EX-POST EVALUATION - NABARD 15… · EX-POST EVALUATION STUDY ON COLD STORAGES IN BIHAR (2002 -...

EX-POST EVALUATION STUDY

ON COLD STORAGES IN BIHAR

(2002 - 2003 )

National Bank for

Agriculture and

Rural Development Patna

I FOREWORF

Perishibility is the characteristic of agriculture and horticulture products. The volatile market fluctuation, mostly unwanted, unhealthy, is a consequence of perishibility. Moreover, this characteristic affects adversely both the suppliers in terms of non-remunerative income on account of distress sale during the harvest season and higher price amidst scarcity borne by consumers during the post harvest season. However, it is a well-known fact that the horticulture sector has been showing promising growth as the country ranks second in the production of fruits and vegetables in the World. In spite of this huge production, the post harvest management of such crops is still a limiting factor.

With the network of Cold Storage, it is possible to break the barrier of this limiting factor. It is an investment, even though with a higher outlay per unit, that benefits both the suppliers and consumers. Recognising the need for the chain of cold storage, as recommended by the high level Committee appointed by the Ministry of Agriculture during 1998, a programme of Capital Investment Subsidy Scheme (CISS) for construction / expansion / modernisation of cold storages was initiated by Government of India in liaison with NABARD and National Horticulture Board (NHB). The Scheme hashelped in the addition of around 400 Cold Storages Units with about 20 lakh MT of storage capacity on all-India basis.In Bihar, Cold Storages have been constructed, traditionally, for the storage of potato. Although, an earnest effort has been initiated to diversify the use of Cold Storage in Bihar for variety of vegetables, horticulture products consequent to recognising the need for the creation of post harvest management infrastructure. Although modernisation of existing Cold Storages for diversified uti l i ty and implementation of Capital Investment Subsidy Scheme have been in operation ;n the State, its irnpact is not yet known. As such, the current study was conducted by Bihar Regional Office Patna to assess the impact of the scheme on value addition of farm produce, mainly potato, as also evaluate the economics of the units financed in Bihar./fhe study was conducted in five districts viz., Muzaffarpur, Samastipur, Vaishali, Saran and Purnea covering one Cold Storage Unit financed in each district under NABARD's refinance scheme. The study has brought out several positive features like the positive role-played by the private sector in development of Cold Storages in Bihar.

(iii)

The unique feature of the study is the assessment of the impact on potato

producing farmers in the absence of Cold Storage infrastructure. The

maximum earning of potato producing farmers went up to Rs.1.17 over Rs.

1.00 spent on potato cul t ivat ion in a s i tuat ion where Cold Storage

infrastructure was absent. While this income increased to Rs.1.82 over Re.

1.00 spent on potato cultivation after storing 60 per cent of the stock in

Cold Storages. On an average cost of establishment of a Cold Storage of Rs.

145.60 lakh (for an average capacity of 4100 metric tone of potato), the

average net profit worked out to Rs.6.89 lakh per annum after meeting

repayment and tax obligations. Thus, the establishment of Cold Storages,

as this study has brought out, results in enormous benefit to member farmers,

cold storage owners and the public in general besides arresting wide seasonal

price fluctuations. The repayment performance of the Cold Storage borrowers

was good. / /

I am sure that the findings of the study will be quite useful for further

improvement in the implementation of Cold Storage Scheme in the State of

Bihar. Further, it will also provide insights for the implementing agencies as

well as the entrepreneurs regarding the factors that will influence the viability

of the Cold Storage Units in future.

( ^ "" ^ V"--- -

(S.C. Vasishtha) Chief General Manager

National Bank for Agriculture and

Rural Development

Regional Office, PATNA

13 November 2003

(iv)

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rs HciH^ 2003.

(Vi)

CONTENTS,

Foreword (iii - ix)

Acknowledgment (ix)

Credit List (xi)

List of Abbreviations (xiii-xiv)

Basic Data Sheet (xv)

Executive Summary (xvi-xvii)

Chapter I Introduction 1 - 4

Chapter I I Objective and Methodology of the Study 5 - 8

Chapter I I I Characteristics and Problems of Sample Cold Storages 9 - 1 8

Chapter I V Implementation of.the Schemes 19 - 35

Chapter V Cost of Investment in Cold Storages 36 - 38

Chapter V I Economics of Potato Storage 3 9 - 4 9

Chapter V I I Economics of Sample Cold Storages 5 0 - 5 6

Chapter V I I I Repayment Performance 5 7 - 5 9

Chapter I X Summary and Conclusion 60 - 65

Photographs and Annexure at the end of the Report

(vii)

fSisra"^r^

y^-dNHI (v - vi)

3 T P ^ (x)

^H^Kd ^^Q^ (xii)

^Hct diaRt ^ '^^ (xiii-xiv)

^ 3Tf^f^ ^ ^ ^ - (xv)

^ r f s ^ f^TEf^ (xv i i i -x ix )

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(viii)

ACKNOWLEDGMENT

The assistance and cooperation received in the conduct of the Evaluation

Study from the management of M/s DK Cold Storage, Muzaffarpur; M/s

Vaishali Sheeth Bhandar Pvt. LTD., Hahua, Vaishali; M/s Vishwanath Cold

Storage, Chhapra; M/s Massina Cold Storage, Samastlpur and; M/s Pransukha

Cold Storage, Purnea; Senior Officers of State Bank of India, Regional Office,

Muzaffarpur and Purnea; Branch Managers and officials of ADB branch,

Muzaffarpur; Hajipur branch, Hajipur, Vaishali; Rajendra College Chhapra

branch , Chhapra ; AMY branch , Samastlpur and Gulab bag branch, Purnea

of State Bank of India are gratefully acknowledged by the author. The author

also expresses his gratitude to Shri Walter Pascal, Chairman, Palamau

Kshetriya Gramin Bank (SBI), who took personal interest in coordinating

with his colleagues in the State Bank of India for a meaningful cooperation

during the field investigations. The author also expresses his gratitude to

his colleagues who showed their interest to help him in various stages of the

study. Namely, Shri Ravinder Singh, Assistant Manager (Civil Engineer), who

associated the author for the field visit during the initial two days to get the

author acquainted with all technical details of the cold storage; Shri K.

Vijayapandian, Assistant Manager, who gave valuable tips while the author

was appraising the primary (ex-post) data of the project with the help of

computer; Dr. Sriram Appulingam , Assistant Manager, shared his valuable

experience in presenting the report and incorporated all possible aesthetic

tips in the report before printing.

(ix)

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( X )

CREDIT LIST

Overall Directions

Department of Economic Analysis and Research, NABARD,

Head Office, Mumbai.

Specific Guidance and Review

SHRI S.C. VASISHTHA Chief General Manager

NABARD, PATNA

General Guidance and Supervision

SHRIA.K. SINHA General Manager

SHRI MAHESH KUMAR Deputy General Manager

NABARD, PATNA

Field Visit, Tabulation, Analysis of Data; Drafting, Composition and Presentation of Report

SHRI SUBHASH SERAPHIM (Agriculture Economist)

Assistant General Manager

NABARD, PATNA

Photography

(By the Author)

(xi)

eicKiKd ^r§cy

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(xii)

Abbreviations / Acronyms /Terms used in the Report

AE Agriculture Economist

APMC Agriculture Produce Marketing Cooperatives

BCR Benefit Cost Ratio

ADB Agriculture Development Branch

AMY Agriculture Marketing Yard

BEA Break-Even-Analysis

BSEB Bihar State Electricity Board

BHP British Horse Power

CISS Capital Investment Subsidy Scheme

C/S Cold Storage

eft cubic feet

cu.m. cubic meter

DSCR Debt Service Coverage Ratio

e.g. for example

FRR Financial Rate of Return

GoB Government of Bihar

Jaggery/gur Raw form of artificial sweetener, a by product of modern sugar mill or manufactured by traditional method

HDI High Density Injection

HO Head Office

HQ Head Quarters

i. e. that is

IRR Internal Rate of Return

Kgs Kilograms

Khattals Shel f / Stacks made of bamboo

Km Kilometer

kV/ KV Kilo volt

Md Mohammed

(xiii)

mm millimeter

IM/s Messer

MT Metric Tonne

NABARD National Bank for Agriculture and Rural Development

NCDC National Cooperatives Development Corporation

NHB National Horticulture Board

No. Number

NPA Non Performing Asset.

NPW Net'Present Worth

PW Present Worth

OS Osmosis Suction (Ammonia , Scrubber type )

Psi Pound per square inch

Qtl/qtl Quintal

RCC Rajendra College Chappra

RPM Revolution per Minute

Rs. Rupees

SBI State Bank of India

SPDP Single Pole Double Point

TFO Total Financial Outlay

TR Tonne Referigeration

VAs Voluntary Agencies

VCS Vapour Compression System

Viz. 'namely' or 'these are'

vis-a-vis with respect to

Note: a) Name of places used in the report is identical to those used by the Survey of India; it may be different from those used by the media or local publications. Calcutta is same as Kolkata. U.P. is same .as Uttar Pradesh.

b) Metric system is used to denote certain identified measurement, wherever itnecessitated, non metric denotations have been used, for example, the capacity / size of compressors are used in inches only.

(xiv)

I BASIC DATA SHEET

1 Sample of the Study Name of the Cold

Storage( C / S )

Name of the

District

1 Sample of the Study

DKC/S

Vishwanath C/S Muzaffarpur

Saran ( Chhapra)


Vaishali C/S Vaishali


Massina C/S Samastipur


Pransukha C/S Purnea

3 Implementing Banks Five branches of'the State Bank of India

4 Period of Implementation 1998 to 1999

5 Reference Year Calendar Year 2001

6 Average capacity 4870 MT

7 Average investment cost: Rs.145.60 Lakh (for capacity ranging

between 4000 and 6000 MT)

8 Average utilisation

(% of total capacity)

80

9 Average rent per quintal

a) DK

b) Others

Rs. 100

Rs." 125

10 Economics of average sample

cold storage

a. Average Annual

Gross Cash inflow

(Rs.)

Rs. 46.70 Lakh

b. Average Annual Cash outflow (Rs.)

Rs. 16.10 Lakh

c. Average Net

cash flow (Rs.)

Rs. 34.41 Lakh

11 Average Net Profit af ter

bank and tax obl igat ions

Rs. 6.89 Lakh ( ranging f rom

Rs. 2.13 lakh to Rs. 9.78 Lakh )

12 Financial Rate of

Return (FRR)

21.82 % (Ranging f rom

17.02 % to 26.12 % )

13 Break Even Volume of sales Ranged f r om 39 % to 65 % .

(XV)

[EXECUTIVE SUMMARY

(The Summary and Conclusions are given in the Chapter IX)

Out of 38 districts, 26 districts were having 204 registered cold storages

with an installed capacity of 6.8 lakh MT during 2001-02. Eight of

these had been refinanced by NABARD during 2000-01 under "Special

Scheme of Cold Storages in Bengal and Bihar" which had some

relaxations with respect to rent, licensing etc. Five cold storages under

this scheme were selected one each from five districts across the

State.

In Bihar, storage of potato is synonymous with cold storage. The total

production of potato in 2001 - 2002 was 39.94 lakh MT about 5.19

per cent of the Net Sown Area was under this crop.

The share holders / partners in sample cold storages were from the

same family tree with a rich background of professional skill and

experience as the same family had had an established business in

some other sector with huge investment, for example, tannery industry,

a very popular brand chewing tobacco industry, a chain of five Cinema

halls and three brick kilns by the same family etc. Cold storage was

just an horizontal expansion of their established business where assets

earned in diverse sectors were properly parked as investment in cold

storages.

The average cost of establishment was worked out at Rs. 145.60 lakh

for an average capacity of 4870 MT of potato with a break up of Rs.

2.90 lakh in land and site development, Rs. 69.80 lakh in civiJ work,

Rs. 60.20 lakh in plant & machinery and Rs. 12.70 lakh in other

machinery ( generators etc.) and furniture / fixtures.

The control farmers earned Rs. 1.05 to Rs. 1.17 over one Rupee spent

in a situation where the entire stock of potato was sold from the farm

at the farm gate price.

The sample member farmers earned Rs. 1.17 to Rs. 1.82 over one

Rupee spent after storing 60 per cent of the stock in cold storage , 40

per cent of stock selling at farm gate price and meeting the cost of

storage.

(xvi)

7 Thus, the reward for parting with quick liquidity and storing potato

fetched 12 to 65 per cent point rise in income over one Rupee spent

for member farmers.

8 The annual net cash flow ranged between Rs.28.70 lakh and Rs.

46.36 lakh before the payment of principal and interest of the bank

loan installment and corporate income tax.

9 The average net profit, after repayment of bank obligations, and tax

liabilities worked out to Rs. 6.89 lakh per annum with a range of Rs.

2.13 Lakh to-Rs.10 .56 Lakh.

10 The FRR worked out to 17.02 per cent to 26.12 per cent at 15 per

cent discounting factor.

11 In sensitivity analysis, it was discovered that the sample cold storages

were relatively more sensitive to the risk of having more cold storages

in the vicinity and stiff competition rather than to increase in cost.

12 The break-even volume ranged between 39 per cent and 65 per cent

of the capacity.

13 Thus, the establishment of cold storages caused enormous benefit to

member farmers, cold storage owners, and public in general who were

saved from ills of wide price fluctuations. Stability with more certainty

in potato prices were the most important contribution of the cold

storages.

14 The recovery performance of all sample branches of SBI had been

better.

15 The repayment performance in case of the two units were excellent,

for another two units it was satisfactory and for the remaining one

unsatisfactory.

(xvii)

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(xviii)

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(xix)

CHAPTER I

INTRODUCTION

1.1 Cold Storage is an enclosed chamber insulated in prescribed manner and mechanically cooled by refrigeration machinery to provide 'specified refrigeration' to horticultural products in general and Olericulture products in particular (in the context of Bihar), stored therein for minimising post harvest losses. Specified refrigeration' means not only cooling adequately to the required temperature of the product stored, but also specified humidity. The main components of refrigeration system are Ammonia gas , Cooling coil ( evaporator). Compressor (as shown in the photograph. Exhibit No. 1), Ammonia Receiver (as shown in the photograph, Exhibit No. 2), and Condenser units. The Ammonia gas extracts the heat from the chamber in cooling unit ( evaporator ) and transmits the same to external environment through water-cooled condenser (as shown in the photograph. Exhibit No. 7). It is to be noted there are mainly two types of cooling unit, Freezid Coil System (as shown in the photograph. Exhibit No. 4) and Bunker Coil System (as shown in the photograph, Exhibit No. 5). The former is relatively expensive but space economic with no substantial difference in capacity / performance. Inside the chamber, the cooled air adjoining the cooling coil descends in the chamber with the help of gravitational force and hot air moves upward towards cooling coil installed on the topmost floor of the chamber. It will not be wrong to scale down a cold storage of 5000 MT capacity to a home refrigerator of one cubic.meter at the rate of 1:1470. (The photographs as different Exhibit Numbers are presented at the end of this report. )

1.2 In the chamber, a multi-floor structure is made either of RCC or Steel. Generally five to six floors are created to store the goods keeping in view the load carrying capacity of the workers. The floors are made of tamarind wood or bamboo chalkies. The potatoes are stored in the chamber in gunny bags of 50 Kg to 80 Kg capacity (as shown in the photograph. Exhibit No. 6). Gunny bags are being stacked in stacks (known as khattals in local language). Generally four or five khattals are in one floor. Normally, two and half feet wide passage is kept along the periphery of cold storage and between the khattals for movement of workers and goods. In each stack, the bags are stored vertically. In each row up to eight bags are kept and one foot air gap is left between top of stacks and immediate ceiling for better

{ 1 }

circulation of air in the chamber. The stored bags are shuffled at regular intervals to prevent decay of the commodities at the bottom layers of the stack. At the time of withdrawal of stock from cold storages, potato is emptied in an open shed to make them adaptive to non-cold storage environment. In the photograph, (Exhibit No. 10) potato is shown in wet condition as just released from the cool chambers. In the photograph, (Exhibit No. 8) it is shown how potato is dried by using fans. Thereafter, these are re-packed in gunny bags of the member farmers (as shown in the photograph, Exhibit No. 12). The photograph as an Exhibit No.9 shows the sample of dried potato ready for re-packing to hand over the concerned farmer/trader. A negligible proportion of potato stored is wasted during the period of storing. A sample of wasted potato is shown in the photograph. Exhibit No.11.

1.3 In Annexure I the basic requirement of temperature and humidity for different horticulture and olericulture products stored in the cold storages is indicated.

1.4 Nearly one third of our horticultural produce, especially fruits and vegetables is wasted, mainly on account of poor cold storage and other storage facilities. The country also experiences wide fluctuation in prices of horticultural produce, particularly, potato and onions. The Government of India, therefore, appointed a High Level Expert Committee in November 1998 for improving the cold storage/other storage capacity for hort icultural produce of the country. The committee made an assessment that additional cold storage capacity of the order of 12 lakh MT would be required during IX five-year plan period. Besides, rehabil i tation/renovation of 8 lakh MT capacity (approximately), which is lying unutilized in various states especially in U.P., Bihar and Orissa would be necessary. The committee also assessed the requirement of storage for onion at 1.5 lakh MT, at the farm level in producing areas and 3 lakh MT buffer godowns at APMC Yards and terminal markets in different states. Annexure I I I (A ) may be referred for an evolution of cold storages in India in terms of number, capacity etc. since 1964 to 2001. The state/ Union Territory wise distribution of cold storages in terms of capacity etc. are furnished in the Annexure I I I (B ) .

1.5 With a view to ensure faster development of cold storage capacity and reducing post harvest losses of horticultural produce through promotion of setting up of cold storages including controlled /modified

{ 2 }

atmospheric storages, the 'capital Investment Subsidy Scheme for Cold Storages' was announced by the Union Finance Minister while presenting the Union Budget for 1999-2000. The scheme is under implementation by NABARD/NCDC/NHB.

1.6 As on 31 August 2001, a total of 306 cold storages with capacity of 15.37 lakh MT, TFO of Rs.419.44 crore. Bank loan of Rs.229.89 crore and eligible subsidy of Rs.96.88 crore have been sanctioned by NABARD. The physical target set for 9th plan period for all three agencies has been exceeded by NABARD alone much in advance.

1.7 Cold Storages in Bihar : In Bihar, cold storages are mainly constructed for storing potato. However, in stray cases, some other olericulture products, horticulture products like fruits, spices, dairy and poultry products are also stored. In Bihar, the area under different vegetable crops during 2001 - 02 was 7.77-lakh hectare, out of which an area of 3.14 lakh hectares was for potato only. A trend of 4.6 per cent growth has been recorded In vegetable production and of potato also.

1.8 The cold storage capacity during 2000-01 was 6.78 lakh MT in the State .Out of total 38 districts in Bihar, 26 districts were having cold storages. Out of the 204 registered cold storage units, 187 were in private sector and 17 in cooperative sector. Over and above these existing Cold Storages during 2000-01, 20 per cent of 6.78 lakh MT capacity was under construction during January 2002. The potato production in Bihar during 2001-02 was 39.94 lakh MT constituting 12 per cent of the vegetable production. The vegetable production includes mainly cauliflower, cabbage, onion, tomato, chilies, brinjal, okra and leafy vegetables. Around 13.88 per cent of Net Sown Area is covered by vegetables. 37.45 per cent of total Net Sown Area of vegetable is covered by potato alone and rest 62.55 per cent is covered by other vegetables. Hence, the share of potato cultivation in Net Sown Area is 5.19 per cent. The net sown area of Bihar was 56.03-lakh hectare during 2001-02 after Its bifurcation in two states. Potato, being a short gestation vegetable crop, is cultivated only once In a year during Rabi season as a major practice. However, in a stray case, it is also cultivated in post kharif season.

1.9 During 2000-01 there had been 204 Cold Storages registered with Cold Storage Owners Association, Bihar and State Directorate of Horticulture, Bihar, existed in the State. Annexure I I may be referred

{ 3 }

1.10

for the distribution of those 204 Cold Storages in Bihar. I t may be noticed that more than 87 per cent of total existing capacity of the Cold Storages in Bihar were utilised for potato alone. Even the rest of the Cold Storages classified as 'multipurpose' were for storing potato only as a major constituent of storing products. The small proportion of diversified products stored was mainly consisted of eggs, jaggery or gur.

In Table 1 .1 , particulars of existing and potential number of cold

storages in the sample districts and in Bihar as a whole are furnished.

Table 1.1

Existing and Potential Number of Cold Storages in Sample District and in Bihar

Name of District

Number of cold

storages

Capacity in m

Area under potato

cultivation in

thousand ha.

Production of Potato

(MT)

Quantity (MT) to be

stored

The effective

gap in the capacity in

MT (6-3)

Potential number of • Cold Storages

1 2 . 3 4 5 6 7 8

Muzaffarpur 10 29,985 9.85 117,800 70,680 40,695 9

Samastipur 8 45,495 12.35 172,300 103,380 57,885 -'3

12 Saran 20 69,870 14.7 202,150 121,290 51,420 ' 11

Vaishali 10 57,755 11.95 168,400 101,040 43,285 9

Purnea 5 19,140 6.2 62,800 37,680 18,540 4

Bihar State 204 726,975 313.8 3,993,500 2,396,100 1,669,125 365

Note : The above figure includes non-registered Cold Storages. Hence the number of Cold Storages as mentioned Annexure I I may be slightly different.

As seen from the above table in addition to the existing 204 cold storages 365 cold storages are required for the state of Bihar. The quantity of potato mentioned in the Column no. 6 in the above table is .estimated on the basis of 60 per cent of production of potato produced in the district. The potential estimation as above preconditions certain realistic assumptions. The location of the additional cold storage must be preceded by a scientific and realistic survey so that these are located in area where the number of cold storage is deficient vis a vis area and production of potato.

{ 4 )

CHAPTER I I

OBJECTIVE AND METHODOLOGY OF THE STUDY

2.1 Objectives of the Study

i) To study the pattern of use of cold storages, level of capacity utilization and perception of users.

ii) To assess the actual cost of investment, adequacy of loan and deviation from sanction.

iii) To study the adherence to techno-economic specifications and to identify the reasons for divergence, if any.

iv) To estimate the benefit accrued from the investment, work out the viability of units and adequacy of backward and forward linkage.

v) To study the repayment performance.

v i) To identify the problems in implementation of the scheme and suggest solutions therefore.

2.2 Selection of Sample Cold Storage : The registered Cold Storages in Bihar included eight Cold Storages under a Special Scheme of West Bengal and Bihar of the Government of India that were covered under NABARD refinance scheme and four under Capital Investment Subsidy Scheme of NABARD. The study is covered five out of those eight Cold Storages which were refinanced under the special scheme of West Bengal and Bihar and commissioned during the year 2000 (calendar year) and had completed two to three operating .cycles. Those eight cold storages were refinanced under the subsidy scheme. But subsidy could not be released in any of these eight cases by NABARD due to noncompliance of some of the terms and conditions. However, later two Cold Storages viz., Vaishali Cold Storage, Vaishali and D.K. Cold Storage, Muzaffarpur had received subsidy (during drafting stage of this report) from National Horticulture Board (NHB). As cold storages refinanced under Capital Investment Subsidy Scheme - were recent ones, they were excluded for the study.

2.3 Data Collection: The data were collected in three different questionnaires specially designed for

(i) Beneficiary farmers keeping their produce in the cold storage,

(ii) Cold storage units and

(iii) Financing banks { 5 }

2.3.1 In case of beneficiary farmers, 15 farmers per cold storage unit (depending upon the availability) were selected for the study. While selecting the beneficiary farmers, care was taken to ensure that they represented a cross section of farmers growing different crops. Chapter I I I may be referred for the details with respect to study area, financing banl<, Sample Cold Storages etc.

2.3.2 The questionnaire for beneficiary farmers included information on particulars of farmers, category of farmer, land holding, crop details including total production, domestic consumption, distance from cold storage unit, quantity stored in cold storage unit, farm gate prices, rental charges paid, etc. The questionnaire for cold storage unit had three different parts. Part A contained name and location of cold storage unit, financial details, type of unit, storage capacity created, capacity utilized and rental charges charged etc. Part B elicited cost details of cold storage unit, e.g., land and land development, preliminary and pre-operative expenses, civil structures, plant and machinery, contingencies etc. Part C related to operational and maintenance costs of the cold storage units' viz. administrative expenses, insurance, electricity, chemicals, etc. The questionnaire for financing banks included T.F.O, of cold storage unit, bank loan disbursed, loan repayment, loan outstanding etc.

2.4 Data Analysis : For studying economic viability the project evaluation techniques namely, benefit cost ratio, net present worth and internal rate of return were used. Cash flow analysis of the sample units was also attempted and its effect on repayment performance was studied.

2.4.1 Assumptions with respect to Fixed cost, variable cost, depreciation etc.

i) The life of cold storage unit for the purpose of preparation of cash flow statement taken as 15 years.

ii) The salvage value taken at the rate of 50 per cent for Civil works and 20 per cent for plant and machinery at the end of 15th year.

iii) For break-even analysis, the component of fixed cost includes salaries, repairs, insurance, administrative expenses and expenditure on post and telegraph. Whereas, the component of variable cost include expenditure on electricity, diesel, ammonia and consumable, wages and miscellaneous expenditure.

iv) Depreciation in the fixed capital cost in respect of the plant and machinery was taken at 10 per cent and that of buildings was taken at five per cent.

{ 6 }

v) The opportunity cost of fund from own resources has been excluded from the analysis.

2.4.2 Economics of Member Farmers : A separate analysis has been attempted in Chapter VI of this report elucidating the economics of potato production by the member farmers of cold storage in both situations viz., the availability of cold storage facility and nonavailability of cold storage facility. A hypothetical situation is also analysed when the potato-growing farmers had to sale the entire stock at farm gate price in absence of a cold storage in the vicinity. This imputed income is compared to the income from 40 per cent of the stock sold in farm gate price and income from the rest 60 per cent income after withdrawal of stock from the cold storage after meeting the cost of storing.

2.5 Sample Selection : Cold Storages covered under NABARD refinance scheme were considered for the study. In last decade 12 Cold Storages had been refinanced by NABARD. Out of these 12, four were under Capital Investment Subsidy Scheme, 1998 and rests eight were for the special (subsidy) scheme of West Bengal and Bihar. During the reference year of the study no Cold Storage under Capital Investment Subsidy Scheme had more than one operating cycle completed as such these were not considered for the study. Thus five sample Cold Storages were selected out of eight refinanced by NABARD under Special (Subsidy) Scheme of West Bengal and Bihar. Chapter I I I may be referred for the details of those sample Cold Storages. Annexure I X may be referred for details of those eight cold storages refinanced by NABARD under special (Subsidy) Scheme of West Bengal and Bihar.

2.6 Data Approximation : Decimal figures are rounded off up.to two digits. The production and productivity figures of potato in Chapter V I are rounded off up to the nearest upper or lower figures divisible by five. For example, 171 is made 170 or 173.50 is made 175.

2.7 Reference Year : The reference year of the study is the calendar year of 2001.

2.8 Break-even Analysis : In the present study, it is to assess the level of capacity utilisation that would enable the unit to break-even. The BEA was carried out in terms of installed capacity as per the formula given below :

Break-even point-at a given capacity utilisation

(in terms of percentage of installed capacity)

{ 7 }

Fixed Cost

Contribution *

* Rental realization-variable costs

2.9 Sensitivity Analysis : I t is impossible to quantify all the risks of a project, as different formulations of essentially the same project may involve different degrees of risk. However, a project can be tested for sensitivity to changes in some specific element to see how the benefits produced by the project will be affected. Some of the risk variables affecting the viability of the Cold Storage projects may be as under:

A) New cold storages, if any, may come up in future in the nearby area resulting in less utilisation of storage space in the existing cold storages.

B) Adverse climatic conditions like floods, droughts, frost and similar adverse climatic conditions in the area may result in lower production and thereby lower storage space utilisation of the cold storage affecting the income generation capacity.

C) Price risk, (say if prices are high at the time of harvest itself, people may not like to utilize the cold storage facility) may affect the utilization of cold storage capacity.

A detailed sensitivity analysis on account of cost and income was carried out for different risk variables associated with the cold storage units to assess the probability of the events whether it is within the range of acceptability as per practices followed regarding NPW, IRR, BCR, etc. Hence, sensitivity analysis was done for each sample Cold Storages in two ways. First, keeping the cost constraints, income or cash inflows was reduced by 10 per cent of the actual. This could have been due addition of more Cold Storages in vicinity consequent to price risk due to competition. Second, keeping cash inflow constant, the cash outflow was increased by 10 per cent . This could have been due to escalation in cost.

2.10 Time Frame : The study was conducted during October 2002 in five districts at the rate of one sample Cold Storage in each district.

( 8 }

CHAPTER I I I

CHARACTERISTICS AND PROBLEMS OF SAMPLE COLD STORAGES

3.1 All the five sample cold storages covered under the study were established in the period just one to two years preceding the reference year under a special scheme of Bengal and Bihar. This scheme gave freedom from obtaining license, rent control and requisition of cold storage space etc. and allowed functioning of free mechanism for demand-based growth of cold storage industry. It gave a quantum jump to cold storage capacity of the Storage from 5.7 lakh I T in 1995-96 to 10.5 lakh MT in 1998-99. In 1999-2000, the credit linked Capital Investment Subsidy Scheme of Govt, of India being implemented through NABARD gave further boost to increase the cold storage capacity. I ost of the cold storages established during the period were in private sector. The important characteristics of the sample cold storages are discussed below:

3.2 Location of Cold Storages : The name and location of those five sample Cold Storages are mentioned in Table 3.1 below.

Table 3.1

Location of Sample Cold storages

Name of the

Cold Storage

Location Name of -

District

D.K. Cold

Storage

Turk! (on NH 77 between Hajipur and

Muzaffarpur)

Muzaffarpur

Vishwanath

Cold Storage

On NH 85 between Chhapra and Siwan Saran

Vaishali Cold

Storage

Off Mahua on State Highway between

Hajipur and Samastipur

Vaishali

Massina Cold

Storage

Off Samastipur on State Highway

between Samastipur and Darbhanga

Samastipur

Pran Sukha

Cold Storage

Off Purnea on by-pass of NH 3 1 , Gulab

Bagh

Purnea

{ 9 }

The distance of all five sample cold storages from the district headquarters

is depicted in Table 3.2. Of the five sample cold storages three i.e. 60 per

cent were located less than 15 kms. away from the district headquarters.

All five-sample borrowers had own land in the name of one or two partners

and purchased some adjacent land to construct the cold storage on the

main road. These cold storages were mainly storing the produce of others.

The proportion of the own product (Potato), being marginal, has been ignored

in the analysis.

Table 3.2

Distance of Sample Cold Storages *

Distance from

district HQ

No. of cold storages per cent to total

0 - 05 Kms. 1 20.00%

05 - 10 Kms. 2 40.00%

10 - 15 Kms. 0 0.00%

15 - 20 Kms. 1 20.00% .

20 - 25 Kms. 0 0.00%

2 5 - 3 0 Kms. 0 0.00%

30 - 35 Kms. 1 20.00%

Total 5 1 0 0 . 0 0 %

3.3 Ownership Pattern : Each of the five sample cold storages was

owned by the member(s) of a single family tree, that is, first cousins,

daughters-in-law etc., in partnership pattern;

3.3.1 Occupational Pattern of Owners : The five sample cold storages

were in the name of 30 members. Of these 30 members, 26 per cent

were having agriculture as their main occupation while the remaining

74 per cent were doing other works viz. govt, service, trading and

professional services (Table 3.4)

{ 10 }

Table 3.3

Owners' Personal Status

Name of

Cold

storage

Num.ber of

Owners /

Directors

Sex Belong

to same

family

tree ?

Education

[viale female Non

Matri

culate

Matri

culate

Gradu

ation

Post

Gradu

ation

DKC/S 5 3 2 yes i 4

Vishwanath C/S 9 5 4 yes 1 7 1

Vaishali C/S 7 7 0 yes 4 1 1 1

Massina C/S 4 3 1 yes 1 2 1

Pransukha C/S 5 3 2 yes 4 1

Total 30 21 9 4 4 18 4

Table 3.4

Occupational Pattern of Sample Owners

Main occupation No. of owners % to total

Agriculture 8 26.67

Other( Doctor, lawyer,

lecturer/Teacher etc.)

22 73.33

Total 30 100

3.3.2 Qualification of Owners : An overwhelming majority of partners

were well educated. Among them there were medical degree holder,

law pract i t ioner, Ph.D. etc. As many as 22 members were

graduates/post graduates. In fact, excepting one case where the

majority of partners (4 out of 7) were non-matriculates, the remaining

04 units had predominant ly graduate/post graduate partners

(20 out of 23).

{ 11 }

3.3.3 Experience of Owners : All the cold storage owners were involved

in some other established business. One cold storage shareholder

had established a Zarda (chewing tobacco) factory of a popular brand

in the country having its corporate office located at Delhi. Similarly,

another was a family of the Minister in a State Government, having a

big network of transport business, five Cinema halls, and three brick

rieen. One had a well-established tannery industry in Calcutta having

its corporate office in Calcutta. Interestigly, one cold storage of its

name was already famous for producing HYVs of maize, rice etc. The

same family was having a dealership of tractors and a premise of the

cold storage was used as a garage for tractors. One had established

network of supplying Jute to different parts of the country with a

fleet of heavy motor transport vehicles and two weighing platforms

(Dharm Kanta). With such a business background, reputation and

contacts with banks, concerned district officials, police, political

godfathers etc., promoters of cold storages did not have much hurdles

in their project implementation. It was also felt during the field

invesigations that in all five-sample cold storages units were merely

a horizontal expansion of their existing businesses. The Profits earned

from such units were invested in safe and profitable avenues.

3.4 Process : Cold Storage operations for potatoes start in first week of

February with advance booking by farmers and traders. As potatoes

arrive in gunny bags (of 50 Kgs each), these are weighed, marked

and loaded on the racks. A receipt is given by the company to the

depositor with his name, address, number of bags, condition of goods,

rental charges, insurance charges, etc. The receipt is signed by hirer

and licensee. Generally, February and March are the months when

loading of goods takes place. Cold storage is operated 2 days before

loading, bringing the temperature downto one to six degrees celsius.

This temperature is uniformly maintained throughout the period of

storage. Unloading usually starts in May and goes on till November.

Seed potatoes are not dried. Table potatoes are dried in the drying

chamber, graded and repacked. From December repairing and

maintenance is done till next season starts in Feburary.

{ 12 }

Table 3.5

Actual Use and Unloading Pattern of Sample Cold Storages (2001)

N a m e of

Cold

S t o r a g e

No . of

Bags

P o t a t o

M o n t h s - w i s e un load ing ( % to t o t a l ) N a m e of

Cold

S t o r a g e

No . of

Bags

P o t a t o July August September October November

DK C/S 80000 10 15 25 25 25

\/ishwanath C/S 90000 0 0 20 25 55

Vaishali C/S 80000 0 20 20 • 20 40

Massina C/S 60000 0 0 15 70 15

Pransukha C/S 92000 0 0 20 50 . 30

Total 402000

Average of

five

80400 2 7 20 38 33

3.5 Maintenance of Cold Storages : All the sample cold storage remained vacant during the period from December to February. Four of the five sample cold storages were well maintained except Vishwanath Cold Storage. The owners carried out regular repairs and cleaning during the slack period. Painting of the pipes, motors and other machinery was carried out annually by 80 per cent of the owners. Repair of racks and pipes was also carried out during the period. One of the owners, a lawyer by profession, was very innovative in making additional insulation inside the store to reduce electricity charges. All types of repair items and machinery were available at district or tehsil headquarters.But repairing parts or replaceable parts were either procured from Delhi/Haryana/Punjab or from Calcutta.

3.6 Utilisation of Cold Storage Capacity

3.6.1 Utilisation of the sample cold storages since construction is presented in Table 3.6. Four of the five sample cold storages have been continuously used with average utilisation over the last two years ranging from 60 per cent to 70 per cent. The average utilisation for five sample cold storages worked out to 74.24 per cent over the last two years.

{ 13 }

Table 3.6

Utilisation of Sample Storages

Name of Cold

Storage

Total

Installed

Capacity

(In Bags

of 50 Kg.)

Year-wise Capacity Utilisation (In

terms of Bags of Potatoes)

Average

use in

last 2

years (No.

of bags)

1998 1999 2000 2001

DKC/S 100000 0 0

70000

( 7 0 ) .

80000

(80)

75000

(75)

Vishwanath C/S 94000 0 47000

(50)

65800

(70)

70500

(75)

68150

(72.5)

\/aishali C/S 100000 0 0 70000

(70)

80000

(80)

75000

(75)

Massina C/S 73000 0 0 50000

(68.5)

60000

(82.20)

55000

(75.35)

Pransukha C/S 120000 0 0 84000

(70)

92000

(76.67)

88000

(73.34)

Note: Figures in brackets indicate percentages.

3.6.2 One cold storage (Vishwanath C/S) was functional for the last three years. It was observed that it was utilising only the portion constructed in 1999 whereas the extended store was not used due to a major technical fault and the owners also reported non-availability of potato as another reason. The owners narrated that the extension of the store was taken up in 2000 on a written request from the farmers of the neighbouring villages. But in the last two years, the installed capacity in this area of Saran has recorded a quantum jump with establishment of about 20 cold storages. He reported that four other cold storages in the vicinity were either not utilised or converted into other uses. Prima facie inference is one of excess capacity having been created as compared to potato production in the district. However, the desk analyses and cross checking the facts from different relevant sources revealed that with only 2.02 lakh MT of potato

{ 1 4 }

3.7

production, the existence of 20 cold storages in the district with an average capacity of 4500 MT per storage, still left a gap of 1.12 lakh MT. Yet the arguments posed by the owner cannot be entirely ruled out. There was an apparent mismatch between the concentration of cold storages and the concentration of the potato growing area. Out of the 20 cold storages eight were in Garkha Block where potato production falls far short of the installed capacity of the cold storages. On the other hand, in Daryapur and Jalalpur Blocks there was only one cold storage each. The above two Blocks are reported to have a better potato growing area. Thus, in future while sanctioning cold storage projects the sanctioning authority must consider the Block wise production of the products to be stored, cost of transporting the products to distant cold storages and number of existing cold storages in the vicinity.

Trends in Cold Storage Rent : The Directorate of Horticulture, Bihar State Government until August 2000, fixed cold storage rent. The cold storage rent recorded a quantum jump from Rs. 90 per quintal in 2000 to Rs. 125 per quintal in 2001 that is from the era of control to decontrol. The year-wise average rent per quintal is presented in Table 3.7.

Table: 3.7

Cold Storage Rent (Rs./ Quintal)

Year(s) 1998 1999 2000 2001

Rent(Rs.) 70.00 80.00 90.00 125.00

3.8 Capacity of Sample Cold Storages : Of the five sample cold storages, the capacity of one was below 4,000 MT and that of the remaining four were above 4000 MT. All the cold storages above 4,000 MT were having two chambers whereas the one below 4,000 MT was having one chamber only. Separate arrangements were not made for storing different commodities.

3.9 Insurance of Cold Storages : Comprehensive insurance for cold storage and plant & machinery was taken by four Cold Storages and the remaining one was insured for fire and floods only. In fact three kinds of policies for Fire, Premises (collapse due to storm etc.) and loss of product stored due to reasons beyond control, for example,

{ 15 }

interruption in the supply of electricity were made available by the Insurance Companies.

3.10 Environmental Factors : Factory Act was applicable due to use of

hazardous ammonia gas in the cold storage for which Annual Factory

License fee was paid. Electric connections were not released till the

permission from Pollution Board was obtained.

3.11 Impact on Farmers : During the visit to cold storages, 15 farmers

of each cold storage who stored their potato were interviewed to

know their perceptions and economics of their production of potato.

Availability of space was not reported a problem unlike in the period

before decontrol. Details of these farmers and economics of storage

are given ih Chapter V I . The important observations are as under:

a) Cold storage was available within one km. to 10 per cent of

the farmers, within three km. to another 20 per cent, within

seven km. to 40 per cent of farmers and more than seven

km. to the rest. Availability of storage space was not reported

a problem by any of the farmers. The catchment area, in case

of Samastipur and Vaishali, even extended from 30 to 40 Km.

from the storage.

b) The average operational holding of potato growers was 1.2

hectare with average Net Sown Area under potato up to 78

per cent of the total Net Sown Area during Rabi season.

c) Of the total potato production of the sample farmers, 40 per

cent was sold as table potato and stored indigenously for home

consumption while the remaining was stored in cold storage.

d) Other economic indicators, such as per hectare yield, net

benefit with storing or without storing are discussed in

Chapter V I .

3.12 Problems of cold storages in Bihar

3.12.1 The first and foremost problem faced by most of the cold storages

was source of energy. The Bihar Electricity Supply Board is the only

( 16 }

source of power. It was reported during the study that, only four to

five hours of supply per day could be made available. As per the

agreement between the cold storages and the BSEB, a minimum of 3

lakh units had to be consumed by the cold storage for a line supply of

170 kV in a year. But, electricity for only four to five hours used to

be supplied per day.

3.12.2 Moreover, due to fluctuation in voltage and frequent tripping, the

usefulness of electricity goes in vain. For example, when line is there

and compressors are made functional, it takes at least one to one

and a half hours to get the adequate pressure to bring down the

temperature around the bunkers/coil. If in the process, the line is

tripped, the whole energy consumed to bring down the temperature

is wasted as again the same process and more energy will have to be

repeated /consumed, because, the ducts have to be vacuumed again.

3.12.3 Usually cold storages install 3 compressors of different capacity. For

example - if the cold storage is of two chambers, one cornpressor

each is required for each chamber. Hence, two compressors of

capacity ranging between 7" and 7.5" are installed for each chamber.

When the compressor starts its job, assuming both the chambers

have to function, services of these two compressors are utilised.

When an ambient temperature inside the cold storage is reached,

the services of these two compressors are abandoned and

compressing service is transferred to another compressor of 9" for

the maintenance. With this process, there .are some advantages.

For instance, the cold storage management has an option to operate

only one chamber in isolation depending upon the stock. In.all the

sample cold storages visited, this system was found. It was observed

that compressor components of only three companies viz. Frick India,

Cummins and Kirloskar were reputed. But in none of the sample

cold storages, Kirloskar was found, as it was the most expensive.

3.12.4 Compressors are of two types. Low Speed and High Speed. Both

have relative advantages and disadvantages. In the sample cold

storages, low speed compressors made by Frick India in the case of

{ 17 }

four cold storages and Cummins in the case of one were installed. To

run the low speed compressor of 7.5", a motor of at least 60 kV is

required while to run the 9" compressor, a motor of 120 kV is required.

In an industrial unit, at a given point of time, a full load of electricity

say 170 kV may be required. But in a cold storage, for a major

proportion of the time in 24 hours the power requirement does not

exceed 80 kV. Only for a smaller proportion of time full capacity of

150 to 160 kV is required. But the BSEB charges for a fixed load of

170 kV. This is an economic burden borne by the cold storages.

Secondly, as explained above, the erratic supply or interrupted supply

spoils the partly utilised power. Due to this basic reason, out of five

cold storages, four had a complete set of generators. Hence most of

the Cold storages in Bihar are working partly with their Generator

back up and partly with electricity supplied by the BSEB. In photograph

as Exhibit No.3 a generator of 120 kV is shown to back up the

compressors during the erratic, low or no power supply from the

BSEB. The installations of such powerful generator not only add to

the capital cost, it contributes heavily towards working expenditure.

There had been an average annual expenditure on Diesel and

lubricants to the tune of Rs. three lakh for a capacity of 5000 MT cold

storages. This is an additional burden on the operational cost besides

heavy payment to the BSEB. One sample cold storage had not at all

used BSEB electricity. Rather, it did not even apply for the same. The

unit was running on Diesel only having diesel engine connected directly

to the compressors through fan belts. This unit was showing better

FRR comparatively.

^

{ 18 }

CHAPTER I V

IMPLEMENTATION OF THE SCHEMES

In this, chapter the scheme wise, that is, each cold storage wise, implementation is discussed. The details of scheme, for example, to which the scheme was submitted, date of submission etc.^ is furnished in the Annexure IX.

4.1 M/S Vaishali Sheeth Bhandar Pvt. Ltd. at Mahua, in Vaishali District

4.1.2. Financial Particulars :

Table 4.1

Rs. in lakhs

Attribute As proposed

by Bank

Recommended

by NABARD

Actual/

Effective

i) Total Financial

Outlay'

122.03 115.48 116

ii) l^argin 72.03 65.478 66

iii) Bank Loan 50 50 50

iv) NB's Refinance

@90% of (iii)

45 45 45

4.1.3 Financing Bank

4.1.4. Category of the Project

State Bank of India, Hajipur Branch, Hajipur

NABARD- Normal (Bihar Bengal Project)

4.1.5 Company and promoters of the project: The cold storage scheme was submitted by M/s Vaishali Sheeth Bhandar Pvt. Ltd. Mahua, Vaishali for establishing a new cold storage unit of 2870 MT and Ice Plant of 10 MT per day capacity for preservation of Table and Seed potatoes and other vegetables and fruits and sale of Ice Slabs. The company was registered as Private Limited Company having Licence No.95/96 dated 09 January 1999 issued by the Directorate of Horticulture, Govt, of Bihar. The names of the Promoters and their personal status are illustrated in Table 4.2.

{ 19 }

i

Table 4.2

Personal Status of the Owners of the Cold Storage

Names Age Sex Belong to

same family

tree

Designation Experience

1 Md. Aslam 43 Male Yes Chairman Trading &

Manufacturing

Leather

2 Fazle Ahmed 48 Male Yes M.D. -do-

3 |V|d. Aminuddin 42 Male Yes Director Exporter of

Leather goods

4 |v|d. S. Hague 39 Male Yes Director Motor parts

dealer

5 Md. Haroon 62 Male Yes Director Trading of

Leather goods

6 Md. T Khan 55 Male Yes Director Trading &

Manufacturing

Leather Goods

7 Md. Asghar 55 Male Yes Director Motor parts

shop

•

4.1.6 The promoters have contributed to the tune of Rs.66 lakh. They proposed to avail of Rs.50.00 lakh as term loan from the State Bank of India. This confirms to NABARD approved project outlay at Rs.116 lakh.

4.1.7 The project envisaged setting up of 2870 MT (287000 cu. ft.) capacity cold storage unit and 10 MT per day ice plant. The unit was ideally located, as it was near to the market and was also near to the raw material. The project site was well connected by ail weather road. During field visit it was seen that the plan of ice plant as envisaged in the project was dropped. As such the chamber meant for the ice plant was converted into the chamber for the potato. Hence the installed capacity of the cold storage increased from 2870 MT to 4000 MT. In fact, the non installation of the ice plant brought internal economies of scale and without rise in the cost the capacity of the

{ 20 }

storage increased.This is one of the reasons why it fetched better FRR. The promoters had obtained the various approvals and permissions for setting up the cold storage unit from the competent authorities:

4.1.8 Technology Collaboration/Technology Tie-up : The company installed bunker type cooling coil assembly and Atmospheric condenser assembly and Liquid Ammonia for Refrigerant. The company/bank had stated that the refrigeration plant and machinery together with its accessories, reputed companies indigenously manufactured insulation works, electrical equipments required for a Cold Storage Unit and there was no difficulty in procuring them. The company had engaged the service of experienced professional technocrats-who had expertise and experience in Refrigeration and Air-conditioning. A condition was stipulated that the financing bank must ensure and satisfy itself that quality equipments were used and the services of the expert were utilised till successful operation of unit started. The plant and machinery were supplied, installed and test run by the supplier as per package deal. The only difference was the source of power.

4.1.9 Backward Linkages : The main raw material was potato, which was grown abundantly in the area. The production in Vaishali district was comparatively higher at 1.68 lakh MT during 2001. Besides potato, green vegetable and fruits mainly mango were also grown in the district but these were never stored in this cold storage. The basic reason of not storing other horticultural products available in abundant quantity was the product specific requirement of temperature and humidity. It requires more sophisticated technical know-how and costly installation of multi chamber cold storage with varied humidity and temperature. There was abundant ground water available in the area. A condition was being stipulated that the bank must ensure that the water was suitable for the type of condensors being proposed for the refregertion unit. The company/bank did not Indicate whether it had got approval from the BSEB for power connection to its proposed Cold Storage Unit or not. In fact, in the field level study, it was discovered that this unit was runnin'g on diesel engine exclusively and had not obtained any power from the BSEB. The company proposed to purchase two standby Diesel Gensets of

{ 21 }

i

82.5 KVA and 100 KVA capacities. However, keeping in view the peak

load of 80 HP of the unit, only one Genset of 100 KVA capacity was

allowed. In reality, the company had obtained two Diesel engines

that were directly connected to the compressors through fan belts.

The site was located near Vaishali-Samasti.pur Road and regular

transportation was available. Local transport viz. carts, lorries and

tractors were available for the potato. Skilled/Semi-skilled/Unskilled

labourers were available in the area.

4.1.10. Forward Linkage (Market ing) : As discussed above, the demand

far exceeds the availability of the installed storage capacity at present.

Hence there was no problem in marketing. Table No. 4.2 presents

data on the production of Potato during 2001, available installed

capacity of cold storage and effective gap. Assuming that 40 per cent

of the production would be stored either for home consumption or

sale from the farm directly at the farm gate price or both, quantity to

be stored in the cold storages was estimated at 101040 tones and

effective gap was estimated at 43,285 tones by deducting the existing

capacity from the quantity to be stored.

Table 4.3

Effective Gap in Vaishali District for storing Potato

Production

in MT

Number of

Cold Storages

Existing

capacity in MT

Gap in MT Effective

Gap in MT

168,400 10 ' 57,755 110,645 43,285

4.L.11 Technical Feasibility : The company had engaged the services of

exper ienced engineers for instal l ing the Cold Storage Uni t .

Refrigeration plant and machinery together with accessories, electrical

equipments, insulation materials etc. required for installation of Cold

Storage Unit were easily available indigenously and were of Standard

quality. The required temperature and humidity inside and outside

the Cold Storage were maintained as per the specifications. Keeping

in view the capacity of the unit, one acre of land was considered

sufficient and hence the cost of land considered was reduced

propor t ionate ly . Accordingly, the cost of boundary wal l was

aiso reduced.

{ 22 }

It was reported by State Bank of India that it had already accorded its sanction. The operating cycle, which coincided with harvesting season commenced from the first week of February 2000. Thus during the reference year of the study it had completed only one cycle of operation. The details of the item wise cost proposed and considered are indicated in Chapter V.

4.1.12.Financial Viability and Financial Parameters : The income to the Cold Storage Unit accrued from space rental mainly. Until August 2000 the State Government in consultation with Cold Storage companies fixed the rent and the same was Rs.95/- per quintal in the state until 23 August 2000. Since the unit was under the special scheme of Bengal and Bihar the Cold Storage, it was given freedom of charging its own rent. However, the actual rate being charged by the Cold Storage Units in the State varied from Rs.l25 to Rs,150 per quintal per season. The actual rent charged by this cold storage was Rs. 125 and hence economics was calculated at this rate.

4.1.13 Repayment Schedule : The bank had prescribed a repayrnent period of six years.

4.1.14 SWOT Analysis :

(a) Strength : The area selected for setting up of the Cold Storage Unit was suitable for the purpose. The demand for Storage space far exceeded the availability. This could be attributed as a strength for establishing Cold Storages..

(b) Weakness : Power Load Shedding is a usual problem ifi the State. However, the company had extinguished its dependence on the Bihar Electricity Board by not applying for power from the BSEB.

(c) Opportunities : There may be new potato growers in the area. Further other types of perishable fruits and vegetables can be stored. Eggs can also be stored and this may give boost to poultry (layer) farming and its marketing at distant, places.

(d) Threat : There is no material threat to this activity.

4.1.15 Special Terms and Conditions : In addition to the usual terms and

{ 23 }

conditions, the following Special terms and conditions were stipulated.

(i) The financing bank must verify and satisfy itself before releasing the loan to the borrower in respect of compliance to rules and norms of various Govt. Departments. These commitment were complied by the bank.

(ii) The financing bank must ensure that the construction of building and its ancillary structure were done strictly as per the approved drawings. The same was adhered to.

(iii) The financing bank must ensure and satisfy itself that only quality and New equipments were purchased and experienced persons were engaged in the construction of the Cold Storage. This was also adhered to. In fact it was condoned to demonstrate the actual functioning of the machinery before the promoters and the financing bank officials,

(iv) The financing bank must ensure and satisfy itself that racks along the walls were as per the sub-soil strength of the site and also as per the specifications. To this condition, in fact, no documentary evidence was found. However, the bank officials assured that all these were verified during the construction.

(v) The bank had to verify the bills and receipts for machinery items and other purchases while disbursing term loan. The bank had verified all relative bills and receipts of plant and machinery.

(vi) The financing bank must ensure that the water used for the type of condensers was suitable. To this condition, no evidence of verification was found. However, it was stated by the bank officials that all technical conditionality was adhered to.

(vii) The financing bank must ensure thatthe company invested the entire down payment before release of loan. In fact, the actual disbursement had started only after the site development and construction of the structure without insulation.

(viii) The financing bank must ensure that the plants as well as the

{ 24 }

stored crops were covered by comprehensive insurance policy. However, the cold storage was not insured for comprehensive insurance policy. It was insured for only fire and natural hazards.

4.2 M/s Viswanath Cold Storage Pvt. Ltd. at Tekniwas, Chhapra in Saran District

4.2.1 Purpose of the Project : Construction and establishment of Cold Storage Unit of 4700 MT capacity under Bihar Bengal Scheme

4.2.2. Financial Bank : State Bank of India, Rajendra College, Chhapra Branch, Chhapra , District - Saran

4.2.3. Financial Particulars

Table 4.4

Rs. in lakh

SI.No. Attributes As proposed

by Bank

Recommended

by NABARD

Actual/

Effective

i Total Financial

Outlay

133.95 131.18 122.50

ii Margin 63.95 61.178 52.50

iii Bank Loan 70.00 70 70.00

iv NB's Refinance

@90% of (iii)

63.00 63.000 63.00

4.2.4. Category of the Project : NABARD-Normal (Under Bihar and

Bengal Special Scheme)

4.2.5. Company and promoter of the project: The cold storage scheme

was submitted by M/s Viswanath Cold Storage Pvt. Ltd., Chhapra,

Saran for establishing a new cold storage unit of 4700 MT capacity

for preservation of Table and Seed potatoes and other vegetables

and fruits. The company was registered under the companies Act,

1956 having the Registration No. 156/98. The names of the promoters/

share holders and their Personal Status are illustrated in Table 4.5.

{ 25 }

Table 4.5

Personal Status of the Owners

Names Age experience Designation

1 Raj Kamal Male 46 Transport and

Cinema hall

Managing

Director

2 Bipin Kumar Singh Male 48 Brick kiln Director

3 Binay Kumar Singh Male 32 Brick kiln Director

4 Dilip Kumar Singh Male 35 Cinema Hall Share Holder

5 Pankaj Kumar Singh Male 40 Cinema Hall Share Holder

6 Smt. Sharda Devi Female 35 Advocate Share Holder

7 Smt. Kanta Devi Female 32 House wife Share Holder

8 Smt. Bindu Devi Female 35 House wife Share Holder

9 Smt. Pushpa Devi

(Singh)

Female 28 House wife Share Holder

The promoter and shareholders had contributed to the tune of Rs.52.50

lakh in addition to Rs.70.00 lakh as term loan from the State Bank of India.

However, as per NABARD recommendation the project outlay was worked

out at Rs.131.18 lakh but the actual investment was Rs.122.50 lakh. The

actual investment was less than the warranted due to more diversified

estimiation of capital components in the project while in reality, most of the

components were made available in a package deal from the suppliers

economising the cost.

4.2.6 Project, Profile, Location and Suitability of the site : The project

envisaged setting up of 4700 metric MT (16128.25 cu. m.) capacity

cold storage unit. The Unit is located atTekniwas on Chhapra-Siwan

Main Road. The unit is ideally located, as it is near to the market and

is also near to the raw material. Regarding other features, for example,

backward linkages, technical feasibility, SWOT Analyses etc., these

factors discussed with respect to the Vaishali Cold Storage in preceding

Para 4.1 onward are applicable to this cold storage also. However,

{ 26 }

unlike Vaishali Cold Storage this cold storage had taken the connection

of power from the BSEB as well as back up generator set.

The details of the item-wise cost proposed and recommended are

indicated in the Chapter V.

4.2.7 Financial viability and Financial Parameters : The capacity

utilisation considered for financial analysis purpose is given in the

following Table No.4.6 as under :

Table 4.6

Declared capacity 6000 MT

Licensed capacity 15854 cu.m. or 4600 MT

Installed capacity 16128.28 cub.m. or 4744 MT @3.4 cu.m./mt of potato

Utilisation 1st operational year . 70% Utilisation

2nd operational year 80%

Utilisation

3rd operational year 90%

Utilisation

4th operational year onwards 100%

The summary of financial analysis as appraised and that of actual is illustrated in the Table 4.7 :

Table 4.7

Financial Appraisal Ex ante and Ex post

As Appraised Actual (Ex Post)

NPW at 15 % DF Rs. 17.628 Rs.63.31

BCR at 15%DF 1.09 1.33

FRR 18 % 26.50 %

BEP 43.94 % 39 %

4.3 M/S Massina Cold Storage Ltd., Muktapur, Samastipur

4.3.1 financial programme

{ 27 }

Table 4.8

Financial programme

(Rs. in lakh)

SI.No. Particulars Proposed by

the bank Recommended

by NABARD Actual

2.1 Total Financial Outlay 133.90 133.90 146.00

2.2 Entrepreneur's equity 88.90 88.90 101.00

2.3 Bank Loan (MT loan) 45.00 45.00 45.00

4.3.2 . Financing Bank : State Bank of India (SBI)

4.3.3 . Implement ing branch : AMY Mathurapur(Samastipur) Branch.

4.3.4. Category of the project : NABARD- Normal (West Bengal and Bihar

for construction/expansion/modernisation of cold storages and

storage godown for Horticulture produce.)

4.3.5 Personal Status of the Owners

Table 4.9

Personal Status of the Owners

Names Age Sex Belong to

same family

tree

Designation Experience

1 Shri Ramanand

Jha

43 Male Yes Chairman Trading and

Agri Seeds

Processing

2 Shri Jaishankar

Jha

35 Male yes M.D. Dealership of

Tractors

Finance

Company to

finance

tractors

3 Smt Ranju Devi 38 Female yes Director —

4 Smt. Bina Devi 39 Female yes Director

{ 28 }

4.3.6 Annual Instal led Capacity: 4000 MT (Proposed)

3650 MT (Recommended)

4.3.7 Capacity utilisation

Table 4 .10

Capacity utilisation

SI. No. Year Proposed Recommended Actual

i I year 70%-2800 MT NIL same

ii. I I year 80%-3200 MT 70%-2555 MT same

iii. I I I year. 90%-3600 MT 80%-2920 MT same

iv. IV year onwards 100%-4000 MT 90%-3285 MT 3,650

4.3.8 Technology proposed : Refrigeration with unhydrous Ammonia as

refrigerant was to be operated on the principle.ofadiabetic expansion.

4.3.9 Storage area One cold chamber of

125' X 82'.9" X 42" dimension.

4.3.10 Storage temperature : 0-4° C (37° degree to 39° Fahrenheit).

The financing bank had sanctioned the captioned cold storage project

with a medium term loan of Rs.45.00 lakh on 18.02.99 with a rate of

interest of 15.81 per cent. The State of Bihar was not eligible to avail

the facilities under the Capital Investment Subsidy Scheme of Govt,

of India at the t ime of sanction by the bank as the rent control was

not waived till 28th August 2000. Therefore, the captioned project

was considered under the special scheme for Bihar and West Bengal,

as approved by H.O.

4 . 3 . 1 1 . Unit and the Promoter : The cold storage unit was established

at Muktapur village, Samastipur district, about 7 Km from Samastipur

town. It was a limited company incorporated on 29th July 1997 under

the companies Act, 1956. The promoters of the company included

Shri Ramanand Jha(51 years). Managing Director and three other

promoter directors, who were in the age group of 30-35 years. The

promoters were reported to be having good experience in activities

like agriculture, transport, agri-input supply, distribution/sale of farm

{ 29 }

machinery etc. The financing bank had reported that the area selected

for the cold storage unit was suitable and the promoters were capable

of managing the cold storage successfully.

4.3.12.Capacity : The installed capacity proposed was 4000 MT of potato

storage. The unit had proposed and the financing bank had approved

a single storage chamber of 125' x 82'.9" x 42' dimension. The storage

volume works out to 435225 eft. The above storage chamber could

accomodate/s tore only 3650 MT of potato @120 eft per MT.

Therefore,it was considered for the installed capacity of the unit at

3650 MT as against 4000 MT proposed by the unit and endorsed by

the financing bank.

The financing bank had sanctioned the term loan on 18.02.99. As

per NABARD H.O. instructions dated 12.11.2000, cold storage unit

with single chamber could also be considered for refinance sanction

with single chamber, if the bank had sanctioned the unit prior to

09.06.2000. Therefore this unit was considered for sanction of

refinance.

4.3.13.Storage Technology : The refrigerant used was Ammonia and the

cold storage system was operated on the principle of adiabetic

expansion of refrigerant. Frick Model 7"x7" slow speed heavy duty

industrial type double cylinder reciprocating ammonia compressor,

Frick ammonia oil separator (20"x5 ' ) , Frick ammonia receiver

(24"x l6 " ) , 50 HP-SPDP slippering induction motor, insulation of floor

and walls with expanded polystyrene (50 mm to 100 mm thickness)

and other necessary equipments were installed to create a cold storage

condition of 36 degree Fahrenheit and 75 to 80 per cent Relative

Humidity. Ammonia was a safe, Non Ozone Depleting substance.

Regarding other features, for example, backward linkages, technical

feasibilities etc., factors discussed with respect to the Vaishali Cold

Storage in preceding para 4.1 are also applicable to this cold storage.

However, unlike Vaishali Cold Storage this cold storage had taken the

connection of power from the BSEB as well as back up generator set.

4.3.14.Potentiality of Cold storage in the district : Samastipur district

is producing annually about 1.72 lakh MT of potato. As per the

information furnished by the Department of Horticulture, Government

of Bihar, there were eight cold storage units functioning in the district,

{ 30 }

4.4

with a total storage capacity of 73321 cubic metre which was adequate

to store about 21565 MT of potato, which took take care of only 12.5

per cent of average annual production of potato in the district.

Therefore, there was a scope for creation of additional cold storage

facility. In the light of the above, it was felt that the cold storage

sector had good potential for expansion as a commercial venture in

Samastipur district of Bihar.

M/S D.K. Ice & Cold Storage, Turki, Muzaffarpur.

4.4.1 Financing Branch : State Bank of India, ADB, l^uzaffarpur

4.4.2 Unit and Promoter : The cold storage unit was established at Turki

village, (Muzaffarpur-Hajipur road) Muzaffarpur district, about 10 Kms

from Muzaffarpur town. It is a partnership firm, promoted by Shri

Avanti Lal(reported to be one of the promoters of M/s Prabhat Zarda

Factory, Muzaffarpur) and his relatives.

4.4.3 Capacity : The proposed installed capacity was 5000 MT of potato

storage. The unit had proposed to construct two cold store chambers,

witn pre-cooling and drying facility.

The storage chambers were of 128M" x 96'.1" x 51'.6" dimension.

The total storage volume worked out to 6,35,217 eft, which was

found sufficient to meet the proposed storage capacity @120 eft per

mt of potato.

4.4.4 Capacity Utilisation : The financing bank had proposed 80 per cent

capacity utilization during the initial two years and 90 per cent during

the subsequent years. The proposed capacity utilization was found

to be on the higher side. NABARD recommended capacity utilization

as shown in the Table 4.11.

Table 4.11

I year • NIL NIL

I I year 70% 3500 MT

I I I year 80% 4000 MT

IV year onwards 90% 4500 MT

{ 31 }

4.4.5 Storage Technology : The storage technology was Ammonia as a refrigerant, under vapour compression system (VCS). Arnmonia O.S.(Scrubber type) 12" x 36" and H.D.I, compressors of 7" x 7" were installed (2 Nos. in each) for the purpose. A storage atmoshphere of 37° to 39° degree Fahrenheit and 75 per cent to 80 per cent Relative Humidity was maintained inside the storage chambers, with suitable rack and insulation arrangements, which was found reasonable. The financing bank had studied the storage technology proposed alongwith the plant and machinery included and approved them. Regarding other features like, backward linkages, technical feasibilities etc. factors discussed with respect to the Vaishali Cold Storage in preceding chapters are also applicable to this cold storage. However, unlike Vaishali Cold Storage this cold storage had taken the connection of power from the BSEB as well as back up generator sets.

4.4.6 Pattern of Funding : The total project cost of Rs. 148.41 lakh was proposed to be funded in the pattern as per Table 4.12.

Table 4.12

Pattern of Funding

(Rs.in lakh)

SI.No. Particulars Recommended by NABARD

and financing bank

Actual

a Promoters' contribution 70.00 89.50

b. Unsecured loan 4.41 0.00

c. Term loan 74.00 74.00

Total 148 .41 163.50

4.4.7. Potentiality in the district : Muzaffarpur district is producing annually about 1.18 lakh MTof potato. As per the information furnished by the Department of Horticulture (GoB), there were six Cold Storages functioning in the district, with a total storage capacity of 50,815 cubic metres. The above cold storage capacity was found to be 15,000 MT of potato, only 12.82 per cent of average annual production of potato in the district. Therefore, there was scope for creation of

{ 32 }

additional cold storage facility in the district. •

4.4.8 This unit had incurred extra expenditure on 200 kV generator over and above two generators of 80 kV and 60 kV taking into account the future expansion. But due to the heavy cost involved in obtaining the extra Generator Set in addition to two existing ones, the cost of the unit rose enough to affect the FRR adversely. This unit had scored the lowest FRR among all sample Cold Storages.

On scrutiny of the project it was found that the cold storage project was technically feasible, financial viable and bankable. The gist of techno financial analysis and the results are as under:

4.4.9 Technical parameters :

i. The location of the project and accessibility were found to be satisfactory.

ii. The promoters of the cold storage were found to have the required skill and experience to run the unit successfully with the support of technical staff and skilled manpower.

iii. The cold storage system selected viz. refrigeration with unhydrous Ammonia under VAS was found to be reasonable.

iv. The cold storage space to be created at 6.35-lakh eft. was found adequate to meet the storage requirement of 5000 MT(at 100% capacity utilisation) with 120 eft. per MT, as recommended by NABARD HO. The capacity of the cold storage proposed, storage technology considered with ammonia as refrigerant under vapor compression system adopting/ installing ammonia O.S(scrubber type ) 12" x 36" and H.D.I. Compressors of 7"x7"were found adequate to meet the requirement..

V. Forthe cold storage, rent of Rs.lOO/qtI. was charged against the financing bank's proposal of Rs.l25/qtl., considering the past trend, current level of rent / fluctuation / variation due to commodity arrival/demand, decontrol of cold storage rentals etc. Here in this case only, the rent charged by the cold storage was Rs.lOO.OO/quintal instead of Rs.l25.00/quintal charged by other cold storages.

{ 33 }

4.5 M / S Pransukha Cold Storage Pvt. Ltd., Purnea

4 .5 .1 Purpose of the Project : To provide cold storage/controlled storage

facility to potato and otiner horticulture crops.

4.5.2 Financial Pattern

Table 4. 13

Financial Pattern

(Rs. in lakh)

SI.

No.

Financial

Programme

Proposed by

the bank

Recommended

by NABARD

Actual

1 Total Financial Outlay 180 180 180

2 Entrepreneur's equity 90 90 90

3 Bank Loan (MT loan) 90 90 90

4.5 .3 . Financial Bank

4.5.4 Implement ing branch

4.5.5. Category of the project

4 .5 .6 . Details of the project

State Bank of India

SBI, Gulab bagh Branch, Purnea

NABARD - Normal,

( Bengal and Bihar Project)

Table 4 .14

Name of the unit/project M/S Pransukha Cold Storage (Pvt.) Ltd., Purnea

Location City Road, Gulab Bagh, Dist. Purnea

Constitution Private Limited Company, incorporated March 1999

Management Shri Ajay Kumar Choudhary, Managing Director

Smt. Sita Devi Choudhary, Director

Shri Sanjay Kumar Choudhary, Director

Mrs. Kalpana Choudhary, Director

Shri Shekhar Kumar Choudhary

Annual Installed Capacity 6000 MT

1 34 }

Capacity utilisation

Proposed Actual

i. I year 70% - 4200 MT NIL

ii. I I year 80% - 4800 MT 70% - 4200 MT

i i i. I I I year 90% - 5400 MT 80% - 4800 MT

iv. IV year onwards 90% - 5400 MT

4.5.7 Refrigeration with unhydrous Ammonia is the source of refrigerant that is a traditional technology. The Storage area of two chambers of 90'x90' each with a height of 45 feet. The storage temperature was maintained at 0 - 4° C (32° to 39° F).

Regarding other features, for example, backward linkages, technical feasibilities etc., factors discussed with respect to the Vaishali Cold Storage in preceding chapters are also applicable to this cold storage. However, unlike Vaishali Cold Storage this cold storage had taken the connection of power from the BSEB as well as back up generator set. The cold storage space created at 6.89-lakh eft. was found adequate to meet the storage requirement of 6000 MT (at 100% capacity utilisation) with 120 eft. per MT, as recommended by NAWARD HO. The capacity of the cold storage system with FRICK model 7"x7" Ammonia Compressor with a capacity of 40.4 TR. at 35 Psi suction and 185 Psi condensing pressure (RPM 400 and BHP 48: 3 such units) was found adequate to meet the requirement.

4.5.8. The total project cost approved by the financing bank at Rs. 180.00 lakh was found to be reasonable for the storage capacity creation. The average project cost worked out to Rs. 3000 per MT, which was within the NABARD suggested cost range of Rs. 3000 to Rs. 4000 per MT of storage capacity of a new cold storage.

{ 35 }

C H A P T E R V

COST OF INVESTMENT I N COLD STORAGES

5.1 At Historical Prices / Reference Years' Prices

5.1.1 The cost of investment in the sample cold storages has been worked out in this chapter. Adequacy of loan amount and the margin by the borrowers has also been discussed.

5.1.2 All the sample cold storages covered under the study were designed for storing a single commodity i.e. potato. The major items of investment cost were (1) Land and construction of chambers, (2) thermal insulation, (3) plant & machinery for refrigeration system and (4) electrical fittings and fixtures along with stand by Generator set. Actual cost of investment at reference years, prices for the sample cold storages are given in Table 5 . 1 . All the five sample cold storages were new. The average capacity of five sample cold storages was 4870 MT and the average total cost worked out for this capacity was about Rs. 145.6 lakh i.e. Rs. 2912 per MT. Broad item-wise cost for the sample cold storages is discussed below:.

5.2 Land and Site Development: Land cost and expenses for development of the site were included in all the sample cases. Average cost for site development worked out to Rs.3.6 lakhs for capacity ranging between 3600 MT and 6000 Mt.

Table 5.1

Actual cost of investment at Historical / Reference Year's Prices

(Rs. in lakh)

Name of Cold

Storage

Capacity (Mt)

Land and Site Dev.

Civil Work

Plant and

Machinery

Other machinery Furniture & Fixture

Total (3to6)

1 2 3 4 5 6 7

DK C/S 5,000 5 70.00 70.00 18.50 163.50

Vishwanath C/S 4,700 3.5 69.00 40.00 10.00 122.50

Vaishali C/S 5,000 3 60.00 35.00 18.00 116.00

Massina C/S 3,650 3 70.00 65.00 8.00 146.00

Pransukha C/S 6,000 - 80.00* 91.00 9.00 180.00

Avg. 4 ,870 2.9 69 .80 60 .20 12.70 145 .60

* Includes cost of land and site development.

{ 36 }

5.3 Civil work : Civil work included construction of chambers, pre-dry shed, machine room, office, staff quarters, water tank, boundary wall etc. Some of the other items like racking support and platform, tubewell installation expenses were also been clubbed under the broad head of civil works. Average expenditure of these items for capacity of 3600 tones to 6000 tones worked out to Rs.69.80 lakh i.e. about 47 per cent of the total cost.

5.4 Plant & Machinery : Main items under Plant and Machinery were compressor system comprising compressor, condenser, receiver and air-cooling units and associated piping and controls. Separate cost estimates for electric items and installation were not available for all the cold storages. Therefore, cost of all these items was clubbed with under this head. Bunker type coils installed on top floors with conventional ceiling fans were used by three of the sample units for air circulation with small variation in the setting. While the rest of two sample units used Freezid coil system on top floors with conventional ceiling funs for air circulation. Generally two doors were provided with opening of one small door in the machine room. Independent transformers were also installed with each of the units. All the sample cold storage owners had purchased generator sets. Cost of plants and machinery as a percentage of total investment cost for all sample units worked out to about 41,35 per cent. W^de cost variations in the cost of plant & machinery for individual units was due to mismatching of capacity in some cases.

5.5 Furnitures & Fixtures : Items under this expenditure included

furniture in the office and some sitting provision for the farmers.

Cost under this head was almost negligible for captive cold storages

and the average cost under this head was just 0.6 per cent of the

total investment cost.

5.6 Contingencies : No sample cold storage could give genuine evidence on extra expenditure on contingencies. Hence, expenditure under this head has been shown nil.

5.7 Adequacy of loan amount : The actual investment cost, the cost

approved by bank and the loan amount disbursed for the sample

cold storages are presented in Table 5.2 :

{ 37 }

Table 5.2

Actual Cost of Investment and Bank Loan

(Rs. in Lakh)

Name of

Cold

Storage

Actual Cost

of

Investment

Cost of

Investment

Approved by Bank/

NABARD

Bank Loan Bank Loan

as per cent

of Actual Cost (4to2

percentage)

Percentage

Share of

(4) to (3)

1 2 3 4 5 6

DK C/S 163.50 148.41 74.00 45.26 49.86

Vishwanath C/S

122.50 131.18 70.00 57.14 53.36

Vaishali C/S 116.00 115.48 50.00 43.10 43.30

Massina C/S 146.00 146.00 45.00 30.82 30.82

Pransukha C/S

180.00 180.00 90.00 50.00 50.00

Total 728.00 721.07 329.00

Average 14.5.60 144.21 65.80

The table shows that the actual cost was just one per cent higher than the

cost approved by banks/NABARD. I t indicates realistic appraisal of cost

estimates by the banks NABARD. However, the bank's loan was just 45 per

cent of actual cost that put heavy strain on the investor. Among the individuals,

cash share of loan to actual investment cost varied between 50.0 and 82.7

per cent. Three of them could not match investment in the civil work and

the plant and machinery due to information gap as the figures wei-e made

available from income tax returns.

{ 38 }

CHAPTER V I

ECONOMICS OF POTATO STORAGE

6.1 In this chapter an attempt has been made to justify the storing of

potato by the member farmers. Members kept their stock of potato

in the sample cold storages. They had cultivated potato and kept

their produce in the cold storage. The other user group included

those who did not actually cultivate potato, but lent money to the

cultivating farmers. Since cost of cultivation is relatively higher, the

cultivating farmers are almost interlocked to sell their harvested potato

to the same moneylender or so called trading farmer. In Bihar, this

system is widely practiced and, usually, the trading farmer or the

moneylender is none other than the owner of the cold storage. While

selecting sample, care was taken to exclude such interlocked farmers

from the analysis. It deserves a separate treatment. The principal

objective of these analyses is to justify the rationale of storing potato.

With this objective the economics of production of potato was

estimated. The margins available to the benefiting farmers were

compared to the existing prices of potato at the farm gate. Bazaar

Samiti and the market in different months of the reference year.

Table 6.1 presents data on the break-up of average cost of cultivation

of potato per hectare in five different districts. The name of the district

may synonymously be used for the name of cold storage since one

sample cold storage represent one district each. Here the term

farmers/member farmers mean cultivator farmers of the concerned

cold storage. Figures in the following assessment are the average of

the 15 sample farmers per cold storage in the radius of 20 to 30 Km.

{ 39 }

Table No. 6.1

Average Cost of the potato cultivation in five district

(Cost per hectare in Rs.)

Muzaffarpur Saran Samastipur Vaishali Purnea

1 Land Preparation

2,800 3,000 3,000 2,800 3,000

2 a Seed 12,000 12,000 12,000 12,000 13,500 2

b Treatment of seed

500 Not practiced

450 Not practiced

Not practiced

3 IManure 3

a Cow dung 6,750 6,500 6,700 6,000 6,700

3

b oil cake 3,000 3,100 Not practiced

2,500 Not practiced

4 Fertilizer 4

a DAP 2,550 2,450 2,600 2,500 2,700

4

b Potash 590 590 600 600 650

4

c Urea 250 260 250 250 270

5 Pesticides 5

a Alderine Dust 500 500 500 500 500

5

b Dithane-M-45 1,125 1,200 1,250 1,300 1,250

6 Labour

a Cow dung 600 580 600 600 600

b sowing 3,000 3,000 3,000 3,000 3,000

c Irrigation 750 700 800 750 800

d Soil adjustment 1,500 1,700 1,570 1,500 1,700

e Pesticide 200 250 250 200 250

f Harvesting 1,800 2,000 1,900 1,800 2,000

g Residual 400 400 400 400 400

Total 38,315 38,230 35,870 36,700 37,320

Thus cost of cultivation varies between Rs. 35870 in Samastipur district to

Rs. 38315 in Muzaffarpur district at the reference year's prices. In Table

6.2 Yield and margin per hectare are assessed. While assessing the margin,

the average of the actual farm gate price as revealed by the farmers is mentioned.

{ 40 }

Table 6.2

Economics of Potato Cultivation in the Selected Districts

Particulars Districts

.Muzaffarpur Saran Samastipur Vaishali Purnea

Yield per ha (qnti) 250 270 215 225 210

Price per qntI (Rs) 170 165 175 170 200

Total revenue per ha (Rs.)

Cost of Production

42500 44550 37625 38250 42000

Per ha (Rs.) 38,315 38230 35870 36700 37320

Margin per ha (Rs.) 4185 6320 1755 1550 4680

Rupee earned over

one.rupee spent

1.11 1.17 1.05 1.05 1.13

In Table 6.3, month wise minimum and maximum prices are given as

recorded from the records of the District Krishi Bazaar Samiti.

Table

Minimum and Maximum Price

6.3 of Potato in Rs. per Quintal

District Muzaffarpur Saran Samastipur Vaishali Purnea

Months Minimum Maximum Minimum Maximum Minimum Maximum Minimun- Maximum Minimum Maximum

1 January 270 320 325 340 270 500 430 450 350 380

2 February 250 290 325 360 250 500 420 440 300 330

3 March 240 280 350 400 240 300 260 310 350 370

4 April 280 420 400 430 280 300 260 310 380 400

5 May 415 430 400 500 415 250 230 240 400 450

6 June 425 630 500 560 425 450 350 400 450 460

7 July 600 640 560 600 600 475 400 450 500 550

8 August 585 600 620 660 585 550 450 500 500 550

9 September 600 620 630 680 600 600 500 600 600 650

10 October 620 700 620 700 620 600 500 580 650 670

11 November 690 740 650 710 690 600 570 600 650 700

12 December 600 710 650 720 600 600 550 650 600 700

{ 41 }

6.2 The minimum and maximum prices of potato as depicted in the table above were recorded from the Register of the Price Officer in the office of the-District Krishi Bazaar Samiti. These prices were recorded when the stocks made an exit from the Samiti premises. There was no record of the prices when the stock made an entry into the premises of the Samitee. However, Table 6.4 may be considered for average farm gate prices as enumerated from the member farmers of different cold storages / district. A comparison is made in the same Table 6.4 between the average farm gate price and the minimum exit price in Bazaar Samiti for the month of March only. For sake of this comparison, the farm gate price for the month of March only has been taken into consideration as potato is usually harvested in the month of February rather later half of this month. Harvesting, stock piling in the fields itself or exploring nearest cold storage for stocking etc. take time and the product is generally sold or stocked in the cold storage during the month of March only.The rationale of the difference between the farm gate price and the minimum of the exit price at Bazaar samiti is the value addition on account of transportation, Commission of the agents , at least at three exit/entries( from the field, entry into the Bazaar Samiti and Exit from the Samiti).

Table 6.4

Actual Farm Gate Price in March vis - a - vis Minimum Price as quoted from Bazaar Samiti

Rs. Per Quintal

Distr ict Muzaffarpur Saran Samastipur Vaishali Purnea M o n t h s Farm

Gate Price

Minimum

price at Bazaar Samiti

Farm Gate Price

Minimum price

at Bazaar Samiti

Farm Gate Price

Minimum price

at Bazaar Samiti

Farm Gate Price

Minimum price

at Bazaar Samiti

Farm Gate Price

Minimum price

at Bazaar Samiti

January - 270 - 325 - 270 - 430 - 350

February - 250 - 325 - 250 - 420 - 300

March 170 240 165 350 175 240 170 260 200 350

Apri l - 280 - 400 - 280 • - 260 - • 380

May - 415 - 400 - 415 - 230 - 400 June - 425 - 500 - 425 - 350 - 450

July - ' 6 0 0 - 560 - 600 - 400 - 500

August - 585 - 620 - 585 - 450 50 Sep tember - 610 - 630 - 600 -' 500 - 600

October - 620 - 620 - 620 - 500 - 650

November - 690 - 650 - 690 - 570 - 650

December - 600 - 650 - 600 - 550 - 600

{ 42 }

6.3 The same information as in Table 6.4 above is used to analyse the benefit of the farmers that they are getting by storing the rest of the stock in the nearest cold storage. To assess the benefit an analysis is done in subsequent paragraphs. The month wise average withdrawals from the cold storage is depicted in theTable6.6. For further analysis the price of post harvest period is important. As per the prices as depicted in the Table 6.3, it reveals the minimum and maximum prices during a month. Thus for further calculation these prices are converted into the average prices in each month and depicted in the following Table 6.5.

Table 6.5

Month-wise average price

(Rs. Per Quintal)

MONTH DISTRICT MONTH


January 295 335 385 440 365

February 270 345 375 430 315

March 260 375 320 285 360

April 350 415 290 285 390

May 425 450 335 235 425

June 530 530 440 375 455

July 620 580 540 495 525

August 595 640 570 425 525

September 610 655 600 530 625

October 660 660 610 540 660

November 715 680 645 585 675

December 655 685 600 600 650

To get the benefit of postponed selling of potato by withdrawal of stock , another analysis is done in the Table 6.6. In this table the total or actual average production of the sample farmers adjusted for the stock sold from the farm itself is considered. It is to be noted that all these analyses are done on the basis of the average per farmer production of potato of the sample farmers of different cold storages and not per hectare of sample

{ 43 }

farmers. In Table 6.7 below the average holding of the sample farmers is depicted along with average holding sown for potato.

Table 6.6

Average Withdrawal of the stock by the Sample Farmer

(Stock in Quintal / Price in Rs. Per Quintal)


With

drawal

of

stock

Aver

age

price

Total

Rev

enue

With

drawal

of

stock

Aver

age

price

Aver

age

price

With

drawal

of

stock

Aver

age

price

Aver

age

price

With

drawal

of

stock

Aver

age

price

Aver

age

price

With

drawal

of

stock

Aver

age

price

Aver

age

pr ice

Jan 295 335 385 440 355

Feb. 270 345 375 430 315

Mar 260 375 320 285 360

Apr. 350 415 290 ' 2 8 5 390

May 425 450 335 235 425

Jun 530 10 530 5,300 440 10 375 3,750 455

Jul. • 10 520 6,200 580 10 540 5,400 10 495 4,950 525

Aug. 20 595 11,900 30 640 19,200 570 10 425 4,250 10 525 5,250

Sep 20 610 12,200 30 655 19,650 20 500 12,000 20 530 10,600 10 625 6,250

Oct 25 560 16,500 25 650 16,500 20 510 12,200 25 540 13,500 10 560 6,500

Nov 30 715 21,450 45 680 30,600 40 645 25,800 35 585 20,475 60 575 40,500

Dec 655 585 600 600 550

Total 105 68,250 140 91,250 90 55,400 110 57,525 90 58,500

An analysis is done to get the assessment of benefit to farmers if they had

no opportunity or infrastructure, that is, cold storage in the vicinity and they

would have sold all produced potatoes in distress vis-a-vis availability of

cold storage and its services. To do this analysis, the farm gate price is

taken as the base price, assuming the rest of the stock that was in reality

stored in the cold storage, could have been sold from the farm at the same

farm gate price. In the following analysis, the stock sold from the farm and

stock sold after storing minus cost incurred in storing and sale is considered.

To get the ultimate benefit, preliminary assessment is done in Table 6.7 in

which the average of some of the basic features of farmers are assessed, for { 44 }

example, the average distance from the concerned cold storage to the trading

farmers' field. The average distance ranged from 16 Km in the case of

Samastipur Cold Storage to 25 Km in the case of.Vaishali Cold Storage.

However, a few farms were close within one to two km and some were as far

as 40 Km away. Interestingly, in the average size of holding there had not

been much variation. It ranged from 0.9 hectare in Purnea district to 1.2

hectare in Saran district. There had not been intra district variations. The

reasons for the lesser intra district variations were: homogeneous

characteristics of sample farmers as all had been growing potato. Growing

of potato is a somewhat prestigious avenue in the rural society, as only

slightly prosperous farmers could grow it, due to relatively larger investment

per hectare. It is also evident In Table 6.7 that around 60 per cent of the

average holding was utilised for the potato cultivation. In fact, there had

been a practice of cultivating potato and wheat side by side, for example, 40

per cent of holding in cultivation of wheat and 60 per cent in cultivation of

potato. Since all the sample farmers were the cultivator/member farmers of

the cold storages their maximum proportion of the holding (more than 50

per cent) was utilised for the cultivation of potato. Quantity of potato to be

stored in the cold storage and that to be sold at the farm gate including

stock for the home consumption, were dependent on the factors like capacity

to pay the rent of the cold storage and capacity to bear the cost of storing.

It is evident from Tables 6.6 and 6.7 that the proportion of produce sold

directly from the farm at the farm gate price itself varied from 26 per cent in

Saran district to 33 per cent in Purnea district. That was the limit governed

by the existing market forces.

{ 45 }'

Table 6.7

Average volume of sale at Farm gate prlce^ Cost of Storing etc.

Stock in Quintal /Price in Rs. Per Quintal

District DKC/S Muzaffarpur

Vishwanath C/S Saran




Features of Trading Farmers

1 Distance from cold storage ( Km.)

20 18 16 25 20

2 Average Size of Holdings (ha)

1 1.2 1.1 1 . 0.9

3 Area under potato (ha) 0.6 0.7 0,6 0.7 0.6

4 Yield per ha. (qnti) 250 270 215 225 210

5 Production in qnt I * 150 190 130 160 125

6 Potato sold directly Including imputed value of self consumption

Quantity 45 50 40 50 35

Price 170 165 175 170 200

7 Stored in Cold storage 105 140 90 110 90

8 Expenditure incurred on storage ( Rs.)

Transportation (upto store) 735 900 700 800 • 650

Rent paid 10,500 17,500 11,250 13,750 11,250

Gunny bags 1,000 1,100 950 1,000 700

Miscellaneous Expenditure 200 200 200 200 200

Subtota l 12,435 19,700 13,100 15,750 12,800

6.4 Most of the storages tried to interlock the market in which the farmers

had to pay more in terms of hidden rate of rent, where the accrued

rate of Interest used to be adjusted with additional charge on rent.

This, in turn, facilitates more benefit with assurance of their capacity

utilisation. To do this type of interlocking the cold storages' owners

form an informal guild of potato growers and lend money at average

rate of two to three per cent per month to potato growers which

would be adjusted in the rent. For obvious reasons in the course of

sample selection such farmers were avoided. It deserves a separate

treatment.

{"46 }

6.5 On the basis of above information and analysis thereof in Table 6.8 the net benefit per sample farmer is assessed.

Table 6.8

Net Benefit Per farmer in and absence of Cold Storages

(Stock in Quintal /Price in Rs. Per Quintal)

District DKC/S Muzaffarpur





Features of Trading Farmers

1 Potato sold directly Including imputed value of self consumption

a Quantity 45 50 40 50 35

b Price 170 165 175 170 200

2 Stored in Cold storage 105 140 90 110 90

3 a Expenditure incurred in storage

b Transportation (upto store) 735 900 700 800 650

Rent per quintal 100 125 125 125 125

c Rent paid 10,500 17,500 11,250 13,750 11,250

d Gunny bags 1,000 1,100 950 1,000 700

e Miscellaneous Expenditure 200 200 200 200 .200

f Sub total 12,435 19,700 13,225 15,875 .12,925

4 Average revenue from the stock sold from the farm

7,650 8,250 7,000 8,500 7,000

5 Average revenue from withdrawal from the cold storage

68,250 91,250 55,400 57,525 58,600

6 l a + 2 (Total quantity produced per farmer)

150 190 130 160 125

7 Average total cost per farmer 22,990 26,760 21,520 25,690 18,660

8 Assumed revenue if entire stock had been sold at farm gate price per farmer

25,500 31,350 22,750 27,200 25,000

9 Average margin ( Total Revenue - Total cost) per farmer in distress sale

2,510 4,590 1,230 1,510 6,340

10 revenue from stock withdrawal from cold

storage - cost in storage 55,815 71,550 42,175 41,650 45,675

{ 47 }

6.6 A further analysis is attempted to impute the net benefit per sample farmer, if it is assumed that the farmer had' to sell entire stock at farm gate price. Thus, in the following Table 6.9, the imputed revenue from the entire stock sold in the farm gate price is deducted from the actual revenue from the stock withdrawal from Cold Storage taking into account of cost in storage and revenue from 40 per cent of the stock sold at farm gate price.

Table 6.9

Net Benefit Imputed in presence of Cold Storages (per farmer)

District DKC/S IMuzaffarpur





Average revenue from 40 % of stock directly sold from the farm+(revenue from 60% stock withdrawal from Cold Storages - Cost in Storage)} - A

63,455 79,800 49,175 50,150 52,675

A - Imputed Revenue in distress sale

60,955 75,210 47,945 48,640 .46,335

The same analysis as in the preceding paragraph and table may be converted into per quintal of potato production by the sample farmer.

Table 6.10

Net Benefit Imputed in presence of Cold Storages (per quintal) (Amt. in Rs.)

District DKC/S Vishwanath Massina C/S Vaishali Pransukha

Muzaffarpur C/S Saran Samastipur C/S Vaishali C/S Purnea

{Average revenue from 40 % 700 675 645 550 710 of stock directly sold from the farm + ( revenue from 60% stock withdrawal from Cold Storages - Cost in Storage)}=A

A - Imputed Revenue in 685 650 635 545 660

distress sale

Thus from the above analysis it is established that the existence and use of

Cold Storage facility in the vicinity always benefit the producers of perishable

products sufficiently even after meeting the cost in storage. In subsequent

Chapter the benefit derived to the cold storage owners isanalysed.

{ 48 }

6.6. A gist of the above analyses is prepared in Table 6.9 in terms of inflow of income over and above one rupee outgo.

Table 6.11

Net income over one rupee spent with and without Gold Storages

District Muzaffarpur Saran Samastipur Vaishali •Purnea

Return on one rupee spent per farmer after storing

1.72 1.62 1.39 1.17 1.82

Return on one rupee spent per farmer if' entire stock sold at farm gate price

1.11 1.17 1.05 1.05 1.13

{ 49 }

CHAPTER - V I I

ECONOMICS OF SAMPLE COLD STORAGES

7.1 In this chapter, annual net income of the sample cold storages has been worked out by deducting operational expenses from the gross income realised by the owners of the cold storages. Financial Rate of Return was worked out to assess the financial viability of investment in each cold storage.

7.1.2 One of the sample cold storages was running ice plant too but its income was stated as very erratic and it was operated for a short period. Therefore, its expenses as well as income were not accounted for in this study. In case of two stores, where owned produce was stored, the quantity of seed potato stored being negligible (0.5 to 0.8 MT), was excluded from the analysis.

7.2 Annual Operational Expenses : The Annual Operational Expenses included electricity, salary of staff, cost of labour, annual repairs and maintenance, insurance and consumables, administrative and other expenses. These expenses in the case of five sample cold storages during 2001 are presented in Table 7 .1 . The operational expenses are estimated at the 80 per cent of the capacity utilisattion

Table 7.1

Annual Operational Expenses during 2001

Rs. in Lakh

Name of C/S DK C/S Vaishali C/S

Vishwanath C/S

Massina C/S

Pransukha • C/S

Item of operating expenses

Electricity 4 0 3 3 3.5

Diesel 3.5 6.86 2.8 2.55 3.5

Ammonia and Consumable Store 2.71 4.63 2.77 2.56 4.06

Salary of Staff 1.8 2.73 2.9 1 2.75

Cost of Contract labour 0.8 1 1.99 0.4 1.48

Repairs Building, Plant and Machinery

0.34 1.71 0.94 0.69 1.03

Insurance 0.93 0.91 0.8 0.58 0.96

Postage and Telegraph ' 0.1 0.2 0.2 0.1 0.3

Administrative Expenses 0.15 2.3 0.71 0.1 0.5

Total 14.34 20.34 16.11 10.98 18.79

{ 50 }

7.3 Cash Flow Statement : The cash flow statements for sample cold storages were prepared on the basis of assumptions referred at para 2.3.1 in the chapter I I of this report. The average capacity utilisation of the sample units was found 90 per cent for the fourth year. As discussed earlier, the sample borrowers had scheduled their construction in such a way that the unit is completed in the same year, i.e. February/March, not to miss the 'loading-in' season. The reference year in fact was the third year of the cold storage and the average utilisation capacity was 80 per cent. The cash flow statements worked out for the five operating cold storages are presented in Table 7.2 The net cash flow was used to work out the FRRs.

Table 7.2

Cash Flow Statements of the Sample Cold Storages

(Rs. in lakhs) SI. No.

Name of Cold Store

Items Project Years

Salvage value

including income in XV year

Years 1 2 3 4 - 14 15

1 DK Capital Cost 163.50 -- -- --

Operational Expenses — 12.54 14.34 16.13 16.13

Income - - 35.00 40.00 45.00 94.10

Net Cash Flow (-)163.5 22.60 25.66 28.87 77.97

2 Vishwanath Capital Cost 122.50 -- -- - .


Income -- 41.33 47.00 52.87 95.38

Net Cash Flow (-)122.5 31.03 30.89 34.75 76.85

3 Vaishali Capital Cost 116.00 — — --3 Vaishali


3 Vaishali

Income -- 43.75 50.00 56.25 93.25

3 Vaishali

Net Cash Flow (-)116 25.95 29.66 33.36 70.36

4 Massina Capital Cost 146.00 -- -- — 4 Massina

Operational Expenses -- 9.61 10.98 12.36 12.36

4 Massina

• Income -- 31.94 36.50 41.06 89.06

4 Massina

Net Cash Flow (-)146 22.33 25.52 28.70 76.70

5 Pransukha Capital Cost 180.00 — — 5 Pransukha

Operational ExfJenses -- 16.44 18.79 21.14 21.14

5 Pransukha

Income -- 52.50 60.00 67.50 124.90

5 Pransukha

Net Cash Flow (-)180 36.06 41.21 46.36 103.76

{ 51 }

Table 7.3

Gross Annual Income of Sample Cold Storages

(Rs. in lakhs)

Cold Storage M/s Weight of potato

in MT at stabilised

capacity of 90%

Rental Income * Net Income

DK 4,500 45.00 28.87

Vishwanath 4,230 52.88 34.75

Vaishali 4,500 56.25 33.36

Massina 3,285 41.06 28.70

Pransukha 5,400 67.50 46.36

Total 21,915 262.69 172.04

Average of five 4,383 52.54 34.41

* This was worked out at Rs. 1000 per MT for DK Cold Storage and at Rs. 1250 per MT for the rest.

7.4 Financial Rate of Returns (FRR) : FRRs were computed for 5 sample units are presented in Table 7.4.

Table 7.4

Financial Rate of return Sample Cold Storages

(Rs. in lakh)

SI.

No.

Name of Cold

Storage

• PW of cost

at 15 % DP

PW of benefit

at 15 % DP

NPW

15% DP

BCRat

15 % DP

PRRat

15 % DP

1 DK 218.47 219.19 0.61 1.00 17.02 %

2 Vishwanath 192.39 255.70 63.31 1.33 25.78 %

3 Vaishali 209.27 f

270.99 61 .7 l ' 1.29 26.12 %

4 Massina 185.48 200.39 14.91 1.08 17.23 %

5 Pransukha 256.64 319.73 63.09 1.25 23.26 %

{ 52 }

7.5 The average FRR was just 21.82 percent. Among the individual units FRR varied from 17.02 to 26.12 per cent. Vaishali Cold Storage was having the highest FRR with capacity utilisation of 80 percent. It is to be noted that Vaishali cold storage was the only cold storage that never incurred expenditure on electricity and electric motor and electrical appliances. This factor brought about internal economies. It has fetched better FRR than others. For details of the cash flow exercises Annexure IV to Annexure V I I I may be referred

7.6 Comparison between Financial Rate of Return realised and Ex - ante Appraisal. In Table 7.5 a comparison is depicted between the ex ante appraisal and ex post realisation. It is evident that the FRR in all cases was more than their anticipated level. However,

^ much deviation was not observed. It explains that the task of appraisal was of good quality. The principal reason for comparatively better FRR than that of anticipated level is the assumption of incorne. The rent as assumed in the appraisal was Rs. 100 per quintal while In reality, except DK Cold storage, rest of them had realised the rent at the rate of Rs. 125 per quintal.

Table No. 7.5

Comparison between Financial Rate of Return realised and Ex-ante Appraisal

(Rs. in lakhs)

PW of cost PW of benefit NPW BCR FRR

Name of cold Storage

Ex

ante

Ex post

Ex

ante

Ex

post

Ex

ante

Ex

post

Ex

ante

Ex post

Ex'^ ante

Ex

post

DK 199.34 218.47 204.15 219.19 13.82 0.61 1.07 1 17%' 17.02%

Visliwa nath

186.08 192.39 203.71 255.7 17.68 63.31 1.09 1.33 18% 25.78%

Vaishali 161.49 209.27 184.12 270.99 22.64 61.71 1.14 1.29 19.4% 26.12%

Massina 161.15 185.48 171.53 200.39 10.38 14.91 1.06 1.08 17% 17.23%

Pran

sukha;

244.84 256.64 268.57 256.64 23.73 63.09 1.26 1.25 1 8 % 23.26%

7.7 Sensitivity Analysis : The sensitivity analysis was done for each sample cold storage in two ways. First, keeping the cost constant, income or cash inflow was reduced by 10 per cent of the actual. As

: { 5 3 }

evident from Table No.7.6 the FRR declined by four to ten percentage points. Second, keeping the cash inflow constant the cash outflow was increased by 10 per cent. The FRR showed a decline within the range of three to four percentage points. Thus, sample cold storages are relat ively more sensit ive to the risk of having more cold storages in the vicinity and stiff competition thereof rather than increase in cost.

Table 7.6

Sensitivity Analysis

DK C/S C/S

Vishwanath C/S

Massina C/S

Vaishali Sheet C/S

Pransukha C/S

Actual FRR (%) 17.02 25.78 17.23 26.12 23.26

FRR after 10 % cost escalation (%)

14.44 22.81 14.49 21.85 19.87

Actual NPW 0.61 68.31 14.91 61.71 63.09

NPW after 10% escalation in cost

-21.24 44.07 -3.64 40.79 44.48

Actual BCR 1 1.33 1.08 1.29 1,25

BCR after 10% cost escalation

0.91 1.21 0.98 1,18 , 1.16

FRR after 10% decrease in income (%)

10.12 14.91 7.13 21.54 11.9

BCR after 10% decrease in income

0.72 0.97 0.77 1.17 0.92

NPW after 10% decrease

in income -61.67 -6.40 -42.39 35.77 -21.44

The utilisation capacity has almost remained stable at about 80 per cent in the initial years. Therefore, change in rent appears to be an mstftlTnental variable in free market situation.

7.8 Break even Analyses : The gist of the break-even analyses of f ive-sample cold storage is depicted in Table 7.7. Incidentally, the capacity utilisation is 80 per cent in all five cases. As seen from the table, the break even volume is widely varying as 65 per cent for DK to 39 per cent for Vishwanth C/S.The basic reason of the higher break even point for DK C/S is the electr ici ty factor. (Refer to para 3.12 Chapter I I I ) . This cold storage like other three sample cold storages had to pay the fixed charges of electricity to BSEB despite frequent

{ 5 4 }

tripping and low voltage supply. To overcome this hurdle this specific cold Storage was having a stand by Generator of 200 kV. This addition of heavy generator support amounted to increase in operational cost as well as fixed capital cost. This had adversely affected the FRR as well as the break-even point. The other three had also been maintaining stand by generator set of 60 kV and 80 kV. But this unit was maintaining a Generator set of 200 kV over and above these two sets of 60 kV and 80 kV.The rationale expressed by the owner of this storage for having this heavy Generator Set was future expansion and diversification of the storage plantfor other horticulture products like mango /litchi. On the other hand, Vaishali C/S had a relatively lower Break-even Point ( with the best FRR) on account of the same factor, electricity. This was the only sample cold storage which had not gone in for BSEB connection. Thus, a substantial amount was saved by way of expenditure on transformer, heavy electric motors and other expenditure in getting the supply from the BSEB. The unit was directly run by the Diesel engine (not through diesel cum generator set). The remaining three sample units had the breakeven point in the range of 39 to 59 per cent at 80 per cent of the capacity utilisation. For details of Break Even Analyses exercises sheet E of Annexure IV to Annexure V I I I may be referred.

Table 7.7

Break -even Analysis

(At 80% capacity utilisation)

\ (Rs. in lakh)

Particulars /Name of

Cold Storage

Sales Fixed Cost

(F)

Variable Cost

Contribution (C) (2-4)

Break Even Point in

percentage of the utilised Capacity of

potato stored • ( 3 / 5 )

BEP Sales Volume

in MT

1 2 3 4 5 6

DK 40 18.75 11.01 28.99 65 % 2,600

Vishawanath 47 18.99 8.57 38.43 39% 1,466

Vaishali 50 17.66 10.63 39.37 39.37 % 1,800

Massina 36.5 16.43 8.57 27.93 59.0% 1,723

Pransukha 60 23.26 12.57 47.43 49 % 2,350

{ 55 }

7.9 Concluding Remarks : In Neo- classical Theory of Prices, Cob Web Model has its reputation. This model is mainly attributed to the theory of Agricultural Prices. The axiom ,in fact, is a popular example of Static Economy, that explains how two static equilibrium. Convergent and Divergent, are reached over a series of crop / harvesting of an agriculture product. I t assumes that

^ t = ^ ( P ( t - i ) ) in supplier side While in demand side

Dt = f( Pt )

Where D is Demand

S is Supply/ production / investment

t is current year

t- 1 is preceding year/ preceding ( same ) crop

P is price

D is Demand

F ( ) is function of for the linear equation used in the cob web model

Both the above functions in linear form equate to get the equilibrium price. Having different elasticity of demand and supply these two sets of riiodels, convergent and dvergent, equilibrium is reached in such a way that in diagrammatic representation of the model these two possibilities look like a Cob Web, hence the model gets its name. In simplified terms, the investment decision during the current crop , say potato , by the farmer, for example, ^ the price of the preceding potato crop will be the governing factor. The lower the price of the preceding crop, the lower will be the area or/and investment in potato this year and vice-versa. I n the absence of a sensible interference, the one like cold storage, the po-ice may go down too steeply recover or conversely may soar beyond control. The findings of this study prove that the price of potato remains controlled in an open competit ive market condition within Rs. 260 per quintal in the month of March to Rs. 715 per quintal in the month of November / December in such a way that at both the major ends, producers ( o w n e r s of the cold s torage ) and Customers (Pota to growing farmers) are ext remely satisfied wi th max imum possible social justice, because public at large general get their product, potato, on a much reasonable price. The element of maximum social justice is more crucial as potato is still a major source of energy in form of glucose / starch for major proportion of Indian population.

{ 56 }

C H A P T E R V I I I

REPAYMENT PERFORMANCE

8.1 The recovery level of bank loan inter alia, is an important aggregate

indicator for the success of lending by a bank. This chapter discusses

the repayment performance of the sample financing branches and

the cold storages covered in this study. Each of the cold storages was

financed by one branch of State Bank of India. (Vide details in

Tables. 1) '

Table No. 8 .1

Name of the Bank and Cold Storage financed

Name of the controlling Office of the SBI

Name of the Financing Branch the branch

Name of the Cold Storage Financed

Location and Distance from branch

Region I i^uzaffarpur

ADB SBI Muzaffarpur

DK Cold Sorage Turk! , 15 Kms.

Region I I I Muzaffarpur

Hajipur branch Hajipur

Vaishali Cold Storage

Mahua ,30 Kms

Region I I I Muzaffarpur

Rajendra College branch, Chhapra

Vishwanath Cold Storage

Tekniwas, lOKms.

Region I I (Muzaffarpur

Agriculture Marketing Yad Branch

Massina Cold Storage

05 Kms.

Region I Purnea Gulab Bagh Branch

Pransukha Cold storage

01 Km

8.2 Recovery of Sample Branches : The recovery of total Agriculture and Allied Loans for the sample branches is given in Table 8.2. Each branch of State Bank of India had financed one Cold Storage and the recovery as on 30 June 2002 ranged from 44 to 61 per cent. The overall recovery of sample branches was about 55 per cent. The AMY branch of State Bank of India in Samastipur district had the lowest recovery, i.e. 44 per cent while Hajipur branch of State Bank of India had the highest recovery, i.e., 61 per cent. I t was notable that all the sample branches of State Bank of India had rescheduled from the envisaged ten years of repayment period to six-year period in view of the good margin in the potato during the last two years, as propounded by the senior bank officers at their Controlling Office of

{ 57 }

the SBI. This may be due to also to shed risk from lending a big amount to a single private party in a competit ive market rate, prevailing during the time of sanction. In all sample branches of SBI, the share of Cold Storage demand, although very high in terms of per unit, was negligible enough to weigh the recovery performance of the branch as a whole. This was mainly due to the location of the bank in highly trade centre and assignments entrusted, for example, ADB function, treasury etc. to the concerned branch. It is to be noted that SBI in Indian Banking System also looks after same of the function of a Central Bank, for example, treasury function, currency chest, clearing home etc. The Demand, Collection and Balance position of the sample branches is furnished in table 8.2.

Table No. 8.2

DCB of the sample branches of the SBI as on 30 June 2 0 0 1

(Rs. in Lakh)

Demand Collection Recovery %

ADB SBI [viuzaffarpur 153.61 88.30 57.48

Hajipur Branch of SBI , Hajipur 289.90 175.56 60.55

Rajendra college Branch , Chhapra 189.23 98.54 52.07

AMY Branch of SBI Samastipur 252.12 111.37 44.17

Gulab Bagh Branch of SBI Purnea 292.32 169.90 58.12

8.3 Recovery of Sample Units : Recovery of individual units is presented

in Table 8.3 and the overall recovery percentage is 64.97 as compared

to 54.49 of the branches. Of the five sample units, recovery was

more than 100 per cent for three units and less than 71 per cent for

the remaining two units. One of the units i.e. Massina Cold Storage

was an NPA Account with outstanding of about Rs.25 lakh. The high

recovery, in cases of DK C/S, Vishwanath C/S and Pransukha C/S,

firstly due payment from other sources i.e. by sale of property and

from the business sources other than Cold Storage, owned by same

family tree. This was because of awareness of owners about the rate

of interest of bank loan as compared to return on their investments.

Secondly, all the branches of SBI revised the repayment period from

ten to six years to restrict the owners in the less profitable year.

{ 58 }

Thirdly, the average loan amount as percentage of total cost was just 45.30 per cent, which created less debt liability.

Table 8.3

Demand, Collection and Balance of Sample Cold Storages as on 31 March 2002

(Rs. in lakh)

Name of Cold

Storage

Disbursement Rate of

interest

Amount Demand Collection Recovery

centage Per of the

current Demand

Amt

Outst anding

Period

DK C/S February 2000 to FebruaryZOOl

12.5% 72.22 20.38 26.98 100.00

Vishawanth C/S

Decemberl999 to January 2000

14.5% 70.00 20.50 62.14 100.00 7.87

Vaishali C/S February 2000 to March 2002

50.00 21.50 15.00 70.00 38.55

Massina C/S February 1999 to March 1999

14% 45.00 21.35 11.71 54.85 55.15

Pransukha C/S NA 14 % 90.00 24.25 30.36 100.00

{ 59 }

CHAPTER I X

SUMMARY AND CONCLUSIONS

9. INTRODUCTION

9.1.1 Cold storage : Cold storage is an enclosed chamber insulated in a

prescribed manner by refrigeration machinery to provide specified

lower temperature for preserving horticulture, olericulture, floriculture,

dairy, poultry product etc. I t will not be wrong to scale down a cold

storage of 5000 MT capacity to a home refrigerator of one cubic

metre @ 1:1470.

9.1.2 In Bihar, cold storages are mainly constructed for storing potato.

9.1.3 In Bihar, 5.19 per cent of Net Sown Area is for cultivation of potato

with an average annual growth of three to four percent in production.

The quantity of potato produced during 2001-02 was 39.94 lakh MT.

9.1.4 Out of 38 districts in Bihar, the total no.of 204 registered cold storages

are located in 26 districts with total installed capacity of 6.8 lakh MT.

9.1.5 The effective gap in the capacity has been worked out to 16.69 lakh

MT assuming 60 per cent of the stocks is preserved in the cold storage

and the rest 40 per cent is sold of the farm gate price or part of it is

kept for home consumption.

9.2 METHODOLOGY

9.2 .1 The study was conducted with an objective of assessing the actual

cost of investment, and to estimate the benefit accrued from the

investment. Besides, analysing the economics of the project, the

ex-post realisation was to be assessed with respect to ex-ante

estimations.

9.2.2 Five different cold storages, one each from different districts across

the State, were selected for the study. All five sample cold storages

had been financed under a scheme, viz.. Special Scheme of Bengal

and Bihar, under which eight cold storages had been refinanced by

NABARD during 1999-2000.

9.2.3 The reference year of the study is the calendar year 2001.

9.3. CHARACTERISTICS AND PROBLEMS OF SAMPLE COLD STORAGES

9 .3 .1 All sample cold storages were ideally located either on National

Highway or State Highway. Four of them were located within 15 km

from the town while one was located 30 kms f rom the district

{ 60 }

headquarters.

9.3.2 Shareholders / Partners belonged to same family and were well

qualified.

9.3.3 The family had already an established business with huge investment.

For example, one had five cinema halls and three brick kilns. Another

had an ownership of chewing tobacco industry of a famous brand in

the country having its corporate office at Delhi. One family.had the

background of tannery business with its corporate office at Calcutta.

These factors were in favour of a better debt equity ratio, established

reputation and good connection with banks and local administration.

9.3.4 By the reference year, four cold storages had two complete cycles of

operation while the fifth had three cycles.

9.3.5 The average capacity utilisation was in the range of 72.5 per cent to

85 per cent.

9.3.6 The averag.e unloading of the stock started during the month of August

with 9 per cent, followed by 20 per cent and rest 50 per cent during

the month of November-December.

9.3.7 None of the sample cold storages had gone for comprehensive policy

of insurance.

9.3.8 The BSEB had entered into the agreement with the cold storage for

a fixed unit of three lakhs in a year in 170 kV load. During the

season, 170 kV load is required just for one to two hours per day

while for the rest of the day 80 kV load is sufficient. Moreover, the

power supply had been erratic at an average rate of five to six hours

of supply per day. But for these facilities, the owners had to pay a

fixed amount to the BSEB. To overcome this problem, four of the

sample cold storages had installed stand by medium to heavy

generator sets. This added to both capital and operational cost.

9.3.9 One of the sample cold storages did not go for power from BSEB at

al l . Instead, it installed diesel engines directly connected to

compressors through fan belts fetching a better FRR.

9.4. IMPLEMENTATION OF THE SCHEME

9.4 .1 There had not been much deviation between actual cost of investment

and that envisaged by the financing bank and NABARD.

9.4.2 All five-sample cold storages had a good prospect of forward linkages.

As in all five districts, the effective gap or further potential was 100

{ 61 }

to 110 per cent of the existing capacity of storing potato.

9.4.3 All five-sample cold storages were found to be technically sound and

consistent with the project specifications.

9.5. COST OF INVESTMENT

9.5.1 A separate analysis for historical price and that of reference year's

price was not attempted for the gap between the two being one to

one and half years only. With the single digit inflation rate, that too

less than five per cent, the difference between these two sets of

prices would have been negligible.

9.5.2 The average capacity of all five-sample cold storages worked out to

4870 MT. The average project outlay was worked out at Rs. 145.60

lakh with the break up of Rs.2.90 lakh in land and site development,

Rs.69.80 lakh in civil work, Rs.60.20 lakh in plant & machinery and

Rs.12.70 lakh in other machinery and furniture & fixtures.

9.5.3 The bank loan ranged between 31 and 50 per cent of the total cost.

Hence, the effective margin worked out to more than 50 per cent in

all sample cases. There had not been much deviation in the effective

margin and the margin envisaged in the project.

9.6. ECONOMICS OF POTATO STORAGE

9.6.1 SITUATION A When the entire stock is sold from the farm at

Farm Gate price

9.6.1.2 The average cost of production of potato was worked out to Rs.35,

870 per Hectare in Samastipur to Rs.38, 315 per Hectare in

Muzaffarpur.

9.6.1.3 The farm gate prices as revealed by the sample farmers ranged

between Rs.165.00 per Quintal in saran and Rs.200.00 per Quintal

in Purnea District.

9.6.1.4 The average yield ranged between 210 Quintal per Hectare in Purnea

to 270 Quintal per Hectare in Saran district.

9.6.1.5 The net margin ranged between Rs. 1550.00 per Hectare in Vaishali

to Rs.4680.00 per Hectare in Purnea district.

9.6.1.6 In per rupee spent analyses the return ranged between Rs. 1.05 in

Samastipur and Vaishali to Rs.1.17 in Saran.

9.6.2 Price Analysis.

9.6.2.1 As per the record of the Price Officer in the District Krishi Bazaar

Samiti, the month-wise minimum and maximum prices of potato were

{ 62 }

recorded. It ranged between Rs.300.00 / quintal as minimum price in February - March and Rs.650.00 / quintal and Rs.700.00 / quintal, minimum and maximum respectively in November and December in Purnea district. Similarly, Rs.250.00 / Rs.240.00 / quintal and Rs.290.00 / Rs.280.00 / quintal as minimum and maximum price in the month of February-March respectively in Muzaffarpur district, which ranged between Rs.690.00 / quintal Rs.600.00 / quintal and Rs.740.00 / Rs.710.00 / quintal as minimum and maximum price respectively in the months of November / December.

9.6.2.2 For further analysis, the farm gate prices as revealed by the farmers and the minimum of Bazaar Samiti's price for the month of March had been compared. To identify a rational and indicative price for further analysis, the average of minimum and maximum prices including that of March had been assessed.

9.6.2.3 It was discovered that the member farmers were selling around 40 per cent of their stock at farm gate price and the rest 60 per cent was meant for cold storage. This 40 per cent proportion was governed by the factors like the stock for home consumption, time taken in finding the cold storages at acceptable rent, to get some quick revenue or the capacity to part with liquidity etc.

9.6.3 SITUATION B - When 60 percent of the stock is rented in cold storage and 40 per cent of stocl< is sold at Farm Gate price

9.6.3.1 Usually, withdrawal of the stock starts in the month of June / July until November-December. It ranged between 10 per cent in the month of June-July and 25 per cent in the month of September / October and 30 per cent in the month of November-December.

9.6.3.2 In the case of potatoes, the rent was fixed whether the withdrawal was made in June or December. Hence, the number of withdrawals and the amount of stocks withdrawal over a period of time from June to December did not affect the total rent.

9.6.3.3 The cost of storing potato per sample member farmer ranged between Rs.10425.00 in Purnea district and Rs.l9, 700.00 in Saran district.

9.6.3.4 The average revenue from the withdrawal of stock from cold storage minus cost in storage ranged between Rs.41,650.00 in Vaishali district and Rs.71,550.00 in Saran district per sample farmer.

9.6.3.5 The net average revenue per farmer, that is, revenue from stock directly sold from the farm plus revenue from stock withdrawal from

{ 63 }

cold storage minus cost in storage ranged between Rs.49,175.00 in

Samastipur and Rs.79,800.00 in Saran district.

9.6.3.6 The net benefit, imputed, per farmer is calculated by deducting the

net revenue from entire stock, if sold, in distress at Farm Gate price

from the farm from average net total revenue as estimated and shown

in para 9.6.3.5 above. I t ranged between Rs.47,945.00 per farmer

in Samastipur and Rs.75,210.00 in Saran district.

9.6.3.7 The above analysis was calculated on the basis of per farmer. But the

sample member farmers were having varying land holding and Net

Sown Area under potato. Hence, the same analysis is converted into

per quintal as below.

9.6.3.8 The net benefit per quintal ranged between Rs.545.00 in Vaishali

district and Rs.875.00 in Purnea district.

9.6.4 COMPARISON OF SITUATION A AND SITUATION B

9.6.4.1 The net return on per rupee spent by the member farmer in case of

situation A ranged between Rs.1.05 in Samastipur and Vaishali district

and Rs.1.17 in Saran district.

9.6.4.2 The net return on per rupee spent by the member farmer in case of

situation B, ranged between Rs.1.17 in Vaishali district and Rs.1.82

in Purnea district.

9.6.4.3 Thus, the net benefit to farmers increased between 12 to 65 per cent

point from storing potato in cold storage.

9.7. ECONOMICS OF SAMPLE COLD STORAGE

9.7 .1 The cash flow statement is prepared for 15 years with taking.50 per

cent and 20 per cent of civil structure and machinery as.salvage

value at the end of the XV year.

9.7.2 The gross annual income ranged between Rs.41.06 lakh in case of

Massina Cold Storage and Rs.67.50 lakh in the case of Pransukha

Cold Storage. While the net income ranged from Rs. 28.70 lakh to

Rs. 46.36 lakh.

9.7.3 The Net Present Value of cost at 15 per cent Discount Factor ranged

between Rs. 185.48 lakh in the case of Massina Cold Storage and

Rs.256.64 lakh in the case of Pransukha Cold Storage. While Net

Present Value of benefit at 15 per cent Discounting Factor ranged

from Rs. 200.39 Lakh in case of Masina C/S to Rs. 319 Lakh in case

of Pransukha C/S.

{ 64 }

9.7.4 The Net Present Worth at 15 per cent discount factor ranged between

Rs.0.61 lakh in the case of D.K.Cold Storage and Rs.63.31 lakh in

the case of Vaishali C/S.

9.7.5 The FRR ranged from 17.02 per cent in case of D.K.C/s to 26.12 per

cent in the case of Vaishali C/S.

9.7.6 The Vaishali C/S fetched the better FRR than others mainly because

of internal economies by operating entirely on diesel engine. Hence,

the unit did-not have to incur expenditure on electricity connections

from BSEB. In fact, the unit has set an example in the existing

situation of electricity / source of energy situation in Bihar.

9.7.7 In sensitivity analysis, it was discovered that the sample cold storages

were relatively more sensitive to the risk of having more cold storage

in the vicinity and the reluctant competition rather than increase in

cost.

9.7.8 The break even volume ranged between 39 per cent in the case of

Vaishali C/S to 65 per cent in the case of D.K. C/S.

9.8. REPAYMENT PERFORMANCE

9.8.1 All five-sample cold storages were financed by branches of State

Bank of India. Four of them were within the control of Muzaffarpur

Region - 1 , I I & I I I of the State Bank of India while the fifth belonged

to Purnea Regional Office of the SBI.

9.8.2 The health of the branches in terms of recovery percentage was

satisfactory as most of them were having recovery percentage of

more than 50 except the Agriculture Marketing Yard Branch of SBI in

Samastipur where the recovery percentage was of 44.17 as on 30

June 2001. For the remaining four branches, this ranged between

52.07 per cent (RCC Branch of Chhapra) and 60.55 per cent (Hajipur

branch).

9.8.3 The rate of interest charged varied from 12.5 per cent in case of

ADB, SBI, Muzaffarpur to 14.5 per cent in case of RCC, Chhapra.

9.8.4 Massina C/S account with AMY branch of Samastipur was classified

as NPA with outstanding amount of Rs.25.16 lakh.

{ 65 }

ANNEXURE- I

Optimum Storage condition for Horticulture Products

Commodity Temperature Relative Usual Duration

(°C) Humidity (%) of Storage

(Weeks)

ROOT & TUBER CROPS

Potato (Fresh) 0-2 95-98 35-40 Potato (Seed) 4-7 95-98 35-40 Potato (For 8-12 95-98 35-40 Processing) 5-8 80-90 2-4

Cassava 0-5 85-95 20-24 Sweet Potato 12-14 85-90 20-24 Yam 13-15 Near 100 20-24 Ginger 27-30 60-70 3-5

12-14 65-75 20-24

CURING OF ROOT & TUBER CROPS

Potato 15-20 85-90 1-2 Sweet Potato 30-32 85-90 1 Yam 32-40 90-100 1 Cassava 30-40 90-95 1 Garlic 30-45 60-75 1

VEGETABLES

Cauliflower 0-2 85-95 7 Peas 2-3

Asparagus 3-4

Beans 1-2 Cabbage 4-12 Carrot 0-2 90-95 20-24

Corn 1

Lettuce 1

Mushroom

Radish 3-5

Chillies (Green) 0-10 60-70 24 French Beans 2-7 90-95 1-2 Tamarind 32-48

{ 66 }

Commodity Temperature

(OC)

Relative

Humidity (%)

Usual Duration

of Storage

(Weeks)

VEGETABLES

Water melon 7-13 80-90 2 Musk melon

Bhendi

Tomato(Ripe) 7-13

85-90

85-90

85-90

1-2

2

1-2

Cucumber

Brinjal above 7-13 90-95

90-95

2

2-3 Tomato(Unripe) above 13 85-90 4-5

FRUIT CROPS

Apple

Peaches

Pears

Plums

Oranges

0-2 85-90

16-32

2-4

12-26

4-8

16-20

Pomegranate 2-7 80-85 4-6

Mandrin 2-7 85-90 16-20 Papaya

Passion Fruit

7-13 80-85 1-2

4-5 Guava

Lemon & Lime

Pineapple

7-13 85-90 3

16-20

4-6

Banana(Green)

Banana(Ripe)

Plantains

above 13 80-85 1-2

3

1-2 Grapefruit

Mango

above 13 85-90 16-20

4-7 .

FLOWER CROPS

Carnation

Chrysanthemum

0-1 90-95 4-12

3-4

Rose 0.5-3 90-95- 1-2

Gladiolous 1-4 90-95 3-4

Gerhera 4 90-95 3-4

Anthurium 13 90-95 3-4

( 67 }

00

ANNEXURE I I

NUMBER OF COLD STORAGE UNITS & THEIR CAPACITY - BIHAR (DURING 2000-01)

S . N . N a m e of t h e d i s t r i c t No . of cold s t o r a g e C a p a c i t y ( M T ) N a t u r e of co ld s t o r a g e S . N . N a m e of t h e d i s t r i c t No . of cold s t o r a g e C a p a c i t y ( M T )

P r i v a t e C o - o p M u l t i p u r p o s e P o t a t o

1 Araria 3 7700 2 1 3

2 Aurangabad 1 1400 1 1

3 Begusarai 11 61700 10 1 11 4 Bhabua 1 5000 1 1

5 Bhagalfjtir 5 14100 4 1 5 6 Bhojpur 1 14100 0 1 1

7 Buxar 3 7950 3 3

8 Darbhanga 1 700 1 1

9 East Champaran 11 42250 10 1 1 10

10 Gaya 16 46053 16 6 10

11 Gopalganj 10 29400 10 1 9 12 Jahanabad 3 7500 2 1 3

13 Katihar 2 5200 2 2

14 Khagaria 1 6500 1 1

15 Lakhisarai 1 2200 1 1

16 Madhubani 1 4000 0 1 1

17 Muzaffarpur 7 31450 7 2 5

18 Nalanda 27 69600 26 1 1 26

19 Nawadah 4 6400 4 4

20 Patna 27 79700 25 2 10 17 21 • Purnea 4 14250 4 4

22 Rohtas 5 12650 4 1 5 23 Sharsa 1 4000 1 1

24 Samastipur 7 40400 7 7

25 Saran 16 56750 16 16 26 Seikhpura 1 4000 0 1 1 27 Sitamarhi 2 6700 1 - 1 2 28 Siwan 8 16450 8 8 29 Vaishali 16 48050 14 2 2 . 14 30 West Champaran 8 32012 6 2 2 6

Total 204 678165 187 17 25 179

Source : 1. Department of Marketing and Inspection, Faridabad 2. Cold Storage Owners' Association 3. State Directorate of Horticulture 4. IMABARD - Subsidy Scheme

ANNEXURE I I I (a)

YEAR-WISE NUMBER OF COLD STORAGES AND THEIR CAPACITY IN INDIA

Year Numbers Capacity (MT) Average capacity (MT/unit)

1964 359 305,513 851 1965 600 682,100 1,137

1966 706 266,470 377 . 1967 797 1,115,375 1,399

1968 929 1,260,346 1,357

1.969 1,091 1,551,256 1,422

1970 1,218 1,638,331 1,345

1971 1,318 1,693,980 1,285

1972 1,403 1,764,332 1,258

1973 1,503 1,869,974 1,244

1974 1,576 1,939,524 1,231

1975 1,615 1,993,992 1,235

1976 1,747 2,126,935 1,217

1977 1,971 2,620,699 1,330

1978 2,072 3,061,355 1,477

1979 2,300 3,525,608 1,533

1980 2,283 3,964,525 1,737

1981 2,370 4,374,785 , 1,846

1982 2,457 4,627,624 1,883

1983 2,495 4,818,336 1,931

1984 2,488 5,022,568 2,019

19.85 2,522 5,099,115 2,022

1986 2,607 5,402,160 2,072

1987 2,659 5,578,442 2,098

1988 2,749 6,142,014 2,234

1959 2,797 6,793,377 2,429

1990 2,942 7,727,849 2,627

1991 2,970 7,787,599 2,622

1992 2,973 7,790,000 2,620

1993 2,053 8,090,000 2,650

1994 3,124 8,170,000 2,6l5

1995 3,167 8,580,000 2,709

1996 3,253 8,730,000 2,684

1997 3,443 10,353,090 3,007

1998 3,502 10,739,030 3,067

1999 3,597 11,328,900 3,150

2000 3,886 13,621,981 3,505

2001 4,146 14,952,000 3,606

{69}

o

ANNEXURE I I I (b )

SECTOR WISE DISTRIBUTION OF COLD STORAGES AS ON 3 1 . 1 2 . 2 0 0 1

S.no Sta te /UT Private Sector Cooperative Public Sector Total ( 3 + 4 + 5 ) Average

capacity ( M T / u n i t )

Share ( % )

Number Capacity Number Capacity Number Capacity Number Capacity

1 Andaman & Nichobar Islands (UT)

1 170 0 0 1 40 2 210 105 0.00

2 Andhra Pradesh 179 446,601 13 9,270 8 1,190 • 200 457,061 2,285 3.06 • 3 Arunachal Pradesh 4 Assam 3 9,000 0 0 10 4,420 13 13,420 1,032 0.09 5 Bihar 186 605,865 17 63,300 0 0 203 669,165 3,296 4.48 6 Chandigarh (UT) c n , 2 1 6 0 0 0 0 5 11,216 2,243. 0.08 7 Delhi 75 98,845 1 2,701 16 17,681 92 119,227 1,296 0.80 8 Gujarat 303 691,143 15 0 8 8,184 327 716,199 2,190 4.79 9 Goa 21 1,960 0 9,270 2 281 23 2,241 97 0.01 10 Haryana * 192 262,424 9 0 0 201 276,245 1,374 1.85 11 Himachal Pradesh 8 11,413 2 0 7 6,195 17 18,375 1,081 0.12 12 Jammu & Kashmir 14 38,617 3 63,300 1 46 18 40,797 2,267 0.27 13 Jharkhand 11 29,750 8 0 1 2,250 20 57,000 2,850 0.38 14 Kerala 145 28,295 6 2,701 12 1,880 163 31,255 192 0.21 15 Karnataka 71 67,267 13 16,872 13 3,244 102 77,200 757 0.52 16 Lakshadweep (UT) 0 17 Maharashtra 303 330,752 53 13,821 29 7,851 385 358,442 931 2.40 18 Madhya Pradesh 159 668,364 21 767 6 3,760 186 751,288 4,039 5.03 19 Manipur 2,134

20 IMeghalaya 25,000

21 Mizoram 1,080

22 Nagaland 6,689

23 Orissa 60 151,150 9 6 4,190 75 166,905 . 2,225 1.12

24 Pondicherry (UT) 2 115 1 19,839 2 35 5 200 40 0.00 25 Punjab * * 379 1,016,000 8 80,164 3 14,440 390 1,049,264 2,690 7.02 26 Rajasthan 77 243,854 9 3,832 1 14 87 247,700 2,847 1.65 27 Sikkim 28 Tamilnadu 91 91,010 13 9,284 7 4,587 111 104,881 945 0.70 29 Tripura 1 . 2,750 2 7,000 1 1,000 4 10,750 2,688 0.07 30 Uttar Pradesh * * 1,046 5,464,000 80 238,000 3 8,000 1,129 5,710,000 5,058 38.19 31 West Bengal 335 3,787,754 51 273,677 0 0 386 4,061,431 10,522 27.17

TOTAL 3,667 14 ,058 ,315 340 803 ,869 137 88 ,288 4 ,144 i 4 , 9 5 0 , 4 7 : 3 ,608 100.00

ANNEXURE- I V A

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/S D.K. ICE AND COLD STORAGE PVT. LTD. MUZAFFARPUR

EX-POST TOTAL COST

SI Investment items/components Actual

A Site Development 1500000

B Civil Structure 7000000

C Plant and machinary 7050000

E Pre operative expense 8000000 E

Total Project Cost 16350000

E

Beneficiary contribution- 8950000

E

Bank loan 7400000

ANNEXURE- I V B

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s ICE COLD STORAGE Pvt. LTD. MUZAFFARPUR

EX-POST INCOME AND EXPENDITURE STATEMENT

(Rs. in lakhs)

SI. Particulars YEARS

A. Income 1 2 3 4 5 6 7 8 9 10

onwards

1 Installed capacity (MT) 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00

2 Annual capacity utilization (MT) NIL 70% 80% 90% 90% 90% 90% 90% 90% 90%

3 Quantity of potato stored (MT) NIL 3500.00 4000.00 4500.00 4500.00 4500.00 4500.00 4500.00 ^500.00 4500.00

4 Income through rent on storage (Rs. 1000/MT) NIL 35.00 40.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00

5 Income through sale of ice slabs NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL

6. Total income NIL 35.00 40.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00

B Expenditure

1 Power, fuel, refrigerant and other chemicals NIL 9.63 11.01 12.38 12.38 12.38 12.38 12.38 12.38 12.38

2 Salary and wages -

NIL 1.80 2.06 2.32 2.32 2.32 2.32 2.32 2.32 2.32

3 Repair and maintenance NIL 0.30 0.34 0.39 0.39 0.39 0.39 0.39 0.39 0.39

4 Insurance NIL 0.81 0.93 1.04 1.04 1.04 1.04 1.04 1.04 1.04

5 Total expenditure NIL 12.54' 14.34 16.13 16.13 16.13 16.13' 16.13 16.13 16.13

C Operating profit NIL 22.46 25.66 28.37 28.37 28.37 28.37 28.37 28.37 28.37

ANNEXURE- IV C

00

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/S D.K. ICE AND COLD STORAGE Pvt. Ltd. MUZAFFARPUR EX-POST CSASH FLOW STATEMENT

(Rs. in lakhs)

SI Particulars YEARS

1 2 3 4 5 S 7 8 9 10

onwards

1 Gross operating profit NIL 22.46 25.66 28.87 28.87 28.87 28.87 28.87 28.87 28.87

2 Interest on term loan NIL 9.25 9.25 9.25 6.94 4.63 2.31

3 Depreciation NIL 10.55 10.55 10.55 10.55 10.55 10.55 10.55 10.55 10.55

4 Profit before tax NIL 2.66 5.86 9.07 11.38 13.69 16.01 18.32 18.32 18.32

5 Income tax (35%) NIL 0.80 0.00 3.17 3.98 4.79 5.60 6.41 6.41 6.41

6 Profit after tax NIL 1.86 5.86 5.90 7.40 8.90 10.41 11.91 11.91 11.91

7 Cash accurals NIL 21.66 25.66 25.70 24.89 24.08 23.27 22.46 22.46 22.46

8 Term loan outstanding at the beginning of the year NIL 74.00 74.00 55.50 37.00 18.50 0.00 0.00 0.00 0.00

9 Repayment of interest on term loan NIL 16.41 10.94 9.38 7.82 6.25 0.00 0.00 0.00 0.00

10 Repayment of term loan NIL Nil 18.50 18.50 18.50 18.50 0.00 0.00 0.00

11 Total repayment NIL 61.41 29.44 27.88 26.32 24.75 0.00 0.00 0.00 0.00

12 Term loan outstanding at the end of the year 74.00 74.00 55.50 37.00 18.50 0.00 0.00 0.00 0.00 0.00

13 DSCR ' NIL 1.32 0.87 0.92 0.95 0.97 ' —

14 Average DSCR 1.01

ANNEXURE- I V D

M/s D. K. ICE and Cold storage Pvt. Ltd. Muzaffarpur

EX-POST FINANCIAL INDICATORS

Rs. in lakha

SI Particulars Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Capital Cost 163.5

-NI

2 Recurring Cost NIL 12.54 14.34 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13

-C 3 Total Cost 163.50 12.54 14.34 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13 16.13

4 Income NIL 35.00 40.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45,00 45.00 94,10

4 Net Income NIL 22.46 25.66 28.87 28.87 28.87 28.87 28.87 28.87 28.87 28.87 28.87 28.87 28.87 77.97

5 PW of cost at 15% DF 218.57333

6 PWVof benefit at 15% DF 219.18632

7 NPW 0.6129882

8 ecR 1.00

IRR 17.02% __

ANNEXURE- I V E

M/SD.K. ICE AND COLD STORAGE Ltd. MUZAFFARPUR

EX-POST BREAK EVEN ANALYSIS

Rs. Lakh

SI Particulars At 8 0 % capacity utilisation

1 Sales 40

2 Fixed cost 18.75

3 Variable cost 11.01

3 Contribution 28.99

4 BEP sales volume in MT 2600 MT

5 BEP ( % ) 65%

ANNEXURE- V A

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s VISHWANATH COLD STORAGE PVT. LTD.

EX-POST TOTAL PROJECT COST

SI Investment i tems/components Actual

A SITE DEVELOPMENT 350000

B CIVIL STRUCTURE 6900000

C PLANT AND MACHINARY 4000000

E PRELIMINARY & PRE-OPER 1000000

TOTAL PROJECT COST

Beneficiary Contribution (inc.)

Bank loan

12250000

5250000

7000000

ANNEXURE- V 6

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s VISHWANATH COLD STORAGE Pvt. Ltd.


•vl

(Rs. In lakhs)

SI •Particulars •YEARS

A. Income 1 2 3 4 5 6 7 8 9 10

onwards

1 Installed capacity (MT) 4700 4700 4700 4700 4700 4700 4700 4700 4700 4700


3 •Quantity of potato stored (MT) NIL 3290 3760 4230 4230 4230 4230 4230 4230 4230

4 Income through rent on storage (Rs. 125/Qt) NIL 41.13 47.00 52.88 52.88 52.88 52.88 52.88 52.88 52.88

5 Total income NIL 41.13 47.00 52.88 52.88 52.88 52.88 52.88 52.88 52.88

B Expenditure

1 Electricity, Gas. fuel, lubricants and Utilities NIL 7.50 8.57 9.64 9.64 9.64 9.64 9.64 9.64 9.64

2 Establishment & Office Expenses NIL 1.50 1.71 1.93 1.93 1.93 1.93 1.93 1.93 1.93


4 Labour Charges NIL 2.70 3.09 3.47 3.47 3.47 3.47 3.47 3.47 3.47

5 Insurance NIL 0.70 0.80 0.90 0.90 0.90 0.90 0.90 0.90 0.90

6 Total expenditure NIL 14.10 16.11 18.13 18.13 18.13 18.13 18.13 18.13 18.13


ANNEXURE - V C


EX-POST CASH FLOW STATEMENT

- s i CO

(Rs. in lakhs)


1 2 3 4 5 6 7 8 9 10

onwards

1 Gross operating pofit NIL 27.03 30.89 34.75 34.75 34.75 34.75 34,75 34.75 34.75

2 Interest on term loan NIL 10.53 10.53 9.02 7.52 . 6.02 4.51 3.01 1.50 0.00


4 Profit before tax NIL 9.05 12.91 18.28 19.78 21.29 22,79 24,29 25.80 27.30

5 Income tax (35%) NIL 3.17 4.52 6.40 6.92 7.45 7.98 8.50 9,03 9.56

6 Profit after Tax NIL 5.88 8.39 11.88 12.86 1.84 14.81 15.79 16,77 17.75

7 Cash accurals NIL 23.86 26.37 28.35 27.83 27,30 27.78 26.25 25,72 25.20

8 Term loan outstanding at the beginning of the year NIL 70.00 74.00 52.50 35.00 17.50 0.00 0.00 0,00 0.00

9 Repayment of interest of term loan NIL 10.15 10.15 7.61 5.08 2.58 0.00 0.00 0,00 0.00

10 Repayment of term loan NIL 0.00 17.50 17.50 17.50 17.50 0.00 0.00 0.00 0

11 Total repayment NIL 10.15 27.65 25.11 22.58 20.08 0.00 0,00 0.00 0.00

12 Term loan outstanding at the end of year 70.00 52.50 35.00 17.50 0.00 0.00 0.00 0,00 0.00 0,00

13 DSCR NIL 2.35 0.95 1.13 1.23 1.36 —

14 Average DSCR

ANNEXURE - V D



Rs. in lakha

CD

SI Particulars Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Capital Cost 122.5


3 Total Cost 122.50 14.10 16.11 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13 18.13

4 Income NIL 41.13 47.00 52.88 52.88 52.88 52.88 52.88 52.88 52.88 52.88 52.88 52.88 52.88 95.38

4 Net Income -122.50 27.03 30.89 34.75 34.75 34.75 34.75 34.75 34.75 34.75 34.75 34.75 34.75 34.75 77.25

5 NPV of cost at 15% DF 192.39

6 NPV of benefit at 15% DF 255.70

8 NPW 63.31

9 BCR at 15% DF 1.33

IRR 25.78%

ANNEXURE - V E

EX-POST BREAK EVEN ANALYSIS OF A COLD STORAGE PROJECT

M/s VISHWANATH COLD STORAGE Pvt. Ltd

Rs. Lakh

00

o

SI Particulars At stabilised (90%) capacity utilisation

1 Sales 47.00

2 Fixed cost 6.74



4 BEP sales volumein MT 1466

5 BEP ( % ) 39

ANNEXURE- V I A

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s VAISHALI SHEETH BHANDAR PVT. LTD..1


00

SI Investment i tems/components Actual

A SITE DEVELOPMENT 300000


C PLANT AND MACHINARY 3500000

E OTHER MACHINERY AND EQUIPMENTS 1300000

F OTHER 500000

TOTAL PROJECT COST

Beneficiary Contribution (inc. Unsecured to)

Bank loan

11600000

6600000'

5000000

ANNEXURE- V I B

00 IV)

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s VAISHALI SHEETH BHANDAR Pvt. Ltd.


(Rs. in lakhs)


A. Income 1 2 3 4 5 6 7 8 9 10

onwards

1 Installed capacity (I^IT) 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000


3 Quantity of potato stored (MT) NIL 3500 4000 4500 4500 4500 4500 4500 4500 4500

4 Income through rent on storage (Rs. 125/Qt.) NIL 43.75 50 56.25 56.25 56.25 56.25 56.25 56.25 56.25

5 Total income NIL 43.75 50 56.25 56.25 56.25 56.25 56.25 56.25 56.25

B Expenditure

1 Power, fuel refrigerant and other chemicals NIL 9.30 10.63 11.96 11.96 11.96 11.96 11.96 11.96 11.96

2 Salary and wages NIL 3.00 3.43 3.86 3.86 3.86 3.86 3.86 3.86 3.86


4 Interest on working capital NIL 3.20 3.66 4,11 4.11 4.11 4.11 4.11 4.11 4.11

5 Insurance NIL 0.80 0.91 1.03 1.03 1.03 1.03 1.03 1.03 1.03

6 Total expenditure NIL 17.80 20.34 22.89 22.89 22.89 22.89 22.89 22.89 22.89


ANNEXURE-VIC

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s VISHWANATH COLD STORAGE PVT. LTD. EX-POST CASH FLOW STATEMENT

00 CO

(Rs. in lakhs)

SI . . .

Particulars YEARS

1 2 3 4 5 6 7 8 9 10

onwards

1 Gross operating pofit NIL 25.95 29.66 33.36 33.36 33.36 33.36 33.36 33.36 33.36

2 Interest on term loan NIL 7.27 6.68 5.52 4.36 2.91 1.45 0.00 0.00 0.00


4 Profit before tax NIL 12.19 16.47 21.34 22.51 23.96 25.41 26.86 26.86 26,86

5 Income tax (35%) NIL 4.26 5.77 7.47 7.88 8.39 8.89 9.40 9.40 9.40


7 Cash accurals NIL 21.59 23.89 25.89 25.49 24.98 24.47 23.96 23,96 23,96

8 Term loan outstanding at the beginning of the year NIL 50.00 74.00 37.50 25.00 12.50 0.00 0,00 0,00 0.00

9 Repayment of interest of term loan NIL 7.00 7.00 5.25 3.50 1.75 0.00 0.00 0.00 0,00

10 Repayment of term loan NIL NIL 12.50 12.50 12.50 12.50 0,00 0.00 0,00 0,00

11 Totalrepayment NIL 7.00 19.50 17.75 16.00 14.25 0.00 0.00 0,00 0,00

IZ. Term loan outstanding at the end of year 50.00 50.00 37.50 25.00 12.50 0.00 0.00 0.00 0.00 0.00

13 DSCR NIL 3.10 1.23 1.46 1,59 1.75 0.00 - • - -


ANNEXURE- V I D

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s VAISHALI SHEETH BHANDAR PVT. LTD.


Rs. in lakha

00

SI Particulars Year

1 2 , 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Capital Cost 166


3 Total Cost 166.00 17.80 20.34 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89 22.89

4 Income NIL 43.75 50.00 56.25 56.25 56,25 56.25 56.25 56.25 56.25 56.25 56.25 56.25 56.25 93.25

4 Net Income -166.00 25.95 29.66 33.36 33.36 33.36 33.36 33.36 33.36 33.36 33.36 33.36 33.36 33.36 70.36

5 PW of cost at 15% DF 209.27

6 PW of benefit at 15% DF 270.99

8 NPW 61.71

9 BCRat 15% DF 1.29

IRR 26.12%

ANNEXURE- V I E


M/s VAISHALI SHEETH BHANDAR Pvt. Ltd

Rs. Lakh

00


1 Sales 50.00

2 Fixed cost 6.06



4 BEP sales volume in MT 1800

5 . B E P ( % ) 45

ANNEXURE - V I I A

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY MASSINA. COLD STORRAGE PVT. LTD. SAMA

EX-POST RECOMMENDED TOTAL PROJECT COST

00

SI Investment i tems/components Actual (Rs)

A SITE DEVELOPI^IENT 300000


C PLANT AND JVIACHINARY 6500000

E PRE OPERATIVE EXPENSES 800000

TOTAL PROJECT COST 14600000

•

Beneficiary Contribution (inc. unsecured loan)

Bank loan

10000000

4600000

ANNEXURE - V I I B

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY MASINA. COLD STORAGE Pvt. Ltd. SAMASTIPUR


(Rs. in lakhs)

00


A. Income 1 2 3 4 5 6 7 8 9 10

onwards

1 Installed capacity (MT) 3650 3650 3650 3650 3650 3650 3650 3650 3650 3650

2 Annual capacity utilization (MT) NIL 70% 80% 90% , 90% 90% 90% 90% 90% 90%


4 Income through rent on storage (Rs. 1250/MT) NIL 31.94 36.6 41.06 41.06 41.06 41.06 41.06 41.06 41.06

5 Total income NIL 31.94 36.50 41.06 41.06 41.06 41.06 41.06 41.06 41.06

B Expenditure

1 Power, fuel, refrigerant and other chemicals NIL 7.50 8.57 9.64 9.64 9.64 9.64 9.64 9.64 9.64



4 Insurance NIL 0.51 0.58 0.66 0.66 0.66 0.66 0.66 0.66 0.66

5 Total expenditure NIL 9.61 10.98 12.36 12.36 12.36 12.36 12.36 12.36 , 12.36

G Operating profit NIL 22.33 25.52 28.70 28.70 28.70 28.70 28.70 28.70 28.70

ANNEXURE - V I I C

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY MASINA COLD STORAGE Pvt. Ltd. SAMASTIPUR EX-POST CASH FLOW STATEMENT

00 00

(Rs. in lakhs)


1 2 3 4 5 6 7 8 9 10

onwards





5 Income tax (35%) NIL 3.07 2.94 4.41 4.77 5.13 5.48 5.84, 6.19 6.55


7 Cash accurals NIL 19.26 22.57 24.29 23.94 23.58 23.23 22.87 22.51 22.16

8 Term loan outstanding at the beginning of the year NIL 45.00 45.00 34.75 23.50 12.25 1.00

9 Repayment of interest of term loan NIL 6.30 6.30 4.73 3.15 4.06 1.58 2.03 1.02 0.00

10 Repayment of term loan NIL Nill 11.25 11.25 11.25 11.25 0.00 0.00 0.00 0


12 Term loan outstanding at the end of year 46.00 46.00 34.75 23.50 12.25 1.00 1.00 1.00 1.00 1.00

13 DSCR NIL 2.50 • 1.09 1.30 1.42 1.31 12.48 9.54 18.64 -


ANNEXURE - V I I D

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY MASINA COLD STORAGE Pvt. Ltd. SAMASTIPUR


Rs. in lakha

00 CO

SI Particulars Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Capital Cost 146


3 Total Cost 146.00 9.61 10.98 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36 12.36

4 Income NIL 31.94 36.50 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06 41.06

4 Net Income -146.00 22.33 25.52 •

28.70 •

28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70 28.70


6 NPV of benefit at 15% DF 194.49

8 NPW 9.01

9 BCR at 15% DF 1.05

IRR 16.45%

ANNEXURE - V I I E


MASINA. COLD STORAGE Pvt. Ltd. SAMASTIPUR

Rs. Lakh

CD O


1 Sales 36.50

2 Fixed cost 1.83



4 BEP sales volume in MT 17.23

5 BEP ( .%) 59

ANNEXURE - V I I I A

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s PRANSUKHA COLD STORAGE Pvt. Ltd. PURNEA


CO

SI investment I tems/components Actual (Rs)

A SITE DEVELOPI^ENT 0


C PI_ANT AND MACHINARY 8700000

E PRE OPERATIVE EXPENSES 900000

F ELECTRICALS 400000

TOTAL PROJECT COST 18000000

Beneficiary Contribution (inc. unsecured loan) 9000000

Banl< loan 9000000

ANNEXURE - V I I I B

CO IV)



(Rs. in lakhs)


A. Inconne 1 2 3 4 5 6 7 8 9 10

onwards

1 Installed capacity (I^T) 6000 6000 6000 6000 6000 6000 6000 6000 6000 6000



4 Income through rent on storage (Rs. 1250/MT) NIL 52.5 60 67.5 67.5 67.5 67.5 67.5 67.5 67.5

5 Total income NIL 31.94 36.50 41.06 41.06 41.06 41.06 41.06 41.06 41.06

B Expenditure

1 • Power, fuel, refrigerant and other chemicals NIL 11.00 12.57 14.14 14.14' 14.14 14.14 14.14 14.14 14.14 •



4 Insurance NIL 0.84 0.96 1.08 1.08 1.08 1.08 1.08 1.08 1.08

5 Total expenditure NIL 16.44 18.79 21.14 • 21.14 21.14 21.14 21.14 21.14 •21.14

C Operating profit , NIL 36.06 41.21 46.36 46.36 46.36 46.36 46.36 46.36 46.36

ANNEXURE - V I I I C

PROJECT FOR ESTABLISHMENT OF A COLD STORAGE BY M/s PRANSUKHA COLD STORAGE Pvt. Ltd. PURNEA EX-POST CASH FLOW STATEMENT

CD CO

(Rs. in lakhs)


1 2 3 4 5 6 7 8 9 10

onwards





5 Income tax (35%) NIL 10.86 9.88 13.23 14.47 15.71 16.94 18.18 19.41 20.65

6 Profit after Tax NIL 30.22 35.89 39.24 38.57 37.91 37.24 36.58 35.91 35.25

7 Cash accurals NIL 90.00 74.00 67.50 45.00 22,50 0.00 0.00 0.00 0.00

8 Term loan outstanding at the beginning of the year NIL 12.60 9.45 6.30 3.15 7.60 0.00 0.00 0.00 . 0.00

9 Repayment of interest of term loan NIL 12.60 9.45 6.30 3.15 7.60 0.00 0.00 0.00 0.00

10 Repayment of term loan NIL Nill 22.50 22.50 22.50 22.50 0.00 0.00 0.00 0


12 Term loan outstanding at the end of year 90.00 90.00 67.50 45.00 22.50 0.00 0.00 0.00 0.00 0.00

13 DSCR NIL 2.40 1.12 1.36 1.50 1.26 —


ANNEXURE - V I I I D



Rs. in lakha

CO

SI Particulars Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Capital Cost 180

2 Recurring Cost 16.44 18.79 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14

3 Total Cost 180.00 16.44 18.79 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14 21.14

4 Income NIL 52.50 60.00 67.50 67.50 67.50 67.50 67.50 67.50 67.50 67.50 67.50 67.50 67.50 124.90

4 Net Income -180.00 36.06 41.24 46.36 46.36 46.36 46.36 46.36 46.36 46.36 46.36 46.36 46.36 46.36 103.76


6 NW of benefit at 15% DF 326.78

7 NPW 70.14

8 BCR 1.27

IRR 23.26%

ANNEXURE - V I I I E


M/s PRANSUKHA COLD STORAGE Pvt. Ltd. PURNEA

Rs. Lakh

CD CJl

SI Particulars At 80<Vb capacity

1 Sales 60

2 Fixed cost 5.26



4 BEP sales volume in MT 2350

5 BEP ( %) 49

ANNEXURE I X

SANCTIONED SCHEMES (REFINANCE) UNDER SPECIAL SCHEME OF WEST BENGAL & BIHAR

CD

Code No Name of the Cold Storage

Constitution (Proprietor, partnership

etc.)

Description of the commodity

to be stored

Types of Unit Technology (Convention al/CA/MA)

Number of chamber

Types of Unit (New/ Expansion/

Onion Godown)

Address

1 2 3 4 5 6 7 8

PAT-2 M/s Vishwanath Cold Storage

PVT. LTD. Potato Vegetables, Fruits

CT 1 New M/s Vishwanath Cold Storage, Tekniwas,

Siwan Road, Chapra

PAT-3 M/s Vaishali Sheath Bhandar

PVT LTD. Potato Vegetables, Fruits

CT 2 New M/s Vaishali Sheath Bhandar, Mahua, Vaishali

PAT-4 M/s Himananga Cold Storage


CT 2 New M/s Himananga Cold Storage, Ramzanpur,

Begusarai

PAT-5 M/s Rakesh Mukesh Cold Storage and Ice Plant

PVT LTD. Fruits

Potato Vegetables, CT 2 New M/s Rakesh Mukesh Cold Storage and Ice Plant,

Ulao, Begusarai

PAT-6 M/s DK Ice and Cold Storage


CT 2 New M/s DK Ice and Cold Storage, Turki, Muzaffarpur

PAT-7 M/s Massina Cold PVT LTD. Storage

Potato Vegetables, CT Fruits

1 New M/s Massina Cold Storage, Mukhtapur, Samastipur

PAT-9 M/s JD Cold Storage PVT LTD. Potato Vegetables, Fruits

CT

PAT-10 M/s Pransuckha Cold Storage

PVT. LTD. Potato Vegetables, Fruits

CT 2 • New M/s Pransuchka Cold Storage, City Road, Gulab Bagh, Purnea

CO

District Financing

Banl<

Branch Date of Receipt of Proposal

Date of Sanctioned

of Refinance

Capacity

(MT)

TO sanction Bank Loan contribution

Promoters subsidy

Eligible

subsidy Refinance

Sanctioned

9 10 11 12 13 14 15 16 17 18 19

Chapra, Bihar

SB! SBI, ZO, Muzaffarpur

18.01.200 27.06.2000 4700 131.178 70 63.951 32.79 63

Vaishali, Bihar

SBI SBI, Hazipur

23.05.2000 27.07.2000 4000 115.478 50 65.478 28.87 45

Begusari, Bihar

SB! SBI, ADB, Begusarai

18.07.2000 28.08.2000 6000 170.326 94.6 69.992 42.58 85.46

Begusarai, Bihar

SBI ADB, Begusarai

14.07.2000 28.08.2000 6000 187.17 76.71 110.46 46.79 69.04

Muzaffarpur, Bihar

SBI SBI, ADB, Muzaffarpur

17.07.2000 27.02.2001 5000 148.41 74 74.41 — 66.6

Samastipur, Bihar

SBI SBI, AMY, Mathuranapur,

Samastipur

17.07.2000 • 27.02.2001 4000 133.9 45 88.9 40.5

Vaishali, Bihar

SBI 28.08.2000 — 4000 125.28 45 80.28 — 0

Purnea,

Bihar

SBI SBI, Gulabbagh,

Purnea

21.12.2000 31.01.2001 60000 180 90 90 81

CO CX5

Refinance

disbursed

Status of refinance/capital subsidy sanction, disbursement

20 21

50.076 Refinance sanctioned and disbursed. No specific proposal for subsidy received from the bank.

41.163 Refinance sanctioned and disbursed. No specific proposal for subsidy received from the bank

85.464 Refinance disbursed. Proposal for capital subsidy received. The financing bank has withdrawn

the proposal on 15.01.2002 69.039 Refinance disbursed. Proposal for capital subsidy received.

The financing bank has withdrawn the proposal on 15.01.2002

60.444 Refinance sanctioned and disbursed. Proposal for capital subsidy received on 14.02.2001. In

the meeting of RO Committee on cold storage on 7.07.2001, the unit was not considered

eligible for capital subsidy, based on its date of commissioning (30.03.2000) As advised by the

financing bank.

40.5 Refinance disbursed. The unit is not eligible for subsidy as the bank has advised that the unit

was commissioned during April 2000.

Project withdrawn by the financing bank.

81 Refinance disbursed. The unit is not eligible for subsidy as the bank has advised that the unit

was commissioned on 25,03.2000

Ex-Post Evaluation Study Reports Published by Head Ofice

SI. No.

Tittle of Evaluation Report Year of Publication

1. *Minor Irrigation Scheme-Construction of New Wells and Installation of Pumpsets Thereon in Shoiapur District, Maharashtra

1977

2. * Minor tubewells in Karnal District, Haryana 1977

3. * Bhadra land Development Project-Scheme for Reclamation and Development of Land, Karnataka

. 1977

4. * Land Development under Nagarjuna Sagar Project, Miryalguda Taluka, Andhra Pradesh

1978

6. * Dairy Development Schme in jaadhri Block of Ambala district, Haryana

1978

7. * Dairy Development Scheme in Moga Area of Faridkot-District, Punjab

1978

8. * Poultry Development Scheme in Mulkanoor, Karimnagar District, Andhra Pradesh

1979

9. * Mechanised Fishing Boats in South Kanara District, Karnataka 1979

10. * Development of Acid Lime Gardens in Nellore District, Andhra Pradesh

1981

11. * Groundwater irrigation in Kota District, Rajasthan 1982

12. * Minor Irrigation in Bhojpur District, Bihar 1982

13. Development of Grape Cultivation in Bijapur District, Karnataka 1982

14. River Lift Irrigation Schemes in Pune District, Maharashtra 1982

15. Dairy Development Schemes in Westen Uttar Pradesh 1982

16. * River Lift Irrigation Schemes in Kolhapur District, Maharashtra 1982

17. * Sheep Rearing in Nalgonda District, Andhra Pradesh 1982

18. Development gf Coffee Plantation in Lower Plain Area Madurai District, Tamil Nadu

1983

19. * Public Tubewells and River Lifts in Orrisa 1984

20. * Power Tillers in Hooghly District, West Bengal 1985

21.- Commercial Poultry in Krishna District, Andhra Pradesh 1986

22. Dugwell Irrigation in Palghat District, Kerala 1986

23. Tractors in North Bihar 1986

24. Dairy Development Schemesin Darjeeling District, West Bengal 1987

25. Tractor SchemesinVaranasi, Ghazipur and Jaunpur Districts of Eastern Uttar Pradesh

1987

26. Tractors and Power Tillers in Tamil Nadu 1987

27. Minor Irrigation in Muzaffarnagar District, Uttar Pradesh 1987

28. Dairy Development in Quilon District, Kerala 1987

29. Dugwell Irrigation in Dhenkanal District, Orrisa 1988

30. Bamboo and Shallow Tubewells in Purnia District, Bihar 1988

31. Dugwell Irrigation in Nasik District, Maharashtra 1988

32. Calf Rearing in North Arcot, Salem and Coimbatore District, Tamil Nadu

1988

{99 }

33; Minor Irrigation in Allahabad District, Uttar Pradesh 1988 34. Coconut Development in Quilon District, Kerala 1988 35. Minor Irrigation in Purulia District, West Bengal 1988 36.

38.

40.

42.

Sprinkler Irrigation in Semi-arid Areas of Rajasthan 1989 37. Dugwell Irrigation for Small Farmers in Amravati District,

Maharshtra 1989

Marine Fisheries in Coastal Gujrat and Maharashtra 1989 39. Financing of Shallow Tubewells under Massive National

Programme in Haryana 1990

financing of Apple Orchards in Hill Districts, Uttar Pradesh 1991

4 1 . Work Animals and Animal Driven Carts in Meerut District, 1991

Uttar Pradesh

Inland Fishery in Krishna District, Andhra Pradesh 1991

43. Bio-Gas Plants in Nainital and Rampur Districts, Uttar Pradesh 1991

44.- Impact of Non-farm Sector Investmnts 1994

45.

47.

Lift Irrigation Schemes in Maharashtra 1995 46. Mandwan Watershed Project under Indo-German Watershed 1999

Development Programme (IGWDP) - Mahrashtra State

Self Help Group in Tamil, Nadu 2000

48. Micro Finance for Rural People - An Impact Evaluation Study 2000

Reports are out of stock.

Report no. 5 not published.

{100}

Reports Published by the Regional offices of National Bank for Agriculture and Rural Development

SI. No.

Regional Office

Title of Evaluation Report Series No.

Year of

Publication

1 Alimedabad 1 1988 2 Dairy Development Sclnemes in IMehsana

District

2 1991

3 Lift Irrigation Sclieme of Ul<ai Left Bank i^lain

Canal - Gujart

3 1991

4 Financing of Tractors in Mehsana and Rajkot 4 1992

5 Investnnents Financed under IRDP in Valsad

District - Gujarat

5 1994

6 Bangalore

And Kolar Districts - Karnataka

1 1989

7 Borewell Financing In Chitradurga And Kolar

District - Karnataka

2 1990

8 Development Of Coffee Gardens In Karnataka

State

• 3 1992

9 Sericulture Development In Karnataka - Farm

Investments

4 1993

10 Lift Irrigation Scheme in Belgaum Disthct-

Karnataka

5 2000

11 Poultry (Broiler) Development In Bangalore

(Rural) and Bangalore (Urban) Districts-

Karnataka

6 2001

12 Drip Irrigation Programme in Cliitradurga

District of Karnataka

7 2002

13 Bhopal Dugwell and Shallow Tubewell Irrigation in

Narsinghpur District - MP

1 1988

14 Tractor Financing in Raisen and Vidisha

District - MP

2 1989

15 Commercial Layer Poultry Development in

Indore District- MP

3 1992

16 IRDP in Sagar District - MP 4 1994

17 Bhubaneswar Betelvine Gardens in Purl District of Orissa 1 1989

18 Tractor in Sambalpur District of Orissa 2 1989

19 Dairy Development in Cuttak and Ganjam

Districts of Orissa

3 1992

20 Brakish Water Prawan Cultura in Puri District

of Orissa

4 1997

21 Minor Irrigation in Samabalpur District of Orissa 5 1997

{101}

22 bhallow lubewells in Undivided Cuttack and

Undivided Purl Districts of Orissa

6 2U0U

23 District Rural Industries Project (DRIP) and

Primary Lending Institutes (PLI) Training

Programme in Undivided Ganjam District of

Orissa

7 2002

24 Chandigarh Poultry Farming in Punjab 1 1987

25 Dairy Development Schemes in Karnal and

Rohtak Districts - Haryana

2 1987

26 Tractors in Haryana 3 1994

27 Grape Gardens in Hissar District of Haryana 4 1998

28 Inland Fisheries in Patiaia and Bathinda District

of Punjab

5 2000

29 Viability of Tractors in Punjab 6 2001

30 Rural Non Farm Sector in Ludhiana and

Sangrur Districts of Punjab

7 2001

31 Water Conveyance System in Rewari and

IMahendergarh Districts of Haryana

8 2001

32 Cold Storage in Jalandhar, Ludhiana and

Patiaia Districts of Punjab

9 • 2001

33 Dairy Financing in Kurukshetra and Kaithal

District of Haryana

10 2002

34 Chennai Poultry Development in Salem District - Tamil

Nadu

1 1998

35 Dugwell Irrigation in Puddukkottai and North

Arcot Districts of Tamil Nadu

2 1989

36 Tea Gardens in Nilgiri District of Tamil Nadu 3 1990

37 Minor Irrigation Investments under Marine

Assistance Programme in South Arcot and

Tiruchiraplli Districts of Tamil Nadu

4 1991

38 Jasmine Investments in Salem and Madurai

Districts of Tamil Nadu

5 1992

39 Mini Dairy in Coimbatore and Periyar Districts

of Tamil Nadu

6 • 1994

40 Marine Fisheries in Tamil Nadu 7 1998

41 Sericulture in Tamil Nadu 8 1999

42 IRDP in Tirunelveli District of Tamil Nadu 9 2000

43 Modern Rice Mills in Tamil Nadu 10 2001

44 Coconut Development in Coimbatore District

of Tamil Nadu 11 2002

45 Guwahati Private Shallow Tubeweils and Lift Points In

Assam

1 1989

46 Inland Fishery in WestTripura District -

Tripura

2 1992

( 1 0 2 }

47 integrated Rural Development Programme in

Nagaon District of Assam

3 2000

48 Farm Mechanisation (Power Tiller) In Sibsagar

District - Assam

4 2000

49 Hyderabad Public Tubewells in Khammam District,

Andhra Pradesh

1 1988

50 Development of Grape Gardens in Ranga

Reddy District, Andhra Pradesh

2 . 1989

51 Dugwell Irrigation in Chittoor District,

Andhra Pradesh

3 1989

52 Mango Orchards in Krishna and Khammam

Districts, Andhra Pradesh

4 1991

53 On Farm Development in Khammam and

Krishna District, Andhra Pradesh

5 1995

54 Inland Fishery in West Godavari District,

Andha Pradesh

6 1996

55 Dairy Development in Krishna District,

Andha Pradesh

7 1999

56 Poultry Layer Investment in Andhra Pradesh 8 2000

57 Food (Mango) Processing in Visakhapatnam

&, Chittoor District of Andhra Pradesh

9 2001

58 Sheep Rearing in Mahabubanagar and West

Godavari Districts

10 2002

59 Jaipur Minor Irrigation Structure in Kherwara P.S. in

Udaipur District of Rajasthan

1 1988

60 Tractors in Alwar District - Rajasthan 2 1991

61 Market Yard in Kekri - Ajmer District of

Rajasthan

3 1991

62 Borewell in Jodhpur District - Rajasthan 4 1993

63 IRDP in Alwar District of Rajasthan 5 1995

64 Poultry Development in Ajmer District of

Rajasthan

6 1995

65 Sprinkler Irrigation scheme in Barmer

District of Rajasthan

7 1997

66 Dairy Development Schemes in Bharatpur 8 1999


67 Water Management Schemes in Bikaner 9 2001


68 Minor Irrigation Schemes in Bikaner District

of Rajasthan

10 2001

69 Orange Cultivation Schemes in Jhalawar


11 2002

70 Jammu IRDP in Baramulla District of J & K 1 1992

71 Tractors in Jammu District of J & K 2 1995

{103}

72 Kolkata Inland Fisheries Schemes in Nadia District,

West Bengal

1 1992

73 Bateivine Gardens in Midnapur District,

West Bengal

2 1989

74 Bullock and Bullock Carts in Malda District,

West Bengal

3 1991

75 Poultry Farming Broiler in IMidanapur District,

West Bengal

4 1999

76 l^inor Irrigation Schemes in Birbhum District,

West Bengal

5 2000

77 Lucknow Minor Irrigation Scheme in Jhansi District

Uttar Pradesh

1 1988

78 Tractors in Western Uttar Pradesh 2 1992

79 Inland Fishery in Azamgarh and Deoria

Districts- Uttar Pradesh

3 1994

80 NFS in Moradabad District - Uttar Pradesh 4 1994

81 Saghan Mini Dairy Allahabad District

Uttar Pradesh

5 1997

82 Mushroom in Dehradun District -

Uttar Pradesh

6 1997

83 Grapes in Muzaffarnagar District

Uttar Pradesh

7 1998

84 Patna Shallow Tube Wells In Darbhanga,

Madhubani & Samastipur Districts in Bihar

1 1998

85 Deep Tube Wells in Bihar 2 1989

86 Dairy Development In Begusarai &

Singhbhum Districts In Bihar

3 1989

87 Minor Irrigation Schemes in Samastipur

District In Bihar

4 1996

88 IRDP In Ranchi District In Bihar 5 1997

89 Pune Lift Irrigation in Ahmednagar District -

Maharashtra

1 1988

90 Well Irrigation in Aurangabad District -

Maharashtra

2 1.991

91 Poultry Development in Pune District -

Maharashtra

3 1,991

92 Grape Garden in Nasik District - Maharashtra 4 • 1,993

93 Land Development in Command Area of

Kukkadi Project - Maharashtra

5 . 1,995

94 IRDP in Yavatmal District - Maharashtra 6 1,998

95 Farm Mechanisation in Ahmednagar District -

Maharashtra

7 1,999

96 Post Harvest Centres (Pre-cooling, etc.) for Export of Grapes in Maharashtra

8 2,001

{104}

97 Shimla Dairy Development in Mandi District of

Himachal Pradesh

1 1,997

98 Trivandrum Betelvine Gardns in Trivandrum District of

Kara la State

1 1,988

99 Broiler Poultry Development in Ernakulam

District of Kerala

2 1,990

100 Development of Rubber Plantation in Kottayam

District of Kerala

3 1,990

101 Fisheries Development in Kollam District of

Kerala State

4 1,992

102 Farm Mechanisation on Palghat and Ernakulam

Districts of Kerala

5 1,995

103 Rural Non-Farm Sector in Mailappuram and 6 ( 5 ) 1,998

104 Sprinkler Irrigation in Arecanut Garden in

Kasargod District of Kerala

7 2,002

105 Dairy Development in Kollam District of Kerala 8 2,002

{105}

Investment-wise Ex-Post Evaluation Study Reports Published By Regional Offices of

National Bank For Agriculture And Rural Development

SI. No.

Tittle of Evaluation Report Year of Publication

MINOR IRRIGATION

1 Dugwell and Shallow Tubewel Irrigation in Narsinghpur District -

Madhya Pradesh

1988

2 Lift Irrigation in Ahmednagar District - Maharashtra 1988

3 Minor Irrigation Scheme in Jhansi District - Uttar Pradesh 1988

4 Minor Irrigation Structure in Kheerwara P.S. in Udaipur District of

Rajasthan

1988

5 Public Tube wells in Khammam District, Andhra Pradesh 1988

6 Shallow Tube Wells In Darbhanga, Madhubani & Samastipur in

Bihar

1988

7 Deep Tube Wells in Bihar 1989

8 Dugwell Irrigation in Chittoor District, Andhra Pradesh 1989

9 Dugwell Irrigation Puddukl<ottai and North Arcot Disteicts of

Tamil Nadu

1989

10 Private Shallow Tubewells And Lift Points In Assam 1989

11 Borewell Financing In Chitradurga And Kolar District - Karnatal<a 1990

12 Lift Irrigation Scheme of Ukai Left Bank Main Canal - Gujarat 1991

13 Minor Irrigation Investments under Marine Assistance Programme

in South Arcot and Tiruchirapplli Districts of Tamil Nadu

1991

14 Well Irrigation in Aurangabad District - Maharashtra 1991

15 Borewell in Jodhpur District - Rajasthan 1993

16 Minor Irrigation Schemes In Samastipur District In Bihar 1996

17 Minor Irrigation in Sambalpur District of Orissa 1997

18 Sprinkler Irrigation Scheme In Barmeir District of Rajasthan 1997

19 Lift Irrigation Scheme In Belgaum District -* Karnataka 2000

20 Minor Irrigation Schemes in Birbhum District, West Bengal 2000

21 Shallow Tube VVells in Undivided Cuttak and Undivided Puri

Districts of Orissa

2000

22 Minor Irrigation Schemes in Bikaner District of Rajasthan 2001

23 Water Conveyance System in Rewari and Mahendergarh Districts of

Haryana , .

2001

24 Water Management Scheme in Jaipur District of Rajasthan 2001

25 Drip Irrigation Programme in Chtradurga district of Karhataka 2002

26 Sprinkler Irrigation in Arecanut Garden in Kasargod District of

Kerala

2002

{106}

PLANTATION AND HORTICULURE

1 Betelvine Gardens in Trivandrum district of Kerala State .1988

2 Betelvine Gardens in Midnapur District, West Bengal 1989

3 Betelvine Gardens in Puri District of Orissa 1989 4 Development of Grape Gardens in Bangalore And Kolar Districts -

Karnataka 1989

5 Development of Grape Gardens in Ranga Reddy District, Andhra Pradesh

1989

6 Development of Rubber Planatation in Kottayam District of Kerala 1990

7 Tea Gardens in Nilgiri District of Tamil Nadu 1990

8 Mango Orchards in Krishna and Khammam Districts, Andhra Pradesh 1991

9 Development of Coffee Gardens in Karnataka State 1992

10 Jasmine Investments in Salem and Madurai Districts of Tamil Nadu 1992

11 Grape Garden in Nasik District of Maharashtra 1993

12 Mushroom in Dehradun District of Uttar Pradesh 1997

13 Grape Gardens in Hissar District of Haryana 1998

14 • Grapes in Muzaffarnagar District of Uttar Pradesh 1998

15 Coconut Development in Coimbatore District of Tamil Nadu • 2002

16 Orange Cultivation Schemes in Jhalawar District of Rajasthan 2002

ANIMAL HUSBANDRY

(A) Dairy Development

1 Dairy Development Schemes in Karnal and Rohtak Districts of Haryana 1987

2 . Dairy Development In Begusarai & Singhbhum Districts In Bihar 1989

3 Dairy Development Schemes in Mehsana District • 1989

4 Dairy Development in Cuttak and Ganjam District of Orissa 1992

5 Mini Dairy in Coimbatore and Periyar Districts of Tamil Nadu 1994

6 Dairy Development in Mandi District of Himachal Pradesh 1997

7 Sagham Mini Dairy Allahabad District, Andhra Pradesh 1997

8 Dairy Development in Krishna District, Andhra Pradesh 1999

9 Dairy Development Schemes in Bharatpur District of Rajasthan 1999

10 Dairy Development in Kollam District of Kerala 2002

11 Dairy Financing in Kurukshetra and Kaithal District of Haryana 2002

( 1 0 7 )

(B) Poultry Development

1 Poultry Farning in Punjab 1987

2 Poultry Development Schemes in Gujarat 1988

3 Poultry Development in Salem District of Tamil Nadu •1988

4 Broiler Poultry Development in Ernakulam District of Kerala . 1990

5 Poultry Development in Pune District of Maharashtra 1991

6 Commercial Layer Poultry Development in Indore District of 1992

Madhya Pradesh

7 Poultry Development in Ajmer District of Rajasthan 1995

8 Poultry Farming (Broiler in Midnapur District of West Bengal) 1999

9 Poultry Layer Investment in Andhra Pradesh 2000

10 Poultry (Broiler) Development In Bangalore (Rural) And Bangalore

(Urban) Districts of Karnataka

2001

(C) Fishery

1 Inland Fisheries Schemes in Nadia District of West Bengal 1987

2 Fisheries Development in Kollam District of Kerala State 1992

3 Inland Fishery In West Tripura District of Tripura 1992

4 Inland Fishery in Azamgarh and Deoria Districts of Uttar Pradesh 1994

5 Inland Fishery in West Godavari District of Andhra Pradesh 1996

6 Brackish Water'Prawn Culture in Puri District of Orissa 1997

7 Marine Fisheries in Tamil Nadu 1998

8 Inland Fisheries in Patiala and Bathinda Districtsof Punjab 2000

FARM MECHANISATION

1 Tractor Financing in Raisen and Vidisha District of Madhya Pradesh .1989

2 • Tractor in Sambalpur District of Orissa 1989

3 Tractors in Alwar District of Rajasthan 1991

4 Financing to Tractors in Mehsana and Rajkot Districts - Gujarat 1992

5 Tractors in Western Uttar Pradesh 1992

6 Tractors in Haryana 1994

7 Farm Mechanisation in Palghat and Ernakulam Districts of Kerala 1995

8 Tractors in Jammu District of J & K 1995

9 Farm Mechnisation in Ahmednagar District of Maharashtra 1999

10 Farm Mechanisation (Power Tiller) In Sibsagar District - Assam 2000

11 Viability of Tractors in Punjab 2001

{108}

LAND DEVELOPMENT

1 Land Development in Command Area of Kukkadi Project- Maharashtra 1995

2 On Farm Development in Khammam and Krishna Districts of

Andhra Pradesh

1995

INTEGRATED RURAL DEVELOPMENT PROGRAMME ( IRDP)

1 IRDP in Baramulla District of J & K 1,992

2 Investments financed under IRDP in Valsad District - Gujarat 1,994

3 IRDP in Sagar District - Madhya Pradesh 1,994

4 IRDP in Alwar District of Rajasthan 1,995

5 IRDP in Ranchi District in Bihar 1,997

6 IRDP in Yavatmal District - Maharashtra 1,998

7 Integrated Rural Development Programme Nagaon District of Assam 2,000

8 IRDP in Tirunelveli District of Tamil Nadu 2,000

NON-FARN SECTOR

1 NFS in Moradabad District of Uttar Pradesh . 1,994

2 Rural Non-Farm Sector in Mallappuram and Kozhikode Districts of 1,998

Kerala

3 Rural Non Farm Sector in Ludhiana and Sangrur Districts of Punjab 2,001

4 District Rural Industries Project (DRIP) and Primary Lending Institutes

(PLI) Training Programme in Und-ivided Ganjam District of Orissa

2,002

OTHER INVESTMENTS

1 Bullock and Bullock Carts in Malda District, West Bengal 1,991

2 Market Yard in Kekri - Ajmer District of Rajasthan • 1,991

3 Sericulture Development in Karnataka 1,993

4 Sericulture in Tamil Nadu 1,999

5 Cold Storage in Jalandhar, Ludhiana and Patiala Districts of Punjab 2,001

6 Food (Mango) Processing in Visakhapatnam & Chittoor District of

Andhra Pradesh

2,001

7 Modern Rice Mills in Tamil Nadu 2,001

8 Post Harvest Centres (Pre-cooling etc.) for Export of Grapes in

Maharashtra

2,001

{109.}

\

Exhibit No. 4

T

Exiiibit No. 5

Exhibit No. 7

Exhibit No. 8

^

Exhibit No. 10

Exhibit No. 11

a

EX-POST EVALUATION - NABARD 15… · EX-POST EVALUATION STUDY ON COLD STORAGES IN BIHAR (2002 -...

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