May 23, 2006
The Chairman/Managing Director/
Chief Executive Officer
All Scheduled Commercial Banks
Dear Sir,
Guidelines for Relief Measures by
Banks to Poultry Industry
Please refer to paragraph 2 of
our circular RPCD.PLFS.BC.
No 73/05.04.02/ 2005-06 dated April 04, 2006 indicating that Instructions
would be issued separately on the scope of the subvention and its calculation
as well as disbursement to the banks. Accordingly the following guidelines are
issued in this regard.
(i) The interest subvention will
be calculated at four percentage points on the term loans and working capital
loans outstanding as on 31.3.06. This will not include any part of the principal
amount that has become overdue before notification of the first occurrence of
the bird flu, which was on 18-2-2006.
(ii) All categories of borrowers
such as individuals, partnerships, private limited companies, public limited
companies, self-help groups and cooperatives are eligible for relief by way
of interest subvention.
(iii) The interest subvention will
cover term loans and working capital loans sanctioned for all activities relating
to the chicken, turkey, Japanese quail, guinea fowls, ducks, ostrich and emu,
including:: -
a. Commercial layer farming.
b. Commercial broiler farming.
c. Breeding/farming of parent
birds, both layer and broiler
d. Breeding/farming of grand
parents, both layer and broiler.
e. Pure line breeding.
f. Loans advanced to units for
farming of low input technology birds, including backyard poultry.
g. Loans advanced to poultry
hatcheries.
h. Such of those feed mixing
units, which have been sanctioned loan as part of the composite loan for a
poultry unit.
i. Poultry processing plants.
j. Poultry components of any
composite loans such as homestead loans sanctioned by banks.
2. Please let us know the amount
likely to be claimed by your bank immediately by Fax / Email.
3. Banks may submit their claims
in the format given in Annex I to the Chief General Manager-in-Charge,
Rural Planning and Credit Department, Reserve Bank of India, Central Office,
Mumbai. Information with respect to subvention claimed (branch-wise) may be
maintained in the format given in Annex II at the Head Office
for the purpose of audit and RBI inspection. The format for the branches to
provide information on relief to their Controlling Office/Head Office is given
in Annex III.
4. For audit purposes
all claims may be certified by the statutory auditors and certificates submitted
before 31st July 2006 to the Chief General Manager-in- Charge, Rural
Planning and Credit Department, Reserve Bank of India, Central Office, Mumbai.
5. For State/District Co-operative
banks and RRBs, NABARD will issue circular on the similar lines. For Urban Co-operative
Banks similar instructions will be issued by our Urban Banks Department.
6. Please acknowledge receipt.
Yours faithfully,
Sd/
(G. Srinivasan)
Chief General Manager
ANNEX I
Certificate for claiming reimbursement
towards subvention-Poultry units
Name of the bank:
(Amount in Rupees)