Capital Investment Subsidy Scheme Application Procedure

What is a Capital investment Subsidy?

Organic farming, which is a comprehensive system, based on the core premise of minimizing the use of external inputs and eliminating the use of synthetic fertilizers and pesticides, has become increasingly important as public awareness of healthy and safe food has grown.

 In response to this problem, a Capital Investment Subsidy Scheme for Commercial Production Units for organic and biological inputs has been established under the National Project on Organic Farming. The National Centre of Organic Farming, in conjunction with the National Cooperative Development Corporation (NCDC) or NABARD, implements the scheme on behalf of the Department of Agriculture, Cooperation, and Farmers' Welfare.

Purpose of the Scheme

• To encourage organic farming by making organic inputs such as bio-fertilizers, bio-pesticides, and fruit and vegetable market waste compost available, resulting in a higher return on the produce.
• Increase the availability and improve the quality of bio-pesticides, bio-fertilizers, and composts in the country to minimize total reliance on chemical fertilizers and pesticides.
• Maintaining soil health and environmental safety to boost agricultural productivity.
• By properly converting organic waste, we can avoid environmental damage and contamination.
• To transform organic waste into plant nutritional resources,

Application Procedure of Capital Investment Subsidy

The detailed steps mentioned below are the main points for the application procedure.

• For assessment and loan sanction, interested promoters must submit a project proposal for term loan and subsidy to the bank on the application form required by the concerned bank, along with a project report and other supporting documentation.
• The bank approves and disburses the first installment of the loan after an appraisal. To the NABARD Regional Office (RO), submit a concise project profile-cum-claim form for advance subsidy in the required format, along with the bank's sanction letter.
• NABARD will authorize and release a fifty percent advance subsidy to a participating bank for deposit in the Subsidy Reserve Fund Account after it receives a project profile and a full claim form from the bank (Borrower-wise).
• As the project nears completion, the promoter must notify the bank, which will arrange for an inspection by a committee comprised of bank officials, NABARD officials, and the implementing agency to check that the unit meets technical and financial requirements.
• Following the inspection, the bank will submit the claim form for the final subsidy to NABARD in the approved format.
• The Committee's inspection report and completion certificate must always be included with a claim form for the final subsidy claim.
• NABARD will distribute the final subsidy to banks, with the implementing agency replenishing the funds.

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