CENTRALLY SPONSOREDSCHEME OF NATIONALMISSION ON MEDICINAL PLANTS

NATIONAL MEDICINAL PLANTS BOARDDepartment of Ayurveda, Yoga & Naturopathy,Unani, Siddha & Homoeopathy (AYUSH)Ministry of Health & Family WelfareGovernment of India

OPERATIONAL

GUIDELINES

CENTRALLY SPONSOREDSCHEME OF NATIONAL

MISSION ON MEDICINAL PLANTS

OPERATIONALOPERATIONALOPERATIONALOPERATIONALOPERATIONAL

G U I D E L I N E SG U I D E L I N E SG U I D E L I N E SG U I D E L I N E SG U I D E L I N E S

NATIONAL MEDICINAL PLANTS BOARDDepartment of Ayurveda, Yoga & Naturopathy,

Unani, Siddha & Homoeopathy (AYUSH)Ministry of Health & Family Welfare

Government of India

Centrally Sponsored Scheme of National Mission onMedicinal Plants Operational Guidelines

Operational Guide Lines for Sanction of Project/Releaseof Credit Linked back Ended Subsidy For Post HarvestManagement under NMMP Scheme

Detailed Guidlines for Cultivation of DifferentMedicinal Plant Species under NMMP- 2011-12 & Onward (Aonla / Bael /Ashok/ Ashwagandha / Sarpgandha / Ghrit Kumari / Pipali /Shatavari / Tulasi /Giloe )

Operational Guidelines for Sanction of Project/Release OfcreditLinked back ended subsidy for Establishment of Model sndSmall Nurseries in Private Sector under NMMP

C o n t e n ts

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Centrally Sponsored Schemeof National Mission on Medicinal Plants Operational Guidelines

1. PREAMBLE

1.1 Medicinal Plants form the major resource baseof our indigenous health care traditions.Outreach and acceptability of AYUSH systems,both nationally as well as globally, is dependenton uninterrupted availability of quality plantbased raw material. More than 90% of thespecies used in trade continue to be sourcedfrom the wild of which about 2/3rd areharvested by destructive means.

1.2 Cultivation of medicinal plants, therefore, is keyto meeting the raw material needs of the A YUSHindustry besides offering opportunities forhigher levels of income, crop diversification andgrowth of exports. Indian exports of medicinalplants and herbs are mostly in the form of rawherbs and extracts and account for almost 60-70% of the current exports of herb all A YUSHproducts. During the year 2004-05, the Indianexports of Isabgol and Senna alone were of theorder of 40,000 metric tonnes largely in rawform. Export of value added item requiresproduct development, setting up of processingfacilities, quality assurance and brandpromotion. Increasing concerns of unsustainablecollection from the wild, disappearance of certainspecies on the one hand and concerns of qualityand standardization on the other make itimperative to promote cultivation of speciescritical to AYUSH systems of medicine throughappropriate financial incentives, policy,infrastructural and marketing support in asynergistic manner.

2. NEED AND JUSTIFICATION

2.1 With more than 95% of the A YUSH productsbeing plants based, the raw material base needsto be shifted from forests to the cultivated sourcefor its long term sustainability.

2.2 The global trade requires products ofstandardized phyto-chemical composition freefrom heavy metals, and other toxic impuritiesand certified to be organic or Good AgriculturalPractices (GAP) compliant. This is possible onlythrough cultivation route where chain of custodyregime is easier to maintain.

2.3 Indian share of the world herbal trade is less than1 %. Even here, the export of herbal products islargely in the form of raw herbs with 2/3rd ofthe export basket comprising raw herbs. Thisneeds to change considering the US$120 billionherbal market. It is for this reason that thescheme provides for support to value additionand processing linked to the clusters ofcultivation of selected plants that are in demandby the AYUSH industry and export.

3. NATIONAL MEDICINAL PLANTSBOARD

3.1 The National Medicinal Plants Board (NMPB)was set up under a Government Resolutionnotified on 24th November 2000 under theChairmanship of - Union Health & FamilyWelfare Minister. The objective of establishingthe Board was to establish an agency whichwould be responsible for coordination of allmatters relating to medicinal plants, includingdrawing up policies and strategies forconservation, proper harvesting, cost- effectivecultivation, research and development,processing, marketing of raw material in orderto promote and develop this sector. This wasconsidered necessary as medicinal plants as asubject is handled by different Ministries[Departments like Environment & Forests,Agriculture, Science & Technology andCommerce. The Board, therefore, has thefunction of co-ordination with Ministries/

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Department/Organizations /State/UT Govern-ments for development of medicinal plants ingeneral and specifically in the following fields: -

i) Assessment of demand/supply position relatingto medicinal plants both within the country &abroad

ii) Advise concerned Ministries/Departments/Organisations/State/UT Governments on policymatters relating to schemes and programmes fordevelopment of medicinal plants

iii) Provide guidance in the formulation ofproposals, schemes and programmes etc. to betaken by agencies having access to land forcultivation and infrastructure for collection,storage transportation of medicinal plants

iv) Identification, inventorization andquantification of medicinal plants

v) Promotion of ex-situ and in-situ cultivation andconservation of medicinal plants

vi) Promotion of co-operative effort amongcollectors and growers and assisting them tostore, transport and market their productseffectively

vii) Setting up of database on medicinal plants,dissemination of information and facilitatingprevention of patents on plants used intraditional systems

viii) Matter relating to import/export of rawmaterial, as well as value added products eitheras medicine, food supplements or as herbalcosmetics including adoption of bettertechniques for marketing of products to increasetheir reputation for quality and reliability in thecountry and abroad

ix) Undertaking and awarding scientific,technological research and cost-effectivenessstudies.

x) Development of protocols for cultivation andquality control

xi) Encouraging the protection of Patent Rights andIPR

3.2 In terms of the Cabinet Resolution of November24,2000 and the Cabinet Committee on

Economic Affair’s approval communicated videCabinet Secretariat’s O.M. No. CCEA/23/2008(1) dated 25th July, 2008, the composition of theBoard is as under:

(a) Minister of Health & Family Welfare - Chairman(b) Minister of State, Health and Family Welfare- Vice

Chairperson(c) Secretaries - Ministries/Departments of AYUSH,

Environment & Forests, Scientific & IndustrialResearch, Bio-technology, Science & Technology,Commerce, Industrial Policy & Promotion,Expenditure, Agriculture & Cooperation,Agricultural Research & Education, Tribal Affairs,Tourism, Development of North Eastern Region.

(d) Four nominated members having expertise inthe field of medico-ethno-botany,pharmaceutical industry of ISM, marketing andtrade, legal matters and patents

(e) Four nominated members representingexporters of ISM & H drugs, NGOs responsiblefor creating awareness and increasingavailability of medicinal plants, growers ofmedicinal plants, research and developmentindustry groups in the area of medicinal plants

(f) Two nominated members representingfederations/co-operatives dealing withmedicinal plants

(g) One member from Research Councils ofDepartment of AYUSH, one member fromPharmacopoeia Laboratory of IndianMedicines/ Homoeopathic PharmacopoeiaLaboratory, Ghaziabad and two membersrepresenting State Governments (by rotationevery two years)

(h) Chief Executive Officer as Member Secretary inthe rank of Joint Secretary to the Government ofIndia

3.3 The National Medicinal Plants Board (NMPB),has been implementing a Central Sector Schemeof “Setting up Medicinal Plants Board” during the10th Plan. During the 11th Plan, however, theCentral Sector Scheme has been modified to givesharper focus on promotional activities like

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resource documentation, in-situ conservation,research and development, ex-situ conservationof rare and endangered species, support to jointForest Management Committees for valueaddition/warehousing, capacity building andtraining of primary collectors and forest dwellersin good collection and sustainable harvestingpractices etc. The scheme, renamed as the"Central Sector Scheme of Conservation,Development and Sustainable Management" hasbeen approved with an 11th outlay of Rs. 321.30crores. However, the component relating tocommercial cultivation has been taken out of thepre-revised Central Sector Scheme andformulated into a new scheme which seeks tointegrate cultivation with pre and post harvestactivities, like, development of nurseries forquality planting material, cultivation of speciesin demand by the ASU industry, support for postharvest management, marketing, improvementof marketing infrastructure. organic/GAPcertification, quality assurance and cropinsurance. These components have beenincorporated in a new Centrally SponsoredScheme of National Mission on Medicinal Plants.

4. NATIONAL MISSION ONMEDICINAL PLANTS

4.1 The Centrally Sponsored Scheme of "NationalMission on Medicinal Plants" has been approvedwith a total outlay of Rs. 630 crores forimplementation during the 11th Plan. During the11th Plan, the Central Government's contributionwill be 100%. During the 12th Plan, however, theState Government's contribution is proposed tobe suitably enhanced, based on the mid-termreview of the scheme. The scheme is proposedto be implemented in a mission mode toorganically link different components under thescheme and thus give a strategic push to theSector during the 11th Plan

5 MISSION OBJECTIVES

5.1 Support cu cultivation of medicinal plants whichis the key to integrity, quality, efficacy and safety

of the AYUSH systems of medicines byintegrating medicinal plants in the farmingsystems, offer an option of crop diversificationand enhance incomes of farmers.

5.2 Cultivation following the Good Agricultural andCollection Practices (GACPs) to promotestandardization and quality assurance and therebyenhance acceptability of the A YUSH systemsglobally and increase exports of value added itemslike herbal extracts, phyto-chemicals, dietarysupplements, cosmeceuticals and A YUSH products.

5.3 Support setting up processing zones/clustersthrough convergence of cultivation,warehousing, value addition and marketing anddevelopment of infrastructure for entrepreneursto set up units in such zones/clusters.

5.4 Implement and support certification mechanismfor quality standards, Good Agriculture Practices(GAP), Good Collection Practices (GCP), andGood Storage Practices (GSP).

5.5 Adopt a Mission mode approach and promotepartnership, convergence and synergy amongstake holders involved in R&D, processing andmarketing in public as well as private sector atnational, regional, state and sub state level.

6 MISSION STRATEGY

6.1 The Mission would adopt an end-to-endapproach covering production, post harvestmanagement, processing and marketing. Thiswill be achieved by promoting cultivation ofmedicinal plants in identified clusters/zoneswithin selected districts of states having potentialfor medicinal plants cultivation and to promotesuch cultivation following Good Agriculture andCollection Practices (GACPs) through synergisticlinkage with production and supply of qualityplanting material, processing, quality testing,certification, warehousing and marketing formeeting the demands of the AYUSH industry andfor exports of value added items.

6.2 The Mission also seeks to promote medicinalplants as a crop alternative to the farmers andthrough increased coverage of medicinal plants

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and with linkages for processing, marketing andtesting, offer remunerative prices to thegrowers/ farmers. This will also reduce pressureon forests on account of wild collection.

6.3 Mission seeks to adopt communication throughprint and electronic media as a strongcomponent of its strategy to promote integrationof medicinal plants fanning in the agriculture/horticulture systems with emphasis on qualityand standardization through appropriate preand post harvest linkages.

6.4 Promote and support collective efforts atcultivation and processing in clusters throughSelf Help Groups, growers cooperatives/associations, producer companies and suchother organizations with strong linkages tomanufacturers /traders and R&D institutions.

7 MISSION STRUCTURE

7.1 The Mission will be located in the NationalMedicinal Plants Board (NMPB), Department ofAYUSH. The Mission will have a two tier structureat National and State level.

NATIONAL LEVELNational Medicinal Plants Board

7.2 The National Medicinal Plants Board (NMPB)will function as the General Council of theMission under the Chairpersonship of UnionMinister of Health and Family Welfare.

Standing Finance Committee (SFC)

7.3 The Board has a Standing Finance Committee(SFC), which is headed by Secretary (AYUSH).This committee will act as the ExecutiveCommittee of the Mission and will have thefollowing members:

1. Secretary (AYUSH) -Chairperson

2. Additional Secretary and Financial Adviser,Ministry of Health & Family Welfare

3. Joint Secretary or officer of equivalent rank,Deptt. of Science and Industrial Research

4. Joint Secretary or officer of equivalent rank,Deptt. of Biotechnology

5. Joint Secretary or officer of equivalent rank,Deptt. of Agricultural Research and Education

6. Joint Secretary or officer of equivalent rank,Ministry of Environment & Forests

7. Joint Secretary or officer of equivalent rank,Ministry of Commerce

8. Joint Secretary or officer of equivalent rank,Ministry of DONER

9. Representative of Secretary, North EasternCouncil, Shillong

10. Joint Secretary, Department of AYUSH11. Representative of Ayurvedic Industry12. Representative of Exporters of medic in all

herbal products13. Representative of Growers Associations/

Federations14. Two domain experts to be nominated by

Secretary (AYUSH)15. Chief Executive Officer, NMPB- Ex-officio

Member Secretary

7.4 The chairman of the SFC will have authority toinvite, as special invitees, representatives fromorganisations engaged in R&D, quality control,planning and other related disciplines inmedicinal plants sector.

7.5 The NMPB will provide the necessary supportto both SFC and the Mission. The Chief ExecutiveOfficer, NMPB who is of the rank of jointSecretary will function as the Mission Director.The CEO has been delegated the powers of theHead of the Department and would, therefore,be able to carry out the Mission mandate and alsoimplement and monitor the action plans/proposals approved by the SFC.

7.6 The Standing Finance Committee (SFC) willhave the following functions:

(i) To oversee the activities of the Board andapprove its annual budget.

(ii) To consider and approve any financialproposal which is to be included forexpenditure in the Budget.

(iii) To consider and approve any proposal forincurring expenditure.

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(iv) To consider and recommend all proposalsfor creation of new posts.

(v) To consider and allocate resources amongthe states and under different componentsof the scheme.

(vi) To consider and approve projects underexisting pattern of assistance.

(vii) To consider and approve components ofindividual projects for which cost/subsidynorms have not been prescribed.

(viii) The SFC shall also monitor the overallsubsidy being disbursed under the schemeand in particular monitor the cap of30% forcultivation subsidy.

(ix) Any other matters that the Board may referto it

Technical Screening Committee (TSC)

7.7 Secretary (A YUSH) will have the powers toconstitute Technical Screening Committees forscrutiny of project proposals received underdifferent components under the scheme. Thecommittees will comprise of domain experts inthe relevant field and may also constitute one ormore of the following organizations /Ministries:

(i) Representative from National HorticultureBoard

(ii) Representative from ICAR(iii) Representative from CSIR(iv) Representative from Department of AYUSH(v) Representative of Secretary, North Eastern

Council, Shillong(vi) Domain experts nominated by Secretary

(AYUSH) - Two(vii) Representative from National Medicinal

Plants Board-Member Secretary

STATE LEVEL

State Level Steering Committee for the Mission

7.8 The State level Steering Committee will be headedby Addl Chief Secretary/ Agriculture ProductionCommissioner/Development Commissioner atthe State level and will include:

(i) Member Secretary of State Medicinal PlantsBoard

(ii) Principal Secretary/ Secretary Health/AYUSH of the State Government

(iii) Principal Secretary/ Secretary Horticulture/Agriculture of the State Government

(iv) Principal Secretary/Secretary IndustriesDepartment of the State

(v) Representative from National MedicinalPlants Board

(vi) Representative (s) from CentralGovernment Institution(s) !FacilitationCentres

(vii) PCCF or his representative in the State(viii) Domain experts in the field of Medicinal

Plants (two)(ix) Mission Director, State Horticulture Mission

Selection of agency to implement the NationalMission on Medicinal Plants in States

7.9 The State Government may designate the MissionDirector, State Horticulture Mission as theMember Secretary of the State level SteeringCommittee as well as the State implementationagency. The funds from NMPB will be releasedthrough the SHM in such cases and separateaccounts maintained. In States, which are notcovered under the National Horticulture Mission,the State Government may designate the StateAgriculture Department as the nodal departmentfor implementation. The funds in such cases can,however, be released through the State MedicinalPlants Board or the State Health Societies toenable timely flow of funds for implementationof the projects under the Mission. The Stategovernment shall choose the most efficient andeffective agency available in the State toimplement this Mission

7.10 The State Horticulture Mission, if designated asthe State level implementation agency by the StateGovernment, will implement the scheme incoordination with the Agriculture, AYUSH,industries department and SMPB and would haveto be registered as a Society. It should also have

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the functional autonomy to receive funds andimplement the scheme. The Panchayati RajInstitutions would be fully involved in identifyingthe agency for implementation at the district leveland in identification of clusters and organizinggrowers into SHGs/cooperatives/ associationsand producer companies.

7.11 The Mission will have a strong technicalcomponent. There shall be a technical screeningcommittee of domain experts to appraise theproposals / action plans received from the StateGovernments who will advise, appraise andrecommend activities to be supported under thescheme for giving sharp focus to the objectivesof the scheme to the SFC. There will also be aTechnical Screening Committee at the State levelconsisting of domain experts to appraise theproposals. The States will have the flexibility toadopt the appropriate model viz. Cooperatives,Federations, Forest Development Corporations,Joint Sector Companies for processing,warehousing, marketing etc. Wherever possiblelinkages will be developed with StateHorticulture Mission in identification of clustersfor cultivation and development of infrastructureof Post Harvest Management facilities likewarehouses, marketing yards, drying sheds,testing labs and setting up of processingindustries. The State Level implementationagency for Mission will have the followingfunctions:

i) Prepare perspective and annual action planwith the technical support from a "TechnicalSupport Group" at the state level withmembers from State Agriculture Universities,Facilitation Centres, ICAR, ICFRE, CSIRInstitutions, and other experts in the field tooversee its implementation.

ii) Receive funds from the National MedicinalPlants Board, the State Government and othersources for carrying on the activities,maintain proper accounts thereof and submitutilization certificate to the concernedagencies.

iii) Release funds to the implementingorganizations like SHGs, cooperatives ofgrowers, growers associations, producercompanies responsible for different clustersand oversee, monitor and review theimplementation of the programmes.

iv) Organise base-line survey and feasibilitystudies in different parts (District, sub-District, or a group of Districts) to determinethe status of medicinal plants, its potential anddemand, and tailor assistance accordingly.Similar studies would also be undertaken forother components of the programmes.

v) Assist and oversee the implementation of theScheme in different clusters selected withreference to their agro-climatic suitability forgrowing medicinal plants through farmers,Societies, NGOs, Growers, Associations, Self-Help Groups, State Institutions and othersimilar entities. The State implementationagency shall also be responsible formobilizing growers to form SHGs/Cooperatives/ Federations, producercompanies and financial assistance will beavailable for promoting these grass levelorganizations, which may include the trainingand other incidental expenses like engaginganimators etc.

vi) Organise workshops, seminars and trainingprogrammes for all interest groups/associations at the State level, with help of theFacilitation Centres set up in State AgricultureUniversities and ICAR/ICFRE/CSIRInstitutions any other organisations havingtechnical expertise.

7.12 National Medicinal Plants Board (NMPB) has setup Facilitation Centres (FCs) in the StateAgriculture Universities and R&D Institutions ofMinistry of Science & Technology (CSIR/DBT) toact as a service window to growers/farmers andentrepreneurs on technology transfer, capacitybuilding and training, extension and marketinformation on medicinal plants. The Stateimplementation agency should work in close

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coordination with the Facilitation Centres (FCs)for technical handholding' under the Mission.More such centres can be set up, if required infuture. The list of existing Facilitation Centres(FCs) is given at Annexure- V.

7.13 At the district level, the Mission will becoordinated by the District Mission Committee(DMC) of the National Horticulture Mission inStates where implementation is through theHorticulture Department. If implementedthrough the Agriculture Department, the DistrictMission Directorate will be registered as asociety with Deputy Director (Agriculture) /District Agriculture Officer as its head. TheDistrict Mission Committee (DMC) will beresponsible for project formulation andmonitoring. The DMC will have representativesfrom concerned line Departments, Grower'sAssociations, Marketing Boards, Industries,Departments, Self Help Groups (SHGs) and otherNon-Governmental Organisations as itsmembers. The District Planning Committee andPanchayati Raj Institutions will be integrated/involved in implementation of the programmeas per the choice and discretion of the StateGovernment.

7.14 The State implementation agency may alsoconsider implementing the scheme in selectedclusters by directly involving reputed NGOs,cooperatives, State government undertakings,growers associations, producer companies, selfhelp groups without the requirement of routingthe proposals through district levelimplementation agency. In that case, the projectreport of different organizations/clusters will beconsolidated into the State Action Plan andsubmitted to the NMPB for its consideration.Organizations like Krishi Vigyan Kendras (KVKs)and Agriculture Technology ManagementAgencies (ATMAs) could also be involved inplanning, implementation and monitoring at thedistrict level and below for selected clusters. Insuch cases, the funds can also be released to thecluster level implementation agency directly

without routing them through the District levelagency.

7.15 The institutional arrangement for implementingthe major activities under the Mission at thecluster/zone level i.e. technology dissemination,quality planting material, cultivation, post harvestmanagement and marketing will vary dependingupon the organizations/institutions present in theState covered under the programme. All theactivities related to cultivation, processing,marketing, quality assurance and certification indifferent clusters will be consolidated at the Statelevel for better synergy between the Missionactivities. State Governments are free to choosetheir own model, create or orient existinginstitutions to carry forward the objectives of theMission in a holistic manner.

Linkages with other Schemes

7.16 Although the Scheme covers all the activities thatare required to be supported for a successful endto end medicinal plants based agri-business,there may still be some components which canbe dovetailed into the Action Plan from otherSchemes of the other Ministries/ Departmentsand State Governments. For instance,components like micro irrigation, fertigation,construction of irrigation tanks, setting updemonstration plots which are not a part of thisscheme may be dovetailed from schemes ofMinistries/ Departments concerned. This willensure a convergence of cultivation with pre andpost harvest management activities in its totality.

8 MISSION INTERVENTIONS

Support Cultivation of Medicinal Plants

8.1 Cultivation of medicinal plants has not taken offin the country, as the raw material sourced fromthe wild is available at cheaper rates even as ithas deleterious effect on their wild populations.To make cultivation lucrative, it is necessary tosupport the effort - both technically andfinancially. A programme to support cultivationthrough subsidy was implemented during the10th plan period. Whereas the programme has

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generally resulted in encouraging cultivation ofmany species of conservation concern and thosein high demand by the AYUSH industry, a numberof other species used in A YUSH medicinecontinued to be sourced from the wild. Thescheme seeks to support cultivation of more andmore species critical to AYUSH systems. Thesubsidy available for various medicinal plants hasbeen revised so as to direct subsidy towardscultivation of the species required by AYUSHsystems and those of conservation concern.

8.2 The Cultivation is proposed to be done inconjunction with the processing facilities andmarkets available for medicinal plants. This isproposed to be done in clusters identified by StateGovernments through individuals, Self HelpGroups, Cooperative Societies of medicinalplants growers. Preference to cultivation inclusters through SHGs, growers, cooperatives,producer companies over individual centriccultivation will ensure targeting of subsidy to thesmall and marginal farmers. Therefore, smalland marginal fanners will be organised into SelfHelp Groups and cooperative societies ofmedicinal plants growers or as producercompanies to enable them to take up medicinalplants cultivation, which presently they areunable to do. Financial assistance on project basiswill also be provided to State implementationagency for mobilizing the Growerscooperatives/ Federations as well as forpreparation of cluster specific project reports/business plans to be eventually consolidated intoState Action Plan.

8.3 Project for cultivation must clearly spell out thesource of planting material/seed. Only identifiedseed source or nurseries supplying certifiedplanting material will be eligible to supplygermplasm to growers seeking assistance underthe scheme. The business plan/project report foreach cluster as well as the Action Plan for theState should cover the list of organizations(public sector or private sector) for qualityplanting material together with the technical

details of their capacity, infrastructure, speciesproposed to be raised, their location and thefinancial outlays.

8.4 Though most of the cultivation is proposed tobe taken up in States where processing zones/clusters will be set up, other States/Districtswhere clusters for cultivation are identified withproper linkage with manufacturers /markets willalso be provided support for cultivation throughgrowers, SHGs, Cooperative Societies ofmedicinal plants growers, producer companiesand corporates.

8.5 The list of prioritized plants for cultivation forwhich subsidy @ ranging from 20% to 75% willbe admissible is indicated at the Annexure- II.The Action Plan must cover the list of species,the proposed area to be brought undercultivation under each subsidy groups (of 20%,50% and 75%) and the financial outlay proposedfor cultivation component. The cost norms for57 species are indicated at Annexure -I. For theremaining species, the cost norms would beconsidered at the time of approval of the ActionPlan after consultation with the organizationsNMPB may consider appropriate.

Establishment of Seed Centres and nurseries forSupply of Certified Planting Material

8.6 Cultivation of medicinal plants and eventualreturns from such cultivation is largelydependent upon the quality of planting materialused. However, as of now, there is no mechanismof providing certified germplasm or producingcertified planting stock on commercial scale.

8.7 It is proposed to establish Seed Centres withResearch Wing of State Forest Departments/Research Organisations/State AgricultureUniversities to stock and supply certifiedgermplasm of priority medicinal plant species forcultivation. Production and supply of seeds andquality planting material through NGOs andCorporates will also be permitted provided thequality can be certified through an accreditedcertification agency.

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Model Nurseries

8.8 To meet the requirement of quality plantingmaterial for cultivation assistance would beprovided for new nurseries uinder the public aswell as private sector. Infrastructure for modelnurseries would include the following:

i) Mother stocks block maintenance to protectfrom adverse weather conditions

ii) Raising root stock seedlings under net houseconditions

iii) Propagation house with ventilation havinginsect proof netting in the sides and foggingand sprinkler irrigation systems

iv) Hardening/maintenance in insect proof nethouse with light screening properties andsprinkler irrigation systems

v) Pump house to provide sufficient irrigationand water storage

vi) Soil sterilization steam sterilization systemwith boilers

8.9 A model nursery should on average have an areaof about 4 hectares and would Cost Rs. 20 lacsper unit. The model nurseries which would beestablished under the Public sector will beeligible for 100% assistance of a maximum of Rs.20.00 lakhs per unit. The model nurseries wouldproduce 2- 3 lakhs plants depending upon theinput costs and time required for the plant to befit for planting. It would be the responsibility ofthe nurseries to ensure quality of the plantingmaterial. For model nurseries in the privatesector the assistance will be 50% of the costsubject to a maximum of Rs. 10 lakhs per unit.

Small Nurseries

8.10 Small nurseries, covering area of about onehectare, will have infrastructure facilities to hold60,000 to 70,000 plants. These plants will be.maintained for a period of approximately 9-12months. Infrastructure for the small nurserieswill consist of a net house. Micro sprinklerirrigation system will be provided in the nethouse. The nurseries will also have provision forsolar sterilization of soil media to meet the

contingency requirement of containers/ transferfrom small to big containers.

8.11 Small nurseries would cost Rs. 4.00 lakhs perunit. The assistance will be to the extent of 100%of the cost for the Public sector and 50% of thecost Subject to a ceiling of Rs. 2.00 lakhs for thenurseries in the private sector. The smallindustries would produce at least 60,000 plantsper year.

8.12 It would be the responsibility of the nurseries toensure quality of the planting material throughcertification for which independent certificationagencies will be identified and notified by NWPB.The private nurseries will also be encouraged tomove towards self accreditation also. Thenurseries could be multi-crop or crop specificdepending upon the requirements of plantingmaterial in the locality/project area. Hence, thetype of nursery proposed to be establishedshould be clearly indicated in the Action Plan. TheAction Plan should also contain an assessmentof the existing nurseries, the number of plantingmaterial being produced, crop wise and theadditional requirement of nurseries.

Support for Medicinal Plant Processing andPost Harvest Management including Marketing

8.13 It is estimated that as high as 30% of the rawmaterial reaching the manufacturers is of poorquality and is, therefore, rejected. Cultivation ofmedicinal plant, therefore, needs to be supportedwith infrastructure for ware housing, drying,grading, storage and transportation. Thesefacilities area essential for increasing; themarketability of the medicinal plants, addingvalue to the produce, increasing profitability andreducing losses. APEDA has set up Agri ExportZones (AEZs) for medicinal and aromatic plantsin the states of Kerala and Uttaranchal. Based onthe experience gained in implementation of AEZson medicinal plants in these stares, the Schemeseeks to support infrastructure for processingand post harvest management in the differentregions of the country in identified clusters/zones which are well endowed with

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infrastructure of marketing/trading centres,have tradition of medicinal plants as a farmingoption and has R&D institutions/SAUs fortechnology dissemination and capacity building.While the AEZs scheme implemented by APEDAhas primary focus on exports, the presentscheme seeks to add value to the medicinal plantscultivated/ collected and meet large domesticrequirement of the A YUSH industry. Additionally,the species having export market would also becovered with a view to increasing share of valueadded items in the exports of herbal/AYUSHproducts. The species targeted for export shouldbe finalized after assessing the export marketfor such species. The illustrative list of facilitiesto be created in the post-harvestinginfrastructure is as follows:

i) Drying yards:- Drying yards to accomplishthe primary task of drying the products inhygienic conditions. In addition, cleaning andgrading infrastructure is an essential activityto be linked to drying to increase the shelflife and the market price of herbs. Since herbshave to be dried in shades, drying yards withshade net provision or facilities for lowtemperature drying will have to to be created.

ii) Storage godowns: The storage godowns isexpected to receive produce from nearbydrying yards. The storage godowns as a linkbetween drying yards and processing units.Storage godowns have to be adequatelyventilated and set up at strategic locations.The storage godowns and drying yards haveto be located in such a manner that they arenot very far from the farm lands and cater tothe identified clusters of cultivation.

iii) Processing units- Processing unit based onthe medicinal plants grown in the clusterswould have to he set up, some of which willbe plant specific. The processing unit shouldpreferably be set up within the existingindustrial estates, which have the necessaryinfrastructure of power, road network andlinkages with rail head/sea ports.

iv) Quality testing of raw materials-Laboratories for testing of raw material andvalue added items and their certification fordomestic consumption as well as exportswould be done through the existingaccredited laboratories. In the absence ofsuch laboratories in the zone/ clusters newlaboratories will be set up, preferably in a PPPMode

v) Marketing:- The main objectives ofproviding assistance under this componenntare :-(a) To strengthen infrastructure of wholesale

markets, agriculture mandies formarketing of medicinal plants.

(b) To set up herbal mandies wherever theydo not exist.

(c) To strengthen linkages between farmersand industry/traders.

(d) To disseminate in formation on market,prices, market trends to enable farmers inselection of appropriate medicinal crops.

The components admissible for assistance are:

(a) Market Promotion:- The programmes formarket promotion like media promotion,participation in exhibitions, trade fairs, hiringdisplay facilities are project based but limitedto Rs. 10 lakhs for each cluster will be eligiblefor 50% assistance under market promotion forthe herbs/raw material produced by the Cluster.

(b) Market Intelligence:- The Action Plan mayinclude collection, compilation anddissemination of market intelligence to growers.Any other innovative activity relating to marketintelligence may also be supported under thiscomponent. The assistance for this componentwill be project based.

(c) Buy- back Interventions:- The buy backinterventions in the form of buyer-sellermeetings, flexible and innovative marketingarrangements, creation of revolving fund atCluster level for marketing; of medicinal plants,and mobilization assistance to SHGs,

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cooperatives, producer companies could beprovided under this component of the scheme.Any other activity which seeks to strengthenmarketing and institutionalize linkage betweenbuyer and seller may be included under thiscomponent. The assistance will be project based.

(d) Market Infrastructure:- Under this componentherbal mandies that are proposed to be set up atthe village level can be given assistance up to Rs 10lakhs. Assistance will also be available forupgradation/creation of infrastructure in theagriculture mandies for trading of medicinal plantswherever such mandies exist at the village level.Similarly, assistance will be provided to District/State agriculture mandies for creating andupgrading physical infrastructure for trading ofmedicinal plants. Assistance will also be availablefor setting up herbal mandies at State/District level.The level of financial assistance for rural mandiesthrough village bodies/SHGs/ Cooperatives will beRs. 10 lakhs and For State/District level mandiesupto a maximum of Rs. 2 crores.

vi) Quality testing, certification and insurance

(a) Quality Testing:- The quality testing ofherbs/medicinal plants produced by growersis key to realization of remunerative prices.The growers will be entitled to 50% of thetesting charges subject to a maximum of Rs.5000 if the herbs/ medicinal plants are testedin AYUSH /NABL accredited laboratories.

(b) Certification:- Organic and GAP certificationare the key to ensuring quality of themedicinal plants/herbs and can securebenefits to farmers through better prices fortheir produce and to consumer by way ofbetter quality of herbal/AYUSH products. Thecertification charges will be admissible on agroup basis to the limit of Rs. 5 lakhs for 50hectares of cultivation in groups/clusters.

(c) Crop Insurance:- Medicinal plants are a newactivity under farming and, therefore, farmersneed to be covered with crop insurance. Thiscomponent seeks to provide assistance

towards payment of 50% of the premium forparticular crop. The premium and the detailsof the scheme will be finalized in consultationwith Agriculture Insurance Corporation.

8.14 Detailed project report/business plan will beprepared for each cluster through consultancyfirms, which have the core competence in thisarea, so as to establish synergy between otherschemes of the Department of AYUSH and thoseof other Ministries before implementation of thescheme. The State implementation agency for theMission will be permitted to engage ProjectManagement Consultants for preparing businessplans/detailed project report for clusters selectedfor support under the Scheme. In areas outsidethe designated zones/clusters, support forcreating infrastructure like packing, sheds,processing units, testing labs will also beprovided if linked to clusters of cultivation. Allthe project,., will be entrepreneur driven basedon proper business plan and market surveys. Thedetailed project/business plan for differentclusters will be consolidated into the State ActionMan to be submitted to NMPB. The Stateimplementation agency will also be permitted toengage project management consultant.

9. ELIGIBILITY

9.1 For Cultivation;

i) Growers, farmers, cultivators

ii) Growers Associations, Federations, Self HelpGroups, Corporates, growers cooperatives

9.2 For Processing and Post HarvestManagement Infrastructure

i) (Government /Non Governmentorganizations, federations, Cooperatives,Industry with R& D unit duly registered andrecognized as such by the appropriateauthority with a minimum three years ofexperience in the field

ii) Entrepreneurs, industries etc.iii) NABL accredited laboratoriesiv) R & D institutions, & Universities

12

10. PATTERN OF FINANCIALASSISTANCE

For cultivation:

10.1 Selection and prioritization of plant species forfinancial assistance under the schemes of NMPBwould have to be based on demand in thedomestic and international markets, theiravailability in the wild and their conservationstatus (critically endangered, threatened,vulnerable etc.). Also, the quantum of subsidyshould be different for trees, which have longgestation period as opposed to crops that areannuals, bi-annuals and perennials, which startyielding after 1-2 years. The Go0st norms ofplantations as applicable now are indicated inAnnexure-I. The list of plants for cultivationtogether with the subsidy admissible for eachcategory of plants is at Annexure-II.

10.2 There are other species like Guggal, Ashok, Arjun,Bael, Hard, Beheda, Nagkesar, Aonla which havelong gestation period and, therefore, will requiresupport during the gestation period. Also, thereare species which are on CITES Appendix I andII, Schedule VI of Wildlife (Protection) Act.negative list of plants for export and plantspresently imported which need to be supportedthrough cultivation.

The pattern of subsidy will be a graded patternof financial assistance as detailed below:

i) 75% subsidy for growing of species of plantswhich are included in (CITES list, schedule VIof Wildlife Protection Act and negative list ofexports and are highly endangered

ii) 50% subsidy for cultivation of medicinalplants where sources, of supply are criticallydeclining and are long gestation.

iii) 20% subsidy for cultivation of other speciesneeding support.

10.3 The overall weighted average of subsidy will,however, be kept within 30% while preparingaction plan for the State and identifying plants tobe supported under the scheme. The list of93

plants is not exhaustive and more plants may beadded to the list based on demand in trade, afterobtaining concurrence of Department ofExpenditure, Ministry of Finance

10.4 The subsidy for nursery and plantation is backended credit linked with 20% credit component.However, credit requirement in case ofcooperatives, corporates, Govt. companies, SHGsand Trusts may not be insisted upon if theseorganizations have surplus funds supported withbank certificates or are otherwise financiallysound

For Processing facilities and infrastructuralsupport:

10.5 Financial assistance @ 25% of the project costlimited to a maximum of Rs. 50 lakhs will beavailable as back ended subsidy for setting up ofvalue addition and processing unit, like a solventextraction/distillation unit, for production ofvalue added items. 100% financial assistancelimited to Rs. 10 lakhs each for constructingdrying sheds and storage godowns as an adjunctto cultivation cluster will be admissible each ifset up by SHGs/ Cooperatives of medicinal plantsgrowers. Assistance for this will be limited to50% if set up by individuals or the entrepreneurs.

10.6 Financial assistance @ 30% of the project costsubject to a maximum of Rs. 30 lakhs will beadmissible for setting up of quality test labs fortesting of raw material and value added productsin a PPP mode on the basis of an MoU betweenorganization, State Implementation Agency andNMPB. Additionally, financial assistance formarket promotion through the media,participation in exhibitions, trade fairs,developing and hiring of display facilities will beavailable @ 50% of the project cost limited toRs. 10 lakhs.

10.7 The subsidy for value addition, processing andtesting facilities is back ended. However,requirement of credit will not be necessary, ifthe organization, cooperatives, Trusts,corporates, PSUs have surplus funds supported

13

with bank certificates and the organizations areotherwise financially sound and are not indefault with any financial institution.The component-wise pattern of assistanceadmissible under the scheme is given atAnnexure- III.

11. MANAGEMENT SUPPORT11.1 The State implementation agency for the Mission,

should be such that it has the infrastructure atthe district level and below. For this purposedepartments like the Horticulture and AgricultureDepartment may be considered as appropriateas the State level implementation agency. TheState Horticultural Mission may, therefore, bedesignated as the State implementation agencyfor the Mission, if considered appropriate, by theState Government. If SMPBs are given the nodalresponsibility, the States should appoint full timeCEOs of the State Medicinal Plants Boards and itshall be mandatory to register the SMPBs as asociety to enable flow of funds in States which donot have State Horticulture Mission.

11.2 Also, the States will be required to make Annualaction plans and prepare road map fordevelopment of the sector. Assistance will beadmissible to only those states who prepare theState Action Plan. Those States where processingzones/clusters will be established will have toprepare detailed project reports /business plansfor the identified zones/clusters group of clustersand incorporate specific business plan/ projectreport into State Action Plan.

11.3 It is proposed that 5% allocation will be availablefor management support which will go to theStates for activities like payment of the salary ofthe contractual staff and project managementconsultant engaged for implementing thescheme, preparation of annual plans,monitoring, administrative expenses like traveletc. and exposure visits.

12. PREPARATION AND SUBMISSIONOF PROPOSAL

12.1 The State Government shall prepare an AnnualAction Plan (Annexure-TV) for the various

activities under the Scheme and after approvalat the State level Steering Committee headed bythe Additional Chief Secretary/AgricultureProduction Commissioner/DevelopmentCommissioner at the state level forward 20copies of the Action to the NMPB. The ActionPlan may also be sent in a soft copy to the Board.

12.2 NMPB shall place all the Annual Action Plansbefore the Technical Screening Committee (TSC).The Annual Action Plan after screening by theTSC will be placed before the SFC which shallaccord approval and recommend release offinancial assistance to the States through theState implementation agency in one installment.The State implementation agency for thispurpose shall be registered as societies underthe Societies Registration Act so that the fundscould be channelised through it directly foronward release to the District and subdistrict/cluster level or to the SHG, Cooperative Societyor the producer company at the cluster level asthe case may be. Before releasing funds to theState level implementation agency, aMemorandum of Understanding (MoU) will beentered into with the States incorporating theduties, responsibilities and commitments of theState and the Central Government.

12.3 Further release of the funds for the approvedactivities and to the individual farmers/cultivators/groups will be done by the Stateimplementation agency based on thebeneficiaries, groups and entrepreneursidentified for various activities in differentclusters. The credit linked subsidy may bereleased after verification of the work in the fieldin one installment but after certification by thebank about the progress achieved on the ground.For long-gestation crops and other projectactivities the SFC may fix suitable number ofinstallments as may be required for smoothimplementation of the Action Plan.

12.4 The State implementation agency may spendupto 5% of the outlay proposed in the Action planfor the state and projet report/business plan foreach cluster proposed to be covered under thescheme in the state.

14

Annexure-I

SUMMARY OF UNIT COST FOR CULTIVATION OF MEDIClNALPLANT SPECIES

S.No. Crop Name Botanical name Cost Per acre Cost norms per

(Rs. ) Hectare (Rs.)

1 Amla Emblica officinalis 26,000 65,000

2 Anantmool Hemidesmus indicus 14,000 35,000

3 Archa Rheumemodi 81,000 2,02,000

4 Arjun Terminalia arjuna 18,000 45,000

5 Ashok Saraca asoca 25,000 62,500

6 Ashwagandha Withania somnifera 10,000 25,000

7 Atis Aconitum heterophyllum 44,000 110,000

8 Bach Acorus calamus 25,000 62,500

9 Bae1 Aegle marmelos 16,000 40,000

10 Bahera Tenninalia bellirica 16,000 40,000

11 Bankakri Podophyllum hexandrum 40,000 100,000

12 Beladona Atropa belladona 25,000 62,500

13 Bhumlamalaki Phyllanthus amarus 11,000 27,500

14 Bixa Bixa orellana 42,000 1,05,000

15 Brahmi Bacopa monnieri 16,000 40,000

16 Chirata Swertia chirata 33,000 82,500

17 Chitronella Cymbopogon winterianus 20,000 50,000

18 Cinnamon Cinnamomum zeylanicum 31,000 77,500

19 Coleus Coleus forskholii 17,200 43,000

20 Daruhaldi Berberis aristata 25,000 62,500

21 Gambari Gmelina arborea 18,000 45,000

22 Ghrit Kumari Aloe vera 17,000 42,500

23 Giloe Tinospora cordifolia 11,000 27,500

24 Gudmar Gymnema sylvestre 10,000 25,000

25 Guggal Commiphora wightii 64,000 1,60,000

26 Harar Terminalia chebula 16,000 40,000

27 Jatamansi N ardostachys jatamansi 81,000 2,02,000

28 Kalihari Gloriosa superba 55,000 137,500

29 Kalmegh Andrographis paniculata 10,000 25,000

30 Kokkum Garcinia indica 25,000 62,500

31 Konch Mucuna prurita 8,000 20,000

15

Note:

(1) Economics on cultivation have been finalized based on reports ofNABARD, CSIR, ICAR, ICFRE,Forest Deptt., NHB and other reliable sources.

(2) Economics of species have been worked out on the basis of inputs in the form of elite qualityplanting material.

(3) These cost nonns do not include expenditure towards manpower, infrastructure developmentand cost of land.

(4) More plants may be added to this list as and when cost norms become available.

32 Kuth Saussurea costus 35,000 87,500

33 Kutki Picrorhiza kurrooa 45,000 112,500

34 Lemon grass Cymbopogon flexuosus 20,000 50,000

35 Makoy Solanum nigrum 10,000 25,000

36 Mandukparni Centella asiatica 16,000 40,000

37 Manjishtha Rubia cordi folia 40,000 1,00,000

38 Mint Mentha piperitalMentha arvemsis 16,000 40,000

39 Mulethi Glycyrrhiza glabra 40,000 100,000

40 Muskdana Abelmoschus moschatus 8,000 20,000

41 Neem Azadirachta indica 15,000 37,500

42 Patchouli Pogostemon coblem 26,000 65,000

43 Pippali Piper longum 25,000 62,500

44 Punamava Boerhaavia diffusa 12,000 30,000

45 Pushkar Mool Inula racemosa 15,120 37,800

46 Ratalu Dioscorea bulbifera 25,000 62,500

47 Sadabahar Catharanthus roseus 10,000 25,000

48 Sarpgandha Rauwolfia serpentina 25,000 62,500

49 Sea Buckthorn Hippophae rhamnoides 20,000 50,000

50 Sena Cassia angustifolia 10,000 25,000

51 Shatavar Asparagus racemosus 25,000 62,500

52 Siris Albizzia lebbeck 15,000 37,500

53 Stevia Stevia rebaudiana 1,25,000 3,12,500

54 Tagar Valeniana wallichii 24,000 60,000

55 Tulsi Ocimum sanctum 12,000 30,000

56 Viavidang Embelia ribes 17,000 42,500

16

Annexure-II

LIST OF PRIORITIZED PLANTS FOR DEVELOPMENT AND CULTIVATION UNDER SCHEMEOF NMPB ELIGIBLE FOR 20% SUBSIDY

# Botanical Name Common Name Admissiblesubsidy (%)

1. Acorus calamus Linn. Vach 20

2. Aloe vera (Linn.) Burn. Ghritkumari 20

3. Andrographis paniculata (Bunn.f) Kalmegh 20Wall ex. nees

4. Artemisia annua Linn. Artemisia 20

5. Asparagus racemosus Willd. Shatavari 20

6. Azadirachta indicaA. Juss Neem 20

7. Bacopa monnieri (L.) Pennell Brahmi 20

8. Boerhaavia diffusa Linn. Punarnava 20

9. Cassia angustifolia Vahl. Senna 20

10. Caesalpinia sappan Linn. Patang 20

11. Centella asiatica (Linn.) Urban Mandookparni 20

12. Chlorophytum borivillianum Santo Shwet Musali 20

l3. Cinnamomum verum Presl Dalchini 20C. tamala (Buch.-Ham.) Nees ex. Brem. TejpatC. Camphora (L.) Presl. Kapoor

14. Coleus barbatus Benth. Pather Chur 20

15. Coleus vettiveroides K.C. Jacob Hrivera 20

16. Convolvulus microphyllus Sieb ex Spreng Shankhpushpi 20

17. Cryptolepis buchanani Roem & schult Krsna sariva 20

18. Digitalis purpurea Linn. Foxglove 20

19 Dioscorea bulbifera Linn. Rotalu, Gethi 20

20. Embelia ribes Burm. f. Vai Vidang 20

21. Garcinia indica Choisy Kokum 20

22. Ginkgo biloba Ginkgo 20

23. Gymnema sylvestre R. Br. Gudmar 20

24. Hedychium spicatum Buch Ham. ex-Smuth Kapur kachari 20

25. Hemidesmus indicus R. Br. Anantmool 20IndianSarsaparilla

26. Holarrhena antidysenterica Wall. Kurchi / Kutaj 20

17

Plants eligible for 50% subsidy

# Botanical Name Common Name Eligible subsidy

46. Aegle mannelos (Linn) Corr. Bael 50

47. Albizzia lebbeck Benth. Shirish 50

48. Alstonia scholaris R. Br. Satvin, Saptaparna 50

49. Altingia excelsa Noronha Silarasa 50

50. Anacyclus pyrethrum DC. Akarkara 50

51. Atropa belledona Royal Atropa 50

52. Coscinum fenestratum (Gartn) Colebr. Peela Chandan 50

53. Crataeva nurvala Buch-Ham. Varun 50

54. Dactylorhiza hatagirea (D.Don) Soo Salampanja 50

55. Gloriosa superba Linn. Kalihari 50

56. Glycyrrhiza glabra Linn. Licorice Roots, Mulethi 50

57. Gmelina arborea Linn. Gambhari 50

27. Ipomoea petaloidea Choisy Vrddhadaruka 20

28. Ipomoea turpethum R. Br. Trivrit 20

29. Litsea glutinosa (Lour) C.B. Bob. Listea 20

30. Lepidum sativum Linn. Chandrasur 20

31. Mucuna prurita Linn. Konch 20

32. Ocimum sanctum Linn. Tulsi 20

33. Phyllanthus amarus Schum & Thonn. Bhumi amlaki 20

34. Phyllanthus emblica Linn. AmIa 20

35. Piper longum Linn. Pippali 20

36. Pluchea lanceolata (DC) CB Clark. Rasna 20

37. Solanum nigrum Linn. Makoy 20

38. Stevia rebaudiana Bertoni Madhukari 20

39. Tenninalia arjuna (Roxb.) Wt. & Am. Arjuna 20

40. Terminalia bellirica Gaertn. Behera 20

41. Terminalia chebula Retz. Harad 20

42. Tinospora cordi folia Miers Giloe 20

43. Vitex nigundo Linn. Nirgundi 20

44. Withania somnifera (Linn.) Dunal Ashwagandha 20

45. Woodfordia fruticosa Kurz. Dhataki 20

18

58. Hippophae rhamnoides Linn. Seabuekthom 50

59. lnula racemosa Hk. f. Pushkarmool 50

60. Leptadenia reticulata (Retz) Wt. & Arn. Jivanti 50

61. Mesua ferrea Linn. Nagakeshar 50

62. Panax pseudo ginseng Wall. Ginseng 50

63. Parmelia perlata Aeh. Saileya 50

64. Piper cubeba Linn. f. Kababchini 50

65. Plumbago zeylanica Linn. Chitrak 50

66. Pueraria tuberosa DC. Vidarikand 50

67. Premna integrifolia Linn. Agnimanth 50

68. Pterocarpus marsupium Roxb. Beejasar 50

69. Rauwolfia serpentina Benth. ex Kurz Sarpgandha 50

70. Salacia reticulata Wight, Salacia oblongata Saptachakra (Saptarangi) 50Wall ex. Wt. & Am.

71. Saraca asoca (Roxb.) De Wilde Ashok 50

72. Smilax china Linn. Hrddhatri (Madhusnuhi), Chob Chini 50Lokhandi

73. Stereospcrmum suaveolens DC. Patala 50

74. Tecomella undulata (Sm.) Seem. Rohitak 50

75. Tylophora asthmatica (Linn. f.) Wight & Am. Damabooti 50

76. Taxus walliehiana Linn. Thuner, Talispatra 50

77. Urarea pieta (Jacq.) Desv. Prishnapami 50

19

Plants eligible for 75% subsidy

# Botanical Name Common Name Eligible subsidy

78. Aconitum ferox Wall. / A. balfouri Vatsnabh 75

79. Aconitum heterophyllum Wall. ex . Royle Atees 75

80. Aquilaria agallocha Roxb. Agar 75

81. Berberis aristata DC. Daruhaldi 75

82. Commiphora wightii (Am.) Bhandari Guggal 75

83. F erula foetida Regel. Hing 75

84. Gentiana kurroo Royle Trayamana 75

85. N ardostachys jatamansi DC. Jatamansi 75

86. Oroxylum indicum Vent. Syonaka 75

87. Picrorhiza kurroa Benth. ex royle Kutki 75

88. Podophyllum hexandrum Royle. Bankakri, Indian 75podophyllum

89. Polygonatum cirrhifolium Wall. Mahameda 75

90. Pterocarpus santalinus Linn. f Raktachandan, 75Red sanders

91. Santalum album Linn. Chandan 75

92. Saussurea costus C.B. Clarke Kuth, Kustha 75

93. Swertia chirata Buch-Ham Chirata, 75

Charayatah

20

Annexure-III

NORMS OF ASSISTANCE FOR PROGRAMMES

Sl. No Programme Estimated Cost Admissible Assistance

1. NURSERY

Production of planting material

a) Public sector

i) Model nursery (4 ha.) Rs. 20 lakhs Maximum of Rs. 20.00 lakhs

ii) Small Nursery (1 ha.) Rs.4 lakhs Maximum of Rs. 4.00 lakhs

b) Private Sector

i) Model nursery (4 ha.) Rs. 20 lakhs 50% of the cost limited to Rs.

1O.00 lakhs

ii) Nursery (1 ha.) Rs. 4 lakhs 50% of the cost limited to Rs.

2.00 lakhs

2. CULTIVATION

i) Species that are highly endangered and As per Annexure-I & II 75% of the cost of cultivation

in high demand by AYUSH industry

ii) Species that are endangered and sources As per Annexure-I & II 50% of the cost of cultivation

of supply are declining

iii) Other species in demand by AYUSH As per Annexure-I & II 20% of the cost of cultivation

industry and for exports

iv) The weighted average of subsidy for 93 30%

plants as per list at Annexure-II

3. POST HARVEST MANAGEMENT

i) Drying sheds Rs. 5 lakhs 100% assistance for

SHGs/Cooperatives/Public

Sector and 50% for Private

ii) Storage godowns Rs. 5 lakhs 100% assistance for SHGs/

Cooperatives/ Public Sector

and 50% for Private

21

4. PROCESSING AND VALUE ADDITION

i) Processing unit Rs. 200 lakhs 25% of the project cost subject

to a maximum of Rs. 50 lakhs

ii) Setting up testing laboratories Rs. 100 lakhs 30% of the project cost subject

to a maximum of Rs. 30 lakhs

iii) Market promotion Rs. 10 lakhs 50% of the project cost

iv) Market Intelligence Project based Project based

v) Buy back intervention Project based Project based

vi) Marketing infrastructure- - F or rural mandi = Rs. Project based. 100% assistance

10 lakhs to Public/SHGs/Cooperatives

For district mandi = Rs.

200 lakhs

vii) Testing charges/reimbursement 50% of testing charges

subject to Rs. 5,000/-

viii) Organic/GAP certification Rs. 5 lakhs for 50 ha. As per NHM

ix) Crop insurance 50% of premium

5. MANAGEMENT

i) State and District level organizations 5% of the total annual

implementing the programme expenditure on the basis of

including additional manpower. appraised need. The salary of

the contractual staff and

project

management consultant for

each

component of the scheme to be

paid under the scheme

ii) Project preparation cost and other Project based Within 5% available for

administrative cost including hiring management support

of transport, Travel Expenses, office

expenses hardware/software etc.

iii) Other expenses including exposure Project based Within 5% available for

visits within the country and management support

abroad.

22

Annexure-IV

FORMAT FOR SUBMITTING DETAILED ACTION PLANDescription

1. Background Information

1.1 Geography and Climate

1.2 Potential for Medicinal Plants

1.3 Existing infrastructure [warehouse/cold storages, markets, mandies,

manufacturing units, nurseries (public and private sector), R&D

institutions, testing laboratories, certification agencies, farmers

associations/ cooperatives/SH Gs]

1.4 Land availability (cluster-wise)

1.5 Existing level of cultivation

2 SWOT analysis

3 Details of the Annual Action Plan

3.1 Objective and strategy

3.2 Implementation agency at the State level with contact address, phone,

mail IDe-

3.3 Salient aspects of the Annual Action Plan and the implementation details

at district / sub-district level and how different organisations are

proposed to be brought together to achieve the Mission objectives

3.4 Components (with physical targets and financial outlays)

3.4.1 Nursery

(a) Public sector

(b) Private sector

3.4.2 Cultivation (species-wise proposed a rea and financial outlays

for different clusters)

3.4.3 (a) Storage / warehousing

(b) Drying / grading sheds

(c) Processing unit

(d) Quality testing laboratory

(e) Support for Quality testing

3.4.4 Marketing

(a) Market promotion

23

(b) Market intelligence

(c) Marketing infrastructure

(d) Buy - back interventions inlcuding mobilisation of SHGs/cooperatives

3.4.5 Certification and Insurance

(a) Organic / GAP certification

(b) Crop insurance

Linkages

3.5.1 With R&D Institutions / Facilitation centres

3.5.2 With A YUSH industry cluster scheme

3.5.3 With National Horticulture Mission

3.5.4 With Manufacturing units/ traders for marketing.

Mission Management

Project Management Consultant

Salary of the contractual staff, monitoring, travel and other administrative expenses.

Annexures

Map of the State giving potential areas and location of existing and the proposed infrastructure

under the Action Plan.

24

OPERATIONAL GUIDE LINES FOR SANCTION OF PROJECT/RELEASE OF CREDIT LINKED BACK ENDED SUBSIDY FOR POST

HARVEST MANAGEMENT UNDER NMMP SCHEME

1. INTRODUCTION

1.1 Post Harvest Management (PHM) plays veryimportant role in promotion of horticulturalproduction and marketing. This is because of aconsiderable quantity of the valuable produce islost due to improper post harvest management.As a result there is a sizeable gap between grossproduction and net availability of horticulturalproduce. Thus a crisis in food availability is notonly caused by the natural disasters, but also byabsolute lack of post harvest management.

1.2 The State is lagging behind in organized set upfor post harvest handling and marketing ofvarious fruits and vegetables, medicinal plant likeAonla, Sarpagandha, Aswagandha, Aloevera,Asoka, Satavari, Pipali, Tulasi, Bael, Giloe leadingto various kinds of losses. The losses mainly occurat field level, during post harvest handling,transportation and finally during marketing.These losses can be minimized by proper grading,packing, storage, pre-cooling and transportationparticularly with cool chain facility.

1.3 The post harvest management facilities areessential for value addition of produce, reductionof transit loss and increasing profit of the farmers.

2. PUBLICITY

2.1 Advertisement for the establishment/acquiringdifferent PHM units in private sector will bereleased from time to time by DDH & BranchManager-I,OHDS for the range/ Director ofHorticulture-cum-Secretary, OHDS for the Statekeeping in view the allocations under NMMPprogramme for the same.

2.2 The entrepreneur will collect the application form(Annexure-I & II) on payment of Rs.200/- (non

refundable) as processing fee from the office ofthe DDH & Branch Manager-I, OHDSHorticulturist & Branch Manager-II,OHDS/AHO& Branch Manager-II, OHDS. The processing feescan be used by the Branch Manager, OHDS inmeeting the contingent expenditure in this regard.However, mere payment of Rs.200/- does notentitle for sanction of project. Project sanction willdepend on suitability of project, bank sanction,acceptance at Govt. of India level & availabilityof funds etc.

2.3 The entrepreneur will submit the application andthe project to the DDH& Branch Manager-I, OHDS/Horticulturist & Branch Manager-II, OHDS /AHOBranch Manager- II, OHDS along with the originalmoney receipt and attested photocopies ofrequired documents as per guide line (Annexure– I & II).

3. ELIGIBILITY (Whereever ever applicable)

3.1 All the projects will be entrepreneur driventhrough commercial ventures for which Govt.Assistance will be credit linked back endedsubsidy in accordance with the cost norm. PublicSector Undertakings, State Govt. Agencies, Co-operatives, growers’ association, Farmer Group,Self Help Groups, Women Farmers’ Groups,recognized/registered by DMC having at least 25nos. of members will also are entitled to availassistance for such activities to the same extent.However, assistance will not be credit linked forsuch agencies but would be back ended subjectto condition that they are able to meet their shareof the project cost.

3.2 The assistance will be available to the individual,Society, Regd. Society, Companies andCorporation etc. as per NMMP guide lines.

25

However the person having received suchgrant from N.H.B. or NHM or any other State/Central Govt. etc. for the similar type of itemshall not be entitled to avail assistanceagain on all those items.

3.3 Preference will be given to the individuals/organizations with adequate s u i t a b l eland within the district with agri-horti farming /contract farming or wholesaler / traderin medicinal produce. Degree holder inAgriculture, Horticulture, AgriculturalEngineering, Management, Rural Management,Veterinary Science, may also be given preference.

3.4 The entrepreneur/beneficiary should have soundfinancial back ground.

3.5 In case of whole sale trading, the annualturnover/income tax return/vat clearance shouldbe furnished.

3.6 In case of contract farming the agreement as perAPMC Act should be furnished.

3.7 The entrepreneur/beneficiary should havewillingness for availing the Credit Linked backended subsidy.

3.8 The Horticulturist &Branch Manager-II, OHDS /AHO & Branch Manager- II, OHDS will sendthe valid applications/projects to the DDH &Branch Manager-I, OHDS.

3.9 A preliminary scrutiny of all such applications(Annexure – I & II) received shall be done by acommittee consisting of the DDH & BranchManager-I, OHDS as Chairman andHorticulturists & Branch Manager-II, OHDS /AHOs & Branch Manager-II, OHDS, A.A.E. O/oDDH & Branch Manager-I, OHDS as members forshort listing of the applications basing on guidelines of GOI including the land and otherdocuments. Such meetings shall normally beconducted on monthly basis. The applicants notfound suitable may be communicated with thedeficiencies by registered post with one copy tonotice board.

4 LAND & LOCATION ( For the landbased projects, in other cases thedetails of business address of theentrepreneur/beneficiary along withproof of the same) :

4.1. The land should be in the name of theentrepreneur and records should be down loadedfrom bhulekhori.nic.in and attested by concernedTahasildar or an officer not below the rank of SubDivisional Magistrate of Revenue Department.Also he is to submit certified copy of the land inoriginal from concerned Tahasil.

If joint property, No Objection Certificate of theshare holder(s) of the said land in the form ofaffidavit sworn before the Executive Magistrateof 1st class should be submitted.

4.2 In case of lease land, if the leasee can mortgagethe land in favour of the financing bank/FI, canalso be entertained if bank is satisfied.

4.3 The project for post harvest management shouldaim at providing “direct” service delivery toproducers / farming community for safeutilization/marketing of their produce.

4.4 Cost of land in infrastructure projects will berestricted to a maximum of 10% of the projectcost in rural areas and to 20% in municipal areasand it would form part of the owner’scontribution to be taken towards margin moneyin cases where a fresh purchase is made as perguide lines of NMMP.

4.5 A declaration that the entrepreneur will notalienate the land/infrastructure acquired duringthe period of the loan for any purpose other thanthe purpose for which the loan is sanctionedshould be submitted.

SELECTION OF SITE: (For land based projects) :

4.6 The site should be well communicated withtruckable all whether road.

4.7 The site should have easy access to electricity.

4.8 There must be permanent and adequate watersource or should have provision to acquire with.

26

4.9 The sketch map of the site with description ofboundaries duly signed by revenuei n s p e c t o rshould be verified with the Patta, Khata No. PlotNo., revenue receipt etc.

4.10 Area should be also otherwise suitable for efficientfunctioning of the proposed Post HarvestingManagement Unit.

5 SELECTION / PRIORITISATION5.1 The selected applications (Annexure – I & II)

under para 3.9 shall be placed before the DMC bythe DDH & Branch Manager-I, OHDS for itsapproval. The technical team of the DistrictMission Committee (DMC) will effect fieldverification, scrutinize the short listedapplications and give appropriaterecommendation. The DMC will approve theselected entrepreneurs and prioritize them.

5.2 There after, the DDH & Branch Manager-I, OHDSwill intimate the panel of prioritizedentrepreneurs along with the DMC proceedingsand selected applications (Annexure – I & II) tothe Secretary, OHDS for formal approval.

5.3 Secretary, OHDS will send proposals to the NMMP,Govt. of India with a copy to State Govt. forapproval and release of funds, whereverapplicable.

5.4 After getting project, sanctioned or cleared by theNMMP, Govt. of India with provision of funds, theDirector of Horticulture-cum-Secretary, OHDSwill ask the DDH & Branch Manager-I, OHDS /

Horticulturist & Branch Manager-II, OHDS/AHO& Branch Manager-II, OHDS to go ahead withthe project execution indicating the name of theentrepreneurs along with sanction of funds forsubsidy amount. The unsuccessful applicants shallbe intimated by the DDH & Branch Manager-I,OHDS by registered post/Speed Post.

5.5 The DDH & Branch Manager-I, OHDS /Horticulturist & Branch Manager-II, OHDS /AHOBranch Manager-II, OHDS will communicate thesanctioned projects to the bank and entrepreneurfor further execution of the project. Thecomponents which are not under credit linkedback ended scheme the subsidy will routedthrough bearer cheque to the beneficiary afterjoint verification by the team following norms andcondition.

6 CREDIT LINKED ASSISTANCE

Assistance under the scheme shall be available oncapital cost of the project only. The Bank/FI willhowever, be free to finance other activities/working capital requirement to meet variousrequirements of the entrepreneur, here subsidywill not be available for such activities.

7 SUBSIDY

INTEGRATED POST HARVEST MANAGEMENT

7.1 Rate of subsidy and maximum amount of subsidyshall be on the capital cost of the project asfollows.

Sl.. No. Name of the Capital cost per unit Rate of assistance per unit (subsidy amount)Project (in Rs.)

1. Storage Godwn(100MT) Rs.5.00 lakhs /unit 100% assistances for SHGs/Coperative/Publicsector and 50% of the capital cost in caseprivate sector.

2. Drying Shed(100MT) Rs.5.00 lakhs /unit 100% assistances for SHGs/Coperative/Public sector and 50% of the capital cost incase private sector.

3. Est. of Rural Mandi Rs.10.00lakhs /unit 100% assistances for SHGs/Coperative/Publicsector

4. Est. of District mandi Rs. 200.00 lakhs /unit 100% assistances for SHGs/Coperative/Publicsector

27

7.2 Maximum amount of subsidy cost shall berestricted as indicated above. However theentrepreneur will be free to undertake PHM unitof higher cost by contribution from h i s o w nresources or other financial assistance.

7.3 The amount of subsidy availed for the project orany of its components from any other source shallbe deducted from the amount of subsidyadmissible under this scheme.

7.4 The full project cost including the subsidyamount, but excluding the margin moneycontribution would be disbursed as term loan bythe bank/FI Quantum of margin money andloan to be given by the bank will be decided bythe bank/FI on case to case basis.

7.5 The repayment schedule will be drawn on theloan amount in such a way that the totalsubsidy amount is adjusted after the full bank loancomponent with interest (excluding subsidy) isliquidated.

7.6 The financing bank may also provide workingcapital separately for undertaking thebusiness by the entrepreneur where ever suchsituation arises but subsidy shall not beprovided for such funding.

7.7 The financing bank may also provide workingcapital separately for undertaking thebusiness by the entrepreneur where ever suchsituation arises but subsidy shall not beprovided for such funding.

7.8 After the loan is disbursed, the project work shallstart.

7.9 After disbursing a part of the loan sanctioned therespective bank/FI will claim for the subsidyto the Horticulturist &Branch Manager-II, OHDS/AHO &Branch Manager-II, OHDS. Thenumber of claims and release of subsidy may be2-3 installments. The final subsidy claim shallbe made after the disbursement of lastinstallment.

8 RELEASE OF SUBSIDY

8.1 Subsidy for the project under the scheme shall bereleased by DDH & Branch Manager-I, OHDSthe Horticulturist & Branch Manager-II, OHDS /AHO & Branch Manager-II, OHDS forprojects financed by Banks/FI.

8.2 A joint inspection committee comprising of DDH& Branch Manager-I, OHDS, Horticulturist &Branch Manager-II, OHDS AHO & BranchManager-II, OHDS Asst. Agril. Engineer, O/oDDH & Branch Manager-I, OHDS and the banker,AGM, NABARD will inspect the site periodicallyto observe the progress of the work. If requiredthe DDH & Branch Manager-I, OHDS /Horticulturist & Branch Manager- II, OHDS isto release subsidy proportionately in the basis ofthe joint inspection committee.

8.3 The Horticulturist & Branch Manager-II, OHDS /AHO & Branch Manager-II, OHDS will releasethe subsidy within 30 days of requisition from thebank and in case of delay he will communicatethe reasons for delay or non release to bank andthe entrepreneur and Director of Horticulture-cum-Secretary, OHDS Orissa. In case of dispute,decision of the Director of Horticulture-cum-Secretary, OHDS, Orissa shall be final andbinding.

8.4 Subsidy should be released with proper intimationto the Collector-cum-Chairman, DMC of NationalHorticulture Mission by DDH & Branch Manager-I, OHDS.

9 ADJUSTMENT OF SUBSIDY INBORROWERS ACCOUNT

9.1 The subsidy amount released by the Horticulturist& Branch Manager-II, OHDS /AHO & BranchManager-II, OHDS will be kept by the Bank inthe Subsidy Reserve Fund Account of theconcerned borrower, to be adjusted finallyagainst loan amount of the bank on completionof the project. The adjustment of subsidy will bein the pattern of back ended subsidy. However,no interest will be charged by the lending banks

28

on the loan amount equivalent to the subsidyamount received by them. Suitable instructionsissued in this regard by the RBI from time to timewould be adhered to.

9.2 On completion of the project the concerned bankwould inform the Horticulturist & BranchManager-II, OHDS /AHO Branch Manager-II,OHDS about the project completion within theoverall guide lines of NMMP and projectsubmitted and shall make a request for jointinspection of the project in presence of thepromoter/entrepreneur.

9.3 The Horticulturist & Branch Manager-II, OHDSAHO Branch Manager-II, OHDS will effect jointverification by the technical team constituted bythe Chairman DMC of NMMP along with thebanker and the promoter/entrepreneur.

10 IMPLEMENTATION PERIOD

10.1 Period of implementation will be as per norms ofthe lending bank or NMMPguide lines, dependingupon the nature of the project.

11 RECALLING OF SUBSIDY

11.1 In case of default in payment of the loan the bankwill adopt due process of loan recovery.

11.2 The Horticulturist & Branch Manager-II, OHDS/AHO Branch Manager-II, OHDS shall recall thesubsidy amount before its liquidation wheneverhe feels that the entrepreneur is deviating from

the original aim and objective of the project/theproject is not completed within the stipulatedperiod or any other valid reason with approvalof DMC of National Mission on medicinal plants.

12 UTILIZATION CERTIFICATE

12.1 Bank would submit the utilization certificate ofthe subsidy amount released by theHorticulturist & Branch Manager-II, OHDS /AHO Branch Manager-II, OHDS periodicallywho in turn shall furnish the UC to the DDH &Branch Manager-I, OHDS which will be finallysent by DDH Branch Manager-I, OHDS after hiscountersignature to the Director of Horticulture-cum-Secretary, OHDS.

13 MISCELLANEOUS

13.1 NMMP or OHDS shall be fully competent to add,relax, delete or amend any provisions for anyactivities under Post Harvest Management.

13.2 The beneficiary will depict a signboard (2m x 3m)at a prominent place depicting name of theentrepreneur, location and fact of assistanceunder the scheme along with logo of NMMP aswell as OHDS. In case of van or movable units,the same will be depicted on the body of the unitsappropriately. This will be examined by Jointinspection committee of the District beforerecommendations to Director of Horticulture-cum-Secretary, OHDS, Orissa.

29

ANNEXURE -I

ENTERPRENEURS (PROMOTER'S) PROFILE

(To be filled in by the Office)

1. Title of the Project

2. Project Code

3. Date of application submitted to DDH/Horticulturist

4. M.R. No. & Date of purchase ofEntry, Proof No…………….Date

5. Date of submission of Entry Proof.

6. Date of District Horticulture Mission Approval

7. Project Cost (Rs. in lakhs)

8. Investment Ratio

(To be filled in by Entrepreneur/Applicant)

1. Name of the Entrepreneur/Applicant

2. Father’s Name :

3. Permanent Address (With Postal Pin ) & Telephone No.

4. Present Address (with Postal Pin ) & Telephone No.

5. Date of Birth :

6. Caste : (General/SC/ST/OBC)

7. Name of the Organization(if authorized a person to apply for, please enclosethe authorization letter in original)

8. Name of the Person heading the Organization and his full address postal pin with telephone number.

9. a) Identity proof of the applicant/entrepreneurfor Individual applicant

(The Xerox copy should be attested by a Gazetted Officer not below the rank of SDM orExecutive Magistrate –I.)

(i) Voter I.D. Card (ii) Pan Card (iii) Electric Bill (iv) Phone Bill

(v) Educational qualification

b) Identity proof for organization (If applicant is an organization )

(i) Income Tax Return (I.T.) returns of the previous/current year.

Affix passportsize photographto be affixed bythe applicant.

No.____________________________

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(ii) Registration Certificate

(iii) Additional Qualification (if any)

(iv) Applicant ( with designation)

(v) Authorized person

c) Name & address of the Technical experts of the

Organization to handle the project (with Telephone No. & Mobile No.)

d) Working Experience in the applied Project/Institution.

Name of the Job description Design Period of Responsibility Annual turnInstitution/ Experience TakenCapacity over in Rs.Project (From ……

to……..

1 2 3 4 5 6

10. Occupation Details Crop Produces

a. Agril. Farming

b. Agro Industries

c. Agri Business

d. Others

11. Details of Property hold (Promoters own & Family) in case Individual applicant.

a) Type of Property details of ownership

b) Type of Acquisition

c) Year of acquisition

d) Present Market Value (in Rs.)

e) Land ownership documents to be submitted along with application form. Documents downloadedfrom bhulekh Orissa.in site and attested by concerned Tahasildar or SDM.

12. In case applicant is an organization:

a) Type of Property details with Ownership

b) Acquisition details

c) Years of Acquisition

d) Present Market Value (in Rs.)

e) Land ownership documents to be submitted along with application form. Documents downloadedfrom bhulekh Orissa.in site and attested by concerned Tahasildar

f) Source of Income

g) Annual Income (in Rs.)

31

13. Details of Loan/grant/Advances obtained earlier

a) If applicant is an Individual

C) Details of the contribution to the proposed project expenditure

b) If applicant is an Organization

a) Selfb) Bank Loanc) Equity Shared) Subsidy

14. Details of the Proposed Projecta) Proposed Location (with road map):b) Layout plan of the plant/machineryc) Area of Operation:-d) Cost of the Project (in Rs.)

i) Working Capital:-ii) Fixed assets valuation (in Rs.)

e) Annual Profit assessed (in Rs.)f) Detail Project Report (DPR) Prepared by

(Name address & Telephone No.)DPR should contain detailed P/E of Civil Construction, cost of plant/machinery with supporting quotation).g) D.P.R. accepting Bank(Please enclose the DPR acceptance letter & consent letter of Fin. Inst. to Finance the Project).h) Brief note on motto/objective of your proposed Project

(Use separate Sheet if required)i) Original copy of M.R. (Money Receipt) in support of purchase of application.I do undertake that above information's furnished are true so far my knowledge is concerned.

Place: Signature of Applicant/EntrepreneurDate: (With Name,

32

CHECK LIST (Submitted documents may be furnished by applicant/entrepreneur)

List of documents enclosed in support of Applicant's (Entrepreneur) credential to set up the……………………………..unit attached with application.

1.

2.

3.

4.

5.

Signature of applicant/entrepreneur(with Name, Phone No. & Seal)

The application along with the above mentioned documents were received From .………………….............…………

..........................................................................……………………….on………………………....................Dated……………………..............

for the project……………………….............……………………............................................. Amounting …………………….........................................

Application receipt(To be furnished by Branch Manager of State Horticulture Mission)

PlaceDate

Signature of Receiving Officer(With Name, Telephone No. & Seal)

33

Annexure - II

The proposal by private entrepreneurs, Public Sector undertakings, Coop Societies etc. shall besubmitted after sanction of credit facilities by the Financial Institutions as per format

Format for Submission of Project based Proposals (PHM) by Private Sector under NHM

1. Name of Project

2. Type of Activity

3. Objectives

4. Location of the Project with Address

General Area

Hilly/Tribal Area

5. Constitutions

(Date of incorporation and relevant law along with a copy of articles and memorandum of associations,by laws, partnership deed and registration certificate which ever is applicable. Documentary proofregarding authorized /paid up capital and promoters contributions).

a) Public Ltd Company

b) Private Ltd Company

c) Registered Society

d) Association

e) Federation

f) Producer Company

g) Proprietorship firm

h) Partnership concern

6. Management

7. Brief back ground of promoters.

8. Cost of Project Rs. in lakhs

a) Land - (If purchased new along with documentary proof)

b) Building

c) Plant & Machinery

d) Contingencies

e) Miscellaneous fixed assets

f) Working Capital margin

g) Pre operative exp.

Total:

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9. Means of Finance

i. Promoter Share

ii. Bank Term Loan

iii. Subsidy

iv. Quasi equity

v. Unsecured loan

Total

10. Details of Cost of Plan & Machinery/equipment supported by quotations.

11. Details of the Building construction and the cost duly certified.

12. Area of Operation with special reference to National Horticulture Mission (NHM) Districts to be covered.

13. Availability of raw material, name of the cluster and district along with the major crops.

14. Back ward linkages with farmers with reference to either providing services or purchase of raw materials

15. Forward linkages - Analysis of domestic and export markets, tie up made for sale of Produce and brandingaspect.

16. No. of farmers/orchardist to be benefited.

17. SWOT Analysis

18. Financial Analysis - IRR, NPW, Cost benefit Ratio, Break even point, DER, DSER, Projected balance sheetetc.

19. Insurance of the fixed assets.

20. Name of the sponsoring bank along with the details of Techno economical appraisal reports, copy ofsanction letter and Detailed Project Report (DPR) as submitted to bank.

21. Certificate regarding Non-availing of subsidy from any other Central/State Govt. Department.

22. Social benefits with special reference to employment generation.

a) Direct employment

b) Indirect employment

c) Women ST/SC employment

23. Details of the sustainability of the project with special reference to its capacity to generate income sinceonly one time grant is admissible.

24. Implementation schedule.

25. Amount of subsidy sought.

Place:Date:

Signature of Applicant/Entrepreneur (With Name & Seal)

35

DETAILED GUIDLINES FOR CULTIVATION OF DIFFERENTMEDICINAL PLANT SPECIES UNDER NMMP- 2011-12 &

ONWARD(Aonla / Bael /Ashok/ Ashwagandha / Sarpgandha / Ghrit Kumari /

Pipali /Shatavari / Tulasi /Giloe )

1. Different species like Aonla, Bael, Ashoka, Aswagandha, Sarpagandha, Ghrit Kumari, Pipali, Shatavari,

Tulasi & Giloe will be taken up in compact patches in the farmer's field. However, depending upon local

interest & market demand more new crops can be added.

2. At the time of selection of beneficiaries, suitability of soil, irrigation sources, interest and capability of the

farmers to maintain the plantation/ cultivation shall be taken into consideration. The beneficiary concerned

will remain responsible for success of the plantation/ cultivation.

3. Spacing / population recommended and qualified for assistance for medicinal crop plantations per ha.

are as follows :

Crop Spacing Plant population / ha.

Aonla ( Emblica officinalis) - 7m x 7m - 200 nos

Bael (Aegle marmelos) - 7m x 7m - 200 nos

Ashoka( Saraca indica) - 6m x 6m - 275 nos

Ashawagandha (Withania somnifera) - 45cm x 30cm - 74000 nos

Sarpgandha (Raowolfia serpentina) - 45cm x 30cm - 74000 nos

Ghrit Kumari (Aloe vera) - 60cm x 45cm - 36500 nos

Pipali (Piper longum) - 60cm x 60cm - 27660 nos

Shatavar (Asparagus racemosus) - 60cm x 60cm - 27660 nos

Tulasi (Ocimum sanctum) - 40cm x 40cm - 62500 nos.

Giloe (Tinospora cordifolia) - 1m x 1m - 10000 nos

Pattern of Assistance

4. Assistance up to 20% of total cost limited to maximum of Rs.13,000/- per hect. for Aonla, Rs. 5,000/- per

ha. for Ashwagandha, Rs.8,500/- per ha. for Ghrit kumari , Rs.12,500/- per ha for Pippali, Rs. 12,500/-

per ha for Shatavari, Rs. 6,000/- per ha for Tulasi and 50 % of total cost limited to maximum Rs.20,000

/- per ha. for Bael, Rs.31,250/- per ha for Sarpgandha, Rs.31,250/- per ha for Ashoka & Rs. 5500/- per ha.

For Giloe will be provided to the beneficiaries over a period of 3 years in the ratio of 65:20:15 for Aonla,

Ashoka, Bael. Over a period of 2 years in the ratio of 75:25 for Sarpgandha, Shatavari, & over a period of

one year for Ghrit kumari (Aloevera), Ashwagandha , Tulasi, ,Pipali, Giloe.

36

5. Subsidy is permissible for a minimum area of0.4 ha. for Aonla , Ashoka, Bael crops and0.1 ha in case of Ashwagandha, Sarpgandha,Shatavar, Ghrit kumari, , Tulasi, Pippali,Giloefor an individual beneficiary in a compactpatch . There is no limit for maximum area.It is further clarified that full subsidy will notbe given to individual farmer if the plantationarea is less than 0.4 ha./ 0.1 ha as per cropspecification. However, farmers interested toraise the above crops in less than 0.4 ha. areamay avail 75 % subsidy only on plantingmaterials to be provided. These farmers (allcategories) will raise the plantation in clusters,

preferably adjacent to bigger patches. In any casesuch small scale planting may not exceed 20 %of total programme and such small units in acluster shall be of a minimum of 2 ha coveringminimum 5nos farmers from adjacentvillages.

6. The farmers can avail assistance for more thanone crop.

Selection of Beneficiary

7. The beneficiary will apply to the concernedHorticulturist / AHO in the prescribed format asper Annexure-I to take up plantation/ cultivation& to avail subsidy.

Scale of Subsidy

Crop wise and year wise assistance under different medicinal crops detail is furnished below:

37

8. The land of the beneficiaries should be identifiedwell in advance by April & the beneficiary listwill be prepared separately for each crop.

9. Token price i.e 25% of the cost of the QPM is tobe collected from the individual beneficiary incase of Aonla only.

Field Preparation

10. Digging of pits by the beneficiary should becompleted by 10th June at the latest. The pit sizeof different long duration crops is given below :

Aonla / Ashoka / Bael 1m x 1m x 1m

Arrangement / Lifting of QPM

11. Arrangement will be made by the concernedHorticulturist / AHO to lift planting material asper target/ diversion programme.

12. After unloading of the planting materials at thesite proper nourishment of plant should be takento overcome the transportation shock.

13. The planting materials will be supplied to thebeneficiaries on payment of 25% of the cost of

the planting material in advance if approved inthe cost structure.

14. Planting should be started immediately after theonset of monsoon and completed by 31st August.

15. The beneficiaries should be imparted trainingbefore plantation

Details of component wise financial assistance /subsidy in medicinal plantation under NMMP isfurnished as “cost structure” along with diversionprogramme of planting materials.a. The subsidy amount for first year for different

crops (as mentioned in the above table) will bepaid to the beneficiary in shape of A/c payeecheque after deducting the cost of plantingmaterial including transportation, loadingunloading & miscellaneous component asmentioned in the Cost structure

b. The Cost towards installation of Display Boardin the farmers field, if not mentioned in thecomponent wise subsidy breakup, expenditurewill be made by the Horticulturist out ofMiscellaneous component.

Release of Subsidy

16. The subsidy will be released to the beneficiaryin shape of A/c payee cheque in one installmentat the time of plantation.

17. Subsidy for 1st year maintenance of differentcrops (as per the above Table – 2nd yr.) will bereleased to the individual beneficiary for of thecrop, subject to survival of plant not less than75% after verification.

18. Subsidy for for 2nd year maintenance differentcrops (as per the above Table – 3rd yr.) will bereleased to the individual beneficiary of the crop,subject to 90% of survival of plant afterverification.

19. Concerned Horticulturist / AHO & JHO will verifythe survivability position of the plantation duringthe month of April of each year as per theprescribed format at Annexure- II for 2nd yr. &3rd yr. and submitted to concerned DDH.

Example : For Aonla Plantation

a. Total subsidy for 1st year for 1 ha. (NMMP share) Rs. 8450/-b. Farmers share collected (Rs.5/- per plant) Rs.1000/-Total funds available Rs.9450/-

Expenditure incurred

a. Cost of the Planting material including internal transportation& loading unloading @ Rs.17.30/- per graft for 200 nos grafts Rs.3460b. Provision for display board (incurred by concerned Hort. / AHO) Rs.250/-Total Expenditure Rs.3710/-

c. Balance subsidy to be released to the beneficiary (Rs.9450.00 – Rs.3710.00) Rs.5740/-

38

20. Concerned DDH will make 10 % random checkin the field within 15th May & submit the list ofeligible beneficiaries with numbers of plantavailable, area covered & % of survival to thisDirectorate for release of subsidy to theconcerned Horticulturist/ AHO.

21. The list of eligible beneficiaries with no. of plantavailable, area covered & % of survival will beplaced before the District Mission Committee forapproval before June.

22. Subsidy amount towards maintenance ( 2nd yr. &3rd yr.) will be released to the beneficiaries by theconcerned Hort/ AHO on the onset of the monsoonof the respective calendar year within July.

23. The concerned Horticulturist / JHO shouldeducate the farmers to utilize the organicfertilizers / biopesticide in the plantation fieldout of the subsidy amount released to them. Theymay enhance the input.

24. Govt. has fixed average rate of transportationtaking the state distance as a whole in the coststructure communicated. Hence, individualHorticulture / Asst. Hort. Officer should calculate

the rate of transportation observing distance tobe covered in his area.

Monitoring

25. Regular visit of the field staff to plantation siteshall be ensured by the concerned supervisingofficials.

26. Fencing/ making of tree guard should be ensuredfor the plantation site/ individual plant by thebeneficiary.

27. Installation of pitcher and utilization of mulchingmaterials must be ensured for success of theplantation.

28. Concerned Horticulturist on weekly basis andD.D.H on fortnightly basis should monitor thecollection and deposit of farmer’s share in thesociety account. In no case the fund collectedshould be kept more than a week with J.H.O./H.O./ Grafter / Gardener.

29. Year wise and crop wise plantation registershould be maintained at the Horticulturist /AHO’s office in the following proforma.

30. The field staff I/c of plantation for the GP/Blockshould also maintain a register with above tableand additional column mentioning date ofintercultural operation and application offertilizers etc. given as assistance. The field staffconcerned should always carry this register withhim during field visit and produce before thesupervising officer / verifying officer duringtheir field visit to the field and get it checked with

signature and date of verifying officer.31. A copy of the approved beneficiary list in book

form & a soft copy should be submitted to themission headquarters after plantation over forrecord.

32. The concerned D.D.H should furnish therequirement of funds of his range officers to themission headquarter for the release of fund.

39

Annexure - I

APPLICATION FORM FOR CULTIVATION OF MEDICINAL PLANTS FOR AVAILING SUBSIDY UNDERNATIONAL MISSION ON MEDICINAL PLANTS FOR THE YEAR____________

1. Name of the Beneficiary :

2. UID No. :

3. Father’s Name :

4. a) Village b) G.P

c) Block d) District

e) Phone No.

5. a) Caste : SC / ST / OBC / OC

b) Sex : Male / Female

6. Category : Small / marginal / other

7. BPL status : BPL- Yes / No. BPL Card No.

8. Patta/ Khata No. :

9. Source of Irrigation availability :a) Tank b) Canal c)Lift Irrigation d) Shallow / Deep Well

10. Fencing System availability: Green / barbed wire / Compound wall / others

11. Previous experience of farmers if any:

12. Name of the Crop:

13. Area proposed to be planted in a single patch:

I do hereby undertake to be totally responsible for success of the plantation and use the Govt. subsidy in fullfor the purpose.

Signature of the Beneficiary

Certified by JHO

Countersigned by

Horticulturist / AHO

For Office use only

40

Annexure-II

SURVIVABILITY CERTIFICATE

Certified that the Aonla / Bael / Ashok / Aswagandha /Sarpagandha /Shatavari/ Pipali/ Aloevera/ Giloe /

Tulasi plantation taken up by Sri_________________________________________________________________________________________

Vill_____________________,G.P.___________Dist.________________________during the year__________________ under the National

Horticulture Mission Programme has survivability of _______________ % for _____________ year . So the beneficiary

is eligible / not eligible to avail subsidy for Rs._________________ amount for ___________ year (2nd / 3rd). His name

is recommended / not recommended for release of subsidy.

Gardner / Grafter /F.T./H.O. JHO

Horticulturist / AHO

Countersigned and recommended for release of subsidy amounting to

Rs_________________________.

Deputy Director of Horticulture

41

OPERATIONAL GUIDELINES FOR SANCTION OF PROJECT / RELEASEOFCREDIT LINKED BACK ENDED SUBSIDY FOR ESTABLISHMENT OFMODEL AND SMALL NURSERIES IN PRIVATE SECTOR UNDER NMMP

1. INTRODUCTION

1.1. Cultivation of medicinal plants and eventualreturns from such cultivation is largelydependent upon the quality of planting material(QPM) used.. In case of perennial medicinalcrops it is more so required as perennial cropshave long gestation period. However, as of now,there is no mechanism of providing certifiedgermplasm or certified planting stock oncommercial scale. Therefore it is proposed toestablish Model Nurseries/Small Nurseriesunder the public sector as well as private sectorto meet the requirement of quality of plantingmaterial of medicinal plants for cultivation bythe growers in our state for which financialassistances will be provided.

1.2. Under NMMP, there is adequate provision forarea expansion under different medicinal cropslike Aonla, Bael, Sarpagandha, Aloevera, Pipali,Shatavari, Aswagandha, Tulasi, Giloe etc. To meetthe demands of such quality planting material, aprovision has been made under NMMP forestablishment of model / small nurseries eitherwith mono crop or multiple crops keeping inview the need, suitability of the crop and marketscenario.

1.3. The nursery so established for Aonla and Baelshall be registered under the Orissa FruitNurseries (Regulation) Act, 1997 and OrissaFruit Nurseries (Regulation) Rule, 2001 andregulated there in the maintain quality standard.There nurseries will be developed keeping inview the Para of 8.8 to 8.12 of OperationalGuidelines of National Mission on MedicinalPlant. It will be the sole responsibility of theentrepreneur to market his nursery produce.Neither the National Mission on Medicinal Plant(NMMP) nor the Govt. of Orissa shall beresponsible for the same.

2. PUBLICITY

2.1. Advertisement for the establishment of modeland small nurseries in private sector will bereleased from time to time by the Secretary,OHDS for the State and DDH for the rangekeeping in view the allocations under NMMPprogramme for the same.

2.2. The entrepreneur will collect the applicationform (Annexure-I) on payment of Rs.100/-(non-refundable) as processing fee from theoffice of the Horticulturist / AHO / DDH. TheBranch Manager in meeting the contingentexpenditure can use the processing fee.However, mere payment or Rs.100/- does notentitle for sanction of project. Project sanctionwill depend on suitability of project, banksanction & availability of funds etc.

2.3. The entrepreneur will submit the applicationwith the Horticulturist / AHO / DDH along withthe original money receipt and attestedphotocopies of required documents as details inparagraph 4.1. Validity period for submission ofapplication shall be 90 days from date ofpurchase.

3. ELIGIBILITY

3.1. The assistance will be available to the individualfarmer having suitable land (minimum 4 ha formodel nursery and 1 ha for small nursery)within the district. However, the person havingreceived such grant from NHB or NHM or anyother state / central Govt. sources shall not beentitled assistance to the extent and on thoseitems.

3.2. He should have sound financial back ground.3.3. He should have willingness for availing the

credit linked back ended subsidy.3.4. The Horticulturist / AHO will send the valid

applications to the DDH.

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3.5. Preference may be given to the applicants havingdegree in Horticulture, Agriculture, Forestry,Biotechnology, Agricultural Engineering as wellas applicants undergone self employmenttraining programmes conducted by theDirectorate of Horticulture etc, unemployedtrainees passed out from the School ofHorticulture, Khurda and other training centersacknowledged by the Department of Agriculture,Govt. of Orissa. If, there are more eligibleapplicants, all the eligible applications will bekept in panel and may be covered in future onpriority. In case, the programme is discontinued,then the pending applicants will be informedaccordingly and they will make their ownarrangement of funds from the bank etc. Theprocessing fee so collected shall not be refunded.

3.6. A preliminary scrutiny of all such applications(Annexure-I) received shall be done by acommittee consisting of the DDH as Chairmanand Horticulturists / AHOs as members for shortlisting of the applications basing on the land andother documents. Such meeting shall normallybe conducted on monthly basis. The applicantsnot found suitable may be communicated withthe deficiencies by registered post with a copyto notice board.

4. LAND RECORDS

4.1. The land should be in the name of theentrepreneur. He has to submit the attestedXerox copy of the original patta.

4.2. If joint property, No Objection Certificate fromthe shareholders of the said land in the form ofaffidavit sworn before the Executive Magistrateof 1st class should be submitted.

4.3. In case of lease land & if the lessee can mortgagethe land in favour of the financing bank/ FI, itcan also entertained if banks are satisfied.

4.4. A declaration that the entrepreneurs will notalienate the land during the period of the landfor any purpose other than establishment ofnursery is necessary.

4.5. Sketch map of the nursery duly authenticatedby the Revenue Inspector along with copy ofROR will be submitted..

5. SELCETION OF SITE

5.1. The site should be well communicated withtruckable all weather road.

5.2. There must be permanent and adequate watersource or should have provision to acquire with.

5.3. The site should have easy access to electricity.5.4. The land should be well drained, fertile and

suitable for growing Medicinal crops.5.5. The soil depth should be about 2 meters.5.6. The sketch map of the site duly signed by

revenue inspector should be verified with thePatta, Khata No., Plot No. etc.

6. SELECTION / PRIORITISATION

6.1. The selected applications under para 3.6. Shallbe placed before the DMC by the DDH for itsapproval. The technical team of the DistrictMission Committee (DMC) will effect fieldverification and scrutinize the short listedapplications as well as give appropriaterecommendation. The DMC will approve theselected entrepreneurs and prioritize them.

6.2. There after the DDH will intimate the panel ofprioritized entrepreneurs along with the DMCproceedings to the Secretary, OHDS for formalapproval.

6.3. The OHDS after getting the DMC report andkeeping in view the allocations available underthe said component ask the DDH / Horticulturist/ AHO to go ahead with the project executionindicating the name of the entrepreneur alongwith the required funds for the subsidy amount.The Horticulturist / AHO will ask theentrepreneur to submit a detailed projectproposal based upon Model Project Format(Annexure-II) keeping in view his specific needsdirectly to the bank / FI as per the guide lines ofthe lending institution with a copy of the projectproposal to the Horticulturist / AHO. However,the entrepreneur as well as Banker will be freeto adopt its own model with in the NMMPguidelines. The unsuccessful applicants shall beintimated by the DDH by registered post.

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6.4. The Horticulturist / AHO shall render all co-operation to the bank in field inspection,modification of project and other technicalclarification. After being satisfied with theproject report the bank will sanction the projectwith copy of sanctioned project and disbursethe loan to the applicant under intimation toHorticulturist / AHO.

6.5. The full project cost including the subsidyamount, but excluding the margin moneycontribution would be disbursed as term loanby the bank / FI.

6.6. After disbursing a part of the loan sanctioned,the respective bank / FI will send claim forrelease of the subsidy @ 50% of the loandisbursed by the bank) to the Horticulturist /AHO. The number of claims and release ofsubsidy may be in two installments in the firstyear, one installment each in the second andthird year. The final subsidy claim shall bedisbursed after, disbursement of last installmentof loan.

7. CREDIT LINKED BACK ENDEDASSISTANCE

7.1. Assistance under the scheme would be creditlinked back ended and finally subject to sanctionof the project by the bank / FI based oneconomic viability and commercialconsideration.

7.2. Assistance under the scheme shall be availableon capital cost of the project only. Bank / FI will,however, be free to finance other activities /working capital requirement to meet variousrequirements of the entrepreneur; howeversubsidy will not be available for such activities.

8. SUBSIDY

8.1 Rate of subsidy shall be 50% of the capital costof the project.

8.2 Maximum amount of subsidy shall be restrictedto Rs.10 lakhs for model nursery and Rs.2.0 lakhsfor small nursery.

8.3 The amount of subsidy availed of for the projector any of its components from any other source

shall be deducted from the amount of subsidyadmissible under this scheme. However, subsidyavailed for altogether different componentsindependent of this project will not be a bar.

8.4 The pattern of assistance is as follows:(a) Entrepreneur's contribution- 20% to 30%.(b) Subsidy from NMMP - 50%(c) Bank loan - 30% to 20%,8.5. The repayment schedule will be drawn on the

loan amount in such a way that the total subsidyamount is adjusted after the full bank loancomponent with interest (excluding subsidy) isliquidated.

8.6. The financing bank may also provide workingcapital separately for undertaking the businessby the entrepreneur where ever such situationarises.

8.7. After the loan is disbursed, the project workshall start.

9. RELEASE OF SUBSIDY

9.1. Subsidy for the project under the scheme shallbe released by the Horticulturist AHO forprojects financed by Banks / FI.

9.2. The DDH / Horticulturist / AHO will inspect theproject site periodically and observe the projectprogress before release of subsidy.

9.3. The Horticulturist / AHO will release the subsidywithin 30 days of receipt of claim from the bankor he will communicate the reasons for delay ornon release to bank and the entrepreneur andDirector of Horticulture, Orissa. In case ofdispute,decision of the Director of Horticulture,Orissa shall be final.

10. ADJUSTMENT OF SUBSDIDY INBORROWERS ACCOUNT

10.1.The subsidy amount released by theHorticulturist / AHO will be kept by the Bank inthe subsidy reserve fund account of theconcerned borrower, to be adjusted finallyagainst loan amount of the bank on completionof the project. The adjustment of subsidy willbe in the pattern of back ended subsidy. Suitable

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instructions issued in this regard by the RBIfrom time to time would be adhered to. Nointerest would be charged on this by the Bank.In view of this, for purposes of charging intereston the loan component, the subsidy amountshould be excluded.

10.2.On completion of the project, the concernedbank would inform the Horticulturist / AHOabout the project completion within the overallguidelines of NMMP and project submitted andshall make a request for joint inspection of theproject in presence of the promoter.

10.3.The Horticulturist / AHO will effect jointverification by the technical team constituted bythe Chairman DMC along with the banker andthe entrepreneur.

11. IMPLEMENTATION PERIOD

11.1.The project should be completed within 1 yearfor nurseries already having existing motherplants and 3 years for the newly establishednurseries from the date of actual disbursementof 1st installment of loan. The Bank for both thecases for completion may allow a grace periodof 6 months.

11.2.The last installment of the subsidy amount(limited to 50% of earmarked project cost i.e,10 lakh or 50% of the actual expenditure costwhichever is less for model nursery and limitedto 50% of earmarked project cost i.e,2.0 lakhsor the actual expenditure cost whichever is lessfor small nursery) shall be released by theHorticulturist / AHO to the bank after

verification of the progress.11.3.After full repayment of the loan amount with

interest (excluding the subsidy amount) by theborrower, the subsidy kept in the subsidyReserve Fund Account shall be released by theBank to liquidate the entire loan amount.

12. RECALLING OF SUBSIDY

12.1.In case of default in payment of the loan the bankwill adopt due process of loan recovery.

12.2.The Horticulturist / AHO shall recall the subsidyamount before its liquidation whenever feelsthat the entrepreneur is deviating from theoriginal aim and objective of the project, as perNMMP guideline or any other valid reason withapproval of DMC.

13. UTILIZATION CERTIFICATE

13.1.Bank would submit the utilization certificate ofthe subsidy amount released by theHorticulturist / AHO periodically who in turnshall furnish the U.C to the Secretary,OHDS(NMMP) with his counter signature.

14. MISCELLANEOUS

14.1.NMMP or OHDS shall be fully competent to add,relax, delete or amend any provision forestablishment of Model Nursery or SmallNursery in private sector.

14.2.The beneficiary will erect a signboard (1MX2M)at a prominent place depicting name of thenursery, location & fact of assistance underNMMP along with Logo of NMMP as well asOHDS (NMMP).