Fisheries and Aquaculture Infrastructure Development Fund (FIDF)

Mission Blue Revolution envisioned by the Government primarily focuses to enhance fish productivity, fish production at a growth rate of 6% to 8% and creation of need based infrastructure facilities for fisheries. Through the concerted efforts put in by the Central and State Governments in implementation of various programmes and policies, the country’s fish production has increased from 0.75 million tonnes in 1950-51 to 12.61 million tonnes (P) during 2017-18, contributing to the economic development together with food and nutritional security.

Keeping in view that (i) there is limited availability of funds through the normal budgetary process and even these are mostly grant based without the ability to leverage them for credit based finance, (ii) there is conspicuous lack of credit funding in fisheries sector and (iii) to fill the large gaps in fisheries infrastructure, the Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying has set up a dedicated Fisheries and Aquaculture Infrastructure Development Fund(FIDF). FIDF envisages creation of fisheries infrastructure facilities both in marine and inland fisheries sectors and augment the fish production to achieve the target of 15 million tonnes by 2020 set under the Blue Revolution.

• In the Union Budget 2018, the Hon’ble Finance Minister has announced to set aside a corpus of Rs. 10,000crores for setting up of Fisheries and Aquaculture Infrastructure Development Fund (FIDF) for fisheries sector and an Animal Husbandry Infrastructure Development Fund (AHIDF) for financing infrastructure requirement of animal husbandry sector.
• The proposed Fisheries and Aquaculture Infrastructure Development Fund entails an estimated fund size of Rs 7522.48 Crore comprising of Rs 5266.40 crore to be raised by the Nodal Loaning Entities (NLEs), Rs 1316.60 crore beneficiaries’ contribution and Rs 939.48 crore budgetary support from Government of India..

Area of operation

The Fisheries and Aquaculture Infrastructure Development Fund (FIDF) as detailed in the ensuing paragraphs is implemented in all the States and Union Territories of India.

Objectives of fund

• Creation and modernization of capture & culture fisheries infrastructure
• Creation of Marine Aquaculture Infrastructure
• Creation and modernization of Inland Fisheries Infrastructure
• Reduce post-harvest losses and improve domestic marketing facilities through infrastructure support.
• To bridge the resource gap and facilitate completion of ongoing infrastructure projects.

Nodal loaning entities (NLEs)

• National Bank for Agriculture and Rural Development (NABARD),
• National Cooperatives Development Corporation (NCDC),
• All scheduled Banks

Nodal Implementing Agency (NIA)

National Fisheries Development Board, Hyderabad

Eligible entities

• State Governments / Union Territories,
• State Owned Corporations/State Govt. Undertakings/ Govt. Sponsored / Supported Organizations
• Fisheries Cooperative Federations
• Cooperatives, collective groups of fish farmers & fish produce groups etc.
• Panchayat Raj Institutions/Self Help Groups (SHGs)/ NGOs
• SCs/STs/Marginal Farmers, Women & entrepreneurs, Self Help Groups and cooperatives of this etc.
• Private companies/entrepreneurs
• Physically disabled
• Any other institution/entity to be decided by the Government

Eligible investment activities

• Establishment of Fishing Harbours.
• Establishment of Fish Landing Centres.
• Infrastructure for Mariculture and Advanced Inland Fisheries (Ocean farming, Cage Culture etc.)
• Construction of Ice Plants (both for marine and inland fisheries)
• Development of Cold Storages (both for marine and inland fisheries)
• Fish Transport and Cold Chain Network Infrastructure
• Development of Modern Fish Markets
• Setting up of Brood Banks
• Development of Hatcheries
• Development of Aquaculture
• Modernization of State Fish Seed Farms
• Establishment of state of art Fisheries Training Centres
• Fish Processing Units
• Fish Feed Mills/Plants
• Establishment of Cage culture in Reservoirs
• Introduction of Deep Sea Fishing Vessels
• Establishment of Disease Diagnostic Laboratories
• Development of Mariculture
• Establishment of Aquatic Quarantine Facilities
• Any other innovative projects/activities designed to enhance fish production/productivity/value

Quantum of Loan and margin money/beneficiary contribution

The project under the FIDF shall be eligible for loan up to 80% of the estimated/actual project cost. Beneficiaries are required to contribute at least 20% of the project cost as margin money.

Contribution of margin money in case of States/UTs, State Entities implemented projects shall not be mandatory. However, the concerned States/UTs, State entities, may decide contribution and size of the margin money preferably on lines of RIDF, depending upon availability of budget in their respective states/UTs.

INTEREST SUBVENTION AND LENDING RATE OF INTEREST

• Interest subvention- Up to 3% per annum for all Eligible Entities for development of identified fisheries based infrastructure facilities.
• Lending Rate of interest- Not lower than 5% per annum for all Eligible Entities for development of identified fisheries based infrastructure facilities.
• The Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying shall pay the interest subvention amount to NABARD/ NLEs till due outstanding loan and interests are fully paid off.
• Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying shall make adequate annual budget provision for interest subvention to NABARD/NLEs for 12 years covering the entire repayment period of loan by the Eligible Entities under FIDF based on annual plan submitted by NABARD.

Funding mechanism

• NABARD being one of the Nodal Loaning Entities will raise the funds from the market or utilize its own financial resources for funding under the FIDF, the cost of which shall be informed to Department of Fisheries on a quarterly basis.
• NABARD would fund the public infrastructure components through the State Governments/State Entities. Besides, NABARD, if required would also provide refinance to the other Nodal Loaning Entities namely NCDC and scheduled Banks as per its refinance policy for implementation of FIDF.
• NCDC will lend the loan to the Eligible Entities in cooperative sector either through the State Governments/UTs or directly to the Eligible Cooperative Societies & Federation etc. in accordance with its financial terms and conditions at the specified rate of interest with ceiling on interest subvention specified under the FIDF.
• NCDC will source the required funds from the market borrowing, or utilise own financial resources or avail refinancing from NABARD for lending the loan in cooperative sector for implementation of the FIDF.
• The banks may also avail re-finance from NABARD, if required for lending to the Eligible Entities for implementation of the FIDF.

REPAYMENT

Maximum Repayment period 12 years inclusive of moratorium of 2 years on Repayment of principal. Banks and NABARD being independent commercial institutions would be at liberty to sanction/ release the loans as per their commercial norms/ policies and in compliance with the regulatory guidelines as notified by RBI from time to time. The operational and credit related decisions like process of repayment, rate of interest , penal interest, security and extent of finance will be decided by Nodal Loaning Entities.

Availability of land, water bodies and statutory clearance

• Loan under the FIDF shall not be provided for acquisition of land and water bodies in any manner such as purchase, transfer, lease, accession/addition etc. required for implementation of the identified project activities.
• The project proponents (Eligible Entities) are required to acquire necessary land and water bodies (in case of non-availability of land with them) at their own cost and complete all processes associated with land acquisition, before submission of the proposal for concessional finance under the FIDF.
• The Eligible Entities shall provide documentary evidence/certificate of availability of requisite land and water bodies free from all encroachment and encumbrances.
• Confirmation with necessary documentary evidence on availability of land and water bodies and statutory clearances (wherever necessary) shall be clearly indicated in the DPR/Self Contained Proposal.

Formulation of detailed project report (DPR)

Concessional financing under the FIDF is based on Detailed Project Reports (DPRs) / Self Contained Proposals.  Detailed projects especially for infrastructure and large magnitude projects shall be formulated based on-

• Identification of suitable site,
• Necessary engineering and socio-economic investigations and surveys,
• Planning and designing of the facilities and
• Model studies wherever required etc.
• The Eligible Entities shall submit the DPR/self Contained Proposal in triplicate copies

Submission of the project proposal

To Joint Secretary (Fisheries) Department of Fisheries, Ministry of Fisheries, and Animal Husbandry and Dairying, Krishi Bhawan, New Delhi-110001. One Copy of the proposal shall also be submitted to the Nodal Implementing Agency (NIA) at the following address: The Chief Executive, National Fisheries Development Board, Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying, GoI, Pillar No:235, PVNR Expressway, SVPNPA Post, Hyderabad-500052.

NIA would receive the proposals from the concerned State Governments/UTs in respect of State/UT owned/implemented projects and directly from the other Eligible Entities  (wherever the State/UT financial contribution is not involved in the implementation of the intended project under the FIDF).

• Except for Private Entrepreneurs/Companies, all the other Eligible Entities shall route their applications through Nodal Departments of their respective State/UTC
• The Nodal Implementing Agency (NIA) of NFDB will scrutinize, evaluate, and appraise the proposal submitted by us and place it before Central Approval and Monitoring Committee (CAMC) for approval.
• CAMC will consider the proposals placed before it and accord in-principle approval to projects signifying approval for grant of interest subvention and recommend such approved proposals to the NLEs for considering sanction of loans.
• The lending decision would be left to the Banks and NABARD as per their policy and regulatory guidelines. NLEs to send a copy of the loan sanction to CAMC and NIA for information.

Conclusion

Fisheries and Aquaculture Infrastructure Development Fund will help in improving the infrastructure facilities in marine and inland fisheries sectors Achieving sustainable growth of 8-9% and target of 20 MMT fish production by 2022-23.It will be helpful for Generating employment for over 9.40 lakh fishers; it will attract private investment in fisheries sector with Adoption of new and innovative technologies by fishers.