Agriculture, one of India’s most prominent and essential industries, goes hand-in-hand with warehousing. With the ever-increasing agriculture sector, the demand for warehouses is also rising. To help the industry, the Government of India developed this capital investment subsidy scheme on 1st April 2001- Gramin Bhandaran Yojana for the rural areas. The project’s objective is to provide a subsidy on warehouse construction to the farmers to build or renovate proper godowns to store their produce.
Warehouse Subsidy Scheme Overview
- Scheme Name: Gramin Bhandaran Yojana / Gramin Warehouse Yojana
- Scheme Modified: 01.04.2001
- Scheme Fund Allocated: 15% of capital cost to up to INR 3 crores
- Type of Government Scheme: Central Government of India
- Sponsored / Sector Scheme: Rural storage scheme
- Website to apply: https://www.nabard.org/
- Helpline No.: NABARD- (91) 022-26539895/96/99
Features of NABARD Rural Godown Scheme
The Central Government warehouse scheme allows the farmers to make suitable storage units to protect their produce and harvest from rain and other animals. To be eligible for the loan under this scheme, the applicants must fulfil and follow these NABARD guidelines for warehouse construction.
- The godown construction must meet all the criteria and specifications put forward by the government.
- The warehouse must be safe from rodents and birds.
- The openings of the warehouse must be as per the standard protocol.
- Must have a proper drainage system and preventive measures against fire accidents.
- It should have easy access inside and outside with decent roads for loading and unloading.
Further details of the NABARD loan for a warehouse are given in the table below.
| Category | Remarks |
| Who is eligible? | Entrepreneurs, companies, cooperatives, NGOs, farmers’ groups, etc. |
| The scheme covers | Construction or repair of warehouses, cold storage, and silos. |
| Minimum capacity of storage unit |
|
| Loan amount |
|
| Covers the cost of | Boundary wall, platform, internal drainage system, grading, packaging, internal road system, etc. |
| Documents required | As per the guidelines of Inspection Department, Law Department, and Risk Management Departments |
| Loan Repayment | Min. 2 years moratorium with interest payment |
| Loan interest rate | As per Rural Infrastructure Development Fund interest rates. |
| Loan Tenure | More than 7 years |
| Insurance coverage | The applicant must get insurance for the asset to get the loan. |
Benefits of NABARD Subsidy for Warehouse
- The NABARD warehouse scheme relieves the farmers of a considerable burden by providing loans for various expenses in the form of repair and construction of different aspects of a warehouse.
- This Government warehouse scheme allows both individuals or a group of individuals to apply for the loan.
- Even though the storage capacity exceeds the allotted limit, you can still get a loan within the allowed limits.
- Even smaller capacity storages can also avail of the scheme with a proper inspection from the bank.
Drawbacks of NABARD Warehouse Construction Subsidy
- As beneficial as this agriculture warehouse subsidy scheme for the farmers, the loan amount is applicable only up to 10,000 tonnes.
- You will not be eligible for this scheme if you seek assistance from any other source. This can be challenging for those with higher storage capacity.
- You may only get the loan for smaller storage units if you are in a particular area.
How to Apply for a Government Subsidy for Warehouses?
- Step 1: You can visit the official website to apply for the NABARD loan for godown.
- Step 2: Click on the specific warehouse yojana scheme.
- Step 3: Follow the detailed instructions and provide the necessary supportive documents.
- Step 4: Submit the form for the agriculture godown subsidy.
The further proceedings include inspection and loan approval from the respective banks under this scheme.
Documents Required for Warehouse Loan From NABARD
The application for the government subsidy on warehouse requires documents as mentioned in the various schemes specified. The primary documents required are,
- Aadhaar Card
- Ration card
- Bank account details
- Mobile number
- Passport size photograph
- Address proof
Conclusion
The warehouse subsidy scheme is available in all states of India. You can contact the state government or the local authorities for more details on this scheme.
Note: The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial or legal advice. Pesticides are a considerable risk of loss in crops and viewers are advised to do their own research before making any decisions.
