NHB scheme

NHB Credit Linked Back ended Subsidy Schemes
Capital Investment subsidy scheme for Construction/expansion/modernization of Cold Storage and Storage for Horticulture Products.

1. IndoAsia Partners
2019

January 2019

National Horticulture Board (NHB)
Government of India
NHB Credit Linked Back
ended Subsidy Schemes
(No.1 and 2)


1. Development of Commercial
Horticulture through Production and Post-
Harvest Management of Horticulture
Crops.
A, Commercial Horticulture Development
in open field conditions on project mode
a) Activity (ies) allowed and Area norms:
National Horticulture Board will take up
integrated commercial horticulture
development projects in open field
conditions on project mode , including
components viz planting material,
plantation, irrigation, fertigation,
mechanization, precision farming, GAP etc.
for projects covering area over 2.00 ha. (5
Acres).In case of NE Region, projects
having area over 1 Acre are eligible (F. No.
12-40/2016-MIDH (NHB) dated July,
2017). Integration of production unit with
on farm PHM components and primary
processing unit shall also be allowed in
project mode. Cost of raising new
plantation will vary from crop to crop,
which will be taken into consideration while
providing assistance to the beneficiary.
Integrated production unit on Mushroom
and tissue culture shall also be eligible for
assistance under this component. The
components like farm machinery and PHM
infrastructure, irrigation and micro
irrigation etc shall be eligible under the
scheme for assistance in existing/new
orchards/projects to increase productivity.
b) Crop eligible: May please see from cost
norms of Open field cultivation under
NHB scheme.
c) Pattern of assistance: Credit linked back-
ended subsidy @ 40% of the total project
cost limited to Rs 30.00 lakh per project in
general areas and @ 50% of project cost
limited to Rs. 37.50 lakh in NE Region,
Hilly States and scheduled areas.
B. Commercial Horticulture Development
in protected cover on project mode.
a) Activity (ies) allowed and Area norms:
The Board will also take up commercial
horticulture development projects under
protected cover on project mode including
components viz planting material,
plantation, irrigation, fertigation,
mechanization, etc for projects having area
over 2500 sq meter. In case of NE Region,
projects having area over 1000 sq meter are
eligible. Activities like construction of green
houses, shade net house, plastic mulching,
and plastic tunnel, anti bird /hail nets etc
would be promoted. Provision has been
made for selecting a variety of construction
material for green houses and shade nets
houses. Preference will be given to using
locally available material to minimize cost
of construction of such structures. In case
of flowers, projects will be considered only
under Green House structures.
b) Crops eligible: a. Flowers: Anthurium,
Orchids, Rose, Lilium, Chrysanthemum,
Carnation and Gerbera. b. Vegetables:
High value vegetables: Capsicum,
Cucumber, Tomato

2. IndoAsia Partners
2019

January 2019

c) Pattern of assistance: Credit linked back-
ended subsidy @ 50% of the total project
cost limited to Rs 56.00 lakh per project as
per admissible cost norms for green
houses, shade net house, plastic tunnel,
antibird /hail nets & cost of planting
material etc.
C. Integrated Post Harvest Management
projects
a) Activity (ies) allowed The Board will take
up Integrated Post Harvest Management
projects relating to Pack House, Ripening
Chamber, Refer Van, Retail Outlets, Pre-
cooling unit, Primary processing etc. NHB
will also take up projects in component
mode and for standalone projects of PHM
components.
b) Crops eligible: In case of primary
processing, projects related to Fruits,
Vegetables, Flowers, Aromatic plants and
Cashew are only eligible for subsidy.
c) Pattern of assistance: Credit linked back-
ended subsidy @ 35% of the total project
cost limited to Rs 50.75 lakh per project in
general area and @ 50 % of project cost
limited to Rs. 72.50 lakh per project in NE
Region, Hilly States and Scheduled areas.
B. Capital Investment subsidy scheme for
Construction/expansion/modernization of
Cold Storage and Storage for Horticulture
Products.
a) Components Credit linked projects
relating to Cold Storages including
Controlled Atmosphere (CA) and their
modernization are eligible for assistance
under this component.
b) Infrastructure/Activity and Crops
eligible: a. Assistance for setting up of new
Cold Storage infrastructure will be available
only to Multi-Chamber cold Storage units
with technologies which are energy efficient
with provision of thermal insulation,
humidity controlled, advance cooling
systems, automation, etc, having
specification and standards approved by the
Ministry. To ensure, compliance of notified
standards, all projects will be subjected to
technical scrutiny by NHB empaneled
Technical appraisal agency. b. In case of
CA Stores, projects of temperate fruit crops
located in production areas for which to
NHB protocols are available, are only are
allowed.
c) Capacity and Pattern of Assistance: -
The assistance will be given as subsidy @
35% of the capital cost of project in general
areas and 50% in case of NE, Hilly States &
Scheduled Areas for a storage capacity
above 5000 MT up to 10000 MT. In case
of North East states, projects with a capacity
of 1000 MT or above are also eligible for
application and consideration.
d) Calculation of Capacity for subsidy:- For
calculation of capacity, 3.4 cubic meters
(cum.) (120 cubic feet (cft.) of chamber
volume shall be considered equivalent to 1
MT storage capacity.
Basic structure of NHB Schemes
1. Opening and closing dates for receiving
applications for IPAs: NHB Schemes shall
open on the first day of every financial year
and shall remain open for all States/ UTs
for the whole financial year subject to
availability of funds for respective
States/UTs.
2. Budget and Number of IPAs to be
issued in an year:
a. Government allocation for NHB
schemes will be intimated to NHB by
February/March every year.
b. In no year the estimated subsidy of IPAs
issued shall exceed the BE/RE of that FY.
c. NHB shall allocate budget to all States
and UTs based on a transparent criterion
Geographical Area (40%), Population
(based on the latest census) (40%) and

3. IndoAsia Partners
2019

January 2019

Horticulture Area (20%) with a minimum
amount of Rs.5.00 Crores in case of small
States, NCT Delhi and UTs; d uly
considering the Scheme No.3 (Technology
Development and Transfer for Promotion
of Horticulture), Scheme No.4 (IEC /
Awareness component), Scheme No.5
(Horticulture Promotion Service/ Expert
services and Strengthening capability of
NHB) and Establishment/ administration
cost of NHB. The Budget allocation shall
be approved by the Managing Committee
before the beginning of the new FY
d. Number of IPAs to be issued for a State
/ UT under schemes (No.1 and No.2) are
limited to State/ UT wise budgetary
allocation decided based on transparent
criterion to be reviewed periodically for re-
appropriation (End of June/Sept/Dec/Feb)
based on expenditure. In case of
exhaustion of allocated budgetary amount
to a state / UT, NHB shall not consider any
application already received and are
returned at the end of financial year to
applicants after taking into account the re-
appropriation during periodical review or
on the request of applicant for withdrawal
whichever is earlier; and shall not entertain
new applications in the said financial year.
3. Budget earmarking to specific categories:
specific categories shall be ensured viz.,:
a. 16.6% of Allocation is earmarked for SC farmers
under SCSP
b. 8.6% of Allocation is earmarked for ST farmers
under TSP.
c. 10% of Allocation is earmarked for NE States.
d. 30% of Plan allocation is earmarked for Women
farmers.
e. 3% for Persons with Disabilities.
4. Bank Appraisal and Sanction dates; and
Banks / FIs responsibility:
a. In all cases Banks /Financial Institutions
appraisal and sanction should be from/
after the date of IPA opening of each year.
b. There cannot be any Bank sanction for a
project without undertaking a prior
detailed bank appraisal of the said project.
c. Responsibility of Market and Financial
viability lies with the Banks
5. Mode of Application and processing:
Applications for NHB schemes are invited
online and are processed electronically to
the maximum extent possible.
6. Validity of IPA application is for one
financial year only. There will not be any
carry forward.
7. Timelines: There shall be fixed timelines
for each stage of application process.
8. Training: applicant is mandatory
Applicants’ Eligibility/ Eligible
Unless otherwise specified,
organizations/promoters, such as
Association of Growers, Individuals, group
of farmer growers/consumers, Farmers
Producer Organizations (FPOs,)
Partnership/Proprietary Firms, Self Help
groups (SHGs), NGOs, Companies,
Corporations, Cooperatives, Co-operative
Marketing Federations, Agricultural
Produce Marketing Committees, Marketing
Boards/Committees, Municipal
Corporations/ Committees, Agro Industries
Corporations, SAU’s and other concerned
R&D organizations are eligible to get
assistance under all the NHB schemes

IndoAsia Partners
Sanjay H. Indulkar
[email protected]
[phone]
www.linkedin.com/in/sanjay-
harishchandra-indulkar