Lok Sabha Question No. 130 (UNSTARRED), answered on 2018-12-11
Subject: Loan to Co-operative Societies
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BHARAT SINGH, VINOD KUMAR BOIANAPALLI, AJAY (TENI) MISRA, A.T. (NANA) PATIL, SANTOSH AHLAWAT, SUMEDHANAND SARASWATI, CHANDRA PRAKASH JOSHI

O.I.H

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 130

TO BE ANSWERED ON THE 11 TH  DECEMBER, 2018

## LOAN  TO CO-OPERATIVE  SOCIETIES

130.   SHRI BHARAT  SINGH:

SHRI B. VINOD KUMAR:

SHRI AJAY MISRA TENI:

SHRI A.T. NANA PATIL:

SHRIMATI  SANTOSH AHLAWAT:

SHRI  SUMEDHANAND SARASWATI:

SHRI CHANDRA PRAKASH JOSHI:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  the  Government  has launched  a  new  scheme  'Yuva  Sahakar Cooperative Enterprises    Support    and  Innovating  Scheme'  for  attracting  the  young  entrepreneurs      to cooperative    business  ventures  and  promoting  them  in  cooperative  societies  and  if  so,  the details thereof;
- (b) the total amount of funds allocated by the Government under the said scheme and  the names  of  the  entrepreneurs  to whom the said funds have been provided during each of the last three years, State-wise;
- (c) the  details  of  the  districts  which  are  benefited  and  likely  to  be  benefited  from  the  said scheme in the country, State-wise including Madhya Pradesh and Rajasthan;
- (d) whether  the  Government  has simplified the rules to provide more loans to cooperative societies to enable them to provide  loans  easily  to  the  youths  for self-employment in rural areas; if so, the extent to which the unemployed youths in rural areas likely to be benefited with the  simplified rules; and
- (e) if not, the reasons therefor?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM  RUPALA)

(a) to (c):   Yes,  Madam.   National Cooperative Development Corporation (NCDC) a statutory Corporation under the Department of Agriculture, Cooperation & Farmers Welfare has formally launched  the  scheme  of  'Yuva  Sahakar  Cooperative  Enterprise  Support  and  Innovating Scheme' on 14.11.2018 for extending financial assistance to cooperatives with new innovative Contd..2/-

and  value  chain  enhancement  intended  projects  to  encourage  youth  entrepreneurs.  Salient features  of  the  scheme  is  annexed.  No  funds  have  yet  specifically  been  allocated  under  the scheme.  It  is  envisaged  to  link  the  scheme  to  a  'Cooperative  Startup  and  Innovation  Fund (CSIF)' created by NCDC. Scheme is open to cooperative societies in the country. No proposal has so far been received under the scheme.

(d) & (e):       No Madam,  Under the existing Central Sector Integrated Scheme for Agricultural Cooperation the loans are provided as per already approved rules, however, under the 'Yuva Sahakar Cooperative Enterprise Support and Innovating Scheme' the rules have further been simplified in line of the objectivity of the scheme.

## 'Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme'

1. To  encourage  newly  formed  cooperatives  to  take  advantage  of  innovative  ventures, especially  by  societies  having  new/innovative  idea,  NCDC    introduced    a  new  scheme  titled, ' 'Yuva  Sahakar  -  Cooperative  Enterprise  Support  and  Innovation  Scheme' linked  to  a Cooperative  Startup  and  Innovation  Fund  (CSIF)  which  has  also  been  created  by  National Cooperative Development Corporation.

## 2. The salient  features of the Scheme are as under:

| i.   | Eligibility      | a) All type of cooperative societies with new, innovative ideas and linked to value chain enhancement intended projects. b) In operation for at least one year. c) Have positive net-worth. d) Have not incurred cash loss during previous year(s) of operation and no cash loss in the past three years (if the society is in operation for more than 3 years).                                                                                                                                                                                                                                                                                                             |
|------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ii.  | Project Cost     | Not exceeding Rs.3.00 crore.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| iii. | Loan Period      | Period of loan is upto 5 years, including 2 years moratorium on payment of principal. Period of moratorium may vary, depending on type of project and ability to generate revenue.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| iv.  | Rate of Interest | As an incentive, 2.00% less than the applicable rate of interest on term loan for the project activity. Interest incentive is applicable only for timely repayments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| v.   | Security         | Societies may offer security for the loan in any one or combination of the following to the satisfaction of NCDC: a) Mortgage of assets, including assets to be created under the proposed project. b) FDRs of scheduled banks. c) Guarantee by credible cooperative institutions, i.e. institutions which have sound financial condition and proven track record. d) Guarantee by State / Central Government e) Guarantee by Central PSUs/ Statutory bodies / CSR Foundations of Central PSUs. f) Guarantee by Small Farmers' Agri Business Consortium (SFAC) / North Eastern Development Finance Corporation (NEDFi) / Small Industries Development Bank of India (SIDBI). |

| vi.   | Subsidy         | In case subsidy is eligible for the proposed activity under the Central Sector Integrated Scheme on Agricultural Cooperation (CSISAC) or any other source, the same shall be applicable. To ensure speedy and smooth implementation of project eligible loan shall be provided in-lieu of subsidy and the subsidy, as and when received, would be adjusted against the loan account.                                                                                                                                                                                                                                                                              |
|-------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| vii.  | Funding Pattern | Debt: Equity Ratio for funding the projects would be: Category-A: 80% : 20% for all types societies in North Eastern region. All types of cooperatives registered and operating in Aspirational Districts identified by NITI Ayog. All types of cooperatives with 100% women members. All types of cooperatives with 100% Scheduled Caste/ Scheduled Tribe/ Persons with Physical Disability (PwD) members Category-B: 70% : 30% in case of all those cooperatives not covered under Category-A for all types of activities. In case subsidy is eligible for the proposed activity, subject to availability, the loan component would be reduced proportionately. |

********