JAMMU: The Administrative Council (AC), which met here under Lieutenant Governor Manoj Sinha, approved a proposal of the Cooperative Department that calls for 90% credit (up to a limit of Rs 9 lakh) offered by Cooperative Banks and financial assistance of 50% (up to a ceiling of Rs 4.50 lakh) of loan amount and 100% interest subvention to be given by the government in order to encourage Cooperatives to set up small food processing units costing up to Rs 10 lakh. Attending the meeting were Mandeep Kumar Bhandari, the LG’s principal secretary, Atal Dulloo, the chief secretary, and advisor to the lieutenant governor, Rajeev Rai Bhatnagar. Cooperative Banks would lend money to J&K-registered cooperative societies up to 90% of the project cost, or Rs 9 lakh, whichever is smaller, if they are willing to establish food processing units. The cooperative must establish and operationalize the food processing plant within a year, following which the government would reimburse the cooperative bank for 50% of the loan amount, up to a maximum of Rs 4.50 lakh. In the second, third, and fourth years of the loan, the beneficiary cooperative is required to pay the remaining principal amount in three equal installments to the relevant cooperative bank. When the beneficiary cooperative repays the loan to the bank on schedule, the government will pay the cooperative bank the full interest on the loan amount. Under this project, the Cooperative Department aims to establish 80 Food Processing Units in two years (2023–2024 & 2024–2025). The institutional framework for carrying out and overseeing this plan, including of committees for the development, assessment, and endorsement of DPRs and proposals, has also been authorised. Farmers will be able to work under this programme, and cooperative bank employees and others working in the cooperative sector would also receive guaranteed repayments.
