Guidelines for sanction of the proposals/projects under R&D in Post Harvest Technology(PHT) Scheme

1.         The main objective of the R&D in PHT Scheme is to develop state of the art technology for processing of oilseeds, pulses, maize and oilpalm and popularize use of newly developed technology to augment availability of quality edible oils, pulses and maize products.

2.         The scheme “Research & Development in Post Harvest Technology in Oilseeds, Pulses, Oilpalm & Maize  consists of two major programmes:

(i)     Research & Development Projects for Post Harvest Technology

(ii)   Popularization and Demonstration of Post Harvest Technologies.

3.         The R&D projects are being taken up by CSIR as nodal agency whereas the “popularization and demonstration of Post Harvest Technologies” is being handled by  Department of Agriculture & Cooperation(DAC), Ministry of Agriculture.

4.         The following programmes under popularization & demonstrations in Post Harvest Technologies are being implemented during 10^th Five Year Plan    

1. Establishment of palm oil mill of 2.5 tonnes FFBs per hour with technology developed by Regional Research Laboratory, Trivendrum(RRLT).   

2. Establishment of 1 TPD Modern Oil Expeller with the technology developed by MERADO, Ludhiana.  

3. Modernization of Huller Rice Mills  

4. Establishment of Rice bran Oil Refineries:  

5. Establishment of Red palm oil & vegetable oil blend project  

6. Up-gradation of existing palm oil mills.  

7. Up-gradation of soybean oil refineries.  

8.   Up-gradation of Solvent Extraction Plants.  

9.  Up-gradation of Oil Milling.  

10.  Primary processing for Maize.  

Under the programme of modernization of Huller Rice Mills, State Governments are the implementing agencies for the selection of beneficiary.  DAC, Ministry of Agriculture would release the subsidy amount i.e. 50% of the project cost, subject to a cap of Rs.50,000/= to the concerned lead banks which will be paid to the Project Engineering Company (PEC)for supply of machinery to the beneficiary.  The balance amount will be arranged by the beneficiary as bank loan.  For other programmes, the following procedure will be adopted:-

(ii)               The entrepreneurs willing to adopt the technology and fulfilling eligibility criteria laid down in Annexure-II  will be required to submit their applications in the prescribed format at Annexure-I.

(iii)             The applications received by this Department will further be scrutinized/evaluated  by the Project Appraisal Committee on the basis of criteria laid down for the purpose at Annexure-III. The Project Appraisal Committee after having scrutinized/evaluated all the received applications would recommend the proposals in the order of preference  for approval by the Department.

(iv)              After approval,  formal approval letter will be issued to the selected beneficiaries in order of preference depending upon the availability of funds under the scheme.  The selected beneficiaries will be required to complete necessary formalities/documentation before release of funds. 

(v)                The grant-in-aid will be released to the concerned PECs in the following manner:-

(a)               50% of the total grant-in-aid amount will be released  against the supply of plant and machinery at the selected site.

(b)               Next installment of 25% of total grant-in-aid will be released on successful commissioning of the project.

(c)               The rest 25% of the grant-in-aid will be released after 1 year of the successful commissioning of the project and compliance of all the stipulations by the beneficiary.

(vi) The selected entrepreneurs will follow the laid down terms & conditions of sanction  at Annexure-IV  within a stipulated period.  

ANNEXURE-I

Format for Submission of applications/proposals for availing Central Grant-in-Aid assistance  from DAC, Ministry of Agriculture

1.                  Name of the applicant:-

2.                  Age

3.                  Address:-

(i)     Establishment;

(ii)   Location of factory/workshop;

4.                  Academic Qualifications;

5.                  Experience in the relevant field;

(furnish document in support)

6.                  Technology to be adopted alongwith

the Technology developer;

7.                  Profile whether

(i)     Individual

(ii)   Partnership firm

(iii) Company

(iv) Others

8.                  Name of the Directors with;

(i)     Qualifications

(ii)   Experience

9.                  Financial Health;

(i)     Bank Account No.

(ii)   Bank Statement

(iii) Balance sheets for the last three years.

10.             Any Govt. dues like taxes, electricity, water, telephone bills(undertaking thereof)

11.             Detailed project report including information on:

(a )  Promoter’s Contribution(Supporting papers)

(b )  Financial tie-up(RBI approved banks/financial institutions)

(c )  Details of any other source of funding

(d ) Details of the work done, if any,  in connection with the project                                                       including list of plant and machinery acquired;

(e ) Letter of Indent (LOI), if any.

      12.      Name, address and full details of Project Engineering

                 Company(PEC).

ANNEXURE-II

Eligibility Criteria for availing Central grant-in-aid assistance from DAC, Ministry of Agriculture for Establishment of Projects under the scheme

1.                The beneficiary should preferably be a profit making venture reflected in  audited balance sheets for the last three years.

2.                The beneficiary should not be a defaulter of any government dues.

3.                The beneficiary should have atleast two years experience in the relevant field.

4.                The beneficiary should make atleast 25% contribution towards the block cost of the project.

5.                The beneficiary should take atleast 25% bank loan of the total project cost & should submit a letter and in principle sanction from the bank/RBI/ financial institutions to this effect.

6.                The beneficiary should  also submit an undertaking expressing his willingness to promote the technology and ensure to market atleast 40% of the production  in consumer packs with brand name.

7.                The beneficiary will also be required to sign a tripartite agreement in prescribed proforma enclosed at Annexure-VI with technology developers(RRLT/IICT Hyderabad) and Project Engineering Company(PEC/Licensee). 

8.                The beneficiary will be required to provide bank guarantee of an amount equivalent to 25% of the subsidy amount as security for a period of two years in favour of the DAC which will be released after successful commissioning of the project and fulfillment of terms & conditions as laid down in the sanction letter for production and marketing of the products.

9.                Any violation of terms & conditions by the beneficiary will  lead to stoppage of further releases and forfeiture of bank guarantee;

10.            Timely commissioning of the project will be binding on beneficiary as well on the part of Project Engineering Company(PEC) as per the schedule specified in the sanction letter.

11.            The beneficiary would communicate the acceptance of the sanction within four weeks and would enter into Tripartite agreements within eight weeks of issue of sanction letter.

12.            The beneficiary would submit an undertaking that he has not availed any subsidy from any other government organization for the same purpose.

ANNEXURE-III

CRITERIA FOR EVALUATION OF PROPOSALS BY PAC FOR RECOMMENDING CENTRAL GRANT-IN-AID ASSISTANCE FROM  DAC, MINISTRY OF AGRICULTUR

ANNEXURE-IV

Terms and Conditions as per letter of Sanction

(i)                 The Project/refinery would be established by any one of the Project Engineering Companies (PEC) who has taken the license of technology package from the technology developer.

(ii)               The beneficiary would enter into a tripartite agreement with Laboratories/technology developers and the selected PEC within 2 months of sanction.

(iii)             At least 25% of the project cost would be met through a bank loan.

(iv)              The promoters’ contribution will be at least 25% of the block cost. The names of the promoters alongwith the amounts to be contributed by them and bank statements showing the funds position in respect of these Directors/Promoters would be submitted to DAC .

(v)                Details of the contribution through unsecured loan for meeting the balance project cost will be made available to DAC, Ministry of Agriculture;  alongwith name of the person, amount to be taken as unsecured loan and bank account numbers.

(vi)              Undertaking by the beneficiary that there are no Govt. dues on entrepreneurs such as electricity, telephone and water charges, sales and income tax and other taxes etc. and the  organization is not a defaulter  in repayment of loans taken from any financial institutions and Banks and not declared a defaulter as per the list published by RBI.

(vii)            The beneficiary will  allow free access and inspection to refining projects  and records to Ministry of Agriculture and to the Technology developer.

(viii)          Technology developed will only be used in the projects  to be set up for which Grant-in-aid is being  provided in the form of plant and machinery.

(ix)              Technology developer would be involved at all stages for inspection of the machinery, erection, commissioning and trial runs as per the parameters laid down,

(x)                Beneficiary will make investments in creating public awareness regarding benefits of the products.

(xi)              Atleast 40% product  will be marketed directly under brand name in consumer packs