RBI/ 2008-09/408
UBD.PCB.Cir. No. 55/09.14.000/2008-09

March 9, 2009

The Chief Executive Officer of all
Primary (Urban) Co-operative Banks
West Bengal

Dear Sir/Madam,

Guidelines for Relief Measures by Banks to Poultry Units in West Bengal

Please refer to our circular UBD.PCB.Cir.No.34/09.14.000/07-08 dated March 3, 2008 wherein certain relief measures were announced for the Poultry Industry.

2. In addition to the above relief measures, it has now been decided by Government of India to grant interest subvention @ 4% per annum on the outstanding non-overdue loan amount as on January 1, 2008 to the Poultry Units of West Bengal for the period from January 1, 2008 to March 31, 2009. Accordingly, the following guidelines on the scope of the subvention and its calculation as well as disbursement to the banks 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 01.01.2008. This will not include any part of the principal amount that had become overdue before notification of the first occurrence of the bird flu in the State.

(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.

3. Banks may submit their consolidated one-time claims in the format given in Annex I latest by June 30, 2009 to the Chief General Manager, Rural Planning and Credit Department, Farm Sector Division, Reserve Bank of India, Central Office, Mumbai. All the claims should be duly certified by statutory auditors.

4. Information with respect to subvention claimed (branch-wise) may be maintained in the format given in Annex II at the Head Office of the banks 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

5. The above Scheme may be given wide publicity so that all eligible poultry units of West Bengal derive benefit from the Scheme.

6. Please acknowledge receipt to the concerned Regional Office.

Yours faithfully,

(A.K.Khound)
Chief General Manager-in-charge

Encl: As above

ANNEX I

Certificate for claiming reimbursement towards subvention for Poultry units in West Bengal

Name of the bank:

* Note: The bank may ensure that overdue instalments, if any are excluded for the purpose of claiming subvention.

We hereby certify that the amount of interest subvention @4% to poultry units, being claimed as shown above, have been correctly calculated in conformity with the Reserve Bank of India Circular letter UBD.PCB.Cir. No. 55/09.14.000 dated March 9, 2009 We undertake that in the event of any inaccuracy detected later during audit or otherwise, we shall immediately refund to the Reserve Bank any excess amount received by us.

(Authorised Signatory)

Place
Date

This claim should be duly certified by Statutory Auditors

Annex II

Data to be kept with the Bank's Head Office for verification/scrutiny by Auditors/RBI inspectors

ANNEX III

Format for Branches to provide
Information on 4% interest subvention, to
their Controlling Office/Head Office

* Note: The bank may ensure that overdue instalments, if any are excluded for the purpose of claiming subvention.