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Union Cabinet Clears ₹2,000 Crore 'Grant-in-Aid to NCDC' Scheme with 10× Market Leverage Potential.

National | Dated: 02 Aug 2025

On 31 July 2025, the Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the Central Sector Scheme “Grant-in-Aid to National Cooperative Development Corporation (NCDC)” with a ₹2,000 crore outlay. The funding will be disbursed over four financial years (2025–26 to 2028–29), with ₹500 crore allocated annually.

🎯 Key Highlights:

  • - This government-funded grant serves as equity support, enabling NCDC to raise up to ₹20,000 crore from the open market—a tenfold leverage ratio—to significantly expand cooperative financing capability across India.
  • - The scheme aims to benefit approximately 2.9 crore members of 13,288 cooperative societies, including those in dairy, livestock, fisheries, sugar, textiles, food processing, storage, cold storage, labour, and women-led ventures. This reflects massive rural outreach potential.
  • - Funds disbursed by NCDC will finance new project setups, plant expansion, technological modernization, and crucial working capital for operations. This enables cooperatives to generate income assets, improve liquidity, and enhance operational continuity.

💡 Other Important Facts:

  • (i) NCDC will oversee the implementation —disbursing loans either through state governments or directly to eligible cooperatives that satisfy its direct funding criteria. Responsibilities include follow-up, monitoring, and recovery to ensure program integrity.
  • (ii) Known for its discipline, NCDC currently maintains a 99.8% recovery rate and zero non-performing assets (NPA), underscoring its capacity to deploy funds effectively and sustainably.
  • (iii) Established in 1963, NCDC plays a central role in promoting cooperatives across India’s rural economy. This grant reinforces national goals of inclusive growth, women’s workforce participation, and infrastructure-led rural development, in line with the government's vision of cooperative sector empowerment.

📚 Test Your Knowledge:

What is the total financial outlay approved by the Union Cabinet under the Central Sector Scheme “Grant-in-Aid to NCDC”?

Correct Answer: ₹2,000 crore

🚀 Quick Recap:

About National Cooperative Development Corporation (NCDC)

  • Managing Director(MD) : Pankaj Kumar Bansal
  • Headquarters: New Delhi