In a move to encourage cooperative start-ups and business ventures in agriculture and allied sectors, the Ministry of Agriculture on Wednesday launched a new scheme that aims to provide cheaper loans to start-ups in the cooperative sector and those having innovative projects costing up to Rs 3 crore.
The scheme is called 'Yuva Sahakar Cooperative Enterprise Support and Innovation Scheme' will be implemented by the National Cooperative Development Corporation (NCDC). A corpus fund of Rs 1,000 crore has been created to this purpose. The scheme would be liberal to cooperatives in the north eastern region, those registered and operating in 'aspirational districts' identified by think-tank Niti Aayog as well as cooperatives which have 100 per cent women and SC/ST members. The heavily incentivised scheme has component of subsidy as well as interest subvention and cooperative registered even one years ago will be eligible.
Launching the scheme, Union Agriculture Minister Radha Mohan Singh said that the new scheme aims to encourage newly formed cooperatives to take advantage of innovative ventures, especially by societies having new and innovative ideas. "Cooperatives operating for at least for one year and having a positive net worth are eligible to avail credit under the scheme for new and innovative project ideas", Singh said.
The project cost should not exceed Rs 3 crore and there will be two years moratorium on payment of principal amount, he said, adding that the period of moratorium may vary depending on type of project and ability to generate revenue. NCDC lending so far has been to cooperatives working in fishery, sugar, textiles, foodgrains, crops, fruits, vegetables, cold storage, water conservation, dairy, poultry, handlooms, coir and seri culture so far. There are eight lakh registered societies in the country.
As an incentive, the Minister said the credit will be provided at two per cent less than the applicable interest rate on term loan for the project activities. The interest rate incentive would be applicable only for timely repayers.