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Immediate/Speed Post

F.No. 11011/06/AMIGS - Evaluation/ 2012- AMIGS

Government of India

Ministry of Agriculture

Department of Agriculture & Cooperation

‘F’ Wing, Shastri Bhavan, New Delhi

Dated: 10.10.2012

To

Sub: Evaluation and Impact Assessment for the Central Sector Scheme for

Development/ Strengthening of Agricultural Marketing Infrastructure, Grading and

Standardization - reg.

Sir,

This Department proposes to conduct an independent evaluation study of Central Sector

Scheme for Development / Strengthening of Agricultural Marketing Infrastructure, Grading and

Standardization (AMIGS) which is under implementation since 2004-05.

1. (a) Date of Issue of Tender documents : 10.10.2012 (Wednesday)

(b) Closing Date and Time of receipt of bids : By 1 p.m. on 09.11.2012 (Friday)

(c) Date and Time of opening of Technical bid at : 3 p.m. on 09.11.2012 (Friday)

DMI,HO, Faridabad

(d) Date and Time of opening of Financial bid : Will be intimated at later stage.

(In case any of the date mentioned in 1(a), (b), (c) and (d) for any reason is declared a public

holiday, the next working day will be the due date.)

2. Tender documents including the detailed Terms of Reference for the conduct of evaluation study including details of the status of implementation of the scheme as on 31.03.2012 and format for making technical and financial bids and format for Agreements to be executed with the successful bidder can be obtained from the office of the Directorate of Marketing & Inspection, New CGO Complex, NH-IV, Faridabad – 121001 on any working day. Tender documents and other details can also be downloaded from websiteshttp://www.agmarknet.nic.in

3. You are requested to kindly go through the tender documents for eligibility etc. and consider

submitting your technical and financial proposals in separate sealed covers along with required

Earnest Money Deposit (EMD) of Rs.50.000/- in the prescribed formats on or before 1.00 p.m. of

09.11.2012(Friday). The proposal in sealed cover should be addressed to Shri B.K. Joshi, Asstt. AMA

in the office of the Agricultural Marketing Adviser to the Government of India, Directorate of Marketing

and Inspection, Head Office, New CGO Complex, NH-IV, Faridabad (Haryana – 121001) in the

closed/sealed box specially kept separately for the purpose.

The EMD may be deposited in the form of Account Payee Demand Draft, Fixed Deposit

Receipt, Banker’s Cheque or Bank Guarantee from any of the Commercial Bank. EMD should be in

the name of PAO (PPM), Faridabad.

4. The competent authority reserves the right to alter or to cancel the tender in part of full without

assigning any reasons thereof.

5. For any clarification or further information, the undersigned may be contacted in Marketing

Division, Cabin No. 7, F-Wing, 2nd

Floor, Shastri Bhawan, New Delhi on any working day.

Yours faithfully

Encls. : As above.

(C.K. Reejonia) Under Secretary to the Govt. of India

Ph. 23386235

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Evaluation and Impact Assessment of the Central Sector Scheme for Development/ Strengthening of Agricultural Marketing

Infrastructure, Grading & Standardization

Ministry of Agriculture

Department of Agriculture & Cooperation

Directorate of Marketing & Inspection

NH-IV, Faridabad - 121002.

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Evaluation and Impact Assessment of the Scheme for Development/ Strengthening of Agricultural Marketing Infrastructure.,

Grading & Standardization.

TERMS OF REFERENCE DOCUMENT

1. Background:

Based on the reports submitted by High Power Committee on

Agricultural Marketing and Task Force constituted by the Ministry of

Agriculture, a Scheme for Development/Strengthening of Agricultural

Marketing Infrastructure, Grading & Standardization was launched on

20.10.2004. Under the Scheme, credit linked investment subsidy is provided

for general or commodity specific marketing infrastructure for agricultural and

allied commodities and for strengthening and modernization of existing

agricultural markets, wholesale, rural periodic or in tribal areas. The Scheme

covers all agricultural and allied sectors including dairy, poultry, fishery,

livestock and minor forest produce. The Scheme is reform linked and is being

implemented in those States/ UTs which have amended their Agricultural

Produce Market Committee (APMC) Act to permit- (i) setting up of agricultural

markets in private and cooperative sectors (ii) allow direct marketing and (iii)

contract farming.

Assistance under the Scheme is credit linked and subject to sanction of

the infrastructure projects by the financing banks and the subsidy is released

through National Bank for Agriculture and Rural Development (NABARD). For

cooperative sector projects, subsidy is released through National Cooperative

Development Corporation (NCDC). The stipulation of credit linkage and

sanction of the infrastructure projects by banks is optional for the projects

promoted by the State Agencies (APMCs etc.). Subsidy is released directly by

Directorate of Marketing & Inspection (DMI) for own funded projects of State

Agencies.

The task of creating awareness and publicity of the Scheme has been

entrusted to Ch. Charan Singh National Institute of Agricultural Marketing

(NIAM), Jaipur.

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The Scheme is implemented by the Directorate of Marketing &

Inspection (DMI), an attached office of Department of Agriculture and

Cooperation.

The Operational Guidelines of the Scheme is at Annexure - I.

2. Objectives of the Scheme :

The main objectives of the Scheme are :

(i) To provide additional agricultural marketing infrastructure to cope up

with the large expected marketable surpluses of agricultural and

allied commodities including dairy, poultry, fishery, livestock and

minor forest produce.

(ii) To promote competitive alternative agricultural marketing

infrastructure by inducement of private and cooperative sector

investments that sustain incentives for quality and enhanced

productivity thereby improving farmers’ income.

(iii) To strengthen existing agricultural marketing infrastructure to

enhance efficiency.

(iv) To promote direct marketing so as to increase market efficiency

through reduction in intermediaries and handling channels thus

enhancing farmers’ income.

(v) To provide infrastructure facilities for grading, standardization and

quality certification of agricultural produce so as to ensure price to the

farmers commensurate with the quality of the produce.

(vi) To promote grading, standardization and quality certification system for giving a major thrust for promotion of pledge financing and marketing ,credit, introduction of negotiable warehousing receipt system and promotion of forward and future markets so as to stabilize market system and increase farmers’ income.

(vii) To promote direct integration of processing units with producers.

(viii) To create general awareness and provide education and training to

farmers, entrepreneurs and market functionaries on agricultural

marketing including grading, standardization and quality

certification.

3. Present Status of the Scheme :

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Since the Scheme is reform linked, following 28 States/ U.Ts have

been permitted to take benefits of the Scheme:-

Andhra Pradesh, Madhya Pradesh, Tamil Nadu, Kerala, Manipur,

Andaman and Nicobar Islands, Himachal Pradesh, Punjab, Sikkim,

Rajasthan, Chhattisgarh, Nagaland, Dadra and Nagar Haveli, Daman and

Diu, Lakshadweep, Arunachal Pradesh, Orissa, Maharashtra, Bihar, U.T. of

Chandigarh, Assam, Tripura, Gujarat, Karnataka, Goa , Jharkhand, Mizoram

and Uttarakhand.

However, till date, only 15 States namely Andhra Pradesh, Madhya

Pradesh, Punjab, Kerala, Tamil Nadu, Rajasthan, Chhattisgarh, Himachal

Pradesh, Maharashtra, Orissa, Gujarat, Sikkim, Karnataka, Assam and

Nagaland have taken the benefits of the Scheme.

It may be mentioned that the projects of Combined Harvesters were

being considered under AMIGS Scheme. While reviewing the progress of the

Scheme under the chairmanship of the Secretary, Department of Agriculture

& Cooperation on 14.11.2006, a decision was taken to stop providing subsidy

for Combined Harvester projects till further order due to its predominance over

other infrastructure projects in the notified States. Subsequently, on

30.01.2008, the ban on Combined Harvester projects was lifted for those

States where there was potential of Combined Harvesters. The ban remained

in the States of Tamil Nadu, Punjab, Andhra Pradesh and Madhya Pradesh

and restricted to 20% of total projects sanctioned in States of Rajasthan,

Chhattisgarh, Orissa, Karnataka, Kerala, Maharashtra and Gujarat at any

given point of time under the Scheme. The State-wise details of Combined

Harvesters projects sanctioned since inception of the Scheme are in

Annexure – II.

The monitoring of the projects is done through Regional Offices/ Sub

Offices of the DMI.

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The progress of the Scheme during the XI th Five Year Plan is as

under:

3829 projects have been sanctioned by NABARD and subsidy of

Rs.412.87 crores has been released. Similarly, NCDC has sanctioned 1821

projects and subsidy of Rs.39.78 crores has been released. Besides this, 340

projects of different State Agencies have been sanctioned by DMI and

subsidy of Rs.97.51 crores has been released. As such, 5990 projects have

been sanctioned and Rs.550.16 crores of subsidy has been released during

the XI th Plan.

The year-wise physical and financial progress of the Scheme is as

under;

PLAN YEAR Number of Projects

Sanctioned

Subsidy Released

(Rs. in Crores)

XIth PLAN

2007-08 1857 111.24

2008-09 833 76.80

2009-10 703 74.37

2010-11 1173 110.47

2011-12 1424 177.28

TOTAL 5990 550.16

The State-wise progress of the Scheme during XI th Plan indicating

number of projects sanctioned, TFO, Eligible Subsidy and subsidy released

through various agencies is given in Annexure-III.

4. Objective and Scope of Work:

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The main objective of the assignment is to undertake comprehensive

study of various types of projects sanctioned under the Scheme in

selected States. The study shall focus on

1. Reduction in Post Harvest Losses

2. Value Addition.

3. Increase in Farmers Income.

The study shall be carried out in ten States for projects sanctioned by

NABARD, in five States for projects sanctioned by NCDC and in five

States for own funded projects sanctioned by DMI. The details are in

Annexure - IV. The projects covered under the Scheme are categorized in

seven types. The details of seven categories of projects are given in

Annexure- V. The projects to be evaluated for each State will cover all the

seven categories. In addition, the study shall also be carried out in the

States where no project has been sanctioned inspite of the fact that these

States have been permitted to take benefits of the Scheme to find out the

reasons as to why no project has been sanctioned and suggesting ways

for the infrastructure projects to come up in these states. The study shall

be carried out in two such States viz. Bihar and Manipur

4.1 The Evaluation Agency will undertake physical survey of the projects selected

for study and the overall assessment shall cover the following;

1. Assess overall performance of the Scheme in the framework of its various

objectives.

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2. Study the extent to which the Scheme has rendered benefits in terms of

reduction of post-harvest losses.

3. Study the extent to which the Scheme has rendered benefits in terms of

realization of remunerative prices to the farmers.

4. Study the extent to which farmers have been benefited from the Scheme in

terms of increase of income and extent of return on investment.

5. Study the impact of the Scheme on Value Addition of commodities and

percentage / distribution of agriculture products in utilization of infrastructure.

6. Study the extent to which creation of these projects have helped by way of

investment in agricultural marketing infrastructure in Private, Cooperative and

Public Sector.

7. Study the extent of participation of various types of entrepreneurs such as

Schedule Caste, Schedule Tribe and Women in the Scheme and the

suggestions for improving their participation.

8. Identify the type of market infrastructure required to be created in addition to the

infrastructure already created keeping the objectives of the Scheme in view.

9. Assess the effectiveness of training and awareness programmes conducted for

the bankers, entrepreneurs and farmers through the NIAM, Jaipur and other

institutions.

10. Study the extent to which the Scheme has rendered benefits in terms of access

to credit.

11. Study the process involved in sanction of loans by the financial institutions and

release of subsidy by NABARD and identify shortcomings, if any, and ways to

overcome them.

12. Study the procedure followed and time taken by the financing banks and

NABARD/ NCDC in appraisal, approval and disbursement of the loan and

sanction of subsidy.

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13. Examine the procedure and time taken by NABARD / Financing Bank and

NCDC for release of subsidy and the reasons for delay, if any.

14. Examine the reasons for delay in completion of the projects beyond the

prescribed time limit.

15. Identify and highlight success stories under the Scheme.

16. Review and identify the constraints, gaps, both in the design and implementation

of the Scheme impeding project implementation and attainment of the objectives

and provide suggestions for overcoming these constraints / gaps.

17. Reasons for low performance of the scheme in the States in North Eastern

Region and other States and suggestions to improve the performance of the

Scheme in these areas.

18. Assess the extent of coverage of critical components of the Agricultural

Marketing Infrastructure viz. Auction Platforms, Electronic Weighing Bridge,

Electronic Display Boards, Grading, Quality Certification, Labeling, Packaging,

Value Addition Facilities etc. in the sanctioned projects under the Scheme.

19. The extent of maintenance of Subsidy Reserve Fund Account (borrower-wise)

by the financing bank and to suggest the remedial measures in case of non

compliance.

20. Percentage utilization of marketing infrastructure created under the Scheme

during different period in a year (peak post harvesting period and non peak

period) besides quality and extent of maintenance of marketing infrastructure.

21. Any other issue considered relevant for the evaluation of the Scheme.

5. Expected output:

The Evaluation Agency will be required to submit the Project Inception

Report (PIR), Interim Status Report, Draft Evaluation Report and Final

Evaluation Report.

The Project Inception Report shall indicate the methodology of

the study, proposed field arrangements and the detailed logistics to

conduct the study/complete the assignment. The Interim Status Report

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shall cover at least 75% of the projects prescribed for the study and on which

DMI / DAC may give suggestions to incorporate certain aspects which are not

covered / properly covered in the report. Draft Evaluation Report will cover all

the projects prescribed for the study and also will address the suggestions

made by the DMI / DAC on the Interim Status Report. Final Evaluation Report

will address the suggestions made by the DMI / DAC on the Draft Evaluation

Report.

The output of the assignment will be an Evaluation Report supported

with illustrated diagrams covering all aspects as detailed in item 4 above. The

Evaluation Report must bring out clearly the outcome of the projects sanctioned

with regard to the three main objectives viz. Reduction in Post Harvest Losses,

Value Addition and Increase in Farmers Income. It may be supported by

relevant data pertaining to these aspects in quantitative values. The Report

should contain Executive Summary. Evaluation Report should be supported by

information in prescribed format alongwith photographs of each Project

surveyed for the evaluation of the Scheme (Annexure-VI).

6. Eligibility of the Evaluation Agency:

The individuals, entrepreneurs, partnership firms, companies, joint ventures

having relevant and requisite experience of 3 years and expertise in the field of

consultancy and evaluation of the plan schemes, project formulation and analysis

relating to agricultural marketing, food processing etc. and having a minimum annual

turn over of Rs 1.00 crore in last two financial years are eligible to apply.

Eligible Agency may submit Technical Proposal in Form 1 to Form 10 and

Financial Proposal in Form Fin - 1 to Fin – 5 attaching supporting documents such

as Articles of Memorandum, total turnover for the last three years indicating profit

before and after tax dully certified by the Chartered Accountant, Annual Report ,

Audit Report, CV of Key Professionals etc.

7. Review and Monitoring Committee:

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The following Committee will discharge the duties and functions of Consultancy

Evaluation Committee (CEC) and Consultancy Monitoring Committee (CMC)

and will be called as Evaluation-cum-Monitoring Committee (EMC)

i. Joint secretary (Marketing) / Agricultural - Chairman

Marketing Adviser to the Govt. of India,

Department of Agriculture and Cooperation (DAC),

Ministry of Agriculture

ii. Director/ Deputy Secy. (Marketing), DAC - Member

iii. Director / Deputy Secy. (Finance), DAC - Member

iv. Director, NIAM, Jaipur - Member

v. Dy. Agril. Marketing Adviser (AMIGS), - Member

DMI, Faridabad

vi. Under Secretary (M-II), DAC - Member Secretary

8. Evaluation of Proposals :

8.1 Technical and Financial Proposals shall be submitted in separate sealed

covers.

8.2 The evaluation of the proposals shall be carried out in two stages i.e.

Technical and Financial.

8.3 Technical evaluation of the proposals shall be undertaken by the EMC based

on the experience relevant to the assignment, quality of methodology,

qualification of key staff proposed for assignment, capability of transfer of

knowledge and understanding of TOR etc.

8.4 The proposal can be rejected by the DAC, Ministry of Agriculture based on

the recommendations of the EMC at the time of technical evaluation of the

assignment.

8.5 After completing the technical evaluation, those Agencies whose proposals do

not meet the minimum standards will be informed and their financial

proposals shall be returned un-opened.

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8.6 The financial proposals of those Agencies who qualify the technical evaluation

shall be opened in the presence of the representatives of the Agencies who

intend to attend. The proposal with the lowest bid will be considered.

8.7 The final award shall be subject to the discussions on the Terms of Reference

methodology, staffing, inputs of the EMC and various other terms &

conditions of the contract as stated in the Common Agreement Format of the

Department given in the Annexure VII. The discussions, however, shall not

substantially alter the original TOR and the final TOR shall form part of the

contract.

8.8 The selected Agency will not be allowed to substitute core staff. If it is

established that the core staff has been substituted, the Agency will be

disqualified.

8.9 If the process, for whatever reasons, fails to result in an acceptance contract

with the selected Agency, the DAC shall terminate discussions with that

Agency and shall retender inviting bids from various agencies.

8.10 The EMC may cancel the bid and reject all proposals without assigning any

reason at any stage of the tender process.

8.11 The Check list of documents / information to be submitted is in ANNEXURE-

CL- 1.

9. Facilities to be provided :

The Directorate of Marketing & Inspection an attached Office to the

DAC, Ministry of Agriculture would support the Evaluation Agency in obtaining

requisite information from the offices of Govt. of India as well as from the

implementing agencies of the scheme.

10. Payment Schedule and Reporting :

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The payment shall be made considering the wok performed by the Agency

within the prescribed Time Limit and subject to the submission of following

reports:

Quantum of payment

Stage/ Deliverables Time limit for the

Evaluation Agency

1st Installment—

10% of contract value

On acceptance of letter of award and submission of Project Inception Report (PIR) by the Evaluation Agency along with Bank Guarantee from any of the Scheduled Commercial Bank.

Within 15 days of the date of selection of the Agency.

2nd Installment—

50% of Contract value

On submission of Interim Status Report and Draft Evaluation Report.

For Interim Status Report: Within 60 days from submission of Project Inception Report.

For Draft Evaluation Report: Within 30 days of issue of comments / suggestions on Interim Status Report by DMI / DAC.

3rd Installment—

40% of Contract value

On acceptance of Final Evaluation Report and submission of the Report in various forms by the Evaluation Agency as mentioned in Item 13.

Within 15 days of acceptance of Final Report by the DAC

11. Duration:

11.1 The study /assignment will have to be completed in 120 days from

acceptance of letter of award by the Evaluation Agency. The time taken by the

DAC /EMC to give comments at various stages shall not be counted towards

the set duration.

11.2 Time over run may be liable to penalty @ 1% (one percent) of the total cost of

the study per day for maximum of fifteen calendar days beyond which it will

tantamount to breach of the contract and in that case the consultant will have

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to refund the entire money paid to them along with an interest of 18% per

annum.

12. Presentations:

The Agency may be required to make the following presentations:

a) On their proposal before Technical Evaluation is completed.

b) Before signing of contract and commencement of work.

c) On the Interim Status Report.

d) On the Draft Evaluation Report; and

e) On the Final Evaluation Report.

13. Submission of Report : The Final Report shall be submitted in the form of:

Master copy in loose sheets with photographs, capable of yielding good

photocopies;

Information in prescribed format alongwith photographs of each Project

surveyed.

10 bound hard copies, DTP produced of high quality;

Soft copy sent by e-mail; and

Loaded on 10 CD of good quality.

14. Additional Work :

The Agency may be invited by the DAC to undertake work, which is

either directly related to the above Scope of Work or is required by way of

additional work for improving implementation of the Scheme, on mutually agreed

terms and conditions. The DAC reserves the right to award additional work to

another Agency, as appropriate.

15. Legal Agreement:

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The legal agreement to be signed between DAC and the selected Agency is

given in the Annexure- VII. This is a standard text and the blank spaced in the

Annexure shall be filled-in specific to this assignment before the signing of the

agreement.

16. Earnest Money Deposit :

The tender should accompany Earnest Money Deposit (EMD) of Rs.50,000/-

separately. The EMD may be deposited in the form of Account Payee Demand

Draft, Fixed Deposit Receipt, Banker’s Cheque or Bank Guarantee from any of the

Scheduled Commercial Bank. EMD should be in the name of PAO (PPM),

Faridabad.

17. Date, Time and Place of Submission of BIDs

The bids in sealed cover containing three separate sealed envelopes enclosing

separately the bid security, technical proposal and financial proposal in prescribed

format may be submitted to the Office of Agricultural Marketing Adviser to

Government of India, Directorate of Marketing & Inspection, New CGO Building, A-

Wing, NH-IV, Faridabad (HARYANA-121001) on or before 1700 hrs of

___________(____day), 2012. The bid security after the due date and time will not

be accepted.

18. Opening of BID

All the bids received till cut-off date and time will be opened on

_____________2012 (____day) at 1500 hours in the o/o Agricultural Marketing

Adviser, Directorate of Marketing and Inspection, CGO Complex, NH-IV, Faridabad

(Haryana) in the presence of those bidders or their authorized representatives who

would wish to be present on the occasion.

19. Tender documents and other details can be obtained from the Office of the

Directorate of Marketing & Inspection, New CGO Complex, NH-IV, Faridabad

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– 121001 on any working day. Tender documents and other details can also

be downloaded from websites --

http://www.agmarknet.nic.in

20. The Competent Authority reserves the right to alter or to cancel the tender in

part or full without assigning any reasons thereof.

21. Dispute settlement

In case of any dispute, the contract shall be interpreted in accordance

with the laws of Union of India. All disputes arising out of this contract shall

be referred to Joint Secretary-cum Agricultural Marketing Adviser who is the

overall controlling authority of this Directorate. The venue of arbitration shall

be New Delhi.

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ANNEXURE-I

Government of India

OPERATIONAL GUIDELINES

(Modified as on 26th June, 2008)

SCHEME FOR

DEVELOPMENT/ STRENGTHENING OF

AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION

Ministry of Agriculture

(Department of Agriculture & Cooperation)

New Delhi

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Highlights

*Reform Linked Investment Scheme: To encourage rapid development of

infrastructure projects in agriculture and allied sectors including dairy, meat, fisheries

and minor forest produce.

* Investment subsidy: 25% of the capital cost upto Rs.50 lakh in each project

providing ‘Direct’ service delivery to producers/ farming community in post harvest

management/ marketing of their produce. However, the entrepreneurs may also have

an opportunity to use the infrastructure for their own purpose during the lean

period. In case of NE States, hilly and tribal areas, and in the States of Uttarakhand,

Himachal Pradesh, Jammu & Kashmir and to SC/ST entrepreneurs and their

cooperatives in vestment subsidy shall be 33.33% of the capital cost up to Rs.60 lakh.

* No upper ceiling on subsidy in respect of infrastructure projects of State Agencies.

Conditions:

* Applicable only in such States/Union Territories, which undertake reforms in APMC Act to allow ‘Direct Marketing’ and ‘Contract Farming’ and to permit agricultural produce markets in private and cooperative sectors. *Promoter’s contribution in project cost to be decided by financing Bank with minimum bank

loan of 50% in general cases and 46.67% in hilly areas, etc. State Agencies may take up

infrastructure projects from their own funds dovetailing the subsidy under the scheme, with

bank loan or without borrowing from the financial institution.

Illustrative List of Infrastructure Projects

*Market user common facilities like market yards, platforms for loading, assembling and

auctioning of the produce, weighing and mechanical handling equipments, etc.

*Functional Infrastructure for assembling, grading, standardization and quality certification,

labeling, packaging, value addition facilities (without changing the product form)

*Infrastructure for Direct Marketing from producers to consumers/processing units/bulk

buyers etc.

*Infrastructure for E-trading, market extension and market oriented production planning.

*Mobile infrastructure for post harvest operations viz. grading, packaging, quality testing

etc., (excluding transport equipment)

*Reefer vans, or any other refrigerated vans used for transporting agricultural

produce, which are essential for maintaining cold supply chains.

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SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL

MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION

1. BACKGROUND

This scheme has been formulated to develop marketing infrastructure in the country

to cater to the post-harvest requirement of production and marketable surplus of various

farm products. An Expert Committee set up by the Ministry of Agriculture has estimated that

an investment requirement of Rs.11,172 crore in next 10 years would be necessary for

infrastructure development in agricultural marketing. A major portion of this investment is

expected to come from private sector, for which an appropriate regulatory and policy

environment is necessary. The Department has had several rounds of discussions with the

States on restrictive provisions of State Act dealing with agricultural marketing (APMC Act)

and the need to modify and create lawful space for the private sector in the market

development and contract farming. This scheme is reform linked and assistance for

development of infrastructure projects will be provided in those States/Union Territories

which permit setting up of agricultural markets in private and cooperative sectors and allow

direct marketing and contract farming.

2. OBJECTIVES

The main objectives of the Scheme are:

(i) To provide additional agricultural marketing infrastructure to cope up with the large

expected marketable surpluses of agricultural and allied commodities including dairy,

poultry, fishery, livestock and minor forest produce.

(ii) To promote competitive alternative agricultural marketing infrastructure by

inducement of private and cooperative sector investments that sustain incentives for

quality and enhanced productivity thereby improving farmers’ income.

(iii) To strengthen existing agricultural marketing infrastructure to enhance efficiency.

(iv) To promote direct marketing so as to increase market efficiency through reduction

in intermediaries and handling channels thus enhancing farmers’ income.

(v) To provide infrastructure facilities for grading, standardization and quality

certification of agricultural produce so as to ensure price to the farmers

commensurate with the quality of the produce.

(vii) To promote grading, standardization and quality certification system for giving a major thrust for promotion of pledge financing and marketing ,credit, introduction

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of negotiable warehousing receipt system and promotion of forward and future markets so as to stabilize market system and increase farmers’ income.

(vii) To promote direct integration of processing units with producers.

(viii) To create general awareness and provide education and training to farmers,

entrepreneurs and market functionaries on agricultural marketing including

grading, standardization and quality certification.

3. SALIENT FEATURES OF THE SCHEME

SCHEME LINKED TO REFORMS

(i) The scheme will be implemented in those States which amend the APMC Act,

wherever required, to allow direct marketing and contract farming and to permit setting

up of markets in private and cooperative sectors.

(ii) Credit linked back-ended subsidy shall be provided on the capital cost of

general or commodity specific infrastructure for marketing of agricultural commodities

and for strengthening and modernization of existing agricultural markets, wholesale, rural

periodic or in tribal areas. State Agricultural Produce Marketing Boards/ Committees or

other State agencies will be free to decide as to the quantum of loan or invest their own

funds in lieu of loan as per their requirement.

MARKETING INFRASTRUCTURE

(iii) ‘Marketing Infrastructure’ for purpose of the scheme may comprise of any of the

following:

(a) Functional infrastructure for collection/ assembling, drying, cleaning, grading,

standardization, SPS (Sanitary & Phytosanitary) measures and quality certification,

labeling, packaging, ripening chambers, retailing and wholesaling, value addition

facilities (without changing the product form) etc. Transportation facility will not be

covered under the scheme. However, reefer vans, or any other refrigerated vans

used for transporting agricultural produce, which are essential for maintaining

cold supply chains, shall be eligible for assistance under the Scheme.

(b) Market user common facilities in the project area like shops/offices, platforms for

loading/ unloading/ assembling and auctioning of the produce, parking sheds,

internal roads, garbage disposal arrangements, boundary walls, drinking water,

sanitation arrangements, weighing & mechanical handling equipments, etc.;

(c) Infrastructure for Direct marketing of agricultural commodities from producers to

consumers/processing units/ bulk buyers, etc.

(d) Infrastructure for supply of production inputs and need-based services to the farmers; (e) Infrastructure (equipment, hardware, gadgets, etc) for E-trading, market intelligence,

extension and market oriented production planning; and

(f) Mobile infrastructure for post-harvest operations (excluding transport equipment) will

be eligible for assistance under the scheme. However, exclusion of transport equipment

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shall not affect the development of cold chain infrastructure and reefer vans, or any

other refrigerated vans used for transporting agricultural produce, which are essential

for maintaining cold supply chains, shall be eligible for assistance under the Scheme.

ELIGIBLE PERSONS

(iv) The assistance will be available to individuals, Group of farmers/ growers/

consumers, Partnership/ Proprietary firms, Non-Government Organizations (NGOs), Self

Help Groups (SHGs), Companies, Corporations, Autonomous Bodies of the Government,

Cooperatives, Cooperative Marketing Federations, Local Bodies, Agricultural Produce

Market Committees & Marketing Boards in the entire country.

(v) Bank assisted projects of State agencies, including projects refinanced/co-

financed by National Bank for Agriculture and Rural Development (NABARD) for

strengthening / modernization of existing marketing infrastructure would also be eligible for

assistance under the scheme.

LAND AND LOCATION

(vi) Under the scheme, the entrepreneur will be free to locate the marketing infrastructure

project at any place of his choice determined on the basis of economic viability and

commercial considerations. The entrepreneurs in addition to providing compulsory

direct service delivery to producers/farming community in post-harvest

management/marketing of their produce may also have an opportunity to use the

infrastructure for their own purpose during the lean period.

(vii) Cost of land in infrastructure projects will be restricted to a maximum of ten per cent

of the project cost in rural areas and to twenty per cent in municipal areas and it would form

part of the owner’s contribution.

(viii) The entrepreneur will not alienate the land during the period of the loan for any

purpose other than the purpose for which the loan is sanctioned.

CREDIT LINKED ASSISTANCE

(ix) Assistance under the scheme would be credit linked and subject to sanction of the

infrastructure project by Commercial/ Cooperative/ Regional Rural Banks based on

economic viability and commercial considerations. However, the stipulation of credit linkage

and sanction of the infrastructure project by the Commercial/ Cooperative/ Regional Rural

Banks will be optional for the infrastructure project taken up by the State Marketing Boards/

APMCs and other State agencies.

22

(x) Assistance under the scheme shall be available on capital cost of the project only.

Banks/National Cooperative Development Corporation (NCDC) will, however, be free to

finance other activities/working capital requirement to meet various requirements of the

farmers/entrepreneurs.

SUBSIDY

(xi) Rate of subsidy shall be 25% of the capital cost of the project. In case of North

Eastern States, in the States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, hilly

and tribal areas, and to entrepreneurs belonging to Scheduled Caste (SC)/Scheduled Tribe

(ST) and their cooperatives, the rate of subsidy shall be 33.33% of the capital cost of the

project.

(xii) Maximum amount of subsidy shall be restricted to Rs.50 lakh for each project. In the

case of North Eastern States, hilly and tribal areas, in the States of Uttarakhand, Himachal

Pradesh, Jammu & Kashmir and to entrepreneurs belonging to SC/ST and their

cooperatives, maximum amount of subsidy shall be Rs.60 lakh for each project.

(xiii) In respect of infrastructure projects of State Agencies, there will be no upper ceiling on

subsidy to be provided under the scheme.

(xiv) The amount of Central Assistance/subsidy availed of for the project or any of its components from any other Central Scheme shall be deducted from the amount of subsidy admissible under this scheme.

RELEASE OF SUBSIDY

(xv) Subsidy for the projects under the scheme shall be released through NABARD for

projects financed by the commercial, cooperative and regional rural banks, Agricultural

Development Finance Companies (ADFCs), scheduled Primary Cooperative Banks (PCBs),

North Eastern Development Financial Corporation (NEDFI) and other institutions eligible for

refinance from NABARD and through NCDC for projects financed by NCDC or by

Cooperative Banks recognized by NCDC in accordance with its eligibility guidelines.

In case, where the State Marketing Boards/ APMCs or other State Agencies propose

to invest their own funds to the extent upto 75% of the project cost without availing any loan,

the subsidy will be released to them directly by Directorate of Marketing and Inspection

(DMI) in two installments depending on the progress of the work.

ADJUSTMENT OF SUBSIDY IN BORROWER’S ACCOUNT

(xvi) The subsidy released to the bank/NCDC for an individual project will be kept in a

separate borrower-wise account. The adjustment of subsidy will be back ended.

Accordingly, the full project cost including the subsidy amount, but excluding the margin

money contribution from the beneficiary, would be disbursed as a loan by the banks. The

repayment schedule will be drawn on the loan amount in such a way that the total subsidy

23

amount is adjusted after the full bank loan component with interest is liquidated. The

repayment schedule prescribed at the time of sanction of the project will not be allowed to be

altered by the financing bank without the prior approval of the Head Office of the DMI on the

recommendation of NABARD/NCDC.

NO INTEREST CHARGEABLE ON SUBSIDY PORTION

(xvii) The subsidy admissible to the promoter under the scheme will be kept in the Subsidy

Reserve Fund Account (Borrower-wise) in the books of the financing banks. No interest

would be charged on this by the bank. In view of this, for purposes of charging interest on

the loan component, the subsidy amount should be excluded. The balance lying to the

credit of the subsidy reserve fund account will not form part of demand and time liabilities for

the purpose of SLR/CRR.

IMPLEMENTATION PERIOD

(xviii) The scheme shall be implemented during XI Plan period with a Ce3ntral Assistance of

Rs.681.40 crore for marketing infrastructure projects. In addition, there will be a central

allocation of Rs.15 crore for strengthening Agmark laboratory network and for general

awareness and training programmes and studies, etc.

IMPLEMENTING AGENCY

(xix) The scheme shall be implemented by the Directorate of Marketing & Inspection (DMI),

an Attached Office of Department of Agriculture and Cooperation. A list of Regional / Sub-

Offices of DMI is at Annexure VIII.

4. ASSISTANCE PATTERN

(i) FOR PROJECTS FINANCED THROUGH BANKS/NABARD

Pattern of funding

Source of finance Other than NE States, States

of Uttarakhand, Himachal

Pradesh, Jammu & Kashmir,

hilly and tribal areas*/SC &

ST Entrepreneurs and their

cooperatives.

NE States, States of

Uttarakhand, Himachal

Pradesh, Jammu & Kashmir,

hilly and tribal areas*/ SC & ST

entrepreneurs and their

cooperatives

Subsidy from Central

Government

25% 33.33%

Institutional loan from

commercial/cooperative banks

etc.,

Minimum 50% Minimum 46.67%

Owner’s contribution** Rest of the project cost Rest of the project cost

* Hilly area is a place at an altitude of more than 1,000 meters above mean sea level.

24

* Tribal areas are areas notified/declared as tribal area by the Central/concerned State Government

**Cost of land not exceeding 10% in rural areas and 20% in municipal areas of the project cost can form

part of the owner’s contribution.

Mode of Release

(a) 50% of the subsidy amount will be released to NABARD by Department of

Agriculture and Cooperation in advance. Accordingly, NABARD would release subsidy to

the participating banks in advance for keeping the same in a Subsidy Reserve Fund Account

of the concerned borrowers, to be adjusted finally against loan amount of the bank on

completion of the project. This amount of 50% subsidy would be released by NABARD to

the participating bank on submission of a project profile-cum-claim form.

(b) The remaining 50% of the subsidy amount would be disbursed to the participating bank

(s) by NABARD after a Joint Inspecting Committee comprising of officers from NABARD,

participating bank and Directorate of Marketing & Inspection (DMI) in the concerned State,

conducts an inspection.

No Joint Inspection shall be undertaken by the staff of NABARD and DMI, where the Total

Financial Outlay (TFO) of the project sanctioned by the Bank is less than Rs.10.00 lakh. For

such projects, remaining 50% of the subsidy amount would be disbursed to the participating

bank(s) by NABARD on receipt of completion certificate from financing bank.

For projects having TFO of less than Rs.10.00 lakh and involving one time investment only,

the total subsidy would be disbursed to the participating bank(s) by NABARD in one

installment on completion and submission of completion report by the financing bank.

For these projects, a sample of ten per cent of random inspection shall be done by the

officials of Directorate of Marketing and Inspection (DMI) located in that State. Similarly,

AMA will also authorize the officials of DMI posted in the Head Office at Faridabad to

undertake inspection of ten per cent of the sanctioned projects selected on random basis in

a State.

(ii) FOR PROJECTS FINANCED THROUGH NCDC

Pattern of funding

For cooperatives in all States other than in north-eastern states, States of Uttarakhand,

Himachal Pradesh, Jammu & Kashmir, hilly and tribal areas & SC/ST cooperatives.

FROM NCDC TO STATE GOVT. FROM STATE GOVT TO SOCIETY

Term loan 65% Term Loan* 50%

Subsidy 25% Share Capital* 15%

25

Subsidy 25%

Society Share 10%

For cooperatives in north-eastern states, States of Uttarakhand, Himachal Pradesh, Jammu

& Kashmir, hilly and tribal areas & SC/ST cooperatives.

FROM NCDC TO STATE GOVT. FROM STATE GOVT TO SOCIETY

Term loan 56.67% Term Loan* 50.00%

Subsidy 33.33% Share Capital* 06.67%

Subsidy 33.33%

Society Share 10.00%

*Minimum term loan 50% (Share Capital of State Government will proportionately vary with

increase in term loan)

Through Cooperative Banks/Directly to Cooperative Societies:-

Source of finance Other than NE States, States

of Uttarakhand, Himachal

Pradesh, Jammu & Kashmir,

hilly and tribal areas* and SC

& ST Cooperatives

NE States, States of

Uttarakhand, Himachal

Pradesh, Jammu & Kashmir,

hilly and tribal areas*/ SC & ST

and cooperatives.

Subsidy from the Government 25% 33.33%

Term loan Minimum 50% Minimum 50%

Promoter’s contribution** Rest of the project cost Rest of the project cost

* Hilly areas is a place at an altitude of more than 1,000 meters above mean sea level.

* Tribal areas are notified/declared as tribal area by the Central/concerned State Government.

**Cost of land not exceeding 10% in rural areas and 20% in municipal areas of the project

cost can form part of the promoter’s contribution.

Mode of Release

In case of all states:-

- Assistance will be provided on guarantee of state government.

- 50% of sanctioned assistance shall be released on approval and on acquisition of land

and release of funds by state government to society. The balance 50% of sanctioned

assistance shall be provided after state govt. has provided complete assistance including its

26

share as share capital and completion of civil works up to plinth level (in case civil works are

part of the project) and receipt of machinery/equipment at site.

In case of union territories

Assistance is provided directly to the society on guarantee of central govt. on pattern as

above.

In case of national level / multi-state societies / other societies

Assistance is provided to society on mortgage of fixed assets.

a) The subsidy (25% or 33.33% as the case may be) shall be subject to the limits laid down

under the scheme. The quantum of term loan may be enhanced accordingly.

b) The minimum share of society shall be 10% of cost. In case societies are able to contribute

more than 10%, the quantum of term loan/state govt. share capital could be reduced accordingly.

c) The subsidy shall be provided as an interest free loan during construction period and shall be

converted into subsidy on completion of project to the satisfaction of NCDC.

4 (iii) Pattern of funding – for projects taken up by the State Marketing Boards/ APMCs and

other State Agencies

Subsidy/ Owner’s

Contribution

All States other than NE States,

States of Uttarakhand, Himachal

Pradesh, Jammu & Kashmir, hilly

and tribal areas.

NE States, States of Uttarakhand,

Himachal Pradesh, Jammu & Kashmir,

hilly and tribal areas.

Subsidy from the

Government

25% 33.33%

Term Loan 0 to 50% 0 to 50%

Owner’s Contribution Rest of the project cost Rest of the project cost

5. INSTITUTIONAL LENDING

A. Eligible financing institutions :

The eligible financing institutions under the scheme are:

(i) Commercial banks, regional rural banks (RRBs), state cooperative banks (SCBs),

state cooperative agricultural and rural development bank (SCARDBs), agricultural

development finance companies (ADFCs), north-eastern development finance corporation

(NEDFI), and such other institutions which will be eligible for refinance from NABARD.

27

(ii) Cooperative societies and cooperative banks recognized by NCDC in accordance

with its eligibility guidelines.

B. Term Loan

(i) Minimum 50% of the project cost (46.67% in case of NE states, States of

Uttarakhand, Himachal Pradesh, Jammu & Kashmir, hilly and tribal areas and for

entrepreneurs belonging to SC/ST and their cooperatives) can be raised as term loan from

the financing banks. As the subsidy is back-ended, eligible amount of the subsidy

(25%/33.33%) would initially be allowed as term loan to the beneficiary. The repayment

schedule will be drawn on the total loan amount (including subsidy) in such a way that the

subsidy amount is adjusted after liquidation of net bank loan (excluding subsidy).

(i-A): The stipulation of raising minimum above term loan will not be applicable to the

infrastructure projects taken up by State Marketing Boards and other State agencies and

they will be free to decide the quantum of loan for the project, according to the requirement.

They may even fund the project up to 75% of the project cost, with zero credit component,

utilizing internal resources/ own funds.

(ii) Repayment period will depend upon the cash flow and will be up to 11 years

including a grace period of two years. The first annual installment will fall due after 24

months from the date of first disbursement.

(iii) Rate of interest to borrowers on term loan shall be at PLR of the bank (or the lead

bank) as per RBI guidelines. Interest will be chargeable from the date of the first

disbursement of loan.

(iv) The financial institution may also provide working capital separately for undertaking

business by entrepreneurs.

(v) NCDC may follow its own norms for period of term loan, its repayment, moratorium,

interest rates, etc.

6. TIME LIMIT FOR COMPLETION

A time limit of 18 months is prescribed for completion of the project from the date of

disbursement of the first installment of loan by the financial institution or from the date of

approval of the project by the Committee.

28

However, if reasons for delay are justified, a further grace period of 6 months may be

allowed by the financial institution .

However, in case of large integrated agricultural marketing infrastructure projects

involving total outlay of Rs.2 crore or more and requiring phasing, a time limit of maximum of

36 months may be prescribed for completion of the project from the date of disbursement of

the first installment of loan by the financial institution.

If the project is not completed within the stipulated period benefit of subsidy shall not

be available and advance subsidy will have to be refunded forthwith.

7. REFINANCE ASSISTANCE FROM NABARD

For Agricultural Marketing Infrastructure projects, NABARD would provide refinance

to Commercial Banks/RRBs/ADFCs/SCBs/SCARDBs and such other eligible institutions @

90% of the amount financed by the banks as term loan. However, quantum of refinance

would be 95% in case of SCARDBs in north-eastern region. The rate of interest on

refinance will be decided by NABARD from time to time and at present, it is @ 6.75% per

annum.

8. OTHER CONDITIONS

(I) Projects under the scheme may be treated as infrastructure for financing.

(II).The participating banks/NCDC/NABARD etc., will adhere to their own norms for

appraisal of projects.

(III) It will be the responsibility of the owner to have the insurance of the project unit.

(IV)A signboard at the site “Assisted under the Scheme of Agricultural Marketing

Infrastructure of Ministry of Agriculture, Government of India” will be exhibited.

(V) Government’s interpretations of various terms will be final.

(VI)Besides Joint Inspection Committee (JIC) inspection, pre and post-completion

inspections of the project, including those exempted from JIC inspection may be

undertaken to verify physical, financial and operational progress, as and when required.

(VII) Government reserves the right to modify, add and delete any term and condition

without assigning any reason.

9. PROCEDURE TO BE FOLLOWED FOR SANCTIONING OF

PROJECT AND RELEASE OF SUBSIDY

A. Projects financed through banks/NABARD

(i) An interested promoter will submit the project proposal for term loan and subsidy to

the bank on an application form as prescribed by the concerned bank along with project

report and other documents for appraisal and sanction of loan. A copy of the proposal shall

29

also be endorsed by the promoter to Sub-office/Regional Office of DMI as per list at

Annexure VIII.

(ii) Bank after appraisal and sanctioning of project and disbursal of first installment of

loan will furnish a brief project profile-cum-claim form for advance subsidy in the prescribed

form given in Annexure I along with a copy of bank’s sanction letter to RO, NABARD with a

copy to the Sub-Office/Regional Office of DMI as per list at Annexure VII.

(iii) NABARD on receipt of project profile-cum-claim form from the participating bank, will

sanction and release 50% advance subsidy to the participating bank for keeping the same in

the Subsidy Reserve Fund Account (Borrower-wise). NABARD will forward a copy of the

sanction and project profile as indicated in Annexure I to the Head Office of DMI project-wise

for replenishment or adjustment against advance subsidy provided by DMI to NABARD. The

release of subsidy by NABARD will be subject to availability of funds from DMI.

(iv) When the project is nearing completion, the promoter will inform the bank who will

initiate action for an inspection by a Joint Inspection Committee consisting of officials of

bank, NABARD and DMI to ensure that the executed project conforms to technical and

financial parameters. No Joint Inspection shall be required, where the TFO of the project

sanctioned by the Bank is less than Rs.10.00 lakh. For such projects, the inspection will be

conducted by the officer of the financing bank. After joint inspection/inspection is conducted,

the bank will submit the claim for final subsidy in the prescribed format given in Annexure II

to NABARD, in triplicate, with a copy to concerned Regional Office/Sub-Office of DMI. The

inspection report (Annexure-VI) of the Joint Inspection Committee/ Financing bank and

completion certificate should be enclosed with the claim form for final subsidy. NABARD

shall release the final subsidy to banks, which will be replenished by DMI or adjusted against

the subsidy amount provided to NABARD in advance.

B. Projects financed through NCDC.

(i) NCDC shall provide assistance to the cooperatives for development of agricultural marketing infrastructure projects.

(ii) The cooperative societies shall formulate proposals in the format prescribed by NCDC and shall submit to RCS/State Govt. or directly to NCDC in case of societies registered under Multi State Cooperative Act/State Cooperative Act.

(iii) The RCS/State Govt. shall examine the proposal and shall recommend to NCDC for consideration.

(iv) (iv) NCDC shall consider the proposals by way of table/field appraisal according to the

quantum of assistance involved.

(v) NCDC shall communicate its sanction to the State Government and a counter sanction

shall be issued by the State Government to the societies.

(vi) The pattern of funding, interest rates, mode of release of sanctioned assistance shall be

as per NCDC’s norms and policies as circulated from time to time.

30

(vii) The sanctioned assistance shall be released through the State Governments to the

societies.

(viii) The State Governments shall periodically furnish progress reports to NCDC and NCDC

shall furnish the same to DMI.

(ix) DMI shall release advance subsidy for parking in NCDC’s account. The project-wise

subsidy shall be adjusted/replenished by DMI.

(x) NCDC shall furnish utilization certificate to DMI.

(xi) NCDC and DMI may undertake inspection of the completed projects to verify the

utilization on a random basis.

C. Projects financed through their own funds by the State Marketing Boards and

other State Agencies

(i) The State Marketing Board and other State Level Government Agencies will submit the

project proposal to DMI, HO, Faridabad directly. However, lower level State Agencies,

such as, APMCs, Local Bodies etc. should submit their proposals to DMI through their

State level Organizations/ Departments concerned. The DMI will send the proposal to

NABCONS, a wholly owned subsidiary of NABARD or any other suitable Financial

Institution empanelled by the Ministry in accordance with the procedure laid down by

the Ministry of Finance for appraisal. However, the projects, which have been prepared

by NABCONS or any other Financial Institution empanelled by the Ministry availing

the project development facility (PDF) under the Scheme, and have Feasibility Report

and Cost-Benefit Analysis in its DPR prepared by them, need not be referred for

appraisal by DMI.

(ii) NABCONS or the Financial Institution concerned, after appraisal, will forward the

proposal with recommendations to the Committee constituted under the Chairmanship of

Agricultural Marketing Adviser to the Govt. of India with a representative of concerned State

Marketing Board/ State Agency, a representative of concerned Regional/ Sub-Office of DMI

and a representative from the Ministry. The proposals which do not need appraisal will,

however, be straightaway considered by the Committee, on their receipt in DMI.

(iii) The Committee will examine and approve the projects found suitable. The Committee

will also monitor the progress of the execution of such projects;

(iv) The subsidy component will be released as Central assistance to the Board/ State

agency concerned directly by DMI in two equal installments depending on the progress of

the work, of which, the first installment would be released on approval of the project

and the second installment shall be released only on getting a progress report of the

project from the State Agency concerned showing that they have completely made

their contribution for the project and have got it utilized fully and that the project

requires only an amount equivalent to the second installment of subsidy from the

Central Government for its completion. In case there is any other shortfall due to cost

escalation or change in the quantity of works etc., such shortfall will have to be met

by the State Agency concerned before seeking release of the second installment.

31

10. MONITORING

(i) The monitoring of each project shall be done by DMI through its Regional/ Sub offices

(list at Annexure VIII) and review will be done on a monthly basis with NABARD/NCDC.

(ii) As mentioned in Para 9 (iv), a Joint Inspection Committee consisting of officials from

NABARD, NCDC, Financing bank (s), as the case may be and DMI would inspect the project

work within the overall scope of the operational guidelines of the scheme. Joint Inspection is

not required in cases where TFO of the project sanctioned by the bank is less than Rs.10.00

lakh. For such projects, the inspection will be conducted by the officer of the Financing bank.

The Joint inspection Committee/ Financing bank would submit its report in the format at

Annexure VI which should be enclosed with Annexure II. For this purpose, the promoters/

Financing bank /NABARD will initiate necessary action to get the inspection conducted on

the project site by the Joint Inspection Committee/ Financing bank at the time when the

project is completed, so as to avoid any delay in release/adjustment of subsidy.

(iii) After crediting the final installment of subsidy in the reserve fund of the borrower, a

utilization certificate as per Annexure III is required to be submitted by the participating bank

to NABARD/NCDC as the case may be, to the effect that amount of subsidy received by

them has been fully utilized and adjusted in the books of account under the sanctioned

terms and conditions of the project, within the overall guidelines of the scheme.

(iv) The progress report of the scheme as per formats at Annexure IV & V shall be sent

by NABARD/NCDC directly to the Head office of DMI on a monthly basis.

(v) NABARD would delegate adequate powers to the Chief General Managers/General

Managers/ In-charge of Regional Offices of NABARD so as to facilitate expeditious sanction

of projects and release of refinance/subsidy amounts under the scheme.

11. STRENGTHENING OF AGMARK LABORATORIES OF

DIRECTORATE OF MARKETING AND INSPECTION

The civil and electrical infrastructure of the Central Agmark Laboratory at

Nagpur and six Regional Agmark Laboratories functioning in the Departmental

premises shall be suitably improved with maintenance of necessary supplies and

without affecting the normal functions of these labs, a portion of such premises shall

be used to facilitate setting up of testing facilities as per Codex requirements through

a tie-up with outside professional laboratories on rental or revenue sharing basis,

whichever is found advantageous, subject to fixation of rates of testing services by

such agencies in consultation with the Department.

12. GENERAL AWARENESS AND TRAINING PROGRAMME

General awareness, publicity and training programmes for farmers, market

functionaries and entrepreneurs in construction, maintenance and operation of infrastructure

32

projects as also agricultural marketing in general including grading and standardization, shall

be taken up through Ch. Charan Singh National Institute of Agricultural Marketing (NIAM),

Jaipur and other national and state level institution/ Universities. NIAM would also arrange

for consultancy services for setting up of a “Project Development Facility” to catalyze

investment credit in agri-infrastructure projects.

***********

Annexure-I of OG

FORMAT FOR PROJECT PROFILE CUM CLAIM FORM FOR CLAIMING 50% ADVANCE

SUBSIDY/REFINANCE

(TO BE SUBMITTED BY BANK IN TRIPLICATE TO NABARD WITH A COPY TO DMI)

To,

(1) Regional Office, NABARD (2) Regional/Sub-office, (nearest as per addresses enclosed)

Directorate of Marketing & Inspection

SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING

INFRASTRUCTURE, GRADING AND STANDARDIZATION

PART – I

(FOR USE BY BANK)

1. (i) Name & Address of project :

(ii) Whether located in North East Regions/

States of Uttarakhand, Himachal Pradesh,

Jammu & Kashmir/ Hilly Areas/ Tribal Areas

33

2. (i) Name & address of promoter:

(ii) Whether belongs to SC/ ST/

their cooperatives, if yes

specify:

(iii) Whether belongs to State Agencies.

3. Name & address of financing bank:

4. Date of receipt of proposal/application:

5. (a) Date of sanction of term loan by Bank:

(b) Date of disbursement of first installment:

6. Means of finance:

Total outlay :

Promoter’s contribution :

Bank loan :

7. Give brief account of the infrastructure

to be created under the project

(description of components):

8. Item-wise financial projection :

9. Please state how the project would

provide ‘direct’ service delivery to

producers/farming community in post-harvest

management/marketing of their produce:

10. Rate of interest (to be) charged : %

a) In the case of CBS: %

b) In the case of others %

convenor Bank of SLBC:

11. Brief coverage on technical feasibility and financial viability.

34

(Enclose separate sheet along with project report)

12. Other relevant information such as permissions/

approvals obtained etc..

13. The project has been appraised and found to be technically feasible and financially

viable. We intend/do not intend to avail of refinance from NABARD. The refinance amount is

Rs………………………. (if it is to be availed)

14. An amount of Rs………………… (Rupees…………………………………) being the 50%

of the eligible amount of subsidy may please be released in respect of the project for

crediting to the “Subsidy Reserve Fund Account-Borrower wise”.

15. We note that the repayment schedule cannot be altered. We also note that a time limit of

18 months is stipulated for completion of the project from the date of sanction of project. If

reasons for delay in completion of the project are justified, a maximum grace period of 6

months may be allowed for completion of project. We also note that the advance subsidy

has to be refunded forthwith if the project is not completed within the above stipulated period

and as per the broad parameters of the scheme. It is further noted that in case of any delay

in refund of subsidy, the participating bank/beneficiary will be liable for payment of penal

interest.

(____________________)

Seal and signature of the

Authorized Signatory bank

Place:

Date:

35

PART – II

(FOR USE OF RO,NABARD)

(A) For use by RO, NABARD

Advance subsidy

The claim of advance subsidy for Rs.__________________ is forwarded

herewith for release of the same.

(____________________)

Authorized signatory

Regional Office, NABARD

Date:-

(B) For use by NABARD

Scheme code Project Code

State code Bank code

36

District code

An amount of Rs…………………….. is released as advance subsidy on

……………..(name of the bank) vide subsidy disbursement advice

no……………….(copy enclosed). This amount may please be

replenished/adjusted by DMI.

(____________________)

Authorized signatory

Regional Office, NABARD

Date:-

(c) For use by HO, DMI

An amounts of Rs._______________ as advance subsidy against above

mentioned claim is hereby released/replenished to NABARD vide. D.D.

No. _______ dated__________drawn on__________ (Bank).

(____________________)

Authorized signatory

DMI, Head Office

Date:-

37

Annexure-II. Of OG

FORMAT FOR CLAIMING FINAL INSTALMENT OF SUBSIDY

(TO BE SUBMITTED BY BANK IN TRIPLICATE TO NABARD WITH A COPY TO DMI)

To,

(1) Regional Office, NABARD

(2) Regional Sub-office,(nearest as per addresses enclosed)

Directorate of Marketing & Inspection

SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING

INFRASTRUCTURE, GRADING AND STANDARDIZATION

PART – I

(FOR USE BY BANK)

1. Name, address / location of project:

2. Name and address of promoter:

3. Name and address of financing bank:

4. Date of sanction of term loan by Bank:

5. Date of sanction of refinance by NABARD, if applicable:

38

6. Date & amount of refinance released by NABARD:

7. Date of last inspection of project by bank:

(enclose copy of inspection report)

8. i) Total cost of project Rs.

ii) Promoters contribution Rs.

iii) Bank loan Rs.

9. Give brief account of the facilities

created under the project:

10. Advance subsidy

i) Date of receipt :

ii) Amount :

11. Rate of interest being charged by

financing bank

a) In the case of CBs PLR % p.a.

b) In the case of others PLR

of convener Bank of SLBC % p.a.

12. Whether infrastructure facility created/strengthened as per the technical

parameters envisaged under the project.

13. Total amount of expenditure incurred in the project – item-wise details, duly certified

by a chartered accountant (copies of all receipt & certificates from the chartered accountant

are to be enclosed).

14. Various permissions/approvals obtained by the promoters for establishment and

commissioning of the project from various government authorities. (Copy of each such

permission/approval is to be enclosed).

15. The completion / commissioning certificate is required to be signed by the promoters

& verified by a qualified / approved engineer / architect. Such certificate is required to be

counter signed by the Branch Manager of the financing bank.

Since the above project is complete as per terms & conditions stipulated under the scheme,

final inspection of the Project has been arranged and an amount of Rs.

39

_____________(Rupees_____________________________) being the final installment of

subsidy may please be released for crediting to the Subsidy Reserve Fund Account

Borrower wise.

16. It is certified that the observation(s) made by the Joint Inspection Committee/

Financing bank have been complied with. A copy of the Inspection Report of Joint Inspection

Committee/ Financing bank is enclosed.

[______________________]

Seal and Signature of the

Branch Manager

(Bank)Place:

Date:

Enclosures: Completion certificate, Inspection report of committee, etc.

PART – II

(FOR USE BY RO,NABARD)

(A) For use of RO, NABARD

An amount of Rs. ________________________ as final installment of subsidy

towards the above claim of __________________________(name of the bank) in respect of

__________________(name of the project) may be released.

(_______________________)

Authorized signatory

RO,

NABARD

Date:

(B) For use of HO, NABARD

Scheme code Project Code

40

State code Bank code

District code

An amount of Rs.______________________________ is released as final

subsidy on __________________________( name of the bank) vide subsidy

disbursement advice no.________________-(copy enclosed). This amount may

please be released by DMI.

(_______________________)

Authorized signatory

HO

NABARD

Date:

(C) For use by HO, DMI

An amount of Rs. ____________________________ as final subsidy against above

mentioned claim is hereby replenished/adjusted to NABARD vide D.D. No.

____________ Dated__________drawn on __________ (Bank)

(_______________________)

Authorized signatory

DMI Head Office

Date:

41

Annexure III. Of OG

Format for Utilization Certificate

(FOR THE USE OF FINANCING BANK TO BE SUBMITTED, IN TRIPLCIATE, TO THE REGIONAL OFFICE OF NABARD)

SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING

INFRASTRUCTURE, GRADING AND STANDARDIZATION

1. Name, address and location of the beneficiary and project:

2. Name of the financing bank:

3. Name & address of the financing branch :

4. Date of sanction of loan by bank:

5. Date of inspection by Joint Inspection Committee:

6. Date of commission of the unit:

7. (i) Total financial outlay -Rs.

42

(ii) Margin money -Rs.

(iii) Bank loan -Rs.

(iv) Subsidy received Date of receipt Amount Date of credit to the

from NABARD (Rs.) Subsidy Reserve

Fund A/c of the Borrower

(a) 50% Advance Subsidy

(b) Final installment of subsidy

8. Brief description of facilities created with capacity etc.: 9. Rates of Interest charged by the financial bank %p.a.

(a) In the case of CBs PLR % p.a.

(b) In the case of others-

PLR of convenor bank of SLBC

10. The bank has/has not availed refinance from NABARD. 11. This is to certify that the full amount of subsidy received in respect of the above

project has been fully utilized (by way of crediting to the “ Subsidy Reserve Fund Account-borrower-wise) and adjusted in the books of account under the sanctioned terms and conditions of the project within the overall guidelines of the scheme.

Place

Date

Seal & Signature of the

Branch Manager (Financing bank)

43

Annexure-IV & V of OG

PROGRESS OF SCHEME FOR

“ DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE,

GRADING AND STANDARDIZATION”

SANCTIONED/PENDING SCHEME (ABSTRACT)*

STATUS AS ON _________

Sl.

No

.

State Name of

the

project

Location Infrastructure/facil

ities developed

with

capacity/broad

specifications

TFO

Sancti

oned

Bank

loan

Promoter’s

Contributio

n

Total

eligible

subsidy

Subsidy released to financing banks

Advance

Subsidy

Final

Installment

subsidy

Total

Subsidy

44

* The above information break-up may be furnished in the same format for schemes sanctioned in NE

States, States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, hilly and tribal areas, SC/ST

entrepreneurs and their cooperatives separately.

45

Annexure-VI. Of OG

PROFORMA FOR JOINT INSPECTION REPORT/ FINANCING BANK REPORT

A. Name & Address of the Promoters/Entrepreneurs:

B. Members of Joint Inspection Committee/ Financing bank.

(Name, Designation & Address)

( I ) NABARD

( ii ) Financing Bank

( iii ) DMI

( iv ) State Marketing Board/ State Agency

C. i) Date of completion of the project:

ii) Date of intimation of completion

of project to NABARD and DMI:

iii) Date of Joint Inspection/ Inspection

D. Project at a glance

i) Location and facility created :

ii) Financing Bank :

iii) Total Project cost :

iv) Amount of term loan provided :

v) Date & amount of Ist installment

of loan disbursed :

vi) Date & amount of Ist installment of

46

Subsidy released:

vii) Owner’s fund in the project :

a) Adjusted against land value :

b) Cash

E. i) Whether project implemented as

per approval

(Specifications etc.) :

ii) If no, specify the deviations:

iii) Whether project implemented in time:

F. Recommendations of the Joint Inspection Committee/ Financing Bank

G. Signatures of the Joint Inspection Committee members/ Financing Bank.

Signature & Date

1) NABARD

2) Financing Bank

3) DMI

4) State Marketing Board/ State Agency

47

Annexure-VII of OG

FORMAT FOR CLAIMING SECOND INSTALLMENT OF SUBSIDY (to be submitted by the State Agency to DMI, H.O. Faridabad)

To The Agricultural Marketing Adviser to the Govt. of India Directorate of Marketing & Inspection Head Office, N.H.IV Faridabad-121001.

SCHEME FOR DEVELOPMENT/STRENGTHENING OF AGRICULTURAL

MARKETING INFRASTRUCTURE, GRADING AND STANDARDIZATION

1 Name and address of the

State Agency

2 Name, address/location of

project:

3 Name, address of the

controlling authority:

4 Date of sanction of project by

the Sanctioning Committee:

5 . Total cost of the project as

approved by the Sanctioning

Committee:

Rs.

6 State Agency contribution expected for the project:

Rs.

48

7 Total eligible subsidy as approved by the Committee of DMI:

Rs.

8 Amount of first installment of

subsidy and date of receipt:

Rs.

9 Brief account of the item-wise

progress of works undertaken

so far under the project(duly

certified by a Competent

Engineer of the State Agency

or that of State Government):

10 Date of inspection of project

by DMI, if any:

11 Total amount of expenditure

incurred so far in the project

–item-wise details, duly

certified by a Chartered

Accountant:

(copies of all receipt and

certificates from the chartered

accountant are to be

enclosed)

Rs.

12 Various permission/approvals

obtained by the State Agency

for establishment and

commissioning of the project

from various government

authorities :

(copy of each such

permission/approval is to be

enclosed):

13. Certified that above project is nearing to completion as per terms, conditions

stipulated under the scheme and we have completely made our contribution for the

49

project and have got it utilized fully and the project requires only an amount equivalent

to the second installment of subsidy from the central govt. for its completion. Utilization

Certificate for the first installment of subsidy is enclosed as per prescribed format GFR

19-A.

14. It is requested that an amount of Rs.________________(Rupees______________)

being the second installment of subsidy may please be released for completing the

project. The Utilization Certificate for second installment of subsidy will be submitted

immediately after completion of the project as per time period prescribed under the

scheme.

Place: Signature:

Date: Name:

Address:

Enclosures: As above.

50

ANNEXURE-II

State-wise No. of Combined Harvesters Sanctioned under the AMIGS Scheme since inception of the Scheme to June, 2011.

Sl. No. Name of State No. of Projects

1 Andhra Pradesh 497

2 Madhya Pradesh 174

3 Punjab 697

4 Kerala 27

5 Tamil Nadu 881

6 Rajasthan 45

7 Chattisgarh 24

8 Himachal Pradesh 0

9 Maharashtra 35

10 Orissa 0

11 Gujarat 0

12 Sikkim 0

13 Karnataka 4

14 Assam 0

15 Nagaland 0

Total 2384

51

ANNEXURE – III

STATE-WISE AGENCY-WISE PROGRESS REPORT OF SCHEME IN XI th PLAN

(Rs. in Crores)

S.

No.

State / U.T.

Sanctioned by NABARD Sanctioned by NCDC Sanctioned to State Agency Total Sanction

No. of Projects

TFO Eligible subsidy

Total subsidy released

No. of Projects

TFO Eligible subsidy

Total subsidy released

No. of Projects

TFO Eligible subsidy

Total Subsidy Released

No. of Projects

TFO Eligible subsidy

Total Subsidy Released

1 A. P. 610 808.31 101.33 60.16 0 0.00 0.00 0.00 0 0.00 0.00 0.00 610 808.31 101.33 60.16

2 M. P. 731 726.99 174.97 66.25 1 1.61 0.40 1.33 18 89.58 22.50 18.28 750 818.18 197.88 85.86

3 Punjab 417 170.10 43.13 26.59 1 6.48 0.50 0.50 59 209.96 52.49 26.24 477 386.55 96.12 53.33

4 Kerala 221 142.98 29.68 14.40 10 78.93 1.76 1.48 49 4.33 1.08 0.54 280 226.23 32.52 16.42

5 Tamil Nadu 332 123.14 18.04 17.61 10 300.97 11.76 3.30 10 1.00 0.25 0.25 352 425.11 30.05 21.15

6 Rajasthan 272 313.39 46.46 33.10 0 0.00 0.00 0.00 42 153.04 38.70 25.02 314 466.43 85.16 58.12

7 Chattisgarh 93 67.25 15.19 15.37 0 0.00 0.00 0.00 9 11.78 3.11 5.95 102 79.03 18.30 21.31

8 H P 35 23.57 6.09 4.68 0 0.00 0.00 0.00 12 19.92 6.64 6.59 47 43.48 12.73 11.28

9 Maharashtra

781 1259.71 213.20 156.52 3 33.65 1.71 1.21 93 126.12 31.61 8.58 877

1419.4

8 246.52 166.31

10 Orissa 4 4.82 1.20 0.77 0 0.00 0.00 0.00 0 0.00 0.00 0.00 4 4.82 1.20 0.77

52

11 Gujarat 266 155.80 23.53 13.59 1712 181.06 43.06 31.92 12 8.15 2.04 0.35 1990 345.01 68.63 45.86

12 Sikkim 1 0.60 0.20 0.16 0 0.00 0.00 0.00 0 0.00 0.00 0.00 1 0.60 0.20 0.16

13 Karnataka 58 12.74 3.10 0.98 84 85.77 12.64 0.00 1 1.78 0.44 0.00 143 100.29 16.19 0.98

14 Assam 8 13.54 3.59 2.69 0 0.00 0.00 0.00 0 0.00 0.00 0.00 8 13.54 3.59 2.69

15 Nagaland 0 0.00 0.00 0.00 0 0.00 0.00 0.00 35 17.13 5.71 5.71 35 17.13 5.71 5.71

16 W. Bengal 0 0.00 0.00 0.00 0 0.00 0.00 0.05 0 0.00 0.00 0.00 0 0.00 0.00 0.05

TOTAL 3829 3822.94 679.74 412.87 1821 688.47 71.82 39.77 340 642.79 164.57 97.52 5990 5154.1

9

916.13 550.15

53

ANNEXURE-IV

Number of samples in selected States for evaluation of AMIGS Scheme

A. Other than NE States (Sanctioned by NABARD)

Sl. No. Name of States No. of Projects to be selected for evaluation

1 Maharashtra 75

2 Madhya Pradesh 75

3 Punjab 75

4 Rajasthan 30

5 Kerala 20

6 Karnataka 8

7 Odhisa 2

Total 285

B. North Eastern States(Sanctioned by NABARD)

Sl. No. Name of States No. of Projects selected for evaluation

1 Assam 4

2 Sikkim 1

Total 5

C. Hilly States(Sanctioned by NABARD)

Sl.No. Name of State No. of Projects selected for evaluation

1 Himachal Pradesh 5

Total 5

D. Sanctioned by NCDC ( Cooperative Sector)

Sl. No. Name of States No. of Projects selected for evaluation

1 Gujarat 100

2 Karnataka 10

3 Maharashtra 2

4 Tamil Nadu 2

5 Punjab 1

Total 115

54

E. Sanctioned by DMI (State Agency):

The evaluation agency will evaluate the number of projects mentioned against each

State. The evaluation agency will evaluate completed projects only. The total number of

projects to be evaluated in each State will include all the seven categories mentioned in

Annexure – V and also the projects having TFO of less than Rs.10 lakhs. The objectives of

the study will be kept in view while selecting the projects. The Evaluation Agency will prepare

a proposal for the projects to be evaluated including all the seven categories for each State &

also the projects having TFO of less than Rs.10 lakhs and get the approval of DMI / DAC

before the start of the study.

Sl. No. Name of States No. of Projects selected for evaluation

1 Maharashtra 15

2 Punjab 10

3 Rajasthan 10

4 Kerala 10

5 Nagaland 5

Total 50

55

ANNEXURE – V

CATEGORIES OF PROJECTS

1. Primary Processing & Value Addition Facility

2. Cleaning, grading and packaging Units

3. Pre-cooling / cold chain facility

4. Market User Common Facility ( Auction Platform, Weighbridge,

Mechanical Handling equipments etc.)

5. Mobile Infrastructure

6. Establishment of Private Markets / Purchase centres /Collection

centres/ Market Yards

7. Others

56

ANNEXURE - VI

Performa for the Information of Project surveyed.

(Photograph of Project surveyed to be enclosed)

1. Name & Address of the Project:

2. Name, Address & Contact Number of the promoter:

3. Category of Promoter: General / SC / ST / Women.

4. The purpose of the Project:

(Brief of the facility created)

5. Total Financial Outlay (Rs. in lakhs):

6. Total eligible subsidy (Rs. in lakhs):

7. Total subsidy received (Rs. in lakhs): Advance: Final:

8. No. of farmers / producers benefited from the project:

(Based on the records of the Entrepreneur)

9. The details of Civil Structure and Machinery / Equipments:

(% of TFO)

10. Details of employment generated from the Project (Direct & Indirect) :

11. Comments on reduction in Post Harvest Losses, Value Addition and Increase in Farmers

Income etc.:

Date : Signature of the Authorized Person

of the Evaluation Agency

57

ANNEXURE-VII

Agreement

This Agreement made on this ______________ day of ______ Two Thousand and____________ between the President of India acting through the Agricultural Marketing Adviser to the Government of India, Directorate of Marketing & Inspection, Department of Agriculture &. Cooperation, Ministry of Agriculture, Government of India, New Delhi (hereinafter called the 'Client', which expression, unless excluded or the context otherwise required, shall include its successors in office and assigns) of the one part and M/s---------------------- having its registered office at---------, an Organization incorporated under (the Act / Law, if any) through its duly authorized signatory (hereinafter called 'the Agency', which expression, unless excluded or the context otherwise required, (shall include its administrators, successors and permitted assigns) on the other part.

WITNESSETH:

A. WHEREAS the Client has decided to conduct a study/an assignment titled - ‘Evaluation and Impact Assessment of Central Sector Scheme – Scheme for Development/ Strengthening of Agricultural Marketing Infrastructure, Grading & Standardization Based on the Terms and Reference (TOR).

B. AND WHEREAS the Client is desirous of engaging the services of the Agency for the above purpose, in accordance with this Agreement (hereinafter referred to as Services).

C. AND WHEREAS the Agency has agreed to render such Services.

NOW, THEREFORE IT IS HEREBY AGREED between both parties to the Agreement as follows:

1. The Agency shall adhere to the objectives, scope, tasks, outputs, methodology, completion schedule and various other terms and conditions laid down in this Agreement and Annexure - I & II to this Agreement for rendering the Services.

2. The Agency shall render the services to the total satisfaction of the Client and as per the

technical specifications given in Annexures - I & II. The decision of the Client about satisfactory rendering of the services including various related items will be final and shall not be challenged by the Agency on any ground whatsoever.

3. For violation, if any, of Intellectual Property Rights (IPR) of any body, the Agency is liable

for compensation and the Agency shall be responsible to keep indemnified the Client and shall be required to pay license fee to the other party and any other payment required to square up the matter regarding any infringement of IPR of any third party(ies).

4. The Agency would draw up a Project Inception Report (PIR) within 15 days indicating the

proposed field arrangements and the detailed logistics to conduct the study/complete the assignment. The Agency would make a presentation on PIR before the client and also modify the PIR in accordance with suggestions of the Client before starting the work.

5. The Schedules I, II and the TORs given in Annexure I & II attached to this Agreement

shall be deemed to be an integral part of this Agreement. 6. The date of commencement of services shall be as specified in Schedule I of this

Agreement.

58

7. The date of satisfactory completion of services shall be the date which the Client accepts by issuing an appropriate certificate of satisfactory completion of services, subject to such date being on or before the completion date given in Schedule I and other terms and conditions of this Agreement.

8. The consideration payable by the Client to the Agency for satisfactory completion of the

service shall be as stated below (and also given in Schedule II) which will be strictly adhered to and the Agency is answerable to the Client for the amount paid at every stage as under:

a) Ist Installment: 10% of contract value (On acceptance of letter of award and submission of Project Inception Report within 15 days of the date of selection of the Agency)

b) IInd Installment: 50% of contract value (On submission of Interim Status Report Within 60 days from submission of Inception Report and on submission of Draft Evaluation Report within 30 days of issue of comments / suggestions on Interim Status Report by DMI/DAC)

c) Final Installment: 40% of contract value (On acceptance of Final Evaluation Report and submission of the Report in various forms by the Evaluation Agency as mentioned in Item 13 of TOR within 15 days of acceptance of Final Report by the DAC)

d) Total amount to be paid to the Agency = Rs. --------------(in words also)

9. If the terms of payment defined in Schedule II relate to phase-wise progress of rendering the services, each such phase shall be deemed to have been completed subject to such conditions, as contained therein, If any, on issue of a letter acknowledging receipt, such letter being duly signed by an authority authorized on this behalf by Client.

10. If the terms of payment contemplate payment to the Agency of any advance, such arrangement shall be subject to the Agency securing the agreed amount of the advance by an unconditional and irrevocable bank guarantee in favour of Client, from a Nationalized Indian bank. Such bank guarantee shall be valid up to six months beyond the entire period allowed by the Client to the Agency to complete the relevant stage of the work to the full satisfaction of the Client.

11. Client shall have full rights to monitor the progress of services being rendered by the

Agency at all stages and to give suitable instructions and directions as deemed fit by the Client within the purview of the Annexures I & II. The Agency shall implement such modifications unconditionally.

12. Client shall have right at all times to enter the premises and work area of the Agency for

the purposes of inspection of the progress of the services.

13. If during the course of monitoring the work of the Agency, Client is satisfied that the

services being rendered are not to its complete satisfaction, then, Client shall have the right to cancel the Agreement after giving a notice of 15 days and have the work completed by any other body at the sole risk and cost to the Agency. This shall be without prejudice to Client's right to call bank advance, invoke bank guarantee and impose such recoveries, penalties and sanctions as it deems fit.

14. In case the Client finds it necessary to abandon the work and terminate the services of

the Agency before the completion of the work, at any stage, for reasons which are not

59

wholly attributable to the Agency, it may be done after making payments to the Agency for the services actually rendered for carrying out the work till the date of termination and the Agency shall provide the Client with any report or part thereof or any other information and documentation gathered under this Agreement prior to the date of such termination. The total amount of advance paid to the Agency but unutilized at the time of such termination shall be returned by the Agency to the Client.

15. The Agency will hire such Subject Matter Consultants, as required by them who will

ensure technical soundness of the subject leading to the satisfactory completion of work.

16. Any consultant, workman/officer/employee or agent etc. engaged by the Agency for the purpose of rendering services under this Agreement shall always be and continue to be the employee or agent of only the Agency and not of Client, and Client shall not be liable or responsible for any loss, accident, damage suffered by the Agency, any employee or agent of the Agency or any person claiming under the Agency, arising in or out of the execution of this work in any manner whatsoever.

17. If at any point of time it is necessary to make amendment to the Provisions in Schedule

I or II, such revisions, if accepted by both parties, shall be included by appropriate amendment to this Agreement duly signed by both the parties.

18. The time for completion being essence of this Agreement, if the Agency delays, fails or

defaults, the Client may, without prejudice to the other rights to the Client to recover from the Agency the damages for breach of contract, may recover from the Agency as agreed Liquidated damages (and not by way of penalty) a sum equivalent to 1% of the contract value for each week or a part thereof, for delay beyond the stipulated date of completion given in Schedule-I, subject to a maximum of 10% of the contract value. Any delay beyond ten weeks of the agreed time frame, the Client, will have the option to encash the Bank Guarantee, without any notice to the Agency.

19. In case of any dispute between the Client and the Agency arising out of or in relation to the Agreement, the dispute shall be referred to arbitration of a sole arbitrator to be appointed by the Secretary, Department of Agriculture & Cooperation, Ministry of Agriculture, Government of India in consultation with the Law Secretary, Department of Legal Affairs, Government of India. The Arbitration and Conciliation Act, 1996 shall be applicable to arbitration under this clause. The award of the arbitrator shall be binding on the parties to the dispute provided, however, any party aggrieved by such award may make a further reference for setting aside or revision of the award to the Law Secretary or any other officer when so authorized by the Law Secretary, whose decision shall bind the parties finally and conclusively. The place of arbitration shall ordinarily be at New Delhi but may be changed by the arbitrator for sufficient reasons.

20. The Agency shall fully indemnify the Client against all liability arising out of action,

demands, proceedings resulting from negligence or breach attributable solely to the Agency. Similarly, the Client shall fully indemnify, the Agency against all liability arising out of action, demands, proceedings resulting from negligence or breach attributable solely to the Client. This Clause shall survive the termination or expiration of the Agreement executed by the parties provided that there shall be no indemnity on either side in cases of indirect, remote or consequential damages including loss of profit or loss of business, by the other party.

60

21. Without prejudice to the Agency's liability towards the workmen, employees and agents, the Agency will be responsible to purchase and keep in force appropriate insurance coverage with regard to the liabilities stated under Clause 20 above. The Agency shall maintain workers' compensation, employment liability insurance for their staff on the assignment. The Agency shall also maintain comprehensive general liability insurance, including contractual liability coverage adequate to cover the indemnity of obligation against all damages, costs and charges and expenses for injury to any person or damage to any property arising out of, or in connection with, the services which result from the fault of the Agency or its staff. The Agency shall provide the Client with certification thereof upon demand.

22. The Agency shall be liable to pay the taxes, duties, fee, levies and other impositions

levied under the Applicable Law for the conduct of the Study or to carry out the assignment.

23. The Agency undertakes to conduct the study/ carry out the assignment in accordance

with the highest standards of professional and ethical competence and integrity, having due regard to the nature and purpose of the assignment, and to ensure that the staff assigned to perform the services under this Agreement, will conduct themselves in a manner consistent herewith.

24. The Agency is required to undertake the Tasks specified in Annexures - I & II. The

Agency shall submit the reports to the Client in the quantity and the manner stated below:-

a) Master copy with photographs, capable of yielding good photocopies;

b) Information in prescribed format alongwith photographs of each Project surveyed

c) 10 (Ten) bound hard copies, DTP produced of high quality; d) Soft copy and e) Loaded on 10 CDs of good quality.

25. The Authorized signatory of the Agency is required to submit the letter of Authorization

issued by the Board of Directors/ Governing Body or any other authentic Governing body of Agency as the case may be.

26. (i) Force Majeure shall include un-predictable, un-foreseen, catastrophic and Natural

calamities or acts of God, beyond the control of both the parties and not brought about at the instance of the Party claiming to be affected by such event or which, if anticipated or foreseeable, could not be avoided or provided for and which has caused the non-performance or delay in performance, such as earthquake, flood, land slide, epidemic, drought, hail storm, high variation in temperature, fire, war, curfew, riots, existing on or after the effective date of this agreement which prevent totally or partially the fulfillment of the obligations of one or both the parties.

(ii) The party invoking Force Majeure shall provide to the other party confirmation of the existence of facts constituting Force Majeure. Such evidence shall consist of a statement of certificate of any Governmental Department or Agency. If such a statement or certificate cannot reasonably be obtained, the party claiming Force Majeure may, as a substitute therefore, make a notarial statement describing in detail the facts claimed to constitute Force Majeure and the reasons, why such a certificate or statement confirming the existence of such facts cannot reasonably be obtained.

61

(iii) During the period that the performance by one of the parties of its obligations under this Agreement has been suspended by an event of Force Majeure, the other party may likewise suspend the performance of all or part of its obligations hereunder, except for payment of any amounts then already due and payable.

(iv) Should the period of Force Majeure continue for more than six calendar months, either party may terminate this Agreement without liability to the other party, except for payments due as of the termination date, upon giving written notice and recovery of advance payment including invoking of Bank Guarantees.

27. All notices required or allowed to be given hereunder shall be made by either:

a) Delivery in person with signed receipt b) Telex/Fax properly transmitted to the parties, or c) Registered mail

28. All notices shall be addressed to the parties respectively as follows:

For Agency:- For Client: - The Agricultural Marketing Adviser to the Govt. of India

Directorate of Marketing & Inspection, Department of Agriculture &. Cooperation, Ministry of Agriculture, New CGO Complex, Block-A, NH-IV, Faridabad 121 001

Or to such other address or telex/Fax number as either party may from time to time specify by written notice to the other party on notices and communications sent by registered mail in accordance with clause 27 and 28 shall be deemed to have been received by the addressee in the ordinary course even if returned with remarks such as ‘not found’, ‘left without address’, ‘premises lock’, ‘refused’, or any similar remark.

29. The Agency hereby warrants that the services rendered to Client shall be of highest quality and shall be in full compliance of the Specifications laid down in Annexures -I & II to this Agreement.

30. All final plans, drawings, specifications, designs, reports and other documents or software submitted by the Agency in the performance of the services shall become and remain the property of the Client. The Agency may retain a copy of such documents, but shall not use them for purposes unrelated to this contract without the prior written approval of the Client. The Intellectual Property Right, if any, in the study/assignment shall exclusively vest in the Client.

31. The Agency also agree that all knowledge and information not within the public domain which may be acquired during the carrying out of this Agreement, shall be for all time and for all purposes, regarded as strictly confidential and held in confidence, and shall not be directly or indirectly disclosed to any person whatsoever, except with the Client's written permission.

32. The Chairperson of the Committee, as indicated in para 8 of Annexure - I would be the Competent Authority for condoning any delay on account of reasons not attributable to or beyond control of the agency.

33. Nothing contained in this Agreement shall be construed as establishing or creating between the Parties a relationship of master and servant or principal and agent.

62

34. Neither this Agreement nor any rights under it may be assigned, transferred or sub-let by any party without the prior written consent of the Party.

35. Delay or omissions to take any action under this Agreement shall not constitute waiver.

No waiver by any Party of anyone or more obligations or defaults by any other Party in the performance of this Agreement shall operate or be construed as a waiver of any other obligations or defaults whether of a like or of a different character.

36. The Agency shall at all time indemnify Client against any claims in respect of any damages

or compensation payable in consequences of any accident or injury sustained or suffered by its (the Agency's) employees or agents or by the Client's employees, agents or property any other third Party resulting from or by any operation conducted by or on behalf of the Agency.

37. The Agency will have to furnish a bank guarantee (from any Scheduled Commercial

Bank) equivalent to first installment i.e. 10 per cent of the project cost to the Ministry of Agriculture before the release of advance payment.

38. The Agency shall notify .the Client of any material change in their status, shareholding or

that of any Guarantor of the Agency, in particular, where such change is likely to have impact on performance of obligations under this Agreement.

39. This Agreement shall not be amended, modified, varied or supplemented in any respect

except by an instrument in writing signed by all the Parties, which shall state the date from which the amendment or modification shall become effective.

40. Subject to Clause 19, the Courts at Delhi shall alone have jurisdiction in the matters

arising out of or in respect of this Agreement. IN WITNESS WHEREOF, the Parties have hereunto set their hands and have executed these presents this ________________ day of ______________ CLIENT

Signed for and on behalf of the President of India

By: ______________ In presence of ______________ ________

AGENCY Signed for and on behalf of _____ Agency (Authorized signatory) Duly authorized vide

Resolution No. ____dated ____ of its Board of

Directors/Board of Governing Body By: ____________ _ In the presence of________________________

63

SCHEDULE – I

Date of commencement :

Date of completion :

For Client For Agency

(Authorized signatory) (Authorized signatory)

For and on behalf of the President of India Duly authorized vide

Dated Resolution No.____

______of its Board of Directors/ Board of

Governing Body

SCHEDULE – II

Payments to the Agency will be made in stages as under:

a) 1st Installment: 10% of contract value (On acceptance of letter of award and submission of Project Inception Report within 15 days of the date of selection of the Agency)

b) IInd Installment: 50% of contract value (On submission of Interim Status Report Within 60 days from submission of Inception Report and on submission of Draft Evaluation Report within 30 days of issue of comments / suggestions on Interim Status Report by DMI/DAC).

c) Final Installment: 40% of contract value (On acceptance of Final Evaluation Report and submission of the Report in various forms by the Evaluation Agency as mentioned in Item 13 of TOR within 15 days of acceptance of Final Report by the DAC)

d) Total amount to be paid to the Agency = Rs.

For Client For Agency

(Authorized signatory) (Authorized signatory)

For and on behalf of the President of India Duly authorized vide

Resolution No.____

Dated

______of its Board of Directors/ Board of

Governing Body

**************

64

Annexure-I

Terms of Reference (TORs)

(It would be the document based on which bids are invited from shortlisted firms/parties).

Annexure-II

(It would specify amplifications, if any, to the Annexure—I made during the process of

selection of the agency).

65

ANNEXURE- CL- 1

Check List for of Documents / information to be provided by the Evaluation Agency at the time

of submission of proposal.

Sr.

No. Particulars of Documents / Information Yes / No

1. Whether the Technical Proposal in Form 1 to Form 10 in a sealed

cover submitted.

2. Whether the Financial Proposal in Form Fin - 1 to Fin – 5 in a separate

sealed cover submitted.

3. Whether the copies of following supporting documents submitted

Articles of Memorandum, the Statement of total turnover for the last 3

years indicating profit before and after tax dully certified by the

Chartered Accountant, Annual Report, Audit Report, CV of Key

Professionals.

4. Whether the Agency is having relevant and requisite experience of 3

years and expertise in the field of consultancy and evaluation of the

plan schemes, project formulation and analysis relating to agricultural

marketing, food processing etc.

5. Whether the Agency is having a minimum annual turn over of Rs.1

crore in last 2 financial years

6. Whether the Earnest Money Deposit (EMD) of Rs.50,000/ has been

deposited.

66

ANNEXURE- CL- 2

Check List for of Documents / information to be provided at the time of release of 1st Installment (10% of contract value)

Sr.

No. Particulars of Documents / Information Yes / No

1. Date of letter of acceptance

2. Whether the acceptance of letter of award submitted

3. Date of acceptance of Project Inception Report (PIR)

4. Whether the Project Inception Report (PIR) submitted within the

prescribed time limit.

5. Whether the Project Inception Report (PIR) accepted by DMI / DAC

6. Whether the Bank Guarantee submitted

7. Whether the Agreement in Annexure VII duly signed and submitted

8. Whether the requisite Presentation on PIR made

67

ANNEXURE- CL- 3

Check List for of Documents / information to be provided at the time of release of 2nd Installment (50% of contract value)

Sr.

No. Particulars of Documents / Information Yes / No

1. Date of submission of Interim Status Report

2. Whether the Interim Status Report submitted

3. Date of acceptance of Interim Status Report

4. Whether the 75% of prescribed projects surveyed

5. Whether the Interim Status Report accepted by DMI / DAC

6. Date of submission of Draft Evaluation Report

7. Whether the Draft Evaluation Report submitted

8. Date of acceptance of Draft Evaluation Report

9. Whether the Draft Evaluation Report accepted by DMI / DAC

10. Whether the Interim Status Report & Draft Evaluation Report submitted

within the prescribed time limit.

11. Whether the Presentation on Interim Status Report & Draft Evaluation

Report made

68

ANNEXURE- CL- 4

Check List for of Documents / information to be provided at the time of release of 3rd & final Installment (40% of contract value)

Sr.

No. Particulars of Documents / Information Yes / No

1. Date of submission of Final Evaluation Report

2. Whether the Final Evaluation Report submitted

3. Date of acceptance of Final Evaluation Report

4. Whether the Final Evaluation Report accepted by DMI / DAC

5. Whether the Master copy in loose sheets with photographs submitted

6. Whether the information in prescribed format alongwith photographs of

each Project surveyed submitted

7. Whether the prescribed number of projects surveyed

8. Whether ten bound hard copies, DTP produced of high quality

submitted

9. Whether the Soft copy sent by e-mail received

10. Whether ten CDs of Final Evaluation Report received

11. Whether the Final Evaluation Report submitted within the prescribed

time limit.

12. Whether the Presentation on Final Evaluation Report made

13. Time over run, if any. If yes, whether delay condoned or penalty

imposed