The Nabard would pick 26 per cent in the new company, the state government, financial institutions, state finance companies and banks would hold 19 per cent and other corporates, individuals, NGOs, NRIs and international agencies would hold 55 per cent. The authorised capital would be Rs 100 crore and the initial paid-up capital Rs 20 crore, sources said.

This proposal deserves importance as the state government has organised a three-day "Agro-Advantage Maharashtra" from November 6 to attract domestic and foreign investment in agriculture and related fields. The government has decided to offer 50 projects worth Rs 5,000 crore during the meet.

The board of directors of the proposed companywill comprise representatives from Nabard, commercial banks, state government, financial institutions and the private and public sectors. The company will provide working capital for projects financed by it, arrange for syndication of loans/issue of bonds for projects too large for a single FI, discount short-term bills of other FIs against their loans for agriculture and allied activities.

It will also provide merchant banking and other non-fund facilities and provide technical support by way of project appraisal, technical advice relating to agriculture and allied activities.

The company may raise funds directly by way of borrowings in India and abroad through loans, bonds, debentures, syndicated loans, refinance from term-lending institutions, deposits, commercial paper, certificates of deposit, usance bills, lines of credit and securitisation of assets.

The company may obtain loans anf grants from multilateral agencies and bilateral donors on mutually agreed terms and conditions.

It may seekguarantees/underwriting commitments from other FIs to access the capital market in India and abroad.

The report said that the net sown area of the state is 179 lakh hectares and it has switched over with significant results to commercial farming in horticulture crops by adopting most modern scientific practices.

In the aftermath of economic reforms, large scale investments have been taking place in various sectors of the economy in the state.

With the opening up of trade, agri-export has witnessed spectacular growth in Maharashtra.

On the industrial front, the state accounts for nearly 14.5 per cent of total factories, 15.1 per cent of factory workers, 16.5 per cent of productive capital, 21.2 per cent of the gross value of output, 11.2 per cent of the registered small scale units and 23.7 per cent of value-addition by manufacturing units of the country.

Maharashtra is the leading producer of horticultural crops accounting for 10 per cent of the total production and 50 per cent of the totalexport of fruits of the country.

Corporates such as the Tatas and Kirloskars have already made forays in horticulture.

The state, with production figures of over 4 lakh tonnes of grapes, continues to be the leading producer and exporter of grapes. It also leads in production of mangoes, especially the Alphanso variety, with over 3.60 lakh tonnes. Orange production is about 7 lakh tonnes and bananas nearly 3 lakh tonnes.