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Cabinet approves “Grant in aid to National Cooperative Development Corporation” Scheme | Current Affairs | Vision IAS
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Cabinet approves “Grant in aid to National Cooperative Development Corporation” Scheme

Posted 01 Aug 2025

2 min read

It has an outlay of Rs 2000 crore over four years (FY 2025-26 to FY 2028-29), with Rs 500 crore annually sourced from Government of India's budgetary support.

About Grant in aid to NCDC Scheme

  • Type: Central Sector Scheme
  • Objective: To grant loans to cooperatives for setting up new projects, expanding existing plants, and meeting working capital requirements
  • Fund Mobilization: Grant will be utilized by NCDC to raise an additional Rs 20,000 crore from the open market over the four-year period
  • Executing agency for scheme: NCDC for the purpose of disbursement, monitoring of implementation of project, and recovery of loan.
  • Loans provided will encompass:
    • Long-term credit for setting up, modernization, technology upgradation, and expansion of project facilities across various sectors.
    • Working capital to enable cooperatives to run their businesses efficiently and profitably.

Implications/Benefits of Scheme: 

  • Bridge the socio-economic gap and increase women's participation in the workforce
  • Creation of income generating capital assets and provide cooperatives liquidity in the form of working capital.
  • Support capacity augmentation, modernization, and diversification, leading to increased profitability and productivity.

About National Cooperative Development Corporation (NCDC):

  • Genesis:  established in 1963 as a statutory corporation
  • Headquarter: New Delhi
  • Ministry: Ministry of Cooperation.
  • Objective: Planning and promoting programmes for production, processing, marketing, storage, export and import of agricultural produce, livestock, etc. on cooperative principles.
  • Tags :
  • National Cooperative Development Corporation
  • Grant in aid to NCDC Scheme
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