Uttarakhand Regional Economic Development (RED) Prgramme: A joint venture of GTZ & NABARD

1. What is RED programme?

RED is a joint venture of GTZ & NABARD for the economic development of Uttarakhand state through development of certain pre selected value chains in agro based sectors, improvement in business and investment opportunities for the private sector and promotion of rural MSMEs in the state in Specific Agro–Based Industries.
2. Which sectors are eligible for support under the RED programme ? Seven sectors viz. ■ Medicinal and Aromatic plants (MAP) ■ Spices ■ Vegetables ■ Pulses ■ Dairy ■ Traditional/Non-traditional fibers ■ Agro Processing
3. What will be the form of assistance under the RED programme?
Grant assistance in the form of ✓ seed capital for start-up ventures, or ✓ “Margin money” for existing business to enable them to access bank loans. ■ Grant to be used to create or acquire infrastructure, technical or managerial know-how, inputs like seeds or implements, aggregation or processing of farm produce by value chain intermediaries.
4. To what extent the support will be granted?

■ GTZ grant to be based on merit, to the extent of 30 to 40 percent of project outlay with maximum limit of Rs. 8.00 lakh per project. ■ The selected MSME to arrange the remaining 60 to 70 percent (as the case may be) from either own resources or from bank as loan. (Including NABARD’s support from its own promotional programmes as grant/soft loan/venture capital assistance). ■ NABARD support subject to norms / guidelines under different programmes and policies ■ Agency’s involvement to be 10 to 20% of the project outlay.

5. Which type of projects will be supported under RED programme?

■ Micro/small/medium investment projects targeting to develop or improve agro-based value