BJP TODAY

May 1--15, 2003 - Vol. 12, No. 09

National Scheduled Tribes Finance and Development Corporation launches website
Ministers Jual Oraon and Faggan Singh Kulasthe explain salient points

1. ORGANISATION

National Scheduled Castes and Scheduled Tribes Finance and Development Corporation (NSFDC) has been bifurcated and a new corporation, namely, National Scheduled Tribes Finance and Development Corporation set up in April, 2001 under Section 25 of the Companies Act. 1956 (A Company not for profit). NSTFDC is a fully Government of India owned Undertaking under the Ministry of Tribal Affairs and is managed by a Board of Directors with representation from the Central Government, State Level Channelising Agency, financial institutions and persons representing the Scheduled Tribes.

2. SHARE CAPITAL

The Authorised Share Capital of the Corporation is Rs. 500.00 Corers.

3. BROAD OBJECTIVES

NSTFDC is the Apex organisation for providing financial assistance to Scheme(s)/Project(s) for the economic development of Scheduled led Tribes. The broad objectives of NSTFDC are as under:

i . Identification of economic activities of importance to the Scheduled Tribes so as to generate employment and raise their level of income

ii. Upgradation of skills and processes used by the Scheduled Tribes through providing both institutional and on the job training;

iii. To make the existing State/U.T Scheduled Tribes Finance and Development Corporations nominated as the State Channelsing Agencies (SCAs) for availing assistance from NSTFDC and other developmental agencies engaged in the economic development of Scheduled Tribes more effective.

iv. To assist SCAs in project formulation, implementation of NSTFDC assisted Schemes and in imparting necessary training to their staff.

v. To provide financial support for meeting the working capital requirement of the Central
State government owned agencies, such as TRIFED, for undertaking procurement and marketing of minor forest produces and agricultural produces collected/grown by the Scheduled Tribes.

vi. To innovate, experiment and promote rather than replicate the work of the existing agencies.

4. FUNCTIONS

i To finance viable income generating Scheme(s)/ Project(s) through the SCAs for the economic development of eligible Scheduled Tribes.

ii. To provide grants through the SCAs for undertaking training programmes for the skill and entrepreneurial development of eligible Scheduled Tribes.

iii. To upgrade skills of officials of the SCAs through periodic training.

5. ELIGIBILITY CRITERIA

i. The beneficiary should belong to the Scheduled Tribes community.

ii. Annual family income, of the beneficiary should not exceed double the poverty line
(DPL) income limit (presently Rs. 39,500/? p.a. for the rural areas and Rs.5,41,500/? p.a. for the urban areas).

iii. Individual, Partnership Firms/Co-operative Societies / any other form of Legal Associations are eligible to avail financial assistance from NSTFDC. However, proposals submitted by the Partnership Firms, Co?operative Societies and any other forms of Legal Associations shall be Subject to the following :

a) All the members should belong to the Scheduled Tribes community.

b) Annual family Income of each member/applicant should not exceed double the poverty line income limit.

6. ALLOCATION OF FUNDS
CRITERIA

At the beginning of each financial year, funds are notionally allocated by the NSTFDC to the SCAs in proportion to the Scheduled Tribes population in the respective States and UTs. This is intimated to the SCAs. The SCAs may ensure the flow of funds such a manner so as to maintain proper balance among different districts/regions, sectors and achieve an equitable gender?wise balance among the beneficiaries.

b) UNIT COST

Within the overall allocation, funds are to be allocated keeping the following broad norms:

%age of
National Allocation

i) Scheme(s)/Project(s)/Per Unit/profit
centre Costing Upto Rs. 5.00 lakh : 90%

ii) Scheme(s)/Project(s)/per Unit/profit
centre costing above Rs. 5.00 lakh : 10%

c) SECTORAL ALLOCATION

SCAs are to ensure a balanced approach on sectoral allocation while forwarding Scheme(s)/ Project(s) to NSTFDC for consideration. The broad norms of sectoral allocation are as under:

Sector %age of
Notional Allocation

i) Agriculture &Allied Sector : 40%

ii) Service Sector Including Tran sport) : 50%

iii) Industrial Sector : 10%

7. NORMS OF FINANCIAL ASSISTANCE

A. TERM LOAN

i) UNIT COST

NSTFDC provides term loan for Scheme(s)/Project(s) costing upto Rs. 10.00 lakh Per Unit/Profit centre.

ii) QUANTUM OF ASSISTANCE
NSTFDC provides term loan upto 90% of the cost of the Scheme/Project, Subject to the condition that the SCAs contribute their share of assistance as per the scheme and provide the required subsidy. The SCAs may also tie LIP financial assistance from other Sources, if any.

iii) Entire Working Capital requirement for unit/profit centre costing upto Rs.1.00 lakh is treated as a part of the project cost.

iv) For Unit/Profit Centre costing above Rs. 1.00 lakh, Working Capital requirement upto 30% of the cost of Scheme/Project, Subject to a maximum of Rs. 3.00 lakhs is considered as part of the cost of project.

v) PROMOTER's CONTRIBUTION

vi) INTEREST RATES

vii) RE PAYMENT PERIOD

The loan is to be repaid in quarterly/half yearly Installments, as the case may be, within a maximum period of 10 years including suitable moratorium period. Repayment period for each Scheme/Project is specified in the Letter of Intent (Sanction).