Delhi, 31 July (H.S.): The Union Cabinet, led by Prime Minister Narendra Modi, has approved a Central Sector Scheme titled “Grant in aid to National Cooperative Development Corporation (NCDC)” with an outlay of Rs. 2000 crore over four years, from FY 2025-26 to FY 2028-29, with yearly allocations of Rs. 500 crore. This grant will enable NCDC to raise Rs. 20,000 crore from the open market, facilitating loans to cooperatives for new projects, plant expansions, and working capital needs.
The financial support of Rs. 2000 crore will originate from the budgetary provisions of the Government of India. Approximately 2.9 crore members across 13,288 cooperative societies in sectors like Dairy, Livestock, Fisheries, Sugar, Textile, Food Processing, and Women-led cooperatives are expected to benefit.
NCDC will execute this scheme by disbursing funds, monitoring projects, and recovering loans. It will extend loans to cooperatives either through state governments or directly, adhering to its financial assistance guidelines. The funding aims at long-term credit for modernization and expansion of facilities and to enhance working capital for efficient business operations.
The envisioned impact includes the creation of income-generating capital assets, enhancing liquidity for cooperatives, and bridging socio-economic gaps while promoting women's participation in the workforce. Access to these loans will facilitate capacity increases, modernization, and diversification of cooperative activities, ultimately leading to improved profitability and productivity, thereby generating employment and uplifting the economic conditions of farmer members.
The cooperative sector significantly contributes to the Indian economy, aiding in rural socio-economic upliftment, infrastructure development, and job creation. Encompassing diverse activities from banking to agriculture and consumer goods, India's cooperative network consists of over 8.25 lakh entities with more than 29 crore members. Supporting weaker sectors like dairy, poultry, fisheries, and women-led cooperatives is critical in leveraging the cooperative system for sustainable growth in rural areas.
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Hindusthan Samachar / Jun Sarkar
