The Hindu : Karnataka / Bangalore News : KSWC gets Rs. 49.55 cr. for setting up godowns

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Monday, Apr 18, 2011
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Karnataka

Karnataka - Bangalore

KSWC gets Rs. 49.55 cr. for setting up godowns

Nagesh Prabhu

They will have a total capacity of 1.06 lakh tonnes

NABARD has sanctioned funds for establishing godowns in rural areas of nine districts
The work on all godowns will be completed by the year-end

Bangalore: The National Bank for Agriculture and Rural Development (NABARD) has sanctioned Rs. 49.55 crore for the Karnataka State Warehousing Corporation (KSWC) for establishing godowns in rural areas of nine districts with a total capacity of 1.06 lakh tonnes.

Agreement

The NABARD, for the first time, has entered into an agreement with the KSWC for extending direct financial support for creation of storage facilities under the NABARD Infrastructure Development Assistance in Mysore, Chitradurga, Davangere, Chikmagalur, Raichur, Bagalkot, Belgaum, Hassan and Mandya districts, in the first phase.

The KSWC has decided to expand its godown network and offer more facilities to farmers to store their produce. At present, KSWC godowns have a total storage capacity of 12 lakh tonnes.

Officials of NABARD, Bangalore, told The Hindu that the Government had given the guarantee to sanction loan at 10 per cent interest to the KSWC. The loan repayment period is nine years, including a two-year moratorium. The work on all godowns would be completed by this year-end.

The NABARD signed the agreement with the corporation on February 10, 2011, for executing the project. The corporation, established in 1957, runs over 120 godowns across the State.

Under RIDF

Under the Rural Infrastructure Development Fund, the NABARD has sanctioned Rs. 74.52 crore for establishing godowns in rural areas of the State. Of which, it has already disbursed Rs. 66.14 crore.

90 godowns

Agricultural produce marketing committees (APMCs) would set up 90 godowns with a total capacity of 1.96 lakh tonnes. The State Government had not given any security for the loan under this category, officials said.

The rate of interest on the RIDF loan is 6.5 per cent and the repayment period is seven years. These warehouses would be used for storing agricultural produce, seeds, manure and agricultural implements, officials said.

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