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Cabinet approves Rs 2,000-cr grant to NCDC to boost cooperative sector growth

Friday, 01 Aug 2025
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The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Central Sector Scheme “Grant in aid to National Cooperative Development Corporation (NCDC)” with an outlay of Rs 2,000 crore for 2025-26 to 2028-29 (Rs 500 crore annually).

This grant will enable NCDC to raise Rs 20,000 crore from the open market over four years to provide loans to cooperatives for new projects, plant expansion, modernisation, technology upgrades, and working capital needs. Around 2.9 crore members of 13,288 cooperative societies across sectors like dairy, fisheries, sugar, textiles, food processing, cold storage, labour, and women-led cooperatives will benefit.

NCDC will execute, monitor, and recover loans either directly or through state governments. The scheme aims to enhance productivity, profitability, and employment by creating income-generating assets and strengthening cooperative liquidity. It will contribute significantly to multiple sectors, with over 8.25 lakh cooperatives and 29 crore members nationwide. The funding will particularly support segments such as dairy, poultry, fisheries, and women-led enterprises.

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