NANDINI SAHAKAR SCHEME (Syllabus GS Paper 2 – Gov. Policies)

Context: Recently, the Minister of Cooperation informed the Rajya Sabha about the Nandini Sahakar Scheme.

Nandini Sahakar Scheme

• About: It is a women focused framework of financial assistance, project formulation, hand-holding and capacity development.
• Purpose: Aimed at assisting women cooperatives in undertaking business model-based activities under the National Cooperative Development Corporation (NCDC).
• Framework: Provides financial assistance, project formulation, hand-holding, and capacity development specifically for women-focused initiatives.
• Funding: No minimum or maximum limit on financial assistance for projects by women cooperatives.
• Interest Subvention:

o 2% subvention on term loan interest for new and innovative activities.

o 1% subvention on term loan interest for all other activities, reducing borrowing costs for women cooperatives.

• Eligibility:
• Cooperative Society: Must be operational for at least three months to apply for credit linkage for infrastructure term loans.
• Women Cooperatives: Registered under any State/Central Act or have at least 50% women as primary members.

Significance:

• Socio-Economic Improvement: Enhances the socio-economic status of women through targeted support.
• Entrepreneurial Support: Fosters entrepreneurial dynamism in women through cooperative ventures.
• Comprehensive Assistance: Integrates business plan formulation, capacity development, credit, subsidy, and interest subvention from other schemes.