PRIME Agriculture Response Vehicle

PRIME Agriculture Response Vehicle Scheme is a component under the Chief Minister’s Elevate Program launched by the Government of Meghalaya which aims to employ, engage, and empower the youth of Meghalaya by promoting entrepreneurship and by providing easy access to credit through onboarding of various banks as financial partners of the program. To minimize the risks associated with the credit flow, Government is providing front end subsidy in the form of down-payment and backend subsidy in the form of EMI co-payment.

Through this program, the entrepreneurs including individuals, collectives, village organizations, various business entities and traditional institutions etc. will have easy access to various schemes on a single online portal. The program encompasses a number of sectors such as agriculture, horticulture, veterinary and animal husbandry, tourism, entertainment, sports, wellness, and any business venture of economic interest for the people of the state.

Prime agri

Scheme Details

About

Meghalaya is a rural economy where 77% of its population are dependent in agriculture and allied sector. The agriculture sector has the potential to create employment opportunities and generate income to a significant portion of the population, can ensure stable food supply reducing the risk of food shortages and price volatility for the state. Considering this, agriculture can play a crucial role in becoming a one of the key drivers of economic growth of the state. Government of Meghalaya understands that several factors such as technology, supply chain and logistics and market access are important for promoting sustainability and resilience in the sector.

However, based on the overall assessment of the mobility scenario of the state conducted under “Meghalaya Integrated Transport Project”, it was highlighted that the lesser developed transportation infrastructure is severely impacting agricultural trade and commerce in the state. To mitigate the gap, Department of Agriculture and Farmer’s Welfare, Government of Meghalaya has launched, “PRIME Agriculture Response Vehicle Scheme (PRIME-ARVS)” in 2022 at the cost of Rs. 6.7 crores to the state. Under the scheme financial aid was provided to entrepreneurs from rural areas to buy small and medium sized pick-up trucks to transport agriculture produce from farms to the market. Additional support services through 1917iTeams to link the vehicle owners under the scheme with the market was also initiated. A total of 113 numbers of various farmer’s groups which included Integrated Village Cooperative Societies, multipurpose societies, Self Help Groups, Village Organizations, FPOs, FPCs etc. from across the state are benefitted in the first phase of the scheme.

However, to further support the rural communities involved in agriculture and allied sector, the state has decided to include more entre PRIME ARVS and is to be relaunched under the Chief Minister’s Elevate Program. Understanding the need of aggregators to transport higher quantities of products as well transport perishable products under refrigeration to maintain freshness, the government has added medium sized trucks and reefer trucks in the second phase of the scheme. 

Under this Scheme, entrepreneurs will receive 95% of the project cost as credit or loan from the partner banks. Entrepreneurs are required to contribute only 5% of the project cost (on-road price of the vehicle) as margin money or vehicle down payment to the banks. Out of the 95% of the project cost as loan component, Government of Meghalaya will provide 45% of the project cost as financial aid in the form of capital subsidy and as interest free component. To support the entrepreneurs during first 12 months of their operation, 5% of project cost will be provided as EMI co-payment. Additional support will be provided through the implementing agency of the scheme in the form trainings, capacity building programs etc.

Objectives of the scheme

  • Economic growth of the state:

With 77% of the population involved with agriculture and allied sectors in rural areas, the PRIME ARVS is envisaged to accelerate and sustain economic development of the state through entrepreneurship development, job creation in the rural community.

  • Encourage entrepreneurship among rural youth:

The scheme is intended to encourage entrepreneurship among the rural youth by providing them easy credit access and financial grant to buy commercial vehicles. These vehicles can be used by the entrepreneurs to earn their income by providing transportation solution to local farmers, traders, and buyers.

  • Logistics solution to farm produce:

To provide a transportation solution to evacuate farms produce to intended destinations such as markets, processing facilities or aggregation centres. Similarly, the vehicles can also transport various farming inputs from the market for timely and successful agricultural operations.

  • Lower transportation cost:

Introducing more numbers of commercial goods carriers will potentially help reduce logistics cost for the marginal farmers by fostering competition among the logistics providers. Various farmers groups who will be benefitted with the vehicles under the scheme will significantly reduce the transportation cost of their own grown/ aggregated farm products.

  • Market accessibility to farmers from remote area:

The majority of the vehicles are intended for entrepreneurs residing in remote areas so that farmers living in their proximity from nearby villages and clusters can be benefitted. The farmers residing in these areas can quickly avail their transportation services to sell their farm produce and buy back their essentials from the markets.

  • Increase farmer’s profitability:

Timely evacuation of farm produce will have a significant impact on farmer’s profitability by minimizing spoilage of perishable products; reducing additional storage costs such as refrigeration, storage facilities; increasing market accessibility; maintaining cash flow through quicker sales and lastly by enhancing customer satisfaction by building trust and long-term relationship with the buyers. 

  • Financial grant and easy credit to the entrepreneurs to buy goods carriers

300 Prime Agriculture Response Vehicles (Prime-ARVs) to be distributed across Meghalaya with 50% financial aid on the total cost of the vehicle including the interest charged by the bank to finance the vehicle.

  • Demand creation through 1917iTeams

Vehicles will be registered with 1917iTeams who will provide transportation demand calls from customers to the vehicle owners. Vehicles will be pre-fitted with GPS device ensuring trackability of the vehicle by 1917iTeams. The live location of the vehicle will help in immediately connecting the farmers/ aggregators/ buyers to their nearest available vehicle.

Scheme

1.    Financial aid of 50% of the project cost (on-road price of the vehicle) in the form of capital subsidy and operational subsidy and  to buy any goods carrier for agriculture logistics from various options mentioned in the scheme guidelines.

2.   Support through 1917iTeams to connect with the traders, buyers and sellers in the market which will provide them additional transportation businesses.

3.   Trainings and capacity building programs designed by the department and 1917 iTeams.

Who can apply?

1.    Individuals from Meghalaya

2.   Any farmer’s association/group/entity registered in Meghalaya such as Cooperatives, Farmer Producer Companies (FPC), Farmer Producer Organisation (FPO) etc.

3.   Any unregistered entity such as village organizations, self-help groups, producer groups and any other traditional institutions etc.  based in Meghalaya can apply

Note: Applications from following shall not be ordinarily considered.

1.    Pressure groups and organizations that are primarily political in nature

2.   Government employees (currently employed or retired and drawing pension) and their dependents.

Nodal Department for the CM’s Elevate ProgramPlanning, Investment Promotion & Sustainable Development Department
Nodal Department for the schemeDepartment of Agriculture& Farmers’ Welfare, Government of Meghalaya
Partner banks for credit support

1.    Meghalaya Rural Bank (MRB)

2.   The Meghalaya Co-Operative Apex Bank Ltd (MCAB)

3.   State Bank of India (SBI)

4.   HDFC Bank

5.   Northeast Small Finance Bank

6.   The Shillong Co-operative Urban Bank Ltd

Distribution of vehicles and models offered under the scheme:

Vehicle distribution across Meghalaya

Vehicles are to be distributed across the state based on the assessment of agricultural production, size of the block, the need of the agriculture transportation vehicles in that area and accessibility to the markets.


Vehicle models under the scheme

Based on various requirements of the farmers to transport agriculture and allied sector products, different categories of goods carriers have been listed for the entrepreneurs to buy. 

  1. The entrepreneurs can opt for any vehicle from the list based on their need. 
  2. However, justifications for the same needed to be provided in the application form. 
  3. Additionally, the evaluation committee may also guide the entrepreneurs to buy a vehicle from a different category based on the evaluation of the requirements with respect to the entrepreneur’s location.

Disclaimer: 

  1. Ex-showroom prices of the vehicles may vary at the time buying
  2. Ex-showroom prices do not include other components of on-road cost of the vehicle such as registration, insurance, road tax etc.

Eligibility

Individual entrepreneurs

Individuals who are permanent residents of Meghalaya are eligible for the scheme.

Eligibility conditions:

    • Must be above 18 years of age and below 58 years of age.
    • Must be involved with the agriculture sector for minimum of two years. A letter of certification needs to be provided from the Block Development Officer (BDO) to support the claim.
    • Must have a valid commercial driving license.
    • Must provide valid government ID proof with an address such as Aadhar Card, Voter ID, Passport etc.
    • Shall not be a credit defaulter from any bank.
    • Government employees (currently employed or retired and drawing pension) and their dependents.
    • Only one member from a family is eligible for the subsidy. The ‘family’ includes self and spouse.
Registered entities
  1. Any registered group of farmers involved with agricultural products and legally registered with the government of Meghalaya such as Cooperatives, Farmer Producer Companies (FPC), Farmer Producer Organisation (FPO) etc. are eligible to apply for the scheme.
  2. Eligibility conditions:
    • Must be involved with the agriculture sector for minimum of two years. A letter of certification needs to be provided from the Block Development Officer (BDO) to support the claim.
    • Should not be a beneficiary under the first phase of the Prime Agriculture Response Vehicle Scheme.
    • Must provide an Incorporation Certificate or a registration certificate whichever is applicable
    • Shall not be a credit defaulter from any bank
    • Pressure groups  and organizations that are primarily political in nature shall not be ordinarily considered.
Unregistered entities
  1. Any unregistered entity such as village organizations, self-help groups, producer groups and any other traditional institutions based in Meghalaya can apply
  2. Eligibility conditions:
    • Must be involved with the agriculture sector for minimum of two years. A letter of certification needs to be provided from the Block Development Officer (BDO) to support the claim.
    • Should not be a defaulter at any financial institution
    • Should not be a beneficiary under the first phase of the Prime Agriculture Response Vehicle Scheme.
    • Pressure groups  and organizations that are primarily political in nature shall not be ordinarily considered.
Submission requirements as proof of eligibility:

As proof of eligibility, the entrepreneurs are required to provide proof of their eligibility for the scheme by submitting the required documents mentioned below.

IndividualsRegistered entitiesUnregistered entities

Mandatory:

  • A valid photo identity with address which includes Aadhar Card, Voter ID, Passport and driving license. Aadhar linkage is mandatory to receive the benefits of annual rate of interest subvention up to 3%.
  • A letter of certification needs to be provided from the Block Development Officer (BDO) to support the claim for involvement in agriculture sector.

Optional:

  • Aadhar linkage is mandatory to receive the benefits of annual rate of interest subvention up to 3%.
  • Pan card, if available
  • A valid commercial driving license
  • A copy of the front page of the savings account passbook, if available

Any other document as specified by the department and the partner bank.

Mandatory:

  • Incorporation/ Registration Certificate
  • A letter of certification from the Block Development Officer (BDO) to support the claim for involvement in agriculture sector.
  •  Valid commercial driving license of the driver
  •  A valid photo identity with address of the President and Secretary which includes Aadhar Card, Voter ID, Passport and driving license.

Optional:

  • Aadhar linkage is mandatory to receive the benefits of annual rate of interest subvention up to 3%.
  • GST certificate, if available
  • Pan card, if available
  •  Trade License, copy if available
  • Latest bank account statements of one year of the organization, if available

Any other document as specified by the department and the partner bank.

Mandatory:

  • A valid photo identity with address of the President and Secretary which includes Aadhar Card, Voter ID, Passport and driving license.
  •  A letter of certification from the Block Development Officer (BDO) to support the claim for involvement in agriculture sector.

Optional:

  • Aadhar linkage is mandatory to receive the benefits of annual rate of interest subvention up to 3%.
  • Pan cards of President and the Secretary, if available
  •  Latest bank account statements of one year of the President and Secretary, if available

Any other document as specified by the department and the partner bank.

Application Process

Application procedure

Entrepreneurs are required to complete the application process and submit all the required documents through the online CM-ELEVATE Program Portal.



Financing

Summary of the financing plan:

The figure below shows the overall summary of the financing of the project.

Entrepreneurs can choose to go with any bank listed below to apply for loan based on their choice.

  1. Meghalaya Rural Bank (MRB)
  2. The Meghalaya Co-Operative Apex Bank Ltd (MCAB)
  3. State Bank of India (SBI)
  4. HDFC Bank
  5. Northeast Small Finance Bank
  6. The Shillong Co-operative Urban Bank Ltd.

Credit Details

Loan Amount50% on the total cost of the vehicle including the interest charged by the bank financing the vehicle
Loan term5 years to 7 years depending upon the type of the vehicle
Moratorium period3 months
Annual rate of interest

Variable interest rates are applicable for partner banks.

Note:

Additional subvention on annual rate of interest up to 3%  is applicable upon Aadhar linkage by the entrepreneurs to the partners banks for the Reefer Trucks under PRIME-ARVS

However, Entrepreneurs are requested to visit any of the partner banks for more information on the same.

Quantum and Nature of Assistance:

1) Margin money Support:

Total down paymentwill be 50% of the on-road price of the vehicle and the remaining 50% will be on credit through a bank loan.

  • 5% of the on-road price of the vehicle is to be paid by the entrepreneur to the bank
  • 45%of the on-road price of the vehicle will be paid by the Government of Meghalaya to the bank.

2) EMI support:

To reduce the burden of the operational cost on the entrepreneur in the first one year of business, Government of Meghalaya will support the entrepreneur by paying EMI co-payment equivalent to 5% of the project cost (distributed equally over a period of twelve months).

3) Additional support:

  • The vehicleswill be pre-fitted GPS device with 5 years of warranty.
  • The branding cost of the vehicle will be borne by the government.

4) Maximum support to be provided from the government:

Maximum support from the government will be 50% of the on-road cost of vehicle model from the list along with the additional support mentioned above.


Illustration to understand the payment terms

Let’s consider an example to understand the various financial components of vehicle procurement

ComponentsValues
On-road price of the vehicle₹10,26,529
Down payment by Entrepreneur (5%)₹51,326
Down payment by GoM (45%)₹4,61,938
Auto Loan Amount (50%)₹5,13,265
Annual Interest Rate9%
Term of Loan5 years
Total Monthly EMI₹11,351

Disclaimer: 

  1. The price of the vehicle is subjected to change from time to time based on ex-showroom price of the vehicle by the manufacturer, registration cost, insurance etc.
  2. Annual interest rate may differ at the time of sanction of the loan and prevailing rate of the bank will be applicable.

The tables below show the details of shared EMI between GoM and entrepreneur.

EMI payment:

PayeeEMI
1-3 months4-15 months16-60 months
Entrepreneur₹ 0₹ 7,074₹ 11,351
GoM₹ 0₹ 4,277₹ 0
Total₹ 0₹ 11,351₹ 11,351
 

Disbursement of subsidy by the government

Margin money/upfront support from the department will be transferred to the bank in favour of the entrepreneur within 15 days of receival of request from the bank.

    • EMI support will be submitted to the banks directly by the government.
    • However, EMI support will be provided only after the assessment of the following criteria which will be conducted by the district level committees formed by the department.
      1. Whether the vehicle is being used for the transportation of agricultural products when there is a demand.
      2. Whether the vehicle driver is responding to the calls made by 1917iTeams.
      3. Vehicle owner must submit the total number of trips done by the vehicle including the details of products transported, earning per trip, customer details every month to the office of District Agricultural Officer.
      4. Vehicle shall clock a minimum of 400 km/month for transportation of agriculture products as per the records of GPS and trip details provided by the vehicle owner.
      5. Farmers in the respective area of operation of a vehicle are found to be satisfied with the transportation services. Assessment shall be done by the government representatives.
      6. Vehicle is found to be in good condition as per the certificate of inspection by the government representative.

Completion of loan process by the bank

    • Banks are required to complete the loan process within the specified period defined by the department upon agreement with the banks.
    • In case the entrepreneurs fail to pay their contribution of upfront amount within the specified time after the announcement of the results, the allotment will be passed on to the entrepreneurs in the waiting list.

Remittance of the vehicle amount to the dealers

Banks will remit the 100%  of the vehicle amount to the dealers.

Implementation Agency

  1. Department of Agriculture & Farmers’ Welfare will be the implantation agency for the scheme.
  2. State Level:  Directorate of Agriculture
  3. Coordinating Officers: District Agricultural Officers (DAO) and District Horticulture Officers (DHO) of each District
  4. ‘State Level Committee’ headed by Secretary, Department of Agriculture and Farmer’s Welfare will oversee the progress of the scheme implementation.

Evaluation

Shortlisting of applications:

Applications will be shortlisted based on the verification of all required documents mentioned above.


Evaluation of the shortlisted applications:

Primary criteria for evaluation of the entrepreneur will be,

  1. Primary sector production in the targeted/identified area
  2. Population involved in primary sector in that area
  3. Secondary activities and services during the lean season
  4. Existing agriculture value chain
  5. Proximity of markets for primary sector products
  6. Need for agriculture transportation vehicles
  7. Current occupation
  8. Preference shall be given to the entrepreneurs who will be drivers of the ARVs in case of individual’s selection.


Personal interviews:

Personal interviews of the screened entrepreneurs may be conducted by the committee.

Economic Benefit

Pickup Truck

Truck of 10 MT

Reefer Truck

FAQs

PRIME ARVS is a credit linked scheme launched by Department of Agriculture and Farmers’ Welfare under which financial aid of 50% on the cost of the vehicle is provided to the entrepreneurs from rural areas to buy goods carriers to transport agriculture products from farms to market. Additional support such as market connect support through 1917iTreams and various training programs to the vehicle owners are also part of the scheme.

PRIME ARVS is one of the 15 other bank linked schemes being launched under the CM ELEVATE programs.

Department of Agriculture and Farmers’ Welfare is implementing the scheme at state level.

  • Individuals from Meghalaya
  • Any farmer’s association/group/entity registered in Meghalaya such as Cooperatives, Farmer Producer Companies (FPC), Farmer Producer Organization (FPO) etc.
  • Any unregistered entity such as village organizations, self-help groups, producer groups and any other traditional institutions etc. based in Meghalaya can apply

 

Individual entrepreneurs must be between 18 and 58 years of age.

Any  entity or group of farmers involved with agricultural products and legally registered with the government of Meghalaya such as Cooperatives, Farmer Producer Companies (FPC), Farmer Producer Organisation (FPO) etc.

Any entity or group of farmers such as village organizations, self-help groups, producer groups and any other traditional institutions based in Meghalaya who are not currently registered/incorporated with the government of Meghalaya.

  • Non-permanent residents of Meghalaya are not eligible to apply.
  • Applications from following shall not be ordinarily considered.

1) Pressure groups and organizations that are primarily political in nature

2) Government employees (currently employed or retired and drawing pension) and their dependents.

1) Permanent residents of Meghalaya are eligible for the scheme

2) Must be involved with the agriculture sector for minimum of two years.

3) Must have a driver with a valid commercial driving license

4) Shall be eligible for loan and shall not be a credit defaulter from any bank.

5) Should not be a beneficiary under the first phase of the Prime Agriculture Response Vehicle Scheme.

1) A valid photo identity with address which includes Aadhar Card, Voter ID, Passport and driving license

2) Letter of registration or incorporation certificate for registered entities

3) Aadhar card and Aadhar linkage with the bank is mandatory to receive the benefits of annual rate of interest subvention up to 3% on the purchase of refrigerated trucks

4) A letter of certification needs to be provided from the Block Development Officer (BDO) to support the claim for involvement in agriculture sector

5) Pan card (Optional)

  • 6) Latest bank statement of 1 year (Optional)
  • 7) Trade license wherever, if available
  • 8) GST certificate and proof of return, if available
  • 9) Any other document as specified by the department and financing bank.

There is no application fee.

Currently the last date of application for the first phase of the scheme is 31st of October 2023.

Entrepreneurs could contact the helpline team through a call or email for any queries related to application process.

Entrepreneurs can also contact the District Agriculture Officer of the respective district for any clarifications.

Entrepreneurs can also contact the District Agriculture Officer of the respective district for any clarifications.

The application process will be processed and evaluated through district and state level committees which will be notified by the implementing agency from time to time.

You can send your grievance to the helpline number.

No changes will be applicable after submission. It is advisable that the applicants read and answer each question carefully and all changes should be made before submitting the application.

The scheme is offering 50% financial aid on the on-road cost of th vehicle in the form of 45% as upfront support and reaming 5% as EMI co-payment for twelve months.

You can receive 50% of the on-road cost of the vehicles which are listed under the scheme.

You can choose any of the partnered banks under the scheme based on your convenience and ease. The banks which are currently part of the scheme are Meghalaya Rural Bank (MRB), Meghalaya Cooperative Apex Bank Ltd, State Bank of India (SBI), HDFC Bank and Northeast Small Finance Bank.

The repayment period is 5 to 7 years depending upon the type of vehicle  and is inclusive of 3 months of moratorium period.

Interest rates may vary depending on the bank you choose for credit support. You should inquire with the selected bank for specific interest rate details.

No, currently there are no pre-closure penalties for the loan.

The subsidy is disbursed to the entrepreneurs through financing partners under the scheme.

Trainings may be provided and the same will be notified by the Implementing Agency from time to time.

Yes, training provided by the Implementing Agency will be mandatory.

Training locations will be notified by the Implementing Agency from time to time.

No,  there are no fees associated related to trainings provided by the implementing agency.

Duration of the trainings will be notified by the Implementing Agency from time to time.

You are requested to contact PRIME Hub or District Agriculture Office to inform about any challenges being faced at any stage of the project for any guidance and requirements.

Planning, Investment Promotion & Sustainable Development Department, Government of Meghalaya, 

Departments