National Minorities Development & Finance Corporation

(A Govt. of India Undertaking, Ministry of Minority Affairs)

Chapter 13 : Manner of execution of subsidy programmes [SECTION 4(1)(B)(xii)]

Chapter 13 : Manner of execution of subsidy programmes [SECTION 4(1)(B)(xii)]

CHAPTER – 13 (MANUAL – 12)
 
The manner of execution of subsidy programmes
 
I. INTRODUCTION
 
NATIONAL MINORITIES DEVELOPMENT AND FINANCE CORPORATION (NMDFC) was incorporated as a Government Company, on September 30, 1994 under Ministry of Social Justice  & Empowerment as a Company not for profit under Section 25 of the Companies Act, 1956 (Now Section 8 under Companies Act, 2013). It is a “C” Schedule Company operating in social sector under the administrative control of Ministry of Minority Affairs, Government of India.  NMDFC is working under the aegis of Ministry of Minority Affairs since 2006. 
 
The Corporation has been set up to promote economic and developmental activities for the benefit of "Backward Sections" amongst the minorities, preference being given to the occupational group and women. The Muslims, Christians, Sikhs, Buddhists, Parsis and Jains have been notified as minorities by the Central Government under the National Minorities Commission Act, 1992.
 
 
III. MANDATE OF NMDFC
  • The mandate of the Corporation is to provide concessional credit for self-employment activities to the backward sections amongst the minorities.
     
  • The benefits under the scheme are available for persons having annual family income of upto Rs.98,000/- in rural areas and Rs.1.20 lakhs in urban areas.
     
  • At present, the families having annual income up to Rs. 98,000 in Rural areas and Rs. 1,20,000 in urban areas are eligible under the NMDFC schemes. As a special initiative of NMDFC, a new annual family income eligibility limit of up to Rs. 8.00 lacs has been enhanced with effect from November, 2020 by adopting the “Creamy Layer” criterion currently followed amongst the OBC community by Government of India. 
 
IV. STATE CHANNELISING AGENCIES (SCAs)
 
The State Channelising Agencies (SCAs) are the main channel for implementing the schemes of NMDFC. The individual beneficiaries are assisted through the SCAs under the Term Loan, Educational Loan, and Micro Finance Schemes & Mahila Samridhi Yojana of NMDFC. The SCAs are nominated by the respective State Governments / UT Administrations. Funds to SCAs are released against Sovereign Guarantee issued by respective State Govts. / UT Administration. 
 
At present, NMDFC has 45 SCAs in 28 States & 8 UT Administrations. Presently, 38 SCAs are operational while 8 SCAs are in-operational mainly due to reasons like not signing of General Loan Agreement & furnishing of Government Guarantee by the respective State Government/UT Administrations. The SCAs are in-operational in the States/UTs of Arunachal Pradesh, Meghalaya, Sikkim, A&N islands, Daman & Diu, Lakshadweep & D&N Haveli. Government of Telangana is yet to nominate an agency for implementation of NMDFC schemes in the State.
 
V. SELF EMPLOYEMENT LENDING SCHEME