New Delhi, Jul 31: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a Central Sector Scheme for providing Rs 2,000 crore as grant-in-aid to the National Cooperative Development Corporation (NCDC) over four years from 2025-26 to 2028-29. The funding will be provided in equal annual instalments of Rs 500 crore. The grant will enable NCDC to leverage Rs 20,000 crore from the open market during the same period, which will be used to offer loans to cooperative societies for setting up new projects, expanding existing facilities, and meeting working capital needs.
The scheme is expected to benefit approximately 2.9 crore members from over 13,000 cooperative societies operating in sectors such as dairy, fisheries, livestock, sugar, textiles, food processing, storage, cold storage, labour, and women-led cooperatives.
Under the scheme, NCDC will act as the implementing agency, overseeing fund disbursement, project monitoring, and loan recovery. Loans will be offered either directly to eligible cooperatives or through state governments, in line with NCDC’s direct funding norms.
The scheme is projected to generate employment across various skill levels and improve liquidity, infrastructure, and capacity in the cooperative sector. It aims to foster inclusive rural development by enhancing productivity, profitability, and economic participation, particularly among women and small farmers. India currently has over 8.25 lakh cooperative societies with more than 29 crore members, making them a crucial part of the rural economy and socio-economic development.
