The National Bank for Agriculture and Rural Development has opened its doors to private industry. Private firms can pitch for a Rs 2000 crore fund. It covers all dry, wet, and cold storage needs of agriculture produce and agriculture inputs.
Earlier, NABARD had restricted itself to lending to only State Governments. This is in order to plug the gaps and meet the needs in warehousing and storage of agri produce. The fund is also available for State Governments, and will be made available on a first-come-first served basis. The interest is at 6.5% for the first seven years. Private firms will have a pay a small risk premium for repayments after the seven year period.
In AP, the shortage of storage facility has led to a crisis in the last season and affected both support price and procurement of paddy. Under this scheme, if new godowns are constructed, it can help overcome the problem
Read the report - The Hindu Business Line - September 30
Earlier, NABARD had restricted itself to lending to only State Governments. This is in order to plug the gaps and meet the needs in warehousing and storage of agri produce. The fund is also available for State Governments, and will be made available on a first-come-first served basis. The interest is at 6.5% for the first seven years. Private firms will have a pay a small risk premium for repayments after the seven year period.
In AP, the shortage of storage facility has led to a crisis in the last season and affected both support price and procurement of paddy. Under this scheme, if new godowns are constructed, it can help overcome the problem
Read the report - The Hindu Business Line - September 30
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