Nabard Okays Rs 40.56 Crore For Gujarat Storage Project

The National Bank for Agriculture and Rural Development (Nabard) has sanctioned Rs 40.56 crore for setting up 34 cold storage projects under the credit-linked capital investment subsidy scheme in Gujarat. This is expected to create an additional cold storage capacity of nearly one lakh metric tonne in the state in one year.

According to the bank, the scheme, which has been introduced to strengthen the post-harvest storage and marketing infrastructure to prevent loss of perishable commodities especially fruits and vegetables, was announced by the government in 1999-2000.

Till date, Nabard in collaboration with NIB has sanctioned Rs 8.30 crore as subsidy for the projects which have since been completed and commissioned in the state, a Nabard press release said. Additionally, the bank has sanctioned a refinance of Rs 21.08 crore to various financing institutions.

The projects are spread in the Banskantha, Mehsana, Patan, Rajkot, GandhiNagar, Anand, Nadiad and Kutch districts and have setup cold storage facilities for potatoes, onion, fresh vegetables, spices, lemon, fruits and grocery items. The cold storage projects have used efficient and power saving cooling technologies with multi-chambers with provision for storing variety of agri-products.

The scheme is expected to help farmers, especially small farmers, prevent distress sale to ensure better returns for their produce. Under the capital investment subsidy scheme being implemented by Nabard, 25 per cent of the project cost is given as subsidy amount and the bank loan extended at concessional rate of interest of PLR plus 1 per cent. The scheme shall be effective up to March, 2002.