Grant in Aid to National Cooperative Development Corporation (NCDC) Scheme:
The Union Cabinet, chaired by the Prime Minister, recently approved the Central Sector Scheme “Grant in Aid to National Cooperative Development Corporation (NCDC)”
- Grant in Aid to National Cooperative Development Corporation (NCDC) Scheme is a Central Sector Scheme with an outlay of ₹2, 000 crore for a period of four years from 2025-26 to 2028-29 (₹500 crore each year from FY 2025-26).
- The grant of ₹2,000 crore will be sourced through budgetary support from the Government of India.
- The approved grant will enable NCDC to raise ₹20,000 crore from the open market over the next four years.
- These funds will be utilised by NCDC for granting loans to Cooperatives for setting up new projects/expansion of plants, and loans for meeting the working capital requirements.
- Approximately 9 crore members of 13,288 Cooperative societies of various sectors like Dairy, Livestock, Fisheries, Sugar, Textile, Food Processing, Storage and Cold Storage; Labour and Women led cooperatives. across the country are likely to get benefitted.
- NCDC will be the executing agency for this scheme for the purpose of disbursement, follow-up, monitoring of implementation of the project, and recovery of loans disbursed out of the fund.
- NCDC will provide loans to cooperatives either through state government or directly, as per NCDC guidelines. Cooperatives that meet the criteria of direct funding guidelines of NCDC would be considered for financial assistance directly against admissible security or a state government guarantee.
- NCDC will provide loans to cooperatives, long-term credit for setting up/ modernization/ technology upgradation/ expansion of project facilities for various sectors, and working capital to run their businesses efficiently and profitably.
