Central Sector Grant-in-aid Scheme to NCDC Boosts Cooperative Sector with Rs 2000 Crore Funding

Central Sector Grant-in-aid scheme to National Cooperative Development Corporation (NCDC) is a big step towards helping India27s cooperative sector. This scheme, recently approved by the Union Cabinet, focuses on strengthening cooperatives across various sectors such as dairy, fisheries, textiles, sugar, and women-led groups. If you want to know how this grant-in-aid scheme will support cooperative societies and boost the rural economy, keep reading.

Key Features of the Rs 2000 Crore Grant-in-Aid Scheme to NCDC

This central sector scheme has a budget of Rs 2000 crore approved over four years, from 2025-26 to 2028-29. The government plans to help NCDC raise an additional Rs 20,000 crore from the open market during this period. The main goal is to provide loans to cooperative societies that need money to start new projects, expand existing ones, and cover working capital expenses.

Who Benefits from the Grant-in-Aid Scheme?

About 2.9 crore members of 13,288 cooperative societies will benefit from this funding. These cooperatives work in many sectors including dairy, livestock, fisheries, sugar, textiles, food processing, storage (including cold storage), and labour, as well as women-led cooperatives. Farmers and women27s groups involved in these activities will especially benefit, aiming to improve their livelihoods and financial independence.

How NCDC Implements and Distributes the Funds

The National Cooperative Development Corporation (NCDC) is the main agency managing this grant-in-aid scheme. It distributes funds directly to eligible cooperative societies or through state governments, following clear guidelines. Cooperatives eligible for direct funding can receive loans secured by admissible security or state government guarantees. Besides giving out funds, NCDC keeps track of project progress and makes sure loans are repaid.

Types of Financial Support Offered Under the Scheme

This scheme provides financial help through long-term credit and working capital loans:

• Long-term credit: For setting up new facilities, modernising infrastructure, upgrading technology, and expanding project capacity.
• Working capital loans: To keep cooperative businesses running smoothly and profitably.

Impact of the Scheme on Cooperative Sector Growth and Rural Economy

The Rs 2000 crore grant-in-aid will help create income-generating assets and give cooperatives the funds they need. This boost will modernise cooperative societies, encourage diversification, improve productivity and profits, and create jobs. As a result, the income and living standards of farmer members and rural communities will improve a lot.

Strengthening Women-Led Cooperatives Through Financial Aid

Focusing on women27s empowerment, the scheme supports women-led cooperatives to grow and take a bigger role in the workforce. By giving financial help, the scheme strengthens women27s participation in cooperative work and promotes gender equality in rural economic growth.

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India27s cooperative sector includes over 8.25 lakh societies with more than 29 crore members. With nearly 94% of farmers linked to cooperatives, this sector is very important for socio-economic growth, rural infrastructure development, and job creation. The Central Sector Grant-in-aid scheme to NCDC is set to strengthen this backbone of India27s rural economy, making cooperatives stronger, more successful, and inclusive.

Scheme Feature	Details
Total Grant Amount	Rs 2000 Crore (2025-26 to 2028-29)
Expected Market Mobilisation	Rs 20,000 Crore
Beneficiaries	2.9 Crore members of 13,288 cooperatives
Sectors Covered	Dairy, Livestock, Fisheries, Sugar, Textiles, Food Processing, Storage, Labour, Women-led groups
Implementing Agency	National Cooperative Development Corporation (NCDC)
Loan Types	Long-term credit, Working capital loans
Official Website	https://www.ncdc.in/