Common Facility Centre
The Common Facility Centre scheme is an is an initiative of the Government of Meghalaya for creating common multi-purpose infrastructures to cater to the socio-economic needs of the village. With a significant portion of the State’s population residing in rural areas, focussed interventions to promote socio-economic growth of the village communities is essential.
To encourage the growth of rural industries and promote village-level entrepreneurship, Common Facility Centres would be established to foster economic empowerment in the rural areas. The CFCs would be a standard, weather-proof infrastructure providing commonly needed facilities at one place, leading to reduction in operational costs and investment for the rural communities and enterprises.
The scheme will be implemented by the Meghalaya Basin Management Agency (MBMA), Government of Meghalaya.
Salient features of the scheme .Upto 80% subsidy for project. The scheme would be implemented through a credit-linked subsidy model.
Scheme Rationale
About 80% of the State’s population reside in rural areas. Rural economy has the potential to become one of the key drivers for economic growth of the State.In order to meet the meet the ever-changing needs and aspirations of the rural communities, there is a need for availability of improved village-level infrastructure and facilities. By taking into consideration the common objectives of the village, the CFCs would be designed to house the much-needed facilities as per local requirements, all at one place. The CFCs would also facilitate in promotion of rural entrepreneurship and enterprises,thereby providing livelihood opportunities and a boost to the rural economy.
Overview
The Common Facility Centre scheme aims to address the infrastructure gaps in rural areas by establishing Common Facility Centres, through a government scheme by providing subsidy-based assistance to the selected beneficiaries. The scheme aims tocreate socio-economic opportunities for the rural communitiesby empowering them
Objectives
The objective of the Common Facility Centre is to make available weather-proof infrastructure for the local village communities which will act as a common space to socialise as well as to accommodate requirements of rural enterprises with facilities such as uninterrupted electricity, training hall and small-scale machines. The facilities in the CFC would be made available based on the local requirements. This scheme would also promote entrepreneurship development thereby creating livelihood opportunities for the rural communities.
Benefits
The Government of Meghalaya is promoting establishment of Common Facility Centres in villages across the State. These centres are being promoted as multi-purpose infrastructures that can be used for various socio-economic activities. Broadly, the CFCs are being promoted as a shared space for, but not limited to:
- Communities to interact and engage.
- Holding village level meetings.
- Departments to use for village level trainings, awareness programs etc.
- Local artisans and craftsmen to practice their craft.
- Undertaking small scale agriculture value addition.
- Sorting, grading and packaging of agri produce.
- Setting up small scale handloom and weaving centre.
- Undertaking any other economic activity prevalent in the village.
Financing Plan
- The financing bank for this scheme is XXX. An MoU shall be signed between MBMA, bank and the selected beneficiary.
- Financing of the CFC to the selected beneficiaries of the scheme shall be done partly by:
- MBMA (50%)
- Credit support through banks (30%)
- Community contribution (20%)
- MBMA will grant 50% of the cost of construction of the model CFC (as specified above).
- If the proposed cost of construction is more than the model CFC then the grant will still be 50% of the model CFC.
- If the proposed cost of construction in application is less than the model CFC then the grant will be for 50% of the proposed cost of construction.
- The bank will sanction 30% of the cost of construction of model CFC to the beneficiary in the form of a term loan of 5 years.
- The prevailing rate of interest shall be charged by the bank and the repayment schedule will be 5 years.
- To reduce the burden of the operational cost on the beneficiaries in the first two years MBMA will support the beneficiary by paying 50% of the EMI in the first 24 months.
- For the rest of the EMIs after 24 months, beneficiary shall bear the 100% of the EMI/month
- The community contribution will be the remaining amount, which in case of the model CFC will be 20%.
- As security deposit, beneficiaries must keep a minimum balance which is equal to three EMIs (value equal to monthly EMI in first 24 months) in their savings account with the financing bank. They shall not be able to withdraw this minimum balance within the loan term and shall receive savings interest on the same for the same period from the bank.
- Down-payment support from the Government of Meghalaya will be transferred to the bank branch in favour of the loanee within 30 days of receipt of validation. In case the beneficiary fails to initiate construction within three months of receipt of validation, the same shall return to the department account.
- Only after receiving the required EMI from the beneficiary, EMI support from Government of Meghalaya shall be disbursed to the loan account of the same.
Eligibility Criteria
- As the scheme is aimed at setting up CFCs at village level, only village-based institutions are eligible for applying for the same. These include DorbarShnongs, Integrated Village Cooperative Societies, Village Organizations, Self-Help Groups, Farmer Producer Organizations, and other such community-based organisation/society. The organisation/society should fulfil the following criteria:
- The applicant must have land available for construction of the CFC.
- The applicant must be involved in a local income generating activity.
- The applicant should not be a defaulter under any financial institution.
Documents to be submitted
- Registration certificate of the organization/ society
- Address proof of the organization/ society
- No Objection Certificate (NOC)for setting up the CFC from the DorbarShnong
- Self-attested statement on availability of land for construction of the CFC as attached inAnnexure A
- Front page of KYC compliant savings account passbook and bank Statementfor last 6 months
- PAN card of the organization/ society, if applicable
- GST return for the year 2021-22, if applicable
- ITR 2020-21 and 2021-22, if applicable
- A duly filled application form as attached in>Annexure B
Implementation agencies
The Meghayala Basin Management Agency, Government of Meghalaya shall be the implementing agency for the scheme. At the district level, District Project Manager (DPMs) will be the nodal officers to help in the implementation.
The applicants can apply for the scheme through an online process on the official portal of the Meghalaya Basin Management Agency at:
(LINK)
Applicants can visit the portal and apply for the scheme on their own and upload the necessary documents.In case of any assistance required, the beneficiary may approach the DPM.
Application assessment process and criteria
The verification of the applications will be done by
All beneficiaries of the scheme must agree to the terms and conditions of the MBMA, Government of Meghalaya. A tripartite contract agreement will be signed with MBMA, the financing bank, and the beneficiary. The terms and conditions of the contract are mentioned below:
