Union Home and Cooperation Minister Amit Shah has announced that a new scheme, modeled on the lines of CSISAC, is being formulated for the development of cooperatives through the National Cooperative Development Corporation (NCDC).
With a proposed outlay of Rs 24,000 crore, the scheme is expected to benefit 29,050 cooperative societies and directly impact over one crore members.
Shah highlighted the rapid expansion of NCDC’s operations, noting that the disbursement of financial assistance has increased nearly fourfold, from Rs 24,733.20 crore in FY 2020–21 to Rs 95,182.84 crore in FY 2024–25. The Corporation has clocked an impressive 40% compound annual growth rate (CAGR) in disbursement over the last four years.
As part of its financial reforms, NCDC has introduced a floating interest rate mechanism, resulting in a reduction of term loan interest rates by around 2%. “This allows borrowers to benefit from lower rates based on market conditions,” Shah said.
Additionally, the Corporation has adopted a differential rate mechanism, tailoring loan interest rates based on a borrower’s financial health and repayment capacity.
To improve access to credit, NCDC has enabled cooperative societies to avail collateral-free loans through registration under schemes such as CGTMSE, CGSFPO, and CGFT-AHD.
The minister also lauded the strategic collaboration between NCDC and the National Dairy Development Board (NDDB). The two institutions have signed a Memorandum of Understanding (MoU) to jointly support financing, training, and capacity building of dairy cooperatives, aimed at empowering small dairy producers and increasing farmers’ income.
In a bid to strengthen the broader cooperative ecosystem, NCDC has started appraising large-scale projects for other lenders lacking the technical capacity. For example, the Corporation evaluated three major dairy projects for the Gujarat State Cooperative Bank.
On the expansion front, NCDC has broadened its geographic reach by inaugurating a new Regional Office in Vijayawada (Andhra Pradesh) and Sub-Offices across Jammu & Kashmir, Ladakh, Sikkim, Manipur, Mizoram, Tripura, Arunachal Pradesh, Meghalaya, and Nagaland.
To enhance internal efficiency, NCDC has onboarded a new generation of professionals, including 12 Chartered Accountants/Cost Accountants (CA/CMA/Inter), 31 MBA graduates, and others, bringing in fresh talent and expertise.
“These initiatives are in line with Prime Minister Narendra Modi’s vision of ‘Sahakar se Samriddhi’ and will lay the foundation for a robust, inclusive, and self-reliant cooperative movement,” Amit Shah said.
Shah also stated that under the Central Sector Scheme for forming 10,000 Farmer Producer Organizations (FPOs), the National Cooperative Development Corporation (NCDC) has disbursed Rs 179 crore to FPOs and Cluster-Based Business Organizations. Initially tasked with forming 746 FPOs, NCDC achieved the target under the Cooperative Societies Act.
Later, with support from the Ministries of Cooperation and Agriculture, NCDC was given an extended mandate to form 1,117 FPOs through Primary Agricultural Credit Societies (PACS). This target too has been fully met. The initiative aims to improve market access and ensure fair, remunerative prices for farmers across India.
Good but if implemented unbiased
I m