A STUDY ON THE IMPACT OF INTEGRATED COOPERATIVE DEVELOPMENT PROJECT ON THE PERFORMANCE OF COOPERATIVES IN NAGAPATTINAM DISTRICT

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1 A STUDY ON THE IMPACT OF INTEGRATED COOPERATIVE DEVELOPMENT PROJECT ON THE PERFORMANCE OF COOPERATIVES IN NAGAPATTINAM DISTRICT Dr. A. XAVIOR SELVAKUMAR Assistant Professor and Research Advisor, Department of Commerce, T.B.M.L College, Porayar , Tamilnadu Mr. K. LAWRENCE SEEKAN PAUL Ph.D, Research Scholar, Department of Commerce, T.B.M.L College, Porayar , Tamilnadu, Mobile: ABSTRACT The Scheme Integrated Cooperative Development Project (ICDP) was introduced in the Seventh Five Year Plan for promotion of various economic activities through cooperatives in the sphere of agriculture and allied sectors like Fishery, Poultry, Dairy, Handloom and Rural Industries etc. in selected Districts like Malkangiri, Koraput, Anugul & Dhenkanal. This scheme has an integrated area based approach taking into account the local needs and resources. The Scheme aims at development of cooperatives in agriculture and allied sectors, transforming cooperative as multi-purpose entities and promoting horizontal & vertical functional linkages so as to enable the cooperatives to cater to the overall needs of rural community. This article highlights a study on the impact of integrated cooperative development project in Nagapattinam district. KEYWORDS Integrated Cooperative Development Project (ICDP) National Cooperative Development Corporation (NCDC) Project Implementation Agency (PIA) Project Implementing Team (PIT) District Central Cooperative Bank (DCCB) Integrated Rural Development Programme (IRDP) Page 43

2 INTRODUCTION The Integrated Cooperative Development Project (ICDP) was introduced by National Cooperative Development Corporation (NCDC) during This project has been in operation in majority of the districts in India. However, very few attempts have been made to study the impact of this project. The present work analyzed the impact of ICDP and the sustainability of the outcome of the project in Theni district, Tamil Nadu. The project was introduced in Theni district during the year with the total outlay of Rs lakhs and the project was completed on 31 March This study found that ICDP s monetary and non-monetary interventions have created both tangible and intangible impact on the business profile of cooperative societies in this district. As compare to pre-project period with post-project period, the latter witnessed many cooperatives in the district which have become viable entities and could retain their image among the members and other stakeholders through enhanced service, general facelift, and inclusive approach. The books available at present in the field of Cooperation and Cooperatives have not detailed about this Pan India Project of National Cooperative Development Corporation, New Delhi. This book has been written keeping in mind the requirements of both the researchers and the officials with examples for office note/resolutions. This book will serve as a base for further research into the field of Cooperation, Rural Development, & Third Sector Enterprises at college/university/training institute level. About the Scheme: The Integrated Cooperative Development Project (ICDP) is a Central Sector Scheme implemented through the National Cooperative Development Corporation (NCDC). Subsidy is available for implementation of the Project under Restructured Central Sector Scheme for under-developed State. This Scheme has an integrated area based approach taking into account the local needs and resources. The Scheme aims at development of cooperatives in agriculture and allied sectors, transforming cooperative as multi-purpose entities and promoting horizontal & vertical functional linkages so as to enable the Cooperatives to cater to the overall needs of rural community. Activities under the Project: Under the Scheme, assistance to the Cooperatives is provided for i) development of infrastructural facilities, ii) strengthening working capital in shape of share capital and margin money for augmenting business and iii) manpower development and motivation of personnel in cooperatives. A Project Implementation Agency (PIA), generally the concerned District Central Cooperative Bank (DCCB), is identified for each district for implementing the project. The PIA is assisted by a Project Implementing Team (PIT) created especially for implementing the project, the duration of which is normally five years. Project activities are monitored by a Cell specially created for the purpose at the State level. Under ICDP, emphasis is given on infrastructure development by village level cooperatives, such as establishment of modern office & banking facilities, setting up of consumer shop, construction of scientific storage, godowns; facilities for food processing for value addition; marketing of agricultural and horticultural produce etc. Keeping in view, the importance of manpower development and training, the Scheme provides subsidy for training, managerial assistance for project implementation and monitoring and preparation of project reports and documentation etc. FUNDING PATTERN: The ICDP is funded by the NCDC through the State Government. As per the funding pattern of the Scheme, Loan and Subsidy are provided to the State Government for project implementation. The loan is meant for creation of infrastructure facilities, such as godowns, banking counter, transport vehicles, small processing units etc and strengthening the working capital base by providing share capital and margin money assistance for augmenting business. For cooperatively under developed states like Odisha, 20% subsidy is available for creation Page 44

3 of infrastructural facilities and also for share capital/ margin money assistance for C-2/GS/ICDP Modified business development programme under the Restructured Central Sector Scheme. Also, subsidy is provided for project implementation, project preparation, manpower development, monitoring and incentives etc. This is shared by the NCDC and State Government on 50 : 50 basis. The State Government fund the project by providing 50% of the project cost as loan, 20% as subsidy and balance 30% as share capital to the PIA for various activities at the level of the Cooperative Societies. The entire PIT cost which includes the administrative expenses of PIT personnel and other contingent expenditure in connection with monitoring and supervising implementation of the project at the Bank/ District/ State level, training and manpower development, etc. is provided as subsidy. The total subsidy component, however, should not exceed 30% of the total project cost. Thus, under the Scheme, assistance to cooperatives is provided for development of infrastructural facilities; margin money to enable them to raise requisite working capital and PIT cost which includes capacity building and training of the personnel and members of Cooperatives. RESPONSIBILITY OF KEY PERSONNEL OF PROJECT IMPLEMENTATION TEAM The district central cooperative bank, Kumbakonam has been designed as Project Implementation Agency (PIA) for implementation of ICDP Nagapattinam. It will be assisted by a Project Implementation Team (PIT) comprising the following - General Manager-1 General Manager shall hold the overall responsibility of implementation of project including achievement of physical and financial targets, maintenance of accounts and extension of assistance to societies, achievement of business targets of the societies, arrange training and sanction and disbursement of PIT cost and incentives and so on. General Manager of the project shall report to the managing director/ chief executives, DCCB concerned. Manager-1 He would be responsible for extension, developing business linkages between the primary societies and the district Level/ State Level Marketing Societies/ Federations, arranging marketing tie-ups, identifying the processing requirements, training the officials and non-officials of the societies. He would report of the General Manager. Development Officiers-4 Four Development Officers may be appointed. The Development Officers may be assigned the responsibility of conducting on-the-job training for the Managing Committee members and imparting the cooperating educations to the members of the primary cooperatives and also providing the guidance to the management of these societies. The Development Officers may be provided with two-wheelers for carrying out their duties. Other Office Staff The other staff would be one accountant cum office assistant, one Computer Operator/ Data Entry Operator/ One driver and one peon cum chowkidar. REVIEW OF LITERATURE Bhat, M. S. and V. J. Talashi (1987) have stated in their article titled, "Anti-Poverty Programmes in Jammu and Kashmir with Special Reference to Integrated Rural Development (IRDP) - A Case Study" that though the scope of their study on IRDP (Integrated Rural Development Programme) was limited, yet the results have supported more vigorously the inferences drawn from numerous similar studies, conducted across the country/state/region/block in India. In certain respects their study has revealed distinct and striking results of immense policy implications. Sodhi, J.S. (1987) in his results, of a evaluation study of IRDP (Integrated Rural Development Programme) in Sawai, Madhopur district, Rajasthan states that during the programme had helped a large Page 45

4 number of households, to move above the poverty line. According to the author the number of programmes started in India, under the sixth five year plan did not cover the whole country, though a large number of blocks in the country had more than one of the programmes operating simultaneously in the same area and for the same target groups. He says that the territorial overlap, combined with different 18 funding patterns of these programmes, not only created considerable difficulties in effective monitoring and accounting, but also blurred the objectives of the programme. He therefore proposed that programmes for rural poor that were operating through a multiplicity of agencies, should be ended and replaced by a simple integrated programme called IRDP (Integrated Rural Development Programme), operative throughout the country. However this study has been based on generalized conclusions without clear- cut statistical base. According to Maiti, S. (1988) the evaluations carried out by the Programme Evaluation Organization and by Prof. B. N. Tondon of the All India Institute Of Medical Sciences, gave encouraging results In Prof. Tondon' s study, two separate samples drawn from groups of the same socio-economic level showed that more children received immunization and nutrition services in areas that had been covered by ICDS for 3 years, than in areas depending on regular services. This could be because of efforts and persuasion on the part of the ICDS staff. According to Widge, M. K. and R. Nag (1989) various evaluation studies and periodic assessments of the ICDS scheme show that the nutrition status and the health standards of the children have improved in the project areas. However the authors in their study have not specified any specific evaluation study/studies and periodic assessments of the scheme. It would have been better if the authors 19 had sighted concrete examples of the evaluation studies and the periodic assessments rather than generalizing it without a concrete base. In maternal and child health programmes, pregnant and lactating women have been found to be poor users of supplementary feeding programmes. According to Tripathy, S. K. (1996) effective implementation of ICDS 45 Programme would help in lessening the burden of poor parents for child grooming and in building a healthy foundation for all pre-school children, in terms of better health care, nutrition and education. Kanango, S. D. (1996) says that collaboration between ICDS and the Voluntary Social Service Organization has shown positive results. TERMS AND CONDITIONS OF ICDP The loan and subsidy from the corporation be utilized only for the purpose f0r which it has been sanctioned. In the event of any violation of terms and conditions, the corporation may at its description, foreclose the sanction and in that the State government would have to refund the outstanding loan and subsidy together with interest thereon in lump sum. The State Government should implement the project through the Project Implementing Agency (PIA) with the diligence and efficiency and in conformity with appropriate administrative, managerial, financial and engineering practices and shall promptly provide the funds, facilities., services and other resources for the purpose as needed. Suitable policy changes would be made by State Government for effective and efficient implementation of the project including incentives/preferential treatment to cooperatives. Selection shall be strictly according to the prescribed qualifications and experience and so on. For any relaxation therein, NCDC s approval has to be obtained. The individual cases of incumbents selected should not be referred to NCDC for approval except where some relaxation has been solicited. NCDC officers should also be considered for appointed on deputation basis, in the monitoring Cell/PIT. Constitution of a District Level Co-ordination Committee under the Chairmanship of the Deputy Commissioner of the concerned District. Appointment of a Project Implementation Team at the District Level concerned headed by a General Manager/ Manager either by deputation from Government/Bank. Page 46

5 IMPACT OF THE SCHEMES: From the above 5(five) Projects only the 3(three) Integrated Cooperative development projects. Mentioned above is under implementation. The impact of the Scheme under implementation may be indicated District Wise as follows:- In respect of the other allied sectors as per the pattern of funding identification of Cooperative Societies have been taken up and sanctioned yet to be accorded by the PIA (Nagapattinam district) as follows: Fishery Sector: 4 (four) Cooperative Societies for pond Development Office-Cum-Shed, appliance and Net and Margin Money. Handloom Sector: 3 (three) Cooperative Societies for Work shed, 30 (thirty) Nos. of Loom and Margin Money. Rural Industry: 1 (one) Cooperative Society for Cane & Bamboo-Shed and Margin Money. Women Cooperatives: 1 (one) Cooperative Society for Equipment and Margin money for Tailoring Unit. Processing Unit: 2 Cooperative Societies for Processing Unit. Poultry Sector: 2 Cooperative Societies for Shed and Margin Money. Piggery Sector: 5 Cooperative Societies for Shed and Margin Money. Dairy Sector: 2 Cooperative Societies for Collection centre, Milk Van and Margin Money. PERFORMANCE OF ICDP IN NAGAPATTINAM DISTRICT Cooperative Societies covered under ICDP, sector wise Employees deputed for Training, Sector wise Employees deputed for Training, Block wise Presence of PACCS and Expenditure on Manpower Development in Nagapattinam district. Table 1: Cooperative Societies covered under ICDP Nagapattinam District S. No. Types of Societies No. of Societies 1 Primary Agricultural Cooperative Credit Societies Agricultural Primary Cooperative Marketing Societies 2 3 District Cooperative Wholesale Stores 1 4 Primary Cooperative Consumer Stores 1 5 College/School Cooperatives 1 6 Handloom Cooperatives 3 7 Salt Producers Cooperative Society 1 8 Brick Makers Industrial Cooperatives 1 9 Primary Agricultural Cooperative Rural and Development Bank 3 10 Kumbakonam Central Cooperative Bank 1 Total 135 It is clear from the Table 1 depicts that Cooperative Societies covered under ICDP Nagapattinam District the first place in (121)PACCS and followed by Handloom Cooperatives, Primary Agricultural Cooperative Rural and Development Bank, Agricultural Primary Cooperative Marketing Societies and Salt producers cooperatives, College/School Cooperatives, Brick Makers Industrial Cooperatives and Kumbakonam Central Cooperative Bank respectively. Page 47

6 Table 2: Sector wise Employees deputed for Training in Nagapattinam District S.No. Sector No. of Trainees No. of Training Programmes 1 PACCS APCMS Salt Producers 1 1 Cooperatives 4 DCCB 84 2 It is noted from the Table 2 depicts that Sector wise employees deputed for Training in Nagapattinam District the first place in (472)PACCS and followed by DCCB, APCMS and Salt producers cooperatives same levels respectively. Table 3: Expenditure on Manpower Development in Nagapattinam District Details Outlay for Five Utilized Percentage of Utilization Years(Rs, in Lakhs) PIT Cost Training Incentives PM Cell Cost Project Report Cost Total It is ascertained from the Table 3 depicts that expenditure on manpower development in Nagapattinam District the first place in 80 per cent in PM Cell Cost and followed by Project Report Cost, PIT Cost, Training and Incentives 75 per cent, 63 per cent, 62 per cent, 50 per cent respectively. Table 4: Block wise Presence of PACCS in Nagapattinam District S.No. Name of the Block Total PACCS 1 Nagapattinam 4 2 Thirumarugal 12 3 Kilvelur 8 4 Keelaiyur 5 5 Thalaignayar 9 6 Vedaranyam 20 7 Mayiladuthurai 12 8 Sembanarkoil 15 9 Kuthalam Kollidam Sirkali 12 Total Page 48

7 It is observed from the Table 4 shows that the block wise presence of PACCS in Nagapattinam District classified eleven block namely Vedaranyam the first place in (20) PACCS and followed by Sembanarkoil, Kuthalam, Kollidam, Sirkali Thirumarugal, Thalaignayar, Kilvelur, Keelaiyur and Nagapattinam block wise PACCS in Nagapattinam district respectively. SUGGESTIONS FOR IMPROVEMENTS The scheme of Integrated Cooperative Development Project (ICDP) was introduced in the seventh Five Year Plan for overall development of selected districts through cooperative efforts in the sphere of agriculture and allied sectors like fishery, poultry, handloom, rural industries etc. This is the first scheme of the Corporation which has an integrated area based approach for cooperative development in the rural back drop. The scheme aims at the development of horizontal and vertical functional linkages amongst cooperatives to promote overall development of cooperatives for catering to the needs of the rural community in an effective manner. The scheme takes into account the natural and human resource endowment of the area, development requirements as well as further potential for development in the area. Emphasis is laid on strengthening and turning the primary cooperatives into multipurpose entities. Under the scheme, on the recommendation of the State Governments, districts are selected for coverage in the Project. A detailed project report is then prepared by a team of multi-disciplinary group by the State Govt. or by an outside consultancy organization identified for the purpose. Assistance is provided for development of infrastructure facilities and also for margin money to the cooperatives to enable them to raise requisite working capital to undertake activities like distribution of inputs and consumer goods, storage, processing, marketing of agricultural produce,, fruits & vegetables, handloom fisheries, poultry, etc. on the basis of NCDC'S sanction after appraisal conducted thereof. Recognizing the importance of Man power Development & Training and motivation of personnel for improved business performance, the scheme provides for subsidy for preparation of project report, training, managerial assistance for project implementation & monitoring and incentives for enhancing business. A Project Implementation Agency (PLA) generally the concerned DCCB is identified for each district project under which a Project under Implementing the project. A Cell is also created at the State Level for monitoring the project activities. CONCLUSION The present article concluded that, one of the major supports for cooperative societies usually comes from government contributions towards share capital. Over the years, the government's contribution towards the share capital of primary cooperative societies has fallen significantly. A decline in government contribution compelled the primary societies to depend more on borrowings. However, in recent years, there is a marginal improvement because of the liberal assistance under Integrated Cooperative Development Project. REFERENCES 1. Ahmad, R Cooperatives: An integrated rural development. 1 sted. New Delhi: Mittal Publications. 2. Baidya, P Women: Education and development. Ed. K. L Bhowmik, New Delhi: Inter-India Publications. 3. Bandyopadhyay, D Rural development: Some aspects. Ed. J. N. Mongia, New Delhi: Allied Publishers Private Limited. 4. Baxamusa, R. M. and H. Subramanian Assistance for women's development from national agencies employment programme. Bombay: Popular Prakashan. 5. Bhat, M. S. and V. J. Talashi Anti poverty programmes in Jammu and Kashmir with special reference to Integrated Rural Development Programme (IRDP): A case study. Asian Journal of Economics and Social Studies 6(2): Bilgrami, S. A. R Womenfolk in rural development: An analysis of their participation and contribution. Ed. V. S. Mahajan. New Delhi: Deep and Deep Publications. 7. Das, R Socio - economic transformation of millions through rural development. Meerut: Twenty- First Century Publishers. Page 49