DoC plans co-op subsidy guidelines

Sat, Jan 12, 2013 12:00 AM on Others, Others,

KATHMANDU, JAN 12 -

The Department of Cooperatives ( DoC ) has prepared working guidelines on subsidies to be provided to cooperatives run by low-income people and underprivileged communities.

The department plans to provide a total of Rs 22.8 million to 760 such cooperatives across the country. It is giving away the money as seed capital to support cooperatives established by people of the backward community.

“Each of the 760 cooperatives will be provided with Rs 30,000 as seed money,” Under Secretary at the DoC Bishnu Ghimire said. According to him, the subsidy is part of the government’s programme to alleviate poverty through cooperatives. The government has looked at the sector under the three-pillar policy through the budget announcement last year and has adopted a policy of improving the living conditions of people under the poverty line through the cooperatives.

 The programme has targeted the poor from underprivileged communities like Haliya, Kamaiya, Dom and Musahar. It has also targeted promotiung cooperatives operated by low-income people like rickshaw pullers and single women.

“The programme focuses mainly on cooperatives run by the marginalised people,” said Ghimire. He added that they would also consider operating cooperatives that have incorporated such people as their members.

The working guidelines suggest forming a five-member committee at the district level to identify people below the poverty line and monitor cooperatives that will avail of the facility. According to Ghimire, the committee will include chairpersons of District Development Committees concerned  and a representative from the Woman Development Centre. The department plans to adopt the cluster sampling method to identify the poor which is done on the basis of the economic status of the people.

Ghimire said the poor will be defined on the basis of their accessibility to basic necessities like food, health care and education. People deprived of surface transportation facility and market accessibility will also be considered for the cluster.

According to the department, they will submit the draft of the working guidelines to the Ministry of Cooperatives and Poverty Alleviation soon.

Source: The Kathmandu Post