Textile industry in India covers a large gamut of activities and plays a significant role in the economy for its contribution to the country’s GDP, employment generation and earning of foreign exchange.
NCDC has been promoting the textile cooperatives covering from field to fabric, by providing financial assistance for the development of Ginning & Pressing, Spinning, Weaving, Processing, Garmenting, Knitting and weaker section activities such as Handloom, Coir, Jute & Sericulture.
Eligible Cooperative Societies:
- Cooperative societies at primary, district & State level.
- Cooperative federations at State Level.
Mode of Funding:
Financial assistance is provided either through the State Government or Directly to the eligible cooperatives.
Quantum and pattern of assistance:
The quantum of assistance varies upto 95% of the project cost based on techno-economic merits as per the pattern of assistance envisaged under the Central Sector Integrated Scheme on Agricultural Cooperation (CSISAC) / Corporation sponsored scheme. However, in case of strengthening of share capital base/margin money/working capital assistance, the quantum of assistance can be upto 100%. CSISAC subsidy shall be as per provisions of the scheme, subject to availability from Government of India. The pattern of assistance as per the current scheme is given below:
Ginning and Pressing:
- Establishment of new modern Ganning and Pressing Units (under CSISAC Scheme*)
| From NCDC to State Govt. | From State Govt. to society | Direct funding |
| Term loan 50% Investment Loan 25% Subsidy 15% |
Term loan 50% Share Capital 25% Subsidy 15% Members’ contribution 10% |
Term loan 50% Subsidy 15% Members’ contribution 35% |
- Modernization/Expansion of existing units (under CSISAC Scheme*)
| From NCDC to State Govt. | From State Govt. to society | Direct funding |
| Term loan 50% Investment Loan 25% Subsidy 15% |
Term loan 50% Share Capital 25% Subsidy 15% Members’ contribution 10% |
Term loan 50% Subsidy 15% Members’ contribution 35% |
* Subject to continuation of scheme and availability of subsidy from GOI.
- Working capital assistance to existing units in the form of loan (under Corporation Sponsored Scheme)
Spinning:
- Establishment of new spinning units (under CSISAC scheme*)
| From NCDC to State Govt. | From State Govt. to society | Direct funding |
| Term loan 50% Investment Loan 25% Subsidy 15% |
Term loan 50% Share Capital 25% Subsidy 15% Members’ contribution 10% |
Term loan 60% Subsidy 15% Members’ contribution 25% |
- Modernization/Expansion of existing units (under CSISAC Scheme*)
| From NCDC to State Govt. | From State Govt. to society | Direct funding |
| Term loan 45% Investment Loan 30% Subsidy 15% |
Term loan 45% Share Capital 30% Subsidy 15% Members’ contribution 10% |
Term loan 60% Subsidy 15% Members’ contribution 25% |
- Rehabilitation of sick units (under CSISAC Scheme*)
| From NCDC to State Govt. | From State Govt. to society | Direct funding |
| Investment Loan 75% Subsidy 15% |
Share Capital 75% Subsidy 15% Members’ contribution 10% |
Not applicable (State Govt’s involvement is mandatory) |
- Margin money assistance for Cooperative spinning mills and state cooperative cotton federation (under CSISAC Scheme*)
| From NCDC to State Govt. | From State Govt. to society | Direct funding |
| Term loan 85% Subsidy 15% |
Term loan 85% Subsidy 15% |
Term loan 85% Subsidy 15% |
* Subject to continuation of scheme and availability of subsidy from GOI.
- Working capital assistance to existing unit in the form of loan (under Corporation Sponsored Scheme)
Weaving (except handloom), Processing and Garmenting:
- Margin money/share capital assistance (under Corporation Sponsored Scheme)
| From NCDC to State Govt. | From State Govt. to society | Direct funding |
| Loan 100% | 100% as loan and/or share Capital | Loan 65% Members’ contribution 35% |
- Construction of workshed and purchase of looms & its accessories, construction/renovation/modernization of showroom / godown / Marketing complex/Cooperative textile estate (under Corporation Sponsored Scheme)
| From NCDC to State Govt. | From State Govt. to society | Direct funding |
| Loan 90% | Loan 70% Share Capital 20% Members’ contribution 10% |
OLoan 65% Members’ contribution 35% |
- Establishment of pre/post looms procesing/garmenting/knitting units (under Corporation Sponsored Scheme)
| From NCDC to State Govt. | From State Govt. to society | Direct funding |
| Loan 90% | Loan 50% Share Capital 40% Members’ contribution 10% |
Loan 65% Members’ contribution 35% |
- Working capital assistance to existing units in the form of loan subject to techno-economic merit of the units (under Corporation Sponsored Scheme)
Handloom (weaker section):
- Margin money for business development (under CSISAC Scheme*)
| Developed States/UTs | Under Developed States/UTs | Least Developed States/UTs |
| From NCDC to State Govt. | ||
| Loan 85% Subsidy 15% (Max sub. of Rs.5 Cr per project) |
Loan 80% Subsidy 20% |
Loan 75% Subsidy 25% |
| From State Govt. to society | ||
| Loan and/or share capital 85% Subsidy 15% (Max sub. of Rs.5 Cr per project) |
Loan and/or share capital 80% Subsidy 20% |
Loan and/or share capital 75% Subsidy 25% |
| Direct funding | ||
| Loan 85% Subsidy 15% (Max sub. of Rs.5 Cr per project) |
Loan 80% Subsidy 20% |
Loan 75% Subsidy 25% |
* Subject to continuation of scheme and availability of subsidy from GOI.
Note: Please refer CSISAC scheme on NCDC website (https://www.ncdc.in/) for category of States.
- Construction of work shed and purchase of looms and its accessories, construction / renovation, modernization of showroom/ godown/ ware house etc(under CSISAC Scheme*)
| Developed States/UTs | Under Developed States/UTs | Least Developed States/UTs |
| From NCDC to State Govt. | ||
| Loan 75% Subsidy 15% (Max sub. of Rs.5 Cr per project) |
Loan 70% Subsidy 20% |
Loan 75% Subsidy 25% |
| From State Govt. to society | ||
| Loan 50% | Loan 50% | Loan 50% |
| Share Capital 25% Subsidy 15% (Max sub. of Rs.5 Cr per project) Members’ contribution 10% |
Share Capital 20% Subsidy 20% Members’ contribution 10% |
Share Capital 20% Subsidy 25% Members’ contribution 5% |
| Direct funding | ||
| Loan 65% Subsidy 15% (Max sub. of Rs.5 Cr per project) Members’ contribution 20% |
Loan 65% Subsidy 20% Members’ contribution 15% |
Loan 65% Subsidy 25% Members’ contribution 10% |
* Subject to continuation of scheme and availability of subsidy from GOI.
Note: Please refer CSISAC scheme on NCDC website (www.ncdc.in) for category of States
- Working capital assistance to existing units in the form of loan (under CSISAC Sponsored Scheme*)
Coir, Jute & Sericulture (weaker sections):
- Margin Money for business development (under CSISAC Scheme*)
| Developed States/UTs | Under Developed States/UTs | Least Developed States/UTs |
| From NCDC to State Govt. | ||
| Loan 85% Subsidy 15% (Max sub. of Rs.5 Cr per project) |
Loan 80% Subsidy 15% |
Loan 75% Subsidy 15% |
| From State Govt. to society | ||
| Loan and/or share capital 85% Subsidy 15% Subsidy 25% |
Loan and/or share capital 80% Subsidy 20% |
Loan and/or share capital 75% Subsidy 25% |
| Direct funding | ||
| Loan 85% Subsidy 15% (Max sub. of Rs.5 Cr per project) |
Loan 80% Subsidy 20% |
Loan 75% Subsidy 25% |
* Subject to continuation of scheme and availability of subsidy from GOI.
Note: Please refer CSISAC scheme on NCDC website (www.ncdc.in) for category of States
- Creation of processing infrastructure facilities, Construction / renovation / modernization of showroom/ godown/ware house etc (under CSISAC Scheme*)
| Developed States/UTs | Under Developed States/UTs | Least Developed States/UTs |
| From NCDC to State Govt. | ||
| Loan 75% Subsidy 15% (Max sub. of Rs.5 Cr per project) |
Loan 70% Subsidy 20% |
Loan 75% Subsidy 25% |
| From State Govt. to society | ||
| Loan 50% Share Capital 25% Subsidy 15% (Max sub. of Rs.5 Cr per project) Members’ contribution 10% |
Loan 50% Share Capital 20% Subsidy 20% Members’ contribution 10% |
Loan 50% Share Capital 20% Subsidy 25% Members’ contribution 5% |
| Direct funding | ||
| Loan 65% Subsidy 15% (Max sub. of Rs.5 Cr per project) Members’ contribution 20% |
Loan 65% Subsidy 20% Members’ contribution 15% |
Loan 65% Subsidy 25% Members’ contribution 10% |
* Subject to continuation of scheme and availability of subsidy from GOI.
Note: Please refer CSISAC scheme on NCDC website (www.ncdc.in) for category of States
- Working capital assistance to existing units in the form of loan (under CSISAC Scheme*)
Yuva Sahakar – Cooperative Enterprise Support and Innovation Scheme:
To encourage newly formed cooperatives for taking advantage of innovative ventures, NCDC has introduced a new scheme titled, “Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme” linked to a Cooperative Start-up and Innovation Fund created by NCDC. Please Click here for details of the Scheme.
Norms for Direct Funding:
The following are the broader norms to be eligible for direct funding:
- Net worth should be positive.
- No erosion in paid up share capital.
- Should be in a position to provide 1.25 to 1.50 times security.
- Financial / operational performance of the cooperative should be at satisfactory level of NCDC.
For detailed norms of Direct Funding, please click here.
Dovetailing of Government of India Schemes:
NCDC is one of the 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 Government Schemes:
NCDC facilitates the eligible, assisted, cooperative textile units for availing subsidies provided by the respective State Government under its various schemes, wherever, applicable. For details of scheme, please refer the website of concerned State Government Departments.
Details of Textile Cooperatives assisted since inception:
As on 31.03.2021, 6292 textile cooperative units were assisted by extending financial assistance of Rs. 4185.00 crore as per the details given below:
| S.No. | Activity | Number of Units Sanctioned |
Amount disbursed (Rs in crore) |
|---|---|---|---|
| 1. | Ginning & Pressing | 92 | 31.71 |
| 2. | Spinning | 427 | 3117.37 |
| 3. | Weaving, Processing & Garmenting | 453 | 341.01 |
| 4. | Handloom | 3600 | 469.65 |
| 5. | Coir | 1421 | 177.57 |
| 6. | Jute | 184 | 39.61 |
| 7. | Sericulture | 115 | 8.08 |
| TOTAL | 6292 | 4185.00 |
Loan Application Form for submitting the proposal to NCDC, can be downloaded from our website. Please click here.
For further details, please contact or write to:
Textile Division
National Cooperative Development Corporation (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: mail
ncdc.in
Regional Directorates of NCDC: Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram