Annual report - Performance Management Division

CHAPTER 17NATIONAL MINORITIES DEVELOPMENT ANDFINANCE CORPORATION (NMDFC)17.1 The National Minorities Development & Finance Corporation (NMDFC) wasthincorporated on 30 September, 1994, with the objective to promote economic anddevelopmental activities for backward sections among minorities. To achieve its objective,NMDFC is providing concessional finance for self-employment activities to eligiblebeneficiaries belonging to minority communities having family income below double thepoverty line which at present is ` 55,000 p.a. and ` 40,000 p.a. in urban and rural areasrespectively.17.2 NMDFC has two channels to reach the ultimate beneficiaries (i) through the StateChannelising Agencies (SCAs) nominated by the respective State/UT Government and(ii) through Non Governmental Organizations (NGOs). Under SCA programme, projectscosting up to ` 5.00 lakhs to the individual beneficiaries are financed. Funds for this purposeare made available to the SCAs at interest rate of 3% for further loaning to the beneficiariesat 6%. The Corporation is also implementing schemes of Vocational Training & EducationalLoan through the SCAs for capacity building of the target groups for self as well as wageemployment.17.3 Under micro financing scheme, micro-credit up to ` 25,000 is being given to eachof the members of the Minority Self Help Groups (SHGs) through the NGOs. Funds for thispurpose are made available to the NGOs at 1 % for further loaning at an interest rate of5% per annum. In addition to loaning activity, NMDFC assists the targeted group in trainingfor skill upgradation and marketing assistance. Under NGOs programme, there is also aprovision of interest free loan (adjustable as grant) for promotion and stabilization of SHGs.17.4 NMDFC is implementing the Educational Loan Scheme through the StateChannelizing Agencies. Under this scheme, NMDFC provides ` 2,50,000 to the candidatesbelonging to minority communities at a concessional interest rate of 3% p.a. for pursuingprofessional and technical education.17.5 To implement its programmes, NMDFC has authorized share capital of ` 1500 croresout of which, the share of Govt. of India is ` 975.00 crores (65%) and the share of StateGovts. is ` 390.00 crores (26%) while the remaining ` 135.00 crores (9%) is to becontributed by institutions/individuals having interest in minorities. Govt. of India has so farcontributed ` 875.36 crores (89.78%) in the equity of NMDFC while ` 193.79 crores(49.69%) has been contributed by the various State Governments/UTs. An amount of` 55000 has been contributed by institutions/individuals having interest in minorities.17.6 Under SCA programme since inception till 31/12/2011, NMDFC has given Term Loanassistance to 3,65,111 beneficiaries spread over twenty five States and three UnionstTerritories with an amount of ` 1478.91 crore. In 2011-12 (up to 31 December, 2011) anamount of ` 194.23 crore has been disbursed to 14,445 beneficiaries.47