Nandini Sahakar supports women cooperatives with financial aid.

NANDINI SAHAKAR YOJANA

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Picture Courtesy: https://kalinagarmahavidyalaya.com/nandini-sahakar-yojana/

Context: The Union Minister of Cooperation provided information about the Nandini Sahakar Scheme in the Rajya Sabha.

About Nandini Sahakar Scheme

The Nandini Sahakar Scheme by the National Cooperative Development Corporation (NCDC) provides financial assistance, project formulation, capacity development, and support to women's cooperatives to engage in business activities.
Launched in line with the principles of Atmanirbhar Bharat, the scheme aims to enhance the socio-economic status of women by fostering entrepreneurial initiatives through women's cooperatives.
It combines various aspects such as business plan development, capacity building, credit, subsidy, and interest subvention from other schemes.
By helping women cooperatives, the scheme:
Boosts Women’s Entrepreneurship: Encourages women to start and run businesses.
Improves Socio-Economic Status: Helps women achieve financial independence and improve their social standing.
Converges Various Supports: Brings together different types of support, like credit and subsidies, to help women succeed in business.

National Cooperative Development Corporation (NCDC)

●It was established under an Act of the Indian Parliament in 1963 to promote programs for agricultural produce, foodstuffs, industrial goods, and more on cooperative principles.

●The functions of the NCDC include planning, financing, and promoting various projects related to the production, processing, marketing, and export of agricultural produce and other commodities through cooperatives.

●Amendments to the NCDC Act have expanded its scope to include funding for rural industrial cooperative sectors and services like water conservation and agri-insurance.

●The Corporation provides loans and grants to state governments and cooperatives for various projects.

Key Features

Financial Assistance:
- - No Cap on Amount: There is no fixed limit on the financial help provided. This means women cooperatives can receive as much support as needed for their projects.
  - Credit Linkage: NCDC offers credit facilities for both infrastructure loans and working capital. This support can be combined with subsidies or interest reductions from other government schemes.
Eligibility Criteria:
- - Women Cooperatives: Must be registered under any State or Central Cooperative Act or have at least 50% women members.
  - Operational Duration: The cooperative should be operational for at least three months to qualify for the scheme.
Target Areas:
- - Business Activities: The scheme covers a wide range of activities including agro-processing, value addition, logistics, dairy, poultry, fisheries, textiles, renewable energy, education, and more. Urban housing is not included.
Funding Details:
- - Project Cost Limits: There are no upper limits on project costs for well-established cooperatives. New cooperatives have different limits based on their operational duration.
  - Loan Period: Loans are granted for 5-8 years, including a 1-2 year moratorium on principal repayment.
Interest Rates and Subventions:
- - Interest Subvention: NCDC offers interest rate reductions. For new and innovative projects, a 2% reduction is provided; for other activities, a 1% reduction applies.
Security and Subsidies:
- - Security Requirements: Various forms of security are accepted, such as asset mortgages, government guarantees, and fixed deposit receipts.
  - Subsidy Integration: The scheme allows integration with other government subsidies, reducing the loan amount if subsidies are applied.

Current Status

●Project-Based Funding: NCDC gives money based on individual project proposals. This means that cooperatives need to submit a project plan to receive funds.

●No Proposals from Bihar: As of March 31, 2024, no women cooperatives in Bihar have applied for support under this scheme. This suggests a need for more outreach and awareness in that region.

●Financial Disbursement: By the end of March 2024, NCDC had given out ₹6,426.36 crore for projects run by women cooperatives across India. This shows the scheme’s broad impact and support for women-led initiatives.

Policy to Promote Women's Empowerment

The Indian Constitution guarantees gender equality and empowers the government to take special actions to support women.
The Government of India has implemented various policies and schemes to enhance women's social, educational, economic, and political status.

Key Schemes and Initiatives

Social and Educational Support	●Beti Bachao Beti Padhao (BBBP): Aims to improve the sex ratio and promote the education of girls. ●Pradhan Mantri Awas Yojana (Urban & Rural): Provides affordable housing for women, ensuring they have a safe place to live. ●National Social Assistance Programme (NSAP): Offers financial assistance to elderly women, widows, and disabled individuals. ●Pradhan Mantri Vyay Vandana Yojana (PMVVY): A pension scheme for senior citizens, including women. ●Scheme for Adolescent Girls (SAG): Focuses on the health and education of adolescent girls.
Education and Skill Development	●National Education Policy (NEP), 2020: Prioritizes gender equity in education, ensuring quality education for all students, especially those from disadvantaged backgrounds. ●Samagra Shiksha: Ensures schools are girl-friendly with adequate facilities. ●Skill India Mission: Provides training through Women Industrial Training Institutes, National Vocational Training Institutes, and Regional Vocational Training Institutes. It includes flexible training schedules and a safe environment for women. ●Pradhan Mantri Kaushal Vikas Kendras: Focus on enhancing skills with a particular emphasis on women, offering flexible training options.
Economic Empowerment	●Pradhan Mantri Mudra Yojana and Stand Up India: Provide financial support to women entrepreneurs to start their own businesses. ●Prime Minister’s Employment Generation Programme (PMEGP): Assists women in setting up enterprises.
Health and Safety	●Pradhan Mantri Ujjwala Yojana (PMUY): Provides clean cooking fuel to women, reducing health risks from traditional cooking methods. ●Swacch Vidyalaya Mission: Ensures that all schools have functional toilets for girls.
Labour and Employment	●Labour Codes: Recent reforms include the Code on Wages, 2019; the Industrial Relations Code, 2020; the Occupational Safety, Health and Working Conditions Code, 2020; and the Code on Social Security, 2020, all of which aim to create a safer and more inclusive work environment for women. ●Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Guarantees that at least one-third of jobs created under the scheme are reserved for women.
Support for Women in Non-Conventional Sectors	●Women are now allowed to join non-traditional roles such as fighter pilots in the Indian Air Force, commandos, and positions in central police forces.
Safety and Security	●Legislation: Includes The Criminal Law (Amendment) Acts of 2013 and 2018, The Sexual Harassment of Women at Workplace Act, 2013, and The Protection of Women from Domestic Violence Act, 2006. ●Schemes: Include One Stop Centres (OSCs), Women Helplines, Mahila Police Volunteers (MPV), and the Emergency Response Support System (ERSS), among others. These initiatives aim to improve safety and provide support for women in distress.
Mission Shakti	●This integrated program addresses women’s issues comprehensively and aims to make women equal partners in nation-building through various levels of governance and a participative approach.

Conclusion

The Government of India has launched a broad range of policies and schemes to support and empower women in all aspects of life. From educational support to economic opportunities, and from safety measures to vocational training, these initiatives work together to promote gender equality and improve the overall status of women in India.

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Source:

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PRACTICE QUESTION

Q. Evaluate how the Nandini Sahakar Scheme’s financial assistance framework aligns with the Atmanirbhar Bharat initiative and its potential impact on women's socio-economic empowerment.