Benefits offered by the Government to Industrial Co-Operatives:
In the industrial co-operative societies of weaker sections of the societies, the Government has several schemes.
1. The Government sanctions share capital in the ratio 1:3, to enable the societies to borrow funds from the financial institutions.
2. Financial Assistance for Tools and Equipment.
The Government sanctions loans upto RS. 23,000/- to the members of such societies as 50% loan and 50% subsidy, for the purchase of tools and adopting improved methods of production.
3. Loans and subsidies for the construction of Godowns, workshops/ worksheds
The government gives upto Rs. 75,000/- (75% loan and 25% subsidy) to the societies for construction of worksheds or Godowns.
4. Interest Subsidy for Working capital:
The government gives an interest subsidy upto 3.5% to 4.5% on the amount borrowed by the co-operative. This scheme helps to reduce the burden of interest on the co-operative society which is to be paid to financial agencies.
45 Comments