राष्ट्रीय सहकारी विकास निगम
NATIONAL COOPERATIVE DEVELOPMENT CORPORATION
NCDC has been implementing a Central Sector/Corporation Sponsored Scheme for providing financial assistance towards setting-up of agro-based processing units for plantation crops (Tea, Coffee, Rubber, Cashew, Arecanut, Spices etc.), food grain processing (rice/dal mills, bakery, roller flour mills, maize starch/ glucose plants etc.), oilseed processing units and various other processing units. (particle based, paper board projects, etc.)
Following activities are covered:-
· Establishment of new processing units.
· Expansion/modernisation/rehabilitation/diversification of existing units.
· Strengthening of share capital base
· Margin money/working capital to commodity cooperative and State-level Commodity Federations for expansion of their business activities
In pursuance of Gazette Notification, dated 16.9.2002, 13.1.2003 and 21.6.2005 of Govt. of India, Ministry of Agriculture (Department of Agriculture & Cooperation), following services have been included under “Service Cooperatives for financing by NCDC :-
à Agricultural credit through Cooperatives;
à Labour cooperatives;
à Water conservation works/services, irrigation, micro-irrigation in rural areas undertaken by the Cooperatives;
à Animal care/health, disease prevention through Cooperatives;
à Rural sanitation / drainage / sewage systems through Cooperatives.
à Agricultural Insurance through cooperatives.
· Under agricultural credit, working capital assistance is provided to Cooperative/Land Development Banks towards meeting short-term credit requirements of their members for production/working capital/contingency credit needs for farm and non-farm activities. The assistance is provided against security like jewel (gold loan), pledge of receivables, FDRs etc. to the satisfaction of the Corporation.
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· The Scheme for development of Labour Cooperatives will broadly cover the following :-
Þ Strengthening of Share Capital base/Margin Money assistance to Labour Cooperatives
Þ Purchase of construction related machines and equipment, tools and tackles loading/unloading/packing equipment as relevant to labour cooperatives.
Þ Establishment/Construction of Service Complex/ Godown by Labour Cooperatives.
Þ Computerisation, furniture and infrastructure for establishment of DATA Bank by National, State-level and District-level Labour Cooperative Federations.
Industrial Cooperatives – Cottage & Village Industries, Handicrafts/ Rural Crafts
· NCDC Act has been amended with effect from 16th September, 2002 enabling the Corporation, inter-alia, to extend financial assistance for promotion and development of "Industrial Cooperatives".
· The scheme for development of Industrial Cooperatives will broadly cover the following:
· Establishment of industrial worksheds/ units including plant & machinery for production/ fabrication/ assembling/ processing of industrial goods, handicrafts, rural crafts & other products.
· Expansion/modernization /renovation of existing industrial cooperative units.
· Construction of marketing infrastructure including showrooms/ warehouses/ transport vehicles etc.
· Strengthening of share capital base/ margin money assistance and working capital to industrial cooperatives for business operations.
· Establishment of Cooperative Industrial Estates for small scale industries.
· For development of Industrial Estates, while Central Govt., Ministry of Small Scale Industries provides grant up to Rs.2.00 crores (up to Rs.4.00 crores in case of North – East, J&K, Himachal and Uttaranchal), term loan for the same can be obtained from NCDC.
Developmental Programmes for UD/LD States
· Financial assistance is also available in the form of subsidy towards cost incurred by cooperative societies for undertaking the feasibility studies/preparation of project reports for establishment of processing units in respect of UD/LD States* subject to the condition that prior approval of the Corporation is taken before undertaking such studies and entrusting the work to the consultants.
· Financial assistance is also available in the form of subsidy towards cost incurred by cooperative societies for undertaking the feasibility studies/ preparation of project reports for establishment of processing units as indicated above in respect of UD/LD States, subject to the condition that prior approval of the corporation is taken before undertaking such studies and entrusting the work to the consultants.
Procedure for Sanction and Release of Assistance
Financial assistance to the societies registered under the State Co-operative Societies Acts is provided through the State Govt. concerned. Financially strong societies are eligible for direct funding with/without State govt. Guarantee and/or mortgage of assets. Co-operative societies registered under the Multi-State Coop. Societies Acts are financed directly.
a) Eligibility for Direct Funding
i) The society should have track record of working for last 3 years.
The cooperative societies, which are not in operation for more than three years, will normally be assisted through State Govts. However, the cooperatives in exceptional cases may be considered for direct funding, if in addition to the eligibility criteria indicated in para 1 above (as applicable), following additional securities are made available:-
· Government guarantee or guarantee of a scheduled bank.
· Personal guarantee of the Directors and collateral security if considered necessary.
ii) The society should have earned cash profit in the preceding 3 years and net profit in 2 out of 3 years.
iii) Net worth of the society is positive and there is no erosion in share capital of the society.
iv) The society should not have defaulted to any financial institution/bank.
v) NCDC assistance should be secured to the satisfaction of NCDC by way of providing mortgage, FDRs, hypothecation of receivable etc. or Govt. guarantees.
vi) The project should be technically feasible and financially viable.
vii) The project should fulfill norms set out towards environment-friendliness and pollution control.
Eligibility Criteria for Funding through State Govt.
i. Proposal should be recommended by concerned State Govt through which the assistance shall be provided.
ii. The project should be technically feasible and financially viable.
iii. Society should have adequate resources/capability to raise required share capital.
iv. The project should fulfill norms set out towards environment-friendliness and pollution control.
i) Appraisal of projects:
a. Proposals recommended by the State Govts. for financing are examined and appraised before placing the same for consideration of the Internal Screening Committee/Divisional Screening Committee, as the case may be.
b. Proposals received for direct funding are first placed before the Pre-Screening Committee (PSC). After clearance by PSC appraisal of the project is undertaken for placing the same before the Internal Screening Committee/Divisional Screening Committee as the case may be.
ii) Consideration of the proposals:
a) Project proposals involving block cost up to Rs.20.00 lakhs (except subsidy from the Corporation resources) and escalation exceeding this limit up to 20% of original sanction are considered by concerned Regional Directorates in consultation with Regional Screening Committee.
b) Project proposals involving NCDC assistance up to Rs.40.00 lakhs (except subsidy from the Corporation resources) and escalation exceeding this limit up to 20% of original sanction are considered by Divisional Screening Committee headed by respective Divisional Heads.
iii) Approval of Screening Committee
The direct funding proposals duly approved by Pre-Screening Committee and proposals involving financial assistance of more than Rs.40.00 lakhs and above supported with the appraisal report are placed before the Internal Screening Committee for approval.
iv) Approval of the Board of Management:
Proposal involving financial assistance of more than Rs.3.00 crores after clearance of the Screening Committee, are placed before the Board of Management of the Corporation for consideration of sanction of assistance.
v) Issue of sanction letter:
After approval of the proposals by the respective competent authorities Corporation’s sanction incorporating detailed terms and conditions is conveyed to all concerned.
vi) Release of assistance:
a) Assistance through State Govt.
Sanctioned assistance is considered for release by way of reimbursement finance i.e. the State Govts. first release the assistance to the beneficiary societies and thereafter claim reimbursement from NCDC. Upon specific request, advance release assistance is also made to State Govts. to be passed on to the beneficiary within one month from the date of receipt of assistance by State Govt.
· Term-loan - 25% ways and means advance is released after the society has acquired land/placed orders for plant and machinery and has collected 50% of the margin of security.
· Further releases are made in relation to the progress of the project and the latest statement of expenditure limited up to the item wise amount sanctioned by the Corporation.
· Investment loan is released in not more than 3 instalments.
· Margin money/working capital loan assistance is provided in one or two installments as per the requirement of the concerned society.
b) In case of direct funding
· Assistance will be released only after agreement is executed and on furnishing necessary securities in favour of the NCDC as per terms and conditions stipulated in the sanction letter.
· 25% ways & means advance would be released only after the society has raised 50% and utilized 40% of its equity by way of members’ share capital and internal accruals. Subsequent releases will be based on expenditure incurred and committed expenditure for one month as certified by CA.
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Processing, Industrial & Service Cooperatives