PREFACE - ncdc.in · PDF filePREFACE. 2 NCDC Schematic ... constituted by the Govt. of India...

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Schematic Patterns of Assistance

The National Cooperative Development Corporation (NCDC) is a unique organization engaged in the development of rural and Agriculture sector through cooperatives. NCDC was established in the year 1963 as an Apex

financial and developmental institution exclusively for the cooperative sector in the country. It strengthens and promotes programmes for processing, marketing, storage, export and import of agricultural produce, foodstuff and certain notified commodities through cooperatives. NCDC’s aim is to develop and strengthen cooperatives to enable them to serve their members, besides enhancing their income, while contributing to improvement of their livelihoods and growth of the economy as a whole.

With a network of 6 lakh cooperative societies and a membership base of 24 crore spread from the remotest village to national level, the Indian cooperative movement is the largest in the world. It covers 100% of the villages in the country.

NCDC provides liberal assistance to strengthen and develop cooperatives to the extent of 90-95% of the project cost which may include subsidy component of 20-25% under certain schemes to cooperatives in the cooperatively under-developed and least developed States. .

Over the past few years, numerous schemes have been introduced by NCDC. Newly notified services like tourism, hospitality & transport, electricity & power, rural housing, hospitals, healthcare and education have been included in NCDC’s sphere of operations.

NCDC had been financing various activities through multifarious patterns of assistance. For better understanding and rationalization of various patterns of assistance, NCDC has divided them into five categories, i.e., (a) Business Development, (b) Infrastructure Creation (Project Facilities), (c) Agro-Processing, (d) Integrated Cooperative Development Projects (ICDP), (e) Promotional & Developmental Programmes. Three Central Sector Schemes, namely, (f) Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization (g) Gramin Bhandaran Yojana, and (h) Capital Investment Subsidy (CIS) Scheme are also covered.

The Patterns of Assistance and other relevant details incorporating the newly introduced schemes have been brought out in this booklet. I believe that the State Governments, Cooperatives and other users would find this publication handy and valuable.

New Delhi (Govindan Nair)10.08.2011 Managing Director

PREFACE

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Page No.

Introduction 3 1. Categorisation of States 4 2. Activities Funded by NCDC 5-6

3. Patterns of Assistance: A. Business Development 7

B. Infrastructure Creation (Project Facilities) 7

C. Processing 8-11

D. Integrated Cooperative Development Project (ICDP) 12

E. Promotional & Developmental Programmes 13

F. Development/Strengthening of Agricultural Marketing 14 Infrastructure, Grading and Standardization

G. Gramin Bhandaran Yojana 15

H.Capital Investment Subsidy (CIS) Scheme 16

4. General Notes 17

5. Norms of Direct Funding 18-19

6. NCDC Field Offices 20

CONTENTS

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NCDC is governed by an Act of Parliament. Under the provisions of NCDC Act, policies and programmes are prepared by the Corporation with the guidance of its General Council and BOM, which are constituted by the Govt. of India out of the cross section of the cooperatives, officials and non-officials.

The Management of NCDC vests in the General Council of 51 members. The Union Minister of Agriculture is the President and the Secretary, Department of Agriculture & Cooperation is the Vice-President of General Council. The General Council has representatives of the Central and State Govts, National and State Level Cooperatives, NABARD, Cen-tral Financial Institutions, experts and eminent Cooperators. The BOM consists of 12 members drawn from the General Council. The Managing Director is the Chief Executive and he is assisted by two DMDs and experts in various disciplines. NCDC functions through its Head Office at New Delhi and Regional Offices located at Bangalaru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Guwahati, Gandhinagar, Hyderabad, Jaipur, Kolkata, Lucknow, Pune, Patna, Shimla, Thiruvananthapuram, Ranchi and Raipur.

Financial assistance is provided by the Corporation under its own schemes and central sector schemes. Funds are provided to cooperatives towards their share capital thus enabling them to raise resources from institutional agencies for expansion of their business operations or for investment in plant and machinery. Assistance is also made available as margin money to enable cooperatives to raise working capital. In specific cases, funding includes an element of subsidy too. As part of its promotional and developmental role, subsidy is available for engaging experts in various fields by cooperative federations and offices of the Registrars.

NCDC’s funding is based on specific patterns of assistance for a given scheme. For the purpose of financial assistance, States have been divided into three categories as follows :

a) Cooperatively Developed States/UTsb) Cooperatively Under Developed States/UTsc) Cooperatively Least Developed States/UTs

Assistance to cooperatively under-developed/least-developed States as well as for weaker sections’ cooperatives is provided on comparatively liberal/concessional terms. In the case of least developed States, assistance is available upto 95% of the project cost.

By the end of March, 2011 a cumulative financial assistance of Rs.30737.10 crore had been provided by the Corporation for various activities.

Cooperatives registered under the State Cooperative Societies’ Act or Multi-State Cooperative Societies’ Act are eligible for financial assistance under the aforesaid schemes. Financial assistance to cooperatives is routed through the State Govts or directly on the guarantee of the State Govt(s) or against security to the satisfaction of NCDC on fulfillment of certain conditions. In the case of national level cooperatives, assistance is provided directly.

Loan application forms are available with the offices of RCSs/Regional Directorates of the NCDC besides Head Office at New Delhi. Application forms for financial assistance are also available on NCDC web-site www.ncdc.in and can be downloaded from there.

Introduction

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1. CATEGORISATION OF STATES

For the purpose of Financial Assistance, States have been divided into three categories.

Cooperatively Developed States/UTs

1. Gujarat2. Haryana3. Karnataka4. Kerala5. Maharashtra6. Punjab7. Tamil Nadu8. UT of Chandigarh9. Delhi10. Daman & Diu11. Dadra & Nagar Haveli12. Pudduchery

Cooperatively Under Developed States/UTs

1. Andhra Pradesh2. Chattisgarh3. Goa4. Himachal Pradesh5. Madhya Pradesh6. Orissa7. Rajasthan8. Uttar Pradesh9. Uttarakhand10. West Bengal11. UT of A&N Islands12. Lakshadweep

Cooperatively Least Developed States/UTs

1. Arunachal Pradesh2. Assam3. Bihar4. Jharkhand5. J&K6. Manipur7. Meghalaya8. Mizoram9. Nagaland10. Sikkim11. Tripura

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2. activities funded by ncdc

a) Marketing

Margin Money assistance to cooperatives Strengthening share capital base of primary / district marketing societies Working Capital Finance Central Sector Scheme for Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization

b) Processing

Setting up of new sugar factories (Investment Loan) Modernisation and Expansion/ Diversification of existing Sugar Factories (Investment loan + term loan) Modernisation and Expansion of existing spinning mills Rehabilition of sick spinning mills Modernization of existing and establishment of modern cotton ginning & pressing units Powerloom Coops covering pre and post loom facilities, knitting units and garment manufacturing units. Cotton Dev. Programmes Setting up of other Procg Units, such as : Foodgrains/Oilseeds/Plantation Crops/Fruit & Vegetable/Maize Starch/Particle Board etc. Margin money/working capital assistance to cooperative spinning mills/cooperative commodity federations/ societies Share capital participation in new spinning mills

c) Storage

Construction of godowns Upgradation/renovation of existing godowns Construction of new godowns and repair and renovation of existing godowns under Gramin Bhandaran Yojana Construction of cold storages/ expansion/ modernization/ rehabilitation of cold storages

d) Distribution of essential articles through cooperatives

Distribution of consumer in rural/ urban/ semi urban areas.

e) Industrial Cooperatives

All types of Industrial Cooperatives, Cottage & Village Industries, Handicrafts/rural crafts etc.

f) Service Societies and New Initiatives

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(i) Credit & Service Cooperatives

Agriculture Credit Agriculture Insurance Labour Cooperatives Water Conservation works/services Irrigation, micro irrigation in rural areas Animal care/health disease prevention Rural sanitation/ Drainage/ Sewage system through Cooperatives

ii) New Initiatives

Tourism Hospitality Transport Generation & Distribution of Power by New, Non Conventional & Renewable Sources of Energy Rural Housing Hospital Health Care & Education

g) Agricultural Services

Cooperative Farmers’ Service Centres Agro Service Centres for Custom hiring Establishment of Agricultural inputs manufacturing and allied units. Irrigation/ Water harvesting programmes.

h) District Plan Schemes

Integrated Cooperative Development Projects in selected districts

i) Cooperatives for Weaker Sections

Fishery/ Dairy & Livestock/ Poultry/ Schedule Caste/ Tribal Coops/ Handloom/ Coir/ Sericulture coops etc.

j) Assistance for Computerization

k) Promotional and Developmental Programmes:

Technical & Promotional Cells Consultancy for studies/project reports, management studies, market survey & evaluation of programmes, etc. Training and Education.

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3.PATTERNs OF ASSISTANCE

A. BUSINESS DEVELOPMENTAll kinds of National, state, district, regional and primary level cooperatives for sectors/activities funded by NCDC

B. INFRASTRUCTURE CREATION (PROJECT FACILITIES)

All types of small and medium sized units (other than agro-processing units) including small scale industrial units, cottage & village industries, handicrafts, other products of allied industries, cane and bamboo units, Coir Units, etc., Plant & Machinery/

equipment including integrated projects (other than ICDP), setting up of storage/ godowns (including renovation/repairs/upgradation), work sheds, purchase of looms, cooperatives/industrial estates, service and repair centres, showrooms, showrooms-cum-godowns, market yards, rearing units and grainages, fish tanks/farms, poultry farms, rearing and breeding of livestock animals, establishment of seed farms etc., cold storages, ice plants, freezing plants, boat building including inputs and other infrastructure for fisheries, furniture & fixtures, transport vehicles including refrigerated and insulated vehicles, installation of/purchase of computers/computerization etc., setting-up of agro-service/farmers service centres, insectcides/ pesticides formulation units, units to manufacture inputs like bio-fertilizers/granular fertilizers, organic manure, creation of water harvesting/irrigation infrastructural facilities, Services Cooperatives etc. and any other related activities mandated to NCDC.

Activity Developed States/UTs Under Developed States/UTs Least Developed States/UTs NCDC to State Govt.

State Govt. to Society

Direct Funding

NCDC to State Govt.


Direct Funding

NCDC to State Govt.


Direct Funding

Margin Money

Loan for availing Bank credit. 100%

Loan or Share Capital

Loan100%

Loan 80% Sub* 20%

Loanor Share Capital80%Sub* 20%

Loan80%Sub*20%

Loan 75% Sub* 25%

Loanor Share Capital 75% Sub* 25%

Loan 75% Sub* 25%

Working Capital

Loan as per requirement100%

Loan100%

Loan Loan as per requirement

Loan Loan Loan Loan Loan

Share Capital

Investment Loan as per requirement 100%

Share Capital

-- Investment Loan as per requirement

Share Capital

-- Investment Loan as per requirement

Share Capital

--

* Subsidy subject to availability from Govt. of India otherwise equivalent loan from NCDC Sub = Subsidy SC = Share Capital

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Developed States/UTs Under Developed States/UTs Least Developed States/UTs NCDC to State Govt.

State Govt. to Society#

Direct Funding

NCDC to State Govt.


Direct Funding

NCDC to State Govt.


Direct Funding

Loan 90% Loan 50% SC/ 40%

Loan 65% Loan 70% Sub* 20%

Loan 50% SC 20% Sub* 20%

Loan 50% Sub* 20%

Loan 70% Sub* 25%

Loan 50% SC 20% Sub* 25%

Loan 50% Sub* 25%

Members’ contribution

10% 35% 10% 30% 5% 25%

In respect of “Computerization Programme" 100% loan may be provided through the State Govt. or directly in the “Cooperatively Developed States”. * Subsidy subject to availability from Govt. of India otherwise equivalent loan from NCDC Sub = Subsidy SC = Share Capital # Debt equity ratio may vary depending upon viability of the proposed project.

Rural HousingLoan 90% Loan

90%Loan 65% Loan 90% Loan 90% Loan 65% Loan 95% Loan 95% Loan 65%

MembersContribution

10% 35% 10% 10% 35% 5% 5% 35%

C. PROCESSING

(i) SUGAR MILLS

Activity All StatesSource NCDC to State

GovtState Govt. to society

Direct Funding

New mill Investment loan up to 30% of project cost

30% of project cost as Share Capital -

Modernization Loan up to 50% of project cost + 40% loan from SDF to be sanctioned by Govt. of India

Loan up to 50% of project cost + 40% loan from SDF to be sanctioned by Govt. of India


Modn./Expn. Up to 10,000 TCD




Modn./Expn. Beyond 10,000 TCD

Loan up to 65% of project cost



By-Product units including Co-generation




Working capital Loan as per requirement

100% loan Loan

Note: Investment loan to State Govt.(s) will be provided only for those sugar cooperatives which have secured firm sanction of term loan from financial institutions / banks and orders for plant and machinery are finalized.

(ii) SMALL & MeDIUM Type AGRo-pRoCeSSING UNITS like oil mills, foodgrains units, fruits & vegetable units, plantation crops processing units, dairy units, silk reeling/twisting, silk spinning, wool spinning and jute processing and any other agro-processing activity mandated to NCDC.

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Activity Developed States/UTs Under developed States/UTs Least Developed States/UTsNCDC to S/ Govt.

S/Govt toSociety#

DirectFunding

NCDC to S/Govt.

S/Govt toSociety

DirectFunding

NCDC to S/Govt.

S/Govt toSociety

DirectFunding

New Units,Expansion, Moderniza-tionDiversi-fication

Loan90%

Loan 50%SC 40%

Loan65%

Loan 70%Sub* 20%

Loan 50%SC 20%Sub* 20%

Loan50%Sub*20%

Loan 70%Sub* 25%


Loan 50%Sub* 25%

EquipmentFinance

Loan90%

Loan 90% Loan65%

Loan 90% Loan 90% Loan65%

Loan 90% Loan 90% Loan 65%

* Subsidy subject to availability from Govt. of India otherwise equivalent loan from NCDC # Debt-Equity ratio may vary depending upon viability of the proposed project. Sub= Subsidy SC= Share capital(iii)Textile I. Cooperative Spinining & Ginning programmes

* Subject to a maximum of 70% of block cost based on the viability of the projectNote : 1. Loan to be provided by NCDC. Subsidy will be provided, if available, from Govt. of India. 2. Subsidy for rehabilitation of spinning mills will be on plant and machinery (20% of the cost of plant & machinery) and subject to a ceiling of Rs.500 lakh per mill. Shortfall, if any, over and above NCDC’s contribution of loan and subsidy will be contributed by the society/State Govt.

Least Developed States Under Developed States Other States/UTs.From NCDC to State Govt.

From S/Govt. to Society

From NCDC to S/Govt.




(a) Share Capital Participation in New Mills 30% of the Project cost or 70% of share capital contribution by the State Govt. whichever is less, as loan

Share capital contribution to the extent of 50% of Project cost less members stipulated equity which should not be less than 7.5% of the project cost

Same as for least developed states


20% of the Project cost or 50% of the share capital contribution by the State Govt., whichever is less, as loan

Share capital contribution to the extent of 50% of the Project cost less members stipulated equity which should not be less than 10% of the project cost.

(b) Modernization/ExpansionTerm loan -60%InvestmentLoan – 32.5%

Term loan- 60% Share capital -32.5% Members contribution-7.5%



Term loan- 60% Investment loan-30%

Term loan- 60% Share capital- 30% Members contribution -10%

(c) Margin Money Assistance for Coop. Spinning Mills & State Coop. Cotton Fedn. 100% loan 100% as

S/Capital or long term loan



100% loan 100% as S/capital or long term loan.

(d) Modernisation of existing & establishment of modern Ginning & Pressing UnitsTerm loan-55%Investmentloan -25%

Subsidy- 10%Members contribution -10%

Term loan -55% Share capital -25%Subsidy -10%Members Contribution -10%



Term loan -55% InvestmentLoan - 25%

Subsidy -10%Members contribution-10%

Term loan - 55% Investmentloan- 25%

Subsidy - 10%Memberscontribution - 10%

(e) Rehabilitation of Sick Coop. Spinning Mills Term loan-70%Subsidy -20%Members contribution-10%

Term loan -70% *Subsidy- 20%Memberscontribution -

10%







































10%







































10%







































10%







































10%





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II. powerloomActivity Developed States/UTs Under Developed States/UTs Least Developed States/UTs

NCDC to State Govt.


Direct Funding

NCDC to State Govt.


DirectFunding

NCDC to State Govt.


Direct Funding

Margin Money/ Share Capital

Purchase of power looms or construction of shed with looms and accessories/modernization / construction/ renovation /opening of godowns/ showrooms/ marketing complex/ coop. textile estates.

Share Capital

Construction of workshed and purchase of looms, Construction/Opening/Renovation of showroom, central godown and showroom –cum-godowns

Loan 100%margin money for availing Bank credit.

Loan 90%

InvestmentLoan as per require-ment

Loan 90%

Members Contri-bution

Loan or SC

Loan 50%

Share Capital 40%

Members contribution10%

Share capital

Loan 50%

Share Capital 40%

10%

Loan100%

Loan 65%

-

Loan 65%

35%

Loan 80% Sub* 20%

Loan 70%Sub*20%

Investment loan as per require-ment

Loan 70%Sub*20%

Loanor SC 80%

sub* 20%

Loan50%SC 20%Sub*20%Members 10%

Share C Capital


10%

Loan 80% Sub* 20%

Loan 50%Sub* 20%Members 30%

-

Loan50%Sub*20%

30%

Loan 75% Sub* 25%

Loan 75%Sub* 25%

Investment loan as per require-ment

Loan 75%Sub* 25%

Loanor SC 75% Sub* 25%

Loan50%SC 20%Sub*25%Members 5%

Share capital


5%

Loan 75% Sub* 25%

Loan50%Sub*25%Members 25%

-

Loan 50%Sub*25

25%

Note : Subsidy subject to availability from Govt. of India, otherwise equivalent loan from NCDC Sub = Subsidy SC = Share Capital # Debt equity ratio may vary depending upon viability of the proposed project.

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III. Handloom/Coir/Jute/Sericulture

* Subsidy subject to availability from Govt.of India, otherwise equivalent loan from NCDC.# Debt equity ratio may vary depending upon viability of the proposed project L= Loan Sub= Subsidy SC= Share capital

Activity Developed States/UTs Under Developed States/UTs Least Developed States/UTs

NCDC to State Govt.


Direct Funding

NCDC to State Govt.


Direct Funding

NCDC to State Govt.


Direct Funding

Margin Money

Loan 100%margin money for availing Bank credit.

Loan or SC

Loan100%

Loan 80% Sub* 20%

Loan or SC 80% Sub* 20%

S

Loan 80% Sub* 20%

Loan 75% Sub* 25%

Loanor SC 75%Sub* 25%

Loan 75% Sub* 25%

Working Capital

Loan as per requirement

Loan Loan100%

Loan as per requirement

Loan Loan Loan as per requirement

Loan Loan

Share Capital

Construc-tion of workshed and purchase of looms, Construct-ion/Opening/Renovation of Showroom, Central Godown and Showroom-cum-godowns

Investment Loan as per requirement

Loan 90%

Members Contribution

Share Capital

Loan50%

SC 40%

10%

--

Loan65%

35%


Loan 70%Sub* 20%

Share Capital


10%

--

Loan 50%Sub*20%

30%


Loan 70%Sub* 25%

Share Capital


5%

--

Loan 50%Sub* 25%

25%

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D. INTEGRATED COOPERATIVE DEVELOPMENT PROJECTS (ICDP)

Sl.

No.

Activity From NCDC to State Government From State Government to Society

Loan Sub. Total Loan Share

Capital

Sub. Total

i) Safe deposit vaults/cash counters/strong rooms

100% - 100% 50% 50% - 100%

ii) Margin money (including share capital to DCCB/project Implementing agency)

100% - 100% - 100% - 100%

iii) Manpower Development & Training

- @50% @50% - - 100% 100%

iv) Managerial assistance & incentive (applicable to PIA and Monitoring Cell also)

- @50% @50% - - 100% 100%

v) For sub-projects of the project not mentioned above, the pattern applicable in case of normal NCDC Schemes for the given State/activity/category shall be applied with the modification that 100% of the assistance shall be provided to the State Govt. for passing on to the coops. The subsidy assistance available from any Deptt./Ministries/agencies shall be dovetailed for passing on to the cooperatives.

@ In the case of states classified as ‘Special Category States’ 100 per cent subsidy shall be given from NCDC to State Government under items No. (iii) and (iv) above.Note: 1. The total subsidy component in a project would not exceed 30% of the total project cost. 2. Other activities under the project as per the pattern in vogue. 3. Funding Pattern from State Govt. to the Society is subject to change in consultation with the State Govts.

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E. PROMOTIONAL & DEVELOPMENTAL PROGRAMMESTechnical and Promotional Cell• All state level cooperative federations (excluding those connected with the weaker sections programmes)

Under - Developed States Least – Developed States

Subsidy for employment of professionals to be provided for a period of 5 years on a tapering scale.

I) 100% in the first 2 years.

ii) 80% in the 3rd & 4th year.

iii) 70% in the 5th year.


i) 100% for the first 5 years.

ii) 80% for the subsequent 2 years.

• All Federations connected with the weaker sections programmes

Qualifications and scales of pay and other emoluments for the various experts/professionals would be determined by the concerned federations in consultation with NCDC. Subsidy, if available from the Central Govt., is proposed to be provided only for Pay, HRA, CCA, DA for 5 to 7 years. The assistance will be sanctioned by the corporation only after careful consideration of the proposal of the institutions and assessing the need for appointment of such experts. The pattern of assistance for the appointment of Development Officers in the RCS offices would be the same as applicable to state level federations in the least and under-developed states.

Activity Developed State/UTs Under-Developed States/UTs Least Developed States/UTs

NCDC to State Govt.


Direct Funding

NCDC to State Govt.*


Direct Funding

NCDCto State Govt.*


Direct Funding

Promotional &Developmental –Preparation of Project Reports, Market Surveys, Financial Management Studies, Impact Evaluation Studies etc. for establishment processing units etc.

- - - Sub 100% Sub 100% Sub 100% Sub 100%

Sub 100%

Sub 100%

* Subject to prior approval of the Corporation before undertaking studies and entrusting work to consultants.

Under - Developed States Least – Developed States


i) 100% for the first 5 years.

ii) 80% for the subsequent 2 year.

Same as for under-developed states.

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F. DEVELOPMENT/STRENGTHENING OF AGRICULTURAL MARKETING INFRASTRUCTURE, GRADING & STANDARDIZATION.

Ministry of Agriculture, Govt. of India introduced a scheme for development/strength-ening of agricultural marketing infrastructure, grading and standardization to encourage rapid development of infrastructure projects in the ag-ricultural and allied sectors including dairy, meat, fisheries and minor forest produce in the States and UTs where APMC Act has been amended. Under this scheme, a back ended subsidy of 25% of the capital cost up to Rs.50 lakh in each pro-ject is available provided it is a “Direct” service delivery to producers/farming community in post harvest management/ marketing of their produce. Subsidy is 33.33% of the capital cost up to Rs.60 lakh in case of North-eastern states, hilly and tribal areas, and in the States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir and for SC/ST entrepreneurs and their cooperatives. Assistance under the scheme is available on capital cost of the project only.

From NCDC to State Govt.

From State Govt. to Society Direct funding from NCDC to Society

Term loan 56.67% Term loan * 50% Term loan Minimum 50%Subsidy 33.33% Share Capital * 6.67% Subsidy 33.33%

Subsidy 33.33% Society Share** Rest of the costSociety share 10%

From NCDC to State Govt. From State Govt. to Society Direct funding from NCDC to Society

Term loan 65% Term loan * 50% Term loan Minimum 50%Subsidy 25% Share Capital * 15% Subsidy 25%

Subsidy 25% Society Share** Rest of the costSociety share 10%

* Minimum term loan 50% (Share capital of State Govt. will proportionately vary with increase in term loan). ** Cost of land not exceeding 10% in rural areas and 20% in municipal areas of the project cost can form part of the promoter’s contribution. # (Hilly areas is a place at an altitude of more than 1,000 meters above means sea level). (Tribal areas are notified/declared as tribal area by the Central/concerned State Govt.)

For cooperatives in North-eastern States, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, hilly and tribal areas# & SC/ST Cooperatives:

pattern of funding for projects financed through NCDC

For cooperatives in all States other than in North-eastern States, Uttarakhand, Himachal Pradesh, Jammu & Kash-mir, hilly and tribal areas & SC/ST Cooperatives:

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G. GRAMIN BHANDARAN YOJANAMinistry of Agriculture, Govt. of India introduced a scheme with the main objective of creation of scientific storage capacity with allied facilities in rural areas to meet the requirements of farmers for storing farm produce, processed farm produce and agricultural inputs; promotion of grading, standardization and quality control of ag-ricultural produce to improve their marketability ; prevention of distress sale immediately after harvest by provid-ing the facility of pledge financing and marketing credit; strengthen agricultural marketing infrastructure in the country by paving the way for the introduction of a national system of warehouse receipts in respect of agricul-tural commodities stored in such godowns and to reverse the declining trend of investment in agriculture sector by encouraging private and cooperative sectors to invest in the creation of storage infrastructure in the country.

Assistance under the scheme shall be available on capital cost of construction of godown including the cost of allied facilities like boundary wall, internal road, platform, internal drainage system, weighing, grading, packaging, quality certification, warehousing facilities which are functionally required to operate the godown.

Pattern of funding

For Cooperatives other than NE States, hilly areas and SC/ST Cooperatives

For Cooperatives in NE States, hilly areas * and SC/ST Cooperatives


From State Govt. to Society


From State Govt. to Society

Term loan 65%Subsidy 25%

Term loan 50%Share capital 15%Subsidy 25%Society share 10%

Term loan 56.67%Subsidy 33.33%

Term loan 50%Share capital 06.67%Subsidy 33.33%Society share 10%

* where the project site is located at a height of more than 1000 meters above sea level. Note 1: In case of funding directly to society besides subsidy of 25% or 33.33% as the case may be, minimum loan shall be 50% rest society’s own contribution. 2. Subsidy subject to availability of funds from GOI, otherwise equivalent loan from NCDC.

Mode of Release:

a. 50% of sanctioned amount shall be released on acquisition of land and submission of copy of contract of award of work and balance 50% of sanctioned amount shall be provided after godown has reached roof level.b. 100% sanctioned amount shall be released in case of renovation of godowns after work of repair and renovation is taken up.

Special features of the scheme • No ceiling on godown capacity for cooperatives funded through NCDC.• Repair & Renovation of cooperative godowns are funded by NCDC only.

Accreditation of Warehouses

NCDC has been notified as one of the Accreditation Agency for undertaking accreditation of warehouses on behalf of Warehousing Development and Regulatory Authority (WDRA) set under the Warehousing (Development and Regulation) Act, 2007.

The main objective of the Warehousing (Development and Regulation) Act, 2007 are to make provision for the development and regulation of warehouses and negotiability of warehouse receipts which will help farmers to seek loans from banks against negotiable warehouse receipts to avoid distress sale of their agricultural produce.

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H. CAPITAL INVESTMENT SUBSIDY (CIS) SCHEME

(For credit linked projects relating to construction / expansion/ modernization of cold storage and storages including Controlled Atmosphere (CA) and Modified Atmosphere (MA) Stores, pre-cooling units for Horticulture produce).

The Government of India, during December, 1999 has introduced Capital Investment Subsidy (CIS) in order to overcome problems of fluctuations in the prices of particularly of potatoes & onions. The scheme is being implemented mainly through NCDC and NABARD by National Horticulture Board (NHB), an autonomous body under Ministry of Agriculture (MOA). Assistance from NCDC including back ended subsidy (BES) under the scheme is available for projects upto 5,000 ton capacity as per the following pattern of funding:

Through State Government Direct

Assistance NCDC to State Govt. State Govt. to Society

General States

HS Areas General States

HS Areas General States

HS Areas

Loan 50% 35% 40 % 25% 35% 20%

BES* 40% 55% 40 % 55% 40% 55%

Share Capital *** *** 10 % 10% *** ***Total 90% 90% 90 % 90% 75% 75%

10 % by Society 25% by Society

*subject to availability from Government of India /NHB otherwise loan from NCDC for a cold storage /CA store up to 5,000 ton capacity at prescribed normative cost. HS =Hilly and Scheduled Areas

Back ended subsidy is calculated at prescribed normative cost.

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4. GENERAL NOTES

1. Debt-Equity ratio in case of processing units and other infrastructural facilities can be adjusted keeping in view the viability of the projects. Members’ contribution could be reduced provided the State Govt. makes good the members’ part of the share.

2. In case of projects funded under specific schemes of the Govt. of India/other Institutions, their pattern of assistance will apply.

3. The Schemes of NCDC could be dovetailed with the schemes of Govt. of India/Departments of Govt./any other source(s). The pattern of assistance will be adjusted accordingly.

4. In the case of completed/partially completed projects also, assistance could be provided in the form of investment loan to State Govt.(s) where expenditure has been incurred and term loan has been availed/ sanctioned by financing institutions/banks etc.

5. In case of modernization/expansion/diversification of projects, subject to availability of funds, the Corporation can provide investment loan to meet the stipulated share of the State Govts.

6. Assistance to cooperatives having area of operations in more than one state could be provided directly subject to suitable security by way of mortgage of assets etc.

7. Assistance to cooperatives in Union Territories will be given directly subject to guarantee of the Central Govt.

8. Direct funding will be as per the guidelines decided by the Corporation from time to time.

9. Pattern of assistance indicates the maximum limit of financial assistance that can be provided.

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5. NORMS FOR DIRECT FUNDING

i. ELIGIBILITY CRITERIA

1. NCDC may extend direct assistance to existing cooperative societies in operation for not less than three years.

2. Routing of NCDC assistance will be as follows: (a) NCDC assistance (for projects/working capital) not exceeding Rs.10 crore, subject to the eligibility criteria, may be considered for direct funding. These limits will be applicable to multi-state cooperatives also.

(b) Working capital loans to state/national level federations may be considered for direct funding on the merit of each case without any ceiling.

(c) NCDC assistance for the cooperatives, which are not eligible for direct funding or otherwise would continue to be considered through state governments.

(d) In exceptional cases, for the cooperatives which are financially strong, have good track record of operations and credit worthiness, NCDC assistance above Rs.10 crore may be considered for direct funding with the approval of the Board.

3. The society should have positive net-worth not less than 100% of paid-up share capital i.e. there should be no erosion in the paid-up share capital.

4. The society should not have any cash losses during last three years and there should be net profit in at least two of previous three years.

5. The debt equity ratio will normally be 65:35, depending on economic viability of the project

6. Value of assets to be mortgaged to NCDC as security against the loans should have adequate security margin, normally not less than 1.5 times (shortfall in the security may be made good by way of guarantee of a scheduled bank or an FDR endorsed in favour of NCDC)

7. Working capital loans to cooperative societies/federations may be secured by hypothecation of stocks/debtors/other assets, keeping a minimum margin of 20%. If considered necessary, NCDC may ask for additional security of first or second charge on the fixed assets.

8. If considered necessary, the society may be asked to open an Escrow account with a scheduled bank/state coop bank/district coop. bank in which part of sale proceeds will be deposited for servicing NCDC loan. In case Escrow account is opened with a district coop. bank, its financial position may be ascertained.

9. Audit of accounts should be completed up to previous year within 6 months of close of the financial year.

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In cases where audit is undertaken by Government auditors and it is not complete, accounts audited by Chartered Accountant’s firm will be submitted.

10. The society seeking NCDC assistance, or any other society on which directors of this society have been directors, should not have any major default in repayment of loans to NCDC/Banks/Financial Institutions.

11. NCDC at its discretion, may ask for additional securities by way of one or more of the following:

- Government guarantee- Guarantee of a scheduled bank- Personal guarantee of the Directors and collateral security.

ii. NEW COOPERATIVE SOCIETIES

The cooperative societies, which are not in operation for more than three years, will normally be assisted through state governments. However, such cooperatives in exceptional cases may be considered for direct fund-ing, if in addition to the eligibility criteria indicated in para 1 above (as applicable), following additional securities are made available:

(i) Government guarantee or guarantee of a scheduled bank (ii) Personal guarantee of the Directors and collateral security, if considered necessary

iii. RELEASES

(a) NCDC will consider release of 25% ways & means advance only after the society has raised 50% and utilized 40% of equity portion of the project by way of members/state govt. share capital and internal accruals.

(b) As per existing procedure, subsequent releases will normally be considered based on the expenditure incurred and committed expenses for one month as certified by a Chartered Accountant. For the projects involv-ing NCDC assistance above Rs.10 crore or as decided by MD, NCDC, such certification may be carried out by a Chartered Accountant from the panel approved by NCDC.

iv. PROCESSING FEE

In case of direct funding, processing fee shall be charged @ 0.5% of the sanctioned amount, not exceeding Rs.3.00 lakh (0.5% of Rs.6.00 crore) in each case. However, processing fee shall not be charged for working capital loans upto one year.

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NCDC FIELD OFFICES

BANGALURUKarnataka Housing Board,Shopping Complex, 3rd floor,National Games Village,Korarmangala, Bangaluru-560047.Ph: 080-25702112 Fax: 080-25701860E-mail: [email protected](Jurisdiction: Karnataka)

BHopALA-8, 3rd Floor,Platinium Plaza,T.T. Nagar, Bhopal-462003.Ph.0755-2774175 Fax: 0755-2763647 E-mail: [email protected] (Jurisdiction: Madhya Pradesh)

BHUBANeSWARAlok Bharati Complex, G - floor, Sahid Nagar,Bhubaneshwar-751007.Ph.0674-2542107 Fax: 0674-2545874E-mail: [email protected](Jurisdiction: Orissa)

CHANDIGARHAhimsa Building, SCO 82-83, 2nd floor, Sector -17-C,Chandigarh-160017.Ph: 0172-2702007 Fax: 0172-2722126E-mail: [email protected](Jurisdiction: Punjab, Haryana, J&K and Chan-digarh)

CHeNNAIModule No. 34 & 35, Garment Complex, 2nd floor, Industrial Estate, Guindy, Chennai-600032.Ph.044-22500824 Fax:044-22500034E-mail: [email protected](Jurisdiction: Tamil Nadu & Puducherry)

DeHRADUNE-110,Nehru Colony Dehradun-248001Ph & Fax : 0135-2668692E-mail:[email protected](Jurisdiction: Uttrakhand)

GANDHI NAGAR Plot No. 272-273,Behind Central Bank of India,GH Road, Sector-16Gandhi Nagar-382 016.Ph.079-23222293 Fax: 079-23238292E-mail: [email protected](Jurisdiction: Gujarat, Daman & Diu)

GUWAHATI Bora Service Station Bldg.,G.S. Road, Ulubari, Guwahati-781007.Ph: 0361-2525427/2526327 Fax: 2525427E-mail: [email protected](Jurisdiction:Assam, Meghalaya, Manipur, Tripura, Nagaland, Arunachal Pradesh, Mizo-ram)

HyDeRABAD 5-10-193, HACA Bhavan, 2nd floor, Opp.Public Garden,Hyderabad-500004.Ph.040-23233760 Fax:040-23240615E-mail: [email protected] (Jurisdiction: Andhra Pradesh)

JAIpUR1st floor, Central Block,Nehru Sahakar Bhawan,Bhawani Singh Road, Jaipur-302001.Ph: 0141-2740327, Fax: 0141-2740320E-mail: [email protected](Jurisdiction: Rajasthan)

KoLKATA P-161/1,VIP Road, 4th Floor, International Centre, Kolkata-700054.Ph.033-23554943 Fax:033-23555538E-mail: [email protected](Jurisdiction: West Bengal, Sikkim and A&N Islands)

LUCKNoWSahakarita Bhavan,14, Vidhan Sabha Marg, Lucknow-226001.Ph.0522-2613093 Fax: 0522-2270565E-mail: [email protected] (Jurisdiction: Uttar Pradesh)

pATNAMaurya Lok Complex,A-Block, 2nd floor, Room No.21,Dak Bunglow Road,Patna-800001.Ph.0612-2221467 Fax: 0612-2211604. Email: [email protected](Jurisdiction: Bihar)

pUNe5, B.J.Road, Pune-411001.Ph. 020-26127049 Fax: 020-26128027E-mail: [email protected](Jurisdiction: Maharashtra, Goa, Dadra & Nagar Haveli)

RAIpURAt-360/2,3,New Gayatri Nagar,Shankar Nagar,Raipur-492007(Jurisdiction: Chattisgarh)

RANCHIM-23/DS, Harmu Housing Colony,Ranchi-834012Ph.092-34171496 (Jurisdiction: Jharkhand)

SHIMLAKay Kay HouseUpper Kaithu,Near Tara Hall SchoolShimla-171001.Ph. 0177-2657689 Fax: 0177-2658735E-mail: [email protected](Jurisdiction:Himachal Pradesh)

THIRUVANANTHApURAMCo.Bank Tower,5th floor, Palayam,Thiruvananthapuram-695033.Ph.0471-2318497 Fax: 0471-2311673E-mail: [email protected](Jurisdiction: Kerala, Lakshadweep)

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