The Hindu : State likely to get Rs. 80 cr. NCDC aid

Online edition of India's National Newspaper
Friday, May 02, 2003

Southern States

Southern States - Karnataka

State likely to get Rs. 80 cr. NCDC aid

By Nagesh Prabhu

BANGALORE MAY 1. The State ranked second in receiving financial assistance from the National Cooperative Development Corporation (NCDC) during the financial year 2002-03.

The State received Rs. 54.05 crore while Maharashtra got Rs. 67.72 crore from NCDC during the period.

The State received less financial assistance in 2002-03 compared to the previous year (Rs. 67.57 crore).

The NCDC is likely to increase the assistance to Rs. 80 crore in 2003-04, N.P. Velumani, Regional Director of NCDC, told The Hindu on Thursday.

The State's share in the total percentage of NCDC assistance has gone up over the years, particularly since 1997-98. Its share increased from 2.48 per cent in 1994-95 to 10.51 per cent in 2002-03.

The State received the highest financial assistance of Rs. 83.73 crore (12.03 per cent) in 2000-01 and the lowest of Rs. 9.56 crore in 1994-95 (2.48 per cent).

The establishment of more cooperatives in areas such as sugar, fisheries, weaving, horticulture, sericulture, and dairy farming is one of the reasons for the increase in NCDC's assistance to the State. "The NCDC has a plan to give assistance to cooperative hospitals in the State from this year," he said.

Mr. Velumani said 15 State-level federations/societies and bodies affiliated to them were under the purview of NCDC schemes. Of the nearly 30,000 cooperatives in the State, 18,000 were under the purview of NCDC schemes before the amendment to the NCDC Act last year. ``With the amendment to the Act, many new cooperatives in areas such as industrial and service are likely to be covered under NCDC schemes for financial assistance. The amendment will help NCDC extend assistance directly to the cooperatives without the State Government's guarantee,'' he added.

The NCDC aided 50 projects during 2002-03 and many major cooperatives received assistance from it during the period. Major cooperatives that received assistance were Coir Industrial Products Cooperative (Rs. 6.73 crore); Karnataka Cooperative Textiles Processors Ltd., Borgaon in Belgaum District, (Rs. 8.73 crore); Mahatma Gandhi Sahakara Sakkare Karkane, Balki, (Rs. 25.30 crore); Campo (Rs. 10 crore); and Balaji Powerloom Cooperative Society (Rs. 77.59 lakh).

For the first time in the country, the State Government has introduced a novel system for the timely release of NCDC assistance for the establishment of sugar factories in the cooperative sector.

Under this system, an account has been opened with the Karnataka State Cooperative Apex Bank in the name of Principal Secretary (Cooperation). The demand draft issued by NCDC as advance amount will be deposited with the bank and then the money will be released to the cooperative sugar factor concerned directly. Nine sugar factories have received Rs. 15 crore under the system.

Earlier, the Government used to delay the release of NCDC funds to factories citing various reasons.

He said efforts were on in other States to adopt a similar system. Possibilities were being explored in the State to adopt the system in other cooperative projects.

Mr. Velumani said integrated cooperative development projects (ICDPs) were being successfully implemented in the districts selected for the purpose. Cooperatives set up under the project were providing foodgrains and other commodities at reasonable rates.

To promote cooperatives and the spirit of competition in the State, the NCDC had instituted the "NCDC Award for Cooperative Excellence". Prathamik Krushi Pattina Sahakari Bank Ltd. of Hirepadasalagi in Bagalkot District received the award for 2002-03.

He said that in order to recommend the proposals of cooperatives to NCDC for financial assistance, the Registrar of Cooperative Societies had been designated as "nodal officer". All proposals seeking NCDC assistance were being routed through the nodal officer, he added.

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