Applying for the equity grant is mainly paperwork, and most delays come from missing or uncertified documents. This part lists what the application needs, how the implementing agency checks it, and what the FPO must do within 45 days of receiving the money.
The short version
- Apply on the prescribed form (Annexure I) to your implementing agency, through the CBBO.
- Key documents: CA-certified shareholder list, board resolution, accounts or bank statement, 18-month plan, IDs of signatories.
- The agency checks four things: governance, the business plan, management capability and finances.
- Within 45 days of receiving the grant, issue the extra shares and send a CA-certified list to the agency.
The Application Form
The form in Annexure I asks for the FPO's details, its board, its shareholding and a declaration.
About the FPO
Name, address and contact; registration number and date; a short account of its business; number of shareholders and how many are small, marginal or landless; paid-up capital; grant sought; largest individual holding; bank, account number, branch and IFSC.
About the board
Number of directors and how the board was formed (election or nomination); number of women directors; dates of board meetings in the last year; functional committees and their work; and for each director: role, Aadhaar, DIN, qualifications, tenure, contact and land holding.
About the shares
Number of shareholders, number and face value of shares allotted, and total amount paid. The FPO declares that no member has received the equity grant before.
Source: Annexure I of the Operational Guidelines
Documents to Attach
Six attachments, each page signed by at least two board members; the CBBO verifies them before sending.
Attach to the application
- Shareholder list with each member's share capital, certified by a Chartered Accountant or cooperative auditor (Enclosure I)
- Board resolution to seek the grant, based on the general meeting's decision (Enclosure II)
- Audited accounts certified by a CA for every year of existence; or, if under one financial year old, six months' bank statements authenticated by the branch manager
- Business plan and budget for the next 18 months
- Names, photographs and ID proof (ration card, Aadhaar, voter ID or passport) of the directors authorised to sign
- Every page of the form and documents signed by at least two board members or authorised representatives
The Addendum deleted the separate shareholders' consent form countersigned by the bank manager (Enclosure III). Check with your implementing agency for its current checklist.
Source: Operational Guidelines 11.5; Addendum item 20
What the Agency Checks
A desk appraisal of governance, business plan, management and finances; then sanction, agreement and transfer.
- CBBO verification. The CBBO verifies all documents and sends them to the implementing agency.
- Desk appraisal. The agency checks four aspects: governance, the business and its plan, management capability, and finances. It may ask the NPMA for help and verify claims.
- Sanction. If satisfied, the agency sanctions the grant and requests the funds from DA&FW under its Annual Action Plan.
- Agreement and transfer. The FPO accepts the terms, signs an agreement with the agency, and the money is transferred to the FPO's account.
Source: Operational Guidelines 11.6 to 11.8
The 45-Day Rule
Within 45 days of receiving the grant, issue the extra shares and send the agency a CA-certified list with folio numbers.
Within 45 days of receiving the money, the FPO must issue additional shares to its members equal in value to the grant, and submit to the implementing agency a list of the shares issued, with folio numbers, certified by a Chartered Accountant.
If the FPO misses the deadline or does not inform the agency in time, the grant can be cancelled and recalled under the agreement, and the agency can demand full repayment with damages.
Source: Operational Guidelines 11.9 and 11.10
Check yourself
Tap an answer to see whether you are right, and why.
Who verifies the application documents before they reach the implementing agency?
- The bank
- The CBBO
- The District Collector
The note to clause 11.5 makes the CBBO responsible for verification.
An FPO is eight months old. What financial proof does it attach?
- Three years of audited accounts
- Six months' bank statements authenticated by the branch manager
- Nothing
FPOs under one financial year old attach authenticated bank statements.
What must the FPO send the agency within 45 days of receiving the grant?
- A new business plan
- A CA-certified list of extra shares issued, with folio numbers
- A loan application
Clause 11.9 requires this list.
Remember these things
- Apply on Annexure I through the CBBO.
- Attach the CA-certified shareholder list, resolution, accounts, plan and IDs.
- The agency checks governance, plan, management and finances.
- Issue shares and report within 45 days.
Part 13 explains the credit guarantee: how an FPO can borrow without collateral. For FPOs whose members are also certified under PGS-India, KrushiFlow submits farmer records to the PGS-India portal in bulk.