Context
We need to ensure that the financing support we provides complements / leverages existing government subsidy and grant programs.
So far, we have seen some concrete examples of this:
JSLPS is providing ~1.5cr in grant funding to FPOs but the money is not being utilized. JSLPS wants to see a realistic business plan and regular data / updates before releasing the funds. During our workshop in mid July, the FPO identified a mustard oil extractor as a promising opportunity. We may be able to do a pilot where funding comes from JSLPS and DG focuses on biz plan + digitization
Velugu in AP has an approval letter from DoH for 75% subsidy on 3 collection centers (estimated at 15 lakhs each a couple years back). While approved, its taking forever for the money to be released. We are exploring whether our financing support could be setup in such a way where it helps Velugu get started on with collection centers + processing equipment and once the govt funds finally show up, they can be used for further investment.
OLM provides no interest working capital loans to PGs and grants upto 1cr and low interest (0.5% to 1.0% annually) to FPOs. Eligibility is based on a questionnaire/checklist that is roughly split 50% between FPO boards following their MoA and 50% whether FPO achieves is stated goals. Saharapada needs a decent bit of handholding before they meet the bar for the FPO level subsidies but should be able to tap into the PG level subsidies fairly easy (though they are wary of taking on any debt, even at low interest).
One open question is how we can help groups get their data organized to tap into such subsidy programs.
This page will serve as a repository for various relevant central and state schemes that we can help FOs access.
References
Source
Haqdarshak lists of schemes