Srinagar: To encourage Cooperatives to set up small food processing units costing up to Rs 10 lakh, the Administrative Council (AC) which met under the chairmanship of Lieutenant Governor Manoj Sinha approved a proposal of Cooperative Department that provides for 90% credit (subject to a limit of Rs 9 lakh) offered by Cooperative Banks and financial assistance of 50% (subject to a ceiling of Rs 4.50 lakh) of loan amount and 100% interest subvention to be given by the government.
Rajeev Rai Bhatnagar, Advisor to the Lieutenant Governor; Atal Dulloo, Chief Secretary; Mandeep Kumar Bhandari, Principal Secretary to LG attended the meeting.
Cooperative Societies registered in J&K willing to set up Food Processing Units will be offered loan by Cooperative Banks to the extent of 90% of project cost or Rs 9 lakh whichever is less.
The food processing unit has to be set up and operationalized by the cooperative in one year after which 50% cost of the loan amount, subject to a ceiling of Rs 4.50 lakh, shall be released as a subsidy by the Government to the Cooperative Bank on behalf of the Cooperative.
The balance principal amount of the loan shall be paid by the beneficiary cooperative in the second, third and fourth year in three equal installments to the respective Cooperative Bank.