NABARD WAREHOUSE SUBSIDY SCHEME

 This article on NABARD WAREHOUSE SUBSIDY SCHEME is written by Pradyumn keshari student of SYLLB from Jitendra Chauhan College Of Law , Mumbai University with the guidance of Renowned Advocate Anoop kumar Vishwakarma , M.Com,LLB . This article acts as a comprehensive guidance on how to avail the subsidy benefits under NABARD WAREHOUSE SUBSIDY SCHEME.

INTRODUCTION 

In a country like India, where agriculture remains the backbone of the economy, efficient storage and post-harvest management of produce is crucial for minimizing losses and ensuring food security. Recognizing this need, the National Bank for Agriculture and Rural Development (NABARD) has introduced various subsidy schemes to promote scientific warehousing infrastructure across the nation. Among these, the NABARD Warehouse Subsidy Scheme stands out as a key initiative aimed at supporting the construction and modernization of rural godowns and warehouses. By offering financial assistance and credit-linked subsidies, the scheme empowers farmers, agri-entrepreneurs, cooperatives, and private investors to build storage capacities that not only reduce wastage but also enhance their market leverage. This article explores the objectives, benefits, eligibility, and application process of the NABARD Warehouse Subsidy Scheme in detail.

What is NABARD?

NABARD stands for National Bank for Agriculture and Rural Development.

It is an apex development financial institution in India, established on 12 July 1982 by an Act of Parliament. NABARD was created to promote sustainable and equitable agriculture and rural development through financial and non-financial interventions.

🔹 Key Functions of NABARD:

1. Refinancing:
   
• Provides credit to banks and other financial institutions for agriculture, rural development, and infrastructure projects
2. Development:
   
• Offers support and training to rural institutions like cooperatives and self-help groups (SHGs).
• Promotes innovations in rural areas through research and pilot projects.
3. Regulation:
   
• Regulates and supervises cooperative banks and regional rural banks (RRBs).
4. Infrastructure Funding:
   
• Funds rural infrastructure like roads, cold storages, warehouses, irrigation projects, etc.
5. Financial Inclusion:
   
• Supports programs aimed at improving rural credit delivery and digital banking access.

🔹 NABARD’s Role in Agriculture and Rural Economy:

• Acts as the chief funding agency for rural development.
• Partners with government agencies to implement subsidy schemes like the Warehouse Subsidy Scheme, Dairy Entrepreneurship Development Scheme, and others.
• Encourages rural entrepreneurship and sustainable practices in farming and allied sectors.

NABARD SUBSIDY SCHEME

NABARD (National Bank for Agriculture and Rural Development) offers a subsidy scheme for warehouse construction under the Agricultural Marketing Infrastructure (AMI) sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM). This initiative aims to enhance storage infrastructure in rural areas, thereby reducing post-harvest losses and improving farmers’ income. 

🏗️ Key Features of the NABARD Warehouse Subsidy Scheme

✅ Eligibility

The scheme is open to a wide range of entities, including:

 • Individuals, farmers, and groups of farmers/growers

 • Farmer Producer Organizations (FPOs) and Farmer Producer Companies (FPCs)

 • Partnership/proprietary firms, companies, and corporations

 • Non-Governmental Organizations (NGOs) and Self-Help Groups (SHGs)

 • Cooperatives and cooperative marketing federations

 • Autonomous bodies of the government, local bodies, and Panchayats

 • State agencies, including State Government Departments and state-owned corporations 

💰 Subsidy Details

 • General Category: Up to ₹37.5 lakh

 • SC/ST/Women Beneficiaries: Up to ₹50 lakh

 • The subsidy is back-ended and linked to institutional credit, meaning it is released after the project is completed and verified.  

🏢 Eligible Projects

The scheme supports the construction of:

 • Rural godowns and warehouses with a capacity of 50 to 10,000 metric tonnes

 • Silos for food grain storage

 • Associated facilities such as loading/unloading platforms, grading and sorting units, packaging units, and quality testing labs 

📅 Scheme Validity

The scheme has been extended and is valid up to 31st March 2026. Term loans should be sanctioned on or after 1st April 2023, and applications must be submitted within 60 days from the date of disbursement of the first installment of the term loan. 

📄 How to Apply

 1. Project Planning: Develop a detailed project report outlining the warehouse construction plan, cost estimates, and expected benefits.

 2. Loan Sanction: Obtain a term loan from a financial institution eligible for refinancing by NABARD.

 3. Application Submission: Submit the subsidy application to NABARD through the financing bank within the stipulated timeframe.

 4. Project Implementation: Construct the warehouse as per the approved plan.

 5. Inspection and Subsidy Release: After project completion, a joint inspection is conducted. Upon satisfactory verification, the subsidy amount is released to the borrower’s loan account. 

Here’s a step-by-step guide on how to apply for the NABARD Warehouse Subsidy Scheme under the Agricultural Marketing Infrastructure (AMI) sub-scheme of ISAM:

📝 Step-by-Step Application Process

✅ Step 1: Prepare a Detailed Project Report (DPR)

 • Prepare a comprehensive DPR for your warehouse project.

 • Include details like:

 • Type and capacity of warehouse (in MT)

 • Estimated cost

 • Proposed location

 • Land ownership documents

 • Cost-benefit analysis

⸻

✅ Step 2: Approach a Financial Institution

 • Approach a bank or financial institution that is eligible for NABARD refinancing.

 • Get the project and DPR appraised and apply for a term loan.

⸻

✅ Step 3: Sanction of Loan

 • Once the bank approves your project, it will sanction a term loan.

 • The sanction date must be on or after April 1, 2023 (for current scheme eligibility).

⸻

✅ Step 4: Submit Subsidy Application

 • Submit the subsidy application to the bank within 60 days of the first disbursement of the loan.

 • The bank forwards the proposal to NABARD along with:

 • DPR

 • KYC documents

 • Proof of land

 • Sanction letter

 • Disbursement proof

⸻

✅ Step 5: Project Implementation

 • Begin construction of the warehouse as per approved plan.

 • Maintain proper records, bills, invoices, and photographs during construction.

⸻

✅ Step 6: Completion & Inspection

 • After construction is complete, inform the bank.

 • A joint inspection is conducted by NABARD and the bank to verify:

 • Construction quality

 • Project completion

 • Adherence to approved plan

⸻

✅ Step 7: Subsidy Release

 • Once the inspection is cleared, NABARD releases the subsidy.

 • The subsidy is credited to your loan account (back-ended subsidy), reducing your loan liability.

⸻

📌 Documents Required:

 • KYC documents of applicant

 • Land ownership/lease documents

 • Sanction letter from bank

 • DPR

 • Photographs of the construction

 • Bills and invoices

 • Bank account details

Detailed explanation: 

In this NABARD Subsidy Scheme you can avail subsidy on Maximum 5,000 MT  Storage capacity of warehouse. In other word, if you are planning to construct 6000 MT Storage Capacity Godown then You can take the subsidy on up to 5000 MT storage Capacity. 

As per Scheme, NABARD has allowed the Maximum Permissible Cost of Construction is Rs. 3000/- Per MT. 

For example you are going to construct Godown of 5000 MT and you have incurred the cost of Rs. 4000/- Per MT.  Accordingly your total cost of construction has come of Rs. 2.00 Cr.  But for the purpose of Subsidy Calculation, it will be counts as of Rs. 1.50 Cr. (5000 MT * Rs. 3000 Per MT).

Rate of NABARD Subsidy:

For Registered FPOs, Panchayats, Women, SC, ST & Self Help Groups the rate of subsidy is 33.33% subject to Maximum of Rs 50 Lakhs.

For all other category of beneficiary the rate of subsidy is 25% subject to Maximum of Rs 37.50 Lakhs.

So if you want to construct warehouse you can take timely benefit of this NABARD Subsidy Scheme.

If you want to know more about this scheme or you want to know the procedure then share about your business plan on this link.

SPECIMEN DRAFTING OF (DPR) DETAILED PROJECT REPORT:

For Construction of Warehouse

Under NABARD Subsidy Scheme (AMI - ISAM)

(For Large Enterprise / Company - Higher Capacity Project)

1. Company Details

Name of Company: AgriStorage Pvt. Ltd.
Type: Private Limited Company
CIN: U01400UP2020PTC123456
Address: Plot No. 45, Industrial Area, Kanpur, Uttar Pradesh
Phone: +91-9876543210
Email: contact@agristorage.in
Authorized Signatory: Mr. Rajeev Mehra (Managing Director)
PAN: AACCA1234L

2. Project Location

Address: Village Rura, Tehsil Akbarpur, District Kanpur Dehat, Uttar Pradesh
Land Area: 5 acres (owned land)
Ownership: In company’s name (registered land deed attached)
Proximity:
- Mandi: 3 km
- State Highway: 1.5 km
- Railway: 8 km

3. Project Description

Project: Construction of High-Capacity Agricultural Warehouse with allied facilities
Total Storage Capacity: 5000 Metric Tonnes
Design: Pre-engineered building (PEB) with RCC flooring
Dimensions: Approx. 100m x 40m (with loading/unloading bays)
Additional Facilities:
- Grading and sorting area
- Packhouse and cold storage
- Weighbridge
- Laboratory and Quality Control Unit
- Solar-powered backup system
- Security fencing and CCTV surveillance

4. Project Cost Estimate (₹ in Lakhs)

Land Development & Site Work: ₹15.00 lakh

Main Warehouse Construction: ₹160.00 lakh

Cold Storage Unit: ₹60.00 lakh

Electrification & Solar Backup: ₹15.00 lakh

Weighbridge & QC Lab: ₹20.00 lakh

Office, Toilets & Utilities: ₹10.00 lakh

Security & Surveillance: ₹5.00 lakh

Miscellaneous & Contingency (5%): ₹14.25 lakh

Total: ₹299.25 lakh

5. Means of Finance

Promoter’s Equity: ₹99.25 lakh
Term Loan (Bank/NBFC): ₹200.00 lakh
Total: ₹299.25 lakh

6. Expected Benefits

- Long-term storage for grains, pulses, and perishables
- Aggregation and distribution hub for surrounding FPOs and cooperatives
- Reduction in post-harvest losses
- Generation of 25+ direct and indirect employment opportunities
- Improved rural supply chain efficiency

7. Implementation Schedule

Project Start: August 2025
Estimated Completion: March 2026
Duration: 8 months

8. Declaration

We hereby declare that the information provided above is true to the best of our knowledge and belief. The funds and subsidies received will be utilized strictly for the stated purpose under NABARD’s AMI scheme.

Authorized Signatory:  
Mr. Rajeev Mehra  
(Managing Director, AgriStorage Pvt. Ltd.)

Date: [Insert Date]