Horticulture Cluster Development Programme

Horticulture Cluster Development Programme

Objectives

  1. Address the concerns of horticulture value chains in an integrated manner to accelerate competitiveness in the domestic and export markets. subsidy for cluster development
  2. Reduce harvest and post-harvest losses by developing/expanding/upgrading the infrastructure for post-harvest handling of produce, value addition and market linkages.
  3. Facilitate introduction of innovative technologies and practices that will help to enhance the global competitiveness of focus cluster crops.
  4. Facilitate the dovetailing of resources, including the convergence of various government schemes, to entrench stakeholders in the global value chains
  5. Build capacity of stakeholders and enhance farmers’ income through cluster-specific interventions including brand promotion. Horticulture Cluster Development Programme

Key Features

Pre-production and Production

Support capacity-building of farmers and farm proximate interventions covering crop lifecycle, including planting material, cropcare practices and farm mechanisation until the harvest of the crop.

Post-harvest Management and Value Addition

Support interventions at the cluster level, ranging from post-harvest handling of the produce during transportation to storage, value addition and packaging

Logistics, Marketing and Branding

Support interventions to link cluster produce with consumption markets and seamless logistics for efficient evacuation, cluster branding and outreach in the domestic and export markets.

Coverage and Pattern of Assistance

The clusters have been classified into Mega, Midi, and Mini clusters based on the area coverage. The pattern of assistance for each clusters is proposed to be as under:

Cluster CategoryParameter Area* of cluster in HectaresAmount of financial assistance admissible per cluster (INR in crore)
MegaMore than 15,000Up to 100
Midi5,000-15,000Up to 50
MiniUp to 5,000Up to 25

Eligible Components

  1. Pre-production and production

Formation and promotion of FPOs

  • Capacity-building of Farmers/FPOs and Awareness campaigns/exposure visits
  • Hi-tech nurseries and tissue culture labs and Quality control labs
  • Procurement/import and distribution of quality planting material and Adoption and dissemination of Good Agricultural Practices
  • Promotion of crop-care practices, including Maximum Residue Levels (MRL), INM and IPM practices
  • Micro-irrigation, farm mechanisation and advanced farming techniques like such as precision farming, high-density plantation, and usage of drones etc.
  • Adoption of new technologies and advanced farm machinery to enhance efficiency
  • Real-time market intelligence, IT/digital innovations, IoT infrastructure, traceability block chains, remote sensing, weather station and farm management software, etc.
  • evelopment and dissemination of IEC material
  • Technical assistance from various national and international organisations/universities/other institutes
  • Any other activity/components required within the vertical for holistic cluster development

Post-harvest management and Value

  • • Establishment/expansion/modernisation of cluster-level such as including collection centres, reefer vans, integrated/pack-house, ripening chambers, pre-cooling units, cold rooms, primary processing and value addition
  • Cold storage infrastructure including multi/temperature-controlled atmosphere cold storages and other related utilities
  • Packaging standards and other ancillary facilities required for post-harvest handling of produce
  • Other utilities/ancillaries and material handling equipment related to the project
  • Any other activity/components required within the vertical for holistic cluster development

Logistics, marketing and branding

  • Development of transport, cold chain and other logistic infrastructure from farm gate to the domestic market and up to the exit point for export markets
  • Appropriate packing, storage and material handling infrastructure to promote the use of alternative multi-modal means for seamless transport, leveraging dedicated freight corridors, Krishi Udan, Kisan Rail, inland waterways, etc.
  • Establishment of market linkages in identified domestic and export markets
  • Develop and promote distinct ‘cluster brand’ for identified clusters on common agreed values, such as nutritional and nutraceutical values of variety, Good Agricultural Practices (GAP), food safety and environmental sustainability, among others
  • Leverage e-commerce platforms and digital marketing to bring efficiency and use them as added modes of market outreach
  • Facilitate the development of sea protocols for long-distance transportation
  • GI registration, marketing campaigns (print/electronic), roadshows/buyer-seller meet, and product sampling in target markets
  • Collation and dissemination of market intelligence with inputs on real-time market needs, including export protocols
  • Other utilities/ancillaries and material handling equipment related to the project
  • Any other activity/components required within the vertical for holistic cluster development

Scheme of Setting up of Plastic Park

Objective for Scheme of Setting up of Plastic Park

The Scheme has the following objectives:

1. Increase the competitiveness, polymer absorption capacity and value addition in the domestic downstream plastic processing industry through adaptation of modern, research and development led measures. subsidy for plastic park Scheme of Setting up of Plastic Park

2. Increase investments in the sector through additions in capacity and production, creating quality infrastructure and

other facilitation to ensure value addition and increase in exports.

3. Achieve environmentally sustainable growth through innovative methods of waste management, recycling, etc.

 4. Adopt a cluster development approach to achieve the above objectives

owing to its benefits arising due to optimization of resources and economies of scale.

Funding Pattern

Government of India would provide grant funding up to 50% of the project cost subject to a ceiling of Rs. 40 crore per project.

The remaining contribution in the SPV will be from

the State Government or State Industrial Development Corporation or similar agencies of State Government,

beneficiary industries and loan from financial Institutions.

The equity contribution of the State Government or State Industrial Development Corporation or similar agencies of the State Government shall be at least 26% of the cash equity of the SPV

( excluding value of any land given as equity).

In the event of user enterprises/beneficiary industries/ private developers/JV partners not bringing in the required equity contribution within a period of one year from the date of final approval of the project,

the deficit of cash equity (excluding value of land given as equity) shall financed by the State Government or State Industrial Development Corporation or similar agencies of the State Government. Cost escalation due to any reason has to be borne by the State Government or its agency. Interest earned on central grant by the SPV would treated as a part of the central grant

Financial assistance

1. Each of the projects proposed implemented by a Special Purpose Vehicle (SPV) shall be eligible for grant funding under the scheme up to 50 % of the project cost (as mentioned in the previous section) not exceeding Rs 40.00 Crore per project subject to the following:

 a. A minimum of 25 per cent of Grant-in-aid earmarked for common enabling facilities dedicated to plastic processing industry like characterization, prototyping & virtualization, non-destructive material testing, incubation, training, warehousing, plastic recycling, tooling design, Research & development, etc.

b. Assistance for Administrative and other management support of SPV including the salary of CEO

for the project implementation period shall not exceed 5 % of Grant-in-aid of the overall project cost.

c. Assistance for engaging engineers / architects / construction management / other experts

for execution of civil works shall not exceed 5 % of Grant-in-aid of the overall project cost.

  • Assistance for soft initiatives [as explained at pt. no  in the section above and as approved by SSC] shall be over and above the grant provision for infrastructure components and shall be restricted to 75 % of the cost of soft interventions not exceeding Rs 50 lakhs per project. This amount met from within the total grant to given for each project.  
  • SPVs may dovetail funds from other sources as well for the project, provided there is no duplication of funding for the same component
  • The soft initiatives shall funded during the project implementation phase. Subsequently, it will be the responsibility of the SPV to undertake such initiatives on its own.

Scheme of Setting up of Plastic Park

Scheme of Setting up of Plastic Park Scheme of Setting up of Plastic Park Scheme of Setting up of Plastic Park Subsidy for plastic park

Objective

The Scheme has the following objectives:

1. Increase the competitiveness, polymer absorption capacity and value addition in the domestic downstream plastic processing industry through adaptation of modern, research and development led measures.

2. Increase investments in the sector through additions in capacity and production, creating quality infrastructure and other facilitation to ensure value addition and increase in exports.

3. Achieve environmentally sustainable growth through innovative methods of waste management, recycling, etc.

 4. Adopt a cluster development approach to achieve the above objectives owing to its benefits arising due to optimization of resources and economies of scale.

Funding Pattern

Government of India would provide grant funding up to 50% of the project cost subject to a ceiling of Rs. 40 crore per project. The remaining contribution in the SPV will be from the State Government or State Industrial Development Corporation or similar agencies of State Government, beneficiary industries and loan from financial Institutions. The equity contribution of the State Government or State Industrial Development Corporation or similar agencies of the State Government shall be at least 26% of the cash equity of the SPV( excluding value of any land given as equity).

In the event of user enterprises/beneficiary industries/ private developers/JV partners not bringing in the required equity contribution within a period of one year from the date of final approval of the project, the deficit of cash equity (excluding value of land given as equity) shall be financed by the State Government or State Industrial Development Corporation or similar agencies of the State Government. Cost escalation due to any reason has to be borne by the State Government or its agency. Interest earned on central grant by the SPV would be treated as a part of the central grant.

Financial assistance

1. Each of the projects proposed to be implemented by a Special Purpose Vehicle (SPV) shall be eligible for grant funding under the scheme up to 50 % of the project cost (as mentioned in the previous section) not exceeding Rs 40.00 Crore per project subject to the following:

 a. A minimum of 25 per cent of the Grant-in-aid should be earmarked for common enabling facilities dedicated to plastic processing industry like characterization, prototyping & virtualization, non-destructive material testing, incubation, training, warehousing, plastic recycling, tooling design, Research & development, etc.

b. Assistance for Administrative and other management support of SPV including the salary of CEO for the project implementation period shall not exceed 5 % of Grant-in-aid of the overall project cost.

c. Assistance for engaging engineers / architects / construction management / other experts for execution of civil works shall not exceed 5 % of Grant-in-aid of the overall project cost.

  • Assistance for soft initiatives [as explained at pt. no  in the section above and as approved by SSC] shall be over and above the grant provision for infrastructure components and shall be restricted to 75 % of the cost of soft interventions not exceeding Rs 50 lakhs per project. This amount may be met from within the total grant to be given for each project.  
  • SPVs may dovetail funds from other sources as well for the project, provided there is no duplication of funding for the same component / intervention.  
  • The soft initiatives shall be funded during the project implementation phase. Subsequently, it will be the responsibility of the SPV to undertake such initiatives on its own.
Development of Solar Parks and Ultra Mega Solar Power Projects

Development of Solar Parks and Ultra Mega Solar Power Projects

Objective of Development of Solar Parks and Ultra Mega Solar Power Projects

Solar power projects set up anywhere in the country, however the scattering of solar power projects leads to higher project cost per MW and higher transmission losses. Individual projects of smaller capacity incur significant expenses in site development, drawing separate transmission lines to nearest substation, procuring water and in creation of other necessary infrastructure.

It also takes a long time for project developers to acquire land, get change of land use and various permissions, etc.

which delays the project. To overcome these challenges, the scheme for “Development of Solar Parks and Ultra-Mega Solar Power Projects” was roll out in December,

2014 with an objective to facilitate the solar project developers to set up projects in a plug and play model. Development of Solar Parks and Ultra Mega Solar Power Projects

Salient Features

  • The scheme for “Development of Solar Parks and Ultra Mega Solar Power Projects” was roll out Ministry of New & Renewable Energy on 12-12-2014. Under
  • this scheme, it was proposed to set up at least 25 Solar Parks and Ultra Mega Solar Power Projects targeting over 20,000 MW of solar power installed capacity within a span of
  • 5 years starting from 2014-15.
  • The capacity of the Scheme has enhanced from 20,000 MW to 40,000 MW vide this Ministry’s order dated 21-03-2017. These parks are propos to set up by 2021-22.
  • The scheme envisages supporting the States/UTs in setting up solar parks at various locations in
  • the country with a view to create required infrastructure for setting up of solar power projects. The solar parks provide suitable developed land with all clearances, transmission system, water access, road connectivity, communication network, etc.
  • The scheme facilitates and speed up installation of grid connected solar power projects for electricity generation on a large scale.
  • All the States and Union Territories are eligible for getting benefit under the scheme.
  • The capacity of the solar parks shall be 500 MW and above. However, smaller parks are also considered where contiguous land difficult to acquire in view of difficult terrain and where there is acute shortage of non-agricultural land.
  • The solar parks are develop in collaboration with the State Governments and their agencies, CPSUs, and private entrepreneurs. The implementing agency is termed as Solar Power Park Developer (SPPD). There are 7 modes for selection of SPPDs.

CFA Pattern:

  • Under the scheme, the Ministry provides Central Financial Assistance (CFA) of up to Rs. 25 lakh per solar park for preparation of Detailed Project Report (DPR). Beside this,
  • CFA of up to Rs. 20.00 lakh per MW or 30% of the project cost, including Grid-connectivity cost, whichever is lower, is also provided on achieving
  • the milestones prescribed in the scheme.

  • the CFA of Rs. 20 Lakh /MW is apportionon 60:40 basis towards development of internal infrastructure of solar park to the SPPD and for development of external transmission system to Central Transmission Utility (CTU)/ State Transmission Utility (STU) respectively

  • i.e. Rs. 12 lakh per MW or 30% of the project cost whichever is lower is provided to the SPPDs towards development of internal infrastructures
  • if the solar parks and Rs. 8 lakh per MW or 30% of the project cost whichever is lower is provided to the CTU or STU as the case may be towards development of external transmission system.
Pharmaceutical Industry for Common Facilities

Assistance to Pharmaceutical Industry for Common Facilities

The Scheme

(i) A Central Sector Scheme for Assistance to Pharmaceutical Industry for Common Facilities.

(ii) The Scheme would implemented in a Public Private Partnership (PPP) mode through one time grant-in-aid to be released in various phases for creation of identified infrastructure and common facilities to a Special Purpose Vehicles (SPVs) set up for the purpose.

(iii) The various aspects and outcomes of the Scheme will reviewed after two years from the date of its initiation. Subsidy For Pharma Industry

Objective

(i) Strengthening the existing infrastructure facilities in order to make Indian Pharma Industry a global leader in Pharma Sector.

 (ii) Easy access to standard testing facilities and value addition in the domestic Pharma Industry

especially to SMEs through creation of common world class facilities for increased competitiveness.

(iii) To help industry meet the requirements of standards of environment at a reduced cost

through innovative methods of common Waste Management System.

 (iv) Exploit the benefits arising due to optimization of resources and economies of scale.

Common Facilities Common

Facilities under the Sub-Scheme will consist of creation of tangible “assets” as Common Facility Centers (CFCs). Some of the indicative activities under the Common Facilities are:-

(i) Common Testing Centres

 (ii) Training Centres

 (iii) R&D Centres

 (iv) Effluent Treatment Plants

(v) Common Logistics Centres The above list of common facilities is illustrative and each cluster could have its own specific requirement based on the nature of units being set up and the products proposed to manufactured.

The Scheme Steering Committee (SSC) shall approve the project components and funding thereof depending upon the merits of the proposal.

Salient Features of the Scheme

(i) The land and building for CFC shall be provided by SPV concerned as per cost indicated in

the detailed project report.

In case the SPV provides an existing land and building, the cost of the same will decided on the basis of valuation report prepared by an approved agency of Central/State Government Departments/Financial Institutions (FIs)/Public Sector Banks and the cost of land and building may taken towards contribution for the project.

Though the land and building is included in the total project cost, however, the Grant-in-Aid from GoI will not utilized for these components.

 (ii) Escalation in the cost of project over and above the sanctioned amount,

due to any reason will be borne by the SPV.

The Central Government shall not accept any financial liability arising out of operation of any CFC.

 (iii) The Grant-in-Aid shall not be available to any individual production units, if any,

owned by a member of the SPV.

 (iv) The CFC utilized by the SPV members and also by other pharma units on ‘user charges’ basis to decided by the SPV.

(v) User charges for services of CFC shall be on differential rate basis, lower fee for small units and higher fee for medium ones.

However, the user charges will graded in such a manner that average charges will be lesser than prevailing market prices, as decided by the Governing Council of the SPV.

The SPV members would given reasonable preference in user charges.

(vi) An MoU shall entered into among the GOI, the State Government concerned and the SPV for CFC projects

Financial Assistance

Maximum limit for the grant in aid under this category would be Rs 20.00 crore per cluster or 70% of the cost of project whichever is less.

The cost of project includes cost of land, building, administrative and management support expenses including the salary of CEO, engineers,

other experts and staff during the project implementation period, preliminary expenses, machinery & equipment, miscellaneous fixed assets and

other support infrastructure such as water supply, electricity and margin money for working capital.

Grant-in-Aid from GoI will not utilized towards land and building components of the project

Assistance for Administrative and other management support of SPV during

the project implementation period shall not exceed 5 % of the Grant-in-aid

Promotion of Medical Devices Park Scheme

Guidelines of the Scheme “Promotion of Medical Devices Parks”

Promotion of Medical Devices Park Scheme Promotion of

Objectives

  1. Creation of world class infrastructure facilities in order to make Indian medical device industry global leader. subsidy for medical devices
  2. Easy access to standard testing and infrastructure facilities through creation of world class Common Infrastructure Facilities for increased competitiveness will result into significant reduction of the cost of production of medical devices leading to better availability and affordability of medical devices in the domestic market Exploit the benefits arising due to optimization of resources and economies of scale.

Common Infrastructure Facility (CIF):

The Common facilities with capacity commensurate with the expected number and type of medical device manufacturing units in the park. Some of the indicative activities under the Common facilities/centres are:

 i. Component Testing Centre/ESDM/PCB/Sensors facility

 ii. Electra-magnetic interference & Electra Magnetic Compatibility Centre

iii. Biomaterial / Biocompatibility /Accelerated Aging testing centre iv. Medical grade moulding/milling/injection moulding/machining/tooling centre

 v. 3D designing and printing for medical grade products. vi. Sterilization/ETO/Gamma Centre

vii. Animal Lab and Toxicity testing centre

viii. Radiation testing centre, etc.

 ix. Radiology Tube/Flat Panel Detectors/MRI Magnets/ Piezo electrical crystals/power electronics facility

x. Solid waste management/ETP/STP/Electronic Waste management unit

 xi. Common Warehouse & Logistics (Clearing and Forwarding, Insurance, Transportation. Customs, Weighbridges, etc.) centre

xii. Emergency Response Centre/Safety/Hazardous Operations audit centre

 xiii. Centre of Excellence/Technology lncubator/ ITI/Training Centres

Medical Device Park:

 For the purpose of this Scheme, a Medical Device Park means a designated contiguous area of land with common infrastructure facilities for the exclusive manufacturing of medical devices. 3.3. Project cost: The cost of establishing CIF in the Medical Device Park.

Scope of the Scheme

This is a Central Sector Scheme.

  1. .Total financial outlay of the Scheme is Rs. 400 Crore.
  2. Four Medical Device Parks will be supported under the Scheme.
  3. Maximum grant-in-aid for one Medical Device Park will be limited to Rs 100 crore.
  4. The duration of the Scheme is from FY 2020-2021 to FY 2024-2025.
  5. Under the Scheme, a one-time grant-in-aid will be provided for creation of common infrastructure facilities in selected Medical Device Park proposed by a State Government.
  6. The Scheme will be implemented through a State Implementing Agency (SIA), a legal entity, set up by the concerned State Government.
  7. The grant-in-aid will be 70% of the project cost of the common infrastructure facilities. In case of North Eastern States and Hilly States (i.e. Himachal Pradesh, Uttarakhand, UT of Jammu & Kashmir and UT of Ladakh), the grant-in-aid will be 90% of the ClF
Promotion of Bulk Drug scheme subsidy for bulk drug park Park scheme

Promotion of Bulk Drug Parks

To promote setting up of bulk drug parks in the country for providing easy access to world class Common Infrastructure Facilities (CIF) to bulk drug units located in the park in order to significantly bring down the manufacturing cost of bulk drugs and thereby make India self-reliant in bulk drugs by increasing the competitiveness of the domestic bulk drug industry. Promotion of Bulk Drug Parks scheme subsidy for bulk drug park

To help industry meet the standards of environment at a reduced cost through innovative methods of common waste  management system.

Active Pharmaceutical Ingredient (API):

 Any substance or mixture of substances intended to be used in the manufacture of a drug (medicinal) product and that, when used in the production of a drug, becomes an active ingredient of the drug product. Such substances are intended to furnish pharmacological activity or other direct effect in the diagnosis, cure, mitigation, treatment, or prevention of disease or to affect the structure or function of the body.

Common Infrastructure Facility (CIF):

The Common facility with capacity commensurate with the expected number of manufacturing units in the bulk drug park, provided by the State Implementing Agency (SIA). Common facilities include:

 i. Central Effluent Treatment Plant(s) (CETP)

 ii. Solid waste management

 iii. Storm water drains network

 iv. Common Solvent Storage System, Solvent recovery and distillation plant

 v. Common Warehouse

vi. Dedicated power sub-station and distribution system with the necessary transformers at factory gate

 vii. Raw, Potable and Demineralised Water

viii. Steam generation and distribution system

 ix. Common cooling system and distribution network

 x. Internal road network, Compound Wall Note: The cost of these components (mentioned at serial no. x) shall not exceed 15% of the total project cost.

xi. Common logistics (Clearing and Forwarding, Insurance, Transportation, Customs, Weighbridges, etc.)

xii. Advanced laboratory testing Centre, suitable for even complex testing/ research needs of APIs, including microbiology laboratory and stability chambers

xiii. Emergency Response Centre

xiv. Safety! Hazardous operations audits centre

xv. Centre of Excellence:

 a) Regulatory awareness facilitation Centre

 b) Technology business incubator

 c) Intellectual Property Rights management services

 d) Process! technology development laboratory! Research Laboratory! with pilot plants run by eminent scientists with track record of such competitive technology development for import substitution

e) Industry Academia linkage Centre

 f) Training centre Bulk Drug Park: For the purpose of this Scheme, a bulk drug park means a designated contiguous area of land with common infrastructure facilities for the exclusive manufacture of APIs or Dis or KSMs.

Scope of the Scheme

 1. This is a Central Sector Scheme.

2. Total financial outlay of the Scheme is Rs. 3000 Crore.  

3. Three bulk drug parks will be supported under the Scheme.

4. Maximum grant-in-aid for one bulk drug park will be limited to Rs 1000 crore.

5. The duration of the Scheme is from FY 2020-202 1 to FY 2024-2025.

6. Under the scheme, a one-time grant-in-aid will be provided for creation of common infrastructure facilities in selected Bulk Drug Park proposed by a State Government.

7. The scheme will be implemented through a State Implementing Agency (SIA), a legal entity, set up by the concerned State Government.

8. The grant-in-aid will be 70% of the project cost of the common infrastructure facilities (CIF). In case of North Eastern States and Hilly States (i.e Himachal Page 3 of 3:1. Pradesh, Uttarakhand, UT of Jammu & Kashmir and UT of Ladakh), the grantin-aid will be 90% of the common infrastructure facilities.

 9. The Formulation units shall not be permitted in the Park.

Production Linked incentive scheme for steel subsidy for steel manufacturing

Production Linked Incentive (PLI) Scheme for Specialty Steel

Objectives of PLI Scheme for Steel sector

The objective of PLI scheme for ‘speciality steel’ is to promote manufacturing of specialty steel grades within the country by providing financial incentives. Presently the country operates at the low end of value chain in steel manufacturing PLI scheme for steel sector

The PLI incentive is expected to boost the domestic production of specialty steel by,


• attracting significant investment
• infusing technology and know-how
• promoting exports.

The total outlay will be ₹6,322 crore.

Incentive under the scheme will be provided for a maximum period of five (5) years.
The first incentive will be payable from 2023-24 based on the commercial production of 2022-23.   

The scheme covering Specialty steel grades shall be applicable for the following five (05) indicative product categories:
i. Coated/Plated Steel Products
ii. High Strength/ Wear resistant Steel
iii. Specialty Rails
iiii. Alloy Steel Products and Steel wires
v. Electrical Steel

Eligibility

A company registered in India under the companies Act 2013, that is engaged in manufacturing of the identified “Specialty steel” grades, subject to the input material being melted and poured within the country using iron ore/scrap/sponge iron/pellets etc. shall be eligible to apply for incentive under the scheme. End to end manufacturing will thus take place within the country.

Scheme Benefits

 Baseline (2019-20)  Projected (2026-27)  In % 
VolumeValueVolumeValue 
(Million tonnes)(Rs. Cr)(Million tonnes)(Rs. Cr) 
Production17.697,28742.22,42,838140%
Import3.729,2560.97355-76%
Export1.69,4745.533,024244%

• 

Projected production of the identified ‘specialty steel’ grades is expected to more than double by 2026-27. (Baseline production is 17 million tonnes, projected production is 42 million tonnes).
• Projected export (in volume) is expected to become more than 3 times the present volume.
• import (in volume) is expected to reduce by 4 times.
• An expected investment of ₹39,625 crore by 2029-30 in ‘specialty steel’.

Calculation

Incentive is calculated based on the incremental production which is multiplied by the incentive slab as applicable and the weighted average sales price of the product. For example,
A = Incremental sales in current year with reference to previous year or the base year whichever is higher

B = Weighted Average sale price (net of taxes) in current year
C = Weighted Average sales price (net of taxes) in the base year (2019-20)
Incentive = (A/B) x (B or C, whichever is lower) x (PLI rate as applicable)/100
*Current year means the year for which PLI has been claimed.

Rural Infrastructure Development Fund

Government of India created the RIDF in NABARD in 1995-96, with an initial corpus of Rs.2,000 crore. With the allocation of Rs.29,848 crore for 2020-21 under RIDF XXVI, the cumulative allocation has reached Rs.3,78,348 crore, including Rs. 18,500 crore under Bharat Nirman. RIDF scheme rural Infrastructure Development Fund

Eligible Activities

At present, there are 37 eligible activities under RIDF as approved by GoI. (Annexure I). The eligible activities are classified under three broad categories i.e.

Agriculture and related sector

Social sector

Rural connectivity

Annexure I – Eligible Activities

Eligible Institutions

State Governments / Union Territories

State Owned Corporations / State Govt. Undertakings

State Govt. Sponsored / Supported Organisations

Panchayat Raj Institutions/Self Help Groups (SHGs)/ NGOs

{provided the projects are submitted through the nodal department of State Government (i.e Finance Department) }

Mode of Finance

NABARD releases the sanctioned amount on reimbursement basis except for the initial mobilisation advance @30% to North Eastern & Hilly States and 20% for other states.

Quantum of Loan and Margin/Borrower Contribution

The project for rural connectivity, social and agri-related sector, are eligible for loans from 80 to 95% of project cost. Cost escalation proposals for certain genuine reasons are consider within two years of sanction. i.e

Rate of interest:

With effect from 01 April 2012, the interest rates payable to banks on deposits placed with NABARD and loans disbursed by NABARD from RIDF have linked to the Bank Rate prevailing at that point of time.

Repayment period:

Loan to be repaid in equal annual instalments within seven years from the date of withdrawal, including a grace period of two years. The interest shall paid at the end of each quarter i.e. 31 March, 30 June, 30 September and 31 December every year, including grace period.

Penal Interest:

Interest on the overdue interest amount is to paid at the same rate as applicable to the principal amount.

Security for Loan:

Loans sanctioned would secured by the irrevocable letter of authority/mandate registered with Reserve Bank of India/any other Scheduled Commercial Bank, Time promissory Note(TPN), Execution of unconditional Guarantee from State Governments

(Additionally required for support to State Government sponsored organisations, etc.) and acceptance of terms and conditions of sanction in the duplicate copy of the sanction letter.

Phasing of RIDF projects:

The implementation phase for projects sanction is spread over 2-5 years, varying with type of the project and location of the State.

Additional Information

Cumulative Sanctions and Disbursements

Below is the list of annual and monthly cumulative sanctions and disbursements under RIDF

Monthly

Annual

Monitoring mechanism for RIDF Projects

Evaluation Studies

Rural Infrastructure Promotion Fund (RIPF)

Long Term Irrigation Fund

Ongoing Projects

Completed Projects

Production Linked incentive scheme for steel subsidy for steel manufacturing

Production Linked Incentive (PLI) Scheme for Specialty Steel

ing

Objectives of PLI Scheme for Specialty Steel

The objective of PLI scheme for ‘speciality steel’ is to promote manufacturing of specialty steel grades within the country by providing financial incentives. Presently the country operates at the low end of value chain in steel manufacturing subsidy for steel manufacturing

The PLI incentive is expected to boost the domestic production of specialty steel by,


• attracting significant investment
• infusing technology and know-how
• promoting exports.

The total outlay will be ₹6,322 crore.

Incentive under the scheme will be provided for a maximum period of five (5) years.
The first incentive will be payable from 2023-24 based on the commercial production of 2022-23.   

The scheme covering Specialty steel grades shall be applicable for the following five (05) indicative product categories:
i. Coated/Plated Steel Products
ii. High Strength/ Wear resistant Steel
iii. Specialty Rails
iiii. Alloy Steel Products and Steel wires
v. Electrical Steel

Eligibility

A company registered in India under the companies Act 2013, that is engaged in manufacturing of the identified “Specialty steel” grades, subject to the input material being melted and poured within the country using iron ore/scrap/sponge iron/pellets etc. shall be eligible to apply for incentive under the scheme. End to end manufacturing will thus take place within the country.

Scheme Benefits

 Baseline (2019-20)  Projected (2026-27)  In %
VolumeValueVolumeValue
(Million tonnes)(Rs. Cr)(Million tonnes)(Rs. Cr)
Production17.697,28742.22,42,838140%
Import3.729,2560.97355-76%
Export1.69,4745.533,024244%

• Projected production of the identified ‘specialty steel’ grades is expected to more than double by 2026-27. (Baseline production is 17 million tonnes, projected production is 42 million tonnes).
• Projecte export (in volume) is look for to become more than 3 times the present volume.
• import (in volume) is to reduce by 4 times.
• An expected investment of ₹39,625 crore by 2029-30 in ‘specialty steel’.

Calculation

Incentive is calculated based on the incremental production which is multiplied by the incentive slab as applicable and the weighted average sales price of the product. For example,
A = Incremental sales in current year with reference to previous year or the base year whichever is higher

B = Weighted Average sale price (net of taxes) in current year
C = Weighted Average sales price (net of taxes) in the base year (2019-20)
Incentive = (A/B) x (B or C, whichever is lower) x (PLI rate as applicable)/100
*Current year means the year for which PLI has been claimed.

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