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Textiles

Textile industry in India covers a large gamut of activities ranging from production of its own raw material namely Cotton, Jute, Silk and Wool, to providing to consumers high value added products. It plays a significant role in the economy for its contribution to the Gross Domestic Product, employment generation and earning of foreign exchange.

NCDC has been promoting cooperative textile programmes by providing financial assistance for the development of Cotton Ginning and Spinning, Weaving, Coir, Jute and Sericulture activities..

Eligible Cooperative Societies:

NCDC provides assistance to primary, district and state level cooperatives, either directly or through State Governments.

Activities Assisted:

Ginning and Pressing

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Establishment of new modern Ganning and Pressing Units:-

From NCDC to State Govt. From State Govt. to society Direct funding
Term loan 50% Term loan 50% Term loan 50%
Investment Loan 25% Share Capital 25% Subsidy 15%
Subsidy 15% Subsidy 15% Members’ contribution 35%
Members’ contribution 10%

Modernization/Expansion of existing units:-

From NCDC to State Govt. From State Govt. to society Direct funding
Term loan 50% Term loan 50% Term loan 50%
Investment Loan 25% Share Capital 25% Subsidy 15%
Subsidy 15% Subsidy 15% Members’ contribution 35%
Members’ contribution 10%

Working capital assistance to existing units in the form of loan:-

Spinning

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Establishment of new units:-

From NCDC to State Govt. From State Govt. to society Direct funding
Term loan 50% Term loan 50% Term loan 60%
Investment Loan 25% Share Capital 25% Subsidy 15%
Subsidy 15% Subsidy 15% Members’ contribution 25%
Members’ contribution 10%

Modernization/Expansion of existing units:-

From NCDC to State Govt. From State Govt. to society Direct funding
Term loan 45% Term loan 45% Term loan 60%
Investment Loan 30% Share Capital 30% Subsidy 15%
Subsidy 15% Subsidy 15% Members’ contribution 25%
Members’ contribution 10%

Rehabilitation of sick units:-

From NCDC to State Govt. From State Govt. to society Direct funding
Investment Loan 25% Share Capital 25% Not applicable (State Govt’s involvement is mandatory)
Subsidy 15% Subsidy 15%
Members’ contribution 10%

Margin money assistance for Cooperative spinning mills and state cooperative cotton federation:-

From NCDC to State Govt. From State Govt. to society Direct funding
Investment Loan 75% Share Capital 75% Term loan 85%
Subsidy 15% Subsidy 15% Subsidy 15%

Working capital assistance to existing unit in the form of loan:-

Weaving(except handloom),Processing and Garmenting:-

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Margin money/share capital assistance:-

From NCDC to State Govt. From State Govt. to society Direct funding
Loan 100% 100% as loan and/or share Capital On techno-economic merit basis

Creation of processing infrastructure facilities, construction renovation/modernization of showroom / godown / ware house etc:

From NCDC to State Govt. From State Govt. to society Direct funding
Loan 90% Loan 70% On techno-economic merit basis
Share Capital 20%
Members’ contribution 10%

Establishment of pre/post looms procesing/garmenting/knitting units:-

From NCDC to State Govt. From State Govt. to society Direct funding
Loan 90% Loan 50% On techno-economic merit basis
Share Capital 40%
Members’ contribution 10%

Working capital assistance to existing units in the form of loan subject to techno-economic merit of the units:-

Handloom(weaker section)

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Margin money for business development:-

Developed States/UTs Under Developed States/UTs Least Developed States/UTs
From NCDC to State Govt.
Loan 85% Loan 80% Loan 75%
Subsidy 15% Subsidy 15% Subsidy 15%
(Sub - Cap of ₹5 Cr per project)
From State Govt. to society
Loan and/or share capital 85% Loan and/or share capital 80% Loan and/or share capital 75%
Subsidy 15% Subsidy 20% Subsidy 25%
(Sub - Cap of ₹5 Cr per project)
Direct funding
Loan 85% Loan 80% Loan 75%
Subsidy 15% Subsidy 20% Subsidy 25%
(Sub - Cap of ₹5 Cr per project)

Construction of work shed and purchase of looms and its accessories, construction / renovation, modernization of showroom/ godown/ ware house etc:-

Developed States/UTs Under Developed States/UTs Least Developed States/UTs
From NCDC to State Govt.
Loan 75% Loan 70% Loan 75%
Subsidy 15% Subsidy 20% Subsidy 25%
(Sub - Cap of ₹5 Cr per project)
From State Govt. to society
Loan 50% Loan 50% Loan 50%
Subsidy 15% Subsidy 20% Subsidy 25%
Share Capital 25% Share Capital 20% Share Capital 20%
(Sub - Cap of ₹5 Cr per project)Members’ contribution 10% Members’ contribution 10% Members’ contribution 5%
Direct funding
Loan 65% Loan 65% Loan 65%
Subsidy 15% Subsidy 20% Subsidy 25%
(Sub - Cap of ₹5 Cr per project)Members’ contribution 20% Members’ contribution 15% Members’ contribution 10%

Working capital assistance to existing units in the form of loan

Coir, Jute & Sericulture (weaker sections)

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Margin Money for business development;

Sl.No. Activity Units Sanctioned (Nos.) Amount released (₹ in crore)
1 Ginning & Pressing 90 28.76
2 Spinning 402 2665.84
3 Weaving, Processing & Garmenting 490 341.01
4 Handloom 3599 464.44
5 Coir 184 3.97
6 Jute 184 3.97
7 Sericulture 115 8.08
Total 6301 3579.67

Creation of processing infrastructure facilities, Construction / renovation / modernization of showroom/ godown/ware house etc

Developed States/UTs Under Developed States/UTs Least Developed States/UTs
From NCDC to State Govt.
Loan 75% Loan 70% Loan 75%
Subsidy 15% Subsidy 20% Subsidy 25%
(Sub - Cap of ₹5 Cr per project)
From State Govt. to society
Loan 50% Loan 50% Loan 50%
Subsidy 15% Subsidy 20% Subsidy 25%
Share Capital 25% Share Capital 20% Share Capital 20%
(Sub - Cap of ₹5 Cr per project)Members’ contribution 10% Members’ contribution 10% Members’ contribution 5%
Direct funding
Loan 65% Loan 65% Loan 65%
Subsidy 15% Subsidy 20% Subsidy 25%
(Sub - Cap of ₹5 Cr per project)Members’ contribution 20% Members’ contribution 15% Members’ contribution 10%

Working capital assistance to existing units in the form of loan

Mode of Funding

Financial assistance is provided through the State Govt. or directly to the eligible cooperatives.

Quantum of Assistance and Pattern of Assistance

Varies from activity to activity and upto 90-95% of the total cost for the most of the activities. However, in case of strengthening of share capital base/margin money/working capital assistance, the quantum of assistance can be upto 100%.

For detailed pattern of assistance please Click here 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 here for details of the Scheme.

Norms for direct funding

Cooperatives operating for minimum three years & broadly fulfilling following criteria are eligible:

  • Net worth should be positive
  • There should be no erosion in share capital.
  • Cash profit in last three years and net profit in two years.
  • Should be in a position to provide 1.25 to 1.5 times security.

For detailed norms of Direct Funding please Click here at the link provided

DOVETAILING OF GOVT. OF INDIA SCHEMES

NCDC is one of the authorised Nodal Agency to provide subsidy to eligible cooperative textile units under Technology Upgradation Fund Scheme (TUFS) of Ministry of Textiles. The relevant TUF scheme details can be referred in website of the Office of the Textile Commissioner(www.txcindia.gov.in)

DOVETAILING OF STATE GOVT. SCHEMES

NCDC facilitates the eligible assisted cooperative textile units for availing eligible subsidies provided by the respective State Govts under its various schemes wherever applicable.

FINANCIAL ASSISTANCE RELEASED TO TEXTILE COOPERATIVES

As on 31.03.2018, the total financial assistance disbursed for textile cooperatives by NCDC was ₹3579.67 crore and the details are as under:

Developed States/UTs Under Developed States/UTs Least Developed States/UTs
Loan 85% Loan 80% Loan 75%
Subsidy 15% Subsidy 15% Subsidy 15%
(Sub - Cap of ₹5 Cr per project)
From State Govt. to society
Loan and/or share capital 85% Loan and/or share capital 80% Loan and/or share capital 75%
Subsidy 15% Subsidy 20% Subsidy 25%
(Sub - Cap of ₹5 Cr per project)
Direct funding
Loan 85% Loan 80% Loan 75%
Subsidy 15% Subsidy 20% Subsidy 25%
(Sub - Cap of ₹5 Cr per project)

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:

1. Executive Director

NCDC,
4, Siri Institutional Area, Hauz Khas,
New Delhi – 110 016
PABX No.: +91-011-26569246
Fax: +91-011-26962370, 26516032
Website: www.ncdc.in
Email: [email protected]

2. Regional Directorates of NCDC:

Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram