C. 4 Finance Management

1. The implementation of the MACP will be by three line departments and autonomous bodies.

  • The  three  line  departments  are  the  Dept.  of  Co-operation  &  Marketing,  the  Dept.  of Agriculture, and the Dept. of Animal Husbandry. The Dept. of Co-operation and Marketing is the Nodal Department.
  • The autonomous bodies involved are viz.:

(i) MSAMB – Maharashtra State Agricultural Marketing Board (under Dept. of Co-op. & Mktg.)

(ii)  MSWC – Maharashtra State Warehousing Corporation (under Dept. of Co- op. & Mktg.).

(iii) ATMAs – Agricultural Technology Management Agency, one  in each of 33 districts (under Dept. of Agriculture).

(iv) Other Training Institutions: VANAMATI and ( under Dept. of Agriculture), NIPHT (under MSAMB)

Funds Flow:

2.   The entire funds flow structure is clearly documented below and depicted in Charts I to IV at the end of this chapter. It explains how funds will flow from the GOM, to the concerned line departments, PCU and PIU in MSAMB and MSWC.

3.   Funds from the World Bank will be made available to the Government of Maharashtra through the GoI under the standard terms of on-lending between GoI and the States. The Bank will provide an initial advance, which will be transferred to GoM.   The advance will initially be around US$ 5.00 million, and every quarter this balance will be replenished to the extent of amount spent out of this advance as evidenced by the consolidated quarterly Interim Unaudited Financial Reports (IUFRs) furnished by the PCU to the Bank in pre-agreed formats. The basis of preparation of these quarterly IUFRs will be the project accounts. The Bank will finance  90 percent   of  the   project   expenditures   excluding   beneficiary   contribution   under   a   single disbursement category comprising works, goods, consultants’ services, training, and operating costs. The balance 10.% will be borne by the Govt. of Maharashtra.

The  Government  of  Maharashtra  will  pass  on  the  funds  (both  Bank  finance  and