The Department of Cooperation in Lower Dibang Valley District is represented by the Assistant Registrar of Cooperative Societies (ARCS).The main functions of the ARCS is forwarding of organizational papers of the proposed Co-operative Societies to be registered, audit and inspection of the Co-operative Societies in the District ( to be carried out by SICS/JICS or SACS/JACS). Finance for infrastructural development and working capital finance is also disbursed by the Department of Co-operation through ARCS office.
a) ICDP Projects:
The ICDP projects are financed by NCDC, Govt. of India .The ICDP-II projects were closed in December 2020. The third generation of ICDP i.e. ICDP-III is proposed to be started very soon in Arunachal Pradesh.The ICDP sub-projects are mainly for the infrastructure development of Co-operative Societies like Godown,Shopping complexes, Sales counter, Office-cum-godown,Piggery Shed,etc. The components of Financial Assistance under ICDP finance are mainly in the form of Loan,Share Capital Participation (SCP) and Subsidy.
The Loan component normally bear interest as under:
Effective ( if installment received on or before due date) : 10.35%
Normal (if installment not received on or before due date) : 11.35%
Penal interest (on overdue installment to the period of default) : 13.85%
The Loan component is repayable within 8(eight) years.
The Share capital component is also redeemable within 8(eight) years without any interest. The Co-operative Societies do not have to refund the Subsidy portion of the financial assistance.
b ) Govt. Loan:
The State Govt. disburses loan to the Coop. Societies mainly for working capital of the Co-operative Societies at nominal 2.5% normal interest and 5.5% penal interest.
Benefits: The Co-operative Societies can build their infrastructure through ICDP finance and avail working capital for running its business through State Govt. Loans.