Himachal Pradesh Horticulture Matching Grant Scheme – Eligibility, Procedure, Subsidy

HP Horticulture Scheme Key Features –

  • Matching Grant has been designed to encourage private investment in the Agri/ Horticulture value chain in the state of Himachal Pradesh.
  • HPHDP project will provide matching grant support up to 30% (35% for Women and PwD) upto 60 Lakhs maximum of the project cost for all applicants approved by the project.
  • Matching Grant will be disbursed in three tranches (30%, 40%, 30%).
  • Some of the businesses supported by the scheme are – Nurseries, Orchards , Fruits & Vegetable Processing Industries, Cold Storages and other possible horticulture business enterprise.

Eligibility for Matching Grant Scheme –

  1. The applicant can be farmer or entrepreneur with any entity – Proprietorship, Partnership, Private or Public Ltd. Company, Farmer’s Cooperative, Farmer Producer Company.
  2. The applicant should be above 18 years of age and should have a good understanding and experience of horticulture business.
  3. Matching Grant will be awarded only once to an applicant. However, an Applicant not selected in one cycle can apply for subsequent cycles.
  4. The applicant should not be a defaulter of bank loan. Taking bank loan of 20% of total project cost is mandatory. Applicant should not receive any subsidy by central/ state grant schemes for the same project or for project on same land.

Types of horticulture business supported by the scheme –

  • Model modern nursery unit (Nurseries, Orchards) for production of quality planting material.
  • Bee Keeping, Honey Processing/Packaging etc.
  • Advisory services related to plant and soil health, clinic facility, nutrient analysis lab etc.
  • Storage Facilities – Cold Storage Units, ripening chambers, grading & packing houses, etc.
  • Fruit & Vegetable processing activities like production of jam, juices, Squash, KetchUp etc.
  • Oil extraction from Walnut, Mustard Apricot, etc.
  • Any other possible horticulture business enterprise are also supported.

Project Cost & Eligible Project Cost

Total project cost includes the actual project cost required to set-up and run the business. It includes Land purchase cost, Civil Construction, Plant & Machinery, Purchase of vehicle, office furniture, IT assets, Wages etc.

Eligible project cost DOES NOT includes –

  1. Land purchase cost
  2. Purchase of vehicles, office furniture
  3. Administrative Expenses, Wages, IT expenses, Consultation Charges Interest paid to financial institutions.

Eligible Project Cost INCLUDES –

  1. Plant & Machinery Expenses, including its transportation charges and GST.
  2. Civil work related to business/production like Factory Shed etc.
  3. Pre-operative expenses (GST Registration, DPR preparation cost etc) will be considered (not more than 5% of total project cost)
  4. If working capital finance is not secured, one cycle working capital may be included in the eligible project cost.

HP Horticulture Scheme Subsidy Details –

  • Matching grant supports upto 30% (35% for Women and PwD) upto 60 Lakhs maximum of the eligible project cost for all applicants approved by the project.
  • All applicants are required to provide a mandatory equity contribution of 10% for product based and 20% for service based entrepreneurship business models.
  • Matching Grant will be disbursed in three tranches (30%, 40%, 30%) and will be linked to bank loan.
  • Bank loan of 20% of total project cost is mandatory.
  • Applicant should not receive any subsidy by central/ state grant schemes for the same project/ for any project developed on the same land.

Mandatory Documents Required for the Scheme –

  1. PAN Card of Applicant
  2. GST (Goods & service Tax) Registration
  3. Udyam Registration
  4. Fssai Lisence (For Food Processing Industries)
  5. Fire/Pollution NOC
  6. For Land Ownership –
  7. Resident of HP – Direct Registry
  8. Non-Resident of HP – 118 Permission from HP Gov
  9. Building Map Pass Cert. For Construction 

HP Horticulture Scheme – Application Procedure

Stage 1 – Applicant will apply indicating the business idea, project cost, component/ sub-components seeking Matching Grant, other sources of finance, etc and submit a Detailed Project Report (DPR)to ABPF cell.

If the applicant’s project is shortlisted, he should come up with complete business plan within 60 from the date of publishing result of stage 1.

Stage 2 – Matching Grant Peer Review Committee will assess each proposal/ plan for technical & financial evaluation. Upon scoring a minimum cut-off, the shortlisted business plan, will be submitted to approval committee and the selected candidates with be informed via emails.

If a candidate is not selected, he may apply in the next cycle as each Matching Grant cycle has limited funds to invest.

Stage 3 – Upon selection, the Matching Grant awardee should attend the orientation programme that will be conducted in Shimla. He needs to submit all the necessary documents.

Stage 4 – Before releasing the Matching Grant amount, the ABPF team will conduct field visit to assess the proposed site of business operations and relevant facilities. The applicant should facilitate this field visit.


Detailed Project Report Structure for the Scheme

The applicant seeking Matching Grand has to submit DPR indicating his business idea, project cost details, staff details, market assessment, sources of finance etc.

The DPR should include detailed information about technical and financial feasibility of the business plan.

It should also include Environment and Social Safeguards details.

Technical Proposal includes –

  1. A brief description of the applicant’s organization.
  2. Outline of applicant’s knowledge and experience in the proposed business plan.
  3. Proposed manpower and staff details to run the business.
  4. Description of the proposed business, production capacity, manufacturing process, technology details.
  5. Catchment Analysis – Suitability of project location, availability of raw materials, road connectivity, availability of skilled and unskilled labor in the surrounding region, etc.
  6. Present demand – supply scenario, value chain mapping, market assessment, marketing strategies, distribution channels, possible risk & mitigation strategies. 
  7. SWOT analysis – Strengths, Weaknesses, Opportunities and Threats related to the proposed plan.

Financial Component Includes –

  1. Project cost details – promoter’s equity, required loan details, civil work estimate, subsidy etc.
  2. Plan for working capital – one cycle working capital requirement, working capital loan requirement.
  3. Plant & Machinery Cost details, manpower, utilities estimate (water/electricity bill).
  4. Projected Profit & Loss Statement.
  5. Projected Balance Sheet and Cash Flow statement.
  6. History of bank loans and loan repayment details.
  7. Cost and Revenue Assumptions, Operating Margin etc.
  8. Profitability forecast and calculation of DSCR, IRR (Internal Rate of Return), Break Even Point etc.

Important Links –

Detailed PDF related to HP Horticulture Matching Grant Scheme

Himachal Pradesh Horticulture Development Project Official Site


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For more information related to the scheme, you can contact us –

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