The scheme will support integrated interventions which shall be implemented through specialised Implementing Agencies (Farmers/ FPOs/ Cooperatives/ Private Companies etc.). The interventions under the Programme have been classified into the following two verticals:
Peri-urban production: It will support capacity-building of farmers and farm proximate interventions covering the crop life cycle, including planting material, crop-care practices (GAP), micro-irrigation, protected cultivation infrastructure and farm mechanisation till the harvest of the crop, in identified clusters within a radius of 50-100km from the consumption center (See chapter on Definition and eligibility of a cluster).
PHM and distribution: This vertical will support interventions starting from post-harvest handling of produce to its retail sale. Including the development of supply chain infrastructure to seamlessly connect the peri-urban production units/ farms to retail markets. Interventions will include, refer vans/ trucks for evacuation of produce, city logistics hub/ distribution centers (equipped with sorting and grading lines, packaging lines etc.), retail kiosks and refrigerated vending carts etc. among others
Eligible Components
|
Vertical |
Component Type |
Details |
|
Peri-urban Production |
Farmer’s Component (To Farmer/FPO) |
– Cost of quality planting material – Farm machinery at farmer/collective level – Micro irrigation – Protected cultivation infrastructure – Hydroponics and aeroponics setup – Capacity building on INM and IPM practices – Adoption of Good Agricultural Practices (GAPs) – Innovative technologies (e.g., fruit netting, bagging, portable weather stations, hail-nets, crop covers, frost protection, trellis structures) – Precision farming – Aggregation and primary processing centers – Crates and bins for produce handling |
|
IA Component |
– Formation and promotion of FPOs – Capacity-building of Farmers/ FPOs – Awareness campaigns and exposure visits – Dissemination of GAPs – Crop-care practices (MRL, INM, IPM) – Micro-irrigation, farm mechanisation, advanced techniques (drones, high-density plantation, precision farming) – Adoption of advanced machinery and technologies – Digital and IT infrastructure (market intelligence, IoT, remote sensing, weather stations, farm management software, traceability blockchains) – IEC material development and dissemination – Technical assistance from national/international institutes |
|
|
PHM and Distribution |
IA Component |
– Aggregation infrastructure (collection centers, city distribution centers) – Cluster-level infrastructure (pack-houses, ripening chambers, pre-cooling units, cold rooms, reefer vans, processing/value addition units) – Cold storage infrastructure (multi/temp-controlled storages and utilities) – Packaging infrastructure and materials (innovative packaging methods like MAP, nitrogen flushing) – Retail infrastructure (retail points/kiosks, reefer vehicles) – Ancillary facilities for post-harvest handling – Trainings on post-harvest practices – Logistic infrastructure (transport, cold chain, material handling) – E-commerce platform integration and digital marketing – Customisation on Digital Public Infrastructure for traceability, blockchain & IoT – Marketing campaigns, trade fairs, buyer-seller meets, product sampling |
Financial Assistance
- The total project cost shall be determined based on the Business Case/Detailed Project Report (DPR) submitted by the Implementing Agency (IA). This comprehensive document shall outline the scope, objectives, financial projections, and implementation strategy of the proposed project. The total project cost is then divided into two main components: the IA Component and the Farmer’s Component.
- Minimum 40% of the total financial assistance under a project shall comprise of the farmer components
Cost Norms Compliance:
Financial assistance for both Farmer and IA components will follow predefined cost norms (detailed later in the guidelines).Credit Linkage:
- IA Components: Financial assistance will be credit-linked.
- Farmer/Farmer Collectives Components: Not credit-linked.
- IA Component Requirements:
- Covers the full financial scope required by the Implementing Agency.
- All costs must be justified and align with eligibility criteria and cost norms.
- Disbursement for IA:
Funds will be disbursed in three instalments through a Trust and Retention Account (TRA) to ensure transparency. - Farmer’s Component Disbursement:
- Direct financial support to farmers as per approved norms.
- Disbursed directly to vendors via Direct Benefit Transfer (DBT) through the scheme portal.
- Avoiding Duplication:
Farmers can benefit from other schemes, only if there’s no duplication of support for the same component and acreage. - Subsidy Tapering for Recurring Inputs:
- 1st season: 100% subsidy
- 2nd season: 50% subsidy
- 3rd season onwards: No subsidy
- Additional Incentive (Farmers):
5% extra assistance (in absolute terms) in line with CDP scheme provisions. - Innovation Incentive (IA):
- Up to 10% of project cost for innovative components not covered by other schemes.
- Assistance limited to 50% of actual cost.
- Innovative Component Examples:
- Automatic weather stations
- IPR costs for new germplasm
- Big data analytics
- Energy-saving technologies (e.g., ice batteries)
- Real-time crop planning systems
- Controlled environment agriculture
- Farm mechanisation for small holdings
Subsidy Calculation (IA):
Lower of the two will be considered:
- (A) Bank-determined project cost (excluding land)
- (B) Cost as per scheme norms
Civil Work Limit:
Civil work costs must not exceed 30% of the total project cost for subsidy calculation
