Assistance for Spices Processing in North Eastern Region
Assistance for Spices Processing in North Eastern Region
The Indian Government has initiated a subsidy scheme for the “Spices Processing in North Eastern Region” under the Department of Export Development and Promotion of Spices. Under this scheme, it is proposed to grant financial assistance to the exporters/research institutions, farmers associations, spice growers cooperatives, NGOs representing spices growers, and entrepreneurs in the North-Eastern and hill states to establish primary processing facilities for spices. In this article, we look in detail at the Assistance Scheme for Spices Processing in North Eastern Region.
To know about the Reasons to Start a Spice Business in India
Eligibility Criteria
The exporters must satisfy the below following criteria to apply for the scheme.
- Spices growers’ cooperatives
- Farmers’ associations
- NGOs representing spices growers
- Individual entrepreneurs in the North Eastern and hill states.
Scale of Assistance
Under this scheme, the grant in aid is provided to the tune of a maximum of 33% of the total cost of all types of primary processing facilities that are subjected to a maximum of Rs. 25 lakhs during the plan period per beneficiary.
The Government provides the assistance amount for the farmers’ groups, which will be up to 50% of the total cost of primary processing facilities that are subjected to a maximum of Rs. 35 lakhs during the plan period per beneficiary.
Documents Required
The required documents must be furnished along with the application form are as follows:
- Application in the prescribed form in duplicate
- Project description appraised by financial institutions / Chartered Engineer or any other competent technical organization.
- List of equipment proposed to be installed.
- Copies of quotations for machinery/ equipment from a minimum of two parties
Payment Procedure
The claims on expenses for setting up the processing facilities/ manufacturing equipment after the date of application for the grant in aid only will qualify to work out the total cost of the project for payment of the grant in aid. All payments for the processing facilities/ manufacturing equipment etc. must be made by crossed cheque/demand draft, which must be reflected in the bank statement. The amount by cash to petty expenditures connected with the project would be considered up to Rs. 35,000/- only.
Export Obligation
The beneficiaries are required to fulfill an export obligation against availing assistance by exporting spice and spice products worth five times the grant in aid within five years from the completion date of the processing facilities. For discharging the export obligation, the export will be modified directly by the beneficiary, if any, and the supplies delivered by the beneficiary to other exporters for the export (deemed export) will be considered.
Inspection/ Verification
Upon completion of the project/ installation, the beneficiary has to furnish the following required documents and the application form and submit it to the Board.
- Application in the prescribed form.
- Completion report
- Proof of bills, vouchers, and receipts (to be self-attested)
- Expenditure statement duly attested by the Chartered Accountant
- Bank statement detailing payments released for the qualified activities/ components of the project or copies of Demand Drafts (DD) relating to the amount effected for the project.
On receiving the project claims and satisfactory completion, the Board will consider providing qualified assistance to the exporter. The Board will also arrange for an inspection of the unit for physical verification of the installations of equipment/machinery. The inspection team will consist of an officer from the Board and a local representative from the department of industry/ EIA/ Agmark or any other Government agencies.
Application Procedure of the Scheme
The exporter who wants to avail of the assistance under this scheme has to follow the below procedure:
Step 1: The applicant will have to approach the Spices Board to apply for this Assistance Scheme Spices Processing in North Eastern Region
Step 2: Then, the applicant has to get the scheme form from the office and fill it out the in the prescribed format along with copies of the detailed proposal, including details of the market promotion to be offered with the cost break up in each segment separately.
The scheme form can also be downloaded from the official web portal of Export Development and Promotion of Spices. The same has been reproduced below for ready reference in PDF format.
applicationProductDevelopment&Research
Step 3: The applicant will have to provide a detailed report/ records of the activities undertaken along with a progress report and an expenditure statement that the loan has been fully utilized only for the sanctioned purpose and must be submitted at the end of each year.
Step 4: The supporting documentary proofs for the expenditure incurred/ committed has to be produced to the Board.
Step 5: Finally, the applicants can avail of the funds upon completion of the formalities, and the fund will be transferred to the applicant at the earliest.
