About NEDFi & Its Role in Biodiesel Development

North Eastern Development Finance Corporation Ltd ( NEDFi )

Championing the Entrepreneurial Spirit of the Northeast

North Eastern Development Finance Corporation Ltd. (NEDFi) is a Public Financial Institution and has been promoted by IDBI, ICICI, SIDBI, IFCI, SBI, UTI, LIC, GIC and its subsidiaries. With an authorized share capital of Rs. 500 crores, NEDFi is the premier Development Finance Institution of the North East of India including Sikkim.

NEDFi provides financial assistance to industries, infrastructure and agro-horticultural projects in the North Eastern region. Besides normal financial products like Rupee Term Loans, NEDFi has developed several loan products suited to the needs of the local entrepreneurs of the region. For first generation entrepreneurs, there is the North East Equity Fund, which provides equity support, the Women Entrepreneur Development Scheme provides women entrepreneurs with equity support and soft loans and there are special schemes for jute and handloom and handicraft units. The Micro finance scheme extends financial assistance to the unbanked rural poor through MFIs and NGOs.

A development catalyst, NEDFi through its Techno Economic Development Fund conducts Techno Economic Studies for industries and infrastructure best suited to the region. NEDFi’s R & D Center for Medicinal and Aromatic Plants is the pioneer institution for this sector. The NEDFi Haat, a permanent exhibition place provides a marketing platform for the local artisans of the region. NEDFi maintains a comprehensive databank on its website www.nedfi.com where data on the region is available up to block level. Besides, NEDFi conducts EDPs, Design & Skill Upgradation programs, and sponsors participation of local artisans and craftsperson in local and National level trade fairs.

With branch offices in all the eight states of the North East of India and a representative office at New Delhi, NEDFi’s objective is to achieve all round economic development of the North Eastern region of India.

Schemes and Services:

Project Finance

Rupee Term Loan
North East Equity Fund
Women Enterprises Development Scheme (WEDS)
Jute Enterprises Development Scheme (JEDS)
Scheme for North East Handloom & Handicrafts (SNEHH)
Equipment Finance / Leasing
Working Capital Term Loan
Micro Finance
Finance for Commercial Complex/Wholesale Trade/Transport
Corporate Finance Scheme

Borrowers:

Artisans, NGOs, First Generation Entrepreneurs, Traders/ Wholesellers, Grassroot borrowers, Corporates.

Techno Economic Development Fund (TEDF):

Techno-economic studies for industries and infrastructure best suited to the North Eastern Region
R&D Centre for Medicinal & Aromatic Plants
North East India Regional Databank
North East Databank Quarterly
NEDFi Haat
Design & Skill Upgradation Programmes
New Enterprise Creation Programmes
Participation at IITF, New Delhi (Gold Medal in 2003 and 2005)

A quick view:

Cumulative figures as on 31st March, 06:

Number of Projects assisted: 1154
Cumulative disbursements: Rs.397.60 crore
Cumulative sanctions: Rs.609.25 crore

Micro Finance – Reaching the grassroots ( 31st March, 06) :

Launched in August 1999
Loan sanctioned – Rs.14.61 crore
Loan disbursed – Rs.12.81 crore
NGOs assisted – 301
SHGs covered – 2887
Beneficiaries – 31366
Women beneficiaries – 16409 (52.3%)
ST beneficiaries – 10322 (32.9%)
SC beneficiaries – 3284 ( 10%)
Activities covered – Agriculture, Animal Husbandry, Farm Implements, Auto Vans, Rural Industries etc.

Promotion of Clusters

Cluster development exercise for developing local economy

Milk Village at Sitajakhala, Jagiroad, Assam
One Craft Village at Tripura and another proposed in Meghalaya (Nongkynrih village)
One wood furniture village in being promoted in Manipur
Handloom clusters proposed in Meghalaya (Umden-Marngar, Ri Bhoi District and Garobhada-Ampati, West Garo Hills District)
Banana cluster at Darrangiri (Assam) and Kharkuta (East Garo Hills, Meghalaya)
More clusters are being identified for promotion.

Block Action Plan has been developed for Comprehensive Economic Development at Block Levels:

Dirang in Arunachal Pradesh
Rowta Block in Bodoland Territorial Council (BTC), Assam

Micro Finance – Innovations adopted for reaching the rural masses through:

Village Councils in Nagaland
Young Mizo Association in Mizoram
IFAD promoted SHG Federations
Co-operative Societies
Professor Dinkar Rao of NIBM, Pune and Sri Vijay Mahajan, BASIX, Hyderabad assisting NEDFi in developing and effective Micro Finance Model
Negotiating with other appropriate intermediaries to increase our geographical & numerical coverage under Micro Finance

NEDFi Haat:

A permanent exhibition hall at Ambari, Guwahati to serve as a marketing platform for artisans, cottage and small scale industries from NE region
Created with infrastructure leased from Government of Assam
26 pre-fabricated exhibition stalls with all facilities
Facilitated artisans/craftsmen to get regular orders from bulk buyers.
104 fairs organized with sales turnover of more than Rs. 6 crores
Discussions are on with Govt. of Meghalaya and Nagaland for leased space for setting up NEDFi Haats at Shillong and Kohima/Dimapur

Agri-business Cell:

Set up this year
Shall promote commercial agro-horticulture ventures in NER – like contract farming, mechanized farming, multi cropping etc.
Cluster approach to promote agri-horti sector e.g. Dirang in Arunachal Pradesh has been identified for development of Apple, Kiwi and Aromatic Plants
First round of discussions already held with ITC, Hyderabad for contract farming of Ginger, Pine-apple and Passion fruit etc

North East Data Bank:

Developed a regional data base with comprehensive data up to district level
Partner institution – NEC, NIC

Available on the net at http://databank.nedfi.com

North East Data Bank Quarterly :

A quarterly publication of NEDFi covering the economic issues related to the North East like (i) Power, (ii) Agriculture, (iii) State Finances, (iv) SME sector, (v) Healthcare, (vi) Tea sector (vii) Banking Sector (viii) Education (ix) Micro finance (x) Medicinal and Aromatic Plants (xi) Status & prospects of IT sector in NER and (xii) Border Trade.

TEDF studies:

Techno-economic studies for industries and infrastructure best suited to Northeast India
Resource mapping studies of the North Eastern Region

Total studies initiated 53

Completed 51 and

In progress 2

New Enterprise Creation Programme

Meant for technically qualified / women / unemployed youth
So far around 571 participants have been trained in 23 programmes
30 numbers of units set up by participants who attended the programme
Around 79 trained entrepreneurs were sent to NISIET, Hyderabad to undergo on the job training under “Skill Upgradation Programme”

Design and Skill Upgradation Programme

Providing new designs
Product diversification
Developing new concepts
Upgrading skills of the artisans
Capacity building with better production techniques
Improve productivity
Providing credit linkages

Launched in 2005

Programmes conducted so far: 21

Participants trained : 792

Evolving low interest cost structure for Small Borrowers

NEEF scheme (for first generation entrepreneurs)
- effective interest rate: 9.61% p.a.
WED scheme (for encouraging women entrepreneurship)
- effective interest rate: 7.35% p.a.

In addition, special schemes for cane & bamboo, jute & handloom sector

Micro Finance Scheme
- Wholesale lending to the unbanked poor through NGOs, MFIs
- Interest rate: 9.0% p.a. to NGOs for onward lending

Strategic Alliances:

MoU with SEDF (an IFC facility) for promoting SMEs
MoU with ILFS for development of infrastructure
MoU with SREI International – equipment bank, financial and advisory services
MoU with Technology Information Forecasting and Assessment Council (TIFAC) for comprehensive development of bamboo sector
MoU with Petroleum Conservation Research Association (PCRA) for promoting bio-diesel

CII – NEDFi Initiative:

CII & NEDFi have set up a Marketing Centre for NE Handloom & Handicraft products at Guwahati for comprehensive development of this sector by:

Linking corporate sector with artisans and craftsmen
Creation of a brand name for NE Handloom & Handicraft products – “Art n East”
Institutionalization of the marketing process
Design improvement as per demand from the corporate sector

Other Initiatives:

In the process of setting up a Science and Technology Park in collaboration with DST
Already procured 18 permanent stalls in India Exposition Mart, Greater Noida for showcasing NE products

NEDFi R&D Centre for MAP

NEDFi conceptualized the idea

i) availability of enormous plant resources & scope of converting them into wealth and

ii) out of the results of pilot scale trials conducted in 1999-2001 at two sites viz: Dirang Basti (A.P) & Poilwa village of Paren district in Nagaland besides activities of Ajmal’s R&D Centre at Hojai in Nagaon district (established in 1995).

NEDFi opened R&D Centre on 2nd July 2001with a broad objective:

“ Commercialization of some high value medicinal and aromatic plants in the region”

Starting crops

Based on growing feasibility, market & other factors Patchouli was taken as starting crop for plains & subtropical climatic condition to begin with.
Encouraged by its performance Geranium was added as the second crop for high altitude hilly areas.
For riverine, flood prone and sand-cast, over silted marginal areas vetiver has been introduced as a cash crop as well as soil ameliorant.

Present R&D set up at Khetri

Overwhelming responses & with increasing R&D activities was shifted to Khetri in August 2003 about 40 KM from Dispur towards Nagoan by the side of NH-37.
Developed with following components to promote MAP in the region:
Quality control laboratory
Herbal garden-where 85 species are being maintained
Training centre with a 30 seated farmers hostel and a training / Conference Hall.
Modern nursery
Demonstration plots / trial plots
Boiler fed steam distillation unit for commercial demonstration
A Library
Canteen facility

On going/new programmes

A MoU has been signed with PCRA on 20th October 2005 to work together on Biodiesel promotion in the region.
A pilot study has been taken up wef 1st May 2006 with entrepreneur Shri Kashyap Gogoi the youngest patent owner in NE region on Bio-pesticide against termites & mosquitoes using one fruit & one locally available herb.
The objective of the study is to make the product commercially viable on industrial scale. The main ingredients- Ampheneuron opulentum locally called Bihalongani (a poisonous fern of Polypodiaceae family) & Immature papya fruits (Carica papaya of Caricaceae).

State wise crop prioritization on commercial venture

Involving all the related organisations & line departments 15 crops have been identified for Assam to take on commercial scale. These are Patchouli, Citronella, Lemongrass, vetiver, Sugandhmantri, Agarwood, Sarpagandha, Pippoli, Amlakhi, Hilikha, Bhomora, Arjuna, Stevia, Vanilla and Brahmi.
Package of practices have been finalized and published as Hand Book.
The same exercise will be repeated for other states in phase manner.
Three crops like Lemongrass, Long pepper, Sarpagandha besides patchouli, vetiver & geranium have already introduced in field.

Thrust crops

Patchouli / Vetiver / Lemongrass /Geranium / Long pepper depending on agro-ecological situations.
Artemisia annua - an antimalarial drug plant that performs well under our situations. Initial field studies shows very encouraging result with an average dry leaf production of 20-25 q/ha from single cutting and 30-35 q/ha from two cuttings from unutilized land after harvest of monocropped rice. There is scope of in plains and summer crop in high altitude temperate areas in Arunachal Pradesh, Nagaland, Meghalaya etc which will provide enough herb to run extraction plant throughout the year. Artemisia annua could provide a potential industrial crop of the region..
Agarwood-Aquilaria agallocha-the wood of the God as is known in South East Asia.

Strengthening of R&D Centre

The present manpower :

Director- Dr.D.N.Dutta, M.Sc (Ento), Ph.D
Sr. Scientist- Dr. M.Ahmed,M.Sc (agro),Ph.D,
Sr. Scientist- Dr. P.Gogoi,Taxanomist
Visiting Scientist Dr. K.K.Das, Plant Pathologist,
Jr. Scientist- Shri. Akkas Ali,M.Sc (Agronomy),
Analytical. Chemist-Shri Sushil Kr. Sharma,B.Sc (Chem)
Administrative Officer- Shri Bhaskar Bharali,B.Tech,P.G.Diploma in BM
Field Supervisor-Shri Bharat Phukan, B.Sc (Trained in Tea husbandry, Tissue culture)
15 wage basis supporting staffs (Regular)
Canteen facility

Some ambitious schemes

Obtained recognition of the Lab for undertaking Ph.D programme in Biotechnology and Botany department of Gauhati University.
One DST sheme-STEP-(Science & Technology Entrepreneurial programme) sanctioned and awaiting disbursement.
One sub-centre of R&D Centre is being set up in collaboration with State Govt. and ICAR complex in Tripura.
Similar proposal for Sikkim is under consideration.

R&D Publications

Patchouli (An ideal aromatic crop of commercial importance)-P-96
Commercialization of patchouli – P 137
Aromatic-Medicinal & Bio-diesel- P-195
Hand Book on Medicinal & Aromatic Plants (Package of practices) P-126
Cultivation of Geranium-P24
Quarterly Journal on medicinal and aromatic plants-NEDFi News Letter on MAP
Farm Bulletins on Patchouli, Vetiver and R&D brochures in both English& Assamese

Extension activities

Carrying out field demonstrations, organising workshops, seminars, group discussions, interactive meets with buyers and sellers.
Regular on-campus and off-campus trainings.
Radio and TV programmes on commercialization of MAPs.
Liasoning with line depts-Agri/Horti/Social Forestry/DRDA and programmes like State medicinal Plant Board (SMPB) and National Horticulture Board (NHB), Small Farmers Agri-Business Consotium (SFAC) for the intrest of Growers / Processors etc.

Progress achieved so far

More than 10 tons of patchouli oil has been produced and sold with a current annual production of 5 MT of patchouli oil and 225 ha area under cultivation.
The area is gradually increasing with the increasing demand and price.
30 distillation plants are in operation in the region against patchouli, lemongrass etc. and 40 units for Citronella alone. Out of these NEDFi has financed 5 units.
3 geranium distillation units and one vetiver units are also in operation. NEDFi has financed for 2 units on geranium.

A few successful entrepreneurs

Sri Ranjit Bora- Patchouli & Lemongrass cultivation, Steam distillation.
Prabeen Acharya-Pangeree (Tinsukia)-Cultivation of Patchouli, Lemongrass, Citronella, Vetiver and Steam distillation Undertaken contract farming of patchouli in A.P. Started exporting of Lemongrass oil to European market.
Mr. Tadar Tempo-Baat Village of Papampore district, A.P-Own cultivation as well as contract farming of patchouli and steam distillation and marketing.
Sri Kalyan Saikia- Biswanath Chariali of Sonitpur district-
Cultivation of patchouli, vetiver and lemongrass and distillation.
Sri Aminul Islam Bakshi-Nagaon- Commercial cultivation of Patchouli, Agar - (Aquilaria agallocha) cultivation, Sewali Phool (Nyctanthes-arbor-tristis) and oil extraction and value addition , trading.
Sri Ajit Jain- Bongaigaon-Cultivation & processing of patchouli.
Dr. P.B.Gogoi-Jorhat-Own cultivation and contract farming and distillation of patchouli.
Mr. Dili Solomon-Dimapur, Nagaland-Promoting contract farming and distilling and marketing of patchouli oil.
Mr. K.N.Chophi-Dimapur-Commercial nursery and cultivation of patchouli.
Mr. Bito Lohu, Chumukedema, 7th Mile, Nichughat, Dimapur, Nagaland-Cultivation & Distillation of Patchouli.
Sri Kartic Sena Sinha-Patherkandi of Barak Valley-Undertaken large scale Jatropha cultivation, integrated approach of Horticulture crops and fisheris development on commercial scale.
Shri Dhruba Sarmah & Shri Roful Hoque – Commercial cultivation of citronella, Lemongrass, Jamrosa (C.N.5), Patchouli and contract farming on citronella.

The R&D Effort has been successful in Bringing impact upon the mind of many farmers, entrepreneurs, policy makers etc. For example:

The Agricultural Dept, Govt. of Assam, Land Resource Development dept. of Nagaland, Horticulture Dept of A.P, IFAD Project operating in NE region have undertaken number of schemes on MAPs. Inclusions of MAPs in JFM programme promoting through FDA under Socoal Forestry. However, this is a beginning

Future thrust on MAPs

Setting up of Bio-control laboratory for commercial production of bio-fungicides and pesticides.
Setting up Jatropha & Pongamia oil extraction, esterification plant for production of Biodisel on pilot scale basis.
Setting up one commercial Tissue culture lab with the DST assistance.
Lab scale artemisinin extraction plant.
A pilot scale Fractional column for isolation of derivatives of essential oils.
A consultative service in cultivation, processing, value addition and marketing for the NE region.
Setting up facilities for Agar research.
Agarwood (Aquilaria agallocha) that yields agar oil known as liquid gold and considered as the costliest essential oil possessing immense perfumery and medicinal value. Agarwood the solid product used as incense has no parallel in fragrance. In South East Asia it is called as the wood of the God. The best quality is produced in NE India only. Since it is produced due interaction between host and specific fungi biotechnology has a role to augment yield and quality of the product.

Development of lab facilities is in progress to intensify production of inoculums and standardization of application techniques on standing trees.

Upgrading the extraction technique would be another area.

Role of NEDFi on promotion of Biodiesel:

Commercialization of Jatropha and Pongamia for biodiesel production in the NE region through its R&D Centre for MAP ultimate goal is to establish sustainable business based on plantation, primary processing, value addition etc. on Jatropha and Pongamia.

Present status on biodiesel movement:

An Advisory Committee has been constituted under the Chairmanship of Eminent Scientist Ex. Vice Chancellor of Assam Agricultural University Dr. D.N.Barthakur.
Two Seminars on Biodiesel have been organized from R&D and participated actively in 6 seminars / workshops organized by others in the region.
Motivated entrepreneurs to take up commercial plantations. So far 3 numbers of nurseries and commercial plantations in two sites has been started including one tea garden.
Actively associated with the JFMC programme under State social forestry department where Jatropha plantation is one of the thrust areas.
Associated in formulation of professional course curriculum to be introduced in Industrial Training Institutes in the state along with full scale demonstration of jatropha and pongamia plantation techniques, processing etc.
Undertaken collaborative research programme on mass scale Micro-propagation with Biotechnology Division of IIT, Guwahati.
Initiated Model nurseries with 10 lakh capacity each in two spots under direct supervision of R&D Centre.
Executed a MoU with PCRA, Ministry of Petroleum, GoI for biodiesel promotion jointly in NE India.
Undertaken survey on indigenous Jatropha curcas and Pongamia pinnata species available in the region to find out some elite strains if any with Expert Team trained by NBPGR Scientists, ICAR Complex, Shillong.
Draft Agro-techniques of Jatropha and Pongamia plantation has been formulated.

Future thrust

Development of high yielding varieties suitable for varying situations like hilly areas and wet conditions.
Phase wise area expansion with a target of 20 lakhs hectares in three years
To utilize Jhum Fallows in the hilly areas and to provide quick green coverage in the denudate forest areas.
Soil erosion in the riverine tracts, stabilization of embankments, erosion prone river banks by planting pongamia.
Proper utilization of byproducts like press cake, fruit shells, glycerine etc.
Establishment of sale centres with a declared support price at farmers’ reach.
Standardization of processing at village level with the help of Energy centre, IIT, Guwahati.
Research programme on plantation / byproducts exploration etc. leading to Ph.D degree under Gauhati University.
Introduction of Bee-keeping in the plantation
Dye extraction from pruned leaves and barks.
Value addition of oil cake as organic fertilizer / soil pesticide etc
Introduction of suitable plant species for inter-cropping.