Cabinet Clears ₹2,000 Crore Grant to NCDC for Cooperative Expansion

Cabinet Approves Strategic Four-Year Funding Plan

The Union Cabinet, led by Prime Minister Narendra Modi, approved a ₹2,000 crore grant-in-aid for the National Cooperative Development Corporation (NCDC). The scheme will operate for four years, from FY 2025–26 to FY 2028–29.

Government Allocates ₹500 Crore Annually Under New Scheme

Under this Central Sector Scheme, the government will release ₹500 crore every financial year. The Ministry of Cooperation will implement the scheme and oversee the fund disbursal to NCDC.

NCDC to Leverage Grant for ₹20,000 Crore Market Borrowing

NCDC will use the ₹2,000 crore grant as equity support to raise up to ₹20,000 crore from the market. This will enhance NCDC’s lending capacity to provide affordable long-term and working capital loans to cooperatives.

Scheme Targets Key Sectors in Rural Economy

The scheme will support cooperative societies operating in sectors such as dairy, poultry, fishery, food processing, storage, textiles, sugar, cotton, handloom, and other rural industries. The goal is to boost productivity and economic activity in these sectors.

Over 13,000 Cooperatives and 2.9 Crore Members to Benefit

The government expects the scheme to benefit around 13,288 cooperative societies. These cooperatives have a total membership of nearly 2.9 crore individuals, of which approximately 94% are farmers.