NCDC is operating a scheme for the promotion and development of distribution of consumer articles by consumer cooperatives.† Consequent upon amendment of the NCDC Act, the Corporation is now also providing financial assistance under direct funding to the cooperatives without Govt. guarantee, subject to the satisfaction of eligibility criteria.† Under the scheme financial assistance to consumer cooperatives and to other cooperatives engaged in consumer business at the Primary/ District/ State/ National Level operating in Rural/ Semi Urban/ Urban areas will be covered.†† The various components for which assistance available under the scheme are as follows:-

 Expansion/renovation of existing infrastructure or construction of new infrastructure such as shopping centre/ godown/ kerosene bunk/ warehouse etc.

 Margin money for raising working capital.

 Furniture & fixtures and transport vehicle

 Rehabilitation of weak wholesale consumer cooperative stores/ Departmental Consumer Coop. Stores/ Consumer Federations;


 Consumer Oriented Processing/Industrial Activities, for creation/ expansion/ modernisation of consumer processing/ Industrial activities.

The scheme will be applicable to consumer cooperative or cooperatives undertaking consumer business at the primary/district/state/national levels in rural/semi-urban urban areas.


NCDCís assistance provided till last financial year:

The total assistance sanctioned by the Corporation under its Consumer Programme by the end of 2005-06 aggregated to Rs.16923.938 lakhs, of which an amount of Rs.15433.98 lakhs was disbursed.


Eligibility criteria


a)††††††††† Existing societies†††

 The cooperative should be in operation for a minimum last 5 years;

 Cooperative should have earned cash profit during the last 3 years;

 The cooperative has a positive net worth as on the closing day of last financial year.

b)††††††††† New Societies

The newly formed consumer cooperative societies/other societies which propose to undertake consumer business as new activity could avail financial assistance for margin money to raise working capital and purchase of furniture and fixtures on the basis of their proposed business programmes.† The assistance would be considered on the merit of each case.


The financial assistance from NCDC would be available to the existing national/state level consumer federations/wholesale consumer cooperative stores and departmental consumer cooperative stores for their rehabilitation programme prepared in consultation with respective State Govts.



Assistance can also be provided to the good working cooperatives/beneficiaries under direct funding subject to fulfilling the prescribed criteria.



The Govt. of India has conveyed its approval for the implementation of NCDC Programme for the development of cooperatives in 10th Plan period. Under the scheme, subsidy is provided to the extent of 20/25% for under-developed/ least developed States respectively.



 NCDC has introduced a scheme for creation of irrigation and water harvesting infrastructure/facilities by cooperatives.† Under these scheme multi purpose cooperative societies, PACS, lift irrigation societies, processing/marketing cooperatives, water users cooperatives etc. proposing to create and/or strengthening minor irrigation and water harvesting facilities are eligible for assistance.

 Under the scheme, NCDCís assistance would be up to 90% of the project cost as loan and 10% of the project cost will have to be borne by the beneficiaries.†† There is no ceiling on the availability of funds from the NCDC.† The funds will be provided on need based. Eligibility criteria are identical as that of consumer societies as mentioned above.