NATIONAL COOPERATIVE DEVELOPMENT

CORPORATION
Genesis

• The National Cooperative Development

Corporation (NCDC) was established by an Act
of Parliament in 1963 as a statutory
Corporation under the Ministry of Agriculture.
 NCDC - FUNCTIONS
Functions
• Planning, promoting and financing programmes for
production, processing, marketing, storage, export and
import of agricultural produce, food stuffs, certain
other notified commodities e.g. fertilisers, insecticides,
agricultural machinery, lac, soap, kerosene oil, textile,
rubber etc., supply of consumer goods and collection,
processing, marketing, storage and export of minor
forest produce through cooperatives, besides income
generating stream of activities such as poultry, dairy,
fishery, sericulture, handloom etc.
 NCDC FUNCTIONS – Contd.

NCDC Act has been further amended which will

broad base the area of operation of the
Corporation to assist different types of
cooperatives and to expand its financial base.
NCDC will now be able to finance projects in
the rural industrial cooperative sectors and for
certain notified services in rural areas like
water conservation, irrigation and micro
irrigation, agri-insurance, agro-credit, rural
sanitation, animal health, etc.
 NCDC Functions – contd.

Loans and grants are advanced to State

Governments for financing primary and
secondary level cooperative societies and
direct to the national level and other societies
having objects extending beyond one State.
Now, the Corporation can also go in for direct
funding of projects under its various schemes
of assistance on fulfillment of stipulated
conditions.
 Organisation & Management

• The Management vests in 51 member widely represented

General Council to give shape to its policies and programmes and
Board of Management with 12 members to cater to day-to-day
activities. Besides its Head Office, NCDC functions through 18
Regional/State Directorates. The Managing Director is the Chief
Executive. Various functional divisions look after the programmes. The
field offices play an important role in project identification/formulation
and oversee its implementation. NCDC is endowed with in-house
technical and managerial capabilities in the areas of Cooperation,
Organisation & Methods, Financial Management, Management
Information Systems, Sugar, Oilseeds, Textiles, Fruits & Vegetables,
Dairy, Poultry and Live stock, Fishery, Handlooms, Civil Engineering,
Refrigeration and Preservation to help cooperatives to
identify/formulate projects and successfully implement them.
 Finance and Financing

Sources of Funds

• Internal accruals, market borrowings and

allocations from Government of India
including International assistance.
 Finance and Financing-contd.
Purposes for which assistance is provided
• Margin money to raise working capital finance (100% loan)
• Strengthening of share capital base of societies (100% loan)
• Working capital to regional/state level marketing federations
(100% loan).
• Term loan for creation of infrastructural facilities like godowns,
cold storages, equipment financing, purchase of transport
vehicles, boats and other tangible assets
• Term and investment loan for establishment of new,
modernisation/ expansion/rehabilitation/diversification of agro-
processing industries.
• Subsidy for preparation of project reports/feasibility studies etc.
 Finance and Financing-contd.
Procedure of Sanction / Disbursal of Assistance

• NCDC assistance is not individual beneficiary oriented but is meant for

institutional development of Cooperatives. NCDC supplements the efforts
of State Government. The State Governments recommend the proposal
of individual society / project to NCDC in the prescribed schematic
format. The Society may also avail direct funding of projects under
various schemes of assistance on fulfillment of stipulated conditions. The
proposals are examined in the concerned functional division and if need
be on the spot field appraisal is undertaken. Thereafter, formal sanction
of funds is conveyed to the State Govt. / Society. The release of funds
depends on progress of implementation and is on reimbursement basis.
The period of repayment of loan ranges from 3 to 8 years. The rate of
interest varies from time to time
 Activities Funded by NCDC

a) Marketing
• Margin Money assistance to Marketing
Federations
• Strengthening share capital base of primary /
district marketing societies
• Marketing (Fruit & Vegetable)
• Working Capital Finance
 Activities Funded by NCDC
b) Processing
• Setting up of new Sugar factories (Investment Loan) / Modernisation and
Expansion/ Diversification of existing Sugar Factories (Investment loan +
term loan)
• Margin Money assistance to cooperative Spinning Mills / State
Cooperative Cotton Federations / Share Capital participation in New
Spinning Mills / Modernisation/ Expansion of Spinning Mills /
Modernisation of Existing and Establishment of Modern
Ginning & Pressing Units / Rehabilitation of Sick Spinning Mills / Cotton
Development Programmes
• Other Processing Units: Food Grains / Oilseeds / Plantation Crops /
Cotton Ginning and Pressing / Fruit & Vegetable / Maize Starch / Particle
Board, etc.
• Power Loom Cooperatives covering pre and post loom facilities
 Activities Funded by NCDC
c) Cooperative Storage
• Construction of godowns (Normal)
• Upgradation/renovation of existing godowns
• Construction of Cold Storages / Upgradation
/ Rehabilitation of Cold storages
 Activities Funded by NCDC
d) Distribution of essential articles through
cooperatives
• Distribution of Consumer articles in rural/
urban/ semi urban areas.
e) Industrial Cooperatives
• All types of Industrial Cooperatives, Cottage
& Village Industries, Handicrafts/rural crafts
etc.
 Activities Funded by NCDC
f) Service Cooperatives
• Agriculture Credit
• Agriculture Insurance
• Labour Cooperatives
• Water Conservation works/services
• Irrigation, micro irrigation in rural areas
• Animal care/health disease prevention
• Rural sanitation/ Drainage/ Sewage system
through Cooperatives
 Activities Funded by NCDC
g) Agricultural Services
• Cooperative Farmers’ Service Centres
• Agro Service Centres for Custom hiring
• Establishment of Agricultural inputs
manufacturing and allied units.
• Irrigation/ Water harvesting programmes.
h) District Plan Schemes
• Integrated Cooperative Development Projects in
selected districts (ICDP)
 Activities Funded by NCDC
i) Cooperatives for Weaker Sections
• Fisheries
• Dairy
• Poultry
• Tribal
• Handloom
• Coir & Sericulture
 Activities Funded by NCDC
j) Assistance for Computerisation
k) Promotional and Developmental
Programmes:
• Technical & Promotional Cells
• Consultancy for studies/project reports,
management studies, market survey &
evaluation of programmes, etc.
• Training and Education
l) Consultancy services
 Evaluation & Statistics
1. Constant impact evaluation of assisted projects is an area of attention.
Towards this end, an independent Evaluation and Statistics Division was
formed and become functional since October, 1982 with the following
objectives:

• To critically evaluate project implementation, identify problem areas,

assess effectiveness of participating institutions and measure project
impact on the participating cooperatives and their members, compare
costs and benefits realized with the appraisal estimates and projections.
• To collect & collate statistical data relating to NCDC activities / policies.
• A total of 125 evaluation studies on various schemes / programmes/
projects assisted by the Corporation including six studies in respect of
Internationally Aided Projects have been completed by the end of March,
2013.
 Evaluation & Statistics –contd.
The details of sector-wise number of studies
completed upto 2012-13 as tabulated below:
Sr.No. Sectors Studies undertaken
upto 2012-13
1. Storage 33
2. Cold Storage 5
3. Fruits & Vegetables 3
4. Oilseed Processing 3
5. Cotton Processing 4
6. Sugar 4
7. Foodgrains Processing 5
8. Poultry 1
9. Dairy 1
 Evaluation & Statistics- contd.
The details of sector-wise number of studies
completed upto 2012-13 as tabulated below:
Sr.No. Sectors Studies undertaken
upto 2012-13

10. Rural Consumer 3

11. Marketing & Inputs 4
12. Fisheries 9
13. ICDP 9
14. Training (TOPIC) 6
15. Project Completion Report 6
16. Tribal Cooperatives/LAMPS 2
17. Handloom Federations 1
18. Other Studies 26
Total 125
19. Statistical Publication 18
 Sectionwise Santion & Release During Financial Year 2015-2016
( Rs. In Crore)
SECTION SANCTION RELEASE
MARKETING 4168.73 4210.96
INPUTS 5.36 2.51
CONSUMER 2.12 3.75
SUGAR 1253.42 1209.29
FISHERIES 117.70 56.93
TRIBAL 0.00 0.62
COLD STORAGE 20.27 8.72
COLD STORAGE 20.27 8.72
F&V 0.15 0.25
DAIRY & LIVE STOCK 531.25 137.66
POULTRY 0.00 3.24
ICDP 511.73 273.24
STORAGE 50.31 70.71
TEXTILE 212.46 172.19
HANDLOOM 2.22 8.07
OILSEED 64.60 0.02
FOODGRAIN 9.67 4.67
PLANTATION CROPS 0.05 1.92
INDUSTRIAL COOP. 0.00 0.03
SERVICE COOP. 1479.78 920.47
M.I.S. 37.21 24.92
P&C 0.00 0.10
PR 1.37 1.37
TRAINING 5.74 5.74
CSR 0.47 0.42
TOTAL 8474.62 7117.80
 TOPIC

MISSION
• To develop professional competence of the
personnel of NCDC and the assisted
cooperatives to enable them to achieve
organizational objectives through suitable
training and developmental interventions,
research, consultancy and/or related
activities.
 TOPIC
FUNCTIONS / ACTIVITIES
Training
• Organizational Development
• Cooperative entrepreneurship Development
• Project Preparation, Appraisal, Implementation,
Monitoring and Evaluation.
• Developing Cooperative Consultancy Skills.
• Training of Trainers.
• Promotion and Development of Youth Cooperatives
• Productivity Improvements in Cooperatives
 TOPIC
Consultancy and Research
• Development of training systems,
programmes and materials.
• Preparation of project reports.
• Appraisal of projects.
• Evaluation of projects.
 TOPIC
Promotional and Developmental
The Promotional and Developmental Schemes being implemented are:
• Fellowships for Faculty Development Programme at IIM, Ahmedabad to
develop the professional skills and training capability of cooperative
training institutions including ACSTIs.
• Fellowships for Diploma Course in Cooperative Business Management
(DCBM) at VAMNICOM, Pune to develop and strengthen managerial skills of
the Managers / Executives of Cooperatives.
• Cash Awards to meritorious students of Higher Diploma course (HDC) in
Cooperation conducted by ICMs to motivate the students to perform better.
• Organization of study visits for the Directors of Board of Management,
Chairmen, Chief Executives and other key personnel of cooperative
marketing and processing societies to good working societies within the
country to help them learn success factors and develop conviction and
replicate the success
 TOPIC
CORE COMPETENCE
• Development of need-based tailor-made
training programmes and materials based on
Systems Approach to Training.
• Facilitation of programmes following the
Concept of Andragogy.
 New Schemes
• Financial assistance to Cooperatives for
Tourism, Hospitality, Transport, Electricity (New/Non-Conventional) and Rural Housing programmes
– Guidelines

• Cooperative Enterprise Development Fund (for New Societies)

• Financial assistance to Cooperatives for Hospital, Healthcare and Education – Guidelines

• Corporate Social Responsibility Programme of NCDC – Guidelines

• Scheme for Strengthening Monitoring and Evaluation Functions of the Corporation by utilising
Professional Expertise of Retired Officers

• Scheme for extending NCDC’s

Short Term Loan to Agricultural Credit Cooperatives towards Working Capital

• Scheme for Development/Strengthening of Agricultural Marketing Infrastructure, Grading and

Standardization (DMI)