APPEDA support to Exporters for Agri products on common infrastructure projects

Posted on 26 April 2023 Category : Export incentives and benefits

SUPPORT FOR COMMON INFRASTRUCTURE DEVELOPMENT PROJECTS

The information from APEDA reads as below:

APEDA has been actively involved in creation of cold chain infrastructure for horticulture produce to improve quality and value addition of produce and to achieve optimum shelf life resulting into increased quality exports of Indian agriculture produce. Recently, major focus has been laid to encompass setting up of processing units for horticulture and agriculture produce and also strengthen the infrastructure at seaports. Further, Prime Minister’s Office has also identified Creation and Management of Cold Chain Infrastructure for Agriculture products as a thrust area and targets have been fixed for different Government agencies engaged in the field of creation of cold storage capacities including APEDA for agro export products.

Under its Scheme for Infrastructure Development, APEDA provides 90% assistance of the eligible project cost to State Government Agencies for setting up of cold chain infrastructure which includes pre-cooling, cold store, high humidity cold store, CA stores, and material handling plant and machinery viz. sorting grading, washing, waxing, packing in an integrated manner; Centre for Perishable Cargo at airports; Qualitative infrastructure at seaports, Processing Units, Testing Laboratories, etc. for common use by exporters for exports of agriculture products.

Various State Government agencies, State Agricultural Marketing Board, State Agriculture / Horticulture Departments and other organizations in the past, have been benefited by APEDA for setting up of such facilities by strengthening their export infra. capabilities and capacities. More than 100 projects have so far been sanctioned by APEDA in last 15 years in various states, which includes setting up of integrated pack houses with pre-cooling, cold storage, material handling, Vapour heat treatment, irradiation facilities; Centres for Perishable Cargo at 12 major airports, flower auction centres, Setting up/Upgradation of Laboratories for export testing for common use, etc.

With a view to increase the storage and processing capacity of agriculture produce in the country and to encourage the potential beneficiaries / stakeholders, we are providing here below the Standard Operating Procedures (SOP) and guidelines for preparation of Detailed Project Report.

Standard Operating Procedure (SOP) of the Scheme:

Only Central and State Government and public sector enterprises are entitled to avail assistance. The proposed facility should be for common benefit of exporters of APEDA scheduled products and directly resulting in adequate increase in export volumes and remunerative returns to farmers. Land free from all encumbrances and in the possession of the project implementing agency is pre-requisite for consideration of assistance.

A detailed techno economic feasibility study shall be conducted by Central / State Govt. institutions and submitted along with the duly filled check list of the project (a format for the same is Annexed). The study shall inter-alia give details on production; availability of land; location advantage; backward and forward linkages; export projections; physical and financial outlay of the project; financial analysis (preferably by the financial institution); operational aspects; socio-economic benefits; adherence to NHB technical and costing norms and redressal of environmental hazard issues, etc.

Financial assistance would be provided towards the cost of civil construction and plant, machinery equipment. Rest of the funds including working capital, margin money, preliminary and pre-operative expenses, cost escalation, etc. are to be brought in by the beneficiary. State Government will arrange for necessary supporting infrastructure like connecting roads, electricity, water connection etc on priority and communicate in writing regarding availability for the same in advance along with the Detailed Project Report.

The project will be evaluated by APEDA’s Technical Committee (TC) consisting of members from various field viz. horticulture, research, government financial institutions, banks, Ministry of Food Processing Industries, National Horticulture Board, etc.

If the proposal is approved by the TC, the same will be placed before APEDA Authority for approval.

After sanction of the proposal by the Authority, an MoU will be signed between APEDA and the beneficiary, which administer various aspects regarding the release of grant, implementation schedule and monitoring under the project.

After signing of MoU, the first installment (at present 40%) of the total grant sanctioned by APEDA is released against receipt of Bank Guarantee of equivalent value.

As per the Government of India’s directive, APEDA deducts an amount of 5% from every payment of the sanctioned grant to meet its overhead costs of processing and supervision.

The responsibility of running, operation and maintenance of the project and all statutory liabilities (legal or financial) accruing from ‘The project’ rest with The Agency. The Agency will have to comply with the following terms and conditions:

Any increase in the approved project cost will be borne by the agency.

The funds or facility shall not be diverted or utilized for the purpose other than, for which it is sanctioned.

The agency shall make effective utilization of the assets only for the purpose as visualized, specified and understood under the Scheme.

The agency shall maintain the assets in good working condition at all times.

The agency shall furnish to APEDA such statement of account and of performance, or any other information called for by APEDA from time to time.

The Agency will acknowledge the assistance of APEDA by painting the APEDA logo along with words “Assisted by APEDA” at a prominent place at ‘The Project’.

The agency shall comply with any term or condition that may be imposed from time to time by APEDA to achieve the objective of the Scheme and on such condition, being imposed on the agency by notice in writing, the same shall be binding on the agency.

The agency shall not sell or transfer or alienate or other part with the possession in whole or part of the assets without prior approval of APEDA. .

The agency shall allow the representative of APEDA to inspect the assets and the place of operation of the agency from time to time; and the agency shall allow such inspection without any hindrance, whatsoever.

The charges for utilization of the facility would be decided in consultation with APEDA and will be notified by ‘The Agency’. These charges will be fixed on a scientific basis after examining the relevant factors including cost of services, maintenance/repairs, cost of hiring labour etc.,

For preparation of DPR, the agency may take the help of APEDA Headquarters at New Delhi and APEDA Regional Offices at Mumbai, Bangalore, Kolkata, Hyderabad and Guwahati.

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