Operation Greens- Long Term Interventions

Scheme for Operation Greens – Long-Term Interventions

In the union budget 2021-2022, the long-term strategy i.e. integrated value chain development projects and standalone post-harvest infrastructure projects under the Operation Greens Scheme originally applicable to tomato, onion, and potatoes (TOP) crops was enlarged to 22 perishable crops. In line with this announcement, the Ministry of Food Processing Industries (MOFPI) has issued the Guidelines of Scheme for Operation Greens – Long Term Interventions vide a notification dated 08.06.2022. The present article briefs the new guidelines in detail.

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Operation Greens Scheme

The Ministry of Food Processing Industries (MoFPI) had launched the Operation Green scheme in the Union Budget of 2018-2019 for integrated growth and development of the Tomatoes, Onions, and Potatoes (TOP) value chain.

The primary objective of the Operation Greens scheme is to support Farmer Producers Organizations (FPOS), processing facilities, Agri-logistics, and professional management.

With this circular, MoFPI announced that the scheme guideline dated 05.11.2018 for short-term and long-term measures under the operation scheme is hereby repealed.

The objective of the Scheme

The key objective of the Operation Greens – Long Term Interventions is as follows:

• The primary objective of the Operation Greens Scheme is to enhance the value realization of farmers by targeted interventions to strengthen production clusters and FPOs and link the farmers with the market.

• Reduction of post-harvest losses by creating farm gate infrastructure, development of suitable agro-logistics, and creation of appropriate storage capacity linking consumption centers.
• Development of food processing capacities and value addition in the value chain with firm linkages of production clusters.

Eligible Crops under Operation Greens

The scheme will be applicable in the identified production clusters of the 22 perishable crops and the same shall be provided in the attached document:

Eligible entities for Operation Greens

The entities engaged in processing/ marketing fruits and vegetables are eligible under the Scheme for Operation Greens- Long Term Interventions:

• State Agriculture Federations
• State Marketing Federations
• Farmer Producer Organizations
• Cooperatives
• Self-help groups (SHG)
• Companies
• Food Processors
• Logistic Operators
• Service Provider
• Supply Chain operators
• Retail Chains
• Wholesale Chains
• Central Government and State Governments entities /organizations

Note: To avail of the benefits under the scheme, an FPO should have a minimum of 300 members.

Strategies of Operation Greens – Long-Term Interventions

The strategies adopted by the Operation Greens scheme are divided into three components:

• Integrated value chain Developments Projects
• Standalone Post-Harvest Infrastructure Projects
• Quality Production

Integrated value chain Developments Projects

Projects will be implemented in identified production clusters for each crop for the development of the value chain. This component of the scheme will have the following sub-components and all the sub-components are mandatory.

• Formation of new FPOs in the cluster and training of existing farmers /FPO
• Post-harvest processing facilities
• Agri-logistics
• Marketing Infrastructure

Standalone Post-Harvest Infrastructure Projects

The project may have one or a combination of the following sub-components:

 Primary post-harvest processing infrastructure facilities at the farm level in the identified cluster:

• Appropriate storage
• Integrated Packhouse and machinery & equipment for primary processing
• Retail chain of outlets for perishable products
• Quality test equipment for captive use
• Controlled temperature/ventilated vehicle with or without ranking

The ministry will provide grants-in-aid for a maximum of 5 retail outlets subject to a maximum limit of 5% of the total eligible project cost.

Post-harvest processing infrastructure facilities

• For value addition
• Retail Chain of outlets for perishable products with facilities such as frozen storage/cold room/cold storage/deep freezers/refrigerated display cabinets/chillers/packing /packaging/repining chamber
• Quality test equipment for captive use
• Controlled temperature /ventilated vehicle with or without ranking

The ministry will provide grants-in-aid for a maximum of 5 retail outlets subject to a maximum limit of 5% of the total eligible project cost.

Quality Production

A maximum of 5% total allocation under the scheme may be utilized for quality production. The ministry will provide support under this component through the Central Governments/State Governments/Research institution.

Eligibility Criteria

The eligibility criteria to apply for the Scheme for Operation Greens – Long Term Interventions are explained in detail below:

• The companied net worth of the applicant shall not be less than 1.5times of grants-in-aid sought under the scheme.
• In-principle/term loan sanction letter (inter alia indicating whether the proposal is for expansion /up-gradation or a fresh proposal from the bank is mandatory
• Term loan from the bank for an amount not less than 20% of the total project cost in respect of proposal from General areas.
• In case of proposals from difficult areas or proposals from SC/St or Farmer Producer Organization or Self-Help Groups, the term loan amount shall not be less than 10% of the total project cost.
• A detailed Appraisal not from the bank-specific to the proposal is also mandatory
• Only one application will be accepted from an entity against the expression of interest issued under the scheme
• Expansion /up-gradation of the existing facility will not be allowed
• No second proposal from an entity or promoters of an entity who have grants in aid under this scheme will be allowed.
• Entities/promoters of entities who have availed financial assistance under another scheme of the ministry will be eligible for grants-in-aid only after two years from the date of commercial operation of the previous project

Pattern of Assistance

The assistance provided under the Scheme for Operation Greens – Long Term Interventions is tabulated here:

Grants-in-aid will be at 35% of eligible project cost for projects in General Areas and 50% of eligible project cost for projects in difficult areas as well as for projects of SC/ST, FPOs, and SGHs.

Application Fee

The application fee for Scheme for Operation Greens – Long Term Interventions

• The entities applying for financial assistance are required to submit a Demand Draft for a non-refundable fee of Rs.20000 in favor of the Pay and Account Officer, Ministry of Food Processing Industry, New-Delhi
• The non-refundable fee shall be Rs.15000 for applicants from SC/ST

Documents Required

• Detailed Project Report (DPR) indicating the financial profile of the entity, domain expertise available with the entity, raw material availability,  
• CA/statutory auditor certificate prepared by the stator provision read with condition
• CA/statutory auditor certificate
• CE (Civil) certificate and CE  (Mechanical) certificate
• In-principle /final term loan sanction from a Bank
• A detailed appraisal note, specific to the scheme from a scheduled commercial bank
• Certificate of incorporation/registration, Memorandum, and Article of Association, Bye-laws of the society / co-operative / Self Help Group, Registered partnership deed, PAN, TAN
• Annual Reports, and audited financial statements of accounts for the last two years
• Certificate of SC/ST from the concerned Government Authority
• Proof of submission of requisite fee
• Quotations from original Equipment Manufacturer  in respect of Plant & Machinery and equipment for the proposed project
• Correspondences for possible forward or backward linkages.

Application Procedure

 The application for the Scheme for Operation Greens – Long Term Interventions shall be submitted online on the SAMPADA portal of the MoFPI.

• The proposal will be invited by MoFPI through the Expression of Interest that will be valid for 45 days.
• The ministry will constitute a Technical Committee and Project Approval Committee for scrutiny of proposals received against EOI.
• The proposal found prima facie eligible will be evaluated inter-alia based on technical parameters as well as assessment criteria.
• A proposal will have to obtain a minimum of 60 marks to become eligible for consideration of grants-in-aid
• Note: The maximum mark will be 45 for an applicant belonging to SC/ST.
• The ministry will issue an approval letter for successful application giving, inter-alia details of the project, total project cost, eligible project cost, approved grants-in-aid, completion schedule of the approved project, and other relevant details.
• Once the acceptance letter and affidavit are provided, the applicant will be called Project Implementing Agency as (PIA).

Click here to get the official document of the Ministry of Food Processing Industries (MOFPI).