MS@F P| MINISTRY OF FOOD PROCESSING INDUSTRIES. GOVERNMENT OF INDIA Ministry of Food Processing Industries Panchsheel Bhawan August Kranti Marg, New Delhi - 110049 Pradhan Mantri Kisan Sampada Yojana b “Scheme for Integrated Cold Chain & Value Addition Infrastructure”. Page 1 of 434, Background The Scheme for Integrated Cold Chain, Value Addition and Preservation Infrastructure (in short, “the Scheme") was launched during 2008 and the original guidelines were notified on 18.03.2010. Based on feedback and consultations with stakeholders, the scheme guidelines were modified on 20.11.2013, 08.08.2014, 29.08.2016, 08.03.2018, 18.01.2019, 17.12.2019 and 08.06.2022 for the purpose of smooth implementation and to achieve the objectives of the scheme. Based on further feedback and experience of implementation of the scheme, the revised guidelines are being issued herewith. The revised guidelines will be applicable to fresh applications received against Expression of Interest (EQ) to be issued by the Ministry for taking up new proposals under the Scheme. 2. Objective The objective of the Scheme is to provide integrated cold chain, preservation and value addition infrastructure facilities without any break, from the farm gate to the consumer in order to reduce post-harvest losses of non-horticulture produce, dairy, meat, poultry, and marine/ fish (except shrimp). This will enable linking producers to food Processors and market through a well-equipped supply chain and cold chain, thereby ensuring remunerative prices to farmers and year-round availability of food products to consumers. 3. Eligible Entities Integrated cold chain and value addition infrastructure projects can be set up by any individual J Central & State PSU / Joint Venture / NGO / Cooperative / Self Help Group (SHG) / Farmer Producer Organizations (FPO) / Farmer Producer Company (FPC) / Public & Private Sector Companies / Limited Liability Partnership (LLP)/ Partnership Firm / Proprietorship Firm with business interest in cold chain solutions and also by those who manage supply chain. 4. Components of the scheme 4.1 The scheme will have the following Project Components: a. Farm Level Infrastructure (FLI), which may include processing centre, situated in the catchment area of the targeted produce. Location of FL! must mandatorily be indicated in the DPR as well as bank appraisal note. b. Processing Centre (mandatory component) - indicative list in para- 5.1 below. ¢. Distribution hub - This shall have a modem multi-product, multi-temperature cold storage. It may also include one or more of the facilities mentioned in paragraph 5 below depending upon the business pian of the project. d. Refrigerated vans/ refrigerated trucks/ insulated vans/ mobile insulated tankers. Cha. Page 2 of 434,2. To avail financial assistance under the Scheme, FLI as mentioned at sub- paragraph 4.1(a) & 4.1(b) along with at least one component out of sub-paragraph 4.1(c) and sub- paragraph 4.1(d) needs to be set up. 4.3. Standalone facilities/ components will not be considered for assistance under this scheme. 5. le Facilities for calculation of grant-in-aid 5.1 Assistance under the Scheme can be availed for creation of the following facilities: a. Mechanized sorting & grading line/ packing line/ staging cold rooms. b. Cold Storage Unit(s) /Controlled Atmosphere (CA) /Modified Atmosphere (MA) ‘Storage unit(s) [Associated with value addition]. c. Frozen Storage/ Deep freezers [Associated with value addition]. d. IQF line, Tunnel/ Spiral/ Blast/ Plate Freezer @. Milk Chilling/ Bulk Milk Cooling/ Automatic Milk Collection Unit/ Milk Processing Unit (including packing) for which temperature control is necessary during some part of the processing. Note: Maximum 10 Milk Chilling or Bulk Milk Cooling or Automatic Milk Collection Unit can be assisted per project Poultry/ Meat/ Marine/ Fishery Processing Unit Packaging line for chilled/ frozen/ temperature-controlled products Refrigerated! insulated transport. Pre-Cooling Unit(s)’ Mobile pre-coolers. j. Vacuum Freeze Drying k. Retail refrigerated carts, temperature controlled solar powered retail carts Note: maximum 6 such carts can be considered per project. |. Reefer Boats Note: maximum 5 such boats can be considered per project. m. Refrigerated Containers including multi-modal container units. n, Renewable/ alternate energy technologies (solar, biomass, wind ete.) for the project. Note: ©. Accessories/ support infrastructure/ utilities such as fixed racking system in Cold/CA storage, forklifts, reach trucks, insulated fish boxes, dock levelers, mezzanine flooring, ETP, boiler, GIP unit, Slicer/ Dicer, sorting/ grading line, etc. xem 1aximum permissible cost is Rs.36 lakh per project. p. In-house product testing laboratory q. Any other modern technology for temperature-controlled storage, processing, value addition and preservation infrastructure t. The integration of Artificial Intelligence (Al), Intemet of Things (loT), and Supervisory Control and Data Acquisition (SCADA) in the project for enhancing automation, efficiency, and quality control. s. Toilets, septic tank, drainage and such other facilities. Roa, Page 3 of 436. Ineligible items for calculation of grant-in-aid ‘Compound wall Approach road/ internal roads Cost of land and site development Administrative office building Canteen Labour rest room and quarters for workers Security/ guard room or enclosure Non-technical civil works not related to the components of the scheme Ferre aoge Margin money, working capital and contingencies, Fuel, consumables, spares and stores Transport vehicles other than controlled temperature vehicles Pre-operative expenses Service charges, carriage & freight charges or other such charges/ fees Expenditure on painting of machinery ‘AC ducting, furniture, computers and allied office items mee Closed Circuit TV Camera and security system related equipment Consultancy fee, taxes, etc. on plant and machinery Stationery items Plant & machinery not directly related to components of the scheme Fly catchers, hand washer, laundry Reconditioned/ refurbished/ second hand/ old plant & machinery v. Consumables (such as Plastic crates, bins, Pallets, etc.) w. Food Irradiation chamber. Note: The list is only indicative and the Project Approval Committee constituted by the Ministry will be the final authority to decide on ineligibility or otherwise of items for purpose of grants-in-aid/Subsidy. repos g Eligibility criteria a. The combined net worth of the applicant should be at least 1.5 times of the grants-in-aid/Subsidy sought for from the Ministry in respect of General Areas and at least equal to the grants-in-aid/Subsidy sought for in respect of Difficult Areas or proposals from SC/ST or Farmer Producer Organisations or Self-Help Groups. Provided further that in case of proposal from SC/ST category, the sum of net worth of ‘SC/ST member(s) shall not be less than 10% of the combined net worth of the entity. Provided also that in case of proposal from Central Government (including entities/ organizations under the Central Government) or State Government (including entities/ organizations under the State Government), no net worth criteria will be applicable. Note: The net worth of applicant will be calculated as per Appendix! b. Final term loan sanction letter (for a fresh proposal) from a Bank. Sie Page 4 of 43Provided that in case of the proposal from Central Government (including entities! organizations under the Central Government) or State Government (including entities/ organizations under the State Government), term loan from the bank is not mandatory. Note: (i) The date of sanction letter of term loan should not be earlier than the date of issue of Expression of Interest inviting applications under scheme. (ii) Bank for the purpose of availing term loan means a Scheduled ‘Commercial Bank or a Financial Institution recognized by Reserve Bank of India, or a non-banking financing company approved by the Reserve Bank of India. Term loan from the Bank for an amount not less than 20% of the total project cost in respect of proposals from General Areas. In case of proposals from Difficult Areas or proposals from SC/ST or Farmer Producer Organisations or Self-Help Groups, term loan amount shall not be less than 10% of the total project cost. Note: Difficult Area for proposals under this Scheme means North-Eastern States (including Sikkim), State of Uttarakhand, State of Himachal/ Pradesh, Union Territories of Jammu & Kashmir and Ladakh, State Notified /TOP (Integrated Tribal Development Projects) areas and Islands (Union Territories of Andaman & Nicobar and Lakshadweep) A detailed Appraisal Note from a Scheduled Commercial Bank// NABARD/ SIDBI/ NEDFi specific to the project proposal. Note 1: In case the proposal from Central Government (including entities/ organizations under the Central Government) or State Government (including enitities/ organizations under the State Government), term loan from the bank is, not mandatory, however, detailed appraisal note from a scheduled commercial bank/ SIDBI/ NABARD/NEDFi is required. Note 2: Detailed Project Report/ Techno-Economic Viability Report merely stamped or endorsed by the Scheduled Commercial Bank /NABARD/ SIDBI/ NEDFi without detailed Appraisal Note shall not be considered as valid for the purpose of these Guidelines. Infusion of equity of at least 20% of the total project cost for proposals from General Areas and 10% of the total project cost for proposals from Difficult Areas or SC/ST or Farmer Producer Organization or Self-Help Groups. Note: The value of land in registered sale/ lease deed shall not be considered as part of the total project cost. Unsecured loan will not be treated as a part of equity. Only one application will be accepted from an entity against an Expression of Interest under this scheme. Expansion/ upgradation of existing facility(ies) is not eligible under this Scheme. No second proposal from an entity or promoter(s) of an entity, who have availed grants-in-aid/Subsidy earlier under this Scheme will be entertained, Entities or promoter(s) of entities who have availed financial assistance under any other sub-scheme of PMKSY will be eligible for grants-in-aid/ Subsidy only after two years from the date of commercial operation of the previous project up till the date of closure of the EOI. Pan Page 5 of 43Provided that an entity or partner(s) of an entity shall not be eligible for financial assistance for more than two projects during a period of 10 years under any sub-components of PMKSY scheme of MoFPI 8. Fee and Performance Security a. The entities applying for financial assistance are required to submit a non- refundable fee of 20,000/- (Rupees twenty thousand only) through Demand Draft in favour of "Pay and Accounts Officer, Ministry of Food Processing Industries, New Delhi". Provided that the non-refundable fee shall be Rs.15,000/- (Rupees fifteen thousand only) for applications from SC/ST. b. On being selected for financial assistance by the Ministry, the successful applicant shall submit, a refundable bank guarantee as Performance Security for 5% of eligible grants-in-aid/Subsidy valid up to 32 months from the date of approval or valid up to the date of acceptance of the evaluation report of the project by the Ministry (submitted by PMA), whichever is later, within 30 days of issue of approval letter by the Ministry. Provided that in the event of falsification of information/non-compliance of Guidelines and/or terms and conditions of the approval letter by the PIA and in case the project is cancelled or withdrawn or the project is not completed by PIA, the Ministry shall forfeit/ encash such Bank Guarantee. 9. Application Filling and documents required a. All applications shall be submitted online on the SAMPADA Portal of the Ministry. No physical application will be accepted, and such application shall be summarily ignored. Applicants are required to submit following documents: Note: |. All pages of all documents submitted online must be self-attested by the applicant or authorised signatory (supporting documents for such authorization to be furnished) of the entity. I The Ministry will not be responsible for delay in submission of any proposal within the prescribed time limit indicated in EOI, and such proposals (not received in time) shall not be considered. Incomplete information or deficient documents submitted/ uploaded by the applicant may lead to rejection of proposals. Ill Mere submission of application (with required documents) against EO! does not confer any right on the applicant for claim of grants-in-aid/Subsidy under the Scheme. Grants-in-aid/Subsidy will be sanctioned based on merit, compliance of scheme guidelines and evaluation of the proposal as per the assessment criteria, 1V. When original documents are in regional language, they should be accompanied by self-certified English/Hindi translation b. Detailed Project Report (DPR) (proforma at Appendix-2) indicating financial and technical profile of the entity, domain expertise available with the entity, raw material Cla, Page 6 of 43availability in the area where project is proposed to be set up, arrangements for procurement of raw material, marketing strategy of proposed products, process flow diagram of proposed products with production capacity per day, technology proposed for various activities in process line, financial estimates with key financial parameters, profit and loss statement, estimated employment generation from the project (direct as welll as indirect), number of farmers estimated to be benefited etc. ¢. CAV Statutory Auditor certificate (prepared in accordance with statutory provisions read with conditions indicated in Appendix-1) in support of net worth along with other documentary proofs as applicable or prescribed. d. CA/Statutory Auditor Certificate as per Appendix-3, Charter Engineer (Civil) Certificate as per Appendix-4 and Charter Engineer (Mechanical) Certificate as per Appendix-5 e. Final term loan sanction letter from a Bank as defined in para 7 of the guidelines. f. A detailed Appraisal Note, specific to the project proposal, from a Scheduled Commercial Bank// NABARD/ SIDBI/ NEDFi. g. Certificate of incorporation/ registration, Memorandum and Article of Association, bye laws, PAN, TAN, SC/ST certificate (whichever applicable). h. Biodata/ background/ experience of the entity relevant to the scheme, i. Annual reports and Audited Financial Statement of Accounts for last two years (f applicable). j. Details of land (on ownership basis or leasehold) along with relevant documents. In case of lease, the registered lease deed shall be for a period of a minimum15 years in the name of the applicant/ applicant firm from the date of submission of application for the relevant Eol. In case land for the project has been taken on lease from State Government! its entities, the policy of respective State Government in this regard will be followed. Note: Self-attested English/ Hindi version needs to be submitted in case such document is in regional language k. Proof of submission of requisite fee, |. Quotations from Original Equipment Manufacturer (or its authorised dealer/ supplier) in respect of Plant & Machinery and equipment for the proposed project. m, Correspondences (emails/ letters) for possible forward or backward linkages. Note: All pages of the proposal are to be properly numbered and the proposal should contain an Index as first page of the proposal indicating the various documents submitted along with page number, failing which the proposal is likely to be rejected. 10. Selection of Proposals for Financial Assistance a. Proposals will be invited by the Ministry through Expression of Interest (EO!) Applications can be filed only online on the Ministry's SAMPADA Portal (https://www.sampada-mofpi.gov.in) when the EO! is open. b. The Ministry will constitute a Technical Committee (TC) and a Project Approval Committee (PAC) for scrutiny/ consideration’ approval of proposals received against EOI. Technical Committee and Project Approval Committee may be assisted by Project Management Agency(ies) (PMA) to be appointed by the Ministry. . CR nN 27 of 43The Technical Committee so constituted shall also function as Technical Committee (or by whatever name it was called) for the purpose of previous guidelines. The Project Approval Committee so constituted shall also function as Inter-Ministerial Approval Committee (or by whatever name it was called) for the purpose of previous guidelines. |. The Technical Committee will scrutinize applications with respect to prima facie eligibility based on the eligibility criteria forthe schemes. The proposals found prima facie eligible will be evaluated inter-alia on the basis of technical parameters as well as assessment criteria as per Scheme Guidelines (given at Appendix-6). . A proposal will have to obtain a minimum of 60% marks as per Technical Committee (TC) evaluation in order to become considered /shortlisted for making presentation Provided that the minimum marks will be 45% for an applicant belonging to SC/ ST. The Ministry shall inform the applicants whose proposals are rejected (either based on eligibility criteria or technical parameters or assessment criteria) along with the reasons for such rejection by the Technical Committee after completion of the selection process. Provided that before conveying rejection of a proposal, the approval of the Secretary of the Ministry shall be sought, ‘An applicant aggrieved with rejection of its proposal may prefer an appeal before the Project Approval Committee within a period of 30 days from the date of communication by the Ministry detailing the grounds of such appeal. In respect of proposals that are found eligible for consideration of grants-in- aid, recommendation(s) of the Technical Committee will be placed before Project Approval Committee for consideration and approval or otherwise. Presence of applicant or its authorized representative (in-person or virtually) is expected (to explain its proposal, if required) during meetings of the Technical Committee and Project Approval Committee. The applicant/ authorized representative, when asked by Project Approval Committee (PAC), shall make a presentation regarding its proposal. The merit/ select list will be prepared based on the combined score. In case of eligible proposals having equal marks, preference will be given to the proposal envisaging higher eligible project cost. CRN Page 8 of 431 m. The decision of the Ministry shall be final regarding eligibility or otherwise of the proposals, selection of proposals for grants-in-aid/ Subsidy and quantum of grants- in- aid/Subsidy approved. n. The Ministry will issue approval letter to the successful applicants giving, inter alia, details of project, total project cost, eligible project cost, approved grants- in-aid/ Subsidy, completion schedule of the approved project and other relevant details. ©. The Ministry shall inform the applicants whose proposals are not approved by PAC along with the reasons. p. Once approval letter is issued by the Ministry, the applicant has to provide Acceptance Letter as per prescribed format (Annexure-1) and notatized Affidavit on Rs.100 non-judicial stamp paper as per prescribed format (Annexure-2) along with countersigned copy of Approval Letter and Bank Guarantee (BG) as applicable with in a period of 30 days from the date of communication of approval by the Ministry. @. Once Acceptance Letter and Affidavit is given, the applicant will be called as Project Implementing Agency (PIA). |. Pattern of assistance a. Grants-in-aid/Subsidy will be @35% of eligible project cost for projects in General Areas and @50% of eligible project cost for projects in Difficult Areas as well as for projects of SC/ST, FPOs and SHGs, subject to the maximum of Rs. 10 crore per project. b. No upward revision, for any reason whatsoever, in approved grants-in-aid/ Subsidy will be considered. c. In case of proposals requesting for downward revision of eligible project cost on account of dropping of any of the approved components, the grants-in-aid/Subsidy will be reduced in proportion to the reduction in the eligible project cost. Such cases shall be placed before the PAC for consideration, d. No grants-in-aid/Subsidy shall be payable on any expenditure towards eligible ‘components of the project, of any nature whatsoever, made before the date of issuance of approval letter by the Ministry. The same shall be verifiable from bank statement! invoices to he submittad at the time of request for release of various instalments of grants-in-aid. e. Grants-in-aid/Subsidy will be considered in respect of eligible project components only. f. Cost Norms issued by the Ministry or the Mission for Integrated Development of Horticulture (MIDH) under Department of Agriculture, Co-operation and Farmers CRw Page 9 of 43Welfare of the Ministry of Agriculture & Famers Welfare will be followed, wherever available. g. Proposals received from entities where Scheduled Caste (SC)/ Scheduled Tribe (ST) hold at least 51% stake, will be treated as SC/ST proposals. fh. If there is any reduction in stake of SC/ST below 51% during implementation of the Project, such projects shall be cancelled and grants-in-aid/Subsidy released, if any, shall be ordered to be recovered with 10% annual interest. i. Grants-in-aid/Subsidy will be released subject to availability of funds. 12, Dovetailing of Assistance Considering the complexities and challenges associated with agricultural infrastructure projects of this nature, PIA may dovetail assistance available under various other schemes of other Central State Governments, which would improve the viability of the project. While dovetailing such assistance, it will be ensured that there is no duplication of assistance for the same component! activity of the project, 13. implementation schedule and extension in timelines: a, Time for completion and operationalisation of projects will be 24 months from the date of issue of approval letter for projects in General Areas and 30 months for projects in Difficult Areas. », Time schedule may be extendedidelay condoned by Secretary of the Ministry beyond the period as indicated at clause-13(a) on account of events of force majeure. There shall be commensurate relief towards timelines without deduction in grants-in-aid/Subsidy if such an extension is granted. Note: Force majeure for the purpose of this Guidelines means act of god including drought, fire and explosion, earthquake, landslide, flood, cyclone and such other events; any unlawful, unreasonable or discriminatory action on the part of an Indian Governmental instrumentality which is directed against the project provided that a competent court of law declares the action to be unlawful, unreasonable and discriminatory and strikes the same down; war, invasion, armed conflict or act of foreign enemy, blockade, embargo, revolution, riot, insurrection, terrorist or military action; industry wide strikes and labour disturbances, having a nationwide impact in India; a pandemic; or an event declared as an event of force majeure by Government of india for whole of India or a State Government for whole of State where project is located. ¢. Extension/condoned up to six months beyond the period as indicated in clause-13(a) on account of delay (except for reasons of force majeure) in completion of the projects may be granted by concerned Additional Secretary! Joint Secretary of the Ministry, while extension/condoned beyond six months may be granted by the Project Approval Committee. Imespective of any such extension in timelines for completion of the projects, deduction in grants-in-aid will be on basis of implementation schedule as per sub-clause-13(a) above and clause 18 of these guidelines. CAN and Page 10 of 43, Extension in timeline may be granted for maximum period of six months at a time. Any extension under clauses (c) and (d) shall be in consultation with Financial Advisor of the Ministry. 14, Change in components and cost of project ‘a. The following can be approved by the concerned Additional Secretary/ Joint Secretary: L Reduction (without change in equipment, civil work) in eligible project cost. Il Change in Bank II Change in shareholding pattern/ Board of Directors. IV. Change in location of the facilities other than main facility/ centre. V. Change in means of finance. b. Change in components or cost of the project, other than that at (a) above, shall require approval of the Project Approval Committee. 15. Release of grants-in-aid/Subsidy a. The grants-in-aid/Subsidy will be released in three (3) equal instalments. b. Schedule for submission of claims for release of instalments (from the date of issue of approval letter) will be as under: [SI. No. [Particulars [General Areas Difficult Areas 1. 1* instalment Within 8 months Within 10 months: 2. [2 instalment |Within 16 months Within 20 months 3. [37 instalment Within 24 months |Within 30 months c. Claim for instalments may be clubbed subject to compliance with requirements of the highest claimed instalment. d. Before release of every instalment of grants-in-aid claimed by PIA, the Ministry will get the project visited and verified by PMA. e. Before release of 3rd & final instalment, the Ministry will get the project visited by Joint inspection team comprising MoFP! officials, PMA and Bank verifying the actual physical progress of the project at the ground including commercial production. f. Apart from visit by PMA, the Ministry may also depute its officials or consultants! experts or any other person(s) to inspect the project before release of instalments. g. Advance up to 10% to vendors of technical civil work and plant & machinery will be allowed at the time of release of all instalments except last instalment. h. All the transactions out of the grants-in-aid/Subsidy shall be uploaded on EAT (Expenditure, Advance, Transfer) module of PFMS (Public Financial Management ‘System) and the same will be monitored by the Ministry. Cay Page 11 of 43PIA needs to open three dedicated bank accounts with respect to (i) contribution by PIA, (i) Term Laon form the bank and (i) grants-in-aid/Subsidy from the ministry for implementation of the project. Expenaiture on the implementation of the project shall be from these accounts only. Every page of documents uploaded on the SAMPADA Portal of the Ministry for claiming release of grants-in-aid shall be signed by PIA or authorized representative of PIA. Before release of the final instalment, it has to be prominently displayed on the front of the project/ sides of the vehicles, stating that the "Project is assisted by the Ministry of Food Processing Industries, Government of india’. Before release of final instalment of grants-in-aid/Subsidy, eligible grants-in- aid/Subsidy for the project will be recalculated based on the appraised/ actual cost, whichever is less, for the already approved items and grants-in-aid/Subsidy will be released accordingly. 16. Requirement of document before release of instalments A. First instalment (one-third of grants. () (i) (ily aid/Subsidy) — Details of the three bank accounts with respect to (i) contribution by PIA, (ii) term loan from the bank and (iii) grants-in-aid/Subsidy from the Ministry. ECS mandate form in prescribed format (Annexure-3) for the bank account related to grants-in-aid/Subsidy. Certificate from Chartered Accountant to the effect that the expenditure on eligible components of the project has been incurred after the date of issue of approval letter by the Ministry. (IV) Certificate from Chartered Accountant in prescribed format (Annexure-4) ™“ wv) (vil ul confirming expenditure of one-third of the eligible project cost on the eligible project components of the project. Certificate from Chartered Engineer (Mechanical) and counter-signed by PIA or authorized representative of PIA in prescribed format (Annexure-5) in respect of plant and machinery indicating item-wise progress on approved components, cost, quantity, manufacturers/ suppliers and comment on quality and status of implementation. All P & M has to be new and with unique machine number and month /year of manufacture. Certificate from Chartered Engineer (Civil) and counter-signed by PIA or authorized representative of PIA in prescribed format (Annexure-6) in respect of civil work indicating item-wise progress on approved components, cost, quantity, manufacturers/ suppliers and comment on quality and status of implementation. The certificate must also indicate that all civil construction of project is new in nature, including material used, ) _ Geo-tagged photographs of the project from various angles and locations. I) Notarised Surety Bond in prescribed format (Annexure-7) on non-judicial stamp paper of not less than Rs.100/- Note: 1. Original copy of Surety Bond shall be submitted to Ministry. CRY Page 12 of 43(WX) (x) (xl) (xt) «xl (xiv) ll. Surety Bond is not required to be executed by the Central/ State Government Department's P/As. Bank Certificate regarding status for release of term loan to the project from the Bank. (Annexure-8) Consent to Establish’ NOC from Pollution Control Board/ Agency. Approved building plan of the main facility from the relevant competent authority, if applicable. Self-attested English/ Hindi version of main facility land document in support of land title (ownership/ leasehold) in the name of PIA. Note: In case of leasehold land, the registered lease deed should not be less than 15 years. Change Land Use (CLU) from relevant State Authority/Agenoy. Compliance of any other terms & conditions mentioned in the approval letter of the Ministry. Second instalment (one-third of grants-in-aid/Subsidy) — vl vil vill. Certificate from Chartered Accountant to the effect that the expenditure on eligible components of the project has been incurred after the date of issue of approval letter. Certificate from Chartered Accountant in prescribed format (Annexure-4) confirming expenditure of two-third of the eligible project cost on the eligible project components of the project. Certificate from Chartered Engineer (Mechanical) and counter- signed by PIA or authorized representative of PIA in prescribed format (Annexure-5) in respect of plant and machinery indicating item-wise progress on approved ‘components, cost, quantity, manufacturers/ suppliers and comment on quality and status of implementation. All P & M has to be new and with unique machine number and month /year of manufacture. Certificate from Chartered Engineer (Civil) and counter-signed by PIA or authorized representative of PIA in prescribed format (Annexure-6) in respect of civil work indicating item-wise progress on approved components, cost, quantity, manufacturers/ suppliers and comment on quality and status of implementation. The certificate must also indicate that all civil construction of project is new in nature, including material used. Bank Certificate regarding status for release of term loan to the project from the Bank.(Annexure-8) Geo-tagged photographs of the project from various angles and locations. Documents confirming that at least 50% of term loan has been released by the Bank, Self-attested English/ Hindi version of 65% of other facilities of the approved project, land document in support of land title (ownership/ leasehold) in the name of PIA. Note: In case of leasehold land, duration of registered lease should not be less than 15 years. ‘Compliance of any other terms & conditions mentioned in the approval letter of the Ministry. CY: Page 13 of 43©. Third instalment (one-third of grants-in-aid/Subsidy) will be released to the PIA as reimbursement after completion of the project (utilization certificate for 3 instalment is ne 1 Mi vil. vil XI xl Xi jot required), subject to fulfillment of following conditions: Certificate from Chartered Accountant to the effect that the expenditure on each of the components of the project has been inourred after the date of issue of approval letter. Certificates from chartered Accountant in prescribed format (Annexture-4) confirming expenditure of full amount of project cost, Certificate from Chartered Engineer (Mechanical) and counter- signed by PIA or authorized representative of PIA in prescribed format (Annexure-5) in respect of plant and machinery indicating item-wise approved components, cost, quantity, manufacturers/ suppliers and comment on quality and status of implementation i.e., installed & commissioned. It should be mentioned in the certificate that all the approved P & M has been installed and commissioned and that the P & M are new and with unique machine number and month /year of manufacture. Certificate from Chartered Engineer (Civil) and counter-signed by PIA or authorized representative of PIA in prescribed format (Annexure-6) in respect of civil work indicating item-wise approved components, cost, quantity, manufacturers/ suppliers and comment on quality and status of implementation i.e., completed. The certificate must also indicate that all civil construction of project is new in nature, including material used Bank Certificate regarding status for release of term loan to the project from the Bank.(Annexure-8) Geo-tagged photographs of the project from various angles and locations. Documents confirming that full term loan has been released by the Bank, Copy of registration certificates of vehicles, if applicable. Consent to operate from Pollution Control Board/Agency. Copy of license (if applicable) issued under FSS Act, 2006. Self-attested English/ Hindi version of 100% of other facilities of the approved project, land document in support of land title (ownership/ leasehold) in the name of PIA. Note: In case of leasehold land, duration of registered lease should not be less than 16 years. Compliance of any other terms & conditions mentioned in the approval leller of the Ministry. Proof of prominent display on front of the project/sides of vehicles stating that the “Project is assisted by the Ministry of Food Processing Industries, Government of India’, supported by photographs. 17. Monitoring and evaluation a b, The Ministry may take assistance of Programme Management Agency (PMA) in scrutiny, examination, monitoring and evaluation of proposals received against EO! and for conduct of site inspections of approved projects The Ministry may also constitute a panel of consultants/ experts for undertaking inspection of projects sanctioned under the schemes. = Page 14 of 43c. PMAs and/or consult accordance with preva d. Pre and post approval inspection may be undertaken by the Ministry as required (PMA may also be assigned inspection and monitoring works) to find out the physical, financial and operational progress. It will be binding on the entity to allow inspection/ physical verification of the unit at any time by representatives of Ministry or an authorised representative of the Ministry. its/ experts shall be selected in a transparent manner in norms of the Government. 48. Non-Implementation or delay in implementation of project and adjustment deduction and recall of grants-in-ai a. PIA shall make all possible efforts to complete the project as per the stipulated timelines (24 months in General Areas and 30 months in Difficult Areas). b. In case of non-adherence to the stipulated timelines, the approved grants- in-aid shall be reduced as below (irrespective of any extension in timelines or condonation of delay except for reasons of force majeure): Delay deduction in grants-in-aid Up to three months - Nil More than 3 months and up to 4 months 1.0% More than 4 months and up to 5 months 2.0% More than 5 months and up to 6 months 3.0% More than 6 months and up to 7 months 4.0% More than 7 months and up to 8 months 5.0% | More than 8 months and up to 9 months 6.0% _| More than 9 months and up to 10 months 7.0% | More than 10 months and up to 11 months 8.0% More than 11 months and up to 12 months 9.0% More than 12 months 10.0% cc. The decision of the Ministry shall be final and binding on PIA on period, quantum and deduction in grants-in-aid. d, The Ministry shall have the right to close a project at any stage, after recording reasons thereof, with or without directions as to refund of grants-in-aid released. e. Ifatany point of time, it comes to the notice of the Ministry that grants-in- aid has been availed by manipulation/ concealment of information’ facts, such grants-in- aid released by the Ministry shall be refunded along with interest @10% per annum. Manipulation/ concealment of information/ facts may also attract other civil/ criminal liabilities in terms of prevailing laws. {Inthe event of PIA withdrawing from executing the project, the grants-in-aid amount released to it (along with penal interest @10% per annum) will be returned by PIA to the Ministry within 30 days of communication for refund of such grants-i aidisubsidy. Bank Guarantee submitted (as performance security) shall be forfeited g. Incase of the failure on part of PIA to refund the grants-in-aid amount (or interest thereon) as directed by the Ministry, the due amount will be recovered as an arrear of land revenue as per the relevant laws in force. Bs Page 15 of 4319. 20. neous Provisi a. Interpretation of the Ministry as regards provisions of the Guidelines and/or approval letter issued by the Ministry shall be final and binding on PIA b. The Ministry may seek any clarification or direct to submit any document information from the applicant or the PIA at any stage of implementation of the project. c, The Ministry may inspect the premises of the project during implementation of the project. For this purpose, it may depute its officials, PMA or any other person(s) as deemed fit. Such inspection may be undertaken in-person or through virtual mode. PMA or its successor, if any, shall extend all support and cooperation in any such inspection. d. PIA will comply with requirements of cold chain infrastructure as per directions of Ministry of Environment, Forests & Climate Change, Government of India with respect to use of non-ODS (non-Ozone Depleting Substances) and low- GWP (Low Global Warming Potential) refrigerants-based energy-efficient cooling systems. e. The applicant organisation will follow/abide by GFR, which are revised from time to time by Govt. of India. Jurisdiction of court Any disputes, including selection of proposals or release of financial assistance, arising out of implementation of the guidelines will be subject to courts/tribunals having jurisdiction over Delhi Ch~ Je 16 of 43CALCULATI RTH (Only on the basis of the supporting documents) In respect of companies (Private/ Public Limited) registered under Companies Act, 1956 or Companies Act, 2013: a. The net worth will be ascertained based on the paid-up share capital of the company and reserves created out of profits b. Revaluation reserves only in respect of land & building may be considered for ascertaining the net worth, which will be based on circle rates duly supported by circle rate notification and land ownership documents. Such revaluation reserves shall also be reflected in forward going balance sheet of the company. c. Share application money would be considered towards calculation of net worth provided the same has been converted into Paid up Capital within stipulated time as per Companies Act but, in any case, it should be converted into paid up capital before submission of the proposal to the Ministry. d. A latest audited balance sheet duly certified by the Statutory Auditor of the Company needs to be submitted for ascertaining the net worth. e. Where a significant portion of its net worth stands invested in equity shares of unlisted companies or is shown as loans & advances to various parties with nil or negligible income/ revenue, then following additional documents would be required to be submitted by the applicant to ascertain the net worth: |. Details of Investments made in unlisted companies by the applicant company, ll, Audited Financial Statements (AFS) for the previous year or latest audited Balance Sheet of the companies wherein the investment has been made, II, Details of loans & advances along with reasons/justification for the same, IV. In case it is observed that the equity contribution made by the promoter company has been utilised by the investee company in creating tangible assets/ Capital work in progress in projects which are under execution then such investments in shares would be considered at face value. v. However, in case it is observed that the investment by the promoter company is further being reinvested by the investee company in equity shares of unlisted companies or given away as long term/short term advance to individuals/ related party/ other companies and the investor company has nil/ negligible income/ revenue, then no additional clarification shall be asked for and the net worth of such promoter company shall be considered after deducting such investments/loans & advances. f. In case of newly formed companies, net-worth of individual promoter(s)/ director(s)/ shareholders(s) will be considered to assess the combined net-worth, Entities other than companies (viz. Proprietorship/ Partnership firms! NGOs/ Cooperatives/ SHGs/ LLPs/FPOs) The net worth will be ascertained on the basis of latest balance sheet of individual proprietor/partner(s) i.e. assets minus all liabilities, duly certified by the Chartered Accountant (CA). Assets include cash, current value of investments, stocks, debtors Page 17 of 43vu. (supported by documentary evidence), land and building (supported by valuation report at circle rate, circle rate notification and land ownership documents), Plant & Machinery, Bonds, cash value of ife Insurance, current total balance of savings, current or fixed deposit accounts. The following methodology shall be adopted for determining the net worth: The following methodology shall be adopted for determining the nel worth: a. Net-worth would be sum of the net-worth of the Individual partners and the partnership firm (avoiding duplication of the investment in the partner's capital account of the firm) & the investments of each individual partner towards the partnership firm. 'b. If the applicant is ongoing partnership/ proprietorship firm and the applicant has submitted audited balance sheet of such partnership/ proprietorship firm, net worth based on the audited balance sheet will be taken into consideration. However, if the net worth as per balance sheet is insufficient, then the CA certified statement of Assets and Liabilities of the individual Partners/ Proprietors will be taken into consideration provided assets are supported by relevant documents as per the guidelines. ¢. However, since ina partnership! proprietorship firm, liability of partners/ proprietors is unlimited, therefore the applicant should submit CA certified "Nil Liability Statement" or Statement of "Assets and Liabilities" of the individual partners/ proprietors and the net liabilities based on these statements will be deducted while ascertaining the net worth, The aforesaid net worth components need to be supported by relevant documents and Income Tax Returns (ITRs). Shares of unlisted companies will be considered at face value for net worth and shares of listed companies will be considered based on the average market price of the share for a period of 6 months prior to date of submission of proposal Assets such as car, jewellery, antiques, gold.cash in hand etc. would not be considered for net worth. Loans and advances given to group companies related concerns/ individuals will also not be considered towards computation of net worth. In the case of proposed shareholders, if there is cross holding of the net-worth amongst the Members (e.g. both a company as well as the shareholders that company are the proposed shareholders), the net-worth of the company would be considered in full, however, net-worth of the individual would be considered only to the tune after discounting its shareholding in the company which is 2 proposed shareholder. The applicant(s) will have to give a self-certification regarding the details of the encumbrance of the property submitted by them towards the net worth, Note: In case of newly formed companies (expect listed companies) for the purpose of setting up integrated cols chain projects, the net worth of the share-holders of the company would be considered in the same manner as in case of partnership firms. However, if, one of the constituent of the newly formed company is a corporate entity, the net worth of the corporate entity will be considered to assess combined net worth. Note- A company will be treated as newly formed, if it has been formed with the objective of food processing business and has not commenced commercial CB Page 18 of 43operations as on the date of submission of application to the Ministry, which should be supported by appraisal note from the Bank/Financial Institution and In such cases Balance Sheet/Financial Statement along with Memorandum of Association filed with the RoC for each year since incorporation will be required in support of proof of non- commencement of commercial operations. Page 19 of 43Template of DPR Appendix - 2 a. Name of the applicant/ company/ firm with details of registration no. of company/ firm along with names of the di irectors/promoters in the prescribed format SNo. Particulars Details i. | Name of Applicant Legal Status of Applicant (Govt. Institution 7 i, | o"ganisation, NGO, Co-operative) Company! partnership firm/ proprietorship, Farmer Producer Company, Self Help Group, etc.) iii____| Registration No. of Applican/GIN iv. _ | PAN of Applicant vy. _| Whether located in Northeast States, Himalayan *_| States, Islands & TDP Areas vi, | Whether Women lead promoter belong to "| ScisTAomen b. Contact details of the Promoter(s)/Partner(s) including addresses, telephone, mobile, fax, e-mail, website, PAN etc. s | Name of | Address | Telephon | Mobil No. | Promoter(s)/Partner(s) eNo. |e No. E- | PAN | Any mail | No. | othe Id r details Please add additional rows, if needed. . Experience of the lead Promoter(s)/Partner(s)/ Applicant Entity in Food Processing, Cold Chain (PI. enclose documentary evidence regarding experience and turnover) s Name of the lead Details of Details of — | Supporting No, Promoter(s)/Partner(s) | Experience | Turnover _| documents pplicant entity (Year Wise) | attached, if any (YesiNo) d. Project Details: a. Components under the scheme as applicable to the project: Numbers Proposed SNo. ‘Components Distribution Hub Farm Level Infrastructure | Reefer/ Insulated Vehicles V. [Processing Facility, if any, proposed to be setup Che SS Page 20 of 43