Eligibility tightened for NHB schemes

The Centre has amended the eligibility norms for the National Horticulture Board's (NHB) commercial horticulture and cold storage schemes, barring holders of constitutional posts, sitting ministers, MPs, MLAs, mayors and district panchayat chairpersons from availing financial assistance under the schemes, as reported by Daily Excelsior.

The amended guidelines, issued on August 21 and applicable with immediate effect, also exclude serving employees of central and state government ministries, departments, PSUs, autonomous bodies and local bodies, barring MTS/Class-IV/Group-D staff, from NHB assistance. Superannuated or retired pensioners drawing a monthly pension of Rs 10,000 or more — again excluding MTS/Class-IV/Group-D employees and groups of farmers — have also been declared ineligible.

However, family members of those falling in these categories may still avail one-time assistance, subject to the revised definition of "family" under the scheme, the amendment states.

One member per family

Under the revised norms, "family" for the purpose of determining eligibility will comprise the applicant's spouse, parents, sons and daughters. Only one member of a family will be eligible to avail assistance under NHB schemes, whether individually or through a Hindu Undivided Family (HUF), a partnership or proprietorship firm, or as a director of a company.

"Financial assistance availed by any member of a family shall be treated as financial assistance availed by the same family," the guidelines stated, adding that once any family member has availed assistance, no other member will be eligible for further assistance under any NHB scheme or component, irrespective of any unutilised portion of the maximum admissible ceiling.

Rationale and other changes

NHB said the amendment was aimed at rationalising financial assistance, ensuring equitable distribution of benefits, preventing duplication of subsidy and making implementation of the schemes more transparent and effective.

The amended guidelines introduced changes including a revision in the rate of financial assistance, exclusion of the cost of land from eligible project costs, provision for voluntary refund or exit from the scheme, and a revision in the cost of the application form and scheme brochure. The maximum subsidy admissible from NHB for any type of cold storage project has been capped at Rs 2 crore.

Parliamentary context

Minister of State for Agriculture Ramnath Thakur, in a written reply in the Lok Sabha, said the existing NHB scheme guidelines did not contain any specific provision on conflict of interest or recusal in respect of applications submitted by public functionaries or their family members. He also stated that Union Minister of State for Agriculture Bhagirath Choudhary refunded the subsidy to the bank concerned, which was directed to return the amount to NHB.

Thakur described the application processing as a transparent, multi-tier mechanism: the financing bank first sanctions the term loan and appraises the project, after which NHB scrutinises the application through its Project Examination Committee before issuing the Grant of Clearance.

The move comes weeks after it emerged that Choudhary and BJP MP Lumba Ram had benefited from the scheme, Daily Excelsior reported.