Cabinet Approves ₹2,000 Crore Grant to NCDC, Aiming to Boost Cooperatives Across Sectors
Based on a grant in aid of Rs. 2000 crore, NCDC will be able to raise Rs. 20,000 crore from the open market over a span of four years. These funds will be utilized by NCDC for granting loans to Cooperatives for setting up new projects/expansion of plants, and loans for meeting the working capital requirements.
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The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a new Central Sector Scheme titled “Grant-in-aid to National Cooperative Development Corporation (NCDC)” with a financial outlay of ₹2,000 crore over four years (2025-26 to 2028-29). The scheme aims to strengthen cooperative societies across various sectors by providing them access to affordable credit and working capital.
Under the scheme, NCDC will receive ₹500 crore annually from the central government. This grant will enable the corporation to leverage ₹20,000 crore from the open market over the next four years. The raised funds will be disbursed as loans to cooperatives for setting up new projects, expanding existing operations, modernising infrastructure, and meeting working capital requirements.
The scheme is expected to benefit approximately 2.9 crore members from 13,288 cooperative societies spanning sectors such as dairy, livestock, fisheries, sugar, textile, food processing, storage, cold storage, and women- and labour-led cooperatives.
NCDC will be the executing agency for the scheme, responsible for disbursement, monitoring, and recovery of loans. Funding will be provided either directly to eligible cooperatives or through state governments, as per NCDC’s funding guidelines.
This move will not only help cooperatives improve productivity, diversify activities, and enhance profitability, but also generate substantial employment across rural India.
The scheme emphasizes long-term credit for infrastructure development, modernization, and technology upgrades—contributing to the creation of income-generating assets and improving the economic conditions of member farmers.
The Cabinet’s approval marks a significant step in the government’s push to revitalize the cooperative sector as a pillar of rural economic growth and empowerment.
