Lok Sabha Question No. 1281 (UNSTARRED), answered on 2021-02-09
Subject: Yuva Sahakar Cooperative Enterprise Assistance and Innovation Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rekha Arun Verma, Vinayak Bhaurao Raut, Balashowry Vallabbhaneni

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 1281 TO BE ANSWERED ON THE 9 TH  FEBRUARY, 2021

## YUVA SAHAKAR COOPERATIVE ENTERPRISE ASSISTANCE AND INNOVATION SCHEME

1281.  SHRIMATI REKHA VERMA: SHRI VINAYAK RAUT:

SHRI BALASHOWRY VALLABHANENI:

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  Yuva  Sahakar--Cooperative  Enterprise Support and Innovation Scheme  2019 under the National Cooperative Development Corporation (NCDC) recently;

- (b) if so, the details thereof;

(c) whether  any  support  is  provided  under  the  scheme  to  the  various  agricultural  cooperative societies in the States; and

(d) if  so,  the  details  thereof,  with  a  particular  reference  to  Andhra  Pradesh,  Maharashtra and Uttar Pradesh?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a): National Cooperative Development Corporation (NCDC), a statutory corporation under the  administrative  control  of  Ministry  of  Agriculture  &  Farmers  Welfare  has  launched  'Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme 2019' in October, 2019.

- (b): The details of the scheme are given at Annexure-1 .

(c): Yes  Sir.  All  types  of  cooperatives,  including  agricultural  cooperatives,  are  eligible  for availing  financial  assistance  for  new,  innovative  and  value  chain  enhancement  intended projects under the Scheme.

(d): The details of financial assistance provided under Yuva Sahakar Scheme in the states of Andhra Pradesh, Maharashtra and Uttar Pradesh is as below:

## (Rs. in lakh)

| State          | NCDC Assistance   | NCDC Assistance   | NCDC Assistance   |
|----------------|-------------------|-------------------|-------------------|
|                | Loan              | Subsidy           | Total             |
| Andhra Pradesh | 12.90             | 3.95              | 16.85             |
| Maharashtra    | -                 | -                 | -                 |
| Uttar Pradesh  | -                 | -                 | -                 |

## YUVA SAHAKAR - COOPERATIVE ENTERPRISE SUPPORT AND INNOVATION SCHEME 2019 .

## O Ob bj je ec ct ti iv ve e

Aligning itself with the focus on programmes like Start-up India and Stand-up India aimed at young  entrepreneurs  with  new  and  innovative  ideas  NCDC  had  notified  YUVA  SAHAKARCOOPERATIVE ENTERPRISE SUPPORT AND INNOVATION SCHEME IN 2018. Based on the implementation of the scheme, the scheme has now been made more broad based and is titled,  YUVA  SAHAKAR  -  COOPERATIVE  ENTERPRISE  SUPPORT  AND  INNOVATION SCHEME 2019. The scheme aims at enabling Start-Ups in the Cooperative sector covering all types of activities.

The scheme aims at encouraging newly formed cooperative societies with new and / or innovative ideas. It is linked to a Cooperative Start-up and Innovation Fund created by NCDC. It  is  more  liberal  to  cooperatives  in  the  North  Eastern  Region,  cooperatives  registered  and operating in Aspirational Districts as identified by NITI Aayog, cooperatives with 100 % women / SC / ST / PwD members.

## Eligibility

- a)  Any  type  of  cooperative  society  with  new,  innovative  and  value  chain  enhancement intended projects.
- b)  The cooperative society should be in operation for a minimum of three months.
- c)  The cooperative society should have positive net-worth.
- d)  The cooperative society should not have incurred cash loss during previous year(s) of operation, as applicable, and no cash loss in the past three years (if the society is in operation for more than 3 years).

## Project Cost

- a)  Project cost should not exceed Rs. 3.00 crore in case of a cooperative society which is in operation for one year or more.
- b)  Project cost should not exceed Rs.1.00 crore in case of a cooperative society which is in  operation  for  more  than  three  months  but  less  than  one  year.  However,  once  the cooperative  society  completes  one  year  of  its  operation,  it  would  become  eligible  for assistance as admissible to cooperative society which is in operation for one year or more excluding assistance already availed, if any.
- c)  Depending  on  the  nature  and  activities  of  a  project,  working  capital  loan  can  be provided as part of the project, however, working capital will not be more than 20% of the total project cost.

## Loan Period

Period of  loan  can  be  up  to  5  years,  including  2  years  moratorium  on  payment  of  principal. Period  of  moratorium may vary, depending on the type of project and its ability to  generate revenue.

## Rate of Interest

As an incentive, NCDC will provide 2 % less than its applicable rate of interest on term loan for the project activities. Interest incentive shall be valid only in case of timely repayments.

## S Se ec cu ur ri it ty y

The  cooperative  society  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 the scheduled banks.
- c)  Guarantee  of  credible  cooperative  institutions,  that  is,  institution  with  sound  financial condition and proven track record.
- d)  Guarantee of State/Central Government.
- e)  Guarantee by Central PSUs/ Statutory bodies/CSR Foundations of Central   PSUs.
- f) Guarantee  of  Small  Farmers'  Agri  Business  Consortium  (SFAC)/  North  Eastern Development  Finance  Corporation  (NEDFi)/  Small  Industries  Development  Bank  of India (SIDBI).
- g)  Personal  guarantee  of  Board  of  Directors/members  in  the  form  of  Fixed  Deposit Receipts (FDRs) and/or Guarantee of scheduled banks

## S Su ub bs si id dy y

In case the proposed activity is eligible for subsidy    under     the    Central    Sector Integrated Scheme  on  Agricultural  Cooperation  (CSISAC)  or  any  other  source,  the  same  will  be applicable.  However,  if  the  project  cost  includes  working  capital  loan  component,  CSISAC subsidy  would  be  eligible  only  for  capital  investment  of  the  project  cost  (excluding  working capital).  To  ensure  speedy  and  smooth  implementation  of  projects,  eligible  loan  can  be provided  in-lieu  of  subsidy.  The  subsidy,  as  and  when  received  by  NCDC  for  onward disbursement, would be adjusted against the loan account.

## F Fu un nd di in ng g   P Pa at tt te er rn n

The projects would be supported with funding pattern having debt: equity ratio as below:

## Category - A:

## 80% : 20%

-  Any type of cooperative society in the North Eastern Region.
-  Any  type  of  cooperative  society  registered  and  operating  in  Aspirational  Districts  as identified by the NITI Aayog.
-  Any type of cooperative society with 100% women members.
-  Any  type  of  cooperative  society  with  100%  Scheduled  Caste  /  Scheduled  Tribe  / Person(s) with Disabilities (PwD) members

## Category - B:

## 70% : 30%

-  Any type of cooperative society which is 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.

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