PROJECT PROPOSAL ON ESTABLISHMENT OF SEEDS PROCESSING AND STORAGE UNIT BY KARNATAKA STATE SEEDS CORPORATION LIMITED, BANGALORE AND UNIVERSITY OF AGRICULTURAL SCIENCES, BANGALORE & DHARWAD:

India has accomplished food freedom through Green Revolution promoting significant change from food scarcity (50 million tons in 1974) to food security (> 210 million tons) in recent year with a significant contribution from the farmers, Scientists, Agriculture extension works,  input agencies and the policy makers of the country.    This transformation is not an end and it is essential to continue the process and improve on quantity and quality of food production through use of good quality seeds and adopting environmental friendly farming practices.

The human resources base in the country is one of its greatest core competencies.  It is strength.  If we can train an unskilled farmers, if we can impart better skills to a skilled farmers and if we create a more challenging environment for the educated, as well as build avenues for economic activity in agriculture, and service sectors, these farmers will not only meet the targets but excel them.   India's transformation from food scarcity to food prosperity is an example for the same and Hybrid Seeds production adoption in the country further strengthens the above hypothesis. 

The emerging new technologies in life Sciences;  Biotechnology, the available Biodiversity, adoption and utilization will cause transformation in agriculture, food security, Exports, Agro processing resulting in prosperity of all people and their continued Health and well-being.

The landmark achievement in Agriculture in 1960's and 1970's were the results of a combination of inputs,  like introduction of high yielding input responsive varieties, increased fertilizer use, expansion of irrigation facilities, extension efforts, improved from practices and above all ingenuity and industry of the Indian farmers.   However, the growth of Agriculture has not kept peace with the rapid growth of the population and has stagnated.   The National Food Security, Nutritional Security and Economic Development demand a very focused and determined approach to raise productivity and production in Agriculture. 

Karnataka State with diverse agro-climatic conditions and irrigation potential from different rivers has unique feature of growing majority of the field and Horticultural crops to achieve nutritional security of the population.   The favourable Agro climatic conditions and availability of skilled farmers provide an opportunity to strengthen the Seeds Industry   existing  in Karnataka and also great potential to attract National and International Companies to take up seeds production in Karnataka.  Identifying this Govt. of Karnataka has declared Karnataka as Global Seeds destination for seeds production and at present Ranebennur, Haveri and Koppal Districts have been Internationally recognised for seeds production of Hybrids, Vegetable seeds and flower crops.  

National and State Vision:

The Hon'ble Prime Minister of India on 18th October 2006 with a focus statement on rural Development has stated as follows:

• "There is a need for fundamentally new perspectives on rural development and agriculture."

PROPOSAL FOR CREATION OF POST HARVEST INFRASTRUCTURE IN KARNATAKA TO INCREASE AGRICULTURE AND HORTICULTURE EXPORTS

BACKGROUND 

Agriculture is a way of life for our people. In material terms, it provides sustenance for the vast majority of our population and accounts for a substantial portion of our national produce. The progress and prosperity of an agrarian economy like India is solely depend on the progress and prosperity of its agriculture and horticulture sector. Even now, much of our industry depends on agriculture & horticulture for its raw material, exports emanate directly or otherwise from the agriculture and horticulture and the growth of rural incomes will constitute an expanding market for the domestic industry.  

Karnataka State is predominantly an agriculture state. 24% of the total GDP is derived from agriculture sector.  66% of the workforce is dependent on agriculture. 70% of the State’s population is still living in rural areas and are completely depending on agriculture for their livelihood. As such, if at all if the State has to prosper and progress economically, it is possible only through agriculture. The State has varied topographical situations ranging from the narrow coastal plains abutting the high ranges of Western Ghats which give place of gently sloping eastern plains. The greater part of the state lies between 450 to 900 mtrs above the seal level, the elevation exceeding 1800 mtrs in Western Ghats.  The state has geographical area of 190.5 lakh ha (1.92 lakh square km) and is eighth largest state in the country. Total cultivable area is 123.07 lakh ha (7% of the total cultivable area in the country), which contributes about 24% to GSDP. The state contributes about 5% to National Food Grain Production. The state has 10 Agro-Climatic zones with rich crop diversity and 5 major soil types. The state has 75% of small and marginal farmers and the average size of land holding being 1.63 ha. 

The area under cultivation of agriculture crops is estimated at 113.62 lakh ha which is 87% of the total cultivated area. The details are as under :- 

 The area under horticulture crops is estimated at 15.599 lakh ha and the annual production is estimated at 103.928 lakh Mts.  The total area under cultivation of fruits in the State is about 3.14 lakh ha and estimated production is about 46.41 lakh Mts. 

#          Figures of area in hectares & production in tonnes

THE POTENTIAL

The state has vast untapped potential in the agriculture and horticulture sector for its value addition and exports in order to get the farmers a fair value for the produce. The following table illustrates the agro-horti export potential of the State.

AGRICULTURE / HORTICULTURE EXPORTS FROM KARNATAKA

PROBLEMS BEING FACED

1.      Low productivity per unit area.

Eg:-   1.          PRODUCTIVITY OF ONION

          COUNTRY                   PRODUCTIVITY PER HA.

          CHINA                                     61.76 MTS.

          AUSTRALIA                         44.51 MTS.

          USA                                         42.96 MTS.

          INDIA                                     10.62 MTS.

          2.          PRODUCTIVITY OF CABBAGE

          WORLD AVERAGE           24093 KGS.

          UZBEKISTAN                       72083 KGS.

          INDIA                                     18261 KGS.

          3.          PRODUCTIVITY OF TOMATO

          WORLD AVERAGE           28343 KGS.

          NETHERLANDS                           46667 KGS.

          INDIA                                     15143 KGS.

          4.          PRODUCTIVITY OF PULSES

          WORLD AVERAGE           837 KGS.

          IRELAND                               4524 KGS.

          INDIA                                     584 KGS.

2.          Subdivision and fragmented land holdings because of which mechanized cultivation is not possible.  Average land holding is 1.63 hectares. 

3.          Unorganised and weak domestic market base. 

4.          Inadequate post-harvest infrastructure facilities like procurement centres, grading, washing, waxing, packing units, refrigerated transport, pre-cooling, cold storages, intermediate cold storages, processing units and an export house. 

5.      High interest rates being charged on the finance advanced for the agriculture and horticulture sector. 

6.      Lack of quality and sufficient power in rural areas.

HONOURABLE PM’s VISIT – A BOON TO KARNATAKA 

A joint review of the agriculture sector of Karnataka was carried out on 3^rd August 2007 at Bangalore by The Hon’ble Prime Minister, Hon’ble Agriculture Minister, Hon’ble Chief Minister of Karnataka, Deputy Chairman & Member, Planning Commission identified the key thrust areas for the rejuvenation of the sector in the State to achieve the objectives set forth in the National Development Council Resolution of the 29^th May 2007.  While reaffirming the commitment of the State to achieve 4.5% annual growth in agriculture sector in the State during the XI Five Year Plan period, KARNATAKA RESOLUTION was passed. 

While reviewing the sector the Hon’ble Prime Minister has stressed the urgent need for the creation of post harvest infrastructure facilities in the state in order to add value to farmers’ produce, increase shelf life, reduce wastage, increase exports – all leads to better income to farmers and valuable foreign exchange to the nation’s exchequer. After the detailed deliberation and discussions some of the resolutions were made. One among them is “to harness the potential of horticulture produce for export of grapes, pomegranate, lime etc through cold chain facility and post harvest infrastructure at Bijapur and creation of similar facilities in other potential pockets in the State. The subject was also discussed in the National Development Council (NDC) meeting and the resolution was passed to this effect.  

Even the State’s recent AGRICULTURE POLICY OF KARNATAKA – 2006 also highlights the necessity of creating post harvest infrastructure and processing facilities for the produce grown by the farmers.

THE PROPOSAL 

In order to exploit the potential in the interest of the State in general and farmers in particular, the State has given special emphasis and thrust for the creation of post harvest infrastructure facilities in the State through the State owned organization, Karnataka State Agricultural Produce Processing and Export Corporation Limited (KAPPEC) which is 100% Government owned corporation established in 1996 and engaged in the farmer welfare activities.

As suggested by the Hon’ble Prime Minister and in line with the Karnataka Resolution, KAPPEC has already created a state of the art Integrated Cold Chain Complex consisting of a receiving hall, pack house, pre-cooling unit, cold storage, container bay, material handling equipments, laboratory and allied equipments and facilities at Bijapur for the export of Fresh Grapes, Pomegranates, Lime and other horticulture produce from Bijapur, Bagalkot and surrounding areas. The total financial outlay of the facility is Rs.300 Lakhs. Already the facility is being used by the leading fresh produce exporters like Field Fresh Foods Pvt. Ltd., Seven Star Fruits Pvt. Ltd., for their export of fresh grapes and pomegranates to Europe and Middle East.

A joint review of the Agriculture sector of Karnataka on 3rd August, 2007 at Bangalore by the Hon'ble Prime Minister, Hon'ble Agriculture Minister, Hon'ble Chief Minister of Karnataka, Deputy Chairman and Members, Planning Commission identified the key thrust areas for the rejuvenation of the sector in the State to achieve the objectives set forth in the National Development Council Resolution of the 29th May 2007.  While reaffirming the commitment of the State to achieve 4.5 percent annual growth in agriculture sector in the State during the XI Five Year Plan period have adopted 18 Resolutions.  Out of 18 Resolutions the following three Resolutions were pertained to Seeds Activities:

Resolution No.9: "Accord the highest priority to seeds production and make special efforts to bridge the gap between seeds requirement and seeds production / availability in the State.  Further, particular focus will be on Paddy seeds and pulses like arhar, Urad, Moong and gram and oilseeds like groundnut, soyabean and sesame(til)."

Resolution No.10: "The State government would publicize at its level encouragement to private sector seeds companies to avail benefits under the Central Sector Scheme of "Assistance for boosting of seeds production in private sector" with the assistance from National Seeds Corporation."

Resolution No.11: "Set up more seeds testing laboratories besides the existing 4 Seeds testing laboratories in different regions of the State and a DNA fingerprinting laboratory in view of increasing are under Bt.Cotton in the State."

KARNATAKA  STATE

The Karnataka State is the 8th largest State in the Country having an area of 1.91 lakh Sq.Mts and has been endowed with various Agro Economical conditions suitable for cultivation of almost all plant species existing on this Planet Earth.  For a broader understanding the Karnataka Agro Ecological Regions have been divided into 10 sub-regions with rainfall pattern varying from 450mm (Chitradurga-Central Dry Zone) to 4695 mm (Udupi-SK & UK Coastal Zone).

The size of the State Land holding of the farmers in Karnataka is about 1.74 Ha. with a total cultivable area of 1,23,07,416 Ha held by 70,79,388 farmers as per the Agriculture Census 2000-01.  Now, this land has been further sub-divided and further land holding size reduced consequent to increased population and urbanization.  It is estimated that 73% of the farmers are holding the land less than two Ha. and it is about 35% of the cultivated area.  The 27% of the farmers are holding 66% of the cultivated area and if we further analyze 1.26% of the farmers are holding 13.27 lakh Ha. amounting to 10.78% of the cultivated area. 75% are SF/MF holdings. Average size of holding has decreased to 1.63 ha. from 3.20 ha. (70-71). It is less than the economic size of 2.56 ha.

The land holding pattern as per the State Census are as follows:

Karnataka is the first State to come out with "Farmer Centric"  New Agriculture Policy in the Country based on PANCHASUTRHRA which is in tune with the NDC Resolution-2007.

PANCHASUTHRA :

1. Protect and improve the soil health.

2. Conservation of natural resources, with special emphasis on water & micro

     irrigation.

3. Timely availability of credit and other inputs to the farmers.

4. Integrate post harvest processing with the production process.

5. Reduce the distance between "Lab to Land" in transfer of technology.

The Karnataka Agriculture Policy Mission has came into force with the following objectives:

• Aims to double agriculture production in 10 years, and at the same time enable the State to become a significant player in the global agriculture market by increasing production, effecting higher efficiency and great value addition to the farm produce.
• Aims at restoring faith and pride in farming.
• Sets out a framework for agricultural production which not only takes care of feeding millions of mouths in the coming years but also treats mother earth with great care and caution.

Seeds is a vital input and primary cause for increasing the production and productivity through proper response to the management practices to the use of good quality seeds, application of fertilizers, Pest Management Programme and other agronomical practices including post harvesting technology.

The Karnataka State Government initiated action on NDC Resolution and providing  75% subsidy on Quality seeds for SF/MF in order to improve seeds replacement rate, which in turn would help to reduce yield gaps between potential yield and actual yield and promote increased productivity.  The following Strategies are contemplated under XI Plan.

v     Yield improvement measures to achieve higher production with 4% growth rate in cereals and 10% in pulses & Oilseeds.

v     Enhance availability of Certified seeds to attain at least 40% SRR and increase cropping Intensity to 130%.

With the massive efforts from Govt. of India and Govt. of Karnataka and on implementation of organized Seeds Programmes, the number of seeds producing and operating Companies increased from 07 Companies to 160 Companies in Karnataka.  The seeds replacement rate in seeds crops particularly in varieties remains unsatisfactory and there is a clear gap and need to increase usage of quality seeds in these seeds.  As per the present replacement rate the estimated seeds requirement of the State for the year 2007-08 is about 8.80 lakh qtls at present sale price valuing at Rs.510/- Crores but Certified Seeds sales is about 3.34 lakh qtls and balance is Truthfully Labelled seeds.  Consequent to genetic combinations the Hybrids are generally replaced in about 90 to95% of the cases  for every crop, every year and in case of high yielding varieties it differ from crop to crop ranging from once in 3 years to 10 years or continued use of farmer saved seeds.  However, the productivity levels of different crops are below the All India average in majority of the crops with some exceptions.

The estimated seeds replacement rate in following important field crops as estimated by Karnataka State Department of Agriculture for the year 2006-07 are as follows with overall seeds replacement rate of about 20% which is contemplated  to be enhanced to 40% in next 10 years.  This demands building additional processing and storage facility and also seeds handling and distribution mechanism.  The present and estimated seeds replacement rates are as follows:

With the above seeds replacement targets for normal crop sowing areas the Seeds Production and availability will have to be increased from 8.16 lakh Qtls to 15.69 lakh Qtls. The contemplated increase in seeds replacement rate and estimated seeds requirement for accomplishing targeted SRR are shown at Annexure-1.  In this process it is also assumed that some percentage of area under varieties may be converted to Hybrid and the above contemplated seeds replacement rate may differ from crop to crop over a period of time based on the introduction of New Hybrids and New varieties of seeds including Bt. products considering new changes and developments in life sciences and Bio-technology.  Further rainfall and Agro climatic conditions may also influence the cropping proportion.

With the use of improved seeds, Hybrids and Bt. products and environmental friendly agricultural packages the yield gap between potential yield and present Field yield obtained by farmers can be bridge and expected improvement are shown in    Annexure-2.

The crop productivity can be enhanced upto about 15 to 20% by using quality seeds alone.  Therefore, availability of good quality seeds of superior varieties/ hybrids needs to be ensured to farmers for boosting the agricultural production.  The quality attributes of seeds are -

o       Properly cleaned and graded seeds

o       Higher germination and vigour

o       Genetically and physically pure.

o       Free from disease and weed seeds

o       Uniform crops stand

o       High yielding and good marketing value.

APPROACH

In the joint review meeting of the Agriculture Sector of Karnataka on 3rd August 2007 at Bangalore in the presence of Hon'ble Prime Minister the following Resolutions were accepted in respect of Seeds Processing:

Ø      "The Certified Seeds production which is now around 20%, needs to be increased to 40% in the next 10 years."

Ø      "Rs.50 Crore is required towards incentives to Certified Seeds Producers for seeds production in 50000 acres. Funding Pattern 90:10 @ of Rs.10 Crore per annum."

Ø      "It is required to set up 12 seeds processing units at a cost of Rs.18 Crore. (Rs.1.5 Crore per seeds processing unit.)"

In Karnataka the proposed actions are being implemented in co-ordination with Karnataka State Seeds Corporation with a support of University of Agricultural Sciences, Bangalore and Dharwad.  The Certified Seeds and Foundation Seeds Production are mainly produced and marketed by Karnataka State Seeds Corporation and preceding chain of Parents seeds of Hybrids and  Breeder Seeds are expected to be produced and marketed by University of Agricultural Sciences including Breeding and Development of New Hybrids and varieties including Bt. products. 

KARNATAKA STATE SEEDS CORPORATION LTD (K.S.S.C.)

KARNATAKA STATE SEEDS CORPORATION LIMITED(K.S.S.C.) is a Government Company registered under Companies Act, 1956 for the purpose of dealing with the most vital input 'SEEDS' for the benefit of the farmers of the State. The Objective of the Company is  "To emerge as an industry leader in the State, in seeds line of activity, with a continuous pursuance of excellence in quality and effective distribution service, with an eye on right product, right time, right price, right place of supply."   The Share Capital of the Company is invested by Government of Karnataka, Government of India through National Seeds Corporation and the Seeds Growers in proportion of 35:30:35 respectively and accordingly, the Board has been represented by Four(4) Directors from each of the participants.  There are about 10,000 Seeds Grower shareholders participating in the Seeds Production Programme of the Company.  The high lights of impressive track record of growth of the Company and sales performance of the Company for the last 5 years are as follows:

IMPRESSIVE TRACK RECORD OF GROWTH:

1.     Sales turnover of the Corporation was 12,090 quintals with value turnover of Rs.58.40 lakhs during the year 1978-79 and now grown to 2,37,474 quintals with value of turnover of Rs. 7220.46  lakhs during the year 2005-2006.

2.     The product range of the Company is wide with 29 crops and 88 varieties.

3.     Commenced with 3 Seeds Processing Units and now grown to 20 seeds processing units with constant technology upgradation.

4.     Built 8 own seeds godowns with storage capacity of 6,000 MTs.  

5.     Built 200 MTs capacity Dehumidified Air Conditioned seeds storage.

6.     Constructed Head Quarters Complex during 1987-88.

7.     Grown from 13 operational locations at the inception to 37 locations now.

8.     Employee strength grown from 100 to 307.

9.     Holds 35% market share of Certified Seeds in the State.

10. Skilled Seeds producing growers grown from   1000   to 9290.

11. The Corporation is playing Pivotal role of establishing Benchmark for procurement and Sale prices in Seeds Industry in Karnataka .

12. The Corporation has established a specialised Vegetable Seeds Processing Unit at Chickballapur.

13. The Corporation is a participant in National Seeds Bank programme.

 SALES PERFORMANCE OF COMPANY FOR LAST 5 YEARS ARE AS FOLLOWS:  

                                                                            Rs. in lakhs

UNIVERSITY OF AGRICULTURAL SCIENCES, DHARWAD AT A GLANCE:

The University of Agricultural Sciences, Dharwad was established during 1986 to serve the farming community of Northern Karnataka. The University has multi-fold functions of teaching, research, extension and seeds production in the field of agricultural and allied sciences. The University of Agricultural Sciences, Dharwad covers 52% of the geographical, 56% of total cultivated and 32% of the irrigated area in the State, spreading across 12 districts of Northern Karnataka. A number of agricultural, horticultural and plantation crops represent the rich heritage of the area. There are five major irrigation projects, viz., Tungabhadra, Upper Krishna, Malaprabha, Ghataprabha and Karanja, which provide irrigation to about 15 lakhs ha, accounting for 27 per cent of the total cultivated area. The region is endowed with wide diversity in climate, soils and crops. Out of 10 agro climatic zones in Karnataka, the University covers six agro-climatic zones, viz., North Eastern Transitional Zone, North Eastern Dry Zone, Northern Dry Zone, Northern Transitional Zone, Hilly Zone and Coastal Zone.

PATH BREAKING RESEARCH OF UNIVERSITY OF AGRICULTURAL SCIENCES, DHARWAD.

• Release of cotton hybrids and coloured cotton varieties has revoulationalised the cotton industries.
• Developed Bt. Cotton Hybrids.
• Released Hybrids of Jowar for both Kharif & Rabi season.
• Released high yielding groundnut varieties.
• Achieved high success in quality seeds production programme with a production of 1.5 lakhs quintal seeds.

UNIVERSITY OF AGRICULTURAL SCIENCES, BANGALORE AT A GLANCE

 The University of Agricultural Sciences, Bangalore in Karnataka was established in 1964 with an operational jurisdiction of the entire State.  This was bifurcated into two Agricultural Universities viz., UAS, Bangalore and UAS, Dharwad through an amendment of Act in 1986.  Further, from 1.4.2005 a new Karnataka Veterinary Animal and Fisheries Science University was established at Bidar. Presently, the UAS, Bangalore has 21 research stations spread over in six agro-climatic zones in the jurisdiction of 17 Southern districts of Karnataka comprising of nearly 50 per cent of the total area of the State.

Mandate

·        University has the mandate for making provision to impart education in different branches of study particularly Agriculture.

·        To provide solution to the problem of Agriculture and allied fields of the farming community through continuous research and production & supply of breeders’ and quality seeds.

·        Undertakes extension of such sciences to the rural people of the state.

 The mission of the University of Agricultural Sciences, Bangalore is to strive ahead and provide leadership in teaching, research and extension education services related to agriculture and allied sciences.

Over the years, the university has kept pace with new frontiers of science and contemporary developments to be technically and socially relevant.  University is strongly committed in absorbing newer paradigms and using them to develop excellent human resource, innovative technologies and their dissemination so as to serve the farming community of the state and the country.

PATH BREAKING RESEARCH OF UNIVERSITY OF AGRICULTURAL SCIENCES, BANGALORE.

• First to release Hybrid Sunflower and Hybrid Rice in the country.
• Release of Hybrid Maize "Nithyashree" - superior to all other public and private hybrids in performance.
• Poineers in the Watershed Development and secured 3 National Productivity Council Awards.
• National recognition in millets and leadership in dry land agriculture, bio-fuel cultivation, organic farming, medicinal & aromatic crops.
• Transgenic seeds for biotic & abiotic stress-finger millet, paddy, groundnut, redgram, cotton and Tomato.
• Development of bio-vaccines.

GAPS IN INFRASTRUCTURE:

The state is geared to play its part along with the Karnataka State Seeds Corporation and two Agriculture Universities along with participation of Public, Private National & International Companies.  However, there are certain critical issues which are impinging on production and productivity, which require intervention and assistance from the Union Government.

 PROPOSAL

Consequent to actions initiated to improve the Certified Seeds Production now with around 20% SRR to 40% SRR in the next 10 years with incentive to the Certified Seeds producers would mean doubling additional seeds production and handling which  requires increased infrastructure facilities.

In order to strengthen the infrastructure facilities for Seeds Processing and Seeds storage it is proposed  to set up 12 Seeds Processing Units by Karnataka State Seeds Corporation at a cost of Rs.18 Crore (Approximately at Rs.1.50 Crore per Seeds Processing unit.) for processing, Seeds Treatment, Seeds Testing,  Certification of Certified and Foundation Seeds.   Also 2 processing Units each by UAS, Bangalore and Dharwad.  Each Processing Unit is of 20,000 Qtls capacity thus, the additional capacity of the Processing Unit would be 3.60  lakh qtls.  This excluding Cotton, Groundnut and Vegetable seeds is expected to meet the requirement of additional seeds production contemplated under the project along with existing available processing capacity in the State.  The creation of additional infrastructure facility for handling groundnut and cotton would need additional financial assistance.   

The additional installation of Groundnut processing Plant would cost additional cost of Rs.10.00 lakhs and installation of Vegetable Seeds Processing Unit would be Rs.20.00 lakhs wherever installed.  The installation of cotton ginning and delinting facility would cost additional Rs.200.00 lakhs.

PLACE OF SETTING OF PROCESSING UNITS BY KARNATAKA STATE SEEDS CORPORATION LIMITED:

 The University of Agricultural Sciences, Dharwar and Bangalore would set up two processing Units each for Processing, Seeds Treatment, Seeds Testing of parental line of Hybrids and Breeder Seeds. 

PLACE OF SETTING OF PROCESSING UNITS BY UAS, BANGALORE:

I. ARS, Gulbarga

II. RARS, Bijapur

PLACE OF SETTING OF PROCESSING UNITS BY UAS,  DHARWAD:

I. Mandya

II. Honnavile

PLAN AND ESTIMATION FOR SEEDS PROCESSING UNITS:

The Modal Layout Plan for proposed infrastructure Development and estimated cost for building and machineries for Seeds Processing Units are enclosed at Annexure-3 & 4.  This Layout may differ from place to place depending on availability of land and its size and shape and also the crops/ varieties produced in each of the Districts.  Each Seeds Processing Unit are estimated to be installed at a cost of Rs.1.50 Crore.

ESTIMATED COST AND REQUIRED FINANCIAL ASSISTANCE:

The total estimated project cost is Rs.24.00 Crores and the financial assistance Macro-mode / Work plan wherein Govt. of India would provide financial assistance of 90% of the Project cost and 10% would be contributed by Govt. of Karnataka.  The Project is contemplated to be completed in two years, so as to enhance Seeds Production activity thereby ensuring increased productivity of Agriculture crops as contemplated in the Joint Review Meeting held in the presence of Hon'ble Prime Minister.

 The existing Units of Karnataka State Seeds Corporation Ltd., are shown at Annexure-5 and proposed Seeds Processing Units are shown at Annexure-6.  Proposed Seeds Processing Units of University of Agricultural Sciences, Bangalore and Dharwad are shown at Annexure-7.   

COST ESCALATION:  The time delay in sanction and implementation of project may result in cost escalation of about 10% every year. 

ANNEXURE – 3 

MODAL LAYOUT PLAN OF SEEDS PROCESSING UNIT

ANNEXURE-4

BUDGET REQUIREMENT FOR ESTABLISHMENT OF ULTRA MODERN SEEDS

PROCESSING AND STORAGE UNIT

ANNEXURE - 2

AVERAGE YIELD OF IMPROVED VARIETIES / HYBRIDS AND PRESENT PRODUCTIVITY OF DIFFERENT CROPS IN KARNATAKA