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CityGreens Hydroponics

NHB Subsidy for Polyhouses: Rates, Eligibility and How the Money Reaches You

Latest Update: NHB has suspended new applications for Grant of Clearance from 8 Oct 2026, until further orders (circular NHB/HD/CC/Guidelines/2026-27/174).

From the order 

"NHB has suspended new applications for Grant of Clearance on its portal from 8 October 2026, until further orders, to manage its existing subsidy commitments. Applications already under process continue, subject to funds. Under the current rules, NHB pays a credit-linked, back-ended subsidy of 35% of the eligible project cost (45% in North-Eastern, Himalayan and other special areas), once per family — and family now includes your parents." 
Source: NHB News & Announcements

NHB protected-cultivation subsidy at a glance

Parameter

 Current rule

 Scheme status New applications suspended from 8 Oct 2026, until further orders. Applications already under process continue, subject to funds.
 Subsidy rate — general states 35% of eligible project cost, calculated on NHB cost norms
 Subsidy rate — NER & Himalayan states, Scheduled Areas, specified UTs 45% of eligible project cost
 Maximum subsidy per project ₹1 crore
 Minimum project size 4,000 sq m (about 1 acre)
 Type of subsidy Credit-linked and back-ended — a bank term loan is mandatory
 How many times Once per family, across all NHB schemes and components
 "Family" means Applicant, spouse, father, mother, sons and daughters
 Lock-in before subsidy adjusts against the loan 36 months
 Land cost Not counted in the eligible project cost
Voluntary exit
 Allowed by refunding the subsidy with applicable interest
  Realistic subsidy on actual spend ~25–30% — CityGreens project experience, not an NHB figure

Sources: National Horticulture Board public circular NHB/HD/CC/Guidelines/2026-27/174, dated 8 October 2026 (suspension of new applications);
NHB public circular NHB/CC/Guidelines/2026-27/2101, dated 21 August 2026 (amendment in the scheme guidelines of commercial horticulture and cold storage schemes) 
NHB News & Announcements.

Is NHB accepting new subsidy applications?

Suspended - No. New applications for Grant of Clearance are suspended from 8 October 2026, until further orders.


  • New applicants: you cannot apply on the NHB portal until it reopens.
  • Already applied: not affected. Your application continues under the scheme guidelines, subject to availability of funds.
  • Not a closure: NHB says the schemes are not withdrawn. It will review the position and may reopen, subject to funds.
  • Reopening: will be announced on NHB's News & Announcements page.


Why: NHB says its pending subsidy commitments and claims are high compared with this year's budget. Earlier, on 4 September 2026, NHB had temporarily suspended fresh applications for Grant of Clearance under Scheme No. 1 and Scheme No. 2.


Source: NHB public circular NHB/HD/CC/Guidelines/2026-27/174, 8 October 2026, and NHB notice of 4 September 2026 — NHB News & Announcements.

What changed in the NHB subsidy in August 2026?

1. Rate cut from 50% to 35%

45% in NER and Himalayan states, Scheduled Areas and specified UTs (Andaman & Nicobar, Lakshadweep, Jammu & Kashmir, Ladakh).

2. Parents now count as family

Family is now you, your spouse, father, mother, sons and daughters. Siblings share parents, so a brother's or sister's subsidy is read as blocking yours. NHB has not clarified this yet.

3. Only once

No top-ups later. Claim ₹20 lakh on a small project and you cannot claim again.

4. No stacking

One project, one land, one subsidy. You declare this when you apply.

5. Excluded groups

Politicians, serving government staff, retired pensioners on ₹10,000+ a month and groups of farmers cannot apply. Their family members may still avail one-time assistance. Full list below.

6. Firms and companies count within the family


Only one family member can avail assistance — individually, through an HUF, a partnership or proprietorship firm, or as a company director. Members of an FPO, FPC or company that has already availed assistance may apply once as individuals, subject to the family rule.

7. Voluntary exit

You can refund the subsidy with interest and leave the scheme.

Also: land cost no longer counts, a signed eligibility declaration is required, wrong payments are recovered with interest, and pending applications are reviewed case by case.

Video published September 2026. Figures on this page supersede the video where they differ. The video does not cover the suspension of new applications from 8 Oct 2026.

Who is eligible for the NHB polyhouse subsidy — and who is now excluded?

Your project qualifies if it is at least 4,000 sq m under a protected structure on agricultural land (not an indoor vertical farm), grows a listed crop, and is financed by a bank term loan.

Who can apply?

Individual farmers, FPOs / FPCs, Partnership & proprietary firms, Companies, SHGs, Cooperatives and NGOs.

Eligible crops

Capsicum, Cucumber, Tomato, Rose, Lilium, Chrysanthemum, Carnation, Gerbera, Orchid and Anthurium.

Who cannot apply?

Constitutional post holders, Ministers & Ministers of State, MPs, MLAs, MLCs, Mayors & district panchayat chairs, Serving central / state govt employees*, PSU, autonomous & local-body employees, Retired pensioners on ₹10,000+/month* and Groups of farmers

*Except MTS, Class-IV and Group-D employees. Family members of people in these categories may avail one-time assistance, subject to the family rule.

NHB, NHM or MIDH — which scheme are you actually applying under?

MIDH is the umbrella programme: it sets the rules but pays no subsidy itself. Subsidy comes from NHM (run with states) or NHB (run centrally). This guide covers NHB.
  NHB (commercial horticulture) NHM (state-run, under MIDH)
NHM (state-run, under MIDH) National Horticulture Board (Central)  Centre and state horticulture departments
 Project sizeMinimum 4,000 sq m; no upper area limit  Up to 4,000 sq m (about 1 acre)
 Processing Single central process, generally faster District-wise targets, first come first served; can be put on hold; can take up to 18 months

How does the NHB subsidy money reach you?


Never as cash. It goes to your bank, first cuts your interest, and only after 36 months cuts your loan.

  1. Bank term loan

    The bank appraises your DPR and sanctions the loan. No loan, no subsidy.

  2. Grant of Clearance (GoC)

    NHB checks the loan and documents and issues the GoC. New applications are suspended since 8 Oct 2026.

  3. Build

    Construct as per your DPR and application.

  4. Joint inspection

    The bank, horticulture department and NHB verify the finished project.

  5. Subsidy goes into a Subsidy Reserve Fund Account (SRFA)

    The bank holds it and stops charging interest on that amount.

  6. Loan closure

    Your EMIs repay your share. The SRFA then clears the rest — no earlier than 36 months.

Example: ₹70 lakh loan, ₹30 lakh subsidy. Once the ₹30 lakh is in the SRFA, you pay interest on ₹40 lakh, not ₹70 lakh. Your EMIs repay your ₹40 lakh; the ₹30 lakh clears the rest — not before 36 months, even if you want to prepay.

How much NHB subsidy will you actually get?


NHB pays the lowest of three numbers: your bank loan, 35% of project cost on NHB cost norms, and NHB's ceiling for your area. Cost norms lag today's prices, so the real subsidy is lower than 35%.

Worked example: ₹1 crore, 1-acre polyhouse (illustrative)
 What NHB compares Loan of ₹10 lakh Loan of ₹30 lakh
 Sanctioned bank loan ₹10 L ₹30 L
35% of project cost (within cost norms)  ₹35 L ₹35 L
 NHB ceiling for 1 acre (illustrative) ₹20 L ₹20 L
Subsidy paid — the lowest of the three  ₹10 L (10%) ₹20 L (20%)

The ₹20 lakh ceiling only illustrates the calculation; it is not an NHB figure.

When can the government take the subsidy back?


Until the SRFA clears your loan, the subsidy is not yours. A wrong declaration can be recovered at any time.

Wrong declaration

If anything you declared is false — family, exclusion group, other schemes — NHB can recover the subsidy with interest, even years later.

Loan becomes an NPA

If EMIs stop and the loan turns non-performing, the SRFA money goes back to NHB.

Abandoning the project

Abandoning within the 36-month lock-in makes you ineligible.

Changing crop

Switching between eligible crops needs no approval, only written intimation.

What should you expect when applications reopen?

Tighter terms, not better ones. NHB raised the ceiling to ₹1 crore per project, but cut the rate and made the subsidy once per family. It wants larger, viable projects: the full ₹1 crore needs roughly 5 acres from day one. Expect more support to move to credit-linked help like the Agriculture Infrastructure Fund (3% interest subvention on loans up to ₹2 crore).

Our rule of thumb: build only if the project works without the subsidy. After four or five years, the farm has to stand on its own.

Common questions about the NHB subsidy

What should you expect when applications reopen?

Tighter terms, not better ones. NHB raised the ceiling to ₹1 crore per project, but cut the rate and made the subsidy once per family. It wants larger, viable projects: the full ₹1 crore needs roughly 5 acres from day one. Expect more support to move to credit-linked help like the Agriculture Infrastructure Fund (3% interest subvention on loans up to ₹2 crore).

I have already applied. Is my application affected by the suspension?

No. The suspension applies only to new applications. Applications and projects already received or under process continue under the scheme guidelines, subject to availability of funds and other conditions. Subsidy release has always depended on available funds, and NHB has many pending claims this year.

Has the NHB subsidy been reduced in 2026?

Yes. Amendments notified on 21 August 2026 cut NHB's protected-cultivation subsidy from 50% to 35% of the eligible project cost in general-category states, and to 45% in NER and Himalayan states, Scheduled Areas and specified UTs. New applications are assessed at the revised rates, and pending applications are being reviewed case by case under the amended rules.

If my brother or sister took NHB subsidy, can I still apply?

Probably not. Family now includes parents, so a sibling's subsidy is treated as availed by your common parents and, through them, by you. NHB has not issued a specific clarification on siblings, but this is how the rule is currently read. Check with NHB before spending on a DPR.

Can I combine NHB subsidy with a state or NHM subsidy for the same polyhouse?

No. The rule is one project, one land, one subsidy. You must declare that no other scheme has funded the project, so a state or NHM subsidy on the same polyhouse rules out NHB assistance. A false declaration can be recovered with interest at any time.

Does NHB subsidy apply to hydroponic or cocopeat systems?

Yes, if the project is under a protected structure on agricultural land and grows a crop on NHB's list. The growing method — soil, cocopeat, Dutch bucket or NFT — does not decide eligibility. Some hydroponic components may not carry their own cost norm, so plan the subsidy component by component.

My father gets a government pension. Can I claim NHB subsidy?

Yes, once. Retired pensioners with a monthly pension of ₹10,000 or more cannot apply themselves, but NHB's 21 August 2026 circular allows their family members one-time assistance, subject to the family rule. Since only one member of a family can avail assistance, check that no one else in your family already has.

Can I exit the scheme and return the subsidy?

Yes. The August 2026 amendment allows a voluntary exit during the lock-in period. You refund the subsidy with applicable interest, subject to NHB's conditions. This helps if the project proves unviable or you want to sell it, because it closes your obligations to NHB cleanly.

Changelog

  • 16 Oct 2026NHB suspended new applications for Grant of Clearance from 8 Oct 2026 (circular NHB/HD/CC/Guidelines/2026-27/174). Added scheme status, a new section, two questions, and the earlier 4 Sep 2026 suspension under Schemes 1 and 2.
  • 07 Oct 2026Page published with the revised August 2026 rate, family definition and exclusion list.

Not sure where to start?

Start with what you know. We will figure out the rest.

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