Lok Sabha Question No. 2518 (UNSTARRED), answered on 2021-08-03
Subject: Financial assistance by NCDC
Ministry: COOPERATION
Asked by: Sujay Radhakrishna Vikhepatil, Shrikant Eknath Shinde, Heena Vijaykumar Gavit, Sambhajirao Mane Dhairyasheel, Unmesh Bhaiyyasaheb Patil

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 2518

TO BE ANSWERED ON 3 RD   AUGUST, 2021

## FINANCIAL ASSISTANCE BY NCDC

2518.  Dr. Sujay Radhakrishna Vikhe Patil

Dr. Shrikant Eknath Shinde

Dr. Heena Gavit

Shri Dhairyasheel Sambhajirao Mane

Shri Unmesh Bhaiyyasaheb Patil

## Will the Minister of COOPERATION सहकारिता मंत्री be pleased to state:

- a) the  details of the financial assistance granted to cooperatives by National Cooperative Development Corporation (NCDC) in Maharashtra, district-wise;
- b) the details of the Yuva Sahakar Scheme and the funds sanctioned and disbursed to the State of Maharashtra;
- c) the details of  the  beneficiaries  identified  and  funds  released  under  various  schemes being identified by the Government; and
- d) the steps being taken by the Government to promote the development of cooperatives in the country?

## ANSWER

## MINISTER OF COOPERATION

सहकारिता मंत्री (SHRI AMIT SHAH)

- (a) Since inception (1962-63) to 2020-21 NCDC has cumulatively disbursed Rs. 17438.47 crore in the state of Maharashtra and district wise release from the period of 1990-91 to 2020-21 is at ANNEXURE-I ;
- (b) Details  of  Yuva  Sahakar  Scheme  is  at ANNEXURE-II. No  funds  have  been sanctioned  and  released  under  the  Yuva  Sahakar  scheme  so  far  in  the  state  of Maharashtra.
- (c)&(d) Government  has  taken  several  initiatives for promoting  and  strengthening  of cooperative  sector  in  the  country.  These  inter-alia  includes,  improvement  of  MIS  / PSS, enhanced financial assistance through NCDC, to Cooperatives in the agriculture sector. Assistance under Central Sector Integrated Scheme on Agriculture Corporation  (CSISAC) scheme is provided for training to farmers who are members and  employees  of  various  types  of  cooperative  societies.    Besides,  assistance  is provided under CSISAC scheme to the National Cooperative Development Corporation  (NCDC)  for  promoting,  developing  and  financing  post-harvest  activities through  cooperatives  in  agriculture  sector.    These  comprise,  inter  alia,  marketing, storage  and processing  of  agricultural  produce  besides  supply of  agricultural  inputs.

Subsidy  to  the  tune  of  15%  to  25%  is  provided  to  Cooperatives  depending  on  the category  of  state  in  addition  to  term  loan.  Government  also  provides  Guarantee  for procurement operations of NAFED. Funds released under Central Sector Integrated Scheme on Agriculture Corporation (CSISAC) scheme for the last five years are as under:

(Rs. in lakhs)

| Year    |   Funds released to NCDC |
|---------|--------------------------|
| 2016-17 |                  13001   |
| 2017-18 |                  22801.1 |
| 2018-19 |                  13777.8 |
| 2019-20 |                  19453.2 |
| 2020-21 |                  37914.9 |

## Districts- wise & Year- wise Releases in the state of Maharashtra

| YE   |
|------|

## Annexure-I

(Rs. In Lakh)

|                     |         |              |                 |          |          |          | 776.4     |           | 4258.     |          | 0.00        | 0.00     | 0.00     | 0.00          | 73.33     | 0.00 0.00   | 81.25         |                   | 0.00 0.00     | 1273. 78       | 0.00 0.00    | 0.00   |          | 6463.      |
|---------------------|---------|--------------|-----------------|----------|----------|----------|-----------|-----------|-----------|----------|-------------|----------|----------|---------------|-----------|-------------|---------------|-------------------|---------------|----------------|--------------|--------|----------|------------|
| 200 5- 06 0.00      |    0    | 0.00         | 32.9 4          | 0.00     | 0.00     | 0.00     | 1275. 00  | 0.00      | 6917. 30  | 0.00     | 0.00        | 25.91    | 0.00     | 0.00 1807. 80 | 0.00      | 0.00        | 672.6         | 3 0.00            | 0.00          | 770.2 6        | 0.00         | 0.00   | 0.00     | 11501 .84  |
| 200 6- 07 0.00      |    0    | 0.00         | 14.9 4          | 0.00     | 0.00     | 0.00     | 3688. 00  | 0.00      | 7858. 47  | 0.00     | 0.00        | 10.10    | 0.00     | 0.00 854.6 0  |           | 0.00 0.00   | 3097. 45      | 0.00              | 0.00          | 411.5 0        | 0.00         | 0.00   | 0.00     | 15935 .06  |
| 200 7- 08 1992.29   |    0    | 0.00         | 18.2 1          | 0.00     | 0.00     | 0.00     | 3732. 50  | 0.00      | 1171 0.67 | 0.00     | 0.00        | 10.10    | 0.00     | 0.00          | 429.8 1   | 0.00 0.00   | 1637. 87      | 0.00              | 0.00          | 3645. 83       | 0.00 0.00    |        | 0.00     | 23177 .28  |
| 200 8- 09 0.00      |    0    | 0.00         | 38.5 5          | 0.00     | 0.00     | 459. 30  | 3482. 50  | 0.00      | 1929 1.86 | 0.00     | 0.00        | 10.10    | 0.00     | 0.00 5961. 10 | 0.00      | 0.00        | 782.6 5       | 2248 .50          | 0.00          | 1213. 14       | 0.00         | 0.00   | 0.00     | 33487 .70  |
| 200 9- 10 1817.94   |    0    | 150. 00      | 23.6 8          | 0.00     | 0.00     | 1725 .96 | 3350. 00  | 1315. 68  | 1780 9.86 | 0.00     | 0.00        | 10.10    | 0.00     | 0.00          | 7961. 77  | 0.00 0.00   | 5333. 87      | 4211              | .57 0.00      | 3074. 51       | 0.00         | 0.00   | 0.00     | 46784 .94  |
| 201 0- 11 1380.26   |    0    | 820. 01      | 14.6 5          | 2513 .13 | 0.00     | 1309 .63 | 7006. 96  | 1297. 82  | 2054 8.58 | 0.00     | 0.00        | 7.55     | 3483 .00 | 1304.73       | 4944. 29  | 0.00        | 0.00 6683. 29 |                   | 5850 .08 0.00 | 8669. 91       | 0.00         | 0.00   | 0.00     | 65833 .90  |
| 201 1- 12 908.12    |    0    | 589. 83      | 0.37            | 0.00     | 0.00     | 0.00     | 11529 .72 | 1250 0.00 | 2121 1.15 | 0.00     | 0.00        | 0.00     | 1326 .47 | 400.41        | 1181 3.67 | 0.00 0.00   | 1225 4.09     | 0.00              | 0.00          | 4542 8.35 0.00 |              | 0.00   | 0.00     | 11796 2.17 |
| 201 2- 13 3814.73   |    0    | 8715 .66     | 0.00            | 0.00     | 0.00     | 0.00     | 10254 .63 | 8400. 00  | 8379. 64  | 0.00     | 0.00        | 0.00     | 0.00     | 0.00          | 1454 4.64 | 0.00        | 0.00          | 4303. 44 3035 .74 | 0.00          | 8069 9.35 0.00 |              | 0.00   | 0.00     | 14214 7.83 |
| 201 3- 14 999.70    |    0    | 2893 .73     | 0.00            | 0.00     | 0.00     | 0.00     | 10694 .22 | 1011 3.60 | 8182. 36  | 0.00     | 0.00 0.00   | 0.00     | 0.00     | 1800 6.02     | 0.00      | 0.00        |               | 1146 8.32 880.    | 00 0.00       | 1291 8.14      | 0.00         | 0.00   | 0.00     | 76156 .09  |
| 201 4- 15 10448.9 2 |    0    | 1533 .35     | 0.00            | 0.00     | 0.00     | 0.00     | 7030. 84  | 1821 3.60 | 4792. 60  | 0.00     | 0.00        | 0.00     | 0.00     | 283.52        | 9996. 48  | 0.00        | 0.00          | 1243 2.12 0.00    | 0.00          | 2593. 90       | 0.00 0.00    |        | 0.00     | 67325 .34  |
| 201 5- 16 21883.5 5 |    0    | 0.00         | 0.00            | 0.00     | 0.00     | 0.00     | 6054. 47  | 1305 1.00 | 3865. 31  | 0.00     | 0.00 2620.0 | 0        | 0.00     | 1869.32       | 6143. 37  | 0.00        | 0.00          | 1308 3.15 95.9    | 2 0.00        | 2752 3.00      | 0.00 0.00    |        | 1500. 00 | 97689 .09  |
| 201 6- 17 22726.8 8 |    0    | 5026 .26     | 3500 .00        | 0.00     | 3840 .58 | 0.00     | 23907 .52 | 5000. 00  | 626.9 0   | 0.00     | 0.00        | 3860.0 0 | 0.00     | 212.70        | 1846 8.30 | 1217 .92    | 240.0 8       | 8659 9.37 484.    | 48 193.98     | 3558 6.75      | 221. 55 0.00 |        | 1480. 00 | 21319 3.27 |
| 201 7- 18 14207.9 5 |    0    | 2742 .23     | 0.00            | 0.00     | 3746 .43 | 0.00     | 58487 .45 | 0.00      | 41.54     | 2000 .00 | 0.00        | 7387.0 0 | 0.00     | 0.00          | 2390 0.41 | 18.9 2      | 357.2 0       | 7257 0.82         | 3786 .12 0.00 | 3052 3.40      | 72.7 4 0.00  |        | 4735. 20 | 22457 7.41 |
| 201 8- 19 3175.03   |    0    | 1612 .55     | 0.00            | 0.00     | 1071 .35 | 9487 .95 | 39008 .80 | 0.00      | 0.00      | 2730 .00 | 1703 .29    | 3560.0 0 | 0.00     | 0.00          | 3595 2.76 | 0.00        | 0.00          | 4009 0.57 1011    | .84 0.00      | 3882 5.00      | 0.00         | 0.00   | 197.9 7  | 17842 7.11 |
| 201 9- 20           | 1183.62 | 0.00 136. 73 | 50.0 0          | 0.00     | 114. 87  | 4910 .00 | 23571 .28 | 0.00      | 0.00      | 2856 .38 | 0.00        | 0.00     | 0.00     | 0.00          | 1188 9.21 | 0.00 0.00   | 2586 5.49     |                   | 693. 32 0.00  | 3006 1.70      | 0.00         | 0.00   | 173.9 4  | 10150 6.54 |
| 202 0- 21 650.00    |    0    |              | 915. 76 475. 00 | 0.00     | 1075 .31 | 5591 .30 | 21502 .71 | 0.00      | 186.0 9   | 1368 .90 | 0.00        | 0.00     | 0.00     | 0.00          | 1796 2.60 | 0.00 0.00   | 3870 1.00     |                   | 1046 .02 0.00 | 2458 8.00      | 0.00         | 0.00   | 496.4 4  | 11455 9.10 |

## YUVA SAHAKAR- COOPERATIVE ENTERPRISE SUPPORT AND INNOVATION SCHEME

The scheme aims at enabling Start-Ups in the Cooperative sector covering all types of activities.

## 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.

## Security

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.

## Subsidy :

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.

## Funding Pattern:

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

## Category - A:

80% : 20%

## Category - B:

70%: 30%

- -Any  type  of  cooperative  society  which  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.

*****

- -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