Friday, June 26, 2009

Project report for sheep farming

For a detailed sheep project report please call:9902218805.



Project report on sheep farming:


A good project report should contain the following points, a thorough knowledge about the specific sector and also the type of activity in project, that is, if its will be a breeding unit /fattening unit /combined unit should be taken into account .Also first hand information of various governmental schemes and also subsidies for taking up such projects and if reserved for certain niche areas, and also for some particular community, and also if it’s gender based scheme, should be taken into account and with prior consultation with a veterinary officer or breeder with specific knowledge and expertise in the given field should considered. all the various aspects such as the primary health care facilities and, package of practices from the point of scientific importance like periodic immunizations , deworming and other methods to boost the productivity and minimize the losses and enhance the profitability of such a venture & specific training in the given field of the applicant should be mentioned with a special note to get the financial aid on a priority basis .The project report so formulated should be submitted to the nearest nationalized branch of bank. The bank's officers can assist in preparation of the scheme or filling in the prescribed application form. The bank will then examine the scheme for its technical feasibility and economic viability.





A) Technical Feasibility - This would briefly include

selection of quality sound and breedable animals & insurance agencies servicing the area of the project ,veterinary aids and newer techniques involved /to be incorporated that surpasses the existing practices

Viability of good quality animals in nearby livestock markets. The distribution of sheep breeds and facilities to procure them and transport them

Training facilities of major institutions providing training in Sheep farming and also personnel training on a periodic basis .affiliations /trainings already taken should be high lighted.

Availability of good grazing ground / lands (owned /leased /contracted /free of cost like goshalas/community grazing grounds.)

Viability of green/dry fodder, concentrate feed, silage, alternate feeding practices

Availability of man power for grazing /cultivating fodder, proximity to the bank branch, training center, veterinary aid, etc





B) Economic Viability - This would briefly include

Unit Cost - The average cost of Sheep units.

Input cost for feeds and fodders, veterinary aid, insurance, shearing etc.

Output costs i.e. sale price of animals,

Income-expenditure statement and annual gross surplus.

Cash flow analysis.

Repayment schedule i.e. repayment of principal loan amount and interest.

Other documents such as loan application forms, security aspects, margin money requirements etc. are also examined. A field visit to the scheme area is undertaken for conducting a techno-economic feasibility study for appraisal of the scheme.





Sanction of Bank Loan and its Disbursement

After ensuring technical feasibility and economic viability, the scheme is sanctioned by the bank. The loan is disbursed in stages against creation of specific assets such as construction of sheds, purchase of equipments and animals. The end use of the loan is verified and constant follow-up is done by the bank.

Lending Terms - General

Unit cost

Each regional office (R.O.) Of NABARD has constituted a State Level Unit Cost Committee under the chairmanship of RO-in-charge and with the members from developmental agencies, commercial banks and cooperative banks to review the unit cost of various investments once in six months. The same is circulated among the banks for their guidance.

Interest Rate

Banks are free to decide the rate of interest within the overall RBI guidelines. However for working out financial viabilility and bankability of the project an assumed rate of interest of 8% p.a can be considered or the rate of interest in vogue for agricultural activities .

Margin Money

NABARD has defined the farmers into three different categories and where subsidy is not available the minimum down payment to be contributed by the beneficiaries are given in the following table.

Category 1- small farmer 05% of the project estimate.

Category 2- medium farmer 10% of the project estimate.

Category 3- large farmer 15 % of the project estimate.


Security

Security will be as per NABARD / RBI guidelines issued from time to time and servicing policies of the concerned bank to which the project is sent for appraisal

Repayment Period of Loan

Repayment period depends upon the gross surplus generated. The loans will be repaid in suitable half yearly / annual installments usually within a period of about 5-6 years with a grace period of one year.




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