Grant in aid to National Cooperative Development Corporation (NCDC)

The Union Cabinet has approved the Central Sector Scheme “Grant in aid to National Cooperative Development Corporation (NCDC)” with an outlay of Rs.2000 crore for a period of four years from 2025-26 to 2028- 29 (Rs.500 crore each year from FY 2025-26).

Key Points:

• Objective:
  • To strengthen the cooperative sector through affordable credit support.
• Grant-in-Aid Details:
  • Total outlay: ₹2,000 crore
  • Time period: 4 years (FY 2025–26 to FY 2028–29)
  • Annual allocation: ₹500 crore per year
• Implementation Agency:
  • National Cooperative Development Corporation (NCDC), a statutory body under the Ministry of Cooperation.
• Leverage Mechanism:
  • The grant will enable NCDC to mobilise ₹20,000 crore from the market (debt instruments like bonds, debentures, etc.).
• Target Areas:
  • Funding for cooperatives in sectors like:
    • Dairy
    • Fisheries
    • Organic & Natural Farming
    • Processing & Storage
    • Textiles
    • Credit and Banking
    • Women and Labour Cooperatives
    • Skill Development & Start-ups
• Expected Impact:
  • Assistance to around 13,288 cooperative societies
  • Benefiting approximately 2.9 crore cooperative members
  • Promotion of inclusive and sustainable development, particularly in rural areas
• Alignment with Vision:
  • Supports the vision of “Sahakar se Samriddhi” (Prosperity through Cooperation)
  • Part of efforts to realign NCDC’s lending model from traditional funding to concessional credit
• Focus on Inclusivity:
  • Emphasis on women-led cooperatives, youth employment, and tribal areas

(Source: PIB)