File No.

APSCFL-15022/3/2020-DEVELOP SEC-APSCCFCL

ANDHRA PRADESH SCHEDULED CASTES CO-OPERATIVE

FINANCE CORPORATION, TADEPALLI, AMARAVATI

Sri K Harshavardhan, IAS.,

VC & Managing Director (FAC)

Lr.No. NSFDC/1109474/APSC/2020-21 Dated: 07/12/2021

To
All the District Collectors/Chairmen
DSCSCS Ltd.,
In Andhra Pradesh

Sir/Madam,

Sub: APSCCFC Ltd., Tadepalli, Amaravati – NSFDC - Sanctions of Innova

cars under – Transport sector with NSFDC Loan – identification of SC
beneficiaries and Delivery of the INNOVA vehicles - issue of certain
guidelines - Regarding.
Ref: Letter No.1109474/2021-SW-SCP, Dated: 25.11.2021

-=*=-

I invite kind attention to subject and reference cited.

It is to inform that, the APSCCFC has availed loans from National

Scheduled Castes Finance Development Corporation (NSFDC). The basic
objective of the project is to provide easy access to credit facility for the poor
SC beneficiaries and educated unemployed SCs at lesser rate of interest for
establishment of Self Employment units.

Under SCAP 2021-22, the following District-wise targets were allotted as

per projected census regarding SC population - 2021-22.

% of SC to
110
Total
Sl. Name of the Total Total SC Distribution Innovas
Population
No. Districts Population Population % @ 20.94
in the
Lakh
District
1 Guntur 5350492 1120565 20.94 11.63% 13
2 East Godavari 5564059 1025906 18.44 10.64% 12
3 Krishna 4872889 1015959 20.85 10.54% 12
4 Prakasam 3772820 952766 25.25 9.88% 11
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5 West Godavari 4138651 915864 22.13 9.50% 10

6 Chittoor 4651199 879113 18.9 9.12% 10
7 Kurnool 4655218 866260 18.61 8.99% 10
8 Nellore 3291160 756764 22.99 7.85% 9
9 Ananthapuramu 4575160 660418 14.43 6.85% 8
10 Kadapa 3193419 529837 16.59 5.50% 6
11 Visakhapatnam 4803638 372781 7.76 3.87% 4
12 Srikakulam 2879432 284676 9.89 2.95% 3
13 Vizianagaram 2443725 257829 10.55 2.67% 3
Andhra Pradesh 54191862 9638737 17.79 100.00% 110

1. All the District Collectors are requested to invite fresh applications from
the SC poor unemployed youth and the Executive Directors, SC
Corporation based on the Grievances of Spandana and through paper
notifications. The District Collector will be the Chairman for the selection
of the beneficiaries and distribution of the vehicles.
2. FUNDING PATTERN:

Category : Individual
Unit Cost : Rs.20.86 lakhs
Subsidy : 35%
Beneficiary Contribution : 2%
NSFDC : Balance

3. ELIGIBILITY CRITERIA:

a. Annual income below double poverty line (Rs 3.00 lakhs urban areas)
b. Age of candidates should be between 18 to 50 years and
c. Beneficiaries with loan outstanding are not eligible under the scheme
d. Minimum educational qualification is 10 t h pass or fail.
4. For the Schemes like passenger Transport Vehicles and lnnova cars where
the unit cost is Rs. 20.00 lakhs, the subsidy is 35%.

Preference to be given to the candidates who have passed 10 th class and

have technical qualification required for the scheme (permanent driving
license under Transport sector) and unemployed candidates whose claims are
deferred by bank and families affected by Covid-19. If the main bread winner
of the family has died due to Covid-19 preferences to be given in selection of
beneficiary.

5. Documentation:
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Documentation and implementation guidelines are followed for NSFDC.

• Documentation forms a very important part in the implementation

of schemes. One of the primary objectives of the corporation is to
mobilize the required institutional finance for implementing the schemes
to uplift S.C. families. This is being done by borrowing term loan
assistance from NSFDC, New Delhi and providing subsidy from the
corporation. The loan component is to be recovered from the
beneficiary.

• In view of the above position, proper documentation with legal

sanctity is very important. In case of failure to repay the loan, the
District Society should be in a position to initiate necessary legal action
for recovery of the loan.

• Selection Committee to verify the following certificates:-

1. Copy of Caste Certificate issued by Tahsildar. - MEE Seva Linkup

2. Copy of Ration Card
3. Aadhar Card
4. Pro-note and surety Bonds (Annexure -1).
5. Surety bonds: Surety should be signed by one Government Employee
(Annexure -Ill) having maximum 3 years of service for superannuation.

• It is compulsory to secure post dated cheques from the

beneficiaries at the time of documentation.

• A Pass Book should be issued to every beneficiary showing

particulars of the beneficiary, loan sanctioned, installments paid etc.
Proforma for Pass Book is given. The printed passbook will be supplied
to the Districts.

6. SELECTION PROCESS AT DISTRICT LEVEL:

• An interview shall be organized to short list the applicants after

making the verification of the documents and eligibility criteria.
Weight-age may be given to aptitude, experience and bank deferred
cases. No candidate should be selected without fulfilling the basic
eligibility conditions. Only educated unemployed SC youth should be
identified under this programme. Preference may be given for the
 File No.APSCFL-15022/3/2020-DEVELOP SEC-APSCCFCL

candidates who have studied up to 10th Class pass or fail and who have
technical qualifications required for the scheme.

• Un-employed candidates who are working as drivers on monthly

basis and possessing permanent driving license shall be given
preference for the schemes under transport sector.

• Un-employed candidates whose claims were deferred by banks

may be given weightage during the selection.

• General aptitude and abilities possessed by candidates must be

observed while selecting the candidates.

• After selection, the provisional selection list should be displayed

in the offices of Executive Directors, Collectorates, R.D.Os &
M.P.D.Os.

• The list of selected candidates should be sent to the Head Office

for release of subsidy and NSFDC Loan.

7. General Conditions for Grounding of the Schemes

· As soon as the selection list is published, an EDP programme

shall be organized at the District Level for the benefit of the
beneficiaries. The EDP shall cover, among other things.

• The importance of repayment of NSFDC loan installments and the

consequences of non-payment/irregular payment of installments.

• The Success stories of the Dalit entrepreneurs who have worked

hard and have repaid their loans.

• Basic accounting, profit & loss concepts and sound business

principles should be explained.

• The repayment schedule has to be explained to the beneficiaries

selected and the burden of penal interest in case of irregular payment.
They should also be explained about confiscation of assets in case of
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non-payment and provisions of the Cooperative Societies Act, 1964.

• Each of the beneficiaries shall be supplied with a copy of the

repayment schedule for the scheme for which he is selected.

• They should be clearly informed about the documentation required

and the procedure for documentation.

• As regards transport sector, while registering, documentation

procedure should be followed for hypothecation of vehicle in favour of
the District Society., and the following legend has to be painted on the
vehicle.

"FINANCED BY SC CORPORATION WITH NSFDC LOAN"

8. RECOVERY:

Recovery of NSFDC Loan component along with interest is very

important as the loan + interest has to be repaid to the NSFDC. If loan
repayment is delayed, NSFDC charges penal interest. Hence it is essential that
a robust recovery mechanism is put in place before the NSFDC loans are
grounded.

Beneficiary-wise loan ledger should be maintained for the beneficiaries

under NSFDC scheme containing full details of the loan, interest including
due dates etc. The loan ledgers shall be printed and supplied to District
Societies.

1. Every beneficiary will be issued a Pass Book in the proforma

mentioned at Annexure and entries of loan sanction and recovery
particulars shall be posted in the Pass Book.
2. The term loan should be collected after a moratorium period of one month
from the date of grounding NSFDC term loan carries the interest rate of 6
percent per annum. Recoveries will be done under sections 71 (1) Andhra
Pradesh Co-operative Societies Act -1964.
3. A Separate sub-account should be maintained for these schemes. Loan
portion and interest shall be shown separately.
4. D.C.B statements as at Annexure must be prepared every month and
demand notices should be issued to the beneficiaries for proper recovery
of loans. If more than (3) installments have become overdue, the overdue
amount shall be recovered by obtaining a certificate under sections 71(1)
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of the Andhra Pradesh Co-operative Societies Act, 1964. Loan ledger and
D.C.B. statements, monthly progress report on grounding of schemes and
loan recovery register must be maintained and an extract of the same
must be mailed to the APSCCFC Ltd.,
5. Recoveries collected against the NSFDC Self-employment schemes
should be sent to Head Office on or before 10th of each succeeding month
to Head Office. A loan recovery Schedule shall be generated at the time
of sanction proceeding generation.
6. Mortgage deed shall be registered.

9. Documentation to be done by Executive Director, SC Corporation of t he

concerned district and JC (Aasara & Welfare) to head the selection
committee and for finalization of beneficiaries.

All the District Collectors/Chairmen, DSCSCS Ltd., in the State are

requested to take necessary action for grounding of the units on or before 20-
12-2021.

Yours faithfully,
Kati Harshavardhan Ias
VC& Managing Director

Copy to the Joint Collector (Aasara & Welfare), DSCSC Ltd., in the State for
taking further necessary action.
Copy to the Executive Director, DSCSCS Ltd., in the State for taking further
action.
Copy submitted to the Principal Secretary, Social Welfare Department, AP
Secretariat, Velagapudi for favour of information.