Indian Government is clearly backing protected cultivation. Between higher cost norms from the National
Horticulture Board (NHB) and cheaper credit through the Agriculture Infrastructure Fund (AIF),
farmers now have a straighter path to setting up polyhouses and net houses—with real savings
on capital and interest.
What counts as “protected farming” in this context?
Protected farming includes polyhouses, net houses, and related fertigation/irrigation systems that
let you control micro-climate, pests, nutrition, and water precisely. Projects are typically
financed by a bank (term loan) and supported by credit-linked, back-ended subsidies—released
after installation and verification.
NHB (National Horticulture Board) at a glance: 50% subsidy, with clear cost ceilings
Under NHB’s Development of Commercial Horticulture (credit-linked, back-ended), eligible
protected cultivation projects generally receive subsidy up to 50% of the admissible project cost,
subject to caps notified in NHB’s cost norms. Recent guidelines show protected cultivation cost
norms and overall subsidy limits (including a widely referenced ₹1.12 crore maximum eligible
project cost window in project-mode scenarios).
NOTE: NHB periodically refreshes cost norms and pattern of assistance; use the current PDFs
while preparing your DPR.
What can be part of the project?
Depending on your DPR and current norms, the project can include the structure (poly/net
house), drip/fogging, fertigation units and certain add-on components as admissible under NHB
cost norms (procurement and documentation must follow NHB’s claim guidelines).
Where AIF fits in:
The Agriculture Infrastructure Fund (AIF) is designed to aid all farmers and growers with benefits as follows:
Interest subvention of 3% p.a. on eligible loans up to ₹2 crore per project/location, for up
to 7 years. The loan amount itself can be higher; subvention applies on the first ₹2 crore.
Credit guarantee (CGTMSE) coverage is available up to ₹2 crore, easing collateral
constraints for eligible borrowers.
AIF loans are typically capped around 9% by policy guidance, which narrows down to 6% after interest subsidy subvention.
What we see in the field ?
AIF now covers poly/net-house projects, enabling interest subvention and CGTMSE
coverage—helpful for first-time protected cultivation investors.
Interest cap around 9%, with 3% subvention effectively bringing net rates down
toward ~6% p.a. on the eligible portion.
CGTMSE guarantee up to ₹2 crore with government bearing the guarantee fees under
AIF, easing collateral requirements.
Application basics: upload land records and DPR on the AIF portal; tutorials are
available in English/Hindi; banks evaluate and sanction.
Support from Pioneer: loan tie-ups with leading banks; subsidy assistance; supply &
installation of structures; agronomy and marketing support; guidance on additional
eligible components (e.g., irrigation, mulching, labour sheds) as per norms and DPR.
Building a bank-ready DPR: what lenders like to see
Correct structure specs (span, bay spacing, height, film/mesh specs) mapped to NHB
engineering guidelines.
Capex break-up fully aligned to NHB cost-norm tables (structure, drip/fogging,
fertigation, admissible add-ons).
Cropping plan & cash flows (peak/lean season yields, grade-out, farm-gate prices,
labour cost).
Input strategy that balances productivity and residue safety—a mix of precise chemical
fertilizers with organic manures and live bio-inputs (e.g., Trichoderma) to minimise
produce toxicity and protect soil biology.
Risk controls (IPM, scouting, sticky traps, biologicals, rain/wind risk, insurance if
available).
Marketing plan (contracts, collection centers, grading/packing).
Compliance mistakes to avoid
Changing specs/vendors without a sanctioned DPR revision.
Missing original invoices/BoQs or mixing in non-admissible items under subsidy head.
Skipping on-site photos/geo-tagging where required.
Delaying completion beyond the bank/NHB window.
Ignoring engineering minimums (door/vent layout, anchoring, UV film/mesh GSM) that
inspection teams verify.
Conclusion — How Pioneer Agritech can help you act now
If you’re planning a polyhouse or net house, this is a strong window to move from planning to
execution.
Why Pioneer Agritech Solutions ?
End-to-end execution: DPR drafting to NHB norms, engineering-compliant designs,
supply & installation, documentation, and inspection hand-holding.
Finance navigation: AIF portal support, bank tie-ups, and guidance for eligibility.
Agronomy that maximize yield: Our in-house agronomists (led by our Head of
Agronomy) prescribe a balanced nutrient program—precise chemical fertilizers plus
organic manures —to maximise yield while minimising produce toxicity and keeping soils alive.
Market-driven crop planning: We plan crops as per season and demand, to hit price windows, with IPM and residue-safe practices built in.
