Grant-in-aid to the National Cooperative Development Corporation

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 National Cooperative Development Corporation (NCDC)

The National Cooperative Development Corporation (NCDC) is a statutory body established in 1963 under the Ministry of Cooperation to promote, strengthen, and develop cooperatives in various sectors, including agriculture, rural industries, and allied activities.

Establishment and structure

• Status: The NCDC is a statutory corporation established by an Act of Parliament, specifically the National Cooperative Development Corporation Act, 1962.
• Year of formation: It was established in 1963 and became operational to promote and finance cooperative societies.
• Parent ministry: It functions under the Ministry of Cooperation.
• Apex body: NCDC is the apex financial and developmental institution in India exclusively for the cooperative sector.
• Management: It is managed by a General Council and a Board of Management and is headquartered in New Delhi, with regional directorates across India.

Objective and Functions

• • Primary objective: To promote, strengthen, and develop farmer cooperatives to increase production, productivity, and post-harvest facilities.
  • Promotional role: It plans and promotes programs based on cooperative principles for the production, processing, marketing, storage, export, and import of goods.
  • Financial assistance: It provides financial assistance, including loans and grants, to cooperatives for various purposes. Assistance can be given directly to eligible cooperatives or indirectly through state governments.
  • Key sectors:
    • Farm sector: It focuses on agricultural marketing, inputs, processing, storage, cold chains, seeds, and fertilizers.
    • Non-farm sector: It promotes income-generating activities in areas like dairy, livestock, poultry, fisheries, handlooms, and sericulture.
  • Focus on weaker sections: NCDC has a special focus on cooperatives run by women, Scheduled Castes, and Scheduled Tribes.
  • Wider rural services: Following an amendment to the NCDC Act, it can finance a wider range of rural projects, including water conservation, agricultural insurance, and animal health.

Financial aspects and recent developments

• Funding mechanism: NCDC maintains a National Cooperative Development Fund to provide loans and grants.
• New financial scheme: The Union Cabinet recently approved a Central Sector Scheme granting ₹2,000 crore to NCDC for the four-year period from 2025–26 to 2028–29. This grant will enable NCDC to raise up to ₹20,000 crore from the open market to be lent to cooperatives.
• Utilization of funds: The funds from the new scheme will be used to provide loans for setting up new projects, expanding plants, and meeting working capital requirements.

Key initiatives and schemes

• Integrated Cooperative Development Project (ICDP): This is an area-based project for the overall development of districts through cooperative activities.
• YUVA SAHAKAR: A scheme to encourage newly formed cooperative societies and support start-ups with innovative ideas.
• AYUSHMAN SAHAKAR: A scheme to finance cooperatives establishing hospitals and providing healthcare services.
• NANDINI SAHAKAR: This scheme aims to empower women-led cooperatives by providing targeted financial assistance.
• DAIRY SAHAKAR: A financial assistance framework for dairy cooperatives that promotes environmentally and socially responsible practices.
• SAHKAR MITRA: An internship program providing young professionals with an opportunity to gain experience in the cooperative sector.
• Implementer for other schemes: NCDC is also an implementing agency for Central Sector/Sponsored schemes such as the Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) and the Agriculture Infrastructure Fund (AIF).