(Outlay:Rs. 750.00 lakh)

The scheme comprised of two components:-

1. A) To provide assistance to co-operative societies for taking up viable commercial operations. All categories of societies with a good track record and working are eligible for financial assistance under the scheme. The maximum eligible assistance shall not exceed 50% of the project cost. The balance amount required shall be raised through the institutional finance or own funds of the society. The assistance will be sanctioned in the following ratio – subsidy 10%, share 20%, loan 20%. View Rules
2. B) The Scheme is also intended for the rehabilitation of weak but potentially viable co-operatives. The working of the society and viability of the project will be the prime consideration for providing assistance. The following criteria would be followed for deciding eligibility of societies under the rehabilitation of weak co-operatives.

(1) Societies with cumulative loss not exceeding own fund of the society.

(2) Societies with minimum 10 years of effective working experience.

The maximum eligible assistance shall not exceed 65% of the project cost. The balance amount required shall be raised through institutional finance or own funds of the society. The assistance will be sanctioned in the following pattern-subsidy 20%, share 20%, loan 25%.

One time assistance for the revival of defunct/dormant/ Primary Co-operatives. The assistance will be in the form of Subsidy, Share Capital and Loan in the ratio1:1:2 based on the approved project report, and such societies will be monitored regularly (View Rules). Emphasis is given to proposals of societies in flood affected districts. An amount of Rs.750 lakh is provided in the budget 2019-20 for the above components under the scheme.