THEBUSINESSBYTES BUREAU

NEW DELHI, OCTOBER 29, 2026

The National Cooperative Development Corporation (NCDC) has disbursed financial assistance of Rs 4.15 lakh crore to cooperative institutions across the country since the establishment of the Ministry of Cooperation, with Union Minister Amit Shah calling for an ambitious 25-year roadmap to strengthen the corporation’s financial capacity and expand its reach.

The cumulative disbursement stood at Rs 4,14,586 crore as of October 25, 2026, according to financial details presented at the NCDC’s 93rd General Council meeting held here on Thursday under the chairmanship of Shah, who is also the Union Home Minister.

The corporation sanctioned projects worth Rs 1,55,408 crore and disbursed Rs 1,27,596 crore during the 2025-26 financial year, registering a net profit of Rs 1,475 crore. Its loan recovery rate stood at 99.84 per cent, while its net non-performing assets (NPAs) remained zero, according to a statement issued by the Ministry of Cooperation.

NCDC’s annual disbursement has risen nearly fivefold from Rs 24,733 crore in 2020-21 to Rs 1,27,596 crore in 2025-26. The 3,339 units and projects sanctioned during the last financial year are expected to benefit 14,881 cooperative societies.

Addressing the meeting, Shah commended the corporation’s performance in financial management, loan sanctions, disbursements and profitability, and called for a comprehensive long-term strategy to position it as a stronger institution capable of meeting the growing financing needs of the cooperative sector.

He proposed constituting a group of experienced cooperative-sector representatives and professional experts to examine NCDC’s organisational structure, capital mobilisation avenues, financial autonomy, participation of cooperative societies and emerging business opportunities.

Shah also suggested holding a workshop on these issues and directed that a special meeting be convened after March 31, 2027, for a detailed presentation and discussion, with progress towards necessary decisions targeted by December 2027.

Emphasising the need to scale up financing, Shah referred to disbursement targets of Rs 1.70 lakh crore for 2026-27, Rs 2.10 lakh crore for 2027-28 and Rs 2.50 lakh crore for 2028-29.

He called for further expansion in subsequent years, proposing disbursements of around Rs 3.50 lakh crore in both 2029-30 and 2030-31, citing the significant growth potential in dairy, fisheries, cooperative banking and other sectors.

The minister stressed that NCDC should develop financial and organisational models that reduce excessive dependence on government assistance and government banks. He called for exploring consortium financing and co-financing arrangements with NABARD, state cooperative banks and commercial banks, along with innovative models to meet the financing requirements of the dairy cooperative sector.

Shah also appreciated the support extended by the Reserve Bank of India and the Ministry of Finance in addressing the corporation’s financial and regulatory challenges.

Highlighting the role of cooperatives in inclusive economic growth, Shah said the movement could connect small farmers, livestock rearers, rural women, fishers and economically weaker sections with the national development process.

He cited Amul, IFFCO and Lijjat Papad as examples of successful cooperative enterprises demonstrating how cooperative values, backed by professional management, could create globally competitive institutions.

The minister underscored NCDC’s role in developing institutions such as National Cooperative Exports Limited (NCEL), Bharatiya Beej Sahakari Samiti Limited (BBSSL), National Cooperative Organics Limited (NCOL), Bharat Taxi, Sahakar Sarathi and the umbrella organisation for urban cooperative banks, NUCFDC.

He said improving the livelihoods of small farmers, livestock rearers and fishers was as important as financing large cooperative enterprises.

In the fisheries sector, NCDC has provided financial assistance for around 100 trawlers for deep-sea fishing. Shah said the initiative could substantially improve the monthly incomes of fishing families and create better opportunities for their children, urging the corporation to expand such grassroots interventions.

He also called for circular-economy-based business models for cooperative sugar mills, referring to proposed multi-state cooperative initiatives in Kolhapur and Pune in Maharashtra. Shared processing and industrial facilities could help mills unable to independently invest in modern plants, he said, stressing that the resulting profits should accrue to the concerned cooperative sugar mills.

Shah further suggested involving eligible young people who had completed training and internships under the Sahakar Mitra programme in new multi-state cooperative societies. He also recommended drawing on the management model of Banas Dairy for NCDC’s future institutional development.

Giving special emphasis to the northeastern region, Shah said a target had been set to make the region self-reliant in animal husbandry, dairy and fisheries by 2030.

Achieving this goal could raise the region’s income by approximately Rs 32,800 crore and generate nearly eight lakh employment opportunities, he said.

He directed NCDC’s regional offices to prepare practical projects in these sectors, arrange financing and implement them in coordination with state governments.

The General Council also discussed the National Cooperative Development Corporation (Amendment) Act, 2026, which was passed by both Houses of Parliament and received presidential assent before being published in the Gazette of India on August 14, 2026.

The amendment expands avenues for financial assistance, institutional participation and investment through equity and share capital, thereby strengthening NCDC’s capacity to support cooperative development.

To make financing more accessible and competitive for cooperative societies, the Centre has approved grant assistance of Rs 2,000 crore for NCDC, enabling it to mobilise Rs 20,000 crore from the market over four years.

Under the initiative, loans worth Rs 9,380 crore were disbursed in 2025-26, while a further Rs 6,172 crore was disbursed in 2026-27 up to October 25.

NCDC has launched the Sahakar Navachar Yojana to promote innovation and entrepreneurship in the cooperative sector. The scheme provides 100 per cent grant assistance of up to Rs 25 lakh to eligible cooperative societies.

An initial fund of Rs 10 crore has been created, with 20 per cent earmarked for cooperatives in the northeastern region, hilly areas and disadvantaged sections. Grant assistance of Rs 85 lakh has so far been sanctioned to five cooperative societies.

The corporation is also extending support in business development, digital accounting, financial management, branding and market linkages.

In another initiative, NCDC has registered 1,863 cooperative Farmer Producer Organisations (FPOs), including 1,117 formed through Primary Agricultural Credit Societies (PACS). Disbursements to FPOs and related institutions under the scheme reached Rs 356.90 crore up to October 2026.

The corporation is also supporting fisheries cooperatives, women’s cooperatives, dairy and animal husbandry enterprises, food processing units and other rural livelihood activities.

On human-resource development, NCDC’s Laxmanrao Inamdar National Academy for Cooperative Research and Development (LINAC) and its regional training centres conducted 227 training programmes involving 21,688 participants during 2025-26.

The corporation’s agreement with IRMA (TSU) to strengthen modern management practices, digital technology, financial discipline, branding and professional efficiency in cooperative institutions was also highlighted.

The General Council reviewed NCDC’s audited annual accounts, annual report and financial performance for 2025-26, besides deliberating on future financing programmes, resource mobilisation, the sector’s growing credit requirements and the corporation’s long-term strategy.