To promote the development of Tribal Cooperatives, NCDC has been providing financial assistance since 1974-75 through its schemes. The Corporation has been extending financial assistance to the State Govts. for assisting the Tribal and Scheduled Caste Cooperatives including LAMPS, Marketing, Processing Societies and State Tribal/Scheduled Caste Cooperative Development Corporation/Federation for the following purposes:
· Margin Money/Share Capital
· Working Capital for Business Development
· Assistance for Infrastructure Creation
Scheduled Tribe Cooperatives
Assistance is provided by NCDC to Tribal Development Cooperative Corporations/Federations, marketing/processing societies and Large Sized Agricultural Multi-purpose Cooperative Societies (LAMPS). As a result of amendment of NCDC Act, the Corporation has started providing financial assistance under direct funding subject to fulfilling of eligibility criteria laid down for this purpose.
· LAMPS, Marketing and Processing Cooperatives in Tribal Sub-Plan areas and other cooperatives having pre-dominant membership of Tribals (more than 50%).
· Tribal Development Cooperative Corporations (TDCCs) with positive net worth (losses, if any not exceeding own funds) and having potential for development of trading activities, especially in MFP will be eligible for assistance from NCDC.
· The Society seeking financial assistance should be functional and working efficiently.
· A newly registered Society can also be considered for assistance provided it has a well designed programme for expansion of its trading activities.
Impact of NCDC Assistance
The assistance provided by NCDC has been able to create awareness among the Tribals on the need for cooperative effort for betterment of community. The assistance has helped beneficiary societies in taking up business activities and momentum towards competitiveness is gradually increasing. The societies have been able to achieve their objectives such as providing service for socio-economic benefits to its members.
Dovetailing of Financial Assistance
NCDC has dovetailed its scheme with the scheme of National Scheduled Tribes Finance & Development Corporation (NSTFDC) for providing financial assistance on liberal terms for activities undertaken by ST Cooperatives Under the dovetailed arrangement, NCDC charges interest of 9% p.a. on the loan.
Concessional finance is available from NSTFDC for Schedule Tribe Cooperatives subject to fulfilment of the following criteria:
1. Tribal Cooperative society shall have more than 80% Tribal members.
2. Annual family income limit of the Tribal members of the society shall be upto double the poverty line i.e. Rs.98,000/- p.a. for Rural areas and Rs.1,20,000/- p.a. for Urban areas.
The final approval for availing concessional finance from NSTFDC will be on receipt of the approval from NSTFDC.
Scheduled Caste Cooperatives
Liberal assistance is provided to Scheduled Caste Cooperatives, which have 40% or more membership from scheduled caste communities with minimum of 20% active members, for development of marketing, processing, supplies and storage activities in agricultural and other notified commodities. The Chairman or the Vice-Chairman of the beneficiary cooperative has to be a scheduled caste member. As a result of amendment of NCDC Act, the Corporation has started providing financial assistance under direct funding subject to fulfilling of eligibility criteria.
Procedure Involved in availing NCDCs Assistance
The societies fulfilling the conditions of eligibility should apply through the concerned department in State Govt. /Registrar of Cooperative societies to NCDC. Advance copies of the application may be sent to NCDCs Regional Directors/Head Office. NCDC would however consider the proposals only after the proposals are duly recommended by the State Govt. Societies desiring assistance under direct financing scheme may refer to the (Link Direct Funding Guidelines). Societies may also approach to NCDC directly if they have suitable security to offer to the satisfaction of Corporation. Additional information may be found on the links provided below
For detailed pattern of assistance please click at the link provided.
Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme
To encourage newly formed cooperatives take advantage of innovative ventures, especially by societies with new/innovative idea, NCDC has introduced a new scheme titled, “Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme” linked to a Cooperative Startup and Innovation Fund created by NCDC. Please click for details of the Scheme
Norms for direct funding
Cooperatives operating for minimum three years & broadly fulfilling following criteria are eligible:
(i) Net worth should be positive
(ii) There should be no erosion in share capital.
(iii) Cash profit in last three years and net profit in two years.
(iv) Should be in a position to provide 1.25 to 1.5 times security.
For detailed norms of Direct Funding please click at the link provided.
Common Loan Application Form for availing assistance under the scheme of NCDC can be downloaded from NCDC’s website.
For further details, please contact or write to:
4, Siri Institutional Area, Hauz Khas,
New Delhi – 110 016
Fax: +91-011-26962370, 26516032
Regional Directorates of NCDC: Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram.