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NATIONAL BANK FOR AGRICULTURE
AND RURAL DEVELOPMENT
Slaughter
houses have been under the control of municipal authorities/local bodies but no
systematic efforts have been made so far to make meat production a commercial
activity. Barring a few export-oriented abattoirs, it has been in the hands of those who
have no knowledge of slaughter house hygiene, sanitation, meat quality and animal
rights.
2.
to any company,
partnership firm, NGO and individual entrepreneurs. Capital subsidy @ 50% of the
total financial outaly of the project with the upper ceiling as indicated in para 6.1 and
6.2 of the guidelines shall be available for all categories of the promoters.
4. The Department of Animal Husbandry, Dairying and Fisheries, Ministry of
Agriculture, Government of India, is the focal department for the scheme. NABARD
will be administering the subsidy and monitoring the progress of the scheme besides
providing refinance support to the eligible financing banks for the term loan extended
under the scheme. Extent and interest rate of refinance will be as per instructions
issued by NABARD from time to time.
5.
Committee (CMC) on a half yearly basis and the State Level Sanctioning and
Monitoring Committee (SLSMC) will review the progress on quarterly basis. The
participating banks will conduct periodic inspections of the units and give a feedback
to the SLSMC on a consolidated basis.
6.
The SLSMCs in each State are expected to meet quickly after their constitution
and decide whether proposal concerning each beneficiary is to be placed before the
Committee for approval or proposals of a district/cluster are to be firmed up and
bunched together for consideration of the Committee or the Committee would ratify
the action taken by the financial institution on individual projects.
7.
offices and branches in the concerned states with instructions to implement the
scheme expeditiously and advise your Controlling offices to submit the proposals to
the Regional Offices of NABARD in the respective states. NABARD will release subsidy
subject to availability of funds from GoI. You may also take steps for giving wide
publicity to the scheme.
approached for popularising the scheme and mobilising applications from prospective
promoters. A copy of the operational guidelines of the scheme is enclosed. English
and Hindi versions of the operational guidelines would be placed in the website of
NABARD
Please acknowledge receipt.
Yours faithfully
1
(S C Kaushik)
Chief General Manager
Encl : A copy of the operational guidelines
16. The Chairman, Indian Banks Association, Blocks 2 and 3, Stadium House, 6 th
Floor, 81-83, Veer Nariman Road, Mumbai - 400020
17. The Managing Director, National Federation of State Cooperative Banks Ltd.
(NASCOB), J.K. Chambers, 5th Floor, Plot No. 76, Sector-17, Vashi, Navi Mumbai
18. The Managing Director, SCARDB Federation, 701, BSEL Tech Park, 7 th Floor, A
Wing, Opp. Railway Station, Vashi, Navi Mumbai - 400705
19. The Chief General Manager, All Departments in Head Office, National Bank for
Agriculture & Rural Development, Mumbai
21. The Registrar of Cooperative Societies, Andhra Pradesh, Meghalaya and Uttar
Pradesh
23. The Chief General Manager / General Manager / Officer-in-Charge, National Bank
for Agriculture & Rural Development, Andhra Pradesh, Meghalaya and Uttar
Pradesh. A copy of the circular may be made available to each of the District
Development Managers.
(A.S. Patil)
General Manager
Meat sector is one of the poorly organised sectors in our country. Though the
consumption of meat is on the increase, the quality aspects have remained unchanged.
Slaughterhouses have been under the control of municipal authorities and no effort had been
made to make meat production an economic activity. Lack of finance, poor private participation,
and environmental problems are some of the other constraints felt.
1.2
With enactment of Food Safety and Standards Act 2006, all the food items produced in
the country will have to meet a certain level of quality standards in terms of hygiene prescribed.
Meat is probably one item, which has not been paid adequate attention in this regard. At present
slaughter houses in rural areas are under the control of local bodies like Panchayats and
Municipalities. The slaughterhouses maintained by them get least priority and no standards are
being insisted on. Production of meat in them cannot be recognized as meat from organized
sector.
Schemes to improve slaughterhouses formulated in the past have not been very effective, since
most of them concentrated on large urban-based slaughterhouses. Even at present, Ministry of
Food Processing has prepared a scheme to support large modern slaughterhouses for supply of
meat to cities. These will be units of large outlay and help produce wholesome meat for the
consumers in these cities.
1.3 To make this sector dynamic, targeting large slaughterhouses will not suffice. Addition of
value at the local level will be more ideal, as it will limit transport of animals, contain
environmental pollution to local levels, and help animal owners to earn better income by
providing them direct access to market. It is important to introduce private participation and
make the activity a business. The past shows that slaughterhouses at industrial scale have been
successful only in the private sector where they are run as meat producing centres.
1.4
Service slaughterhouses have not been self-sustaining, as the service charges collected do
not meet even the running expenses leading to maintenance of units. Small slaughterhouses have
not been tried on commercial lines, except in few cases and even in them no systemic
investments have been made. A pilot scheme to encourage establishment of rural slaughterhouses
in three states and help entrepreneurs to undertake the activity as a bankable venture is
envisaged.
2. Objectives of the Scheme
i. To establish a new system of slaughter of livestock along with network of cold chain and
distribution on commercial basis.
ii. To develop models of slaughterhouses which can be run by private entrepreneurs in rural and
semi urban areas with population of less than 50,000.
iii. To encourage value addition to the products in rural areas so that livestock owners get better
income and wastage of byproducts of slaughterhouses is avoided.
iv. To ensure hygiene in meat production from the slaughterhouse to consumer table by
establishing cold chain and distribution system.
v. Minimize clandestine slaughter and provide pollution free environment.
3.Definition
For the purpose of the scheme, rural slaughter houses are those which are located in places with a
population of less than 50,000.
4. Implementing period and Area of Operation
The pilot phase will be implemented during the remaining XI plan period in three states viz.
Andhra Pradesh, Meghalaya and Uttar Pradesh on a first come first serve basis.
5.Eligibility
5.1.Any company, partnership firm, NGO and individual entrepreneur would be eligible for the
assistance if they set up/ modernize the slaughter houses / poultry dressing units as per guidelines
laid down. They should have the necessary approval of the local body to take up the work.
5.2. Each entrepreneur would be eligible to avail benefit under the scheme for two units per State
with a ceiling of four units under the scheme.
6.. Project Costs and ceilings on Subsidy.
6.1. The indicative project costs and ceiling on subsidy for different activities are given below
S.No
Component
(1)
(2)
1 Establishing small/medium
/large slaughter houses
a
Model I - upto 50 small
ruminants
Total financial
outlay Rs lakh
(3)
66.00
(1)
b
(2)
Model II -upto 25 large
ruminants and 50 small
ruminants
Model -III - upto 50 large
and 200 small ruminants
(3)
99.00
483.00
(4)
50 % of total financial outlay as back
ended subsidy subject to a ceiling of
Rs 45 lakh
50% of total financial outlay as back
ended subsidy subject to a ceiling of
Rs 200 lakh
Back ended capital subsidy - 50% of the TFO subject to ceiling as per para 6.1
Bank Loan
In case the total financial outlay is more than that indicated above, either the entrpreneur can
bring that amount as additional margin or the bank can sanction it as a loan.
The borrowers will prepare a detailed project report either for establishment of new
with their appraisal report and sanction letter to the concerned Regional Office of NABARD for
sanction of subsidy. Format of covering letter is given as Annexure I.
11. Sanction of Subsidy
11.1 State Level Sanction and Monitoring Committee is constituted with Secretary / Principal
Secretary, Animal Husbandry Department of the State Government as the Chairman and
representatives from Department of Animal Husbandry, Dairying and Fisheries (DAHD&F),
GoI, lead bank of the State, Meat Industry, representative of Municipal Affairs / Panchayatiraj
Department of State Government, expert on meat science and OIC of NABARD Regional Office
as members. Initially NABARD shall convene the meeting as and when the projects are received
for sanction and later at quarterly intervals to review the progress of the scheme. Banks that
have submitted projects for sanction may be invited as special invitees.
The SLSMC in each State are expected to meet quickly after its constitution and decide whether
proposal concerning each beneficiary is to be placed before the Committee for approval or
proposals of a district/cluster are to be firmed up and bunched together for consideration of the
Committee or the Committee would ratify the action taken by the financial institution on
individual projects.
11.2 Projects received from the banks shall be placed before SLSMC, which will take a
decision on sanctioning or otherwise of projects upto an outlay of Rs 2.00 crore. In respect of
projects with an outlay exceeding Rs 2.00 crore, the SLSMC shall forward the projects along
with their comments to Joint Monitoring Committee at National level, through NABARD Head
Office.
11.3
Joint Monitoring Committee (JMC) at National level will be constituted with members
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approach concerned Regional Office of NABARD for release of first instalment of subsidy.
Format for application for release of advance subsidy is given as Annexure II
12.2
NABARD, on receipt of claim form from the participating bank will release 50%
advance subsidy to the participating bank for keeping the same in the Subsidy Reserve Fund A/c
(Borrower-wise). The release of subsidy by NABARD will be subject to availability of funds
from GoI.
12.3
When the project is nearing completion, the agency will inform the participating bank ,
who in turn will inform the concerned Regional Office of NABARD for taking up joint
monitoring of the project.
12.4
A team from NABARD, local animal husbandry department and the financing bank
The bank will then submit the claim for final capital subsidy as per the format given as
Annexure III along with the joint monitoring report in the prescribed format at Annexure IV to
NABARD, Regional Office, immediately after commissioning the unit.
12.6
After crediting the final installment of subsidy in the reserve fund of the borrower, a
Repayment Period will depend on the nature of activity and will vary between 5 to 9
years. The repayment period may include a maximum, grace period of 2 years (to be decided by
the financing bank as per needs of individual projects).
13.2
The repayment schedules will be drawn on the total amount of the loan (including
subsidy) in such a way that the subsidy amount is adjusted after liquidation of net bank loan
(excluding subsidy).
14. Rate of Interest
Rate of interest on term loan shall be as per RBI guidelines and declared policy of the bank in
this regard.
15.
Security
The security for availing the loan will be as per guidelines issued by RBI from time to time.
11
16.
16.1
subject to maximum of 9 months period from the date of disbursement of the first instalment of
loan which may be extended by a further period of 3 months, if reasons for delay are considered
justified by the financial institution concerned.
16.2
If the project is not completed within the stipulated period, benefit of subsidy shall not
be available and advance subsidy placed with the participating bank, if any, will have to be
refunded forthwith to NABARD.
17.
NABARD would provide refinance assistance to commercial banks, RRBs, SCBs SCARDBs
and other such eligible institutions. Quantum and rate of interest on refinance will be as decided
by NABARD from time to time.
18. Adjustment of subsidy
18.1 The capital subsidy will be back ended with minimum 3 Years lock-in period.
18.2 The capital subsidy should be refunded if the account becomes an NPA.
18.3 The capital subsidy will be adjusted against the last few installments of repayment of bank
loan.
18.4 The capital subsidy admissible under the scheme will be kept in the Subsidy Reserve Fund
Account (Borrower-wise) in the books of the financing bank. No interest will be charged on
this by the bank. In view of this, for the purposes of changing interest on the loan component,
the subsidy amount should be excluded. The balance lying to the credit of the Subsidy Reserve
Fund Account will not form part of Demand and Time Liabilities for calculation of CRR and
SLR.
19. Monitoring
19.1 At the National level a Central Monitoring Committee will review the progress on half
yearly basis.
19.2 The SLSMC will review the progress on quarterly basis.
19.3 The participating banks should conduct periodic inspections of the units and give a feedback
to the SLSMC on a consolidated basis.
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19.4 The progress report of the scheme as per format at Annexure VI shall be sent by
NABARD to the Department of Animal Husbandry, Dairying and Fisheries, MoA, GoI, on
a monthly basis.
20.
Other Conditions
The participating banks will adhere to the norms of appraising the projects regarding
All possible care will be taken to avoid duplication of projects under the scheme with similar
The participating banks should ensure insurance of the assets created under the project,
Fisheries,
Pre and post completion inspection of the project shall be undertaken by the participating
bank to verify physical, financial and operational progress as and when required.
DAHD&F reserves the right to modify, add and delete any terms / conditions without
DAHD&F reserves the right to recall any amount given under the scheme without assigning
Any other pre and post inspection would be undertaken by DAHD&F representative to find
Other operational instructions issued by DAHD&F / NABARD from time to time will be
strictly followed.
13
ANNEXURE I
Lr.No.
Date
Sir
Pilot scheme for establishment / modernisation of rural slaughter houses
-------------------------------------------------------------------------------------
( Authorised signatory)
Controlling Office
14
ANNEXURE II
CLAIM FORM FROM THE CONTROLLING OFFICE OF THE BANK FOR RELEASE OF CAPITAL
SUBSIDY(ADVANCE) IN RESPECT OF PILOT SCHEME FOR ESTABLISHMENT /
MODERNISATION OF RURAL SLAUGHTER HOUSES
(To be submitted to the concerned Regional Office of NABARD)
NAME OF THE BANK :
DATE:
2.
Place :
Date :
Manager(financing bank)
Authorised signatory
Controlling Office of the bank
15
The above claim is scrutinised. HO is requested to confirm the release of Advance subsidy
amount of Rs.
(Rupees
only)
to be released to ______________ (Name of the Bank).
(Signature)
AGM/DGM
(NABARD, RO)
__________________________________________________________________________
(For the use of ICD, NABARD HO)
__________________________________________________________________________
Release of Subsidy - Confirmation
RETURN FAX MESSAGE
Date
__________________________________________________________________________
FROM :
CGM, ICD, NABARD, HO, MUMBAI
FOR:
CGM/GM/OIC, REGIONAL OFFICE
NABARD
__________________________________________________________________________
Pilot scheme for establishment / modernization of rural slaughter houses- Release of
advance subsidy - confirmation
The claim No.
is admitted. Since sufficient funds are available with NABARD,
under the scheme, the above proposal of releasing advance subsidy amount of
Rs............................. (Rupees ................................................................... only) is confirmed for
release.
AGM / DGM
ICD, NABARD-HO, MUMBAI
Date :
ANNEXURE
16
III
CLAIM FORM FROM THE CONTROLLING OFFICE OF THE BANK FOR RELEASE OF CAPITAL
SUBSIDY (FINAL) IN RESPECT OF PILOT SCHEME FOR ESTABLISHMENT /MODERNISATION
OF RURAL SLAUGHTER HOUSES
(To be submitted to the concerned Regional Office of NABARD)
NAME OF THE BANK :
AMOUNT OF CURRENT CLAIM :
DETAILS OF CURRENT CLAIM :
Particulars
Date
[Rs. lakh]
1.
2.
3.
4.
Bank/Branch address
Loan A/c No.
Date of sanction
Purpose of Loan
Total Financial Outlay
Margin
Bank Loan
Repayment prescribed
Date of receipt of advance Capital
Subsidy
Date of Joint Monitoring visit
Date of commissioning
Final Subsidy claimed
Any other information
We undertake having complied with all the instructions contained in NABARD circular
No. -------------------------------------------- regarding operational guidelines of the scheme and
as amended from time to time while sanctioning above proposals.
We request you to release an amount of Rs.________________ (Rupees
) as Capital Subsidy (Final) in respect of the above entrepreneur.
We also certify that the previous claims have been fully utilised and adjusted in the
books of account under the sanctioned terms and conditions of the project within the
overall guidelines of the scheme.
The inspection report and commissioning certificate are enclosed.
Place :
the Branch
Manager(financing bank)
Date :
Encl:
17
The above claim is scrutinised. HO is requested to confirm the release of final subsidy amount of Rs.
(Rupees
only) to be released to
______________ (Name of the Bank).
(Signature)
AGM/DGM
(NABARD, RO)
__________________________________________________________________________
(For the use of ICD, NABARD HO)
Release of Subsidy - Confirmation
RETURN FAX MESSAGE
Date
__________________________________________________________________________
FROM :
CGM, ICD, NABARD, HO, MUMBAI
FOR:
CGM/GM/OIC, REGIONAL OFFICE
NABARD
__________________________________________________________________________
Pilot scheme for establishment / modernization of rural slaughter houses - Release of final subsidy confirmation
The claim No.
is admitted. (Ref. Claim No........................ for advance subsidy). Since
sufficient funds are available with NABARD, under the scheme, the above proposal of releasing final
subsidy
amount
of
Rs.................................
(Rupees ........................................................................................ only) is confirmed for release.
AGM / DGM
ICD, NABARD-HO, MUMBAI
Date
18
Annexure IV
Name
3
4
5
6
7
8
9
10
11
As per project
report apprised
by bank
Actual
As per
indicative
cost
12
Source of finance
As per project
report apprised
by bank
Actual
As per
indicative
cost
13
14
15
16
10
Signature of members :
1.
2.
3.
19
Designation
Address
Annexure V
1
2
6
7
Rs.
Rs.
Rs.
Amt. Dt.of credit to the Subsidy Reserve
(Rs.) Fund a/c of the Borrower
20
ANNEXURE VI
ESTABLISHMENT/MODERNISATION OF RURAL SLAUGHTER HOUSES
PROGRESS REPORT AS ON ____________
State :
[Rs. lakh]
S.No
Name of
the
beneficiary
Bank/
Branch
Purpose
Total
Outlay
Bank Loan
sanctioned
Dt. of
disb. of
first
instalment of
loan
Adv.
Subsidy
released
Final.
Subsidy
released
Total
subsidy
released
Remarks
10
21