Context:
The Union Cabinet has approved a new Central Sector Scheme titled “Grant-in-Aid to NCDC”, with a total outlay of ₹2,000 crore for four years (FY 2025–26 to FY 2028–29).
Key Features
- Nature of Scheme: Central Sector Scheme
- Total Outlay: ₹2,000 crore (₹500 crore annually)
- Implementing Agency: National Cooperative Development Corporation (NCDC)
- Funding Purpose:
- Grant to be used by NCDC to mobilize ₹20,000 crore from open markets.
- Loans to be provided to cooperatives for:
- Setting up new projects
- Expansion, modernization, and tech upgradation
- Working capital support
Expected Benefits
- Financial Empowerment of Cooperatives: Enables cooperatives to run profitably with improved liquidity and infrastructure.
- Capacity Building: Supports modernization, diversification, and scaling-up of cooperative enterprises.
- Social Impact: Aims to reduce socio-economic disparities and enhance women’s participation in the workforce.
- Asset Creation: Facilitates income-generating capital asset creation across cooperative sectors.
About NCDC
- Established: 1963
- Type: Statutory Corporation
- Headquarters: New Delhi
- Administrative Ministry: Ministry of Cooperation
- Mandate: Planning and promoting production, processing, marketing, and storage of agricultural produce and related activities under cooperative principles.
