SALIENT FEATURES OF NCDC SCHEME TO ESTABLISH COLD STORAGE'S IN COOPERATIVE SECTOR


Scheme -- Creation of cold storage facilities for Potatoes/ Fruits & Vegetables.
 
-- Setting up Ice Plant of 10/15 TFC Capacity
 
Purpose -- To effect reduction in post harvest losses
 
-- To avoid gluts and distress sale by growers members thereby increase in income of growers.
  
-- To create employment in rural areas.
-- To maintain quality of produce stored.
 
-- To reduce transport bottleneck- the peak
  
-- Period of production.
 
Ideal capacity -- (i) For Potato cold storage - 4000 to 5000 tonnes
 
-- (iii) For multi-commodity cold storage - 2,500 tonnes
Total Cost -- Approximately Rs. 4,500 per tone.
 
Societies Eligible -- Cooperative marketing societies operating at mandi or district level.
 
Specifically organized cooperative for cold Storage's in Potato growing areas.
   
Funding Pattern -- 0%age of Block cost
  
a)   From NCDC to State Government

a)    

Tribal and difficult area; Loan 70%
Subsidy 20%

b)    

Other areas Loan 90%

c)    

Weaker Sections in under Loan 75%
developed States /U.Ts Subsidy 17.5%

d)    

Weaker Sections in least Loan 75%
developed States/U.Ts Subsidy 20%
 
b)  State Govt. to Cooperative Societies
a)     Tribal and difficult area : Loan Share 40%
Capital : 30%
Subsidy 20%
   
b)     Other areas Loan Share 40%
Capital : 50%
 
c)     Weaker Sections in under developed States /U.Ts. Loan Share 40%
Capital : 35%
Subsidy 17%
 
d)     Weaker Sections in least developed States /U.Ts. Loan Share 40%
Capital : 35%
Subsidy 20%
 
Period of Loan Loan to State Govt., is for a period of 8-10 years With a moratorium of three year. No moratorium In the payment of interest.
     
Prevailing Rate* of Interest ; Normal rate or interest Effecting rate of interest on timely payment of installments Renal rate of interest on delayed installment.
         

i) State/Uts. recognized as     Cooperatively Under/Least. developed**

15.25% 14.25% 17.75%
 

ii) Cold Storage's set up by    Weaker    Sections  .        

15.25% 14.25% 17.75%
 

iii) States/Uts other than           Cooperatively Under/ Least   developed.

16.50% 15.50% 19.00%
 
*     NCDC would charge such rate of interest as prevailing
       At the times of actual actual release of funds
* *    Cooperatively under developed States.
 
Bihar, Himachal Pradesh, Jam & Kashmir, Orrisa, Rajasthan, West Bengal and Union Territories of Andean & Nicobar Island and Lakshadweep.
Cooperatively least developed States
Arunachal Pradesh, Assam, Manipure, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
          NCDC has no subjection if the funding from the State Government to the Cooperative Society their terms of repayment of loan and rate of interest thereof is more liberal and attractive.
 
Procedure to avail NCDC Assistance
          Society interested to establish Cold Storage/Ice Plant may supply in the enclosed Application Form. After completing the application in all respects it may be submitted to the Deputy/Assistant Registrar of Coop Societies of the district under which society is registered. He shall then recommend the application to State Registrar of Cooperative Societies who would further recommend the proposal to the State Govt. NCDC shall consider application as have been recommended by the State Govt.
 
Documents to be annexed with Application
    
i) Copy of registered By-laws of the society.
ii) Project Report prepared by experienced consultant/Architects/Engineers having sufficient experience in execution of Refrigeration jobs and Civil Works.
iii) Project Report to contain :
a)   Area map showing location of cropped Cold Storage.
b)   Civil construction specifications and detailed estimates.
c)   Specification of Refrigeration plant and machinery and Insulation works.
d)   Proposed capacity utilization plan of the cold storage / Ice / Plant.
e)   Proposed trading / marketing plan for produce to be stored in Cold Storage.
f)    Project cost details.
g)   Financial forecast statement.
h)   Cash flow statement showing break-even point, DSCR,IRR, etc.
i)    List of Cold Storage's and their capacity in the 30 Kms. radius of the jurisdiction of the society.
j)    A copy of latest Accounts and last audited accounts.
iv) Rental ceilings, if any, and Prevailing rental rates in the State/ Union Territory.
Society intending to avail financial assistance from NCDC may have about 500 farmers/agriculturist having their independent land holding as members. Before submitting its application, the society may ensure that it has a paid up share capital from its members not less than 5% of the estimated cost of the cold storage. A letter from State Electricity Board indicating its willingness to provide electric load of requisite kw may also be submitted with the application.    

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