• Deepak Yadav

How to get subsidy for setting up a hydroponic farm?


If you are looking for the answer to this question, then you might already know about hydroponics. Hydroponics is a method of growing crops, mainly vegetable crops in a soil-less medium within a climate-controlled environment.

Hydroponic farming is one of the latest technological advancements in the field of agriculture. Hydroponic farming in India is getting popular as the demand for fresh and local food increased, mainly in the urban regions of the country.

The National Horticulture Board of India provides the subsidy for a hydroponic farm set up under the Scheme-1 named Development of Commercial Horticulture through Production and Post-harvest Management of Horticulture Crops.

Projects associated with the establishment of hi-tech, commercial production units of hydroponic are open for support under this scheme. These projects must be credit-linked to be eligible for the subsidy.

Eligibility criteria or Applicant's eligibility:

Individuals, Farmers Producer Organization (FPOs), Group of Farmers, Self Help Groups (SHGs), NGOs, Co-operative Marketing Federations, Partnership/Proprietary Firms, Companies, Cooperatives, Agricultural Produce Marketing Committees, Agro-Industries Corporations, and other concerned organizations are eligible to get subsidy under the scheme of National Horticulture Board.

Limits of Financial Assistance:

The family or legal entity considered as a unit when judging the eligibility in making the application or when availing the subsidy under the National Horticulture Board Scheme.

Under the Production Development component, the highest subsidy that can be availed by an applicant is the maximum permissible subsidy under the National Horticulture Board Scheme guidelines as valid on the date of application under which they applied.

The Pattern of Financial Assistance:

· Credit linked back-ended subsidy @ 50% of the total project cost limited to Rs.56 lakh per project as per the applicable cost norms for the greenhouses, shade net houses, and cost of planting materials, etc.

For example, if the total cost of your project is Rs. 112 Lakhs, you will get Rs. 56 Lakhs of financial support for your project.

· The credit linked back-ended subsidy implies that the beneficiary has to avail term loan from the Nationalized Banks/Financial Institutions such as NABARD, SIDBI, ICICI, IDBI, State Industrial Development Corporations, State Financial Corporations. The loan also is availed from NEDFI, NBFCs, National SCST/minorities/Backward- Classes Financial and Development Corporation, other designated loaning institutions of the State/UTs, Commercial/Cooperative Banks, etc.

· The project should implement within two years from the date of sanction of the loan. The payment of a back-ended subsidy gets transferred once the project got complete fulfilling all the terms and conditions of the loan.

General Terms of the Scheme:

· The project should be in an area of more than 1000 sq.meter to be eligible for the subsidy under the National Horticulture Board scheme.

· Credit components as a medium of finance of the project should be term loan from a banking or non-banking financial institutions and should be at least 15% more than the applicable rate of subsidy.

· Projects that assessed related to setting up new production units must ensure and enable the entrepreneur to incorporate essential components in the form of planting material, precision farming, primary processing related infrastructure, and the project should unite with nature.

· National Horticulture Board will prescribe the regulating costs of various components.

· For the selection of the construction material used to build the greenhouses and shade net houses, there should be provisions.

· To minimize the cost of the structure, the preference given to the use of locally available material.

· Crops that are eligible for the scheme are high-value vegetable crops such as capsicum, cucumber, tomato, etc.

Cost Norms for Protected Cultivation under the National Horticulture Board Scheme:

1. Greenhouse structure:

(a) Fan and Pad System: Rs. 1400/m2, and Rs. 1610/m2 for hilly states and a subsidy of 50% of the cost provided for the area above 2500 m2.

(b) Naturally Ventilated System:

· Tubular structure: Rs. 844/m2, and Rs.970/m2 for the hilly state, and the subsidy of 50% of the cost for an area above 2500 m2.

· Wooden structure: Rs. 540/m2, and Rs. 621/m2 for hilly states, and the subsidy of 50% of the cost for an area above 2500 m2.

· Bamboo structure: Rs. 450/m2, and Rs. 518/m2 for hilly states, and the subsidy of 50% of the cost for an area above 2500 m2.

2. Shade Net House:

· Tubular structure: Rs. 710/m2, and Rs. 816/m2 for hilly states, and the subsidy of 50% of the cost for an area above 2500 m2.

· Wooden structure: Rs. 492/m2, and Rs. 566/m2 for hilly states, and the subsidy of 50% of the cost for an area above 2500 m2.

· Bamboo structure: Rs.360/m2, and Rs.414/m2 for hilly states, and the subsidy amount is the same as the above.

The criteria, norms, regulations, subsidy amount or percentage can differ with the different states like Rajasthan, Haryana, Gujarat, Tamil Nadu, Telangana, and others because each state has its own agriculture goals.

One thing that is common between all is that every state wants to support the new and advance agriculture technologies in their region for sure.

Important Links that will help you:

· National Horticulture Board Website: http://nhb.gov.in/

· Scheme-1 (Commercial Horticulture) by NHB: http://nhb.gov.in/guideline/112.pdf

· Full Applicant’s Eligibility: http://nhb.gov.in/guideline/3_2019-20.pdf

· Cost of Application Form:http://nhb.gov.in/guideline/5_2019-20.pdf

List of Documents to be enclosed: http://nhb.gov.in/guideline/List_2020-21.pdf

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