Union Cabinet Approves ‘Grant in Aid’ Scheme for NCDC

On 31st July 2025, the Union Cabinet approved a Central Sector Scheme, titled “Grant in Aid to National Cooperative Development Corporation (NCDC)”, with a total outlay of Rs. 2,000 crore for four years (2025–26 to 2028–29).

Key Points

Scheme Objective: Strengthen cooperative societies through affordable credit, infrastructure development, and working capital support.
Funding Plan: The grant will enable NCDC to raise Rs. 20,000 crore from the open market.
Implementation Period: 2025–26 to 2028–29, with Rs. 500 crore allocated per year.
Target Beneficiaries: Approx. 2.9 crore members across 13,288 cooperative societies in sectors like dairy, fisheries, sugar, food processing, women-led cooperatives, etc.
Nodal Agency: NCDC will handle loan disbursement, project monitoring, and fund recovery. Loans may be issued directly or routed through state governments.
Loan Structure:
- Long-term loans for infrastructure and technology upgradation
- Short-term loans for working capital and business continuity