Agriculture Minister Radha Mohan Singh on Wednesday launched a Rs 1000 crore start-up scheme to encourage youth to join cooperative business ventures in agriculture and allied sectors.
Apart from a subsidy for the entrepreneur, the scheme also makes available an interest subvention of 2% per annum.
The National Cooperative Development Corporation (NCDC) under the agriculture ministry has come up the Yuva Sahakar-Cooperative Enterprise Support and Innovation Scheme. The scheme will be linked to Rs 1000 crore ‘Cooperative Start-up and Innovation Fund (CSIF) created by the NCDC. It would have more incentives for cooperatives of North Eastern region, aspirational districts and cooperatives with women members, schedule castes, schedule tribes or people with disabilities.
“NCDC has created a dedicated fund with liberal features enabling youth to avail the scheme,” said Singh at the launch. The government has been encouraging start-ups for ease of doing business, he said. “The newly launched scheme would encourage cooperatives to venture into new and innovative areas.”
Singh added that the funding will be up to 80% of the project cost for these special categories as against 70% for others.
“The scheme envisages 2% less than the applicable rate of interest on term loans for the project cost of up to Rs 3 crore including 2 years moratorium on payment of principal. All types of cooperatives in operation for at least one year are eligible,” said the minister.