Infrastructure Development Subsidy

To encourage rapid development of infrastructure projects in agriculture and allied sectors including dairy, meat, Fisheries and minor forest produce. Investment subsidy: 25% of the capital cost up to Rs.50 lakh in each project providing ‘Direct’ service delivery to producers/ farming community in post harvest management/ marketing of their produce. However, the entrepreneurs may also have an opportunity to use the infrastructure for their own purpose during the lean period. In case of NE States, hilly and tribal areas, and in the States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir and to SC/ST entrepreneurs and their cooperatives investment subsidy shall be 33.33% of the capital cost up to Rs.60 lakh. No upper ceiling on subsidy in respect of infrastructure projects of State. Applicable only in such States/Union Territories, which undertake reforms in APMC Act to allow ‘Direct Marketing’ and ‘Contract Farming’ and to permit agricultural produce markets in private and cooperative sectors. Promoter’s contribution in project cost to be decided by financing Bank with minimum bank loan of 50% in general cases and 46.67% in hilly areas, etc. State Agencies may take up infrastructure projects from their own funds dovetailing the subsidy under the scheme, with bank loan or without borrowing from the financial institution.

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