New Delhi, Aug 26 (IANS) Several sick sugar and textile cooperative mills are being given a helping hand as the state-run National Cooperative Development Corporation (NCDC) disburses of Rs. 40 billion credit this year.
'The NCDC sanctioned a record assistance of Rs. 31.7 billion during 2005-06 and disbursed the highest ever assistance of Rs. 23 billion,' Minister of State for Agriculture Kantilal Bhuria told the media Saturday.
'Both disbursement and sanctions during 2005-06 were more than double of that in the previous year,' the minister said.
The year also marked the highest ever profit of Rs. 1.4 billion for NCDC, which has managed to bring down its non-performing assets to 0.68 percent from the level of 1.26 percent.
'Of the Rs. 40 billion credit planned to be given this year to cooperatives, so far Rs. 13.54 billion credit proposals have been sanctioned and Rs.6.08 billion disbursed,' said NCDC Managing Director P. Uma Shankar.
'Together with the state governments, we are developing a Rs. 2.5 billion rehabilitation package for seven sugar mills in Andhra Pradesh and a Rs. 600 million package for six sugar mills in Tamil Nadu,' he told IANS.
'The packages involve restructuring the existing debts, modernisation and expansion of the sick plants. Similar packages are being worked out for cooperative textile mills. One such plan is already under implementation in Rajasthan while another proposal has been sanctioned.'
Among other textile mills approved for revival package is one each in Pondicherry and West Bengal. In addition, NCDC is awaiting proposals for five mills from Tamil Nadu government.
These are but a few of the sugar and textile mills that need a helping hand to be put back in business, the minister said.
According to data collected by NCDC as many as 70 of the 180 cooperative textile units in the country are sick or shut, while as on March 31 this year, 125 out of the 200 cooperative sugar mills in the country were sick.
Cooperative mills account for 38 percent of the sugar production in the country.
India has a vibrant cooperative sector with around 550,000 units being operated by such bodies whether in the dairy, agro processing, leather, sugar or textile and apparels.
NCDC has been taking an active part over the last few years to step up technical and financial help to the cooperatives. This has encouraged several states like Maharashtra, Andhra Pradesh and Nagaland to send several proposals.
In fact in the case of Nagaland as many as 100 proposals have been received, many of these have already been sanctioned, said Shankar.
Taking only two percent of the funds disbursed to farmers, artisans and cooperative bodies from the government, NCDC has been raising the remaining funds from its internal resources or through market borrowings.