Fisheries and Aquaculture Infrastructure Development Fund (FIDF)
Fisheries and Aquaculture Infrastructure Development Fund (FIDF)
The government of India encourages private entrepreneurs and fish farmers in the creation of fisheries infrastructure facilities. To achieve 20 million tons of fish production by 2022-23, the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) was created with an estimated fund outlay of Rs 7522.48 Crore. The Current article briefs the Fisheries and Aquaculture Infrastructure Development Fund.
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Objective of FIDF
The objective of the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) is as follows:
- To Create and modernize the capture & culture fisheries infrastructure
- To create Marine Aquaculture Infrastructure
- To create and modernize the Inland Fisheries Infrastructure
- To reduce post-harvest losses and improve domestic marketing facilities through infrastructure support
- To bridge the resource gap and facilitate the completion of ongoing infrastructure projects
Advantages of the FIDF scheme
The advantages of the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) are listed as follows:
- No limits for the number of units / Area
- The scheme provides a maximum repayment period of 12 years inclusive of a moratorium of 2 years on repayment of principal
Eligible Entities for FIDF Scheme
The eligible entities for the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) are as follows:
- State Governments / Union Territories
- State-Owned Corporations/State Government Undertakings/ Government Sponsored / Supported Organizations Fisheries Cooperative Federations (including FISHCOPFED etc.)
- Cooperatives, collective groups of fish farmers & fish produce groups
- Panchayat Raj Institutions/Self Help Groups (SHGs)/ NGOs
- SCs/STs/Marginal Farmers, Women & entrepreneurs, Self Help Groups and cooperatives of this, etc.
- Private companies/entrepreneurs
- Physically disabled
- Any other institution/entity to be decided by the Government
Eligible Investment Activities
Eligible Investment Activities of Fisheries and Aquaculture Infrastructure Development Fund (FIDF) is as follows:
- Establishment of Fishing Harbors
- Establishment of Fish Landing Centers
- Infrastructure for Mariculture and Advanced Inland Fisheries (Ocean farming, Cage Culture, etc.)
- Construction of Ice Plants (both for marine and inland fisheries)
- Development of Cold Storages (both for marine and inland fisheries)
- Fish Transport and Cold Chain Network Infrastructure
- Development of Modern Fish Markets
- Setting up of Brood Banks
- Development of Hatcheries
- Development of Aquaculture
- Modernization of State Fish Seed Farms
- Establishment of state of art Fisheries Training Centres
- Fish Processing Units
- Fish Feed Mills/Plants
- Establishment of Cage culture in Reservoirs
- Introduction of Deep Sea Fishing Vessels
- Establishment of Disease Diagnostic Laboratories
- Development of Mariculture
- Establishment of Aquatic Quarantine Facilities
- Any other innovative projects/activities designed to enhance fish production/productivity/value
Nodal Loaning Entities
- NABARD – National Bank for Agriculture and Rural Development Bank – State/UT government projects
- NCDC – National Cooperative Development Corporation – Cooperative Sector either through State Governments/UTs or directly to Eligible Cooperative Societies & Federations
- Scheduled Banks – All the Private Beneficiaries/ Private Entrepreneurs.
Quantum of Loan – FIDF
The Government will provide 80% of the estimated/actual project cost to the eligible applicant as part of the Fisheries and Aquaculture Infrastructure Development Fund (FIDF).
Margin Money
Beneficiaries are needed to contribute at least 20% of the project cost as margin money to get the Fisheries and Aquaculture Infrastructure Development Fund (FIDF).
- Contribution of margin money is not mandatory for States/UTs, State Entities implemented projects
- The concerned States/UTs, State entities, may decide the contribution and size of the margin money preferably on lines of RIDF, depending upon the availability of budget in their respective states/UTs.
Note:
The loan amount may be enhanced during project implementation if any occurred like natural calamity, technical compulsions, change in the SoRs, and any other unavoidable circumstances.
The loan amount will be enhanced within a reasonable time and not more than two years from the date of approval of the particular project.
Interest Subvention and Lending Rate of Interest
- Interest subvention of Up to 3% per annum will be provided for all entities for the development of identified fisheries-based infrastructure facilities.
- The lending Rate of interest is not lower than 5% per annum for all EEs for the development of identified fisheries-based infrastructure facilities.
The interest subvention as at 9.1 above also includes the cost of reduction of interest rate and uniform margin of 0.6% towards funds management charge and risk coverage costs to the NLEs.
The Department of Fisheries, Ministry of Fisheries, Animal Husbandry, and Dairying shall pay the interest subvention amount to NABARD/ NLEs till the due outstanding loan and interests are fully paid off.
Loan Disbursement
The loan lending period under the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) is 5 years from 2018-19 to 2022-23.
Projects wherein the first installment of loan is released before March 2023, will be eligible for the release of the remaining installments, within 2 year period i.e. before 31st March 2025 and all such releases are eligible for interest subventions under FIDF
Repayment Details
The maximum repayment period for the loan under the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) is 12 years inclusive of a moratorium of 2 years on repayment of principal.
NLEs should ensure that the maximum repayment period should not exceed 12 years from the date of first disbursement inclusive of a moratorium of 2 years on repayment of principal.
Formulation of Detailed Project Report (DPR)
The Detailed Project Reports (DPRs) / self Contained Proposals are mandatory for getting the Concessional financing under the FIDF.
Detailed projects especially for infrastructure and large magnitude projects shall be formulated based on the following:
- Identification of suitable site,
- Necessary engineering and socio-economic investigations and surveys
- Planning and designing of the facilities
- Model studies wherever required etc.
- The EEs shall submit the DPR/self Contained Proposal in triplicate copies
Documents Required
The documents to be submitted along with the Detailed Project Report are given here:
A detailed project report should consist of
- General Details about the project
- Land documents
- Detailed cost Estimates (As per the latest Schedule of Rates)
- Engineering Drawings and layout
- Quotations for all the machinery and equipment
- Technical Feasibility
- Economic Analysis and Viability
Submission of the Project Proposal
The complete DPRs/self-contained proposals for seeking concessional financing under the FIDF shall be submitted by the EEs at the following address:
- To Joint Secretary (Fisheries) Department of Fisheries,
- Ministry of Fisheries, A
- Animal Husbandry and Dairying,
- Krishi Bhawan,
- New Delhi-110001 15.2
A copy of the proposal shall also be submitted to the Nodal Implementing Agency(NIA) at the following address:
- The Chief Executive,
- National Fisheries Development Board,
- Department of Fisheries, Ministry of Fisheries,
- Animal Husbandry and Dairying, GoI, Pillar No:235,
- PVNR Expressway, SVPNPA Post,
Hyderabad-500052
NIA would receive the proposals from the concerned State Governments/UTs in respect of State/UT owned/implemented projects and directly from the other EEs (wherever the State/UT financial contribution is not involved in the implementation of the intended project under the FIDF).
Except for Private Entrepreneurs/Companies, all the other EEs shall route their applications through Nodal Departments of their respective State/UTC
The Nodal Implementing Agency (NIA) of NFDB will scrutinize, evaluate, and appraise the proposal submitted by us and place it before Central Approval and Monitoring Committee (CAMC) for approval.
CAMC will consider the proposals placed before it and accord in-principle approval to projects signifying approval for grant of interest subvention and recommend such approved proposals to the NLEs for considering sanction of loans.
The lending decision would be left to the Banks and NABARD as per their policy and regulatory guidelines. NLEs to send a copy of the loan sanction to CAMC and NIA for information.
