National Bamboo Mission
There are a number of activities under National Bamboo Mission which are to be financed by a credit linked back ended subsidy by Financial Institutions (FIs) including banks. Promoters can submit their project proposals to the eligible financial institutions for the grant of subsidy.
Nature of Assistance
50% of the eligible subsidy amount will be released as advance by State level Bamboo Development Agency to the participating FI (bank) on submission of a project scrutiny note cum claim form as per requirement and the norms of NBM. The same would be kept in a Subsidy Reserve Fund Account of the concerned borrowers, to be adjusted finally against loan amount of the bank towards the end of the repayment period and completion of project as per the time schedule.
Final instalment of subsidy:
The remaining 50% would be disbursed to the participating banks by State level Bamboo Development Agency after conduct of an inspection by the Joint Monitoring Inspection Committee consisting of officials from the financing bank, State and District level Bamboo Development Agency and their recommendations to that effect.
Adjustment of subsidy to Borrower’s Account:
The subsidy released to the bank for individual project will be kept in a separate borrower- wise account. The adjustment of subsidy will be back-ended. Accordingly, the full project cost including the subsidy amount, but excluding the margin money contribution from the beneficiary , would be disbursed as a loan by the banks. The repayment schedule will be drawn on the loan amount in such a way that the total subsidy amount is adjusted after the full bank loan component with interest is liquidated.
Utilisation Certificate After release of final instalment of subsidy, a Utilisation Certificate is required to be submitted by the financing bank certifying that the full amount of subsidy received in respect of the project has been fully utilised (by way of crediting to the “Subsidy Reserve Fund Account -Borrower-wise”) and adjusted in the books of Account under the sanctioned terms and conditions of the project within the overall guidelines of the scheme.
No interest chargeable on subsidy portion:
No interest should be charged on the subsidy by the bank. For the purpose of charging interest on the loan component, the subsidy amount should be excluded. The balance lying to the credit of the subsidy reserve fund A/C will not form part of demand and time liabilities for the purpose of SLR / CRR.
Pattern of Assistance:
- Owner’s contribution 10%
- Subsidy from Government of India 50% subject to the maximum ceiling (10% more ‘ for NER States)
- Bank loan 40%
To view more details about the scheme open this link: https://nbm.nic.in/Documents/Letters/Guidelines_for_Credit_Linked.pdfProcedure
- Interested promoter will submit the project proposal for term loan and subsidy to Bank on application form as prescribed by the concerned Bank along with project report and other documents for appraisal and sanction of loan.
- Bank after appraisal and scrutiny of loan will furnish a brief project profile- cum-claim form for advance subsidy in the prescribed format given at Annexure I to District level Bamboo Development Agency. The loan shall be disbursed by the FI only after the project has been cleared and approved by State level Bamboo Development Agency, which shall have a representative of the FI too.
- District level Bamboo Development Agency on receipt of project profile cum claim form from participating bank, will recommend the proposal to the State level Bamboo Development Agency who will after scrutiny sanction and release 50% advance subsidy to the participating bank for keeping the same in the
Subsidy Reserve Fund Account (Borrower-wise)
- When the project is nearing completion, the promoter will inform the bank who will initiate action for an inspection by the Committee consisting of officials from bank, State and District level Bamboo Development Agency to ensure that the unit conforms to technical & financial parameters. After inspection is conducted, the bank will submit the claim form for final subsidy in the prescribed format given in the Annexure II to District level Bamboo Development Agency. The inspection report of Committee and completion certificate should invariably be enclosed with claim form for final subsidy. State level Bamboo Development Agency shall release the final subsidy to banks which will be replenished by the implementing agency or adjusted against the subsidy amount provided to banks in advance.
The eligible financing institutions under the scheme are:
i) Commercial Banks, Regional Rural banks (RRBs), State Cooperative Banks (SCBs), State Co-operative Agricultural and Rural Development Bank (SCARDBs), Scheduled Primary Urban Cooperative Banks (PUCBs), Agricultural Development Finance Companies (ADFCs), North Eastern Development Finance Corporation (NEDFT), and such other institutions
ii) Cooperatives where they seek loan from National Cooperatives Development Corporation (NCDC).
Promoters can submit their project proposals to the eligible financial institutions for the grant of subsidy.