REVISED GUIDELINES OF THE CENTRAL SECTOR SCHEME
ENTITLED
INVESTMENT PROMOTIONAL SCHEME
FOR
DEVELOPMENT OF NON-FOREST WASTELANDS

 

1. OBJECTIVES OF THE SCHEME

The principal objectives of the Scheme are:

(a) To facilitate/attract/channelise/mobilise resources from financial institutions, banks, corporate bodies including user industries and other entrepreneurs for development of wastelands in non-forest areas belonging to Central and State Governments, panchayats, village communities, private farmers, etc.

(b) To promote group of farmers belonging to different categories, namely, large, small, marginal & SCs/STs for bringing wastelands under productive use.

(c ) To facilitate production and flow of additional biomass including farm-forestry products used as raw material inputs for different types of industries.

(d) To facilitate employment generation through land development and other allied land based and related activities including Plantations.

 

2. AREA COVERAGE OF THE SCHEME

The Scheme will primarily be restricted to non-forest wastelands owned by Central and State Governments, Central/State Government Undertakings, Panchayats and Farmers. Government/ Community lands given on long term lease (more than 25 years) and Private land holdings leased to user industries/ Corporate bodies on the basis of mutual understanding / MOU are also eligible. Promoters of projects under the Scheme will satisfy the financial institutions/banks/other authorities concerned, about the availability of non-forest wastelands, subject to the relevant provisions of the land legislation applicable in the State/Union Territories concerned.

Regarding identification of wastelands, there will be a joint inspection by the concerned Revenue Authorities and Bankers. A certificate should be obtained from the Revenue Authorities that the land has remained uncultivated continuously for the last 3 years. Ua.gif (361 bytes)

3. SCOPE AND PATTERN OF FINANCIAL ASSISTANCE

A. There will be no limit on the total project cost, but subsidy from Government of India/Dept. of Wastelands Development (DOWD) will be on on-farm development activities only.

B. The quantum of subsidy will be as below:

(i) General Category

(Individual/Group

25% of on-farm development activities or Rs.25 lakhs, whichever is less.

(ii) Small farmers

(Individual/Group)

30% of on-farm development activities or Rs.25 lakhs, whichever is less.

(iii) (a) Marginal Farmers -

(Individual / Group)

50% of on-farm development activities or Rs.25 lakhs whichever is less.

 

(b) SC/ST Farmers without any limit in the area of holdings (Individual/Group).

Same as B(iii)(a) above.

C. The promoters contribution shall be as per the following:

(i) General Category

(Individual/Group

At least 25% of the project cost.

(ii) Small farmers

(Individual/Group)

At least 10% of the project cost.

(iii) (a) Marginal Farmers -

(Individual / Group)

Nil; however, at the time of execution of the project, the family labour should be involved to provide self-employment ensuring participation

 

(b) SC/ST Farmers without any limit in the area of holdings (Individual/Group).

Same as C(iii)(a) above.

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4. ELIGIBILITY FOR PROMOTIONAL GRANT/ SUBSIDY

Projects promoted by Central and State Governments undertakings, Co-operative Institutions, Public Trusts and Societies registered under the Societies Registration Act, Corporate Bodies registered under the Companies Act, Individual entrepreneurs and Individual/group of farmers would be eligible for the promotional grant/promotional subsidy under the Scheme.

5. SUBMISSION OF PROPOSALS

 Proposals for assistance under the Scheme would be received by DOWD in the prescribed format (Annexure-I & II) from the promoters. Such proposals should be supported with a letter of intent and letter of sanction of the project indicating the firmed up cost of the project and the means of financing by the financial institutions/ banks concerned.

 6. SCRUTINY OF PROPOSALS AND SANCTION FOR PROMOTIONAL GRANT/PROMOTIONAL SUBSIDY

The proposals for assistance under the Scheme based on the letter of intent and letter of sanction by the financial institutions/banks concerned received in the office of DOWD will be scrutinised and sanctioned by a Committee consisting of the Joint Secretary & Financial Adviser, Joint Secretary/Director incharge of the Scheme, a senior representative of NABARD and financial institutions/banks concerned, Secretary or the Head of the Nodal Dept. for wastelands development in the State or his representative in which the project is proposed to be implemented and Chaired by the Additional Secretary of DOWD.
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 7. RELEASE OF PROMOTIONAL GRANT/SUBSIDY 

(i) Subsidy should flow only in proportion of Promoters contribution and bank loan. The subsidy from Govt. of India will be released in two instalments, first being 60% and the second at 40%. The second instalment shall be released after assessing the performance of the project.

(ii) The subsidy will be released to the bank and shall be deposited in the name of the beneficiary.

(iii) In case an independent Agency/ organisation/NGO assists in mobilising the group of farmers and linking them with the concerned banks/financial institutions, it would be paid 3% of project cost for the purpose and this amount shall be paid by the bank/financial institution to the Agency/Organisation/NGO from within the Central Promotional subsidy of DOWD admissible to individual/ group of farmers.

(iv) Depending on the progress of the project, the subsidy will be released by the Bank/financial institution. Release of subsidy at any point of time will not exceed the promoters contribution/ amount of bank loan for the investment on on-farm development activities, as the case may be.

8. PROJECT FORMULATION ASSISTANCE

For the preparation of a viable/bankable project for the development of wastelands in non-forest areas, project formulation assistance @ 1% of the firmed up cost of a project would be provided by DOWD. This shall be paid only after the project is sanctioned by DOWD on the basis of request by the promoter/entrepreneurs supported with a declaration from the project formulator.

Financial institutions including NABARD, Commercial Banks, Central and State Government undertakings, Land Reclamation/ Development Corporations, Cooperative Institutions, Universities, Consultancy Organisations and NGOs would be eligible to receive the project formulation assistance under the Scheme.
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 9. MONITORING AND EVALUATION:

For facilitating regular monitoring of projects receiving assistance from DOWD under the Scheme, the promoter should furnish to DOWD a copy each of the periodical returns being submitted to the financial institutions/ banks concerned.

 The banks/financial institutions concerned shall furnish half yearly progress report to DOWD in the prescribed format (Annexure-III). A joint inspection by an officer of the DOWD/ NABARD / State Government (concerned) and financial Institution/ bank shall be undertaken as and when required.

10. OTHER CONDITIONS

In the project, the investment towards non-productive activities such as farm-house, farm-road, administrative building, laboratory, labour shed, goat rearing/ sheep rearing etc. should not be included.

On-farm development measures include soil & water conservation such as land smoothening, need-based irrigation including wells and pump-sets, fencing, plantations, inter-cropping etc.

 The financial institution/bank which shall provide loan be restricted to Nationalised Banks (NBs), Regional Rural Banks (RRBs), Land Development Banks (LDBs) and Co-operative Banks(CBs).

Projects shall be examined by the concerned bank as per NABARD Guidelines and after assessing its technical as well as financial viability and accord sanction of bank loan. Only thereafter on the basis of proposal of Promoter in the format (Annexure-I/II), the Project Sanctioning Committee of DOWD shall consider for release of subsidy.

To ensure viability of a project, a minimum area of 4 ha. should be considered.

The project shall be for a minimum period of 5 years.

The average project cost for on-farm development activities shall be restricted to around Rs.20,000/- per ha.

The support in the form of subsidy will be given only for agro-forestry projects. Some of the Agro-forestry System Models for adoption under the Scheme are given at Annexure-IV.

For large scale publicity, awareness and training, special efforts need to be made in collaboration with NABARD for which financial support shall be extended by DOWD. Informative booklets and extension materials shall be published by DOWD for their wide distribution. Ua.gif (361 bytes)

 

 

ANNEXURE-I

 

PROFORMA FOR SUBMISSION OF PROJECT
PROPOSAL BY THE SMALL/MARGINAL/SC&ST
FARMERS (INDIVIDUAL/GROUP) FOR THE INVESTMENT
PROMOTIONAL SCHEME (IPS) TO THE
DEPARTMENT OF WASTELANDS DEVELOPMENT (DOWD)

  1. Name of the Farmaer/Organisation
  2. Complete address including Telephone and Fax. No.
  3. Whether belonging to category of General/Small/ Marginal farmer or SC/ST or anycombination.
  4. Whether individual or Group for availing the subsidy and details of area owned by Individual/Group.
  5. Indicate entitlement on the scale of subsidy.
  6. Project title.
  7. Project location.
    1.  

      S.F.No. Area Village Block District State

       

  8. Details of Agro-Forestry Model (main and boundary Plantations) and inter-cropping including species.
  9. Cost of Project:
    1. Total Project cost.
    2. Promoters contribution.
    3. Bank loan.
    4. Subsidy proposed to be availed from DOWD.
  10. Schedule of implementation.
    1. Duration.
    2. Physical year-wise target.
    3. Financial year-wise target.
    4. Name of the bank from which loan being availed.
  11. Any other relevant information.
  12. Please attach the following documents.

    (a) Copy of the Project Report submitted to Bank/Financial Institution.
    (b) Copy of the letter of intent and sanction of loan by Bank/Financial Institution (duly attested )
    (c) Original Certificate from the Revenue AuthoritiesStating that land has remained uncultivated continuously for the last 3 year.

Signature
Name & Designation
( in Capital )

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ANNEXURE-II

PERFORMA FOR SUBMISSION FOR PROJECT
PROPOSAL BY STATE/CENTRAL GOVTS. & THEIR
UNDERTAKINGS, ENTERPRENEURS, CORPORATE BODIES
AND PRIVATE COMPANIES FOR THE
INVESTMENT PROMOTIONAL SCHEME (IPS) TO
DEPARTMENT OF WASTELANDS DEVELOPMENT (DOWD)

 

  1. GENERAL:
    1. Name of Organisation.
    2. Complete address including Telephone/Telex/Fex Nos.
    3. Project Title.
    4. Project Location.
    5. Area proposed to be covered under the project.
    6. Details of Agro-forestry model.
    7. Total estimated cost of the project.
    8. Promoter’s contribution.
    9. Promotional grant/subsidy being sought from DOWD.
    10. Schedule for implementation.

        B.   FINANCIAL DATA (WITH 2 DECIMAL PLACES)

    Year Specify Bank Loan Promoter’s Contribution State Govt. Funds If any Other Funds if any  Specify DOWD Grant/Subsidy Total
                 

     

    Total:            

     

     

     C. ANY OTHER RELEVANT INFORMATION:

     D. PLEASE ATTACH THE FOLLOWING DOCUMENTS:

    1. Latest Annual Report
    2. Latest Audited Accounts/Balance Sheet
    3. Original Copy from Revenue Authorities stating that the
    4. land proposed for the project as lying fallow for the last three years.

    5. Copy of the Project Report submitted of Banks/Financial
    6. institution.

    7. Attested copy of the letter of intent and sanction of financial
    8. assistance by Banks/Financial Institution.

    9. Attested copy of the resolution of the competent body of
      the Institution accepting the terms and conditions of providing
      assistance under the scheme.


SIGNATURE-----------------------------------------
NAME & DESIGNATION -----------------------------------------
DATE-----------------------------------------

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ANNEXURE-III

 

PROFORMA FOR SUBMISSION OF HALF YEARLY
PROGRESS REPORT FOR THE INVESTMENT PROMOTIONAL
SCHEME BY FINANCIAL INSTITUTE/BANK ON
DEPARTMENT OF WASTELANDS DEVELOPMENT (DOWD)

 

    1. Half yearly Progress Report ending (Quarter-wise):
    2. Reference of sanction of subsidy:
    3. Project Title:
    4. Project Period:
    5. Project Implementing Agency:
    6. Financial Targets of Project:

 

Year Specify Bank  Loan Grant/Subsidy from DoWD Promotor’s Contribution Total (Rs. Lakhs)
         

 

Total        
  1. Project performance (Brief)
    7.1    Financial Progress : (Rs. In lakhs)
    Year
    Specify
    Outlay

    Expenditure

    Bank Loan  Grant/subsidy from DoWD Promotor’s Contribution Total
     

     

    Total:

7.2 Physical Progress (ha.):

Year Specify   Target of plantation etc. Achievement

8.Recommendation for 2 nd installment of subsidy, if required.
9.Their Remarks

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ANNEXURE-IV

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