Details of Integrated Cooperative Development Project (ICDP)
1. Description of the Scheme
One of the important Schemes of the NCDC is “Integrated Cooperative Development Project (ICDP) Scheme” which was introduced in the year 1985-86 and aims at:
- Development of Primary Agricultural Credit Societies as multi-purpose self-reliant entities;
- Development of allied sector cooperatives; and
- Development of viable functional linkages among cooperatives.
Under the scheme, an integrated area-based approach is adopted for development of cooperatives in a selected district. The Scheme promotes various economic activities through cooperatives in the sphere of agriculture, agro-based industries, cottage and household industries and agro-allied sector like fishery, dairy and livestock, handloom, horticulture, rural industries in a selected district. Assistance under notified services is provided for tourism, transport, education, rural housing, hospitals, health care, generation & distribution of power by new and non-conventional renewable sources of energy and cooperatives banking. A Macro Plan for whole of the selected district is prepared, keeping in view the local resources and needs. Assistance is in a package form and includes –infrastructural needs, funds for business development and HRD aspects.
NCDC funds the ICD Projects through State Government. The project funding is under two heads (i) Loan and (ii) Subsidy. The loan is for creation of infrastructure facilities such as godowns, banking counter, transport vehicles, small processing units, etc. and strengthening of share capital / providing margin money for augmenting the business of the societies. Subsidy is provided for development of cooperatives (as per developed, under developed and least developed categorization of the states) as well as for project implementation, manpower development and training, monitoring and incentives.
PATTERN OF FUNDING FOR ICDP
| SN | Activity | From NCDC to S/Govt. | From S/Govt. to Cooperatives | |||||
|---|---|---|---|---|---|---|---|---|
| Loan | Sub | Total | Loan | S/cap. | Sub | Total | ||
| A. | Cooperatively Least Developed States | |||||||
| i) | Infrastructure Creation (Component I & II) | 75% | 25% | 100% | 50% | 25% | 25% | 100% |
| ii) | Margin money to beneficiaries societies | 75% | 25% | 100% | - | 75% | 25% | 100% |
| iii) | Share capital to DCCBs | 100% | - | 100% | - | 100% | - | 100% |
| iv) | Manpower Development & Training | - | 50%@ | 50%@ | - | - | 100% | 100% |
| v) | Managerial assistance to PIA and Monitoring Cell etc. | - | 50%@ | 50%@ | - | - | 100% | 100% |
| B. | Cooperatively Under-Developed States | |||||||
| i) | Infrastructure Creation (Component I & II) | 80% | 20% | 100% | 50% | 30% | 20% | 100% |
| ii) | Margin money to beneficiaries societies | 80% | 20% | 100% | - | 80% | 20% | 100% |
| iii) | Share capital to DCCBs | 100% | - | 100% | - | 100% | - | 100% |
| iv) | Manpower Development & Training | - | 50%@ | 50%@ | - | - | 100% | 100% |
| v) | Managerial assistance to PIA and Monitoring Cell etc. | - | 50%@ | 50%@ | - | - | 100% | 100% |
| C. | Cooperatively Developed States | |||||||
| a) | Weaker Section Programme / Activities | |||||||
| i) | Infrastructure Creation (Component I) | 85% | 15% | 100% | 50% | 35% | 15% | 100% |
| ii) | Margin money to beneficiaries societies | 85% | 15% | 100% | 50% | 35% | 15% | 100% |
| iii) | Share capital to DCCBs | 100% | - | 100% | - | 100% | - | 100% |
| iv) | Manpower Development & Training | - | 50%@ | 50%@ | - | - | 100% | 100% |
| v) | Managerial assistance to PIA and Monitoring Cell etc. | - | 50%@ | 50%@ | - | - | 100% | 100% |
| b) | Other than Weaker Section Programme / Activities | |||||||
| i) | Infrastructure Creation (Component I & II) | 100% | - | 100% | 50% | 50% | - | 100% |
| ii) | Margin money to beneficiaries societies | 100% | - | 100% | 50% | 50% | - | 100% |
| iii) | Share capital to DCCBs | 100% | - | 100% | - | 100% | - | 100% |
| iv) | Manpower Development & Training | - | 50%@ | 50%@ | - | - | 100% | 100% |
| v) | Managerial assistance to PIA and Monitoring Cell etc. | - | 50%@ | 50%@ | - | - | 100% | 100% |
Note:
- Total subsidy component under any project shall, however, not exceed 30% of the total project cost.
- Subsidy assistance available from any department/ministries/agencies shall be dovetailed for passing on to the cooperatives.
- The subsidy is shared between the NCDC and the State Government on 50:50basis.
- In case of special category states indicated as @ in the table above, entire subsidy component is provided by the NCDC. The special category states are all North-Eastern States, Sikkim, Himachal Pradesh, Jammu & Kashmir, Ladakh and Uttarakhand.
The project is implemented by a Project Implementation Agency (PIA) which generally is the District Central Cooperative Bank (DCCB). To assist the DCCB in project Implementation, a Project Implementation Team (PIT) is constituted at the District level to prepare Business Development Plan for the cooperatives, assess the society-wise infrastructural and other requirements and provide assistance accordingly. The systems and procedures are streamlined and functional linkages are established to make the operations cost effective.
Gaps in managerial skills are identified and necessary training is provided to personnel in cooperatives. PIT personnel provide on-the-job training and guidance. The Scheme also has an incentive component for motivating the paid staff of primary cooperatives to perform better and improve the functioning of the cooperatives vis-a-vis recovery of funds provided.
The project period is 4-5 years during which it is expected the project is completed in all respects. The projects are monitored regularly. In the States where the ICD projects are more than two in number, a Monitoring Cell is created at the State level to monitor all the projects in the State.
2. Details about dovetailing subsidies
Grant/subsidy under various Schemes of Government of India / State Government is dovetailed with ICDP by the Project Implementing Agency/Team at the time of project implementation. NCDC’s loan assistance to that extent is reduced. Presently, the subsidies are being dovetailed from following Central Sector Schemes of Government of India:
- Development of Cooperatives under Central Sector Integrated Scheme on Agriculture Cooperative (CSISAC).
For the preparation of the DPR for ICD projects component III pertaining to ICDP of the CSISAC guidelines of DAC &FW (GOI) be referred regarding the pattern & component of assistance.
3. Eligibility, criteria and procedure involved
Area based approach is adopted under the scheme for development of cooperatives. A district is selected on the recommendation of concerned State Government for which information is to be submitted as per prescribed format. Thereafter a detailed project report (DPR) is prepared either by a multi disciplinary team of State Government Officers or by an outside consultancy organization appointed by State Government with the approval of NCDC.DPR is prepared by the State government or Consultant as per Terms of Reference. The DPR is considered and approved first by District Level Coordination Committee (DLCC) and then by State Level Coordination Committee (SLCC). The DPR is then recommended by the State Government to NCDC for sanction. In the backdrop of the DPR, the project is then appraised by the team of NCDC officers in consultation with state Government officials.The Appraisal report is then considered by the Central Screening Committee, and based on its recommendation the sanction is conveyed to the State Government after obtaining approval of the Competent Authority in NCDC.
The Project after sanction is implemented by Project Implementation Agency (PIA) and ‘Project Implementation Team’ (PIT).The PIT & PIA are involved in preparation of Business Development Plan, assessing society wise requirements and implementing and monitoring the project. All societies having potential for development are assisted under the project. During the course of implementation of project, the PIA / State Govt. submits periodic Progress Report to NCDC HO and concerned Regional Officer as per the prescribed format. State Govt / PIA are delegated the powers to divert the funds as per terms of Circular No. NCDC: 4-2/86-ICDP dated 20/1/2010.
After completion of project, Project Completion Report is prepared indicating information as per the prescribed format.
Fertilizer procurement and Mini -Bank unit run by PACs under ICDP programme
Grameen Sahakari Supermarket established under ICDP Ganganagar
- Format for selection of districts (Common Loan Application)-Click here [PDF, Hindi, 28KB]
- Terms of reference for preparation of DPR-Click here [PDF, English, 23.2KB]
- Format of Progress Report for monitoring of ICD Projects -Click here [PDF, English, 22KB]
- Guidelines for Diversion of Funds and increase in unit cost-Click here [PDF, English, 27KB]
- Format for preparation of Project completion report-Click here [PDF, English, 23.2KB]
- Criteria for taking up Phase-II of ICDP -Click here [PDF, English, 23.2KB]
- Circular for delegation of powers of Finance Division for sanction & validity extension of ICD projects-Click Here