Cabinet approves ₹2,000-crore grant-in-aid scheme for NCDC
On 31 July 2025, the Union Cabinet approved the Central Sector Scheme 'Grant in aid to National Cooperative Development Corporation (NCDC)' with ₹2,000 crore for 2025-26 to 2028-29.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi approved on 31 July 2025 the Central Sector Scheme 'Grant in aid to National Cooperative Development Corporation (NCDC)' with an outlay of ₹2,000 crore for four years from 2025-26 to 2028-29, at ₹500 crore a year. On the basis of this grant, NCDC will be able to raise ₹20,000 crore from the open market over four years, to lend to cooperatives for new projects, plant expansion and working capital. About 2.9 crore members of 13,288 cooperative societies in sectors such as dairy, livestock, fisheries, sugar, textiles, food processing and storage are likely to benefit. NCDC will lend either through State governments or directly.
Key facts
- Approved
- 31 July 2025
- Outlay
- ₹2,000 crore; ₹500 crore a year, 2025-26 to 2028-29
- Leverage
- NCDC to raise ₹20,000 crore from the open market
- Beneficiaries
- About 2.9 crore members of 13,288 cooperative societies
- Executing agency
- NCDC; loans through State governments or directly
Practice MCQs 2 questions
The Central Sector Scheme 'Grant in aid to NCDC' approved by the Cabinet on 31 July 2025 has what outlay and period?
Show answer
Correct answer: B — ₹2,000 crore over four years, 2025-26 to 2028-29
The scheme has ₹2,000 crore for four years from 2025-26 to 2028-29, at ₹500 crore a year.
On the basis of the ₹2,000-crore grant approved on 31 July 2025, how much will NCDC be able to raise from the open market over four years?
Show answer
Correct answer: C — ₹20,000 crore
The Cabinet release says NCDC will be able to raise ₹20,000 crore from the open market.