New Delhi, July 31 (NationPress) The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to a Central Sector Scheme that allocates a grant in aid of Rs 2,000 crore to the National Cooperative Development Corporation (NCDC). This funding will be spread over a period of four years from 2025-26 to 2028-29, amounting to Rs 500 crore each year.

With this grant, NCDC is expected to leverage an additional Rs 20,000 crore from the open market over the next four years. These resources will be directed towards providing loans to cooperatives for establishing new projects, expanding existing plants, and fulfilling working capital needs, as detailed in an official statement issued post-Cabinet meeting.

The funding source for this Rs 2,000 crore grant will be through budgetary allocations from the Government of India.

Approximately 2.9 crore members belonging to 13,288 cooperative societies across various sectors—such as Dairy, Livestock, Fisheries, Sugar, Textile, Food Processing, Storage, Cold Storage, Labour, and Women-led cooperatives—are set to benefit from the NCDC grant, as noted in the statement.

NCDC will act as the executing agency for this initiative, overseeing disbursement, monitoring project implementation, and recovering loans distributed from this fund.

Loans will be available to cooperatives either through the state government or directly, adhering to NCDC’s guidelines. Cooperatives meeting the eligibility criteria for direct funding will be considered for financial assistance against acceptable security or state government guarantees, according to the statement.

NCDC will also extend loans for long-term credit aimed at establishing new projects and upgrading or enlarging existing facilities across diverse sectors, along with providing working capital to help businesses operate efficiently and profitably.

Funds allocated to these cooperatives will facilitate the creation of income-generating capital assets and enhance liquidity through working capital.

Apart from economic advantages, cooperatives embody principles of democracy, equality, and community engagement, playing a crucial role in narrowing socio-economic disparities and boosting women’s participation in the workforce, the statement underlined.

The accessibility of loans will empower cooperatives to enhance their capacities, modernize operations, diversify activities, improve profitability, and increase productivity, ultimately generating more employment opportunities and elevating the economic well-being of farmer members.

Moreover, long-term loans for infrastructure development are expected to create extensive job opportunities across various skill levels, as stated.