NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Mumbai : 3rd Floor, A & B Wing,
C-24, "G" Block,
Bandra Kurla Complex,
Mumbai - 400 051.
( 022-2653 9333
Fax 022- 2653 0090
Circular No. 219 /ICD- 46 /2009
24 December 2009
The Chairman / Managing Director
All Scheduled Commercial Banks /
All Scheduled (Primary) Urban Cooperative Banks
All other institutions eligible for NABARD refinance
Centrally Sponsored Scheme - Integrated Development of Small Ruminants and Rabbits
1As you are aware, sheep and goats are generally reared by the poor households of the rural population and they provide to the society meat, wool and manure. At the same time, these animals have wide adaptability to suit many of the agro-climatic conditions. Nevertheless, poor awareness of the role played by the sector for the downtrodden, absence of attention by the planners/financial agencies and lack of focus on improving productivity of the animals are the main reasons for the sector remaining backward. However, development of small ruminants in an integrated manner holds great potential for generating employment and enhancing rural prosperity.
2. In this background, it has been decided by Government of India to launch a centrally sponsored scheme for integrated development of small ruminants and rabbits for providing Venture Capital assistance during the remaining period of XI Five Year Plan in 24 states with a focus on 114 districts for small ruminants and 12 districts for rabbits as indicated in Annexure I. Under the scheme an Interest Free Loan (IFL) shall be provided based on the total financial outlay (TFO) for the various components as indicated at para 5.1 of the guidelines.
3. The assistance under the scheme shall be available to landless labourers, marginal farmers and their SHGs for setting-up rearing units with preference to traditional shepherds, women and SC/STs. For breeding farms Individual farmers, traditional breeders, entrepreuners, NGO, etc, would be eligible with preference to those who have organised the farmers into groups for taking up rearing of small ruminants and rabbits. The IFL @ 50% of the TFO of the project with the upper ceiling as indicated at para 5.1 of the guidelines shall be available for all categories of the promoters.
4. Assistance under the scheme would be purely credit linked and subject to sanction of the project by eligible institutions. Banks shall, after sanction of loans, apply through their Controlling Offices to Regional Office (RO) of NABARD for sanction of Interest Free Loan. NABARD RO will scrutinise the claim proposal and ensure that those, which satisfy the terms and conditions are put up to State Level Sanctioning and Monitoring Committee (SLSMC) for sanction. The SLSMC will sanction the Interest Free Loan for projects to eligible institutions. NABARD would provide refinance support to the eligible financing banks for the term loan extended under the scheme. The extent and interest rate on refinance will be as per instructions issued by NABARD from time to time.
5. The implementation of the scheme shall be monitored by a Central Monitoring Committee at national level on half yearly basis. At the state level the progress will be reviewed by the State Level Sanctioning and Monitoring Committee (SLSMC) on a quarterly basis. The participating banks will conduct periodic inspections of the units and give a feedback to the SLSMC on a consolidated basis.
6. The SLSMCs in each State are expected to meet quickly after their constitution and decide whether proposal concerning each beneficiary is to be placed before the Committee for approval or proposals of a district/cluster are to be firmed up and bunched together for consideration of the Committee or the Committee would ratify the action taken by the financial institution on individual projects.
7. We request you to circulate the operational guidelines among your controlling offices and branches with instructions to implement the scheme expeditiously. You may also arrange to give wide publicity to the scheme and advise your offices to submit the proposals to the Regional Offices of NABARD in the respective states. The State Animal Husbandry Department may also be approached for popularising the scheme and mobilising applications from prospective promoters. A copy of the operational guidelines of the scheme is enclosed. English and Hindi versions of the operational guidelines would be placed in the website of NABARD.
Please acknowledge receipt.
(S C Kaushik)
Chief General Manager