• The Union Minister of Agriculture and Farmers’ Welfare Shri Radha Mohan Singh said that National Cooperative Development Corporation has played an important role in promoting cooperative development in India by gradually shaping its financial schemes as well as programmes for the benefit of farmers through cooperatives.
• The minister said that the Corporation during the current financial year 2018-19 has already achieved an all time high release of over ₹25,000 crore which is 210% of the current year target.
• It has registered a remarkable increase of around 222% in disbursements in last five years (2014-15 to 2018-19) as compared to previous five years (2009-10 to 2013-14). It is a matter of pride that net NPA of the Corporation is maintained at ‘Zero’ with recovery rate being over 98%.
Key highlights of this project
• NCDC has been proactive in delivering innovative solutions for the cooperative sector. NCDC’s ‘Yuva Sahakar’ scheme was launched in November 2018 to give wings to young entrepreneurs in cooperatives.
• Newly formed cooperatives will be able to take advantage of the ‘Cooperative Start up and Innovation Fund’ formed by NCDC with liberalized assistance for cooperatives in the North Eastern Region, Cooperatives registered and operating in aspirational districts, cooperatives with 100% women/SC/ST/Person with Disability (PwD) members.
• An agreement has been signed between NCDC and Agricultural and Processed Food Products Export Development Authority (APEDA) under the New Agriculture Export Policy announced by the government.
• Both the organisations have identified common areas of cooperation and this collaboration will facilitate in providing better value to the stakeholders in agri and allied sectors through a variety of activities including focus on export in line with the policies of the Government.
• In addition an India International Cooperative Trade Fair’ will be organised in October, 2019 in New Delhi. It will be first of its kind which will provide platform for sale, market, product display, conferences, buyer-seller meet, networking, policy advocacy etc to national and international cooperatives and related institutions.
Yuva Sahakar-Cooperative Enterprise Support and Innovation Scheme
• The scheme will be linked to Rs 1000 crore ‘Cooperative Start-up and Innovation Fund (CSIF)’ created by the NCDC.
• It would have more incentives for cooperatives of North Eastern region, Aspirational Districts and cooperatives with women or SC or ST or PwD members.
• The funding for the project will be up to 80 percent of the project cost for these special categories against 70 percent for others.
• The scheme envisages 2 percent less than the applicable rate of interest on term loan for the project cost up to Rs 3 crore including 2 years moratorium on payment of principal.
• All types of cooperatives in operation for at least one year are eligible to avail of the scheme.
• It would encourage cooperatives to venture into new and innovative areas.
• The scheme is expected to meet the needs of youth.
Mains Paper 2: Governance | Government policies and interventions for development in various sectors
Prelims level: Particulars of the Scheme
Mains level: Promoting cooperatives business venture