A Model Bankable Scheme for Setting Up of

Export Oriented Ornamental Fish Breeding Units

The Marine Products Export Development Authority

(Ministry of Commerce and Industry, Government of India)
MPEDA House, Panampilly Avenue
Kochi – 682 036 India.
Tel: +91-484-2311979 Fax: +91- 484 - 2313361/ 2314467
Email: mpeda@mpeda.nic.in
Website: http://www.mpeda.com
 CONTENTS

S. No. Title Page

1. Introduction 1

2. Ornamental fish trade 2

3. Technology 3

4. The scheme for promoting export 4

oriented ornamental fish production

5. Potential 5

6. Ornamental fish breeding unit 6

7. Breeding and culture of ornamental fishes 7

8. Salient aspects for successful production 10

of ornamental fish

9. Water quality parameters 10

10. Profile of entrepreneur 11

11. Details of costs 11

12. Income estimated 12

13. Viability of the project 13

14. Lending norms 14

Annexure-1: Details of MPEDA Financial

Assistance Scheme
Annexure-2: Viability Analysis
1. Introduction

Keeping colourful and fancy fishes, popularly known as ornamental fishes,

aquarium fishes, or live jewels is one of the oldest and most popular hobbies of
the world. The hobby of keeping fish in aquarium has become the second most
popular hobby after photography in the developed countries such as USA. With
the increase in demand for ornamental fishes especially in USA, Europe and
Japan, many countries in Asia have started capturing and culturing beautifully
coloured ornamental fishes. The FAO estimates that nearly 60% of the
international trade in ornamental fish originates from developing countries mainly
from Asia. More and more fishes have been domesticated and popularised for
business purposes. Not only the attractiveness and colour, but also the rarity is
important in an export market. The top exporting country is Singapore followed
by Hong Kong, Malaysia, Thailand, Philippines, Sri Lanka, Taiwan, Indonesia
and India. The largest importer of ornamental fish is USA followed by Europe and
Japan. China and South Africa are the emerging markets of ornamental fish
trade.

The wholesale value of the global ornamental fish trade is estimated to be US $ 1

Billion while the retail value is US $ 6 Billion. The entire industry, including
accessories and fish feed, is estimated to be worth more than US $14 Billion.
More than 2,500 species are traded globally and some 30-35 species of fresh
water fish dominate in the international market.

The Indian ornamental fish sector is a small but vibrant segment, with potential
for tremendous growth and large-scale gainful employment generation. At
present the ornamental fish export from India is dominated by the wild caught
species, which cater to a small portion of the global market. India’s contribution to
global ornamental fish trade is negligible. The country is bestowed with climatic
conditions ideally conducive for growth, maturation and breeding of many exotic
as well as indigenous ornamental fishes. Our rich and diverse agro-ecosystem is
gifted with 164153 km of rivers and canals, 1.9 million ha reservoirs, 2.0 million
ha tanks and ponds, 1.5 million ha beels and oxbow lakes and 1.4 million ha
brackish waters.

Table 2. Evolution of Export Value (In 1000 US $) of Top 10 Exporting Countries

(Adapted From FAO, 2006.)
In 2004
2000 2001 2002 2003 2004 Contribution
Ranking
(%)
Singapore 43502 41581 41460 41427 49528 1 19.8
Czech Republic 10273 11272 13353 16183 19540 2 7.8
Japan 8458 7693 8332 12395 18495 3 7.4
Malaysia 8219 10583 17559 14147 18361 4 7.3
Indonesia 12841 13722 12648 13372 13389 6 5.3
 Israel 5399 5540 5603 8525 10790 7 4.3
Thailand 2446 3370 5245 7392 9864 8 3.9
USA 8289 7045 8381 8561 8664 9 3.5
Sri Lanka 7714 5944 5527 6459 7385 10 2.9
Philippines 6737 6497 6439 6729 7346 11 2.9
Colombia 3162 3636 4284 4599 7272 12 2.9
Hong Kong 14774 5213 4785 4871 4686 14 1.9
China 2155 2019 2166 3025 3279 19 1.3
Peru 4753 9776 6439 3102 2967 20 1.2
Brazil 3235 3226 3250 2379 2664 21 1.1
Taiwan 1584 1713 1844 2073 2235 22 0.9
India 824 1285 1363 2369 1360 26 0.008
Total exports 174,638 175,102 183,032 211,195 250,749 100.0
1
Total exports include Spain which is probably misreporting, In 2004, Spain reported exports of US$ 18 million.

In spite of these advantages Indian ornamental fish sector is yet to be tapped for
its potential. Development of the sector requires strategies involving sustainable
exploitation of the existing natural resources and breeding of native and exotic
varieties under controlled conditions. Presently the industry is not organised and
the earning potential of the sector is not being exploited in a technology driven
manner in harmony with nature.

2. Ornamental fish trade

2.1. International trade

The steady increase in both exports Total imports Total exports

and imports of international 350.00
ornamental fish trade since the mid
300.00
80’s was followed by a decline
Value ( US$ million )

during 1998 to 2001(Figure-1). The 250.00

decline during 90’s was reversed 200.00

since the millennium. In 2000, the 150.00

imported value of ornamental fish 100.00

was valued at around US $ 245
50.00
million and has increased at an
average of 2.5% per year in last 0.00
1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

decade (Figure-1). Assuming an

annual increase of 3 and 5 % global
ornamental fish import value is Figure-1: Global trends in ornamental fish
expected to cross US$ 285 and 313 imports and reports. Source: adapted from FAO,
2006.
million respectively. Although
reported exports were significantly lower, annual increase is notably higher.

Major importers contributing to global import trade of ornamental fishes from

Asian region are EU (UK, Germany, France, Netherlands, Belgium and Italy),

2
USA and Japan. Asia (Singapore, Malaysia, Indonesia, Thailand, Sri Lanka,
Philippines, Hong Kong and China) leads as the largest global exporter of
ornamental fishes with a contribution of 55 %.

2.2. Domestic trade

The domestic market for ornamental fish is evolving at a fast rate. The major
markets are metropolitan cities, larger cities and small town in all the states of
India including North East India. The marketing chain comprises breeder, whole
salers and retailers.

2.3. Export trade related regulations and issues

In recent years, the ornamental industry, especially in Europe is being

increasingly regulated and influenced by public perceptions of the hobby.
Regulations impacting on the importation of ornamental fish and trade mainly
relate to fish health, animal welfare, transport phyto-sanitation of aquatic plants,
and sustainable resource management

Fish health is one of the key regulations governing the trade through the recently
updated Aquaculture Health Directive of EU. This Directive refers to the animal
health status and certification requirements for imports of tropical and cold-water
fish for ornamental purpose. This EU directive implements to the OIE (Office
International des Epizooties) guidelines and requires compliance by all EU
members and their trading partners, including third countries.

The above Directive is also linked to the new transport regulations on the
protection of live animals during transport and related operations. This Directive
requires EU and third countries to comply with strict rules governing treatment,
handling, welfare and health status of animals including fish to be transported

The imports of genetically modified organisms into the EU are also regulated by
European Directive, governing the release and marketing of Genetically Modified
Organisms (GMOs) in the European Union. Import of GMOs is currently banned
in EU and Singapore but trading is allowed in countries such the USA and China.
The green/ eco trend is coming up in other leading importers such as US.

3. Technology

At present in India, hundreds of exotic and indigenous ornamental fish varieties

are being bred under captive condition. Majority of the production goes to
domestic market and any quality standards for production are yet to be
implemented. The effort to develop breeding technology for some of the high
value indigenous species such as Puntius denisonii is underway.

The following is a generalised production cycle of ornamental fishes:-

3
 Maturation 2 weeks

1st
month
Breeding 2 weeks

Larval
3-4 weeks 2nd month
rearing

Grow- 45-60 3rd & 4 th

out days months

Conditioning

4th
7-15 days
month

Sales

The breeding cycle given above is suitable for majority of the live bearers and
egg layers. But this may not be the case with some high value species like
Arowana, Discuss, which normally takes more than a year to reach the
commercial size.

4. The scheme for promoting export oriented ornamental fish

production

Ornamental fish breeding is an attractive activity, which requires skill and

attention. Business potentials are enormous considering the large number of
species involved, the ever-growing global trade and domestic demand. The real
opportunity lies in its value addition through selective breeding and genetic
manipulations resulting in development of new attractive colour strains and
ornamental characters.

4
Government of India has identified ornamental fish sector as one of the thrust
areas for generating employment opportunities and augmenting our foreign
exchange earnings. Govt. of India has sanctioned a scheme for the development
of export oriented ornamental fish industry in India. As per the MPEDA scheme
the beneficiaries will be selected after comprehensive evaluation. The
beneficiaries will be given a financial assistance up to 7.5 lakhs (50% of
investment) on completing the construction of farm as per the guidelines of the
Scheme.

For the effective implementation the beneficiaries will be graded in to 3

categories based on the level of investment and details of the grading is as
follows -

Grade-1 units are micro scale units set up in a cluster comprising a minimum of
10 units. The maximum assistance per unit in the cluster of 10 will be Rs. 75000/-
or 50 % of the capital cost which ever is less.

Grade-2 units are small-scale ornamental fish breeding units, which can be set
up as individual units. The maximum assistance will be Rs. 2 lakhs or 50 % of the
capital cost which ever is less.

Grde-3 units are larger individual multi-species ornamental fish breeding units
breeding high value ornamental fishes. The maximum assistance will be Rs. 7.5
lakhs or 50 % of the capital cost which ever is less.

The selected beneficiaries will be trained on various aspects of ornamental fish

breeding and successful completion of training will be one of the criteria for
providing the financial assistance.

Ornamental Fish Marketing Societies: Apart from the breeding units, in order
to develop effective marketing of ornamental fishes produced, financial
assistance will be provided to set up Ornamental Fish Marketing Societies
(OFMS) by breeders / entrepreneurs and will be registered as per the guidelines
prescribed by MPEDA. OFMS can avail maximum financial assistance of Rs. 5
lakhs subject to conditions.

The details of items/heads eligible for financial assistance are given in Annexure-
1.

5. Potential
Assuming the Global market for ornamental fish to grow at the rate of 6% per
annum, the demand is likely to reach US $ 7.0 Billion in a period of 5 years. India
is presently a marginal player in the Global trade, but it is possible to raise our
share to the level of 10% in the next 15 years.

5
6. Ornamental fish breeding unit

6.1. Site selection

Site should be located in a flood free area having of continuous supply of good
quality water. The water source can be dug or tube wells, ponds and rivers
having required water quality parameters. Accessibility by road, rail and air is a
prime requisite for transportation of broodstock/ other raw materials as well as to
move the produce (live fish) to domestic/ international markets. Apart from these,
uninterrupted power supply is essential for water pumping, aeration, lighting/
other machineries.

A thorough survey of the site as well as strong considerations on the engineering

aspects are inevitable for the larger volume water holding structures as well as
building.

6.2. Setting up of Ornamental fish breeding units

General outline of an ornamental fish breeding unit consists of components such

as (a) maturation/ brood stock development, (b) breeding cum hatching, (c) larval
rearing and (d) grow-out sub-sections. All these sections will have provisions for
continuous supply of unpolluted water and air. Apart from these associated sub-
sections such as live feed production section, water-quality testing laboratory
cum chemical store, disease treatment cum quarantine section, packaging cum
sales section and feed preparation cum storage section are associated to the
breeding units.

Species such as guppies, mollies, sword tails, angelfishes etc. can be matured,
bred and grown up in glass aquaria and small cement tanks, where as
goldfishes, barbs and many of the cichlids require a minimum water volume of
1000 liters and requires larger cement tanks. Earthen ponds of larger capacities
are also used for grow out purpose. Apart from cement tanks, breeding and
grow out of catfishes and carp varieties, require earthen ponds having a
minimum water volume of 10 to 20 m3. Earthen ponds lined with plastic sheets
are commonly used as breeding/ holding tanks for ornamental fishes. But the
possibility of getting holes and strength loss associated with sunlight exposure
are some of the problems associated with lined ponds.

Generally one species is stocked in one tank/ pond but a number of compatible
species can be stocked in one tank/ pond. The number of tanks/ ponds/ aquaria
required depends on the variety of species bred. However a total
tank/pond/aquaria capacity of 30,000 litres is considered sufficient for a small-
scale model.

6
7. Breeding and culture of ornamental fishes

The fishes reproduce by fertilization of eggs from which young ones emerge. The
critical aspects of breeding are-

• Maturity and condition of fish

• Environmental condition
• Fertilisation rate and hatchability of eggs
• Larval and post larval feeding and rearing

The method of breeding is based on the family characteristics of the fish.

Depending on the species, fishes are classified as live-bearers, where they give
birth to young ones where as egg layers release eggs outside the body and
where it get fertilized and develop.

Fishes such as guppies, mollies, platys and sword tails are the common live
bearers and produce only few numbers of offsprings in comparison to egg layers
though their breeding is relatively easy. Hundreds of varieties of live-bearers are
traded in the market, the popular among them being Guppy, Black molly, Platy
and Sword tail.

Among egg layers, fishes such as goldfish stick their eggs to some substratum,
where as tiger barbs are egg scaterers. Many of the African cichlids are egg
layers and do parental care by mouth brooding of fertilized eggs. Cichlids such
as Betas produce floating bubble nests on to which the eggs are fertilized eggs
attached. Brooders are selected from standing crop or are purchased and
reared. The fecundity of the live-bearers range from few to even 300 babies,
where as most of the egg layers will produce 500-1000 eggs per spawning.

A beginner should start by breeding live-bearers followed by easy to breed egg

layers such as goldfish, angel fish etc. Guppy is the simplest to start with since it
tolerates greater variation in water quality and accepts all types of foods. Among
egg layers the popular ones are Gold fish, Barbs, Bettas, Tetras, Angelfish and
Gourami. A sound knowledge on the biology, feeding behaviour and the
requirement of ambient conditions of the fish are prerequisites for undertaking
breeding and culture.

7.1. Induced breeding

As in the case of food fishes ornamental fishes also can be induced to breed
using hormones such HCG, LH-RH, SG-100 etc. to induce ovulation and release
of eggs. Groups of fish can be spawned together in circular tanks, where a
circular flow pattern is developed. Eggs are collected from the overflow with a
fine-meshed net. An optional method is to hand-strip eggs and sperm from the
fish, using the dry method.

7
7.2. Larval rearing

The new borne larvae of livebearers are transferred to larger glass aquaria/
cement tanks with aged water. In the case of egg-layers such as gold fish and koi
carp, the fertilized eggs can be hatched in aquaria/ hatching tanks with adequate
aeration and water exchange. Temperature is the most critical factor affecting the
egg development and hatching as well as for the growth and metamorphosis of
the larvae. Generally, at 28-30 °C, the eggs will hatch in about 24 -48 hours time.
Similarly in mouth brooding cichlids the mouth of parent fish is examined for
hatched out fry, and the fry are further transferred to larval rearing tanks.

Many larvae in the egg layers group are extremely small at hatching, and survival
rate is often very low in the first days of their lives. The situation can be improved
by providing adequate quantities of live foods (rotifers and daphnia).

7.3. Grow out

Brooder fishes collected from wild or sourced from farmers is bred in captivity
and the young ones produced are reared for a period of 3 to 4 months to reach
the marketable size. It is assumed that 3 production cycles can be taken in a
year for many of the live bearers and egg layers.

7.4. Feeding
The maturation of ornamental fishes requires feeding with high quality diet
ensuring adequate supply of nutrients for sexual maturation and production of
superior quality young ones with higher survival. Generally fresh feeds of animal
origin (fish and shrimp meat) or live feeds (blood-worms, polycahaets,
chironomid larvae etc.) are fed to brood fishes. The larval fishes are mainly fed
with live feeds such as daphnia, infusoria, rotifer, and artemia nauplii where as
juvenile fishes are fed with boiled egg yolk, tubifex worms etc. Daphnia is
collected from ponds during early morning hours and fed to the fish in the
morning. Daphnia is an ideal feed for larval and juvenile fishes. Dried block of
Tubifex worms is available in market can be used for juveniles, and preferred for
its ease of storage, handling and acceptance. Feeding is generally done twice a
day - morning and evening, for post-juveniles and adults. The larvae are fed ad-
libitum by assuring adequate quantity of live feed in the rearing water. The
juvenile fishes also feed on mosquito larvae. In addition to the natural feeds,
supplementary feed consisting of oil cake, rice bran and fishmeal prepared in the
farm shall also be used as per requirement. Production of fish feed, brood stock
diet and larval diet needs special attention. Formulated feeds imported as well as
locally produced for shrimps/ carps are also fed to the fishes.

8
7.5. Culling

The fishes from the grow-out are periodically culled for the desired characteristics
and graded for the size. During this process, the stunted, diseased and weak
fishes are discarded. The grading will help assuring size uniformity of saleable
fishes.

7.6. Marketing

Marketable size fishes are sold to traders or their agents who repack them and
sent to markets either national or international. The marketing channel for the
domestic trade is given below.

Retailer
s
Middle men/
Breeders Wholesalers
Exporter
s
Fishes from far of places will reach Kolkota, Chennai and Mumbai by air or even
by rail, which will be further exported, to EU, USA and Japan.

Ornamental fishes are live animals and needs utmost care during handling and
packaging to avoid mortality. Similarly fishes needs to be conditioned prior to
transportation to trade destinations from the breeders’ point, to eliminate
transportation associated stress, disease and death. As per the IATA
(International Air Transport Association) regulations, ornamental fishes comes
under the category of “Perishable Commodity” and therefore transportation
associated storage for longer period is limited.

To avoid the issues stated above, strong market linkages between buyers and
sellers as well as domestic and international markets are essential. In order to
strengthen India’s position in international ornamental fish trade, MPEDA
envisages various strategies to enhance country’s capabilities in terms of
technology and infrastructure and to develop export demand based production
for major importers in EU, USA and Japan. Further the thrust will be given on
quality improvement in terms of disease free/ healthy and developing superior
genetic strains.

7.7. Pricing

From the prevailing price patterns of ornamental fishes, it is possible to attract an

average general price tag of Rs. 5 per fish produced. However for the bankability
purpose a conservative price tag of Rs. 2.5 to 3 has been taken (Annexure-1).

9
8. Salient aspects for successful production of ornamental fish

1. Suitable training for the entrepreneur or any other person associated

with the project and facilities for consultation of an expert.
2. Selection of suitable species based on water quality of the area. All
live-bearers generally prefer hard water- alkaline. Egg layers like
Goldfish, Gourami, Danios, catfishes, Rosy barbs, Fighters etc can
tolerate a wide range of water conditions. Species like Angel, Discus,
Tetras, Oscar, Loaches etc prefers soft- acidic water.
3. Bio-filtration unit is a pre-requisite for smooth functioning of a unit.
4. The brood stock selected for breeding should be of superior quality so
that good quality fish seed could be produced. Brood stock needs to be
replenished every two years. Fresh stock from a different source may
be added in every two years to the selected parent stocks to improve
breeding efficiency and production of healthy offspring.
5. The fish breeder should concentrate on few species so that it helps
them to develop expertise on the particular species and good variety of
fishes can be produced as per market demand.
6. In addition to exotic varieties, if an entrepreneur can breed indigenous
varieties; it can fetch good price in the International market.
7. The unit should be set up in an area having reliable supply of water
and electricity. It shall be ideal to set up the units near streams, since it
can receive plenty of non- polluted water and the rearing unit can be
made flow- through.
8. Availability of agro- based byproducts will facilitate preparation of
pelletised diet for the fish. A mini pelletiser can be installed for this
purpose.
9. All new incoming fishes should be quarantined from resident stock.
Movement of fishes should be restricted from a suspected or unknown
disease status area.
10. A few quarantine tanks should be constructed little away from the unit
so that a proper observation can be made on health aspects. If any
abnormal behaviour is observed in any of the culture tanks, the fishes
should be isolated immediately.
11. The entrepreneur should always ensure to keep in touch with recent
developments in the field and attend training and exposure visits.
12. The breeders should develop market relations with pet/ retail shops,
potential farmers, vendors dealing with ornamental fish, marketing
networks etc to facilitate the process of selling/ procuring new brood
stocks.

9. Water quality parameters

The degree of hardness of water has several biological effects on aquatic life.
Hard water containing bicarbonates tend to prevent a solution from changing in
acidity. Soft water lacking this protection may become acidic when carbon

10
dioxide is present, and this change causes stress on the organisms. But in the
case of soft water species and sensitive naked cells like egg and milt, excess
hardness causes problems in absorbing substances through its delicate
membranes. Hence soft water has been found to play a vital role in successful
reproduction of many species of ornamental fishes and for purpose of fish
breeding a soft solution is desirable.

To maintain soft water, all sources of calcium carbonate such as calcareous

rocks, gravels, corals, broken shell and algae must be kept out of the aquarium
system. Some of the important water quality parameters and their optimum
ranges for aquarium fish are given below.

Temperature 24 to 28 degrees C
pH 7.0 to 8.5
Carbon di oxide <10 ppm
Alkalinity 75 to 120 ppm as CaCO3
Hardness 60 to 100 ppm as CaCO3
Dissolved Oxygen 6.0 to 8.0 ppm
Free Ammonia < 0.05 ppm
Ionized Ammonia < 0.4 ppm

10. Profile of entrepreneur

The project is being implemented by Shri.

_____________________________who has _____ years of experience in
culture of food fishes. The entrepreneur has ______ acres of own land in which
there is pond area of _____ acres. The ponds are presently being used for
culture of food fishes. Encouraged by the returns derived from culture of food
fishes and the experience gained, Shri. _______________________has decided
to take up breeding of ornamental fish in his existing ponds. Shri.
____________________ shall be employing a person who has knowledge of
breeding ornamental fish and has undergone adequate training on breeding
technology.

The entrepreneur will start with easy to breed fishes like livebearers and egg
layers. Once sufficient experience is gained and a suitable market is established
with wholesalers/ exporters, breeding of more price and most sought after
varieties will be taken up.

11. Details of costs

11.1. Capital Costs

No Item Quantity Rate (Rs) Amount (Rs)

1 Cost of shed sq ft 400 Annexure-2

11
 2 Cement cisterns litres 2
3 Netting for top surface of LS "
tanks
4 Hand nets
5 Glass tanks 5.5
6 Electrical fittings and LS
generator
7 Motor and water pump LS "
8 Life saving equipments LS
9 Air pump, tubings and fittings LS
10 Water supply facilities LS "
11 Water filtration system LS "
(Biological filter)
TOTAL

11.2. Recurring Costs (in Rs., Per Year)

No. Item Grade-1 Grade-2 Grade-3

1. Purchase of broodstock 10000 25000 60000
2. Feed cost 7500 36500 54500
3. Management costs 30000 90000 150000
4. Packing and transport 5000 10000 25000
5. Power charges 7500 15000 40000
6. Miscellaneous exp 5000 10000 25000
(chemicals, medicines)
7. TOTAL 65000 186500 354500

12. Income estimated

12.1. Production per cycle (3 months)

Breeding unit No. of Young ones Total young No. Surviving

broodstock produced per ones after 2 months
? ? ? brooder produced (@ 50%)
Live bearers (guppies, molly, platy and sword tail)
Grade-1 1300 325 10 13000 6500
Grade-2 3640 910 10 36400 18200
Grade-3 10733 2683 10 107328 53644

12
 Egg layers (goldfish, bw ~ 75 g)
Grade1- 10 20 2000 13000 6500
Grade-2 27 54 2000 36400 18200
Grade-3 80 160 2000 107288 53644

12.2. Benefits

Average Average Average Averag Average

Production No. of Production e Rate Income per
per cycle cycles/ per year (Rs per year
year piece)
Grade-1 6500 9 58500 2.50 146250

Grade-2 18200 9 163800 2.50 409500

Grade-3 53664 9 482976 2.50 1207440

13. Viability of the project

The cash flow analysis presented in Annexure-1is based on general assumptions

and various items of cost and benefit are market related. Recurring costs have
been assumed to be escalating by 10% every fourth year. Generally the
production of young ones shows a gradual increase over the years as the
breeder gains experience in breeding technology. The price of young ones also
increases as the markets develops and stabilises. Considering these factors, the
annual income from sale of young ones has been assumed to be increasing by a
modest 10% every fourth year. As can be seen in the annexure, the project
generates benefits from the first year itself although the net benefit for first year
shows negative figures since it is assumed that only one production cycle is
obtained during first year. The production is expected to stabilise from second
year onwards and yield the full benefits.

The viability analysis of the project gives the following results.

NET PRESENT BENEFIT COST INTERNAL RATE

WORTH (NPW) RATIO (BCR) OF RETURN (%
IRR)
Grade-1 92611 1.29 53
Grade-2 210813 1.22 44
Grade-3 833110 1.32 45

13
14. Lending norms

14.1. Unit Cost (in Rs., at unit sale price of Rs. 2.50)

Capital Total Total interest Total Unit

production for for 5 yrs recurring cost
5 yrs. (No. of cost for 5
fish) yrs
Grade-1 150000 256608 57488 292500 1.94
Grade-2 448000 720720 171281 861750 2.05
Grade-3 1766000 2125094 612911 1617750 1.88

14.2. Bank loan and margin money

Out of the total financial outlay, up to 25 percent shall be contributed by the
entrepreneur as margin money and the balance can be financed by banks. Any
subsidy available from MPEDA or other agencies shall be reckoned against
margin money.

14.3. Interest Rate and Security

Interest rate on bank loan and security for the loan will be as per RBI guidelines
issued from time to time.

14.4. Repayment period of loan and grace period

The project generates sufficient income from second year onwards to cover the
debt-servicing burden and leaves reasonable net surplus to the entrepreneur,
and hence can be taken up as a primary source of income for the borrower. Net
income during the first year will be negative since all fixed costs are incurred
during the beginning of project and income is generated out of only one operating
cycle. Hence grace period of one year may be allowed during which payment of
principal and interest is not required. The repayment period of the loan has been
fixed at 5 years.

14
 ANNEXURE-1

FACILITIES ELIGIBLE FOR FINANCIAL ASSISTANCE AND MAXIMUM

RATES ADMISSIBLE FOR EACH FACILITY TO SET UP ORNAMENTAL
FISH MARKETING SOCIETY (OFMS)
No Essential Description Maximum Amount of financial
items rate assistance
admissible
1 Cement Tanks Cement tanks including Rs.2 per liter 50% of estimated cost subject
reservoirs and overhead water holding to a maximum of Rs. 30,000/-
water tanks.
2 Glass Tanks Minimum water holding Rs. 5.5 per 50% of estimated cost subject
capacity 10,000 liters liter water to a maximum of Rs. 60,500/-
holding
capacity
3 Water Supply Motor & Pump, Water 50% of estimated cost subject
items line pipes, hose and its to a maximum of Rs. 5,000/-
fittings
4 Electrical Wiring Materials, 50% of estimated cost subject
Items Lightings and its fixtures, to a maximum of Rs. 37,500/-
Power generator,
Submersible electrical
heaters
5 Water Biological filters, Carbon 50% of estimated cost subject
Treatment filters, UV units, to a maximum of Rs. 37,500/-
Equipments Ozoniser, RO units
6 Building for Only structure with Rs. 400 per 50% of estimated cost subject
housing the cemented, brick walls, square feet. to a maximum of Rs.
tanks asbestos/metal/ RCC 200,000/-
roofs for covering the
aquariums and cement
tanks excluding the
overhead tanks are
eligible.
7 Oxygen Cylinder, 50% of estimated cost subject
Life saving Regulator, Aerator, to a maximum of Rs. 30,000/-
Equipments Compressor/Air blowers,
Shade nets and Netting
for tanks, Hand Nets and
packing machine and
Microscope.
8 Initial start up Grant-in-aid for the 50% of estimated cost subject
grant purchase of ornamental to a maximum of Rs. 100,000
fish.
Total Not Exceeding Rs.5,00,000/-
 FACILITIES ELIGIBLE FOR FINANCIAL ASSISTANCE IN EACH GRADE OF
BREEDING UNITS

Sl. Essential Description Rate Grade-I Grade-II Grade-III

No. Items Maximum Maximum Maximum
Subsidy subsidy subsidy
amount amount amount
(Rupees) (Rupees) (Rupees)
1 Cement Cement tanks Rs.2 per 30,000 50,000 90,000
Tanks including reservoir liter water
and overhead tank. holding
2 Glass Tanks Rs. 5.5 per 11,000 41,250 1,81,500
Glass tanks include
liter water
the aquarium stand as
holding
well.
capacity
3 Water Motor & Pump, 5,000 5,000 20,000
Supply Water line pipes,
items hose and its fittings
4 Electrical Wiring Materials, 10,000 37,500 1,00,000
Items Lightings and its
fixtures, Power
generator,
Submersible
electrical heaters
5 Water Biological filters, 5,000 37,500 1,00,000
Treatment Carbon filters, UV
Equipments units, Ozoniser, RO
units
6 Building for Only structure with Rs. 400 per 2,00,000
housing the cemented, brick
tanks walls, asbestos/metal/ square feet
RCC roofs for
covering the
aquariums and
cement tanks
excluding the
overhead tanks are
eligible.
7 Oxygen Cylinder, 15,000 30,000 75,000
Life saving Regulator, Aerator,
Equipments Compressor/Air
blowers, Shade nets
and Netting for tanks,
Hand Nets, packing
machine and
Microscope.
Total 76,000 2,01,250 7,66,500
Maximum eligible assistance as per scheme 75,000 2,00,000 7,50,000
 Annexure-2: Viability Analysis

SMALLSCALE ORNAMENTAL FISH BREEDING UNIT

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Capital cost (Rs.) 150000
Recurring cost 32500 65000 65000 65000 65000
Total cost 182500 65000 65000 65000 65000
No of fish / yr 23328 58320 58320 58320 58320
Price rate (Rs.) 2.5 2.5 2.5 2.5 2.5
Income 58320 145800 145800 145800 145800

Net income -124180 80800 80800 80800 80800

Disc rate 0.15

PWC 320,064
PWB 412,675
NPW 92,611 141023.1891
BCR 1.29 1.423762278
IRR 53% 0.65868042

Loan amount 136875

Total repayment 194363

Repayment schedule
Year 1 2 3 4 5
Principal 0 34219 34219 34219 34219
Principal o/s 136875 136875 102656 68438 34219
Interest @12% 16425 16425 12319 8213 4106
Repayment 16425 50644 46538 42431 38325

BANKABILITY
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Gross income 58320 145800 145800 145800 145800
less recurring cost 32500 65000 65000 65000 65000
Gross surplus 25820 80800 80800 80800 80800
Repayment 16425 50644 46538 42431 38325
Net surplus 9395 30156 34263 38369 42475
DSCR 1.57 1.60 1.74 1.90 2.11
Av DSCR 1.78
 MEDIUM SCALE ORNAMENTAL FISH BREEDING UNIT

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Capital cost ( Rs.) 448000
Recurring cost 95750 191500 191500 191500 191500
Total cost 543750 191500 191500 191500 191500
No of fish / yr 65520 163800 163800 163800 163800
Price rate (Rs.) 2.5 2.5 2.5 2.5 2.5
Income 163800 409500 409500 409500 409500

Net income -379950 218000 218000 218000 218000

Disc rate 0.15

PWC 948,242
PWB 1,159,055
NPW 210,813
BCR 1.22
IRR 44%

Loan amount 407813

Loan repayment 579094

Repayment schedule
Year 1 2 3 4 5
Principal 0 101953 101953 101953 101953
Principal o/s 407813 407813 305859 203906 101953
Interest @12% 48938 48938 36703 24469 12234
Repayment 48938 150891 138656 126422 114188

BANKABILITY
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Gross income 163800 409500 409500 409500 409500
less recurring cost 95750 191500 191500 191500 191500
Gross surplus 68050 218000 218000 218000 218000
Repayment 48938 150891 138656 126422 114188
Net surplus 19113 67109 79344 91578 103813
DSCR 1.39 1.44 1.57 1.72 1.91
Av DSCR 1.61
 LARGE SCALE ORNAMENTAL FISH BREEDING UNIT

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Capital cost 1766000
Recurring cost 179750 359500 359500 359500 359500
Total cost 1945750 359500 359500 359500 359500
No of fish / yr 193190 482976 482976 482976 482976
Price rate (Rs.) 2.5 2.5 2.5 2.5 2.5
Income 482976 1207440 1207440 1207440 1207440

Net income -1462774 847940 847940 847940 847940

Disc rate 0.15

PWC 2,584,448
PWB 3,417,557
NPW 833,110
BCR 1.32
IRR 45%

Loan amount 1459313

Loan repayment 2072224

Repayment schedule
Year 1 2 3 4 5
Principal 0 364828 364828 364828 364828
Principal o/s 1459313 1459313 1094484 729656 364828
Interest @12% 175118 175118 131338 87559 43779
Repayment 175118 539946 496166 452387 408608

BANKABILITY
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Gross income 482976 1207440 1207440 1207440 1207440
less recurring cost 179750 359500 359500 359500 359500
Gross surplus 303226 847940 847940 847940 847940
Repayment 175118 539946 496166 452387 408608
Net surplus 128109 307994 351774 395553 439333
DSCR 1.73 1.57 1.71 1.87 2.08
Av DSCR 1.79