Cabinet Approves Rs 2,000 Cr Grant to NCDC to Boost Cooperative Sector

The Union Cabinet, led by Prime Minister Narendra Modi, has approved a ₹2,000 crore grant-in-aid to the National Cooperative Development Corporation (NCDC) over the next four years. The move is aimed at enhancing the lending capacity of the NCDC to support cooperative societies across various sectors.

Announcing the decision, Union Minister for Information and Broadcasting Ashwini Vaishnaw said the financial support will be disbursed under a central sector scheme titled 'Grant-in-Aid to NCDC' during the period 2025-26 to 2028-29, with ₹500 crore allocated each year.

“This capital support will enable NCDC to mobilise around ₹20,000 crore from the open market for further lending to cooperatives,” the minister said, adding that the corporation currently maintains an impressive loan recovery rate of 99.8% and has zero non-performing assets (NPAs).

According to an official statement, the grant is expected to benefit approximately 2.9 crore members associated with 13,288 cooperative societies engaged in sectors like dairy, fisheries, livestock, sugar, textiles, food processing, warehousing, and cold storage.

The funds will be used to support cooperatives in establishing new projects, expanding existing facilities, and meeting working capital requirements.
India has a vast cooperative ecosystem, with over 8.25 lakh registered cooperatives and more than 29 crore members. Around 94% of Indian farmers are connected to this network in some form.

The NCDC will act as the implementing agency for the scheme. It will be responsible for loan disbursal, project monitoring, and recovering loans extended under this fund.

The government noted that the financial aid would help cooperatives build income-generating infrastructure and improve liquidity, thereby strengthening rural and agricultural economies.

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