Government Boosts NCDC with Rs 2,000 Crore Grant

In a major boost to cooperative lending, the Union Cabinet has sanctioned a substantial Rs 2,000 crore grant-in-aid to the National Cooperative Development Corporation (NCDC). This decision, taken during a Cabinet Committee on Economic Affairs meeting chaired by Prime Minister Narendra Modi, is set to amplify the NCDC's financial capacity.

The grant, spread over four years, aims to support the organization in furthering its robust financial model. Information and Broadcasting Minister Ashwini Vaishnaw highlighted that NCDC, which currently serves over 8.25 lakh cooperatives with 29 crore members, serves as an essential financial backbone for cooperatives, especially benefiting farmers who make up 94% of its members.

With an impressive loan recovery rate of 99.8% and no non-performing assets, the NCDC is well-positioned to leverage this grant to achieve an additional Rs 20,000 crore in funds for future lending, strengthening India's cooperative sectors.

(With inputs from agencies.)