On July 31, 2025, the Union Cabinet, chaired by Prime Minister (PM) Narendra Modi, has approved the Central Sector Scheme (CSS) “Grant in aid to National Cooperative Development Corporation (NCDC)” with an outlay of Rs. 2,000 crores for a period of four years from Financial Year 2025-26 (FY26) to FY29.
- An annual allocation of Rs. 500 crore will be disbursed from FY26 onwards, as part of the total grant.
Exam Hints:
- What? Union Cabinet Approved a Grant in aid to NCDC
- Budget: Rs. 2,000 crores (Rs.500 crores each year)
- Tenure: FY26 to FY29
- Implementing agency: National Cooperative Development Corporation (NCDC), Ministry of Cooperation.
- Target: Provide loans to Primary Agricultural Cooperative Credit Societies (PACS) and other cooperatives across sectors
About Grant in aid to NCDC:
Source of Fund: The fund for the scheme worth Rs.2,000 crore grant to NCDC will be supported through budgetary support by the Government of India (GoI).
- Based on the grant in aid, NCDC will be able to raise Rs.20,000 crores from the open market over a span of four years.
Implementing Agency: The NCDC, under the Ministry of Cooperation will be the implementing agency of the scheme for the purpose of disbursement, follow up, monitoring of implementation of project, and recovery of loan disbursed out of the fund.
- The loans will be provided to the cooperatives, through the state governments or directly, on meeting the criteria of direct funding guidelines of NCDC.
Loan Utilization Areas:NCDC will provide loans to cooperatives as long-term credit for setting up, modernization, technology upgradation, expansion of project facilities for various sectors and working capital to run their businesses efficiently and profitably.
Impact:
Cooperative Societies: Approximately 2.9 crore members of 13, 288 Primary Agricultural Credit societies (PACS) across various sectors, including Dairy, Livestock, Fisheries, Sugar, Textile, Food Processing, Storage and Cold Storage; Labour and Women led cooperatives across India will be benefited from this scheme.
Employment Generation: The funds provided to PACS will enhance the income-generating capacity of PACS through the income generating capital assets and liquidity for working capital.
Social impact: Cooperatives are an essential tool to bridge the socio-economic gap and increase participation of women in the workforce with their principles of democracy, equality and community concerns.
Cooperative Landscape in India: India hosts over 8.25 lakh cooperative societies, encompassing more than 29 crore members. Notably, around 94% of the country’s farmers are involved in cooperative activities in some form.
About National Cooperative Development Corporation (NCDC):
NCDC, established under the National Cooperative Development Corporation Act, 1962, started its operations in 1963. It is a statutory corporation, created to plan, promote, and finance cooperative development in India.
Ministry – Ministry of Cooperation
Managing Director(MD) – Pankaj Kumar Bansal
Headquarters -New Delhi, Delhi
