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(Under the programme Special drive on self-employment for unemployed youths)
Government of Orissa have launched a special drive on self-employment for unemployed youths. Under this programme, under Agriculture Sector, 3 (three) programmes are being taken up such as (1) Establishment of Agro Service Centres, (2) Establishment of Commercial Agri Enterprises, (3) Entrepreneurship Development Training on Agri Business Management. The Commercial Agri Enterprises have been identified under the programme as one of the avenues for self-employment while generating employment opportunities for others.
Target:
It is proposed to promote 400 Commercial Agri Enterprises (other than Agro Service Centres) in the state during 10th Five Year Plan (every year 100 enterprises) starting from 2003-04 to 2006-07. These enterprises are expected to provide direct employment of 2000 persons in additional to 400 beneficiaries to be self-employed during the entire plan period. This year’s district-wise target is enclosed in Annexure-I.
Implementing Agency:
The Agricultural Promotion and Investment Corporation of Orissa Limited (APICOL) under the Department of Agriculture will be the nodal agency, for implementation of this program. The KSK, through the District Agricultural Officer and other members of KSK will implement this programme at the field level.
Incentives:
Government of Orissa will extend financial assistance in shape of Capital Investment Subsidy (CIS) @ 20% of the capital cost (excluding cost of land) subject to a maximum limit of Rs. 20.00 Lakhs against each Commercial Agri Enterprise. In addition to this, person with technical qualification is eligible for additional 10% CIS. However, the total maximum ceiling of CIS payable to an enterprise shall not exceed Rs. 20.00 Lakhs. However, some projects such as commercial horticulture including floriculture and food processing industries, which are eligible for subsidy under Government of India Scheme (National Horticulture Board & Ministry of Food Processing Industries) will be tagged for incentives under Government of India schemes.
Commercial Agri Enterprises:
The activities / projects to be called as Commercial Agri Enterprise under the scheme are enterprises including horticulture, floriculture, agro based industries, food processing industries, industry based on biotechnology and modern farming techniques. Hence, the projects based on agriculture or on allied sector, i.e. animal husbandry / fisheries projects are eligible under the scheme. An indicative list of activities / projects (Commercial Agri Enterprises) is enclosed at Annexure – II.
Eligible Beneficiary:
The enterprise can be set up by an individual group of individuals. Preference should be given to unemployed technical youths.
Project Cost:
The project cost of each enterprise may vary and there is no fixed limit due to variation in type of projects as well as size of projects. However, the size / capacity of the project should be such that the net annual income from the enterprise should be more than Rs. 1.00 Lakhs.
Financing Pattern:
The identified entrepreneur is free to set up his enterprise with his / her own financial resources or can avail loan from bank. If he / she wants to avail loan, then the KSK will recommend the proposal to the financing institution (bank) as per the choice of the beneficiary.
Procedure:
The procedure as applicable as under the existing rule “APR-6” of the State Agriculture Policy, 1996 is applicable and to be followed while implementing the said scheme.
Identification of beneficiary:
KSK will give wide publicity of this programme and identify potential entrepreneurs in their area as is being done under Agriculture Policy.
Steps to be followed:
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The identified entrepreneur has to fill up an application (promoter’s profile) in prescribed form obtainable form KSK of payment of Rs. 100/-. The prescribed form is same as the promoter’s profile used under Agriculture Policy Annexure-I of APR – I (Copy enclosed).
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Wherever necessary, the resource person from the KSK will visit the proposed project site, conduct soil testing etc. and help the entrepreneur in formulating project report for each enterprise.
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Project report would be prepared on the basis of the cost norms proposed by NABARD and within 15 days of submission of application by the entrepreneur.
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KSK will sponsor the project report to appropriate financing institution of the area, as per the choice of the beneficiary (in bank finance cases) or will issue go-ahead letter to the beneficiary (in self finance cases) while keeping APICOL informed by enclosing a copy of such communication along with a copy of the project report.
Procedure for claiming CIS:
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After completion of the project, the beneficiary will submit the application for availing CIS to the KSK in the prescribed proforma (Annexure – I of APR – 6) for claiming financial assistance as followed under APR-6 of Agriculture Policy, 1996 (Copy enclosed).
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For the project financed by the financing institution, the KSK will get the project evaluated by the Branch Manager of the financing bank in the prescribed format (Annexure – II of APR – 6). (Copy enclosed)
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In self fiancé cases, the Krishi Sahayak / DAO will get the project evaluated in the prescribed manner as mentioned in paragraph 4 and 5 of Rule for sanction and disbursement of CIS under Agriculture Policy, 1996.
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On completion of the evaluation by the appropriate authority, the Krishi Sahayak (DAO) will place the proposal for sanction of the subsidy before the District Level Committee (DLC) under Rule APR-6 of Agriculture Policy, 1996, the DLC comprises of the following members:
- Collector of the District – Chairman
- Project Director, DRDA – Member
- Dy. Director of Agriculture – Member
- Dy. Director of Horticulture – Member
- Dy. Director of Fisheries – Member
- CDVO – Member
- Krishi Sahayak (DAO) – Member Convenor
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In case of project having project cost more than Rs. 25.00 Lakhs, the KSK will forward the CIS application along with evaluation report to APICOL. APICOL in turn will place the proposal for sanction of subsidy before State Level Committee (SLC) under Rule APR-6 of State Agriculture Policy, 1996. The SLC comprised the following members :
- Secretary, Agriculture Department – Chairman
(in respect of projects related to Agriculture,
Food processing, agro industries etc.)
Secretary, Fisheries & Animal Resources
Department (in respect of projects related to
Fisheries and Animal Husbandry
- Secretary, Finance Deptt. or his nominee – Member
- Director of Agriculture – Member
- Director of Horticulture – Member
- Director of Soil Conservation – Member
- Director of Animal Husabndry – Member
- MD, IPICOL – Member
- MD, APICOL – Member Convenor
Disbursement of CIS :
The DAO (Krishi Sahayak) will send the claim of CIS with respect to the Commercial Agri Enterprise along with the proceedings of the DLC meeting in which the sanction has been accorded to APICOL. The entrepreneur is required to execute an agreement with KSK as stipulated under APR-6 of Agriculture Policy, 1996. (Copy enclosed) APICOL in turn on receipt of the claim will scrutinize all the documents and disburse the eligible asmount of subsidy through the financing agency in bank financed cases whereas to the entrepreneur directly through cheque in case of self-financed cases.
In case project above 25 Lakhs after due sanction by SLC, APICOL will release the subsidy in the same manner as stated above.
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