Agro Money

Development of Infrastructure for Production and Distribution of Seed
(25%subsidy from National Seeds Corporation- NSC)

Objective

• Realizing the need for increased seed production with a view to enhance seed replacement rates and particularly in the high volume low value crops it has been proposed in the Tenth Plan to provide assistance for boosting seed production in the private sector. Under this scheme, it has been proposed to provide credit linked back-ended capital subsidy at the rate of 25% of the project cost subject to a maximum limit of Rs.25.00 lakh per unit on seed infrastructure development. Private companies, individual entrepreneurs, Self Help groups, PartnershipFirm and seed cooperatives will be eligible to get assistance under this scheme and the scheme will be implemented through Nationalized Banks, Scheduled Commercial Banks, and National Co-operative Development Corporation (NCDC).
• The assistance would be limited to creation of infrastructure facility relating to seed cleaning, grading, processing, seed treating, packaging and storage units as well as for seed testing facilities. This assistance will be primarily for low value and high volume seeds and it will be clearly incorporated in the scheme guidelines. National Seeds Corporation will be the nodal agency for implementation and monitoring of this scheme.

Eligible organization
The project for seed infrastructure development for seed production, namely, setting up of seed processing, seed treating, seed packaging and seed storage unit, setting up of seed testing laboratories by Partnership firms, private companies, individual entrepreneurs, self help groups and seed cooperatives.

List of Seed Processing Machinery and Condition for Seed Storage Godown
_ Seed Pre-cleaner
_ Seed Cleaner-cum-Grader
_ Indent Cylinder
_ Conveyor System
_ Seed Elevator
_ Seed Treater
_ Seed Drying Unit.
_ Seed Holding Bins.
_ Weighing Machine.
_ Bag Closer
_ Other connected equipments/accessories/different sieve sizes
_ Seed Testing Laboratory Equipments.


Credit Linked Assistance
(i) Subsidy under the scheme is linked to institutional credit and will be available to such project as are financed by Nationalized Banks, Scheduled Commercial Banks and National Cooperation Development Corporation (NCDC) and Regional Rural Banks. Loans to the beneficiary from the bank / NCDC would carry an adequate long-term re-payment period.
(ii) Assistance under the scheme shall be available on capital investment on construction of seeds processing plants, purchase and errection / commissioning of seed processing, seed cleaning, seed grading, seed treating, seed packaging machineries and equipment, machinery and equipment for loading and unloading seed bags, construction of seed storage godown and equipment for seed testing laboratories only.


Subsidy
Subsidy under the scheme shall be provided on the capital investment of the project as follows :

• Rate of subsidy shall be 25% of the capital investment of the project
• Capital investment of the project for the purpose of release the subsidy shall be calculated as follows:

a.) for seed godown upto Rs. 2500 per tone storage capacity or actual cost whichever is lower;
b.) for all the seed processing machineries and equipment the actual cost will be taken into account;
c.) for the seed processing plant structure actual subject to a maximum of Rs.3500 per square meter will be allowed.

• Subsidy for the project under the scheme shall be released through NSC for project financed by Nationalized Banks, Scheduled Commercial Banks and through NCDC for cooperatives. Total subsidy not exceeding 25% of the project cost with a maximum subsidy of Rs.25.00 lakh per unit. Financial Institutions will ascertain the viability of the individual proposals.