The Ministry of Cooperation provided an update on the Decentralized Grain Storage Plan in the Cooperative Sector, detailing current progress and financial mechanisms. Under the plan, 12 Primary Agricultural Credit Societies (PACS)/Cooperative Societies with a combined capacity of 0.52 Lakh Metric Tons (LMT) have been identified across 12 districts, with detailed project reports prepared for all 13 projects, though construction has not yet commenced. One completed project includes a 1,500 MT capacity godown constructed at Kotwa Pandey PACS in Mirzapur district, Uttar Pradesh.
The plan operates on a demand-driven basis with phased implementation based on proposals from States/UTs, without fixed state-wise targets. Construction timelines require completion within 18 months from sanction for submitting completion documents for final subsidy claims, with possible extensions of up to 6 additional months for fully justified delays. Financial assistance is exclusively available for constructing new scientific storage infrastructure at PACS/cooperative society level, excluding old or dilapidated buildings from modernization benefits.
Significant financial measures include enhanced loan repayment terms under the Agriculture Infrastructure Fund (AIF) from 2+5 years to 2+8 years, extension of Nabhsanrakshan credit guarantee to PACS equivalent to Farmer Producer Organizations (FPOs), increased capital subsidy from 25% to 33.33% under the Agricultural Marketing Infrastructure (AMI) Scheme, reduced margin money requirement from 20% to 10%, and utilization of NABARD's special refinance scheme. Combined with AIF's 3% interest subvention, these measures reduce the effective loan interest rate for PACS to 1%.
Eligible cooperative societies may establish infrastructure on self-owned or leased land, with land allocation facilitated by State Governments where required. Land availability, loan sanction, and financial capacity issues are addressed through coordination with State Governments and implementing agencies. The plan explicitly excludes provisions for separate quotas or special subsidies for storage charges.