Cabinet Boosts Rural Economy: ₹2,000 Crore Grant for NCDC, Additional ₹1,920 Crore for Food Processing.

In a significant move to boost the country's rural and agri-based economies, the Union Cabinet has approved a substantial financial package, allocating funds to the National Cooperative Development Corporation (NCDC) and the Pradhan Mantri Kisan Sampada Yojana (PMKSY).

The government has sanctioned a ₹2,000 crore grant-in-aid for the NCDC, to be disbursed over four years, from FY 2025-26 to FY 2028-29, at ₹500 crore annually. According to Information and Broadcasting Minister Ashwini Vaishnaw, this grant will enable the NCDC to raise an additional ₹20,000 crore from the market. Vaishnaw highlighted the NCDC’s strong financial health, noting its 99.8% loan recovery rate and zero non-performing assets (NPAs).

The funds mobilized by the NCDC will be used to provide credit to cooperative societies, supporting them in setting up new projects, expanding existing plants, and meeting working capital needs. The government believes this will lead to the creation of income-generating capital assets within the cooperative sector.

In a separate decision, the Cabinet has also increased the allocation for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) by ₹1,920 crore, bringing the total scheme allocation to ₹6,520 crore. This additional funding will be used to establish 50 multi-product food irradiation units and 100 food testing labs, aimed at strengthening the food processing infrastructure and ensuring food safety standards across the country.