Amit Shah Sets Rs 4 Lakh Crore NCDC Disbursement Target for FY31, Calls for 25-Year Roadmap

Union Home Minister and Minister of Cooperation Amit Shah has set an ambitious target of Rs 4 lakh crore in annual financial disbursements by the National Cooperative Development Corporation (NCDC) for 2030-31 and called for a comprehensive 25-year roadmap to strengthen the corporation's institutional and financial capabilities. He also emphasised the need to expand financing for dairy, fisheries, cooperative banking and other sectors.

Addressing the 93rd meeting of NCDC's General Council in New Delhi, chaired by him, Shah said the corporation must undertake comprehensive reforms in its institutional structure, resource mobilisation, professional functioning and partnership models to meet the changing requirements of the cooperative sector.

He suggested constituting a group of experienced cooperative sector representatives and professional experts to examine NCDC's existing structure, alternative avenues for capital mobilisation, financial autonomy, organisational reforms and future business opportunities. He also called for a special meeting to discuss the recommendations and prepare a long-term strategy.

Shah said NCDC should reduce excessive dependence on government assistance and government banks by developing new financial and organisational models. He also proposed exploring consortium and co-financing arrangements with NABARD, State Cooperative Banks and commercial banks to mobilise resources for the growing needs of cooperative institutions.

The targets outlined by Shah include annual disbursements of Rs 1.70 lakh crore in 2026-27, Rs 2.10 lakh crore in 2027-28 and Rs 2.50 lakh crore in 2028-29, followed by Rs 3.50 lakh crore in 2029-30 and Rs 4 lakh crore in 2030-31.

According to the financial performance presented at the meeting, NCDC has disbursed cumulative financial assistance of Rs 4,14,586 crore to cooperative institutions since the establishment of the Ministry of Cooperation up to October 25, 2026. During 2025-26, it sanctioned projects worth Rs 1,55,408 crore and disbursed Rs 1,27,596 crore.

The corporation recorded a net profit of Rs 1,475 crore during the year, with a loan recovery rate of 99.84 per cent and zero net non-performing assets (NPAs). Its annual disbursements increased nearly fivefold from Rs 24,733 crore in 2020–21 to Rs 1,27,596 crore in 2025-26. The 3,339 projects and units sanctioned during the year are expected to benefit 14,881 cooperative societies.

Shah stressed that NCDC's role should extend beyond financing large cooperative enterprises to improving the livelihoods of small farmers, livestock rearers, fishermen and other rural communities. Citing assistance sanctioned for approximately 100 deep-sea fishing trawlers, he said such initiatives could significantly improve the monthly incomes of fishing families and create better opportunities for their children.

He also called for developing common processing and industrial facilities for cooperative sugar mills to manufacture ethanol, CNG, chemicals and other value-added products. Such arrangements would enable smaller mills to access modern facilities without making large individual investments.

Giving priority to the North-Eastern region, Shah said the government aims to make it self-reliant in milk, eggs, fish and meat production by 2030. He directed NCDC's regional offices to prepare viable projects in these sectors in coordination with state governments.

The meeting also reviewed the National Cooperative Development Corporation (Amendment) Act, 2026, which has expanded the corporation's scope for financial assistance, equity participation and investment. The Centre has approved a grant of Rs 2,000 crore to help NCDC mobilise Rs 20,000 crore from the market over four years.

NCDC has also launched the Sahakar Navachar Yojana, providing grants of up to Rs 25 lakh to eligible cooperative institutions. An initial corpus of Rs 10 crore has been established, and grants totalling Rs 85 lakh have been sanctioned to five institutions.

Shah further emphasised the need to bring trained young professionals into new multi-state cooperative societies and strengthen professional management while retaining cooperative principles.