{"id":355544,"date":"2025-08-04T13:00:54","date_gmt":"2025-08-04T07:30:54","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=355544"},"modified":"2025-08-04T14:15:16","modified_gmt":"2025-08-04T08:45:16","slug":"grant-in-aid-ncdc-cooperative-sector-scheme","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/08\/04\/grant-in-aid-ncdc-cooperative-sector-scheme\/","title":{"rendered":"Centre Approves \u20b92,000 Crore NCDC Grant to Boost Rural Cooperatives"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\">On 31-7-2025, the Union Cabinet chaired by <span style=\"font-weight: bold;\">Prime Minister Narendra Modi<\/span> approved a Central Sector Scheme titled <span style=\"font-weight: bold;\">\u2018Grant-in-aid to National Cooperative Development Corporation (NCDC)\u2019<\/span>. This financial assistance scheme is aimed at invigorating India\u2019s cooperative ecosystem and strengthening rural enterprises through targeted support over the next four years. It is a Central Sector Scheme with a <span style=\"font-weight: bold;\">total outlay of \u20b92,000 crore<\/span>. The duration of the scheme is four years, from 2025\u201426 to 2028\u201429.<\/p>\n<h3>Background:<\/h3>\n<p style=\"margin-bottom: 3%;\">India\u2019s cooperative landscape is both expansive and essential, encompassing more than <span style=\"font-weight: bold;\">8.25 lakh societies<\/span> and over <span style=\"font-weight: bold;\">29 crore members<\/span>. Notably, <span style=\"font-weight: bold;\">94% of the country\u2019s farmers<\/span> are linked to these cooperatives in some form. These organizations span a wide range of activities\u2014including dairy, agriculture, fisheries, textiles, food processing, and women-led enterprises. Despite their reach and importance, many cooperatives face constraints in accessing timely and affordable financing, limiting their ability to scale, diversify, or modernize.<\/p>\n<p style=\"margin-bottom: 3%;\">To bridge this gap, the government has initiated this scheme as a strategic move to boost liquidity, enhance productive capacity, and foster inclusive development, particularly in rural areas.<\/p>\n<h3>Key points:<\/h3>\n<ol style=\"list-style-type: decimal;\">\n<li>The scheme primarily aims to strengthen India\u2019s cooperative sector by extending long-term financial support that enhances the operational capacity and resilience of grassroots institutions.<\/li>\n<li>Under this scheme, NCDC will raise <span style=\"font-weight: bold;\">up to \u20b920,000 crore<\/span> from the open market by leveraging the \u20b92,000 crore government grant, <span style=\"font-weight: bold;\">with \u20b9500 crore allocated each year from 2025\u201426 to 2028\u201429.<\/span><\/li>\n<li>These funds will be disbursed as loans to eligible cooperative societies across diverse sectors such as:\n<ul style=\"list-style-type: disc;\">\n<li>Dairy<\/li>\n<li>Fisheries<\/li>\n<li>Livestock<\/li>\n<li>Food processing<\/li>\n<li>Textiles<\/li>\n<li>Women-led cooperatives<\/li>\n<\/ul>\n<\/li>\n<li>Cooperatives can utilize this credit to launch new initiatives, modernize technology, expand infrastructure, and address working capital requirements, all of which contribute to improved efficiency and profitability.<\/li>\n<li><span style=\"font-weight: bold;\">NCDC<\/span> will serve as the implementing body for the scheme. Its responsibilities include:\n<ul style=\"list-style-type: disc;\">\n<li>Disbursement<\/li>\n<li>Project monitoring<\/li>\n<li>Follow-up<\/li>\n<li>Loan recovery from beneficiaries.<\/li>\n<\/ul>\n<\/li>\n<li>NCDC will extend loans to cooperatives either <span style=\"font-weight: bold;\">through state governments<\/span> or <span style=\"font-weight: bold;\">directly<\/span>, depending on eligibility. Those meeting NCDC\u2019s <span style=\"font-weight: bold;\">direct funding guidelines<\/span> will receive financial assistance against admissible securities or state government guarantees.<\/li>\n<li>The financial support includes <span style=\"font-weight: bold;\">long-term loans for setting up, modernizing, upgrading technology, and expanding project facilities<\/span>. Cooperatives will also be provided with <span style=\"font-weight: bold;\">working capital<\/span> to help them operate more efficiently and profitably.<\/li>\n<li>These funds will enable cooperatives to build <span style=\"font-weight: bold;\">income-generating capital assets<\/span> and access crucial liquidity to maintain smooth operations.<\/li>\n<li>Cooperative principles like <span style=\"font-weight: bold;\">democracy, equality, and community focus<\/span> make them powerful drivers of <span style=\"font-weight: bold;\">social equity<\/span>, including <span style=\"font-weight: bold;\">enhancing women\u2019s participation<\/span> in economic activities.<\/li>\n<li>The availability of loans will support <span style=\"font-weight: bold;\">capacity expansion<\/span>, <span style=\"font-weight: bold;\">modernization<\/span>, <span style=\"font-weight: bold;\">diversification<\/span>, and <span style=\"font-weight: bold;\">profitability enhancement<\/span>, ultimately boost productivity and improve the livelihoods of <span style=\"font-weight: bold;\">farmer members<\/span>.<\/li>\n<li>Infrastructure-related term loans will spark <span style=\"font-weight: bold;\">employment opportunities across various skill levels<\/span>, contributing to broader economic development.<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">Funds will be used for launching new projects, upgrading infrastructure, and meeting working capital needs, ultimately boosting employment, productivity, and rural livelihoods. This financial support is intended to stimulate employment, enhance productivity, and support income generation at the grassroots level.<\/p>\n<\/li>\n<\/ol>\n<p style=\"margin-bottom: 3%;\">Overall, the scheme is designed to fortify the operational capacity and financial resilience of cooperative institutions nationwide and to improve the financial health and operational capacity of grassroots cooperative institutions.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">Empowering India&#8217;s cooperative sector through NCDC Grant in Aid Scheme 2025&#8212;2029 to boost rural enterprises, enhance productivity, and support employment with &#8377;20,000 crore loan-based funding.<\/p>\n","protected":false},"author":67525,"featured_media":355561,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[86590,86595,86591,86585,35707,86592,33224,86586,86588,86584,86594,86587,86593,86599],"class_list":["post-355544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-agriculture-support","tag-central-government-initiative","tag-cooperative-sector","tag-cooperatives","tag-government-aid","tag-india-rural-sector","tag-narendra-modi","tag-national-cooperative-development-corporation","tag-ncdc-scheme","tag-pm","tag-policy-update","tag-rural-development","tag-rural-economy-boost","tag-2000-crore-grant"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - 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The budget is particularly focused upon inclusive development, especially covering the youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes. Major highlights of India Union Budget 2023, including the vision, change in tax slabs, sector specific focus,\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"Union Budget 2023","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-257.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":7284,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/09\/02\/union-government-released-rs-2000-crore-to-employees-pension-scheme-1995\/","url_meta":{"origin":355544,"position":3},"title":"Union Government released Rs. 2000 crore to Employees\u2019 Pension Scheme, 1995","author":"Sucheta","date":"September 2, 2015","format":false,"excerpt":"The Union Government has released a sum of rupees 2,000 crore to the Employees Pension Scheme (EPS), 1995 as its contribution for the year 2015-2016. The Union Minister of State for Labour & Employment (Independent Charge) Shri Bandaru Dattatreya said that this contribution is in addition to rupees 250 crore\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":237356,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/12\/finance-minister-announces-measures-of-rs-73000-crore-to-stimulate-consumer-spending-in-economy-to-fight-slow-down-due-to-covid-19\/","url_meta":{"origin":355544,"position":4},"title":"Finance Minister announces measures of Rs 73,000 crore to stimulate consumer spending in economy to fight slow down due to COVID-19","author":"Bhumika Indulia","date":"October 12, 2020","format":false,"excerpt":"The proposals presented today by the Finance Minister are designed to stimulate spending in a fiscally prudent manner as some of the proposals are for advancing or front-loading of expenditure with offsetting changes later while others are directly linked to increase in GDP. The present announcement by Sitharaman highlights the\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":260963,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/02\/01\/highlights-from-union-budget-2022-23\/","url_meta":{"origin":355544,"position":5},"title":"Highlights from Union Budget, 2022-23","author":"Bhumika Indulia","date":"February 1, 2022","format":false,"excerpt":"Key Highlights from Union Budget 2022-23 : \u2018Scheme for Financial Assistance to States for Capital Investment\u2019 is being enhanced from Rs. 10,000 crore in BE 2021-22 to Rs. 15,000 crore in RE 2021-22; Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India starting\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-252.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-252.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-252.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-252.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/MicrosoftTeams-image-252.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/355544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67525"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=355544"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/355544\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/355561"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=355544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=355544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=355544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}