CapitalInvestmentSubsidyforConstruction/Expansion/ModernisationofColdStoragesandStorages

ITEMS DESCRIPTION

ChapterI MakingApplicationforaLetterofIntent

ChapterII Guidelines for Inspection / Joint Inspection Projects onCompletion

ChapterIII GuidelinesforMakingSubsidyClaims

FormatI CHECKLIST OF DOCUMENTS TO BE ATTACHED WITHAPPLICATION

FormatII APPLICATIONFORM

FormatIII AFFIDAVIT

FormatIV BASICDATASHEET

FormatV PreInspectionFormat

CHAPTERI

Making Application for a Letter of Intent under the scheme"Capital Investment Subsidy Scheme for Construction/Expansion/MondernisationofColdStorages/Storages"

1. WhocanapplyforgettingLetterofIntent

Anaturalperson,agroupofindividualsoralegalperson(PartnershipFirm,aTrust,Cooperative Society, a Society registered under Registration of Society Act, acompany,selfhelpgroup)mayapplyforissueofLOI.

WheretoApplyforIssueofLOI

A. PhysicalApplicationonPrescribedFormatManagingDirectorNationalHorticultureBoardPlotNo.85,InstitutionalArea,Sector18,Gurgaon

B. OnlineSubmissionofApplicationNHBhasintroducedasystemforonlinefilingofapplicationsforLetterofIntent(LOI)onitswebsitewww.nhb.gov.in.TheHomepageoftheWebsiteprovidesalink"ApplyOnlineandTrackStatus"underColdStorageScheme.Thissectioncontains information like how to apply, cost of application& payment options,checklist,etc. tohelpapplicants toapplyonline. Applicanthas following threeoptionstopaythecostofapplication:

DemandDraft ElectronicTransferoffundsinNHB'saccount Credit/DebitCard(VISA/Master)

Followingisthestructureforcostofapplication:

CostofApplication Demand Draft andElectronic Transfercategory

Credit or Debit Card(VISA/MASTER)

For Projects having costuptoRs10.00lakh

Rs1,000/ 1000/ (plus applicablechargestowardspaymentof gateway transactionfee)

ForProjectshavingcost>20lakhanduptoRs50lakh

Rs2,000/ Rs 2000/ (plusapplicable chargestowards payment ofgatewaytransactionfee)

ForProjectshavingcost>20lakhanduptoRs50lakh

Rs5,000/ Rs 5000/ (plusapplicable chargestowards payment ofgatewaytransactionfee)

ForProjectshavingcost>50lakh

Rs10,000/ Rs 10,000/ (plusapplicable chargestowards payment ofgatewaytransactionfee)

In case, the payment option is Demand Draft or through ElectronicTransfer inNHB'saccount,applicantwillhavetofirstgetthedemanddraftpreparedortransferthefundsinNHB'saccount,asDD/ElectronicTransfernumber is required tobegiven in theonlineapplication. Inthiscase,anapplicantwillbeissuedTemporaryID.PermanentLOICodeincaseofelectronicpaymentwouldbeissuedonreceiptoffundsinNHB'saccountandinthecasedemanddraftonreceiptofdemanddraftbytheNHB.

IncaseapplicantoptstopaycostofapplicationthroughCreditorDebitCard,heisissuedonthespotacknowledgementalongwithpermanentLOICode.

After filing online application, applicant should take print out of his onlineapplicationform.Hemaytakeaprintout induplicate,retainonecopy forhisrecords and the second copy may be attached with the physical applicationalongwithothernecessarydocuments.Itisnecessaryfortheapplicantstofillupand submit the detailed application form (Format1) apart from onlineapplicationform.

2. HowtoestablishIdentityofApplicant

i. Incasesofapplicantbeinganaturalperson,hisname,sex,age,occupation,fathers/husbandsname,permanentaddress,fullpostaladdresssupportedby selfattestedpassport sizephotographofapplicantaffixedonapplicationmaynormally suffice for establishing identity of natural person or group ofindividuals.

ii. Incasestheapplicant isastatutoryperson,toknowtheapplicantfollowingdetailsmustbeinsistedupon

a. Attested copy of Document of Registration of the applicantbody/company.

b. MemorandumandArticlesofAssociationofapplicantbody/company.c. Board ofDirectorsResolution, duly passed and authorizing signatory of

applicationtoapplyforbankloan,NHBsubsidyandtakeallotherrelatednecessary steps in this regard. Signatory of the application must bedescribed in the Board resolution with name, age, sex, designation /occupation, fathers or husbands name, permanent address, postaladdress and his self attested photograph should be attached with theapplicationform

d. ApplicantbodysBoardofDirectors /CompetentBodyofManagementsResolution permitting or approving Investment proposal, taking of bankloanetcshouldalsobeenclosed.

e. AcopyofapplicantbodyslatestAuditReportandAnnualReport

3. Titleofthelandandcopyofrecordofright

Thetitleofthepieceoflandonwhichtheprojectisproposedtobesetupshouldbeinthenameofapplicantinthecapacityofownerorlesseeforminimumperiodof15years.Incaseoflandleased,leasedeeditshouldberegisteredwiththeAuthoritylikeofficeofSubRegistrar,etc. A latestcopyofrecordofrightshowingthis factshouldbeenclosedwiththeapplication.Mortgagedlandshallnotbetreatedatparwithleaseevenifthecreditinstitutionmighthaveconsideredso.Similarly,PowerofAttorney given by owner of land in favour of applicant shall not qualify him forbenefitunderthescheme.

4. ValidityPeriodofLOI

Validity(i) ForaperiodofoneyearfromthedateofissueofLOIforsanctionoftermloan.

(ii) The project should be completed within two years from the date ofsanctionoftermloan.Projecttimeoverrunshouldbesuitablyexamined.

(iii) RevalidationofLOIbytheconcernedAreaOfficerforafurtherperiodofoneyearonmerit.

CHAPTERIIProtocolforImplementationof TechnicalStandards

SubjecttoprovisionsofVariationClause,onlythosecoldstorageprojectsthatareinconformitywiththeprescribed technical standardswill be eligible forCentralGovernmentSubsidy. In order to verify this,followingmechanismneedstobeputinplace

A. System of Letter of Intent (LoI) LoI to be obtained by the promoter prior to undertakingconstructionofcold storageneeds tobe introduced.Anapplication forLetterof Intentmustbeaccompaniedbyfollowingdocuments,inadditiontoanyotherdocumentsprescribed

i. Acopyofthedetailedprojectreportii. InformationinprescribedBasicDataSheetaccompaniedbyrequisitedocuments

Technicalscrutinyoftheabovedocumentswillbeundertakentoensurethattheproject is inconformitywiththeprescribedtechnicalstandardsoranyvariationisfullyjustifiedkeepinginviewtheproducttobestored,prescribedstorageconditions,energyefficiencyandenvironmentalandsafetyconcerns.

B.Civil Structure Following documents must be submitted by the promoter in respect of civilconstruction

i. Certificateofapprovalofthebuildingplanbylocalplanningauthority,ii. Certificate issued by registered civil design engineer about conformity with relevant BIS

Standardsandprescribedstandardsandsafetyconcerns,iii. Certificatebysiteengineer / architect to theeffectofconstructionof thecivil structureasper

approvedbuilding plan and design and completion of the civil components accordingly in allrespectsasperprescribedplanandstandards,

C. ThermalInsulation&RefrigerationSystem,ControlandSafetyDevises

i. Thecomponentsofinsulationandrefrigerationsystemshouldbecertifiedinformofatechnicaldata sheet by the manufacturer confirming the rating and performance as per prescribedstandards.

ii. Further,site inspectionatappropriatestagesofconstruction/erectionandcommissioningmaybeundertakenbyaninspectionteamconstitutedbycompetentauthorityforthispurpose.

iii. Finally, themanufacturer/refrigerationcontractingagencywill issueacertificateofsatisfactorycommissioning of the cooling system in conformance to the performance indicators as perprescribedstandards.

iv. The manufacturer/refrigeration contracting agency will also provide as built drawings,includingcoldstorelayout,P&Iandelectricaldrawingandanoperation&maintenancemanualalongwithalistofessentialspareparts.

v. Asetofabovedocumentsalongwiththerefrigerationsystemperformancecertificateissuedbytherefrigerationcompany/contractingagency,dulysignedbyanauthorizedgraduateengineer

ofthecompany/agency,mustbesubmittedtocompetentauthorityforrecordandacopyofthesamemustbeissuedtothepromoter/owneroftheproject.

Guidelines for Inspection / Joint Inspection Projects onCompletion

Objective Inspection / Joint Inspection of theproject is carried outwith theprimeobjectiveofensuringthattheprojecthasbeencompletedasperoriginalprojectreportat approved project site and all essential components have been completed withsatisfactory quality of execution and acceptable standard of workmanship. It is alsoaimed at verifying the vouchers and other records maintained by the beneficiary inorder tomake assessment about the componentwise actual expenditure incurred bythebeneficiaryandmakingassessmentaboutcostoftheproject.Itnotonlygivespenpicture of the project but also provides photographs / video films as per standinginstructionsofNHBbywayofproofofexistenceofassetscreated.

Intimation of completion of project and carrying out Inspection / JointInspectionOncompletionofcredit linkedproject forwhichLOIhasbeen issuedbytheBoard,promoterwill inform theconcerned financing institution (FI) / Bankaboutthe completion of the project. As soon as possible after receipt of theinformation/documentsregardingcompletionof theprojectFI /Bankwill fix thedatefor Joint Inspection of the project in consultation with concerned State Incharge ofNHB.Suchcaseswillbejointly inspectedbyrepresentativeofNHBandrepresentativeof financing institution (FI) /Bank inpresenceofbeneficiary.RepresentativeofStateDirectorateofHorticulturemayalsobeassociatedasperstandingordersofNHB.

SalientfeaturesofInspectionReport BankInspectionReport/JointInspectionReportwill be submitted in the prescribed formby the concerned FI / Bank toNHB.Inspectionreportisinwritinggivingnecessarydescriptionofvariouscomponentsoftheprojectandprojectland,sourceoffunding,whetherallthecomponentsoftheprojectarenewetcitissupportedbyphotographorvideofilmasperstandinginstructionsofNHB.

MakingAssessmento