P NAGENDRA PRASAD Vs. GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE NEW DELHI
LAWS(APH)-2008-9-37
HIGH COURT OF ANDHRA PRADESH
Decided on September 24,2008

P.NAGENDRA PRASAD Appellant
VERSUS
GOVERNMENT OF INDIA, MINISTRY OF AGRICULTURE Respondents

JUDGEMENT

- (1.)THE short question for consideration in this group of writ petitions is whether subsidy of 25% payable under Gramin Bhandaran Yojana (Rural Godown Scheme) (hereafter referred to as the scheme) of the Central government should be paid on the entire capital cost of construction of godown including allied facilities/amenities like internal roads, consumer shop, agri-clinics, weighing, grading, packaging and quality certification, warehousing etc. , or whether such subsidy is payable on the actual cost of the godown used for storage of food-grains. The answer to this question requires interpretation and understanding of the operational guidelines of the scheme dated 27. 3. 2002 issued by the Directorate of Marketing and Inspection (DMI), New Delhi, Department of agriculture and Corporation in the Ministry of Agriculture, Government of India. At the outset background of the cases may be noticed in nutshell.
(2.)ALL the petitioners are owners of agricultural land in various places - East godavari, Hyderabad, Nalgonda, Prakasam, warangal, West Godavari Districts. They constructed godowns of different storage capacity after availing financial assistance/ loans from Public Sector Banks. Godowns were constructed under the scheme at an estimated outlay of 60 lakhs each. They were completed and commissioned in May/ june 2002. As per the scheme, National bank for Agriculture and Rural Development (NABARD) released subsidy component of the capital cost of construction of godown as apprised by the lending bank. The lending bank is required to adjust subsidy amount in the last loan installments payable by the borrower.
(3.)THE Assistant Agriculture Marketing adviser, DMI, Sub-Office, Hyderabad, addressed a letter dated 26. 3. 2004 to agricultural Marketing Adviser (AMA) to government of India, Faridabad, seeking clarification as to whether the total eligible subsidy is to be calculated on the cost of godown portion only as per total financial outlay of the project sanctioned by the bank or entire cost of godown including amenities should be taken into consideration for calculating the subsidy. In response thereto ama issued Office Memorandum No. U-11020/1/2002-CS dated 1. 4. 2004 informing dmi, Sub-Office, Hyderabad, clarifying that for calculating final subsidy, original total financial outlay (TFO) sanctioned by the bank (excluding allied facilities/amenities) is to be taken into consideration.
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