Assistance for a number of components under NHM, particularly for the
private sector involving infrastructure development such on nurseries, establishment of
lab & clincs, post harvest management and marketing is in the form of credit linked back
ended subsidy. It impies that the beneficiary has to avail loan from the Nationalised
Banks / Financial Institution (FI) such as NABARD, IDBI, SIDBI, ICICI, State Financial
Corporations, State Industrial Development Corporations, NBFCs, NEDFI, National SCST/
minorities/ Backward- Classes Financial and Development Corporation, other
designated loaning institutions of the State / Uts. Commercial/ Cooperative Banks, etc.
Concerned banks/ State FIs may adhere to their own appraisal norms while
sanctioning projects under the scheme. The appraisal note submitted to SHM for
sanction/ Claim of subsidy should invariably be the same which formed the basis for
sanction of term loan.
The project should be implemented within a period of two years from the date of
sanction of loan. The payment of back-ended subsidy will be made after the project has
been successfully completed according to the terms and conditions of the loan/or as per
the approved feasibility cum project report, as the case may be.
Upon completion of the project, the concerned Bank/FI/would inform SHM that the
project had been completed (in accordance with) the guidelines of NHM and shall make a
request to SHM for joint inspection of project the point inspection will be conducted in
the presence of promoter. The payment of back ended subsidy will be made after project
has been successfully completed according to the terms and conditions of the loan or as
per the approved feasibility-cum-project report, as one case may be.
Bank /FI/NCDC as the case may be, would submit to SHM the Utilization Certificate
of the subsidy released by SHM.
The subsidy assistance released by SHM to Bank/FI on behalf of the individual units
which are sanctioned, will be kept in the separate account. The adjustment of subsidy will
be on the pattern of back-ended subsidy wherein the full project cost including the
subsidy amount but excluding the margin money contribution from beneficiary would be
disbursed as loan by the banks. The repayment schedule will be drawn on the loan
amount in such a way that the subsidy amount is adjusted after the bank loan portion
(excluding subsidy) is liquidated.
The subsidy admissible to the borrower under the scheme will be kept in the Subsidy
Reserve Fund A/c borrower wise in the books of the financing Banks. No interest will
be applied on subsidy portion by the Bank. The balance lying to the credit of the Subsidy
Reserve Fund A/c will not form part of Demand and Time Liabilities for the purpose of
SLR/CRR. Suitable instructions issued in this regard by the RBI from time to time would