Guidelines for

1
Guidelines for Central Sector
Scheme for Salvaging Rearing of Male Buffalo
Calves
GoI has introduced a Centrally Sponsored Scheme
called Salvaging Rearing of Male Buffaloe
Calves
2
Objective

• Salvaging male buffalo calves and rearing them
  economically for meat production and recovery of
  hides to enlarge raw material base for leather
  industry and improving availability of
  by-products - creation of employment
  opportunities in rural areas.

3
Who are eligible for assistance?

• Individuals Entrepreneurs , Companies,
  partnership firms, corporations, cooperatives
• Farmers,NGOs,SHGs, JLGs,
• Preference- SC/ST ,Women (40 of individual units
  )

4
What are the benefits?

• Two types of benefits
• Model I Individual units 1to 9 calves 100
  Interest Subsidy on Short Term loan.
• Model II Commercial units 10 to 50 calves
  Model III Industrial units- 1000 calves -
  Capital subsidy _at_25 of the outlay ( 33 1/3 in
  NE States including Sikkim and hilly areas)
• Margin Money - Minimum 10 for II 25 for III
  of the project cost-Scheme purely credit linked.
• Balance portion of the project cost to be met
  from loan from banks at normal rates of interest
  

5
Eligible activities

• Model I Individual units 1 to 9 male buffalo
  calves (Rs 6400/ calf) farmers who own the
  calves ST loan
• Model II Commercial units 10 to 50 male
  buffalo calves (Rs 87000 per rearing of 10
  calves) Term Loan
• Model III Industrial units 1000 male buffalo
  calves (Rs 83.45 lakh) Term loan

6
How to get the assistance?

• Eligible beneficiaries may identify specific
  activity
• Bankable project to be prepared and submitted to
  the financing bank
• Model Projects prepared by NABARD may be
  referred for guidance ( attached to Circular)
• Available in NABARD Website (www.nabard.org)

7
Contd.

• Prospective borrowers may contact Commercial
  Banks / RRB / Cooperative Banks with bankable
  project
• Banks to appraise the project and get themselves
  satisfied about the viability before sanction.
• Only eligible borrowers will be considered for
  assistance. Identification and selection of
  beneficiary is the responsibility of the bank.
• Banks will obtain security for loan as prescribed
  by RBI from time to time.

8
Role of NABARD

• Fund placed with NABARD
• Banks submit claim for Interest Subsidy
  Capital Subsidy to NABARD
• Only one State Level Sanctioning and Monitoring
  Committee (SLSMC) for all AH schemes.
• Convene meetings of the committee / PSC and place
  the proposals received from banks for assistance
  for sanction.
• Release of assistance will be subject to
  availability of funds from GoI.

9
Repayment Unit Cost

• Repayment period depend on nature of activity-
  One year for Model I. 4 to 6years for Model II
  III including one years grace.
• Repayment schedule is drawn on the total amount
  of loan (including subsidy) in such a way that
  subsidy amount is adjusted after liquidation of
  bank loan.
• Indicative Unit costs may be followed. Banks may
  sanction higher/ lower TFO based on local
  conditions. Subsidy will be calculated on
  indicative or actual cost, whichever is less.

10
How to claim

• Model I ST loan for one year sanctioned
  disbursed by Bank . Beneficiary repay the loan
  along with interest. Bank in turn will claim 100
  IS from NABARD in the prescribed format.
• Model II TL (TFO including subsidy) sanctioned
  by Bank. After the disbursement of first
  installment of the loan, Bank will apply to the
  NABARD for sanction and release of entire subsidy
  in the prescribed format.

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How to claim

• Model III TL (TFO including subsidy) sanctioned
  by Bank. After the disbursement of first
  installment of the loan, Bank will apply for 50
  Advance Subsidy. After completion of the unit,
  Bank will submit Final Subsidy claim to the
  NABARD along with JMC inspection report. JMC by
  Bank, NABARD State AH Dept.

12
How to adjust subsidy

• Capital subsidy with minimum 3 years
  lock-in-period
• Kept in Subsidy Reserve Fund a/c (borrower-wise)
  in the books of financing bank.
• Adjusted after liquidation of net bank loan (
  excluding subsidy)

13
Time limit for completion of Project

• For Model II III Maximum 12 months period from
  the date of disbursement of the 1st installment
  of loan. Further period of 3 months if reasons
  for delay are justified by the financial
  institution concerned.

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PROMOTIONAL ASSISTANCE

• Training of Farmers Entrepreneurs
• 1 -2 days-100 Grant up to Rs. 200 /person
  ,finalized by SLCMC by NGO /TE through NABARD.
• Publicity - By NABARD.

15
Monitoring

• CMC- Joint Sect. (DADF)GoI, members from DADF ,
  ,PLANNING COMM. , SEC. OF 3 SGs 3 BANKS
  (Roatation )Min. RD , Enironment Forest , SMM
  Min. , Deptt. Of Commerce Inds. (Leather
  section) NABARD. HLY.
• SLCMC Qly. , Pre-Post verification by Bank
• New Components- BY SECRETARY (DADF)GoI, SECRETARY
  EXPENDITURE CHIEF ADVISOR (PL. COMM)
• MONITORING BY INDEPENDENT AGENCY.

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Other issues .

• NABARD provides refinance to banks _at_ 90 on the
  bank-loan portion.
• Rate of interest on refinance as decided from
  time to time.
• After crediting the subsidy in the subsidy
  reserve fund account of the borrower, a
  Utilization Certificate will be submitted by the
  bank to NABARD.

17
Progress Report .

• Subsidy claims amounting to Rs.11.37 lakh are
  pending with NABARD for want of funds from GoI

18
Thank You