Meghalaya Agriculture Response Vehicle Scheme (MARVS)

What is the Meghalaya Agriculture Response Vehicle Scheme?

The Meghalaya Agriculture Response Vehicle Scheme (MARVS) is a State scheme of the Department of Agriculture and Farmers' Welfare, Government of Meghalaya, notified on 15 June 2022 vide notification No. Agri @ 45/2022/1. The scheme puts 200 small commercial vehicles and pickup trucks, each pre-fitted with a GPS device, into service across the Community Development Blocks of the State with 50 per cent financial aid from the Government.

The scheme document opens with the problem it is built for. About 70 per cent of Meghalaya's population depends on agriculture and allied activities, and agriculture contributes about 22 per cent of the State's gross domestic product, yet hilly terrain and heavy rain make transport the binding constraint. Produce such as Lakadong turmeric, ginger, bay leaf, cashew, cinnamon, black pepper, honey, Khasi mandarin, plum, peach, pear, kiwi and strawberry commands a premium in distant markets but rarely reaches them, leaving farmers dependent on traders who own the vehicles.

MARVS answers that with a mobility solution owned by local people. Rather than buying a government fleet, the Department subsidises entrepreneurs and farmer groups to buy vehicles and then holds them to a service obligation for agricultural transport, monitored by GPS.

Stated objectives

• Increase farmer profitability by providing access to market through a mobility solution.
• Give registered farmer associations a vehicle so aggregation and market reach improve.
• Lower transport cost by placing agriculture response vehicles at each CD Block.
• Encourage rural entrepreneurship by helping individuals buy commercial vehicles.

Who was eligible for MARVS?

Individual applicants could apply if:

• They were permanent residents of Meghalaya.
• They were above 18 and below 58 years of age.
• They held a valid commercial driving licence before buying the vehicle from the dealer.
• They could produce a valid government photo ID with address such as Aadhaar, Voter ID or passport.
• They were not a defaulter at any financial institution.

Registered farmer associations could apply if:

• They were legally registered with the Government of Meghalaya; cooperatives, Farmer Producer Companies (FPCs), Farmer Producer Organisations (FPOs) and the like, and could produce an incorporation or registration certificate.
• They were not a defaulter at any financial institution.

You are not eligible and cannot apply if:

• You are under 18 or 58 and above as an individual applicant.
• You are not a permanent resident of Meghalaya.
• You have no commercial driving licence and no intention of obtaining one, since the licence is a stated criterion for individuals.
• You are a defaulter at any bank or financial institution. This bars both individuals and associations.
• You are an unregistered farmers' group. An informal collective without an incorporation or registration certificate does not meet the association route.
• You want the vehicle for general goods transport. The vehicle is tied by contract to agricultural and allied-sector transport, with a minimum monthly running requirement in that use.

How much support does MARVS provide?

MARVS support has two parts.

Down payment support. Total down payment is 50 per cent of the on-road cost of the vehicle. Of that, the Agriculture Department pays 90 per cent and the beneficiary pays 10 per cent. On the scheme document's worked example — a vehicle with an ex-showroom price of Rs 9,05,822, registration of Rs 25,000, insurance of Rs 25,000 and GPS of Rs 10,000, giving an on-road price of Rs 9,65,822. The down payment is Rs 4,82,911, of which the Government pays Rs 4,34,620 and the beneficiary Rs 48,291.

EMI support. The remaining 50 per cent is an auto loan repayable over 5 years. The Department shares the EMI on a tapering scale:

• Months 1 to 6: Government 85 per cent, beneficiary 15 per cent.
• Months 7 to 12: Government 45 per cent, beneficiary 55 per cent.
• Months 13 to 24: Government 35 per cent, beneficiary 65 per cent.
• Months 25 to 60: beneficiary 100 per cent.

Overall EMI support amounts to about 20 per cent of total EMIs payable.

A cap applies. Government support is benchmarked to the listed vehicle models. If a beneficiary chooses a cheaper model, support is 50 per cent of that lower value; if a costlier model, the beneficiary bears the extra cost.

Which vehicles were covered, and how were 200 vehicles distributed?

The scheme document lists twelve approved models in two segments, with beneficiaries free to apply for other variants of the same models.

District-wise allotment of the 200 vehicles: West Garo Hills 44, East Khasi Hills 33, Ri-Bhoi 20, South West Garo Hills 20, East Garo Hills 19, South Garo Hills 14, West Khasi Hills 13, North Garo Hills 12, South West Khasi Hills 11, West Jaintia Hills 10 and East Jaintia Hills 4. The allotment was based on an assessment of agricultural production, block size and market accessibility.

How to apply for the Agriculture Response Vehicle Scheme

The 2022 round is closed, but the procedure below is the notified one and is what any fresh round would follow.

1. Download the application form from the MARVS page on megagriculture.gov.in, Annexure 1 for individuals and Annexure 2 for registered farmer associations. The corrigendum of 29 July 2022 added Khasi and Garo versions alongside English. Physical forms can also be collected from the District Agriculture Office.
2. Fill every field carefully. The individual form asks for current occupation, the top five agriculture, horticulture or animal husbandry products of your area, the number of agriculture collection units in your block, the number of farmers you can serve, the markets in your area, your preferred vehicle model and whether you hold a commercial driving licence.
3. Attach self-attested documents and tick the enclosure boxes on the form. Individuals attach a government photo ID with address, a commercial driving licence, the front page of a savings passbook and a PAN card where applicable. Associations attach an incorporation or registration certificate, GST certificate, PAN and a six-month bank statement where applicable.
4. Submit the completed form with enclosures to the District Agriculture Officer (DAO) or District Horticulture Officer (DHO) of your district, at the Block office. Filled forms and documents could also be uploaded online.
5. Wait for screening. Incomplete applications are rejected outright.
6. Attend verification and, if called, the personal interview.
7. Collect the Letter of Confirmation if selected, then buy the vehicle.

How were applicants selected?

Selection ran in three stages, revised by the 29 July 2022 corrigendum:

1. District Level Screening Committee, headed by the Deputy Commissioner, with the DAO, the DHO and one representative from each bank. It authenticates the submitted documents and carries out physical background verification.
2. State Level Evaluation Committee, chaired by the Commissioner and Secretary, with the Secretary (Agriculture) as vice chairman and the Directors of 1917iTeams, Agriculture and Horticulture plus one bank member.
3. Personal interviews, conducted where the number of evaluated candidates exceeds the vehicle allotment for a CD Block.

Evaluation criteria include primary sector production in the identified area, population involved in the primary sector, secondary activities during the lean season, the existing agriculture value chain, markets for primary sector products, need for agriculture transport vehicles and the applicant's current occupation. Preference is given to applicants who will themselves drive the vehicle.

Selected beneficiaries receive a Letter of Confirmation from the Government of Meghalaya, published on the Department's website with hard copies collectable from Block Nodal Offices. The beneficiary then visits an authorised dealer of choice and produces the Letter of Confirmation at the time of purchase.

What must an ARV owner do after getting the vehicle?

Down payment support is released to the bank branch in favour of the loanee within 30 days of receipt of validation. If the beneficiary fails to procure the vehicle within two months of validation, the money returns to the department account.

EMI support is not automatic. It is paid into the loanee's account only after assessment against six checks:

1. The vehicle is used for transporting agricultural products when demand arises.
2. The driver responds to calls made by the Project Management Unit.
3. A copy of the service receipt book is submitted at the District Agriculture Office every month.
4. The vehicle clocks a minimum of 400 km a month for agricultural transport, as recorded by GPS and the service receipt book.
5. Farmers in the vehicle's area of operation are found satisfied with the service, assessed by government representatives.
6. The vehicle is in good condition per a government representative's inspection.

Each customer must be given a service receipt recording the customer's name and phone number, pickup and destination, the products carried, the quantity and the amount charged. Owners must also attend training programmes when offered.

The Project Management Unit, 1917iTeams, monitors vehicle operation through GPS and routes agriculture transport queries to the nearest available ARV driver. A State Level Monitoring Committee reviews progress quarterly and District Level Coordination Committees monthly.

Why an ARV contract can be terminated

The Government may terminate the contract where the owner fails to meet the Service Level Agreement signed with the Department of Agriculture and Farmers' Welfare, or is found engaged in fraudulent, illegal or criminal activity or in misuse of the vehicle for purposes not permissible by law. On receiving a cancellation notice, the owner must repay the capital and EMI aid paid by the Government for the period of breach. Failure to pay makes the owner a defaulter in the Government's records, which also affects future bank credit.

Help and contacts

• Implementing agency: Department of Agriculture and Farmers' Welfare, Government of Meghalaya.
• State level: Directorate of Agriculture, with the Project Management Unit run by 1917iTeams.
• Coordinating officers: the District Agricultural Officer and District Horticulture Officer of each district. The same offices that receive applications and monthly service receipts.
• Scheme page and forms: megagriculture.gov.in, MARVS page, which hosts the full scheme document, the corrigendum and application forms in English, Khasi and Garo.
• Financing banks: any branch of Meghalaya Rural Bank or Meghalaya Co-Operative Apex Bank.

Applying for MARVS is free. No dealer, agent or intermediary is authorised to charge for a Letter of Confirmation, which is issued only by the Government of Meghalaya and published on the Department's website.