Govt approves Rs 450cr subsidy for rural godowns

"The Cabinet Committee on Economic Affairs today gave its approval for the implementation of the revised scheme 'Capital Investment Subsidy for Construction/Renovation of Rural Godown' during 11th plan period with a total outlay of Rs 450 crore," Minister of State, Prime Minister's Office Prithviraj Chavan told reporters after the meeting.     

Under the revised scheme, government would provide capital subsidy in the range of Rs 46.87 lakh to Rs 62.50 lakh to rural cooperatives, farmers and self-help groups for construction or renovation of godowns in rural areas.     

The scheme is expected to help in creation of additional storage capacity for storage of farm produce and strengthening of agricultural marketing infrastructure in the country.     

The minister said the subsidy for women farmers and their self-help groups (SHGs) or cooperatives and SHGs of SC/STs has been enhanced from 25 per cent to 33.33 per cent of the total cost with a maximum limit of Rs 62.50 lakh under the scheme.     

Local bodies, other than the municipal corporations will also be eligible for taking up the projects of construction of rural godowns under the scheme, he said.