing ones.

The scheme has been in operation since 2001-02 with the larger objective of developing a network of rural godowns to help the farming community, especially the small and marginal farmers.

From October 2011, the scope of the scheme has been enhanced to facilitating the increase in maximum tonnage from the existing 10,000 tonnes to 30,000 tonnes, according to a press release.

Since its inception, Andhra Pradesh has benefited from 1,023 projects supported by Nabard.

A total of Rs 119 crore has been subsidised and a storage capacity of 44 lakh tonnes has been created.

This accounts for nearly 17 per cent of the total storage capacity created in the country under the scheme.

Construction of godowns

The construction of rural godowns can be taken up by self help groups, cooperatives, local bodies, municipal corporations, agricultural produce marketing committees, marketing boards, agro-processing corporations etc.

Under the scheme loans for construction of the godowns are sanctioned by banks, including regional rural banks and cooperatives, the subsidy amount is released by Nabard.

The subsidy of Rs 3,500/tonne storage capacity for godowns up to maximum 1,000 tonnes capacity and Rs 3,000/tonne for godowns exceeding 1,000 tonnes capacity was available under the scheme.


Published on November 25, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you