The Warehouse Construction Subsidy Scheme, also known as the Gramin Bhandaran Yojana, is a capital investment scheme from the Indian government. With this scheme, the government hopes to provide farmers with subsidies for the construction, renovation, and repair of warehouses. The scheme is operated under the National Bank for Agriculture and Rural Development (NABARD), and it aims to help farmers in rural areas enhance their storage capacity through the construction of godowns.
What are the benefits of the Warehouse Construction Subsidy Scheme?
The Warehouse Construction Subsidy Scheme offers farmers the following benefits:
Helps build godowns equipped with scientific storage facilities to store agricultural produce
Avoids distress sales by farmers right after the harvesting season and improve their financial condition
Improves the quality of farm produce
Enhances marketability by creating an agricultural marketing infrastructure in India
Encourages private and cooperative sectors to invest in the agriculture sector
What are the features of the Warehouse Construction Subsidy Scheme?
Listed below are the main features and subsidies announced by the Indian government under the Warehouse Construction Subsidy Scheme:
Scheduled caste (SC) and scheduled tribe (ST) entrepreneurs and their cooperatives can get a subsidy of 33.33% of the total capital cost of the project or a maximum of Rs 3 crore
Farmers, agricultural graduates, and cooperatives can get a subsidy of 25% of the project's total capital cost, or up to a maximum of Rs 2.25 crore
Individuals, companies, and corporations can get a subsidy of 15% of the project's total capital cost or up to a maximum of Rs 1.35 crore
Cooperatives can get a subsidy of 25% of the project's total capital cost for the renovation of warehouses with the aid of the National Cooperative Development Corporation (NCDC)
Who can benefit from the Warehouse Construction Subsidy Scheme?
The following categories are covered under the Warehouse Construction Subsidy Scheme:
Farmers
Farmers' groups
Growers' groups
Non-Governmental Organisations (NGOs)
Marketing boards
Non-municipal local bodies
Cooperative institutions
Agro-processing cooperative societies
Agro-processing corporations
Self Help Groups (SHGs)
Partnerships
Companies and corporations
Agricultural Produce Market Committees (APMCs)
Agricultural produce processing corporations
Quality testing laboratories
What are the eligibility criteria for the Warehouse Construction Subsidy Scheme?
To avail of the Warehouse Construction Subsidy Scheme, an applicant should be:
Part of one of the categories mentioned in the previous section
Citizen of India hailing from a rural area in the country
Farmer or someone who works in an agriculture organisation
How can one apply for the Warehouse Construction Subsidy Scheme?
Applicants can apply for the scheme online. Here are the steps to apply:
Visit the official website of NABARD at www.nabard.org
Look for Warehouse Construction Subsidy or Gramin Bhandaran Yojana
Click on 'Apply Now'
Fill up the application form for the scheme by entering details such as date of birth, name, village or district of residence, etc.
Attach the mandatory documents like identity and address proof
Click on 'Submit'
What are the mandatory documents required to apply for the Warehouse Construction Subsidy Scheme?
The following documents are required while applying for the Warehouse Construction Subsidy Scheme:
Aadhaar card
Ration card
Residence certificate
Bank account details
Mobile number
Passport size photo
What banks are associated with the Warehouse Construction Subsidy Scheme?
The following types of banks are associated with the Warehouse Construction Subsidy Scheme:
Regional Rural Bank
Commercial Bank
Urban Cooperative Bank
State Cooperative Bank
North Eastern Development Finance Corporation
Agricultural Development Finance Committee
State Cooperative Agricultural and Rural Development Bank
The Warehouse Construction Subsidy Scheme or Gramin Bhandaran Yojana can help farmers store their farm produce without hassles through the construction of adequate godowns. HDFC Bank offers Working Capital Loans for the agricultural sector that can help farmers and other farming enterprises expand their operations, build godowns, and focus on better equipment. For further details, reach out to your Relationship Manager or visit the closest branch to know more.
If you are a micro or small business owner seeking additional financing, HDFC Bank has numerous customised solutions to help you. You can also apply for a Working Capital Loan to get started. For further details, reach out to your Relationship Manager or visit the closest branch to know more.
Click here to apply for your loan now!
Read more on the guide to credit guarantee trust for micros and small enterprises here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. All loans for MSMEs, at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.