NCDC Launches Dirghavadhi Krishak Punji Sahakar Yojana

Long-Term Credit Boost for Cooperatives in Agriculture Sector

The National Cooperative Development Corporation (NCDC), under the Ministry of Cooperation, has launched the ‘Dirghavadhi Krishak Punji Sahakar Yojana’ . The scheme focuses on enhancing long-term credit access for cooperatives involved in agriculture and allied activities, with the objective of strengthening rural infrastructure and promoting capital formation.

Objective of the Scheme

The scheme aims to provide long-term financial assistance to cooperative societies for investments in agriculture and related sectors. It seeks to boost productivity, support infrastructure development, and encourage diversification into income-generating rural enterprises. Additionally, it strengthens the cooperative credit framework by ensuring a consistent flow of institutional finance.

Eligibility Criteria for Cooperatives

Eligible cooperatives must satisfy defined financial and operational conditions. They should have a minimum operational history of three years and maintain a positive net worth without erosion of share capital. Furthermore, they must not have recorded cash losses in the last three years and should have earned profits in at least two of those years. These norms ensure financial stability and responsible fund utilisation.

Appraisal and Monitoring Mechanism

Before sanctioning assistance, NCDC conducts a comprehensive appraisal of the cooperative’s financial viability and operational efficiency. Loans are approved against adequate collateral following due diligence. Project implementation is monitored through NCDC’s regional network, with periodic inspections and reviews to ensure proper utilisation of funds and timely progress.

Recovery Process in Case of Default

NCDC follows a structured legal framework for recovery. A recall notice is issued initially for repayment. In cases of cheque dishonour, action is taken under Section 138 of the Negotiable Instruments Act, 1881. If the account turns non-performing, proceedings are initiated under the SARFAESI Act, 2002, including demand notices and asset recovery measures. Additionally, cases may be pursued before the Debt Recovery Tribunal under the Recovery of Debts and Bankruptcy Act, 1993.

Exam-Focused Points

• NCDC established in 1963 as a statutory body.

• Functions under Ministry of Cooperation (est. 2021) .

• Scheme provides long-term credit to cooperatives .

• Focus on agriculture, allied sectors, and rural infrastructure .

• Eligibility includes 3 years operation + positive net worth .

• Recovery tools: SARFAESI Act, 2002 & DRT mechanism .

• Promotes capital formation and rural enterprise diversification .