The Union Cabinet, led by Prime Minister Narendra Modi, on Thursday approved a Central Sector Scheme providing grant-in-aid to National Cooperative Development Corporation (NCDC) with an outlay of ₹2,000 crore.
According to the official press release, this financial support will be extended over four years, from FY26 to FY29, with an annual allocation of ₹500 crore.
This strategic injection of funds is designed to empower NCDC to leverage its financial position and raise an impressive ₹20,000 crore from the open market during the same four-year period. These substantial funds will then be channeled by NCDC to provide loans to cooperative societies across the country.
The primary objective of these loans is to facilitate the setting up of new projects, expansion of existing plants, and meeting the crucial working capital requirements of cooperatives.
This initiative is expected to bring substantial benefits to approximately 2.9 crore members across 13,288 cooperative societies. These societies span diverse sectors including dairy, livestock, fisheries, sugar, textile, food processing, storage and cold storage, as well as labour and women-led cooperatives.
