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              PROJECT REPORT
                    


    HORTICULTURE THROUGH PRODUCTIONOF FRUITS AND

                      VEGETABLE




Entrepreneur:
                      
                 
                  
                 


Formulated by:
                      
                 
                                       INTRODUCTION

       Thrust on Agriculture and Rural Development is the need of the hour. Diversification of
cropping has to be followed especially in case of uplands where subsistence agriculture still
exists. For the purpose of changing subsistence agriculture to high remunerative agricultural
business proposition, generation and promotion of rural employment for educated unemployed
youth and wage earners has been felt essential.


       The importance of agriculture in the national economy plays a crucial role in providing
employment and food security. There is a vast potential in assisting the agricultural production
sector and to focus on food production, increase the standard of living of farmers, agriculture in
the rural area. It is now high time to take advantage of emerging potential and stop procurement
of fruits and vegetable from out side and distant states to Orissa.


       The proposed venture is an unit of commercial enterprise quite paying in nature due to
intensive nature of farming in producing fruits and vegetables round the year to cater to the
demands of the local markets.


CONSULTANT’S NOTE

       This project proposal has been formulated by me after field visit of the proposed site.
The site needs development of land area with regard to irrigation, soil management, land
leveling, plotting and bonding etc. works.


       With a view to develop commercial horticulture, rural employment and income
generation, agri-enterpreneurship development in the rural areas, this project has been
identified as a viable unit for production of fruit crops achieving the project objectives.


       It is also to certify that this project proposal shall hold good and may be technically
feasible and economically viable if proper care and management practices would be taken care
of sufficiently by the agri-enterpreneur.


                                                                       Consultant to APICOL
                                 PROJECT OUTLINE
1.   Title of the Project            Development of Commercial horticulture through
                                     Production of Fruits and Vegetable
2.   Project Site (Village)          Jugudi
                    (Mouza/GP)       Sihala
3.   Project address                 Village – Jugudi
                                     Post – Sihala
                                     Dist – Ganjam
4.   Project area                    5 acres
5.   Project cost                    5 Lakhs
6.   Project Components              A. I. Mango –      2 acres     Intercropping with
     Cultivation of: -                 II. Sapota –     1 acres   + Drumstick in 2.5
                                                                    areas
                                       III. Coconut – 2 acres
                                          Total       - 5 acres
                                     B. Development of farm infrastructure
7.   Access to Land                  Own Land
8.   Gestation Period                4 years
9.   Name of the entrepreneur        Sri Sivaram Choudhry
10. Address of the entrepreneur      At/Po Gosaninuagaon,
                                     Billo sahi – 7 Dist – Ganjam Orissa
11. Project duration                 (4+9) years
12. Distance of the Project from     15 Kms.
     Berhampur
                          BIODATA OF THE ENTERPRENEUR
1.   Name of the Entrepreneur                Sri Sivaram Choudhry
2.   Father’s Name                           Sri Bipra Charan Choudhry
3.   Age and Sex                             35 (Male)
4.   Marital Status                          Married
5.   Address of the entrepreneur             Sri Sivaram Choudhry
                                             At/po Gosaninuagaon
                                             Near ShastriNagar, 3rd Lane
                                             Berhampur 760003
                                             Dist – Ganjam (ORISSA)
6.   Qualification                           Chartered Accountant
7.   Present occupation                      Business\Profession
8.   A/C No
9.   Telephone No                            (Shop) 0680 – 2203689
                                             Mobile – 3114563
10. Experience in own house farming          5 years
11. Project site address                     Village – Jugudi
                                             Post – Sihala
                                             Dist 0 Ganjam (ORISSA)




                                            Signature of the Entrepreneur
                              STATEMENT OF OBJECTIVES
   1. To Produce Fruits of Mango, Sapota and Coconuts on a Commercial basis to
       meet the Local market demands.
   2. To cater to the local market demand for fruits on a Continuous basis.
   3. To generate employment and income of the entrepreneur and the rural mass in
       Cultivation and post-harvest operations.
   4. To protect the natural environment through plantation of Fruiting trees in the
       Culturable barren lands and create vegetation cover over the dry surface land.


                        CULTIVATION OF MANGO CROP


       India is the Largest Producer of mango in the world. Mango is the Leading Fruit
Crop of India and called the King of Fruits Occupying more that 1.11 million hectares of
Land with an annual production of 9.28 million tones. India has vast potential for export
to mango to foreign Counties.


SOIL


       Mango can successfully be grown on a wide range of soils from alluvial to late
rite provided they are depth of 6’(ft) and well drained.


SOIL pH


       Mango crop can be grown in tropical and sub tropical climate at an altitude of
1400 m above the sea level. There should not be high rain, frost and humidity during its
period of flowering. The ideal condition for mango cultivation is dry summer weather
with good rainfall. Heavy winds cyclones, may cause shedding of flowers and fruits
along with breaking of tree branches as a result, the farmer has to bear heavy loss.
VARITIES


       There are about 1000 varieties of mango exist in India but few selected varieties
are being grown Commercially in different orchards of India. In this Locality (Ganjam),
the Popular varieties which are being grown are Banganpalli, Dashehari, Himsagar,
Neelum, Mallika, Amrapalli etc. Planting of grafted mango has been advised to the
entrepreneur to get good yield out of the crop and maintain the plants and fruits true to
the type.


SPACING


       New dwarf variety like Amrapalli will be planted in closer spacing under high
density planting condition (i.e. 2.5X2.M)


PIT SIZE


       1M x 1m X1M (one Cubic meter)


               BASAL MANURES AND FERTILISERS PER PIT
   1. Farm yard manure (FYM) –                                       25 Kg
   2. Single Super Phosphate –                                       2.5 Kg
   3. Muriate of Potash -                                            1.0 Kg
   4. (For termite Problems Chloropyriphos dust) -                   100 gms


PLANTING METHOD


Square method of planting would be adopted. Straight growing grafts of one year old
(healthy PLANTS) can be planted successfully with very least chance of failure. The
grafts should be planted in the center of the pits. Planting should be followed in a high-
density manner followed with irrigation immediately to avoid mortality of freshly planted
grafts. The right season of planting mango graft is during rainy season. While planting,
care should be taken to see that, the ball earth is intact and no roots are exposed and
graft union is above the ground level. Staking and shedding to newly planted grafts is
advised to be provided for better and straight growth of plants for a period of one to two
years.


PRUNING OF PLANTS


         Branching up to a meter on the main stem should be discouraged or avoided.
Crossed and rubbed branches should be removed at pencil thickness stage and the
branches should be spaced at 20 to 25 cm apart so that they grow freely in different
directions without crossing each other.


MANURIAL SCHEDULE


         Mango plants should be manured every year with organic and chemical sources
of fertilizers for its better growth, crop stand and yield. Following schedule of manuring
may be followed each and every year.


MANURIAL SCHEDULE OF MANGO
Age      in Compost     Nitrogen (Urea Phosphorous (Single super Potash (Murrieta of
years        (Basket)   in gms)           Phosphate in gms)             Potash in gms)
1st year     2          176               625                           100
2nd year     3          347               1250                          200
3rd year     4          542               1562                          332
4th year     4          1085              1562                          664
5th year     4          1302              1875                          747
6th year     4          1627              2187                          830
7th year 4              2170              3125                          996
&
Onwards
      After 10th year of the plant, above dose can be applied in two Split doses i.e.
during the month of June – July and October – November
      Incase of Sandy Soil, urea 3%(30 gms. In one litre of water) may be sprayed as
foliar spray over the foliage in order to combat the leaching loss of urea (Nitrogen) from
the soil to downward layers. Foliar spraying is recommended before flowering occurs.
 TECHNICAL PARAMETERS TO BE FOLLOWED BEFORE PLANTING
                                   MANGO CROP
1.   No. of Plants / acre                       : 500 (after leaving free
                                                space)
2.   Spacing (Planting distance)                : Row to Row 2.5 m
                                                Plant to Plant 2.5 m
3.   Type of saplings to be planted             : Grafted mango
4.   Age of the grafted Plant                   : One year old graft
5.   Pit Size                                   : 1m X 1m X1m
6.   Season of Planting                         : Onset of Monsoon
7.   Variety to be grown (Hybrid Mango)         : Amrapalli
8.   Irrigation during.                         : April, May, June &
                                                November – March
9.   Time of Pruning of dead branches           December
10. Important diseases to be controlled         : Powder mildew,
                                                Anthracnose
11. Important pests to be controlled            Mango hoppers, mealy
                                                bug, shoot gall maker,
                                                stem borer etc.
                     CULTIVATION OF SAPOTA CROP


       Sapota is a nutrious and delicious fruit liked by all the perople. Its
cultivation is increasing day byday due to its favourity in all the states of India. It
gives good return with low investment potential. The return/yield is steady without
any decline.


SOIL


       It can be grown in a variety of soil with well-drained condition. Loamy and
medium black soils are most suitable for the cultivation of this crop. Hard and
rocky soils are unfavourable for the cultivation of this crop. The soil of the project
site is favourable for growing of sapota crop through management practices.


PLANTING SEASON


       Onset of monsoon or during the period of beginning of rains (June-July)
favours planting and establishment of sapota plant


CLIMATE


       This crop requires both dry and humid climate, which is prevailing in the
proposed area. It can be grown throughout the state without any climatic
problem.


VARIETIES


       Cricket ball, Calcutta round, Kali-patti,
METHOD OF PALNTING
        Land must be ploughed deep in to the soils with harrowing operations.


PIT SIZE
        1m X 1m X 1m (one Cubic meter)


SPACING
        9m X 9m.
        The pits should be filled up with the mixture of compost and to soil. The
graft should be planted in the middle of he pit and the joint portion of the graft
should remain above the ground level. The grafts of sapota after planting should
be supported by staking. The growth of side shoots should be discouraged or
avoided.


IRRIGATION
        Drip or basin method of irrigation can be adopted for this crop. First two
summer seasons after planting should be taken care of to assure good
establishment of the plant. Irrigation at 15 days interval either by ring or basin
method is necessary and 60 – 90 litres/day/plant is necessary for drip system of
irrigation to obtain better yield.


TAKING CARE OF PLANTS


  i.    Beginning of the monsoon is the best time for application of manure and
        fertilizers at a distance of 60-90 cms away from the trunk.
 ii.    Weeding should be done at a regular internal in order to save the main
        plant from space, light and nutrient competition. Inter cultural operations
        should be done intermittently.
 iii.   The growth of the side shoots should be discouraged up to a height of 3 ft.
        from the basal portion of the trunk.
 iv.     Control the incidence of pest and disease attack as per the following
         procedures.


       Pest/disease    Symptoms      Control measure            Dose             of
                                                                application
1. Sapota borer        Flower   drop Spray immediately after @ 4 gms per liter
                       damaged fruit flowering   carbryl   50% of water.
                                     WP
2. Leaf spot & Reddish               Spray Zineb                @ 1 gm pr 5 liters
       sooty mould     brown spots                              after occurrence of
                                                                the disease.


YIELD


         The sapota plants start yielding after 4th year onwards and optimum yield
can be obtained from 7th year onwards.


PERIOD OF HARVEST


         1st harvesting period – march to May
         2nd harvesting period – September – to October.
         Harvesting of Fruits during summer season tastes sweeter than the Fruits
of other seasons. Sapota Flowers throughout the year


TIME OF HARVESTING


         The Fruits shall be harvested when they are dull brown potato Color. The
average yield of plant in a period of 10 years (5 th year to 14th year) is about
2635Kg out of one acre of plantation i.e. involving 50 plants per acre.
CULTIVATION OF COCONUT CROP


       Coconut is a Commercial crop in India and it is grown extensively in many
states of India especially in Coastal belts. Coconut can be successfully cultivated
in our state. Irrigation is essential for this crop during dry seasons of the year.


CLIMATE


       Warm and humid Conditions are desirable for its Cultivation in Coastal
belts. The humidity should be 80-90% and mean annual temperature of 270c with
a diurnal variation of 50 –70 C is Optimum. Sunshine of 2,000 hours/year is more
suitable for Profuse growth and productivity.


SOIL


       Laterite, Lateritic red, Sandy, alluvial Sandy, alluvial Coastal, and black
soils are good for Coconut Cultivation. Late rite and Lateritic Soils in humid
topical zones in the western and eastern belts of India are the Predominant soils
where in Coconut crop is extensively cultivated.


VARIETIES


       There are 2 types of varieties of Coconuts i.e. tall and dwarf. In this
Project Proposal, the dwarf varieties have been recommended having bearing
from 6th yer and onwards. The important dwarf types are: Chowghat Green
Dwarf, Chowghat Orange dwarf, Gongabandam etc. There is also other dwarf
varieties of Coconut available in Govt. Coconut farms located at Chatrapur
(Ganjam) and Sakhigopal (Puri)
SEEDLING SELECTION


       Selection of seedling is an important criteria for obtaining quality planting
material short stem with good girth at Collar, tendency to produce large no of
leaves, dark green in colour and early splitting of leaves are the characteristics of
quality seedlings which subsequently result in high-yielding palms. In India, 9-12
months old seedlings are generally transplanted. Pruning of roots up to 12
months does not cause any damage.


PLANTING CONDITIONS AND AFTER CARE


      Adequate drainage
      Planting on raised mounds incase of poor drainage Condition.
      Spacing – 7.5 meter row to row – 7.5 meter plant to plant
      Pit Size – 1m X 1m X 1m
      Time of digging pits – summer season.
      Time of planting – June – July
      Filling of Pits – Pits are filled up to 0.25 – 0.30 m depth with a mixture of
       topsoil, sand and wood ash.
      Seedlings are to be planted at the center of pits.
      The soil around pit is to be firmly pressed.
      Collar of the seedling is not covered by the soil.
      Shading of the young planted seedlings reduces initial mortality of plants.
      Keep the field – weed free
      Regular irrigations should be given during summer months.
      Coconut crop should be manured twice in a year (May – June) and
       (September – October.)
      The Fertilizer should be applied under optimum soil moisture condition.
      Moisture stress increases leaf fall, lower growth rate of reproduction and
       low yield.
      Apply 220 liters of water once in 4 days in the basin of 1.8 m radius is
       recommended.
      Mulching with Coconut husk, Coir dust, green leaves and dry Coconut
       leaves not only improves water retention Capacity but also reduces the
       soil erosion hazards.
      Excess water should be drained out during rainy season.


         CULTIVATION OF MORINGA (DRUMSTICK) CROP


       It is a neglected trace crop of Indian Origin with tremendous potential.
Recently the farmers have been attracted for its Commercial Cultivation due to its
heavy market demand almost through out the year. The leaves and pods are
used as food and preferred by a large mass of Consumers. It contains vitamin-A,
vitaminC and many other nutrients.


       This crop is native to India and grown as a traditional crop and now being
grown as Commercial Crop almost in Andhra Pradesh, Orissa etc. In addition to
supply of valuable nutrients, it also provides low cost water purification power,
which is obtained by grinding its dry seeds.


CLIMATE AND SOIL


       Moringa can be grown under a wide range of climatic conditions ranging
from subtropical very dry to moist. The tree grows well in the average
temperature range of 18.7 to 28.50C and on all types of soil. It grows best on dry
sandy soils.


       The plant tolerates drought condition and tolerates soil pH up to 9.5.
Varieties
       There are only few named varieties Jafna variety of South India produces
pods 60-90 cms in length and with a soft flesh of good taste.
   1. Jafan – South India variety
   2. Chavaka Cheri Morinaga (90-120 cm fruits)
   3. Chemmurunaga (red tipped fruits) flower throughout the year and yields
       heavy crop.
   4. Half – year
   5. Small Beauty
   6. PKM – 1, PKM – 2
PROPAGATION
       Moringa can be propagated through seeds as well as through stem
cuttings. Propagation through cuttings taken in January is preferred over seed
propagation to maintain genetic purity. Large limbs of 1 – 2 meter long and of 14
– 16 cm dia taken in early July sprouted when planted just after their removal in
rainy season.
YIELD
       Under South Indian conditions and in our state, flowering occurs twice a
year and there are two crops in a year.
       1st crop – July to September
       2nd crop – March to April
       The yield is generally low during initial years but from 3 rd year onwards, a
single tree can yield 600 pods per year in specific varieties.
DISEASES AND PESTS
       The tree is not affected by serious disease in India. A root rot disease is
seen which can be cured with a suitable fungicide. Hairy caterpillars cause leaf
defoliation in Moringa and can be controlled by spraying the tree with Nuvacron
or Monocil @ 2 ml /litre.
                                   CROP PLANNING

Sl.      Name of the Crop    Area to be     No. of              Spacing in meter
No.                          grown          Plants/age
1.       Mango (Hybrid)      2 Acres        500 (high density   2.5 m X 2.5m
                                            planting            (Border space
                                                                leaving free
2.       Sapota              1 Acre         50                  9m X 9m
3.       Coconut (Hybrid)    2 Acres        70                  7.5 M X 7.5 m
4.       Drum Stick (Inter   2.5 Acres      640                 2.5 m X 2.5m
         Crop)




GESTATION PERIOD OF DIFF. CROPS

Sl.               Name of the Crop                     Period of Gestation
No.
1.                       Mango              4 Years

2.                       Sapota             4 Years

3.                      Coconut             4 Years

4.                    Drum Stick            ---NIL---




     ASSUMPTIION OF SALES PRICE OF DIFFERENT PRODUCE (FRUITS)


1.                       Mango              Rs.5.00 / Kg

2.                       Sapota             Rs.5.00 / Kg

3.                      Coconut             Rs.5.00 / Nut

4.                    Drum Stick            Rs.0.25 per Fruit
         ESTIMATION OF COST OF CULTIVATION OF MANGO (Amrapalli)
                                 (Unit – 1 Acre ) 500 Trees/ Age

Sl.                     High Density Planting Cost (Rs.) in Diff. Years
No.                     1      2      3     4      5       6      7     8          9       Total
Particulars
      A-Materials
1.    Planting          16000 1600          -     -      -     -        -      -           17600
      Materials @
      32/graft
2.    F.Y.M. 150/m        750 500 500 500 500 500                   500      500 500 4750
3.    Fertilizer         1000 1500 2000 2500 3000 3000             3000     3000 3000 22000
      (NPK)
4.    Plant               500     500    500    500   750    750      750   750    750      5750
      Protection
5.    Misc. Exp.          500     500    500    500   750    750      750   750    750      5750
      And organic
      manage
 A. Sub Total           18750 4600 3500 4000 5000 5000             5000     5000 5000 55850

      B. Labour
      and
      operations
1.    Land                450        -      -     -      -     -        -      -       -     450
      preparation &
      layout
2.    Digging of pits    1000        -      -     -      -     -        -      -       -    1000
3.    Filling pits &     1500        -      -     -      -     -        -      -       -    1500
      planting
4.    Application of      500     500    500    500   750    750      750   750    750      5750
      Fertilizer &
      pesticide
5.    Inter               500     500    500    500   750    750      750   750    750      5750
      cultivates
6.    Irrigation          500     750 1000 1250 1250 1250          1250     1250 1250       9750
7.    Pruning,            100     100 150 200 250 250               250      250 250        1800
      Training
8.    Harvesting            --                500 500               500      500 500 2500
9.    Miscellaneous       100 100 100 100 100 100                   100      100 100    900
 B. Sub Total            4650 1950 2250 2550 3600 3600             3600     3600 3600 29400

     Grand Total        23400 6550 5750 6550 8600 8600             8600     8600 8600 85250

                                N. B. Cost of Fencing not included.
           ESTIMATION OF COST OF CULTIVATION OF SAPOTA CROP.
                                                (Unit- One acre)
Sl.                                                    ----- Cost (Rs.) Year----
No.                     1          2        3        4        5     6      7           8         9       Total
Particulars
      A-Materials
1.    Planting              825         -        -       -       -      -          -         -             825
      Materials @
      12/plant
2.    Manures @             188      187    150       150    150     150     150           150   150      1425
      150/ MT
3.    Fertilizer             97      193    291       388    485     485     485           485   485      3394
4.    Plant                 125      100    100       100    125     125     125           125   125      1050
      Protection
5.    Others not            800      600    500       400    400     400     400           400   400      4300
      cone red
      above
 A. Sub Total               2035 1080 1041 1038 1160 1160                   1160       1160 1160 10994

      B. Labour
      and
      operations
1.    Land                  280         -        -       -       -      -          -         -       -     280
      preparation &
      layout
2.    Digging of pits       200         -        -       -       -      -          -         -       -     200
3.    Filling pits &        320         -        -       -       -      -          -         -       -     320
      planting
4.    Application of        160      200    280       320    400     400     400           400   400      2960
      Fertilizer &
      pesticide
5.    Inter                 240      200    200       160    160     160     160           160   160      1600
      cultivatation
6.    Irrigation            400      400    360       320    320     320     320           320   320      3080
7.    Pruning,               40        -      -         -      -       -       -             -     -        40
      Training
8.    Harvesting               -        -     -         -     60      60      60            60    60       300
9.    Miscellaneous           75       70    69        62     50      50      50            50    50       526
 B. Sub Total               1640       80   840       800    940     940     940           940   940      8780

     Grand Total            3750 1950 1950 1900 2150 2150                   2150       2150 2150 20300
       (A + B)
                                   N. B. Cost of Fencing not included.
              ESTIMATION OF COST OF CULTIVATION OF COCONUT
                                              (Unit- One acre)
Sl.                                           ----- Cost (Rs.) indifferent Years----
No.                     1           2       3       4      5      6      7      8          9       Total
Particulars
      A-Materials
1.    Planting              1540        -       -      -      -       -      -         -       -    1540
      Materials @
      20/plant
2.    F.Y.M                 263      210     210    210    158     158    158     158      158      1683
      (Manures) @
      Rs.150/ MT
3.    Fertilizers           182      364     546    729    971 1214       1214   1214 1214          7648
4.    Plant                 140      140     175    175    210 210         245    245 245           1785
      Protection
5.    Irrigation             600 500 400 300 300 300                       300    300 300 3300
 A. Sub Total               2725 1214 1331 1414 1639 1882                 1917   1917 1917 15956

      B. Labour
      and
      operations
1.    Land                  350         -       -      -      -       -      -         -       -     350
      preparation &
      layout
2.    Digging of pits       300         -       -      -      -       -      -         -       -     300
3.    Filling pits &        350         -       -      -      -       -      -         -       -     350
      planting
4.    Application of        200      250     350    350    450     500    600     600      600      3900
      Fertilizer &
      pesticide
5.    Inter                 300      250     250    200    200     200    200     200      200      2000
      cultivatation
6.    Irrigation            500      400     350    350    350     350    400     400      400      3500
7.    Harvesting              -        -       -      -      -     200    200     200      200       800
8.    Miscellaneous          75       36      69     36     61      68     33      33       33       444

 B. Sub Total               2075     936 1019       936 1061 1318         1433   1433 1433 11644

     Grand Total            4800 2150 2350 2350 2700 3200                 3350   3350 3350 27600

                                   N. B. Cost of Fencing not included.
              ESTIMATED YIELD AND INCOME FROM MANGO CROP
                                     (Unit – One Acre)


Sl.     Year       Average Yield /       Average Yield/ Income         from Income    from

No.                Tree (Kgs.)           age (Kgs.)        one acre (Rs.)   two acre (Rs.)

1.      5th                5                  2500                12,500        25,000

2.      6th                6                  3000                15,000        30,000

3.      7th                7                  3500                17,500        35,000

4.      8th                8                  4000                20,000        40,000

5.      9th                10                 5000                25,000        50,000

6.      10th               12                 6000                30,000        60,000

7.      11th               14                 7000                35,000        70,000

8.      12th               16                 8000                40,000        80,000

9.      13th               18                 9000                45,000        90,000



                               (Sale price of Mango Rs.5.00 / Kg.)


      NB:
      No. of plants per acre = 500 (after leaving border and drainage space) under high
      density planting condition of Amrapalli variety of Mango.
                     COST OF CULTAVATION OF DRUM STICK
           (Inter Crop – 1 ha) ( Figs in Rs.) (Spacing 2.5 m X 2.5m)
                    Plant Population – 1600 / ha (in 2.5 acres)


Sl. No.     Items                                    Rate (Rs.)   Cost (Rs.)


            A- Inputs
1.          Seedlings                                   2.25           2560
2.          F.Y.M                                     200/MT           2000
3.          Fertilizer                                                 2240
4.          Plant Protection                                            800
5.          Misc. and Organics etc.                                     600
                                  A. Sub Total                         8200
            B. Labour and Operations                   MDs.
1.          Land preparation and layout                 10              500
2.          Digging of pits                             50             2500
3.          Filling of pits and planting                10              500
4.          Application of manures and                  20             1000
            fertilizers / pesticides
5.          Intercultivation                            30             1500
6.          Irrigation                                   --            1750
7.          Harvesting                                  20             1000
8.          Misc.                                        --              50
                                  B. Sub Total                         8800
                               Grand Total (A + B)                Rs.17000


     NB: Cost of fencing not included.
     Maintenance in subsequent Years Rs.10, 000. (Per year)
        ESTIMATED YIELD AND ICOME FROM SAPOTA CROP
                    (SAPOTA – UNIT – ONE ACRE)


 Sl. No.   Year       Average Yield /     Average Yield/ Income (Rs.)

                      Tree (Kgs.)         age (Kgs.)          @ Rs. 5 / KG

 1.        5th                6                        300               1,500

 2.        6th                16                       800               4,000

 3.        7th                25                       1250              6,250

 4.        8th                35                       1750              8,750

 5.        9th                50                       2500             12,500

 6.        10th               65                       3250             16,250

 7.        11th               75                       3750             18,750

 8.        12th               80                       4000             20,000

 9.        13th               85                       4250             21,250




N.B.:        No. of Trees per acre = 50
             Sale price of Sapota /Kg = Rs. 5.00
         ESTIMATED YIELD AND INCOME FORM COCONUT CROP
                                    (UNIT – 2 ACRES)


Sl.   Year        Average Yield /     Average Yield/ Income      from Income         from

No.               Tree No of Nuts     acre (70 Trees)   one acre (Rs.)   two acre (Rs.)

1.    5th Year           10                 700             3,500            7,000

2.    6th Year           20                1400             7,000            14,000

3.    7th Year           30                2100             10,500           21,000

4.    8th Year           50                3500             17,500           35,000

5.    9th Year           60                4200             21,000           42,000

6.    10th Year          70                4900             24,500           49,000

7.    11th Year          80                5600             28,000           56,000

8.    12th Year          90                6300             31,500           63,000

9.    13th Year         100                7000             35,000           70,000



                          N.B. Sale Price of Coconut Rs.5/Nut.
                       ESTIMATED YIELD AND INCOME FROM
                      DRUMSTICK CROP - UNIT - 1ha (2.5 acres)
                      (Inter cropping with Sapota and Coconut)


Year            Average Yield / Tree      Average Yield from 2.5   Income from 2.5

                (No of Fruits)            acres (1600 Plants)      acres (1ha) (Rs.)


1.              150                       2,40,000                 60 000

2.              150                       2,40,000                 60 000

3.              100                       1,60,000                 40 000

4.              100                       1,60,000                 40 000

                -                                          TOTAL Rs.2,00,000




       Sale Price Rs. 0.25 per one Fruit of Drumstick.
              YEAR WISE ESTIMATION OF WORKING CAPITAL OF
                                 DIFFERENT CROPS (Figs. In Rs.)


Sl. Name of the                                  Working Capital – Recurring Cost (Rs.)
No. Crop                                           ------- YEARS------ UNIT – One Acre.
                   1              2              3         4    5       6     7     8   9                            Total
1.   Mango
     (One acre)



                                                 Capitalized
                   Capitalized


                                   Capitalized




                                                               Capitalized
                   23,400




                                                                                                                     85,250
                                   6,550


                                                 5,750


                                                               6,550


                                                                             8,600


                                                                                     8,600


                                                                                             8,600


                                                                                                     8,600


                                                                                                             8,600
2.   Sapota
                   Capitalized


                                   Capitalized


                                                 Capitalized


                                                               Capitalized
     (One acre)




                                                                                                                     20,300
                   3750


                                   1950




                                                                             2150


                                                                                     2150


                                                                                             2150


                                                                                                     2150


                                                                                                             2150
                                                 1950


                                                               1900




3.   Coconut
                   Capitalized


                                   Capitalized


                                                 Capitalized


                                                               Capitalized




     (One acre)




                                                                                                                     27 ,600
                   4800


                                   2150


                                                 2350


                                                               2350


                                                                             2700


                                                                                     3200


                                                                                             3350


                                                                                                     3350


                                                                                                             3350
4.   Drumstick
                   17,000


                                   10,000


                                                 10,000


                                                               10,000




     2.5 acre




                                                                                                                     47000
     (Intercrop)
                                                                             ----


                                                                                     ---


                                                                                             ---


                                                                                                     ---


                                                                                                             ---


                                In case of Mango – Cost of cultivation up to
                                 4 years (Non-bearing period) has been capitalized.

                                In case of Sapota – Cost of cultivation up to
                                 4 years (non-bearing period) has been capitalized.

                                In case of Coconut – Cost of cultivation up to
                                 4 years (non-bearing period) has been capitalized.
                       WORKING CAPITAL TOBE CAPITALIZED
                       (For Non-Bearing Periods) OF MANGO,
                            Sapota and Coconut Crops.
Sl.   Name of                                       ---------- years ------------

No. The Crop                       1          2           3          4              5    Total

1.    Mango                     23,400      6550       5730      6550         --        42,250

      (One Acre)

2.    Sapota                    3,750       1950       1950      1900         --        9550

      (One Acre)

3.    Coconut                   4800        2150       2350      2350         --        11650

      (One Acre)

               TOTAL            31950       10650      10050 10800            --        63450




      N. B.:
                   Non – bearing Periods.


                   1. Mango                  1st      year to         4th Year
                   2. Sapota                 1st      year to         4th Year
                   3. Coconut                1st      year to         4th Year
                                                                                   8.
                                                                                                   7.
                                                                                                                    6.
                                                                                                                                  5.
                                                                                                                                             4.
                                                                                                                                                           3.
                                                                                                                                                                         2.
                                                                                                                                                                                    1.




                                                                                                exp.
                                                                                                                    Stick
                                                                                                                   Drum
                                                                                                                                                                         Mango
                                                                                                                                                                                    Mango




                                                                                                                                                           Sapota
                                                                                                                                                                                                                 Sl. Name of




                                                                                 Total of
                                                                                               Total of
                                                                                                                                                                                                                 No. the Crop




                                                                                                                                  Coconut
                                                                                                                                             Coconut




                                                                                exp. Not
                                                                                recurring
                                                                                                                 Inter crop




                                                                               capitalized
                                                                                             capitalized



                                                                                   --
                                                                                                                                                                                                                 Acre
                                                                                                                                                                                                                 Unit




                                                                                                                  2.5

                                                                                                                 (1ha)
                                                                                                                 Acres
                                                                                                                                             1Acre
                                                                                                                                                           1Acre
                                                                                                                                                                                    1Acre




                                                                                                         2+1+2
                                                                                              recurring 5Acres
                                                                                                                                  2Acres
                                                                                                                                                                         2Acres
                                                                                                                                                                                            1


                                                                                               60150                            9600                     3750         46,800
                                                                                 17000                           17000                      4800                                   23,400
                                                                                             Capitalized                      Capitalized              Capitalized   Capitalized
                                                                                                                                                                                            2




                                                                                               19350                            4300                     1950         13,100       6,550
                                                                                 10000                           10000                      2150
                                                                                             Capitalized                      Capitalized              Capitalized   Capitalized
                                                                                                                                                                                            3




                                                                                               18150                            4700                     1950          11,500      5,750
                                                                                 10000                           10000                      2350
                                                                                             Capitalized                      Capitalized              Capitalized   Capitalized
                                                                                                                                                                                                    4




                                                                                               19700
                                                                                                                                4700                     1900          13,100      6,550
                                                                                 10000       Capitalized         10000                      2350
                                                                                                                              Capitalized              Capitalized   Capitalized




    Coconut from 1st Year to 4th Year only.
                                                                                                                                                                                                           5




                                                                                 24750             ---              ---          5400       2700          2150         17,200      8,600
                                                                                                                                                                                                                   6
                                                                                                                                                                                                                                     (ABSTRACT FOR 5 ACRES)




                                                                                 25750             ---              ---          6400       3200          2150         17,200      8,600
                                                                                                                                                                                                                         7




                                                                                 26050             ---              ---          6700       3350          2150         17,200      8,600
                                                                                                                                                                                                                               8
                                                                                                                                                                                             --- Cost of (Rs.) in different year--




                                                                                 26050             ---              ---          6700       3350          2150         17,200      8,600
                                                                                                                                                                                                                                                              ESTIMATION OF WORKING CPITAL REQUIREMENT




                                                                                                                                                                                            9




                                                                                 26050             ---              ---          6700       3350          2150         17,200      8,600




NB: Inter Cropping of Drumstick Crop will be done in the field of Sapota and
                                                                                                                                                                                            Total
      ABSTRACT OF WORKING CAPITAL (RECURRING) TO BE
      CAPITALISED FOR THE NON-BEARING PERIODS ONLY.




Sl.              Items of          Amount to           Non-
No.              working           be Capitalized      bearing
                 Capital               (Rs.)           period




1.         Mango (2 acres)         84,500           1st yr to 4th yr


2.         Sapota (1acer)          9,550              ---- do---


3.         Coconut (2acres)        23,300             ------ do –




                 Total        Rs. 1,17,350
       ESTIMATION OF CAPITAL OUTLAY OF THE PROJET UNIT
        (CAPITAL INVESTMENT FIXED COST, -NON-RECURRING)
Sl.   Name of the Items                   Unit          Cost / unit   Total Units       Total Cost (Rs.)
No.                                                     (Rs.)
1.    Farm layout (Whole area with Acre                 300           5                          1500.00
      stone marking)
2.    Land development (Leveling, Acre                  10000         5                        50,000.00
      Bonding, plotting with drainage
      channel
3.    Farm building (RCC ROOF)            No.     15’ 350 / Sq. Ft.   350                      52,500.00
                                          X       10’                 Sq. Ft.
                                          Size
4.    Barbed    wire     fencing    with Meter          120/ Mt.      1200                   1,44,000.00
      concrete pillars                                                Meter
5.    Kerosene pump (3HP) with No                       15,600        One        Pump          15,600.00
      accessories,     tax,   insurance                               set with all
      etc.                                                            fittings
6.    Pump House                          2.5m     X 8000             One                        8000.00
      Brick , Cement, work with AC/ 1.5m           X
      Roof.                               2.1m
7.    Dug well (Alluvial area)            Meter         29000         4.5     m    X           29,000.00
                                                                      10.5 m
8.    Labour shed cum godown and Sq. ft                 50            500                      25,000.00
      equipment store. (Thatched
      house
9.    Plastic pipe for watering  Ft.                    18            255.5 Ft.                  4600.00
10.   Garden Tools                        Set           5000          One set                    5400.00
11.   Plant protection Equipments         Set           3000          One set                    4000.00
12.   Water storage tanks                 No.           19050         One                       19050.00
13.   Farm main gate with iron Grill.     One           7000          One                        7000.00
14.   Working capital (Recurring                                                             3,65,650.00
      capitalized for non-bearing                                                            1,17,350.00
      periods (4 year)
                                      Total                                                  4,83,000.00
                        ESTIMATION OF TOTAL PROJECT COST
                                 TOTAL PROJECT COST (TC)
                   (Recurring Cost Capitalized + Non-recurring Cost)


            i)     Working Capital (Recurring )
                   to be capitalized for
                   non-bearing periods only.                            Rs.1,17,350.00
            ii)    Working capital (Recurring)
                   (not to be capitalized)                              Rs. 17,000.00
            iii)   Capital investment
                   (fixed Cost – Non – Recurring)                       Rs.3,65,650.00




                               Total (I + ii+ iii)                      Rs.5,00,000.00




                              YEAR WISE CAPITAL INVESTMENT


Years              Particulars      Capital      investment Recurring     Exp. Total (Rs.)
                                    (Non – recurring (Rs.) Capitalized (Rs.)
        1               2                       3                  4                     5
  1st Year          Fixed Cost             3,65,650.00         60,150.00            4,25,800.00
 2nd Year               ---                     ---            19,350.00                 19,350.00
  3rd Year              ---                     ---            18,150.00                 18,150.00
   th
  4 Year                ---                     ---            19,700.00                 19,700.00
                                           3,65,650.00        1,17,350.00           4,83,000.00




        Total Investment (Project Cost) = Rs.5,00,000.00
                                        INVESTMENT PLAN
Sl. Type of Investment                                   ---- Investment in Different Years----
No.                               1             2            3      4     5    6    7     8     9
1.  Capital Investment




                                  3,65,650.00
    (Non-recurring)




                                                              ----
                                                ---




                                                                            ---


                                                                                          ---

                                                                                                    ---

                                                                                                               ---


                                                                                                                           ---

                                                                                                                                    ---
2.   Working Capital

                                  Capitalized


                                                Capitalized


                                                              Capitalized


                                                                            Capitalized
     (Recurring Capitalized)
                                  60,150.00


                                                19,350


                                                              18,150


                                                                            19,700


                                                                                          ---

                                                                                                    ---

                                                                                                               ---


                                                                                                                           ---

                                                                                                                                    ---
3.   Working Capital
     Recurring not- capitalized                               10,000
                                                10,000




                                                                            10,000


                                                                                          24,750

                                                                                                    25,750
                                  17000




                                                                                                               26,050


                                                                                                                           26,050

                                                                                                                                    26,050
4.             TOTAL
                                  4,42,800




                                                                                                                                    26,0580
                                                                                          24,.750
                                                29,350


                                                              28,150


                                                                            29,700




                                                                                                    25,750

                                                                                                               26,050

      N.B:                                                                                                                 26,050
          1.     Capital Investment                                                                          Rs.        3, 65, 650.00
                 (Non-recurring Fixed Cost)
          2.     Working Capital                                                          1st year                 Rs.     60,150.00
                 (recurring-capitalized)                                                  2nd year               Rs.       19,350.00
                                                                                          3rdyear               Rs.        18,150.00
                                                                                              th
                                                                                          4 year                Rs.        19,700.00
          3.     Working Capital
                 (recurring – not capitalized)                                            1st year                 Rs.     17,000.00


                           Total Investment                                                          Rs.5,00,000.00
      ABSTRACT OF YEAR WISE ESTIMATED GROSS INCOME FROM
                                                DIFFERENT CROPS
                                                  (Figs. In Rs.)

Sl.     Name of the                                             Gross income in dif. Years
No. Crop               5th           6th          7th            8th          9th        10th       11th       12th       13th       Total
1.      Mango
        (2 acre)




                                                                                                                                     4,80,000
                        25,000


                                     30,000


                                                   35,000


                                                                 40,000


                                                                              50,000


                                                                                         60,000


                                                                                                    70,000


                                                                                                               80,000


                                                                                                                          90,000
2.      Sapota




                                                                                                                                     1,09,250
        (1 acre)


                                                                              12,500


                                                                                         16,250


                                                                                                    18,750


                                                                                                               20,000


                                                                                                                          21,250
                        1,500


                                     4,000


                                                   6,250


                                                                 8,750


3.      Coconut
        (2 acre)




                                                                                                                                     3,57,000
                        70,000


                                     14,000


                                                   21,000


                                                                 35,000


                                                                              42,000


                                                                                         49,000


                                                                                                    56,000


                                                                                                               63,000


                                                                                                                          70,000
4.      Drumstick
        2.5 acre
        (Intercrop)
                                     (2nd Year)


                                                   (3rd Year)


                                                                 (4th Year)
                        (1st Year)




                                                                                                                                     2,00,000
        no Gestation
                        60,000


                                     60,000


                                                   40,000


                                                                 40,000




        period
                                                                              -


                                                                                         -


                                                                                                    -


                                                                                                               -


                                                                                                                          -

5.      Total
                                                                                                                                     11,46,250
                                     1,08,000


                                                   1,02,250


                                                                 1,23,750


                                                                              1,04,500


                                                                                         1,25,250


                                                                                                    1,44,750


                                                                                                               1,63,000


                                                                                                                          1,81,250
                        93,500




      NB:
        1. Income from Mango, Sapota and Coconut Crop starts after Gestation period
           (4th Year.)
         2. Income from Drumstick starts from 1st Year and continues up to 4th Year of
            Cropping.
         3. 5th Year starts after closing of Gestation period.
                         3.
                                                   2.
                                                                                      1.
                                                                                                      Sl.
                                                                                               No.

                                                                                      Coast




                                                   Gross
                                          income
                                                                         (Recurring




                         Net income
           (Sl>No.2-1)
                                                                                                      Particulars




                                                           expenditure
                                                                                              1
76,500                                93,500               17,000
                                                                                              2




98,000                                1,08,000             10,000
                                                                                              3




92,250                                1,02,250             10,000
                                                                                              4




1,13,750                              1,23,750             10,000
                                                                                              5
                                                                                                                    (Figs. In Rs.)




79,500                                1,04,500             24,750
                                                                                              6




99,500                                1,25,250             25,750
                                                                                                      YEARS
                                                                                              7




1,18,700                              1,44,750             26,050
                                                                                              8




1,36,950                              1,63,000             26,050
                                                                                              9




1,55,200                              1,81,250             26.050
                                                                                                                                     COSTS, GROSS INCOME AND NET INCOME OF DIFFERENT CROPS




97,06,600                             -                    -
                                                                                              Total
                                LOAN SHEDULE


1.   Type of Loan (Credit)                             Term loan

2.   Period of Loan                                    9+4

3.   Gestation period                                  4 years

4.   No. Of annual repayment instalments               9

5.   Rate of Interest                                  11.5% (Simple)

6.   Rat of Margin deposit                             20%

7.   Amount of margin to be deposited                  Rs 1,00,000

8.   Back ended Capital investment subsidy             20% of the total project cost

9.   Amount of back-ended capital investment subsidy   Rs 1,00,000

10. Refinancing Agency                                 NABARD

11. Subsidy allowing Agency                            National Horticulture Board

                                                       (NHB-GOI)

12. Total Project Cost                                 Rs 5,00,000

13. Loan amount to be sanctioned (Sl. No. 12 – 7)      Rs 4, 00, 000

14. Loan outstanding for repayment (Sl. No. 13 – 9)    Rs 3,00,000 (Principal)

15. Principal amount payable per instalment (9 equal   Rs. 33,333

     instalment)
                              REPAYMENT SCHEDULE

                                          (Fig. in Rs.)

Year   Term        Principal           Interest          Total          Net income Net
       Loan        Payable Per         payable per       Payable Per               Surplus
       Principal   installment         installment       installment
 A         B              C                    D           E=(C+D)           F     G=(F-E)
 1.    3,00,000    33,333              1,38,000          1,71,333       76,500     -94,833
 2.    2,66,667    33,333              30,667            64,000         98,000     34,000
 3.    2,33,334    33,333              26,833            60,166         92,250     32,084
 4.    2,00,001    33,333              23,000            56,333         1,13,750   57,417
 5.    1,66,668    33,333              19,167            52,500         79,750     27,250
 6.    1,33,335    33,333              15,334            48,667         99,500     50,833
 7.    1,00,002    33,333              11,500            44,833         1,18,700   73,867
 8.    66,669      33,333              7,667             41,000         1,36,950   95,950
 9.    33,336      33,336              3,834             37,167         1,55,200   1,18,033



                                 Financial Considerations: -
  1. Period of Loan repayment -                9 years
  2. Grace period                  -           4 years
  3. Gestation period              -           4 years
  4. Rate of interest              -           11.5
  5. Nature of interest            -           annual, simple
  6. Repayment period              -           9 years after Gestation Period.
CONSIDIRATIONS FOR BANKABILITY OF THE PROJECT PROPOSAL

                                 (Project of worth)


 1. Net Present worth:                       NPW
 2. Discounting Factor:                      DF (Higher 15%)
 3. Discounting Factor:                      DF (Lower 10%)
 4. Benefit Cost Ration:                     BCR (at DF 15%)
 5. Benefit Cost Ration:                     BCR at DF 10%
 6. Present Value of benefit (Income)        PVB
 7. Present value of Cost (Expenditure)      PVC
 8. Internal Rate of Return                  IRR (%)
 9. NPW = PVB – PVC (at DF 15% and 10%)
 10. BCR = PVB/PVC (at DF 15% and 10%)
 11. IRR =


    Lower Discount Rate +     Difference              X NPW at Lower Discount Rate
                              Between the two         Absolute difference between rates
                              discount                The NPW at two discounting
                                                      The Rates.
CASH FLOW ANALYSIS
           (Cash in Flow and Cash out Flow at DF 10%)

     Cash in Flow (Exp./Cost)                      Cash out Flow (income/benefit)

Year Expenditure    DF        Present Value of     Income      DF       Present value
     (Cost) (Rs.)   10%       expenditure (Cost)   (benefit)   10%      of income
                              PVC                  (Rs.)                (benefit) PVB
1.   4,42,800       0.909     4,02,505             93,500      0.909    84,991

2.   29,350         0.826     24,243               1,08,000    0.826    98,208

3.   28,150         0.750     21,112               1,02,250    0.750    76,687

4.   29,700         0.681     20,226               1,23,750    0.681    84,274

5.   24,750         0.619     15,320               1,04,500    0.619    64,685

6.   25,750         0.526     13,544               1,25,250    0.526    65,881

7.   26,050         0.510     13,285               1,44,750    0.510    73,822

8.   26,050         0.463     12,061               1,63,000    0.463    75,469

9.   26,050         0.420     10,941               1,81,250    0.420    76,125

     TOTAL          -         5,33,237             -           -        6,91,142


BCR at 10% DF       =       PVB
(1:1.3)                     PVC
                    =       6,91,142
                            5,33,237
                    =       1.296
                    =       1.3 (Feasible)
                                   CASH FLOW ANALYSIS
                  (Cash in flow and cash out flow at DF 15%)
                  Cash inflow (Exp/cost)                   Cash out flow (income/benefit)

year   Expenditure         D F 15%    Present        Income        DF 15%    Present value

       (cost) (Rs.)                   value of       (benefit)               of income

                                      expenditure (Rs.)                      Benefit PVB

1.     4,42,800            0.896      3,84,793       93,500        0.896             81,251

2.     29,350              0.755      22,159         1,08,000      0.755             81,540

3.     28,150              0.656      18,466         1,02,250      0.656             67,076

4.     29,700              0.570      16,929         1,23,750      0.570             70,537

5.     24,750              0.495      12,251         1,04,500      0.495             51,275

6.     25,750              0.430      11,072         1,25,250      0.430             53,857

7.     26,050              0.373      9,717          1,44,750      0.373             53,991

8.     26,050              0.324      8,440          1,63,000      0.324             52,812

9.     26,050              0.281      7,320          1,81,250      0.281             50,931

       Total               ---        4,91,147       ---           ---             5,63,270




           BCR AT 15% DF                      5,63,270.00
                        1:1.1                       4,91,147.00
                                                    = 1.146 (Feasible)
                          NET PRESENT WORTH AND IRR


                   NPW at DF 15%                               NPW at DF 10%

         PVB           PVC             NPW            PVB           PVC          NPW

 1.     81,251       3,84,793        -3,03,542      84,991         4,02,505    -3,17,514

 2.     81,540        22,159          59,381        89,208         24,243       64,965

 3.     67,076        18,466          48,610        76,687         21,112       55,575

 4.     70,537        16,929          53,608        84,274         20,226       64,048

 5.     51,275        12,251          39,024        64,685         15,320       49,365

 6.     53,857        11,072          42,785        65,881         13,544       52,337

 7.     53,991         9,717          44,274        73,822         13,285       60,537

 8.     52,812         8,440          44,372        75,469         12,061       63,408

 9.     50,931         7,320          43,611        76,125         10,941       65,184

TOTAL   5,63,270      491145          72,123        6,91,142       5,33,237    1,57,905



         NB: (1st year starts after 4 years of Gestation period)
                 NPW at DF 15%                 =   72,123
                 NPW at DF 10%                 =   1,57,905
                 IRR = 10 + (15 – 10) X            1,57,905
                                                   72,123
                       =10 + 5 X 2.189
                       = 10 + 10.9
                       = 20.9 (%) Feasible.
       National Horticulture (NHB) – At a Glance for development of
                             Commercial Horticulture
       Through production of fruits and quality planting materials.


       NHB was setup by the Government of India in 1984 with a wide mandate to
promote integrated development of horticulture. One of the production related schemes
such as development of commercial horticulture trough production of fruits and quality
planting materials have been proposed for execution in this project report.


Pattern of Assistance
         Back- ended capital investment subsidy @ not exceeding 20% of the total
          project cost with a maximum limit of Rs. 25 Lakh per project shall be provided
          under the scheme to these projects which are found technically and
          financially viable. However, for the North – Eastern / Tribal/ Hilly Areas,
          Maximum limit of subsidy would be 30.00 Lakh per project.


         Subsidy would be sanctioned and released under the scheme somewhat on
          the pattern of cold storage scheme, which is as under.


           Through participating banks/ Fls (through NHB of NABARD where
             refinance support is involved)
           Through NCDC in the case of cooperative sector.


         50% of the subsidy would be released to the leading participating Financial
          Institution / NABARD/ Bank/ Fls/ NCDC after the load is sanctioned and 50%
          of the loan is disbursed and remaining 50% on completion of the project. The
          financial Institution / Banks shall include NABARD, IDBI, SIDBI, ICICI, state
          Financial Corporations, State Industrial Development Corporation, NBFCs,
          NEDFI, National SC-ST/ Minorities/ Backward Classes Financial and
          Development Corporation, other designated loaning institutions of the States/
          Uts, Commercial / Cooperative Bank, etc.


         Cost of land will not exceed 10% of the project cost.


         Concerned bank / State Financial institution / NCDC may adhere to their own
          appraisal norms while sanctioning projects under the scheme.


Submission of proposal


         The promoter will submit the project proposal directly to the NABARD/ Bank/
          FI /NCDC as per the guidelines of the lending institution.


         NABARD/FI/Bank/NCDC will furnish a very brief profile/ fact sheet of the
          project along with a copy of sanction letter and release of 50% of term loan
          indicating the following details to the NHB HQ at Gurgaon with a copy to
          Assistant Director, NHB posted in the respective State.


  i)      Name, Address and location of the project / beneficiary
  ii)     Promoter’ Profile.
  iii)    Name of the associate bank (s)/ Fis
  iv)     Nature/ main activities under the projects
  v)      Item- wise financial projections,
  vi)     Means of finance including NHB Subsidy
  vii)    Brief Coverage on technical feasibility and financial viability
  viii)   Other relevant information, if any.
Procedure for sanction of project and release of subsidy by NHB.


       After receiving the sanction letter and release of 50% of the loan, 50% of the
        subsidy amount will be released to NABARD/ Bank/ FI/NCDC in advance for
        keeping the same in the Subsidy Reserve Fund Account of the concerned
        borrower, to be adjusted finally against loan amount of the band on
        completion of the project.


       Upon completion of the project, the concerned NABARD/FI/Bank/NCDC
        would inform NHB that the project has been completed within the over all
        guidelines of NHB and shall make a request to NHB for joint inspection of the
        project, in the presence of the promoter. The remaining 50% of the subsidy
        amount would be disbursed to the NABARD/ Bank/ FI/ NCDC, after the
        satisfactory report of the inspection of the project.


       NABARD/ Bank/ FI/ NCDC as the case may be, would submit to NHB
        utilization certificate of the subsidy released by NHB.


       Adjustment in Borrower’s Account: The subsidy released by NHB to
        NABARD/ Bank/ FI/ NCDC on behalf of the individual units that are
        sanctioned assistance will be kept in the separate account. The adjustment of
        subsidy will be on the pattern of back –ended subsidy. Accordingly, the full
        project cost including the subsidy amount but excluding the margin money
        contribution from the beneficiary would be disbursed as loan by the banks.
        The repayment schedule will be drawn on the loan amount in such a way that
        the subsidy amount adjusted after the bank loan portion (excluding subsidy) is
        liquidated.
         No interest chargeable on subsidy portion: The subsidy admissible to the
          borrower under the scheme will be kept in the Subsidy Reserve Fund A/c-
          borrower – wise in the books of the financing banks. No interest should be
          applied on this by bank. In view of this, for the purpose charging interest on
          the loan, the subsidy amount should be excluded. The balance lying to the
          credit of the Subsidy Reserve Fund A/c will no form part of Demand and Time
          liabilities for the purpose of SLR/CRR. Suitable instructions issued in this
          regard by the RBI from time to time would be followed.


Networking of the scheme


       With a view to achieve the stipulated objectives, the district authorities, other
concerned states /UT/ Central Government Organisations, Agencies, Financial
Institutions and private Associations etc. may encourage the networking of their
activities/ scheme with the NHB. The subsidy would be released through the Financial
Institutions/ Banks on the lines suggested in the proceeding paragraphs.


Other conditions
         The project proposals may have vertical or horizontal integration.
         A signboard at the site “NHB Assisted Project” will also be exhibited.
         NHB reserves the right to modify, add, and delete any term/ condition without
          assigning any reason thereof.
         NHB’s interpretation of various terms will be final.
         As and when required, pre and post inspection would be undertaken by NHB
          representative(s) to find out the physical and financial progress.
         NHB shall have a right to inspect/ monitor the project and very the related
          records at any time during the economic life of the project.

				
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