Lok Sabha Question No. 445 (UNSTARRED), answered on 2023-12-05
Subject: Assistance for Cooperatives
Ministry: COOPERATION
Asked by: Umesh G. Jadhav, Prathap Simha, Annasaheb Shankar Jolle

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 445 TO BE ANSWERED ON  05/12/2023

## Assistance for Cooperatives

445. DR. UMESH G. JADHAV: SHRI PRATHAP SIMHA: SHRI ANNASAHEB SHANKAR JOLLE:

Will the Minister of COOPERATION (सहकाįरता मंũी) be pleased to state:

- (a) the manner in which the Government is helping the States, particularly Karnataka to push and strengthen cooperative movement particularly in dairy and sugar sectors; and
- (b) the incentives that Government is giving/proposing to give to States which are pushing to help the farming community particularly the sugar sector during the last four years?

## ANSWER

## THE MINISTER OF COOPERATION सहकाįरता मंũी (SHRI AMIT SHAH)

- (a): In order to realize the vision of 'Sahakar se Samriddhi', Ministry of Cooperation has taken 54 initiatives, details given at Annexure-I to strengthen the cooperative sector including dairy and sugar cooperatives of all States/UTs including the State of Karnataka.

Further, the National Dairy Development Board is implementing following schemes of GOI in the country, including Karnataka State to develop the dairy cooperatives and push the cooperative movement:

- i. National Programme for Dairy Development (NPDD).
- ii. Dairy Processing & Infrastructure Development Fund (DIDF)
- iii. Supporting Dairy Cooperatives & Farmer Producer Organizations (SDCFPO).
- iv. Rashtriya Gokul Mission (RGM)
- v. National Livestock Mission (NLM)

The details on schemes being implemented for the dairy cooperatives in Karnataka state are given at Annexure-II.

(b): In order to strengthen sugar cooperatives which provides livelihood to 2.5 crore sugar cane farmers and their families, the Government has taken following steps:

## 1. Relief  to  sugar  cooperatives  by  providing  deduction  on  account  of  the  amount incurred for purchase of sugarcane.

Through  Finance Act,  2015,  Section  36(1)(xvii)  was  inserted  in  Income  Tax Act  1961  to provide for deduction on account of the amount of expenditure incurred by a cooperative society engaged in the business of manufacture of sugar. The measure came into force w.e.f. 1.4.2016 i.e. assessment year 2016-17. However, the issue of treatment of additional payment for sugarcane price by CSMs as an income distribution to farmer members and resultant tax liabilities remained uncovered which was clarified by Central Board of Direct Taxes vide Circular No 18/2021 dated 25.10.2021. Accordingly, resultant tax liabilities on CSMs on additional payment for sugarcane price by them were mitigated w.e.f. 1.4.2016.

## 2. Resolving decades old pending issues related to income tax of Cooperative Sugar Mills

An opportunity has been provided to sugar co-operatives to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure. Accordingly, section 155 of the IT Act has also been amended to insert a new sub-section (19) vide Finance Act, 2023, w.e.f. 1st April  2023.    In  order  to  standardize  the  manner  of  filing  application  to  the  Jurisdictional Assessing  Officer  under  sub-section  (19)  of  section  155  of  the  Act  and  its  disposal  by  the Jurisdictional Assessing Officer under the said section, CBDT vide Circular No. 14 of 2023 dated 27.07.2023 has issued Standard Operating Procedure for making application by the concerned Cooperative  Sugar  Mills.  This  has  resolved  the  income  tax  issues  in  this  matter  pending  for decades. This is expected to provide relief of almost ₹10,000 crore.

## 3. ₹10,000 Crore loan scheme through National Cooperative Development Corporation (NCDC) for strengthening of Cooperative Sugar Mills

Ministry of Cooperation has launched a new central sector scheme named 'Grant-in-aid to NCDC for Strengthening of Cooperative Sugar Mills' for implementation during financial year 2022-23 and 2023-24 with total outlay of ₹1,000 crore. The NCDC is implementing agency of the scheme. Under this scheme grant of ₹1000 Cr. will be provided to NCDC, who will leverage the grant up to 10 times to provide loans up to ₹10,000 crore to Cooperative Sugar Mills for purpose of setting up ethanol plants or setting up cogeneration plants or for working capital or for all three purposes.

## 4. Preference in purchase of ethanol to Cooperative Sugar Mills

Cooperative Sugar Mills will be put at par with private companies for ethanol procurement by the Ministry of Petroleum under the Ethanol Blending Programme (EBP).

## 5. Reduction in GST on Molasses from 28% to 5% to help cooperative Sugar Mills.

The government has decided to reduce GST on molasses from the current rate of 28% to 5%. This will  increase  the  liquidity  of  distilleries  as  molasses  is  the  raw  material  for  their  operations. Cooperative Sugar mills which do not have ethanol or distillery plants can earn more profits by selling their molasses to distilleries with higher margins.

In addition to above, the Central Government has taken various steps in the form of policy interventions from time to time as and when required for sugarcane farmers and sugar sector, which are as under:

(i) Central Government fixes Fair and Remunerative Price (FRP) of sugarcane having regard to the factors mentioned in Clause 3(1) of the Sugarcane (Control) Order, 1966.

(ii) Minimum Selling Price of sugar was fixed to prevent fall in ex-mill prices of sugar & accumulation of cane arrears (initially at ₹ 29/ kg  w.e.f  07-06-2018; revised to ₹ 31/kg w.e.f. 14-02-2019).

(iii) Financial  assistance  of  more  than  ₹  18,000  crore  extended  to  mills  resulting  in clearance  of  farmers'  dues  during  7  years  i.e.  sugar  season  2014-15  to  2020-21.  In Karnataka, more than ₹ 1600 crore has been released to sugar mills under various Subsidy Schemes.

(iv) Diversion  of  surplus  sugar  to  production  of  ethanol  led  to  improved  financial conditions of sugar mills. As a result, they are able to clear cane dues early.

As a result of these measures, more than 99.9% of cane dues up to sugar seasons 2021-22 have been cleared. For the previous sugar season 2022-23, a payment to the tune of about Rs. 1.12 Lakh crores has been released to sugarcane farmers thereby clearing more than 98% cane dues of the farmers.

*****

## Ministry of Cooperation

Ministry of Cooperation, since its inception on 6 th July,  2021,  has  undertaken  several  initiatives  to realize the vision of 'Sahakar-se-Samriddhi' and to strengthen & deepen the cooperative movement from Primary to Apex level Cooperatives in the country. List of initiatives taken and progress made so far are as follows:

## A. Making Primary Cooperatives transparent and economically vibrant

1. Model Bye-Laws for PACS  making them multipurpose, multidimensional and transparent entities : Government, in consultation with all the stakeholders, including States/ UTs,  National Level Federations, State Cooperative  Banks  (StCBs),  District Central Cooperative Banks (DCCBs), etc., has prepared and circulated Model Byelaws for PACS to all the States/ UTs, which enable PACS to undertake more than 25 business activities, improve governance, transparency and accountability in their operations. Provisions have also been made to make the membership of PACS more inclusive and broad-based, giving adequate representation to women and Scheduled Castes/Schedules Tribes. Model Byelaws have been adopted by 31 States/ UTs so far.
2. Strengthening of PACS through Computerization : In order to strengthen PACS, project for Computerization of 63,000 functional PACS with a total financial outlay of ₹2,516 Crore has been approved by the Government of India, which entails bringing all functional PACS in the Country onto a common ERP based national software, linking them with NABARD through StCBs and DCCBs. A total of 62,318 PACS have been sanctioned from 28 States/ UTs under the project. Software is ready and trials have already started in 5,673 PACS in 26 States/ UTs so far.
3. New Multipurpose PACS/ Dairy/ Fishery Cooperatives in uncovered Panchayats : A plan has been approved by the Government to set up new multi-purpose PACS or primary dairy/ fisheries cooperatives covering every Panchayat/ village in the next five years, with support of NABARD, NDDB, NFDB, NCDC and other National level Federations. As reported by the States/ UTs, the process for registering 9,961 new PACS/ Dairy/ Fishery cooperative societies in 23 States/ UTs is in various stages.
4. World's Largest Decentralized Grain Storage Plan in Cooperative sector :  Government has approved a plan to create warehouses, custom hiring centres, primary processing units and other agri-infra for grain storage at PACS level, by converging various schemes of Government such  as  AIF,  AMI,  SMAM,  PMFME,  etc.  This  will  reduce  wastage  of  food  grains  and transportation costs, enable farmers to realize better prices for their produce and meet various agricultural  needs  at  the  PACS  level  itself.  22  States/  UTs  and  National  level  Cooperative Federations  such  as  National  Cooperative  Consumers  Federation  (NCCF)  and  National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), have identified 1,690 PACS for creation of storage capacity under the Pilot Project. At present, construction is going in 13 PACS of 13 States/ UTs under the Pilot Project.

## Annexure-I

5. PACS as Common Service Centers (CSCs) for better access to e-services : MoU has been signed between Ministry of Cooperation, MeitY, NABARD and CSC e-Governance Services India  Limited  for  providing  more  than  300  e-services  such  as  banking,  insurance, Aadhar enrolment/  updation,  health  services,  PAN  card  and  IRCTC/  Bus/ Air  ticket,  etc.  through PACS. So far, 24,470 PACS have started providing CSC services to the rural citizens and increase incomes of PACS at the same time.
6. Formation of new Farmer Producer Organizations (FPOs) by PACS :  Government  has allowed 1,100 additional FPOs to be formed by PACS with the support of NCDC, in those blocks  where  FPOs  have  not  yet  been  formed  or  the  blocks  are  not  covered  by  any  other implementing agency. This will be helpful in providing the farmers with necessary market linkage and get fair and remunerative prices for their produce.
7. PACS given priority for Retail Petrol/ Diesel outlets : Government has allowed PACS to be included in the Combined Category 2 (CC2) for allotment of retail petrol/ diesel outlets. As per information received from Oil Marketing Companies (OMCs), a total of 228 PACS have applied online for retail petrol/ diesel outlets.
8. PACS given permission to convert bulk consumer petrol pumps into retail outlets : Based on the discussions with the Ministry of Petroleum and Natural Gas, guidelines have been issued to convert the existing bulk consumer licensee PACS into retail outlets for increasing the profit of PACS and generate employment opportunities in rural areas. 109 PACS from 5 States having wholesale consumer pumps have given consent for conversion into Retail Outlets, out of which 43 PACS have received Letter of Intent (LOI) from the OMCs.
9. PACS eligible for LPG Distributorship for diversifying its activities : Government has now allowed PACS to apply for LPG Distributorships. This will give PACS an option to increase their  economic  activities  and  create  new  employment  opportunities  in  rural  areas.  Two locations have already been advertised in the State of Jharkhand.
10. PACS as PM Bharatiya Jan Aushadhi Kendra for improving access to generic medicines at  rural  level :  Government  is  promoting  PACS  to  operate  Pradhan  Mantri  Bhartiya Janaushadhi Kendras which will provide additional income source to them and provide easy access of generic medicines to rural citizens. So far, 4,289 PACS/ cooperative societies have applied online for PM Janaushadhi Kendras, out of which 2,293 PACS have been given initial approval also.
11. PACS as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK): Government is promoting PACS to operate PMKSK for ensuring easy accessibility of fertilizer & related services to farmers  in  the  country.  As  per  the  information  shared  by  States/  UTs,  28,648  PACS  are functioning as PMKSK so far.
12. Convergence of PM-KUSUM at PACS level : Farmers associated with PACS can adopt solar agricultural water pumps and install photovoltaic modules in their farms.
13. PACS to carry out O&M of rural piped water supply schemes (PWS) : In order to utilize the reach of PACS in rural areas, on the initiative of the Ministry of Cooperation, Ministry of Jal Shakti has allowed PACS to carry out the Operations & Maintenance (O&M) of PWS in rural areas. As per information received from States/ UTs, 1,381 PACS have been identified by 12 States/ UTs to provide O&M services at Panchayat/ Village level.
14. Micro-ATMs  to  Bank  Mitra  Cooperative  Societies  for  providing  doorsteps  financial services : Dairy and Fisheries cooperative societies can be made Bank Mitras of DCCBs and StCBs. To ensure their ease of doing business, transparency and financial inclusion, MicroATMs are also being given to these Bank Mitra Co-operative Societies with support from NABARD to provide 'Door Step Financial Services'. As a pilot project, 1,723 Micro-ATMs have been distributed to Bank Mitra cooperative societies in Panchmahal and Banaskantha Districts of Gujarat.
15. Rupay Kisan Credit Card to Members of Milk Cooperatives : In order to expand the reach of DCCBs/ StCBs and to provide necessary liquidity to the members of Dairy Cooperative societies,  Rupay  Kisan  Credit  Cards  (KCCs)  are  being  distributed  to  the  members  of cooperatives  for  providing  credit  at  comparatively  lower  interest  rates  and  enable  other financial  transactions.  As  a  pilot  project,  73,503  Rupay  KCC  have  been  distributed  in Panchmahal and Banaskantha Districts of Gujarat.
16. Formation of Fish Farmer Producer Organization (FFPO) :  In  order  to  provide  market linkage and providing processing facilities to the fishermen, NCDC has registered 69 FFPOs in  the  initial  phase.  Department  of  Fisheries,  Government  of  India  has  further  allocated conversion  of  1000  existing  fisheries  cooperative  societies  into  FFPOs  to  NCDC,  with  an approved outlay of Rs 225.50 crore.

## B. Strengthening the Urban and Rural Cooperative Banks

17. UCBs have been allowed to open new branches to expand their business: UCBs can now open new branches up to 10% (maximum 5 branches) of the existing number of branches in the previous financial year without prior approval of RBI.
18. UCBs have been allowed by RBI to offer doorstep services to their customers: Door step banking facility can now be provided by the UCBs. Account holders associated with these banks can now avail various banking facilities at home such as cash withdrawal, cash deposit, KYC, demand draft and life certificate for pensioners, etc.
19. Cooperative banks have been allowed to make one-time settlement of outstanding loans, like  Commercial  Banks: Co-operative  banks,  through  board-approved  policies,  can  now provide process for technical write-off as well as settlement with borrowers.
20. Time limit increased to achieve Priority Sector Lending (PSL) targets given to UCBs : RBI has extended the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by two years i.e., up to March 31, 2026.
21. A Nodal Officer designated in RBI for regular interaction with UCBs : In order to meet the long pending demand of the cooperative sector for closer coordination and focused interaction, RBI has notified a nodal officer as well.
22. Individual  housing  loan  limit  more  than  doubled  by  RBI  for  Rural  and  Urban  Cooperative Banks:
- a. Housing loan limit of Urban cooperative banks have now been doubled from Rs 30 lakh to Rs 60 lakh.
- b. Housing loan limit of Rural cooperative banks has been increased to two and a half times to Rs 75 lakh.
23. Rural Co-operative Banks will now be able to lend to commercial real estate/ residential housing  sector,  thereby  diversifying  their  business :  This  will  not  only  help  Rural  cooperative banks to diversify their business, but benefit Housing co-operative societies also.
24. License fee reduced for Cooperative Banks : License fee for onboarding Cooperative Banks to 'Aadhaar Enabled Payment System' (AePS) has been reduced by linking it to the number of transactions. Cooperative financial institutions will also be able to get the facility free of cost for the first three months of the pre-production phase. With this, farmers will now be able to get the facility of banking at their home with their fingerprints.
25. Non-scheduled  UCBs,  StCBs  and  DCCBs  notified  as  Member  Lending  Institutions (MLIs) in CGTMSE Scheme to increase the share of cooperatives in lending: The cooperative banks will now be able to take advantage of risk coverage up to 85 percent on the loans given. Also, cooperative sector enterprises will also be able to get collateral free loans from co-operative banks now.
26. Notification of Scheduling norms for including Urban Co-operative Banks: UCBs that meet the 'Financially Sound and Well Managed' (FSWM) criteria and have maintained the minimum deposits required for classification as Tier 3 for the last two years are now eligible to be included in Schedule II of the Reserve Bank of India Act 1934 and get 'Scheduled' status.
27. Monetary ceiling doubled by RBI for Gold Loan: RBI has doubled monetary ceiling from Rs. 2 lakh to Rs.4 lakh, for those UCBs that meet the PSL targets.
28. Umbrella Organization for Urban Cooperative Banks : RBI has accorded approval to the National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) for

the  formation  of  an  Umbrella  Organization  (UO)  for  the  UCB  sector,  which  will  provide necessary IT infrastructure and operation support to around 1,500 UCBs.

## C. Relief to Cooperative Societies in the Income Tax Act

29. Surcharge reduced from 12 % to 7% for co-operative societies having income between Rs. 1 to 10 Cr.: This will reduce the burden of Income Tax on Cooperative Societies and more capital will be available with them to work for the benefit of their members.
30. MAT reduced for cooperatives from 18.5% to 15%: With this provision, now there is parity between Cooperative Societies and Companies in this regard.
31. Relief in cash transactions under section 269ST of the Income Tax Act: In order to remove difficulties in cash transactions by cooperatives under Section 269ST of IT Act, Government has issued a clarification that cash transaction of less than Rs. 2 lakhs done by a cooperative society with its distributor in a day will be considered separately, and will not be charged with income tax penalty.
32. Tax cut for new manufacturing Cooperative societies: Government has decided that a flat lower tax rate of 15% will be charged, compared to an earlier rate of up to 30% plus surcharge, for  new  cooperatives  commencing  manufacturing  activities  by  March  31,  2024.  This  will encourage the formation of new cooperative societies in the manufacturing sector.
33. Increase in limit of Cash Deposits and Cash Loans by PACS and PCARDBs: Government has enhanced the limit for Cash Deposits and Cash Loans by PACS and Primary Cooperative Agriculture  and  Rural  Development  Banks  (PCARDBs) from  Rs  20,000  to  Rs  2  lakh  per member.  This  provision  will  facilitate  their  activities,  increase  their  business  and  benefit members of their societies.
34. Increase in the limit of Tax Deducted at Source (TDS) in Cash Withdrawal: Government has increased the cash withdrawal limit of cooperative societies without deduction of tax at source from Rs.1 crore to Rs.3 crore per year. This provision will save Tax Deducted at Source (TDS) for cooperative societies, which will enhance liquidity of the cooperative society.

## D. Revival of Cooperative Sugar Mills

35. Relief from Income Tax to Sugar Cooperative Mills : Government has issued a clarification that Sugar cooperative mills would not be subjected to additional income tax for paying higher sugarcane prices to farmers up to Fair and Remunerative or State Advised Price, from April, 2016 onwards.
36. Resolution of decades old pending issues related to Income Tax of Sugar Cooperative Mills :  Government  has  made  a  provision  in  its  Union  Budget  2023-24,  wherein  Sugar cooperatives have been allowed to claim as expenditure their payments to sugarcane farmers for the period prior to assessment year 2016-17, giving a relief of more than Rs.10,000 crores.
37. Rs. 10,000 crore loan scheme launched for strengthening of Sugar Cooperative Mills : Government  has  launched  a  scheme  through  NCDC  for  setting  up  ethanol  plants  or cogeneration plants or for working capital or for all three purposes. Loan amount of Rs. 3,010 cr. has been sanctioned by NCDC to 24 Cooperative Sugar Mills so far.
38. Preference to Cooperative Sugar Mills in purchase of ethanol :  Cooperative Sugar Mills have now been put at par with private companies for ethanol procurement by Government of India under the Ethanol Blending Programme (EBP).
39. Reduction in GST on molasses from 28% to 5%: Government has decided to reduce the GST on molasses from 28% to 5% which will enable cooperative sugar mills to earn more profits for its members by selling molasses to distilleries with higher margins.

## E. Three new Multi-State Societies at the National Level

40. New National Multi-State Cooperative Seed Society for certified seeds : Government has established a new apex multi-state cooperative seed society under the MSCS Act, 2002, namely Bharatiya Beej Sahakari Samiti Limited (BBSSL) as an umbrella organization for quality seed cultivation,  production  and  distribution  under  a  single  brand.  8,200  PACS/  cooperative societies from 27 States/ UTs have become its members so far.
41. New National Multi-State Cooperative Organic Society for organic farming : Government has established a new apex multi-state cooperative organic society under the MSCS Act, 2002, namely  National  Cooperative  Organics  Limited  (NCOL)  as  an  umbrella  organization  to produce,  distribute  and  market  certified  and  authentic  organic  products.  2,475  PACS/ cooperative societies from 24 States/ UTs have become its members so far. 6 organic products have already been launched by NCOL so far.
42. New National Multi-State Cooperative Export Society for promoting exports : Government  has  established  a  new  apex  multi-state  cooperative  export  society  under  the MSCS Act,  2002,  namely  National  Cooperative  Export  Limited  (NCEL)  as  an  umbrella organization  to  give  thrust  to  exports  from  cooperative  sector.  2,625  PACS/  cooperative societies  from  22  States/  UTs  have  become  its  members  so  far.  Till  date,  NCEL  has  got permission to export 14.92 LMT rice to 16 countries and 50,000 MT sugar to 2 countries.

## F. Capacity Building in Cooperatives

43. Establishment  of  the  Cooperative  University: Steps  are  being  taken  by  Ministry  of Cooperation for setting up of a National Cooperative University for Cooperative education, training, consultancy, research and development and a sustainable and quality supply of trained manpower.
44. Promotion of training and awareness through National Council for Cooperative Training (NCCT) : By increasing its reach, NCCT has conducted 3,287 training programs and provided training to 2,01,507 participants in FY 2022-23.

## G. Use of Information Technology for 'Ease of Doing Business'

45. Computerization  of  the  Central  Registrar's  Office :  Central  Registrar's  office  has  been computerized to create a digital ecosystem for Multi-State Cooperative Societies, which will assist in processing applications and service requests in a time bound manner.
46. Scheme for computerization of office of RCSs in States and Union Territories : To increase 'Ease  of  doing  business'  for  Cooperative  Societies  and  create  a  digital  ecosystem  for transparent paperless regulation in all States/Union Territories, a Centrally Sponsored Project for computerization of RCS Offices has been approved by the Government. Grants will be provided for purchase of hardware, development of software, etc. to the States/ UTs.
47. Computerization of Agriculture and Rural Development Banks (ARDBs) : To strengthen the Long-term Cooperative Credit structure, the project of computerization of 1,851 units of Agriculture and Rural Development Banks (ARDBs) has been approved by the Government. NABARD  is  the  implementing  agency  for  the  project  and  will  develop  a  national  level software  for  ARDBs.  Hardware,  support  for  Digitization  of  legacy  data,  training  to  the employees, etc. will be provided under the project.

## H. Other Initiatives

48. New  National  Cooperative  Database  for  authentic  and  updated  data  repository :  A database  of  cooperatives  in  the  country  has  been  prepared  with  the  support  of  State Governments to facilitate stakeholders in policy making and implementation of programmes/ schemes  related  to  cooperatives  across  the  country.  So  far,  data  of  around  7.86  lakh cooperatives has been captured in the database.
49. Formulation of New National Cooperative Policy : A National level committee comprising 49 experts and stakeholders drawn from all over the Country has been constituted to formulate the New National Cooperative Policy for enabling a vibrant ecosystem to realize the vision of 'Sahakar-se-Samriddhi'.
50. Multi-State Co-operative Societies (Amendment) Act, 2023 : Amendment has been brought in the MSCS Act, 2002 to incorporate provisions of 97 th Constitutional Amendment, strengthen governance, enhance transparency, increase accountability and reform electoral process in the Multi State Cooperative Societies.
51. Inclusion  of  Cooperatives  as  'buyers'  on  GeM  portal :    Government  has  permitted  the cooperatives to register as 'buyer' on GeM, enabling them to procure goods and services from nearly over 67 lakh vendors to facilitate economical purchases and greater transparency. So far, 559 cooperative societies onboarded on GeM as buyers.
52. Expansion of National Cooperative Development Corporation (NCDC) to increase its range and depth : NCDC has launched new schemes in various sectors such as 'Swayamshakti Sahkar' for SHGs; 'Deerghavadhi Krishak Sahkar' for long term agricultural credit; 'Dairy Sahkar'  for  dairy  and  'Neel  Sahkar'  for  fisheries.  Total  financial  assistance  of  Rs.  41,024 Crores has been disbursed by NCDC in FY 2022-23, which is almost 20% higher than the disbursement of Rs.34,221 crore in 2021-22. Government of India has permitted NCDC to issue  bonds  worth  ₹2000  crore  with  government  guarantee,  subject  to  the  adherence  of specified terms and conditions. Further, NCDC is setting up sub-offices in 6 North Eastern States - Arunachal Pradesh, Meghalaya, Mizoram, Manipur, Nagaland and Tripura with the objective of taking various national schemes to the cooperative societies at their doorstep.
53. Financial  assistance  by  NCDC  for  Deep  Sea  Trawlers :  NCDC  is  providing  financial assistance for  projects  related  to  deep  sea  trawlers  in  coordination  with  the  Department  of Fisheries, Government of India. NCDC has already sanctioned financial assistance of Rs 20.30 crore  for  purchase  of  14  deep  sea  trawlers  for  the  Fisheries  Cooperative  Societies  of Maharashtra.
54. Refund to Investors of Sahara Group of Societies : A portal has been launched for making payments  to  the  genuine  depositors  of  the  cooperative  societies  of  Sahara  Group  in  a transparent  manner.  Disbursement  have  already  started  after  proper  identification  and submission of proof of their deposits and claims.

*****

1. Dairy  Processing  &  Infrastructure  Development  Fund :,  Dairy  Cooperative  Union  wise status in Karnataka State as on 31 October 2023 are provided below:

(Rs.in Crore)

| Sr No   | End Borrower name                                                 | Funding Agency   |   Total Outlay |   Loan sanctioned |   EB Margin |   Loan disbursed till 31 October 2023 | Remarks               |
|---------|-------------------------------------------------------------------|------------------|----------------|-------------------|-------------|---------------------------------------|-----------------------|
| 1       | KMF Ramnagara, Karnataka                                          | NABARD           |         300    |            210    |       90    |                                205.29 | Project is completed. |
| 2       | Mysore Milk Union, Karnataka                                      | NABARD           |         121.66 |             63.87 |       57.79 |                                 63.87 | Project is completed. |
| 3       | Dakshina Kananda Milk Union, Karnataka                            | NABARD           |          86.42 |             55    |       31.42 |                                 51.76 | Project is completed. |
| 4       | Kolar Milk Union, Karnataka                                       | NABARD           |         158.9  |            103.18 |       55.73 |                                 83.94 | Project is completed. |
| 5       | KMF Channarayapatna, Karnataka                                    | NABARD           |         109.41 |             87.53 |       21.88 |                                 58.08 | Project is completed. |
| 6       | Chamarajanagar Milk Union, Karnataka                              | NABARD           |         124.72 |             60    |       64.72 |                                 55.83 | Project is completed. |
| 7       | Bengaluru Urban, Bengaluru Rural &Ramnagara Milk Union, Karnataka | NABARD           |         499.73 |            200    |      299.73 |                                191.39 | Project is completed. |
| 8       | Hassan Milk Union, Karnataka                                      | NDDB             |         810    |            350    |      460    |                                138.84 | Project is on-going.  |
| 9       | Tumkur Milk Union                                                 | NDDB             |         154.03 |            123.22 |       30.81 |                                 15.39 | Project is on-going.  |
| 10      | Mysore Milk Union                                                 | NDDB             |         115.03 |             92.03 |       23.01 |                                  0.36 | Project is on-going.  |
| Total   | Total                                                             | Total            |        2479.9  |           1344.82 |     1135.08 |                                864.74 |                       |

2. Supporting Dairy Cooperatives and Farmer Producer Organisations engaged in dairy activities - Interest subvention for working capital loans

Details of Interest Subvention disbursed in the state of Karnataka during the year 2020-21, 2021-22, 2022-23 and 2023-24 as on November 20, 2023 are given below:

(Rs. in Crore)

| Sr. No.   | Year      | Interest Subvention sanctioned   | Interest Subvention sanctioned   | Interest Subvention sanctioned   | Regular Interest Subvention Disbursed @2%p.a.   | Additional Interest Subvention Disbursed 2% p.a.   | Total Interest Subvention   |
|-----------|-----------|----------------------------------|----------------------------------|----------------------------------|-------------------------------------------------|----------------------------------------------------|-----------------------------|
| Sr. No.   | Year      | No. of Co- ops                   | Working Capital Loan             | Subvention Amount @2%p.a.        |                                                 |                                                    | Disbursed                   |
| 1         | 2020-2021 | 12                               | 777.88                           | 9.81                             | 4.89                                            | 4.89                                               | 9.79                        |
| 2         | 2021-2022 | 12                               | 794.75                           | 10.75                            | 5.07                                            | 5.07                                               | 10.14                       |
| 3         | 2022-2023 | 4                                | 220.62                           | 3.21                             | 0.56                                            | 0.56                                               | 1.12                        |
| 4         | 2023-2024 | 4                                | 234.75                           | 3.07                             | 0.27                                            | 0.00                                               | 0.27                        |
| Total     | Total     | Total                            | Total                            | 26.84                            | 10.79                                           | 10.52                                              | 21.32                       |

3. Accelerated  Breed  Improvement  Programme-using  sexed  semen  for  getting  assured pregnancy (ABIP-SS) under RGM: ABIP-SS was sanctioned under RGM to promote the use of sexed semen for the production of a greater number of female calves of various breeds of cattle  and  buffalo  with  90%  accuracy,  including  indigenous  breeds.  The  project  has  been approved for 21 State Implementing Agencies including Karnataka Livestock Development Agency. Total outlay for this project for Karnataka State is Rs. 42.08 Crore. Under this project, subsidy of Rs. 425 is provided to farmers for AI with sex sorted semen doses (upto maximum 2 AI for each animal in each lactation).
4. National  Livestock  Mission: Under  this  scheme,  incentives  have  been  provisioned  for production of Breeder seed (up to Rs. 250 per kg), Foundation seed (up to Rs. 150 per kg) and Certified seed (up to Rs. 100 per kg) for fodder seed growers.

In 2022-23 Kharif season, financial assistance of Rs. 996 lakh was provided to four milk unions (Tumkur,  Bengaluru,  Raichur-Bellary  and  Kolar  Milk  Unions)  in  Karnataka  state  for  the production of 10,462 quintals of fodder seed of maize and sorghum crop. For Kharif Season in 2023-24, about Rs. 1,929 lakh have been provisioned for expected production of about 20,800 quintals of fodder seed in the state under NLM.

5. Pilot  on  establishment  of  DCS  at  Gram  Panchayat  in  Chikkamagalur  district  of Karnataka: In order to realize the vision of ' Sahkaar se Samriddhi' envisaged by Hon'ble Prime Minister, many initiatives have been and are being taken by the newly formed Ministry of Cooperation, GoI. Under this vision, the ministry envisages to cover all Gram Panchayats in the country with PACS or Primary dairy/fisheries cooperative. As a part of this initiative, NDDB  is  implementing  a  pilot  on  establishment  of  22  DCS  at  Gram  Panchayat  in Chikkamagalur district through Hassan Milk Union. NDDB is providing technical support and grant of Rs. 88 Lakh from its own resources for implementing this pilot.

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