The central government, in a significant move to strengthen the cooperative sector, has approved the central sector scheme 'Grant Assistance to National Cooperative Development Corporation' for a period of four years from 2025-26 to 2028-29.
New Delhi: In a central cabinet meeting chaired by Prime Minister Narendra Modi on Thursday, a crucial announcement was made regarding the provision of ₹2,000 crore in financial grant assistance to the National Cooperative Development Corporation (NCDC). This assistance will be provided for a period of four years from the financial year 2025-26 to 2028-29. This decision is expected to provide economic strength, infrastructure expansion, and new employment opportunities to the country's cooperative institutions.
What is the Objective of this Financial Assistance?
The main objective of this scheme is to enable NCDC to raise ₹20,000 crore from the open market, which will allow it to provide loans to cooperative societies at affordable rates. These funds will be used for the following purposes:
- Establishment of new projects
- Expansion of existing plants and facilities
- Long-term and working capital loans to cooperative societies
- Support for women and labor cooperatives
This information was shared by Union Minister of Information and Broadcasting, Ashwini Vaishnaw. He stated that this assistance will accelerate inclusive growth in the cooperative sectors.
Who will be the Beneficiaries?
According to the government, this step will directly benefit approximately 2.9 crore members of 13,288 cooperative societies operating in various sectors. These include:
- Dairy and milk production
- Animal husbandry
- Fisheries
- Sugar industry
- Textile sector
- Food processing
- Warehousing and cold storage
This scheme will particularly empower women-led and labor-based cooperative societies, which will also promote social justice and women's empowerment.
NCDC's Role and Performance
The National Cooperative Development Corporation is one of the leading cooperative financial institutions in India. It provides financial assistance to more than 8.25 lakh cooperative societies, with approximately 29 crore members.
- 94% of these members are farmers
- The current loan recovery rate is 99.8%
- It is considered a reliable financial institution due to having zero NPA
Union Minister Ashwini Vaishnaw said that the government has provided ₹2,000 crore in capital grant assistance to NCDC for four years to further enable its b financial model. In addition to the cooperative sector, the Cabinet meeting also approved the expansion of railway infrastructure.
- The fourth railway line between Itarsi and Nagpur has been given the green light.
- This line will connect high-density corridors like Delhi-Chennai and Mumbai-Howrah.
- The Prime Minister defined it as the meeting point of all four directions.
Along with this, the Cabinet also approved four multi-tracking projects, which will add 574 kilometers to the Indian Railway network.
Multi-tracking Projects: States will Benefit Greatly
These railway projects will benefit 13 districts in Maharashtra, Madhya Pradesh, West Bengal, Bihar, Odisha, and Jharkhand.
- Total cost: ₹11,169 crore
- This will speed up both freight and passenger transport
- The expansion of railway infrastructure will also create new employment opportunities
The Cabinet's decisions on financial assistance to NCDC and railway network expansion are considered a concrete step towards 'Developed India 2047'. This will not only strengthen the cooperative sector, but will also give a new dimension to rural India, women's entrepreneurship, and infrastructure development.
