Integrated Cooperative Development Project (ICDP)

Details of Integrated Cooperative Development Project (ICDP)

1. Description of the Scheme

One of the important Schemes of the NCDC is “Integrated Cooperative Development Project (ICDP) Scheme” which was introduced in the year 1985-86 and aims at:

  • Development of Primary Agricultural Credit Societies as multi-purpose self-reliant entities;
  • Development of allied sector cooperatives; and
  • Development of viable functional linkages among cooperatives.

  Under the scheme, an integrated area-based approach is adopted for development of cooperatives in a selected district. The Scheme promotes various economic activities through cooperatives in the sphere of agriculture, agro-based industries, cottage and household industries and agro-allied sector like fishery, dairy and livestock, handloom, horticulture, rural industries in a selected district. Assistance under notified services is provided for tourism, transport, education, rural housing, hospitals, health care, generation & distribution of power by new and non-conventional renewable sources of energy and cooperatives banking. A Macro Plan for whole of the selected district is prepared, keeping in view the local resources and needs. Assistance is in a package form and includes –infrastructural needs, funds for business development and HRD aspects.

  NCDC funds the ICD Projects through State Government. The project funding is under two heads (i) Loan and (ii) Subsidy. The loan is for creation of infrastructure facilities such as godowns, banking counter, transport vehicles, small processing units, etc. and strengthening of share capital / providing margin money for augmenting the business of the societies. Subsidy is provided for project implementation, manpower development and training, monitoring and incentives.

  Total subsidy component in a project is limited to 30% of the total project cost. Subsidy in respect of cost of project implementation, manpower development, monitoring and incentive is shared between the NCDC and the state Government on 50:50 basis. In case of special category states, entire subsidy for project implementation, manpower development, monitoring and incentives, is provided by the NCDC. Special category States are all North-Eastern States, Sikkim, Himachal Pradesh, Jammu & Kashmir and Uttrakhand. There is a provision for dovetailing of subsidies from other schemes of the Government /Ministries/Agencies for beneficiary cooperatives within the 30% subsidy ceiling.

  The project is implemented by a Project Implementation Agency (PIA) which generally is the District Central Cooperative Bank (DCCB). To assist the DCCB in project Implementation, a Project Implementation Team (PIT) is constituted at the District level to prepare Business Development Plan for the cooperatives, assess the society-wise infrastructural and other requirements and provide assistance accordingly. The systems and procedures are streamlined and functional linkages are established to make the operations cost effective.

  Gaps in managerial skills are identified and necessary training is provided to personnel in cooperatives. PIT personnel provide on-the-job training and guidance. The Scheme also has an incentive component for motivating the paid staff of primary cooperatives to perform better and improve the functioning of the cooperatives vis-a-vis recovery of funds provided.

  The project period is 4-5 years during which it is expected the project is completed in all respects. The projects are monitored regularly. In the States where the ICD projects are more than two in number, a Monitoring Cell is created at the State level to monitor all the projects in the State.

2. Details about dovetailing subsidies

  Grant/subsidy under various Schemes of Government of India / State Government is dovetailed with ICDP by the Project Implementing Agency/Team at the time of project implementation. NCDC’s loan assistance to that extent is reduced. Presently, the subsidies are being dovetailed from following Central Sector Schemes of Government of India:

  • Development of Cooperatives under Central Sector Integrated Scheme on Agriculture Cooperative (CSISAC).

For the preparation of the DPR for ICD projects component III pertaining to ICDP of the CSISAC guidelines of DAC &FW (GOI) be referred regarding the pattern & component of assistance.

3. NCDC’s assistance provided till 31.03.2019

 As on 31.03.2019 cumulatively 383 projects with project cost of Rs.6615.26 crore were sanctioned involving NCDC share of assistance of Rs.6279.05 crore comprising Rs.5139.09 crore as loan and Rs.1139.96 crore as subsidy. The cumulative assistance released by NCDC to State Governments for ICP projects by the end of 2018-19 stood at Rs.4170.28 crore comprising loan of Rs.3572.34 crore and subsidy of Rs.597.94 crore.

4. Eligibility, criteria and procedure involved

  Area based approach is adopted under the scheme for development of cooperatives. A district is selected on the recommendation of concerned State Government for which information is to be submitted as per prescribed format. Thereafter a detailed project report (DPR) is prepared either by a multi disciplinary team of State Government Officers or by an outside consultancy organization appointed by State Government with the approval of NCDC.DPR is prepared by the State government or Consultant as per Terms of Reference. The DPR is considered and approved first by District Level Coordination Committee (DLCC) and then by State Level Coordination Committee (SLCC). The DPR is then recommended by the State Government to NCDC for sanction. In the backdrop of the DPR, the project is then appraised by the team of NCDC officers in consultation with state Government officials.The Appraisal report is then considered by the Central Screening Committee, and based on its recommendation the sanction is conveyed to the State Government after obtaining approval of the Competent Authority in NCDC.

  The Project after sanction is implemented by Project Implementation Agency (PIA) and ‘Project Implementation Team’ (PIT).The PIT & PIA are involved in preparation of Business Development Plan, assessing society wise requirements and implementing and monitoring the project. All societies having potential for development are assisted under the project. During the course of implementation of project, the PIA / State Govt. submits periodic Progress Report to NCDC HO and concerned Regional Officer as per the prescribed format. State Govt / PIA are delegated the powers to divert the funds as per terms of Circular No. NCDC: 4-2/86-ICDP dated 20/1/2010.

After completion of project, Project Completion Report is prepared indicating information as per the prescribed format.