Grant -in-aid to National Cooperative Development Corporation (NCDC)

Prelims - Current events of national and international importance| Social Sector Initiatives.

Why in news?

Recently, Cabinet approves central sector scheme, Grant in aid to National Cooperative Development Corporation (NCDC).

Duration - 4 years from 2025-26 to 2028- 29.
Funds will be utilised by - NCDC for granting loans to Cooperatives for setting up new projects / expansion of plants and loan for meeting the working capital requirements.
Implemented by - National Cooperative Development Corporation (NCDC).
Features - NCDC will provide loans to cooperatives either through state government or directly, as per NCDC guidelines.
Criteria for Cooperatives, which are meeting the criteria of direct funding guidelines of NCDC would be considered for financial assistance directly against admissible security or state government guarantee.

National Cooperative Development Corporation (NCDC)

Established in - 1963 as a statutory corporation.
Nodal Ministry – Ministry of Cooperation.
Headquarters– New Delhi.
- NCDC functions through 18 Regional/State Directorates.
Management – It is overseen by a General Council and a Board of Management.
Functions – Planning, promoting and financing programmes for production, Processing, marketing, Storage, export and import of agricultural produce, food stuffs.
Supply of consumer goods and collection, export of minor forest products through cooperatives, besides income generating stream of activities such as poultry, dairy, fishery, sericulture, handloom.
The NCDC Act has been amended to support a broader range of cooperatives and strengthen its financial resources.
Support for Rural projects – It is also empowered to fund rural industrial cooperative projects and essential rural services.
Loans and grants are given to State Governments to help fund primary and secondary level cooperative societies.
They also given loan directly to national-level and other cooperative societies which operates in more than one State.
It can also directly fund projects under its various assistance schemes upon fulfilment of the specified conditions.

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