Agro Money


Go to content

Commercial Horticulture

Subsidy

Development of Commercial Horticulture
(20% subsidy from National Horticulture Board)


Objectives

  • To develop high quality horticultural farms in identified belts and make such areas vibrant with horticultural activity which in turn will act as hubs for developing commercial horticulture by adopting high-tech horticulture techniques;
  • To develop post-harvest management infrastructure;
  • To improve linkages between horticulture producers and marketers;
  • To create integrated network for marketing of horticulture produce;
  • To increase producer's share in consumer price;
  • To encourage networking of schemes for resource mobilisation with all other related agencies/organizations; both of Govt. of India and the respective States/UT's Govts., Financial Institutions and private agencies engaged in the field of horticulture promotion in the country.


Eligible Projects

  • Projects with any of the following broad criteria pertaining to high quality commercial production of horticulture produce, shall be eligible for financial assistance from NHB as back-ended capital investment subsidy :-
  • High density plantations, which include adoption of appropriate plant density/canopy management, quality planting material, support and management system with appropriate inputs;
  • Hi-tech cultivation under controlled climatic conditions i.e. in Poly houses, Green houses, net-houses, etc.;
  • Rainfed Production through efficient water management techniques, mulching for soil moisture conservation, use of barriers in soil to reduce percolation, irrigation by drip, sprinklers, fertigation, and water harvesting structures etc.
  • Nursery management for quality seed/plant production of vegetables, flowers, ornamentals, fruit etc.;
  • Hybrid Seed production;
  • Organic farming;
  • Hydroponics for year-round quality production;
  • Use of plastics in horticulture;
  • Bio-technology;
  • Genetically Modified Organisms (GMOs)


Projects based on further scientific advancements in various related fields will also be eligible for finance. In addition, projects falling under the following other broad categories shall also be eligible to avail the capital investment subsidy of NHB :-

  • Development of infrastructure for production, post-harvest handling, processing and marketing;
  • Development of markets and introduction of new primary processing of products.
  • Development of horticulture ancillary industry for improved packaging, equipments, plastics, corrugated boxes, horticulture machinery/ tools, etc.


Components
A) Production related

  • High quality commercial horticulture crops
  • Indigenous crops/ produce, herbs
  • Aromatic plants
  • Seed & Nursery
  • Bio-technology, Tissue culture
  • Bio-pesticides
  • Organic Foods
  • Establishment of Horti. Health clinics/laboratory
  • Consultancy services
  • Beekeeping

B) PHM/Primary Processing related

  • Grading/packing/washing/waxing/sorting/drying centres
  • Pre-cooling unit/Cool Stores
  • Reefer Van/Containers (with multi-chamber, multi-product facility)
  • Specialised Transport Vehicle
  • Retail outlets
  • Auction platform
  • Ripening/curing chamber
  • Market yards/rope ways
  • Radiation unit/Dehydration Unit/Vapour Heat Treatment Unit
  • Primary processing of products fermentation, extraction, distillation, juice vending pulping, dressing, cuting, chopping etc.
  • Horticulture ancillary industry e.g. tools, equipment's, plastics, packaging, etc.
  • Plastic Crates, Cartons, Baskets, Aseptic Packaging & Nets (50% Subsidy). The subsidy @ 50% as per prescribed norms shall be available for crates and nets (shade and anti-hail only) as a part of integrated commercial projects only. However, assistance in case of CFB Cartons and Aseptic Packaging shall be available on merit for launching a new product during its first year and for introduction of such products in a given horticulture area, as a one time assistance.


Priority Areas

  • Export Oriented Units/Projects
  • Project from cooperative sector
  • Projects in North Eastern Region, Hilly and Tribal areas
  • Introduction of new processes, products or markets including new technology/equipment
  • Project involving women entrepreneurs and ex-serviceman (Projects in areas other than the above priority areas, shall also be considered on merit).


Pattern of Assistance

  • Back-ended capital investment subsidy @ not exceeding 20% of the total project cost with a maximum limit of Rs 25 lakh per project shall be provided under the scheme to these projects which are found technically and financially viable. However, for the North-Eastern/Tribal/hilly Areas, maximum limit of subsidy would be Rs 30.00 lakh per project.
  • Subsidy would be sanctioned and released under the scheme somewhat on the pattern of cold storage scheme which is as under :-

1. Through participating banks/FIs
2. Through NCDC in the case of cooperative sector

  • The Financial Institutions/Bank shall include NABARD, IDBI, SIDBI, ICICI, State Financial corporations, State Industrial SC-ST/Minorities/Backward-Classes Financial and Development Corporation, other designated loaning institutions of the States/Uts. Commercial/Cooperative Banks, etc.



Back to content | Back to main menu