Boosting Cooperative Growth: Rs 2,000 Crore Aid to NCDC Approved

The Union Cabinet, led by Prime Minister Narendra Modi, has sanctioned a central sector scheme for 'Grant in aid to NCDC' with a financial outlay of Rs 2,000 crore for four years, starting from 2025-26. This decision is aimed at supporting the cooperative sector in mobilising funds for lending purposes.

The financial boost is anticipated to enable the National Cooperative Development Corporation (NCDC) to mobilise Rs 20,000 crore in funds, providing significant developments for 13,288 cooperative societies. The scheme, which displays the government's commitment to enhancing the cooperative ecosystem, was announced by I&B Minister Ashwini Vaishnaw.

NCDC will distribute these funds strategically to support new projects, expansion of existing plants, and address working capital needs. The statement emphasized that the funding would create income-generating assets and provide cooperatives with crucial liquidity support. This initiative underlines the government's support for over 8.25 lakh cooperatives in India.

(With inputs from agencies.)