CHOUDHRY FARMS
START A PLANTATION
THERE ARE SEVERAL STEPS
A. Financial consideration:
The most important thing is how much are you ready to spend as one time investment.
1.1. To start with you have to have atleast 5 acres of land so that you can go up to some bank and rank for government's 20 or 25% subsidy ( I have not got any subsidy but you may arrange and deal with your areas horticulture officers). Assuming that you can buy 5 Acres land at an approximate rate of 1.5 lacs per acre, it will cost you 7.5 lacs plus registration charges. Anyway this will be an investment for you. You can buy less land also but it may not get approved for govt. subsidy, however you may convince your local banks for a loan since they donot have any such rules.
1.2. Having purchased your own land, now you are a land owner. Owning land is more like owning a lottery throughout your life. You donot know when development will touch your vicinity and the price of your land will go up like anything.
1.3. Now make a project report for the plantation that you are planning to make, go to the bank, and ask for finance by giving the land as security. A small project report is available with me and given here for your use. In case you want to use it , you are free to use the same. You can download this report and modify the details as per your requirement. Keeping in view the inflation , you can change the cost and the revenue in the report as you deem fit.
1.4. Normally bank will ask for 15% to 20% as your margin, the balance project cost will be financed by the banks. Please be very careful with the banks and try to go along with some known person of the bank or some middleman, otherwise they will just drive you away without seeing the project. If you know the bank people or influential then it is all right to go directly. Whatever you do, please maintain documentation of everthing right from beginning.
1.5. If you have already decided to have Govt. subsidy also, then consult your areas horticulture office before going to the bank. Here too deal with them very delicately as mentioned in the above para.
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