News: The Union Cabinet has approved the Central Sector Scheme “Grant in aid to National Cooperative Development Corporation (NCDC)” with an outlay of Rs.2000 crore for a period of four years from 2025-26 to 2028- 29.
About Grant in aid to National Cooperative Development Corporation (NCDC)
- It is a scheme to provide financial support to the cooperative societies throughout the country
- Type: Central Sector Scheme
- Outlay: The scheme provides a budgetary support of 2000 crore for a period of four years from 2025-26 to 2028- 29 (Rs.500 crore each year from FY 2025-26).
- Financial implications:
- On the basis of grant in aid of Rs.2000 crore, NCDC will be able to raise Rs.20,000 crore from open market over a span of four years.
- Benefits
- The scheme will benefit approximately 9 crore members of 13,288 Cooperative societies of various sectors like Dairy, Livestock, Fisheries, Sugar, Textile, Women led cooperatives across the country.
- Implementation strategy and targets:
- NCDC will be the executing agency for this scheme for the purpose of disbursement, follow up, monitoring of implementation of project, and recovery of loan disbursed out of the fund.
- NCDC will provide loans to cooperatives either through state government or directly, as per NCDC guidelines.
- NCDC will provide loans to cooperatives, long term credit for setting up/ modernization/ technology upgradation/ expansion of project facilities for various sectors and working capital to run their businesses efficiently and profitably.
- Impact, including employment generation potential:
- Funds provided to these cooperatives will lead to creation of income generating capital assets and provide cooperatives with much needed liquidity in the form of working capital.
- It will be an essential tool to bridge the socio-economic gap and increase participation of women in the workforce.
- It will also create widespread employment opportunities across different skill levels.
About National Cooperative Development Corporation (NCDC)
|
