NCDC funds for service sector from this year .

The National Cooperative Development Corporation (NCDC), which is primarily engaged in the development and financing of cooperatives in the agriculture sector, is entering the service sector, a sunrise area in Kerala.

Tourism and hospitality, transport and electricity, rural housing, healthcare and educational sectors would now be added to the current areas of interest of agriculture and allied activities, including production, processing, value addition and marketing.

NCDC is the premier development financial institution exclusively for the co-operative sector under the Union Ministry of Agriculture and Cooperation. It would now seek to expand its portfolio of services under industrial and service co-operatives, said Mr Bijoy George, Regional Director, NCDC.

The corporation is also in the process of formulating a rehabilitation scheme for the co-operative sector with the support from the Central and State Governments. Kerala has emerged as a major beneficiary of NCDC funds, availing of a cumulative financial assistance of Rs 2,410.86 crore as on March 31. During 2009-10, the State stood in the country in NCDC credit take-off by absorbing 14 per cent of the total sanctions of Rs 5,000 crore and disbursement of Rs 3,738 crore.

During the period, the corporation sanctioned financial assistance of Rs 716 crore and disbursed Rs 519 crore to 384 co-operatives in the State, Mr George said.

Agriculture and allied sectors – including short-term agricultural credit, marketing of produce, distribution of fertilisers and inputs, storage, godowns, infrastructure, industrial and labour cooperatives, computerisation, fisheries, handloom and livestock rearing – were covered under NCDC finance in the State.

For the current year, the thrust areas of funding would continue to be agriculture credit, creation of infrastructure in the cooperative agriculture and allied sectors, implementation of the second phase of district-level integrated cooperative development projects, fisheries, dairy, handloom and coir.

Source : Business Line