The Union Agriculture Ministry has initiated the National Cooperative Development Corporation’s (NCDC) new initiative, ‘Yuva Sahakar-Cooperative Enterprise Support and Innovation Scheme’. This ambitious project aims to draw youth attention towards cooperative business models.
The innovative scheme proposes to motivate cooperatives to expand their horizons and explore novel areas. Furthermore, NCDC has allocated a dedicated fund known as the Cooperative Start-up and Innovation Fund (CSIF), with a corpus of Rs 1000 crore.
Highlights and Benefits of the Scheme
The NCDC Scheme offers additional incentives, funding up to 80% (as opposed to the usual 70%), to cooperatives in the North Eastern region, Aspirational Districts, and those that include members who are women, belong to the SC or ST categories, or are Persons with Disabilities (PwD).
The scheme allows for a discounted interest rate, 2% lower than the applicable rate, on term loans taken for the project cost up to Rs 3 crore. This includes a two-year moratorium on the payment of the principal. To be eligible for the scheme, a cooperative must have been operational for at least one year.
About the National Cooperative Development Corporation (NCDC)
Established under the National Cooperative Development Corporation Act, 1962, the NCDC is a statutory corporation. Its primary objective is to plan and promote programmes related to the production, processing, marketing, storage, export, and import of agricultural produce, foodstuffs, industrial goods, livestock and certain other commodities and services, all on cooperative principles.
Operating through its head office in New Delhi and several regional offices, the NCDC holds the unique distinction of being the sole statutory organization functioning as an apex financial and developmental institution devoted exclusively to the cooperative sector. It is a major financial institution for cooperatives.
Mission Sahakar 22
In addition to its other roles, NCDC has recently commenced ‘Mission Sahakar 22′. This mission aims to double farmers’ income by 2022.
Facts about Cooperatives in India
| Year | Event |
|---|---|
| 2012 | The United Nations General Assembly declared this year as the International Year of Cooperatives. |
| 2002 | The Government of India enacted the Multi-State Co-operative Societies Act and formulated the National Policy for Cooperatives. |
Cooperatives and the Constitution of India
The 97th Amendment to the Indian Constitution, passed in 2011, added a new Part IXB concerning cooperatives operating in India. The term “cooperatives” was incorporated after “unions and associations” in Article 19(1)(c) under Part III of the Constitution. This amendment grants all citizens the fundamental right to form cooperatives. Furthermore, a new Article 43B was included in the Directive Principles of State Policy (Part IV) regarding the promotion of cooperative societies.