The government has significantly stepped up long-term financing for cooperative institutions to boost agriculture and allied sectors, Union Home and Cooperation Minister Amit Shah informed the Lok Sabha.
He said the National Cooperative Development Corporation (NCDC) is implementing the Dirghavadhi Krishak Punji Sahakar Yojana to ensure uninterrupted credit flow for capital formation in rural areas. Under the scheme, Rs 5,400.76 crore has been sanctioned and Rs 2,137 crore disbursed over the last three financial years.
Shah highlighted that the scheme supports financially sound cooperatives with at least three years of operations, positive net worth, and consistent profitability. Loans are sanctioned after strict appraisal and backed by adequate security.
NCDC monitors implementation through its regional network and periodic field inspections. In case of defaults, recovery is pursued through legal mechanisms including SARFAESI Act and Debt Recovery Tribunal proceedings.
The Minister said the scheme has strengthened agricultural credit cooperatives, enhanced long-term lending capacity, and promoted diversification into allied and non-farm activities, thereby supporting sustainable rural economic growth.
