4 - Siri Institutional Area,

Hauz Khas, New Delhi 110016,

Tel.No. 26510314
Fax : 011-26962370
E.mail. mdncdc@ncdc.in

No. NCDC: 3-1/2012-P&C Dated: 17.09.2014

From:
Vasudha Mishra, I.A.S.,
Managing Director

To,
The Secretaries to Government,
Cooperation Department
Animal Husbandry, Dairy & Fisheries Department,
Tribal Welfare/SC/ST Department,
Industries Department,
(All States & Union Territories)

Sub: Introduction of CENTRAL SECTOR INTEGERATED SCHEME ON

AGRICULTURAL COOPERATION (CSISAC) for financial assistance to
Cooperative Societies by NCDC during the remaining period of the
12th Five Year Plan (2013-2017) – reg

Madam/Sir,

The Government of India in the Ministry of Agriculture, Department of

Agriculture & Cooperation (DAC) has approved the CENTRAL SECTOR
INTEGERATED SCHEME ON AGRICULTURAL COOPERATION (CSISAC) for
financial assistance to Cooperative Societies by NCDC during the remaining
period of the 12th Five Year Plan (2013-2017). The DAC has issued detailed
guidelines specifying the Components, coverage, eligible sectors and
orgainsations, quantum of subsidy, Plan and Year-wise outlay etc. under the
Scheme which is enclosed at Annexure-A for ready reference.

2. The Scheme has three Components covering several activities, target

groups and also addresses the aspects containing regional disparities.
Accordingly, NCDC has developed a comprehensive Operational Guideline for
Implementation which is enclosed at Annexure-B to this letter for your ready
reference. It may be noted that the assistance from DAC under the CSISAC
Scheme is towards meeting the subsidy component specified under the Scheme,
while the loan component (both Term Loan & Investment Loan) is to be provided
by NCDC from its own resources. The conditions contained in the Guidelines
issued by DAC now supersede instructions earlier circulated in respect of
Restructured Central Sector Scheme as implemented by NCDC through the 10th
& 11th Five Year Plans, upto 03.07.2014 while on 04.07.2014 the new CSISAC
scheme has been introduced by the DAC for implementation during the
remaining part of 12th Five Year Plan.

3. It is requested that the Scheme may be brought to the notice of all the
cooperative societies and others concerned, in your State and the cooperative
societies may be impressed upon to prefer their proposals to NCDC for financial
assistance. Cooperatively Developed States may please note that subsidy
assistance under the scheme which was not earlier available to them under
the Components I is now permitted @15% for projects/ programmes related
to weaker sections subject to conditions detailed in the Guidelines.
Further, Societies organised as Women Cooperatives and Labour
Cooperatives under the provision of State Act, shall also be considered as
Weaker Section Cooperatives for the purpose of subsidy assistance under
CSISAC.

4. For any further clarification about the CSISAC Scheme, guidelines for
preparation of Detailed Project Reports (DPR) and formulation of proposals, the
Head Office at New Delhi and / or the concerned Regional Office of NCDC in
your region may kindly be contacted for necessary assistance in facilitating
generation of proposals, to derive optimal benefits from the Scheme for
promotion and development of cooperative sector in your State. List of NCDC’s
Regional Offices and their contact addresses are enclosed at Annexure-C which
are also available on the website:www.ncdc.in.

5 Hindi version of this circular follows.

Yours faithfully,

Sd/-
(Vasudha Mishra)
Encl: As above. Managing Director

Copy to:

1. Chief Director (Cooperation), Department of Agriculture and Cooperation,

Ministry of Agriculture, Government of India, Krishi Bhawan, New Delhi
2. Registrar of Cooperative Societies (All States/UTs)
3. Directors/Commissioner of Fisheries (All States/UTs)
4. Directorate of Animal Husbandry & Veterinary Services (All States/UTs)
5. Director Handloom, Handicraft, Textile & Khadi, (All States/UTs)
6. Managing Director, Scheduled Caste and Scheduled Tribe Federations (All
States/UTs)
 7. Managing Director, State Cooperative Dairy Federation (All States/UTs)
8. Managing Director, State Cooperative Consumer Federation (All
States/UTs)
9. Managing Director, State Apex Marketing Federation (All States/UTs)
10. Chief Executive Officer, National Level Cooperative Organisation
11. Managing Director, State Labour & Construction Cooperative Federation
(All States/UTs)
12. All Chief Director, NCDC Head Office including TOPIC;
Advisers (SCU/KPV/GKG) and Directors (MIS/PR), NCDC, Head Office
13. All Regional Director, NCDC
14. Guard File
 ANNEXURE - A
No. L-12013/1/2014-I&P
Government of India
Ministry of Agriculture
Department of Agriculture & Cooperation

R.No.333, Krishi Bhawan,

New Delhi-110001
Dated 4th July 2014

To

The Managing Director

NCDC,
Hauz Khas,
New Delhi- 110016

Subject :- Guidelines for implementation of the component of Assistance

to NCDC Programme for Development of Co-operatives under
the Central Sector Integrated Scheme on Agricultural Co-
operation reg.

Madam,

I am directed to refer to this Deptt.’s letter of even number dated 21st

March 2014 and yours DO letter no. NCDC 3-1/2012-P&C dated 18.06.2014 on
the subject mentioned above and to enclose a copy of revised guidelines for
implementation of the component of ‘Assistance to NCDC Programmes for
Development of Co-operatives’ under the Central Sector Integrated Scheme on
Agricultural Co-operation during the remaining period of 12th Five Year Plan
(2013-17) for further necessary action.

This issues with the approval of Secretary (A&C)

Encl : As Above
Yours faithfully

Sd/-

(Dr. A.K. Mishra)

Chief Director (Cooperation)

Page1/14
GUIDELINES FOR IMPLEMENTATION OF THE COMPONENT OF
ASSISTANCE TO NCDC PROGRAMMES FOR DEVELOPMENT OF
COOPERATIVES UNDER CENTRAL SECTOR INTEGERATED SCHEME ON
AGRICULTURAL COOPERATION (CSISAC) DURING THE REMAINING
PERIOD OF 12TH FIVE YEAR PLAN (2013-17)

1. Objectives:
The Central Sector Integrated Scheme on Agricultural Cooperation
(CSISAC) is the result of merger of two erstwhile schemes of 11th Five Year Plan
viz; Restructured Central Sector Scheme for Assistance to National Cooperative
Development Corporation (NCDC) Programmes for Development of
Cooperatives and Central Sector Scheme for Education & Training. The main
objectives of the scheme are to provide financial assistance for improving the
economic conditions of cooperatives, remove regional imbalances and to speed
up cooperative development in agricultural and allied sectors, help cotton
growers to fetch remunerative price for their produce through value addition
besides ensuring supply of quality yarn at reasonable rates to the decentralized
weavers, overall development of selected districts in the country through
cooperative efforts in agriculture and allied sectors and to assist National Level
Cooperative Federation/ Multi State Cooperative Societies (MSCS) in the
agriculture and allied sector to undertake promotional and skill development
activities.

2. Components of the Scheme:

Financial assistance will be provided for the following components under

the Scheme (CSISAC) under the component of Assistance to NCDC
Programmes for Development of Cooperatives:

i) Marketing, Processing, Storage, Consumer, Weaker Section

Programmes of Cooperatives, Computerization of Primary
Agricultural Cooperative Credit Societies (PACS), District Central
Cooperative Banks (DCBs), State Cooperative Banks (SCBs) and
Technical & Promotional (T&P) Cell Scheme for strengthening
Management of State Cooperative Federations [subsidy on tapering
basis].
Financial assistance will be provided under this component for improving
the economic conditions of cooperatives, remove regional imbalances and to
speed up cooperative development in agricultural marketing, processing,
storage, computerization and weaker section programmes. The government will
provide assistance to NCDC for financing the activities under agro and allied
sector for processing, marketing, storage and input supply, development of
weaker sections cooperatives such as tribal cooperatives, dairy, poultry,
livestock, fisheries, handloom, coir, jute, sericulture cooperatives etc., T&P Cell
and computerization of cooperatives.
Page 2/14
ii) Assistance for cotton development including ginning and pressing
and establishment of new and modernization/ expansion/rehabilitation
of existing cooperative spinning mills.

The basis objective of the scheme is to help cotton growers to fetch

remunerative price for their produce through value addition besides ensuring
supply of quality yarn and reasonable rates to the decentralized Weavers. Under
this component, financial assistance will be provided to the cooperative spinning
mills for share capital participation, modernization/ expansion of existing mills,
rehabilitation of sick cooperative spinning mills, margin money assistance to
cooperative spinning mills and State Cotton Federations, besides for setting up of
new and modernization of existing cotton ginning and pressing units.

iii) Integrated Cooperative Development Projects in selected districts

(ICDP):

This scheme aims to promote overall development of selected districts in

the country through cooperative efforts in agriculture and allied sectors including
fisheries, poultry, handloom and rural industries etc.; strengthen cooperative
network; promote business development plans by forging effective linkage with
credit and other institutional structure in the area; develop PACS as multi-
purpose entities and modernization of management of Cooperatives.

The component-wise details of physical and financial targets approved for

th
12 five year plan are given at Annexure-I and details of components are given
at Annexure-II.

3. Coverage /Area of operation:

The scheme is approved for its implementation in all parts of the country
covering all States and Union Territories (UTs).

4. Eligible Sectors for NCDC’s assistance under the scheme:

Agricultural Marketing, Processing, Storage, Computerization and weaker

sections’ Programmes, and input supply, Plantation/horticultural crops, SC & ST
cooperatives, tribal cooperatives, hill area cooperatives, dairy, poultry, livestock,
fisheries, handloom coir, jute, cash crops, sericulture, computerization of
cooperatives including PACS, DCCB and State Cooperative Banks, Spinning
Mills, modernization/expansion of existing mills, rehabilitation of sick Cooperative
Spinning Mills, Margin money assistance to cooperative spinning mills.

5. Eligible Organizations for seeking assistance from NCDC under the

scheme:

Financial assistance will be provided to cooperative societies as per

eligible sectors in para- 4 above.
Page 3/14
 Societies should not be less than three years older, having positive
balance net worth for last three years and having rich experience in the field for
which project is proposed under the scheme. In the case of government
sponsored projects for cooperatives, this condition could be relaxed on case to
case basis by Managing Director, NCDC.

6. Pattern of Assistance to NCDC under the scheme:

Component - I

Assistance for Marketing, processing (Small & medium sized processing

units including Fruit & Vegetable units, Oilseed, Foodgrains, Plantation Crops,
Cottage & Village Industries and Small Scale Industrial units, Handicrafts, Cane
bamboo units etc.), Storage, Consumer, Weaker Sections’ programmes
(Fisheries, Dairy, Poultry, Live Stock, Coir, Jute, Sericulture, Handloom and
Women Cooperatives).

Computerization of cooperatives (PACS, DCBs & SCBs), Creation of T&P

Cell Scheme (subsidy on tapering basis) for strengthening of management of
State Cooperative Federations.

Pattern of Assistance

A. The Assistance/ grants-in-aid under the scheme will be released by

Government of India to NCDC and the loan part will be managed by NCDC from
its own resources. The details of pattern of assistance/ grant-in-aid under the
scheme will be as per details given below:
(I) 25% Subsidy for Organizations / projects located in Cooperatively
Least Developed States.

(II) 20% subsidy for Organizations / projects located in Cooperatively

under Developed States.

(III) 15% subsidy for Organizations / projects located in Cooperatively

Developed States subject to the following restrictions:
i) Cap of Rs. 5 crores per project/ per proposal;
ii) For financing proposals of weaker sections only for activities
as identified by NCDC i.e. (a) Fisheries, (b) Tribal/SC & ST/
Hill Area Cooperatives, (c) Dairy, (d) Poultry, (e) Handloom, (f)
Coir, Jute & Tobacco, (g) Sericulture, (h) Women
Cooperatives and (i) Labour Cooperatives; and
iii) Only 20% of the total subsidy available under the plan/
scheme shall be provided for schemes/projects in
Cooperatively Developed States.

Page4/14
Component – II

Establishment of New and modernization of existing Ginning and Pressing

units;

Rehabilitation of sick Cooperative Spinning Mills (Assistance for package to

be evolved in consultation with concerned State Govt).

Establishment of new and expansion / modernization of existing cooperative

spinning mills.

Pattern of Assistance

15% subsidy for the above activities in all states.

Component – III

Integrated cooperative development project in selected districts

(a) All activities under the purview of NCDC may be covered keeping in
view the needs and potential in the participating districts.
(b) * Special focus on training and development of manpower in
cooperatives.
(c) * Managerial assistance applicable to project implementing agency
(PIA)/ project implementation team (PIT) and monitoring.
(d) * Incentives for the cooperative personnel.
(e) Dovetailing the subsidies available from any Department / Ministry /
agencies for passing on to cooperatives.

* In case of special category states, 100% subsidy under the scheme

while in other states shared equally between central grant and State
Government. Total subsidy component in a project would not exceed
30% of the total project cost. Pattern of assistance for ICDP is
enclosed as Annexure – III.

B. Following may also be ensured while implementing the subsidy linked

schemes:
(I) For balanced distribution of subsidy linked assistance to all sectors /
societies, repetition of grants / subsidy to a particular society for a
particular project is not allowed.

However, in case of projects wherein enhancement is due to reasons

beyond control of the society, viz.; natural calamities, policy decisions,
etc. the issue may be examined on case to case basis on merits by
BOM, NCDC and if required interim enhancement in the project cost
before completion of approved project may be allowed.

Page 5/14
 (II) The applicable assistance / subsidy across different interventions /
components under the scheme would be the same as in the case of
other ongoing schemes of the DAC or comparable schemes of other
departments / ministries;

(III) The Grants-in-aid / subsidy shall not be utilized for payment of salary /
remuneration to the staff except in respect of ICD Projects, T&P Cell
and salary under pre-operative cost of the infrastructure projects.

7. Procedure for submission of applications/ project proposals for

financial assistance from NCDC under the scheme:

(i) Rules/ Procedures shall be framed by the NCDC under intimation to the
Administrative Ministry for assistance from NCDC.

8. Release of Grant:

Subsidy / grants-in-aid shall be released on request of NCDC, in

prescribed format / proposal form. The release will be considered on submission
of the utilization certificate of the grants-in-aid released during the previous
financial year; detailed physical and financial progress report indicating the
approved activities for which the grant was utilized; details of unspent balances, if
any, and details of programmes / activities proposed to be undertaken during the
financial year. Audited statement of accounts may submitted as soon as
available.

9. Documents Required:

NCDC may prescribe the requirements of documents to be obtained form

the agency as per the nature and size of the project(s).

10. Implementation and monitoring of the projects sanctioned:

Annual Action Plan / Programme of activities and other financial

statements / documents for the scheme will be prepared by NCDC and submitted
to DAC. The implementing agencies shall develop a mechanism to verify the
projects at every stage to assess the performance.

For effective and smooth implementation of the projects under the scheme
regular monitoring is required. Therefore, in addition to the existing system of
project appraisal and monitoring of NCDC i.e. Central and Divisional Screening
Committees, Board of Management, General Council, etc., NCDC shall also
develop a system of requiring its implementing agencies to supervise all the
projects funded by NCDC and send regular returns on physical and financial
progress to DAC in the prescribed format (Appendix- I). The compilation of
these returns may be reviewed in the Cooperation Division, DAC on a quarterly
basis. In addition, NCDC may also undertake monitoring of some representative
Page 6/14
projects selected on the basis of random sampling and also conduct evaluation
of its schemes from time to time.

Further, NCDC would prepare a clear template for monitoring of the

scheme for its effective and smooth implementation and submit the same to
DAC. DAC shall also carry out inspection of subsidy linked projects on sample
basis, from time to time.

11. States specific focus:

States in North-East of India may be given due consideration while

implementing the scheme and not less than 10% Grant-in-aid should be utilized
for these States.

12. Sector specific focus:

24% of total grants-in-aid under the scheme should be utilized for SC/ST
societies (16% for SC and 8% for ST).

Besides the above, NCDC would ensure adequate coverage of societies

belonging to women and other weaker segments of society under their grant-in-
aid scheme to ensure that benefits of implementation are inclusive and accrued
to the intended beneficiaries in accordance with Government guidelines and
policies.

13. Convergence with other schemes of DAC / other Ministries /

Departments

NCDC and other implementing agencies / MSCS / National Federations

should make efforts for convergence of scheme with the other schemes of DAC
and other Departments / Ministries / Organizations / Agencies etc. to avoid any
over lapping / duplication of subsidy linked assistance. Panchayati Raj
Institutions shall also be appropriately consulted for ensuring that local /
Panchayati level requirements are adequately addressed.

14. Review and Reporting

The progress of implementation of the scheme / projects / societies would
be reviewed by the implementing agencies from time to time. Further, the
implementation of the scheme would be reviewed in DAC on quarterly basis.
Therefore, the progress of implementation of the projects by the societies would
be maintained by the implementing agencies / NCDC / Societies in prescribed
format attached (Appendix-I) and made available to DAC as and when required.

15. Evaluation
The evaluation of the performance of the scheme would be carried out
towards the end of 12th Plan or as advised by DAC.
Page 7/14
16. General Issues
i. There should not be any post-facto approval of grants for the projects /
societies.
ii. The projects should be completed in stipulated / approved time limit,
no extension should be given in general.

NOTE:
(i) If any relaxation in the implementation of these Guidelines is
considered necessary, the same may be done with the approval of
the Ministry.
(ii) Guidelines in respect component (iv) i.e. Assistance to Multi-State
Cooperative Societies (MSCS) / National Level Cooperative
Federations, which will be implemented directly by DAC, shall be
issued separately.

Page 8/14
 Annexure-I

The component wise and year wise projections of financial outlays and physical targets
approved for 12th five year plan in respect of the component of Assistance to NCDC
Programmes for Development of Cooperatives (subsidy & loan both) under the Central
Sector Integrated Scheme on Agricultural Cooperation.
(Rs. in crore)
PHYSICAL
TARGETS
FINANCIAL PROJECTIONS (RS. IN CRORE)
(NEW
SANCTIONS)
YEAR LOAN SUBSIDY TOTAL
2012-13
i. Assistance for marketing, processing, storage etc. for 5097*
107.44 54.11 161.55
Cooperative Development
ii. Assistance for Cotton Development, G& P Programmes and 7
Establishment of New & Modernization / Expansion / 20.05 3.00 23.05
Rehabilitation of Existing Cooperative Spinning Mills
iii. Integrated Cooperative Development Projects (ICDP) in selected 16
267.27 11.89 279.16
districts
Total 394.76 69.00 463.76 5120
2013-14
i. Assistance for marketing, processing, storage etc. for 248.95 99.35 348.30 160
Cooperative Development (62.50)
ii. Assistance for Cotton Development, G& P Programmes and 133.20 28.80 162.00 9
Establishment of New & Modernization / Expansion / (7.00)
Rehabilitation of Existing Cooperative Spinning Mills
iii. Integrated Cooperative Development Projects (ICDP) in selected 124.00 16.00 140.00 19
districts (12.50)
Total 506.15 144.15 650.30 188
(82.00)
2014-15
i. Assistance for marketing, processing, storage etc. for 342.21 132.84 475.05 160
Cooperative Development (70.50)
ii. Assistance for Cotton Development, G& P Programmes and 195.59 42.73 238.32 8
Establishment of New & Modernization / Expansion / (18.00)
Rehabilitation of Existing Cooperative Spinning Mills
iii. Integrated Cooperative Development Projects (ICDP) in selected 76.25 17.37 93.62 19
districts (12.50)
192.94 187
614.05 806.99
Total (101.00)

Page 9/14
 Annexure-I (Contd.)
Physical
YEAR LOAN SUBSIDY TOTAL Target
2015-16
i. Assistance for marketing, processing, storage etc. for 160
Cooperative Development
342.20 132.85 475.05
ii. Assistance for Cotton Development, G& P Programmes and
Establishment of New & Modernization / Expansion / 195.58 42.73 238.31 8
Rehabilitation of Existing Cooperative Spinning Mills
iii. Integrated Cooperative Development Projects (ICDP) in selected 18
districts
76.24 17.37 93.61
Total 614.02 192.94 806.97 186
2016-17
i. Assistance for marketing, processing, storage etc. for 160
Cooperative Development
342.20 132.85 475.05
ii. Assistance for Cotton Development, G& P Programmes and 8
Establishment of New & Modernization / Expansion / 195.58 42.74 238.32
Rehabilitation of Existing Cooperative Spinning Mills
iii. Integrated Cooperative Development Projects (ICDP) in selected 18
districts
76.24 17.37 93.61
Total 614.02 192.96 806.98 186
2012-13 to 2016-17
i. Assistance for marketing, processing, storage etc. for 5737
Cooperative Development
1383.00 552.00 1935.00
ii. Assistance for Cotton Development, G& P Programmes and 40
Establishment of New & Modernization / Expansion / 740.00 160.00 900.00
Rehabilitation of Existing Cooperative Spinning Mills
iii. Integrated Cooperative Development Projects (ICDP) in selected 90
districts
620.00 80.00 700.00
Grand Total 2743.00 792.00 3535.00 5867
* includes 5015 societies sanctioned margin money @Rs.2 lakh / society. Total assistance
sanctioned is Rs.100.30 crores, however amount sanctioned per society is meager.

While the loan component will be provided by NCDC from its own resources / market
borrowings, the subsidy would be provided by the Department of Agriculture and
Cooperation, Ministry of Agriculture. Apart from this outlay of Rs. 22500 crores has been
th
proposed during 12 Five Year Plan under the Cooperation Sponsored Scheme for which
the funds will be arranged by NCDC from its sources. Apart from this outlay of Rs.22500
th
crores has been proposed during 12 Five Year Plan under the Corporation Sponsored
Scheme for which the funds will be arranged by NCDC from its sources.
Note : Figures in brackets indicate funds allotment under RE (2013-14) and
Annual Plan/BE (2014-15).

Page 10/14
 Annexure – II
Details of components, activities and pattern of subsidy in 12th Five Year Plan
S.No. Component Activities / Cooperatives Pattern of subsidy assistance

1. Assistance for Marketing, Processing, Storage etc. Assistance for Marketing, Processing*, Storage, Cold A. Cooperative Least Developed States : 25%
programmes in Cooperatively Under and Least Storage, Consumer, Weaker Section** programmes. B. Cooperatively Under Developed States : 20%
Developed States. Computerization of cooperatives (PACS, DCBs &
SCBs)+, Creation of T&P Cell Scheme (subsidy on
tapering basis) for strengthening of management of
State Cooperative Federations.
(Margin Money, Term Loan, Investment Loan &
subsidy)

Assistance for Marketing, Processing, Storage etc. Fisheries, Tribal, SC/ST, Hill Area Cooperatives, Dairy, Cooperatively Developed States : 15%
programmes in Cooperatively Developed States Poultry, Handloom, Coir, Jute, Tobacco, Sericulture,
Women Cooperatives, Labour Cooperatives.
(Margin Money, Term Loan, Investment Loan &
subsidy)

2. Assistance for Cotton development including • Establishment of New and modernization of

Ginning & Pressing units, Establishment of new existing Ginning and Pressing units;
and modernisation / expansion / rehabilitation of
existing Cooperative Spinning Mills • Rehabilitation of sick Cooperative Spinning Mills.
(Assistance for package to be evolved in All states, All Components : 15%
consultation with concerned State Govt).

• Establishment of new and expansion

/modernization of existing cooperative spinning
mills. (Margin Money, Term Loan, Investment Loan
& Subsidy)

Page 11/14
 Annexure-II Contd……….
S. Component Activities / Cooperatives Pattern of subsidy assistance
No.

3. Integrated Cooperative Development For all activities under the purview of NCDC
Projects in selected districts. in participating district with special focus on 1. Manpower
training and development of manpower in Development &
cooperatives. Training Special category States 100%,
(Margin Money, Term Loan, Investment while for other States 50% (balance
Loan & Subsidy towards managerial 2. Managerial to be contributed by State Govt..
assistance for Project Implementing agency assistance from their own resources )
(PIA)/ Project Implementation Team (PIT) (applicable to PIA and
to meet the cost of PIA/PIT, monitoring, Monitoring Cell also)
incentives and subsidy dovetailed for and incentives
beneficiary cooperatives. 3. For sub-projects of cooperatives in ICDP, the pattern applicable in
case of normal NCDC Schemes for the given State / Activity /
Category shall be appied. The subsidy assistance available from any
Deptt / Ministry / Agencies shall be dvvetailed for passing on to the
cooperatives.

Total subsidy (1, 2 & 3) in the project restricted to 30% of the project
cost.

* Small & medium sized processing units include Fruit & Vegetable units, Oilseed, Foodgrains, Plantation Crops, Cottage & Village Industries and Small
Scale Industrial units, Handicrafts, Cane bamboo units etc.
** Weaker section programmes / activities which are:-
Fisheries, Dairy, Poultry, Live Stock, Coir, Jute, Sericulture, Handloom, Tribal / SCs and STs / Hill area, Tobacco, Labour and Women Cooperatives.

Note: Inter-component transfers of funds may be permitted with approval of DAC.

Page 12/14
 ANNEXURE-III

PATTERN OF ASSISTANCE IN RESPECT OF INTEGRATED COOPERATIVE DEVELOPMENT PROJECTS IN

SELECTED DISTRICTS (ICDP)

Sl. Activity From NCDC to State From State Government to Society

No. Government
Loan Sub. Total Loan Share Sub. Total
Capital
(i) Manpower - @50% @50% - - 100% 100%
Development &
Training
(ii) Managerial - @50% @50% - - 100% 100%
assistance
(applicable to
PIA and
Monitoring Cell
also) and
incentive
(iii) For sub-projects of cooperatives in ICDP, 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 cooperatives. The subsidy assistance available from any
Deptt./Ministries/agencies shall be dovetailed for passing on to the cooperatives.

The total subsidy component in a project would not exceed 30% of the total project cost.

@ In the case of states classified as ‘Special Category States’, 100 per cent subsidy shall be given out of the scheme to State
Government under items No. (i) and (ii) above.

Page 13/14
 APPENDIX- 1

Central Sector Integrated Scheme on Agricultural Cooperation

Monthly Progress Report for the Month of _________________

DETAILS OF PROJECT
Name of Name of Project Type of Purpose Total cost Total cost sanctioned Completion Cumulative sanctions / Category / Monitoring Remarks
Society, project Location society /objective proposed schedule disbursements component schedule
Address, SC/ST, under which
Regn. No. & Women, sanctioned
date General

Loan Sub. Society Total Loan Sub. total

share

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Page 14/14
 ANNEXURE-B

National Cooperative Development Corporation

….

Sub: Operational Guidelines for Implementation of Central Sector Integrated

Scheme on Agricultural Cooperation of the Department of Agriculture
and Cooperation (DAC) by NCDC

Under the for Central Sector Integrated Scheme on Agricultural Cooperation

(CSISAC), NCDC shall provide financial assistance in the form of loan (both Term
Loan and Investment Loan) and subsidy to the cooperative societies for their
development.

2. The loan component shall be provided from out of NCDC’s own funds while
the subsidy will be provided from outlay earmarked by Department of Agriculture &
Cooperation, Ministry of Agriculture, Government of India under the CSISAC.

3. The scope of the Scheme covers whole of India.

4. For the purpose of NCDC’s funding the states are categorised as under :
- Cooperatively Least Developed States /Union Territories. {Arunachal
Pradesh, Assam, Bihar, Jharkhand, Jammu & Kashmir, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura};

- Cooperatively Under Developed States/Union Territories. {Andhra

Pradesh*, Chhattisgarh, Goa, Himachal Pradesh, Madhya Pradesh,
Odisha, Rajasthan, Telangana, Uttar Pradesh, Uttarakhand, West Bengal,
Andaman & Nicobar Islands (UT) and Lakshadweep (UT)};

- Cooperatively Developed States/Union Territories. {Gujarat, Haryana,

Karnataka, Kerala, Maharashtra, Punjab, Tamilnadu, Chandigarh (UT),
Dadra & Nagar Haveli (UT), Daman & Diu (UT), Puducherry (UT), Delhi }

5. There are three components of the CSISAC Scheme as detailed in

Annexure -A.

5.1 COMPONENT – I

5.1.1 NCDC provides assistance for activities related to (i) Marketing,

(ii) Processing (Small & Medium sized processing units related to agriculture and
allied activities), (iii) Storage including Cold Storage and (iv) Consumer business.

Page 1/6
 5.1.2 Weaker Section Programme shall include programmes related to activities
mentioned at (i) to (iv) above taken up by (a) Fisheries, (b) Dairy & Livestock,
(c) Poultry, (d) Coir, (e) Jute, (f) Sericulture, (g) Handloom & (g) Tobacco
Cooperatives. Apart from these programme/activities, Weaker Section benefits will
also be extended to Tribal / Scheduled Caste/ Scheduled Tribe/ Hill area, Labour
and Women Cooperatives for undertaking the above activities (5.1.1 above).

5.1.3 The pattern of funding under the Component – I is detailed here under:
A. Margin Money for Business Development:
To cover all levels of cooperatives for sectors/activities funded by NCDC
Developed States/UTs Under Developed States/UTs Least Developed States/UTs
(For Weaker Section Programme only) (For all activities as detailed at Para 5.1.1) (For all activities as detailed at Para 5.1.1)
(For all activities as detailed at Para 5.1.1)
NCDC to S/Govt to Direct NCDC to S/Govt to Direct NCDC to S/Govt to Direct
S/Govt. Society Funding S/Govt. Society Funding S/Govt. Society Funding
Loan 85% Loan Loan 85% Loan 80% Loan and/or Loan 80% Loan 75% Loan Loan 75%
and/or SC SC 80% and/or
85% SC 75%
Sub. 15% Sub. 15% Sub. 15% Sub 20% Sub 20% Sub 20% Sub 25% Sub 25% Sub 25%
S/Govt. – State Government; Sub - Subsidy; SC - Share Capital
Subsidy subject to availability from Govt. of India otherwise equivalent loan from NCDC

B. Assistance for Infrastructure Creation (Project Facilities), Capital Asset

Creation, Establishment of Small & Medium scale Agro & Allied
Processing Units, Computerisation etc.
NCDC shall provide assistance for establishment/ renovation/ expansion/
upgradation & modernisation of godowns, storage, & cold storages, worksheds,
workshed cum showroom, showroom, warehouse, small & medium scale agro &
allied sector processing units including pre/post loom processing/garment & knitting
units; creation of infrastructure for marketing; purchase of furniture & fixtures;
transport vehicles including refrigerated vans; purchase/ installation of computers/
computerization (including hardware, software, networking, site preparation,
manpower, training etc.).

Assistance shall also be provided for supply of agriculture inputs by

establishment of bio-fertiliser unit; agro service/custom hiring centers/ service/repair
centers/ workshops, agricultural inputs manufacturing and allied units – small/
medium sized insecticides/pesticides formulation units, seed processing units etc.);
Consumer business by establishment of diesel, kerosene bunk/warehouse,
new/expansion/modernisation of wholesale consumer cooperative stores/
departmental consumer cooperative store/ Consumer Federations; Fisheries
Cooperative for purchase of operational inputs such as fishing boats, nets, and
engines, development of inland fisheries, seed farms, hatcheries, etc. and
Integrated Fisheries Projects (Marine, Inland and Brackish Water); Livestock
Cooperative for setting up of slaughter houses; purchase of livestock animals for
breeding, rearing, meat, fleece, skin, wool and other by-products.
Page 2/6
Developed States/UTs Under Developed States/UTs Least Developed States/UTs
(For Weaker Section Programme only) (For all activities as detailed at Para 5.1.1) (For all activities as detailed at Para 51.1)
(For all activities as detailed at Para 5.1.1)
NCDC to S/Govt. to Direct NCDC to S/Govt. to Direct NCDC to S/Govt. to Direct
S/Govt. Society# Funding S/Govt. Society Funding S/Govt. Society Funding
Loan 75% Loan 50% Loan 65% Loan 70% Loan 50% Loan 65% Loan 70% Loan 50% Loan 65%
Sub 15% SC 25% Sub 15% Sub 20% SC 20% Sub 20% Sub 25% SC 20% Sub 25%
Sub 15% Sub 20% Sub 25%
Members’ 10% 20% 10% 15% 5% 10%
contribution
 S/Govt. – State Government; Sub - Subsidy; SC - Share Capital;
 Subsidy subject to availability from Govt. of India otherwise equivalent loan from NCDC;
 In case of “Computerisation” programme 100% assistance (i.e. as loan / Subsidy/ Share Capital) may be provided thro
Govt. or directly to the beneficiary in all States;
 # Debt equity ratio may vary depending upon viability of the proposed project.

C. Technical and Promotional Cell

i. All state level cooperative federations (excluding those connected with
the weaker sections programmes):

Under - Developed States Least – Developed States

Subsidy for employment of Subsidy for employment of
professionals to be provided for a professionals to be provided for a
period of 5 years on a tapering period of 7 years on a tapering
scale. scale.
i) 100% in the first 2 years. i) 100% for the first 5 years.
ii) 80% in the 3rd & 4th year. ii) 80% for the subsequent
iii) 70% in the 5th year. 2 years.
ii. All Federations connected with the weaker sections programmes:
Subsidy for employment of professionals to be provided for a period
of 7 years on a tapering scale.
i) 100% for the first 5 years.
ii) 80% for the subsequent 2 year.

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.

5.2 COMPONENT -II:

5.2.1 NCDC shall provide assistance for establishment of modern and
modernisation/expansion of existing ginning & pressing unit organised by cotton
growers and their cooperatives with the objective of improving the quality of lint,
material handling for improvement in quality of cotton which is used as major raw
material for textile unit. NCDC also provides financial assistance for establishment of
new/modernisation & expansion of existing cooperative spinning mills organised by
Page 3/6
cotton growers and weavers in the country. Under WTO spinning mills are free to
use natural and manmade fibers as raw material.

5.2.2 The activities covered and pattern of funding are as under:

From NCDC to State Govt. From State Govt. to Society Direct Funding
(a) Establishment of New Cooperative Spinning Mills
Term Loan 50% Term Loan 50% Term Loan 60%
Investment Loan 25% Share Capital 25% Subsidy 15%
Subsidy 15% Subsidy 15% Members Contribution 25%
Members Contribution 10%
(b) Modernization/Expansion of Existing Spinning Mill
Term Loan 45% Term Loan 45% Term Loan 60%
Investment Loan 30% Share Capital 30% Subsidy 15%
Subsidy 15% Subsidy 15% Members Contribution 25%
Members Contribution 10%
(c) Margin Money Assistance for Coop. Spinning Mills & State Coop. Cotton Federation
Term Loan 85% Term Loan 85% Term Loan 85%
Subsidy 15% Subsidy 15% Subsidy 15%

(d) Establishment of Modern Ginning & Pressing Unit, Modernisation/Expansion of Existing

Unit
Term Loan 50% Term Loan 50% Term Loan 50%
Investment Loan 25% Share Capital 25% Subsidy 15%
Subsidy 15% Subsidy 15% Members Contribution 35 %
Members Contribution 10%

(e) Rehabilitation of Sick Coop. Spinning Mills

Investment Loan 75% Investment Loan 75% Not Applicable
Subsidy 15% Subsidy 15% (State Govt’s involvement
Members Contribution 10% is mandatory)

5.3 COMPONENT - III:

5.3.1 One of the important schemes of the NCDC is “Integrated Cooperative
Development Project (ICDP) Scheme” which was introduced in the year 1985-86
and aims at:
 Development of Primary Agricultural Credit Societies as multi purpose self-
reliant entities;
 Development of allied sector cooperatives; and
 Development of viable functional linkages among cooperatives.

5.3.2 Under the Scheme, an area development approach is adopted for

development of cooperatives. A Macro Plan is prepared for the whole of selected
district, keeping in view the local resources and needs. The Project is implemented
by a Project Implementing Agency (PIA) selected by the State Government in
consultation with NCDC. Generally the project is implemented by the by the District
Central Cooperative Bank. To assist the PIA in project implementation, a project
implementation team (PIT) is constituted at the district level to prepare Business
Development Plan for the societies, assess the society-wise infrastructural and
margin money and provide assistance accordingly. The systems and procedures are
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 streamlined and viable functional linkages are established to make the operations
cost effective.

5.3.3 Gaps in managerial skills are identified and necessary training is provided to
personnel in cooperatives. PIT personnel provide on the job training and guidance to
the cooperatives. The Scheme also has an incentive component for motivating the
paid staff of primary cooperatives to perform better and improve the functioning of
the cooperatives.

5.3.4 NCDC funds the ICD Projects through State Govt. The project funding is
under two heads - Loan and Subsidy. The loan is for creation of infrastructure and
strengthening of share capital / providing margin money for augmenting the business
of the societies. Subsidy is provided for project implementation, manpower
development and training, monitoring and incentives. Subsidy assistance available
from any department / ministries / agencies shall be dovetailed for passing on to the
cooperatives.

5.3.5 The activities covered and the pattern of funding are as under:

SN Activity From NCDC to S/Govt. From S/Govt. to Cooperatives

Loan Sub Total Loan S/cap. Sub. Total
A. Cooperatively Least Developed States
i) Infrastructure Creation (Component I & II) 75% 25% 100% 50% 25% 25% 100%
ii) Margin money to beneficiaries societies 75% 25% 100% - 75% 25% 100%
iii) Share capital to DCCBs 100% - 100% - 100% - 100%
iv) Manpower Development & Training - 50% @ 50%@ - - 100% 100%
v) Managerial assistance to PIA and Monitoring - 50%@ 50%@ - - 100% 100%
Cell etc.
B. Cooperatively Under-Developed States
i) Infrastructure Creation (Component I & II) 80% 20% 100% 50% 30% 20% 100%
ii) Margin money to beneficiaries societies 80% 20% 100% - 80% 20% 100%
iii) Share capital to DCCBs 100% - 100% - 100% - 100%
iv) Manpower Development & Training - 50%@ 50% @ - - 100% 100%
v) Managerial assistance to PIA and Monitoring - 50%@ 50%@ - - 100% 100%
Cell etc.
C. Cooperatively Developed States
a) Weaker Section Programme / Activities
i) Infrastructure Creation (Component I) 85% 15% 100% 50% 35% 15% 100%
ii) Margin money to beneficiaries societies 85% 15% 100% 50% 35% 15% 100%
iii) Share capital to DCCBs 100% - 100% - 100% - 100%
iv) Manpower Development & Training - 50%@ 50%@ - - 100% 100%
v) Managerial assistance to PIA and Monitoring - 50%@ 50% @ - - 100% 100%
Cell etc.
b) Other than Weaker Section Programme / Activities
i) Infrastructure Creation (Component I & II) 100% - 100% 50% 50% - 100%
ii) Margin money to beneficiaries societies 100% - 100% 50% 50% - 100%
iii) Share capital to DCCBs 100% - 100% - 100% - 100%
iv) Manpower Development & Training - 50%@ 50%@ - - 100% 100%
v) Managerial assistance to PIA and Monitoring - 50%@ 50%@ - - 100% 100%
Cell etc.
Note:
 Total subsidy component under any project shall, however, not exceed 30% of the total project cost.
 Subsidy assistance available from any department / ministries / agencies shall be dovetailed for passing on to the cooperatives.
 The subsidy is shared between the NCDC and the State Government on 50:50 basis.
 In case of special category states indicated as @ in the table above, entire subsidy component is provided by the NCDC. The
special category states are all North-Eastern States, Sikkim, Himachal Pradesh, Jammu & Kashmir and Uttrakhand.
Page 5/6
6. NOTES FOR AVAILING NCDC ASSISTANCE:
6.1 General Criteria
i) 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 Government
makes good the members’ part of the share.
ii) In case of projects funded under specific schemes of the Government of
India/other Institutions, their pattern of assistance will apply.
iii) The Schemes of NCDC could be dovetailed with the schemes of Govt. of
India/Departments of Government/any other source(s). The pattern of
assistance will be adjusted accordingly, with the condition that only one
central subsidy shall be available. State Government can however
contribute subsidy from their sources, if considered desirable.
iv) 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.
v) Direct funding will be as per the guidelines decided by NCDC from time
to time.
vi) Pattern of assistance indicates the maximum limit of financial assistance
that can be provided.
vii) Programme/Project should meet the Statutory/Obligatory requirements
viz. pollution, environment, hygiene etc.
viii)Cooperatives shall normally have a democratically elected Board,
professionally managed and proper arrangements for forward and
backward linkages.

6.2 Norms for Direct Funding

The details are available in NCDC’s website: www.ncdc.in under the heading
“Eligibility for Direct Funding” which will be applicable for implementation of
programmes under CSISAC.

6.3 Procedure for availing NCDC’s assistance

Cooperative societies intending to avail NCDC’s assistance may contact the
Office of Registrar of Cooperative Societies(RCS)/Commissioner in charge of
the specific programme / Agriculture & Cooperation Department/ Regional
Offices of NCDC. The list of NCDC’s Regional Offices, its jurisdiction,
contact numbers, email address etc. are available in NCDC’s website under
the heading “Regional Directorate”. The Common Loan Application Forms
for various activities are also available in NCDC’s website under heading
“Application Form” which may be utilised.
….
Page 6/6
 Annexure-C

NCDC FIELD OFFICES

BENGALURU BHOPAL BHUBANESWAR

K.H.B. Complex, A-8, 3rd Floor, Alok Bharati Complex (G.F.),
3rd Floor, National Games Village, Platinium Plaza, Sahib Nagar,
Koramangala, T.T. Nagar, Bhopal-462003. Bhubaneshwar-751 007.
Bengaluru-560 047. Ph. 0755-2774175 Fax:2763647 Ph.0674-2542107 Fax:0674-2545874
Ph.2251474 Fax:2287017 E-mail: RO.Bhopal@ncdc.in E-mail: RO.Bhubaneswar@ncdc.in
E-mail: RO.Bangalore@ncdc.in

(Jurisdiction Karnataka) (Jurisdiction Madhya Pradesh) (Jurisdiction Ohisha)

CHANDIGARH CHENNAI DEHRADUN

SCO 82-83, 2nd floor, 35, Garment Complex, B-2, Friends Enclave,
Sector -17-C, 2nd floor, Industrial Estate, Shah Nagar, Gorakhpur Post Office,
Chandigarh-160017. Guindy, Chennai-600 032. Defense Colony, Dehradun-248001
Ph.0172-2702007 Fax:0172-27221262 Ph.22500034 Fax: 22500034 Ph: 0135-2665125
E-mail: RO.Chandigarh@ncdc.in E-mail: RO.Chennai@ncdc.in E-mail:RO.Dehradun@ncdc.in

(Jurisdiction Punjab, Haryana, J&K, (Jurisdiction Tamilnadu, Puducherry) (Jurisdiction Uttrakhand)

Chandigarh)

GANDHINAGAR GUWAHATI HYDERABAD

Plot No. 272-273, Bora Service Station Bldg., 5-10-193, HACA Bhavan,
Sector-16, G.S. Road, Ulubari, 2nd floor, Opp.Public Gardens,
Gandhi Nagar-382 016. Guwahati-781007. Hyderabad-500 004.
Ph.079-23222293 Fax:079-23238292 Ph.0361-2526327 Fax:0361-2544427 Ph. 040-23233760 Fax:040-23240615
E-mail: RO.Gandhinagar@ncdc.in E-mail: RO.Guwahati@ncdc.in E-mail: RO.Hyderabad@ncdc.in

(Jurisdiction Gujarat, Daman & Dui) (Jurisdiction Assam, Meghalaya Manipur, (Jurisdiction Andhra Pradesh)
Tripura, Nagaland, Arunachal Pradesh,
Mizoram)

JAIPUR KOLKATA LUCKNOW

1st floor, Central Block, P-161/1,VIP Road, Sahakarita Bhavan,
Nehru Sahakar Bhawan, 4th Floor, 14, Vidhan Sabha Marg,
Bhawani Singh Road, Jaipur-302001. Kolkata-700 054. Lucknow-226001.
Ph. 0141-2740327 / 2740320 Ph.2355-5538/4943 Fax(033)2355-5538 Ph.0522-2613093 Fax:0522-2211565
Fax:0141-2740320 E-mail: RO.Kolkata@ncdc.in E-mail: RO.Lucknow@ncdc.in
E-mail: RO.Jaipur@ncdc.in

(Jurisdiction Rajasthan) (Jurisdiction West Bengal, Sikkim and (Jurisdiction Uttar Pradesh)
Andaman & Nicobar Island)

PUNE PATNA RAIPUR

5, B.J.Road, BLOCK-A, 2nd Floor, House No.199 A, 1st Floor,
Pune-411 001. Maurya Lok Complex, Main Road, Samta Colony
Ph. 26127049 Fax: 26128027 Dak Bunglow Road, Patna-800 001. Raipur-492 001
E-mail: RO.Pune@ncdc.in Ph.0612-2221467 Fax:0612-2211604 Ph: 0771-2106446 Fax: 0771-2442086
E-mail :RO.Raipur@ncdc.in
Email: RO.Patna@ncdc.in
(Jurisdiction Maharashtra, Goa, Dadra & (Jurisdiction Chhattisgarh)
Nagar Haveli)
(Jurisdiction Bihar)

RANCHI SHIMLA THIRUVANANTHAPURAM

M-23 / DS, Kay Kay House 5th floor,
Harmu Housing Colony, Near Tara Hall School, “CO-BANK Towers”,
Ranchi-834 012 Upper Kaithu, Shimla-171 003. Thiruvananthapuram-695 033.
Ph: 9234171496 Fax:0651-2241494 Ph. 2657689 Fax: 2658735 Ph.0471-2318497 Fax:0471-2311673
E-mail: RO.Ranchi@ncdc.in E-mail: RO.Shimla@ncdc.in E-mail: RO.TVM@ncdc.in

(Jurisdiction Jharkhand) (Jurisdiction Himachal Pradesh) (Jurisdiction Kerala , Lakshadweep)