राष्ट्रीय सहकारी विकास निगम

NATIONAL COOPERATIVE DEVELOPMENT CORPORATION

TEXTILES

SCHEMES

NCDC is implementing schemes for development of Cooperative Textile Sector. Financial assistance is provided for the following activities under the schemes in vogue:

Ginning & Pressing

· Modernisation of existing and establishment of new Ginning & Pressing Units.

Spinning

· Modernisation/Expansion of existing Cooperative Spinning Mills and establishment of new mills.

· Margin money/working capital assistance to the Cooperative Spinning Mills and State Cooperative Cotton Federations.

· Rehabilitation of sick Cooperative Spinning Mills

· Subsidy assistance to Cotton Growers Spinning Mills for Cotton Development

Handloom

· Strengthening of share capital base/margin money assistance.

· Creation of processing facilities.

· Construction/opening/renovation of showroom, Central Godown and Showroom-cum-Godown.

· Construction of workshed

Powerloom

· Strengthening of share capital base/margin money assistance.

· Purchase of looms or construction of shed with looms and accessories/modernisation/construction/renovation/opening of Godown/Showroom/Marketing Complex/Cooperative Textile Estate.

· Establishing pre/post loom processing/Garment/Knitting units.

Coir

· Strengthening of share capital base/margin money assistance

· Creation of processing facilities.

· Construction of Coir godowns/showrooms/godowns-cum-showrooms.

· Purchase of transport vehicles.

Jute

· Strengthening of share capital base/margin money assistance.

· Creation of processing facilities (small/medium sized processing units).

· Warehouses/godowns/showrooms/godowns-cum-showrooms.

Sericulture

· Strengthening of share capital base/margin money assistance.

· Creation of processing facilities (filature & Integrated Sericulture Development Project).

· Warehouses/Godowns/Showrooms/Transport Vehicles/Market Yards/ Grainages/Chawki rearing/Rearing of Silk Worm Chandrika Centre/Hot Air Drier/Laboratory.

 

DOVETAILING OF GOVT. OF INDIA SCHEMES

NCDC is one of the Nodal Banks for providing concessional finance for Modernisation and Technology Upgradation for the Cooperative Textile Sector under the Technology Upgradation Fund Schemes (TUFS) of the Ministry of Textiles. The scheme provides focal point for modernisation through Technology Upgradation with the main feature being a 5% reimbursement to be provided by the Ministry of Textiles, GOI on the interest actually charged by the identified financial institutions on the sanctioned projects. The scheme is valid up to 31.3.2007.

 

FINANCIAL ASSISTANCE SANCTIONED/RELEASED

The total financial assistance sanctioned by the Corporation for the Cooperative Textiles programmes, up to 31st March, 2006 was of the order of about Rs. 17959 million. Of this, assistance amounting to Rs. 11837 million had been released till 31.3.2006. Details of assistance provided is as under:-

 

 

Assistance As on 31.3.2006

 

(Rs. in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ELIGIBILITY CRITERIA

· In order to be eligible for NCDC’s assistance, in addition to usual techno-economic viability consideration, the following eligibility criteria applies:-

· In case of Ginning & Pressing Unit minimum capacity for assistance will be 12 double roller gins and above. The project location should ensure adequate availability of raw material within a reasonable distance.

· For Growers Cooperative Spinning Mill, the project location should be in a major cotton growing tract and ensure adequate availability of raw material within a reasonable distance. Cotton growers will establish effective linkages with its grower members for procurement of raw material.

· In case of Weavers Spinning Mills, the location of the project should be in area having large handloom/powerloom concentration and gap in the existing yarn requirement.

· Firm commitment/sanction of term loan from the Financing Institution for establishment of the new Cooperative Spinning Mills.

· Mills seeking assistance for modernisation/expansion should have a positive net worth.

· Sick Cooperative Spinning Mills should fulfil any of the following conditions for becoming eligible under rehabilitation scheme.

· The mill has been incurring case losses continuously for the last 3 years.

· The mill is having accumulated losses leaving networth negative and the mill must not be closed for more than 2 years

· When a society proposes to construct a godown, a showroom or a godown-cum-showroom, it can apply for NCDC’s assistance only if it has acquired land using its own resources.

· In case of direct funding the applicant cooperative, by and large, should be an existing cooperative society in operation for more than 3 years. The society should have positive net worth, there should be no erosion in the paid up share capital. The society should not have any cash losses during last three years and there should be net profit in at least two of previous three years. Audit of accounts should be complete up to previous year. In cases, where audit is undertaken by Govt. auditors and it is not complete, accounts audited by Chartered Accountants’ Firms may be accepted.

 

PROCEDURE INVOLVED FOR AVAILING ASSISTANCE

· Cooperatives interested in NCDC’s assistance should contact the State RCS/Directorates/Regional Directorates of NCDC for guidance. Scheme and application forms along with pattern of funding available at these offices.

· Those societies which fulfill the relevant eligibility criteria and other terms and conditions, should send proposals through the State Govts./Direct. For direct funding the applicant society should also fulfill the relevant criteria applicable for availing direct assistance. Assistance for new mills and rehabilitation is provided through the State Govt. only.

 

IMPACT OF NCDC’S ASSISTANCE ON THE COOPERATIVE TEXTILE SECTOR

The Cooperative Textile sector has played a commendable role in the upliftment of small and marginal cotton farmers and the weavers belonging to the weaker sections besides the Jute Growers, Sericulturists and the Coir workers. These mills/units – a majority of which are located in the rural areas have brought about a significant socio-economic transformation in the area of its operation. Over 5 lakh cotton growers and 6000 grower cooperatives reap benefit by marketing of cotton in value added form. About 22500 handloom weaver cooperatives are benefited by consistent supply of quality yarn. The cooperative spinning mills represent about 10% of the total spindleage of the country with substantial yarn production and exports. The weaving cooperatives have been instrumental in providing a source of livelihood to a large number of people most of which belong to the weaker segment.

 

 

NCDC has been promoting the cooperative textile programmes by providing financial assistance for the development of Cotton Ginning and Spinning, Weaving, Coir, Jute & Sericulture activities in the cooperative sector. These activities include the entire gamut of activities right from ginning to the garmenting stage besides activities for development of Coir, Jute & Sericulture.

 

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