Co-operation, Food and Consumer Protection Department

Cooperation

Policy Note - 2006 - 2007

Demand No. 12

1. INTRODUCTION

Cooperatives play an important role in the socio-economic development of the people of our country. The cooperative movement in India, particularly in Tamil Nadu, has taken deep roots in various sectors and is making a significant contribution towards economic development and social progress of the people.

Tamil Nadu occupies an important place in the history of cooperatives since the first cooperative societies for agricultural loan and consumer stores were established in Tamil Nadu. The cooperative societies play a vital role not only in agricultural development and consumer service, but also in sectors such as housing, textiles, dairy and fisheries which contribute significantly to the economic development of the state.

The importance that this Government attaches to the cooperatives is evident from the fact that two out of the three sterling schemes of the government for which orders were issued by the Hon’ble Chief Minister in the presence of public on the very same day of assuming office on 13.05.2006 relate to the cooperation department. The order of the government waiving all cooperative farm loans and interest thereon outstanding as on 31.3.2006 amounting to Rs.6866 crores to provide debt relief to a large number of farmers who have suffered on account of successive natural calamities is an unprecedented step that no other government has done for the farmers. Similarly the scheme of distributing rice at Rs.2 per kg is implemented through 26,429 fair price shops run by the cooperatives. The government have entrusted the major responsibility of the successful implementation of these two schemes to the cooperatives and this reflects the faith that the government has on the role played by the cooperatives in the developmental process.

The cooperation department is mainly concerned with agricultural credit, market agricultural produce, distribute fertilizers and essential commodities and with the legal framework which governs the functioning of all cooperatives in the state of Tamil Nadu. The objective of the department is therefore to enable all the cooperatives that come within its fold to deliver services to the satisfaction of their members and public, to facilitate the functioning and the growth of all cooperatives.

The programme for the disbursement of loans by the cooperative societies for the year 2006-07 is given below.

(Rs. in Crores)

The activities of the cooperative societies in these schemes are furnished in detail in the following chapters.

2.CO-OPERATIVE CREDIT

Cooperative Credit Structure and its Performance

Cooperative credit institutions were evolved mainly to check the usurious practices of the moneylenders and to provide loans to various sections of the population. The short-term rural credit structure consists of three tiers with Tamil Nadu State Apex Cooperative Bank at the state level, district central cooperative banks at the district level and primary agricultural cooperative banks at the village level. The long-term credit structure consists of Tamil Nadu Cooperative State Agriculture and Rural Development Bank at the state level and primary cooperative agriculture and rural development banks at the Taluk / Block level. The cooperative urban banks provide banking services to the people in the towns and cities.

Short Term Credit Structure

The role of cooperatives is significant in providing short term and medium term loans to the farming sector.

The details of short term, medium term loans and non-farm sector loans issued during the X Five Year Plan period are as follows:-

(Rs. in crores)

During 2006-07 it is programmed to provide short-term loans to the tune of Rs.1235 crores.

The performance of the apex bank, the district central cooperative banks and primary agricultural cooperative banks are detailed in the following paragraphs.

Tamil Nadu State Apex Co-operative Bank

The Tamil Nadu State Apex Co-operative Bank, established in the year 1905, plays a major role in formulating the credit programmes as well as the credit policy for the cooperative institutions in Tamil Nadu. It provides financial assistance to the District Central Cooperative Banks for issue of both short term and medium term agricultural loans to the farmers. The bank also provides non-agricultural credit for the upliftment of the farmers and the rural population through the district central co-operative banks. The apex bank plays a major role in the successful running of the public distribution system in the state by providing refinance facilities to the cooperative wholesale stores through the district central cooperative banks.

The Tamil Nadu State Apex Cooperative Bank provides term finance to spinning mills / sugar mills and direct financial assistance to other apex co-operative institutions in the state. The bank, through its network of 43 branches situated in and around the city, caters to the banking needs of the public in Chennai.

The share capital of Tamil Nadu State Apex Cooperative Bank is Rs.53.48 crores which includes the Government share of Rs.0.26 crores. The bank’s reserves as on 31.3.2006 was Rs.356.14 crores and the deposits outstanding on that date was Rs.3126.00 crores.

"The Primary Co-operative Development Fund", constituted from out of contributions received from its affiliates is maintained by the apex bank to strengthen the infrastructural facilities of the primaries in the state. The primary agriculture cooperative societies have been provided assistance to the tune of Rs 21.81 crores from this fund for developing their infrastructure.

District Central Co-operative Banks

At present there are 23 district central co-operative banks functioning in the state. Their branches are mostly located in rural areas to serve their affiliates and the rural public. All the district central co-operative banks are financing the primary agricultural cooperative banks from their own resources and also by availing credit from the National Bank for Agriculture and Rural Development (NABARD) through the apex bank for agricultural purposes and for activities allied to agriculture. They also extend credit facilities to primary handloom weavers cooperative societies, cooperative sugar mills, cooperative spinning mills and other cooperative institutions at the district level by availing credit from the National Bank for Agriculture and Rural Development through the apex bank.

These banks also sanction loans for non-agricultural purposes. purchase of lorries and buses, bulldozers, earthmovers, construction purpose, establishment of clinics / service centers by doctors / engineers, and educational loans for pursuing professional courses etc. The Chennai district central cooperative bank caters to the need of the urban population by providing jewel loans, petty trade and salary loans apart from providing financial assistance to employees’ cooperative credit societies in its area of operation.

As on 31.03.2006, the district central cooperative banks had a total share capital of Rs.526.50 crores, reserves of Rs.1114.49 crores, deposits to the tune of Rs.6979.34 crores and the working capital of the order of Rs.11061.17 crores.

Primary Agricultural Cooperative Banks

The primary agricultural co-operative banks play a vital role in providing crop loans to the rural farming community, especially to the small and marginal farmers. The short-term loans issued for agricultural purposes are repayable in maximum of 15 months depending on the crop cultivated. Medium term loans are repayable within 3 to 5 years and they are provided to the members for taking up subsidiary occupations allied to agriculture such as dairying, sheep rearing, poultry farming etc. Crop loans upto Rs. 1.00 lakh are provided against the standing crops on personal surety. The farmers can obtain crop loans above Rs. 1.00 lakh by providing adequate security by way of mortgage of property or pledge of jewels for the loans. Further the primary agricultural cooperative banks which are in sound financial position, sanction loans for other purposes such as purchase of tractors, power tillers and other agricultural implements.

Kisan Credit Card Scheme

In order to meet the credit requirements of farmers in a timely and hassle free manner, the Kisan credit card scheme, introduced by the NABARD is under implementation in the state. The District Central Cooperative Banks and Primary Agricultural Cooperative Banks are implementing the Kisan Credit Card Scheme.

So far 14,61,831 kisan credit cards have been issued.

Interest Reduction on Crop Loan

It is the intention of the government to provide agricultural loans to farmers at low interest rates. It has been announced in the budget that the interest charged on crop loan issued by cooperative banks during the current kuruvai season will be reduced from 9 % to 7% and that the loss to the cooperative societies on account of this reduction in interest rate will be borne by the government itself.

Credit Supply to Weaker Sections

The cooperative credit policy has always been oriented to meet the credit needs of the weaker sections of the rural population like small and marginal farmers. Though the National Agricultural Bank for Agriculture and Rural Development has stipulated that not less than 30% of short term lending by the co-operatives should be provided to the small farmers, i.e. those owning or cultivating 5 acres or less of wet or dry lands, the short-term and medium term loans to weaker sections have always been maintained at a much higher level. It is the policy of this government to continue to provide higher quantum of loan to the weaker section.

Jewel Loans

The cooperative banks are providing jewel loans to meet the urgent needs of the public.

Professional Loans

As a part of diversification process, the district central cooperative banks have been providing professional loans to doctors and engineers upto Rs.100.00 lakhs repayable within a period of 15 years. The rate of interest on professional loans ranges from 12% to 14% depending on the quantum of loan amount.

Micro Credit to Women for Small Business

With a view to mitigate the hardships faced by the women doing petty trades and to free them from the clutches of the money lenders, a scheme for providing micro credit has been introduced. The micro credit needs of women doing small business are met by the district central cooperative banks and urban cooperative banks. This is a significant step towards empowering women.

Under this scheme, women doing small business like selling flowers, vegetables, fruits, running petty shops etc., can avail loans in the range of Rs.100/- to Rs.5,000/- according to their business requirements.

The micro-credit scheme for self-help groups has been extended to rural areas in coordination with Tamil Nadu Corporation for Women Development by getting refinance from National Bank for Agriculture and Rural Development. Government have permitted to admit the self help groups as members in the district central cooperative banks and primary agricultural cooperative banks.

During the current year, the scheme will be extended to provide loan to men petty traders also.

Women Entrepreneur Loan Scheme

In order to encourage the womenfolk to establish small scale industries and to generate employment opportunities, loans are provided to women entrepreneurs. Under the scheme, the district central cooperative banks and urban cooperative banks are providing loan upto Rs.10/- lakhs repayable in 60 monthly installments at 12% interest to women entrepreneurs to start small industries and service centres.

Working Women Loan Scheme

The district central cooperative banks are also meeting the credit requirements of the working women to meet their urgent family expenses, through the working women loan scheme. Under the scheme, the district central cooperative banks and urban cooperative banks are granting loans upto Rs.1.00 lakh to working women drawing monthly income. The borrower has to open recurring deposit account for three years in the bank. The loan is repayable in 36 monthly installments. The rate of interest charged to this loan is 12% per annum.

Maternity Loan Scheme

Credit is required not only for undertaking business activities, but also to maintain good health of the women folk, more particularly, during the period of pregnancy. With a view to assist the women folk, to meet the expenses towards medicine, nutrition, transport, medical assistance/treatment, tests for mother and new born child, loans are provided. Under the scheme, the district central cooperative banks, urban cooperative banks and primary agricultural cooperative banks are issuing maternity loan to women up to Rs.2000/- at the rate of 11%.

Interest Free Share Capital Loan to Women members in Primary Agricultural Cooperative Banks

The rural women belonging to weaker sections find it difficult to contribute the share capital necessary for availing loans. As the borrowing power of the member is linked to share capital subscription, the women members of primary agricultural cooperative banks are provided with interest free share capital loan of Rs. 500 each. The above loan is repayable in five annual instalments at the rate of Rs. 100 commencing from the year succeeding the year in which the loan is sanctioned. This will enable women members to avail an additional loan up to Rs. 20,000/-.

Under this scheme, it is proposed to assist 2000 women members and a sum of Rs.10.00 lakhs will be provided for 2006-07.

Interest Free Share Capital Loan to Physically Handicapped Women

In order to promote economic rehabilitation of persons with disabilities, interest free share capital loan is provided to physically handicapped women for enhancing their borrowing capacity. Under the scheme, the physically handicapped women members of cooperative banks will be provided interest free share capital loan of Rs. 500 per person repayable over a period of 5 years. This will enable the physically handicapped women members to avail additional credit facility to the extent of Rs.20,000/-. During the current year, a sum of Rs.5.00 lakhs will be provided for share capital assistance to 1,000 physically handicapped women members.

Interest Free Share Capital Loan to SC/ST members

Under this scheme, the SC/ST members are provided with an interest free loan of Rs. 250 which they can contribute to the share capital of the cooperative societies and increase their borrowing power. The loan is recoverable in 5 equal instalments, commencing from the succeeding year in which the loan is sanctioned. This will enable the member to avail an additional loan of Rs.10,000.

National Agricultural Insurance Scheme

The National Agricultural Insurance Scheme for crop insurance introduced by the Government of India from Rabi 1999 is being implemented by the state government from Kharif 2000. Under the scheme insurance coverage and financial support is provided to the farmers in the event of failure of the notified crops due to natural calamities, pest and disease. The sum insured will be upto 100% value of threshold yield on normal coverage and upto 150% on additional coverage. All the loanee and non loanee farmers are covered under the scheme. Under the scheme the small and marginal farmers are given a subsidy equivalent to 10% of premium. The cost towards this subsidy is shared equally by the Central and State Governments. In case the relief paid to the farmers is much more than the premium collected, the excess amount is also equally shared by the State and the Central Governments. The State Level Coordination Committee decides on the crops and the areas where the scheme is to be implemented every year.

Long Term Credit Structure

The Tamil Nadu Cooperative State Agriculture and Rural Development Bank at the state level and primary cooperative agriculture and rural development banks at the taluk / block level constitute the two tiers of the long term credit structure. These banks provide loans to their members for agriculture and allied activities like minor irrigation, cultivation of horticulture and plantation crops, poultry keeping, dairying, sheep breeding, sericulture and purchase of tyre-carts, purchase of tractors, power tillers, laying of pipelines, construction of cattle sheds, farm house etc. on schematic basis. The primary cooperative agriculture and rural development banks also provide loans to small scale industries, power looms, rural housing, rural hospital etc. under non-farm sector schemes.

The funds required for loaning operations are mobilized by the Tamil Nadu Cooperative State Agriculture and Rural Development Bank through floatation of Special Development Debentures. The Government of India, State Government and NABARD subscribe to these debentures.

The then state government did not agree to the condition laid down by NABARD that in case the Tamil Nadu Cooperative State Agriculture and Rural Development Bank fails to honour its commitment to NABARD, the Reserve Bank of India on NABARD's request will automatically debit the Governments account with RBI and hence the refinance from NABARD could not be received. Therefore during the last two years, there has been no lending operation under long term loans. The Government have programmed to issue long term credit to an extent of Rs.200 crores during the current year by taking up the matter with NABARD.

Interest Free Share Capital Loan to Women members

The primary cooperative agriculture and rural development banks provide loans up to 20 times of the paid up share capital of the member. Under this scheme, the government shall provide Rs.1000 as interest-free loan to a woman member in the primary cooperative agriculture and rural development banks so that she can contribute her share capital and enhance her borrowing power. This will enable the women members to avail an additional credit facility of Rs.20,000. This amount is repayable in 5 annual instalments at Rs.200 each commencing from the succeeding year in which the loan is sanctioned.

A sum of Rs.5 lakhs is provided to benefit 500 women members during the current year.

Urban Cooperative Banks

There are 121 urban cooperative banks functioning in the urban and semi- urban areas to provide credit to the urban dwellers on easy terms of interest and repayment. All the urban cooperative banks are functioning with their own resources with a deposit base of Rs. 2391.26 crores as on 31.3.2006.

They are providing credit facilities for various purposes such as repairs of houses, petty trading, discharge of prior debts, education of children etc. The urban cooperative banks have reoriented their lending policies and are issuing loans for cottage and small scale industries besides jewel loans.

Interest Free Share Capital Loan to Scheduled Caste / Scheduled Tribe members

In order to enhance the borrowing power of SC/ST members of urban cooperative banks, interest free share capital loan assistance is provided by the government @ Rs.500/- to each member. The loan amount is repayable in 5 annual instalments at Rs.100 each commencing from the succeeding year in which the loan is sanctioned.

Interest Free Share Capital Loan to Women members

In order to enhance the borrowing power of women members, government sanctions interest free loan of Rs. 500/- per person, so that they can contribute to the share capital of the society. The loan amount is recoverable in 5 annual instalments at the rate of Rs. 100 each.

During the current year a sum of Rs. 5 lakhs has been provided to benefit 1000 members.

Waiver of Cooperative Agricultural Loans

A major initiative of the new government under the leadership of the Hon’ble Chief Minister is the waiver of all farm loans and interest thereon outstanding with the cooperatives as on 31.3.2006. The Government have also issued orders that no recovery proceedings should be taken in respect of the above loans and that loan waiver certificates should be given to those loanees whose loan outstanding as on 31.3.2006 have been waived.

As on 26-7-2006, loan discharge certificates have been issued in respect of 22,19,093 loan accounts amounting to Rs.5415.82 crores.

Consequent to the waiver, the government has taken over the entire debt liability of Rs.1668 crores owed by the cooperative banks to NABARD. Towards this end, a provision of Rs.435 crores has been made in the Revised Budget Estimates for the year 2006-07. Moreover in order to make good the loss caused to the cooperative banks due to the waiver and to ensure that fresh crop loans are given to the farmers, a provision of Rs.1000 crores has been made in the Revised Budget for the current year. Thus a total provision of Rs.1435 crores has been made under the scheme of waiver of farmers' cooperative loans for the current year. Necessary provision will also be made in respect of the balance amount along with interest thereon in the coming financial years to ensure that the farmers continue to get crop loans and that the interests of the depositors and the employees of these banks are protected.

The government have issued detailed guidelines to be followed by the cooperative banks for implementing the scheme and for proper maintenance of accounts of loans waived. The following types of loans given to farmers have been waived under the scheme.

• Short term crop loans
• Jewel loans issued for agricultural purposes
• Short term loans converted into medium term loans
• Short term loans rephased as medium term loans
• Blocked medium term conversion loans and blocked medium term rephasement loans
• Medium term loans given for agriculture and allied sectors
• Long term loans under farm sector

The government have also made it clear that only genuine farmers should be given the benefit of waiver. The banks implementing the scheme shall draw a list of the names of all the beneficiaries and exhibit the list in a prominent manner in the bank premises to ensure that the scheme is implemented in a transparent and impartial manner.

3.CO-OPERATIVE MARKETING, PROCESSING AND STORAGE

Cooperative Marketing

The basic aims of cooperative marketing are to arrange for the marketing of agricultural produce of the agricultural members at a reasonable and remunerative price, to distribute farm inputs to the agriculturists, to advance loans on the pledge of agricultural produce, to undertake processing of the agricultural commodities and to help in better recovery of loans through linking of credit with marketing.

These objectives are fulfilled through 114 primary co-operative marketing societies functioning in Tamil Nadu. Tamil Nadu Cooperative Marketing Federation is the apex institution of cooperative marketing societies in all the districts except Thanjavur, Tiruvarur and Nagapattinam. Thanjavur Cooperative Marketing Federation is functioning as apex society for the cooperative marketing societies in Thanjavur, Tiruvarur and Nagapattinam districts.

Tamil Nadu Cooperative Marketing Federation

Tamil Nadu Cooperative Marketing Federation was started in the year 1959. Tamil Nadu Cooperative Marketing Federation plays a vital role in the distribution of chemical fertilizers and pesticides. The Federation has 39 godowns with a total capacity of 28140 MTs and 9 rental godowns with a total capacity of 3460 MTs. The Tamil Nadu Cooperative Marketing Federation operates two cold storage plants in Chennai, one at Koyambedu Wholesale Market complex with a capacity of 2500 MTs. and another at Basin Bridge with 1250 MTs. capacity.

The Federation acts as an agent of National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) for undertaking support price operations in Tamil Nadu. The Federation is also operating a fertilizer plant at Pamani in Thiruvarur District.

Marketing of Agricultural Produce

The cooperative marketing societies assist the farmer members to secure reasonable prices for marketing their agricultural produces. They function as a bridge between producers and consumers.

Linking of Credit with Marketing

The cooperative marketing societies facilitate the marketing of the produce of borrowers of primary agricultural cooperative banks. The produce brought to the cooperative marketing society by the borrower members of the primary agricultural cooperative banks are sold in open auction to the maximum advantage of the farmers, at a price agreeable and advantageous to them by the cooperative marketing society. The dues to the primary agricultural cooperative banks are recovered from the sale proceeds and remitted to the banks.

Other Services

The cooperative marketing societies procure the agricultural produce from the farmers at the reasonable price and sell them through the cooperative wholesale stores to the consumers at affordable price.

Produce pledge loans are provided by the cooperative marketing societies to the farmer members to enable them to secure better price for their produce.

The primary agricultural cooperative banks distribute agricultural inputs like fertilizers, pesticides, seeds etc., to their members. A part of the crop loan given to the farmer member is earmarked for supply of such inputs.

The processing units run by the cooperative institutions provide processing facilities to the farmers at a low cost.

4.CONSUMER COOPERATIVES

Organisational set up

In Tamil Nadu, consumer cooperatives have a three tier structure with Tamil Nadu Consumer Cooperative Federation at state level, cooperative wholesale stores at the district level and primary cooperative stores at the base level.

Tamil Nadu Consumer Cooperative Federation

Tamil Nadu Consumer Cooperative Federation procures crackers, stationery etc., in bulk and distributes them to the district cooperative wholesale stores, primary cooperative stores and cooperative printing presses.

Cooperative Wholesale Stores

The 34 cooperative wholesale stores in the state function as lead societies and play a vital role in the functioning of the public distribution system. They take delivery of essential commodities from the Tamil Nadu Civil Supplies Corporation godowns and distribute them to the public through their own shops and through the shops run by the primary societies.

Primary Cooperative Stores

In the State, there are 3324 primaries, which include students’ cooperative stores, employees' cooperative stores, women cooperative stores and other primary cooperative stores. These primary cooperative stores are engaged in distribution of quality consumer goods at reasonable prices to the public. They also function as the outlets for distribution of essential commodities to the public under the public distribution system.

5.PUBLIC DISTRIBUTION SYSTEM

One of the primary duties of a welfare state is to ensure food security to its people. The government attaches utmost importance to ensure availability of quality rice to all, specifically to the poor and downtrodden at affordable price under the public distribution system. Keeping this in mind, this government immediately after assuming charge issued orders reducing the selling price of rice under public distribution system and Antyodaya Anna Yojana (AAY) to Rs.2/- per kg with effect from 3-6-2006.

In Tamil Nadu, the public distribution system is operated through the fair price shops run by Tamil Nadu Civil Supplies Corporation and cooperatives. The cooperatives play a prominent role in the distribution of essential commodities to around 1.68 crore cardholders through an extensive network of 21660 fair price shops. In addition to this, the cooperatives are also running 4769 part-time fair price shops and 36 mobile fair price shops to serve the families in remote and inaccessible areas. There are 591 sub-retail outlets run by women and self help groups. The cooperatives also run 266 kerosene bunks to distribute kerosene in the state.

Under AAY scheme, 35 Kgs of rice is distributed to every cardholder per month. In our state 15.41 lakhs people are getting the benefit under this scheme through the fair price shops run by the cooperatives.

Women Fair Price Shops

With the intention of empowering women and enhancing their economic status, the government have ordered for handing over certain fair price shops to women self help groups under the control of the Tamil Nadu Women Development Corporation. As on 30-6-2006, women's self help groups run 591 fair price shops in the state.

Supply of Electronic Weighing Machines to Fair Price Shops

In order to ensure that the consumers get the correct quantity of essential commodities and to prevent under-weighment to the public, all the fair price shops in Tamil Nadu will be provided with electronic weighing machines in a phased manner. During the current year, it is proposed to provide electronic weighing machines to 2000 fair price shops at a total cost of Rs.100 lakhs.

Assistance to Fair Price Shops for Procurement of Kerosene barrels

The fair price shops take delivery of kerosene in barrels from kerosene wholesale dealers for distribution to the card holders. These barrels need to be replaced periodically. A sum of Rs.35 lakhs is provided for purchase of kerosene barrels to be supplied to the fair price shops.

Computerisation of Kerosene Bunks

The kerosene bunks run by cooperative societies will be computerized in phased manner.

Sale of Non-controlled Commodities

Towards encouraging development of rural industries 10 varieties of khadi products are sold through the fair price shops run by cooperatives.

In order to secure a better price for the small tea growers, the tea processed by Indcoserve is sold through fair price shops.

In order to minimize the ill-effects caused due to iodine deficiency, particularly in rural areas, iodized salt is being sold through fair price shops.

6.COOPERATIVE EDUCATION, RESEARCH AND TRAINING

The Tamil Nadu Cooperative Union and the district cooperative unions are performing the functions of cooperative education, training, advertisements and propaganda in the state.

Cooperative Training

Training programmes are conducted for personnel working in the cooperative sector to upgrade their skills and abilities for achieving excellence in cooperative management and administration. There are 20 cooperative management training institutes in Tamil Nadu. These institutes conduct training in cooperative management, short term computer courses and jewel appraisal. In addition to these, job oriented and need based short term courses are also conducted by these institutes every year for the employees of cooperatives. Correspondence courses are also conducted for those cooperative employees who do not have the requisite cooperative training.

Higher Diploma in Cooperative Management

There are two Institutes for higher diploma in cooperative management, one at Chennai and another at Madurai.

Technical Education

In order to promote self-employment avenues among the unemployed youth, cooperative industrial training institutes are functioning at Bargur in Dharmapuri district, Pattukkottai in Thanjavur district and Tiruchuzhi in Virudhunagar district under the control of the Tamil Nadu Cooperative Union.

On an average 280 students get technical education in a year through these Industrial Training Institutes. A Cooperative Polytechnic College is functioning at Lalgudi in Tiruchirapalli District under the control of the Tamil Nadu Cooperative Union.

Cooperative Research

To encourage innovative ideas in the cooperative sector, the Tamil Nadu Cooperative Union has created a chair of Rs.5.00 lakh each in the Madras University, Madurai Kamarajar University, Bharathiar University and Annamalai University. Out of the interest earned on the investment of this deposit scholarships are awarded to the students doing research in the field of cooperation.

The Tamil Nadu Cooperative Union is maintaining two funds namely Cooperative Research and Development Fund and Cooperative Education Fund.

Every cooperative society which earns a profit contributes 3% of the net profit to the Cooperative Research and Development Fund and 2% of the net profit to the Cooperative Education Fund. This fund is utilized for the cooperative research, development, education, training and propaganda of the cooperative principles.

7.SPECIAL TYPES OF CO-OPERATIVES

Cooperative Printing Presses

The 26 cooperative printing presses functioning under the Cooperative Department are catering to the printing needs of all cooperatives, government, quasi government agencies, local bodies and the general public in Tamil Nadu . There are 12,688 members in the cooperative printing presses with a paid up share capital of Rs.2.05 crores.

Salt Workers Cooperative Production and Sale Societies

To uplift the living condition of the poor salt workers in the state, salt workers cooperative production and sale societies were formed. At present 11 salt workers cooperative production and sale societies are functioning.

Other Special Types of Societies

At present six barbers' cooperative societies and three washermen cooperative societies are functioning for the economic upliftment of these people from the weaker sections. There are also 34 cooperative canteens functioning in the state.

The system of communication has entered into a new era with a lot of changes. To cope with the changes, a new special type of Cooperative society called "Chennai Thuritha Tappal Pattuvada Cooperative Society" has been established in Chennai district.

Labour Contract Cooperative Societies

Labour contract cooperative societies have been formed to eliminate the middlemen between the management and the labour, so that the members are able to get their entitlement of benefits from the management.

At present there are 113 labour contract societies in Tamil Nadu with a total membership of 34,325 labourers.

Development of Hill Tribes

For the benefit of hill tribes, 19 Large Sized Multi Purpose (LAMP) Cooperative Societies are functioning in Tamil Nadu. These societies have 79370 tribal members and 7248 non-tribal members. These societies provide interest free loans to the tribal people for cultivation and other productive purposes. Government provides financial assistance in the form of subsidy every year under the Tribal Sub Plan to the LAMP cooperative societies under various schemes, such as, share capital subsidy, interest subsidy, transport subsidy and subsidy for drivers pay and maintenance of vehicles.

8.INTEGRATED COOPERATIVE DEVELOPMENT PROJECT

The Integrated Cooperative Development Project (ICDP) is being implemented in select districts with the main objective of improving the infrastructure available with the cooperatives. Under the scheme, financial assistance is provided through district central cooperative banks to agriculture and allied sectors like fisheries, poultry, dairy, handloom and rural industries etc. The scheme envisages the development of cooperatives at all levels and cooperation among cooperatives to facilitate the overall development.Government provides financial assistance for the implementation of ICDP after availing loan assistance from NCDC. The scheme is implemented over a period of five years. The ICDP scheme was implemented in the following 8 districts:-

At present ICDP is being implemented in the following six districts.

Plan outlay and amount released (Rs. in lakhs)