Grant in Aid to NCDC

Source: PIB

Context: The Ministry of Cooperation has provided a ₹1,000 crore grant to the National Cooperative Development Corporation (NCDC) to strengthen Cooperative Sugar Mills (CSMs).

• The grant aims to leverage ₹10,000 crore in financial assistance for ethanol plants, cogeneration units, and working capital support.

About Grant-in-Aid to NCDC for Strengthening of Cooperative Sugar Mills (CSMs)

What is the Scheme?

• A financial assistance initiative to support Cooperative Sugar Mills (CSMs) in improving productivity and sustainability.

• Funds provided to NCDC to enable borrowing from the market, ensuring a higher capital flow for sugar mills.

Nodal Ministry

• Ministry of Cooperation, Government of India.

Launched By

• Implemented during FY 2022-23 and continued in FY 2024-25.

Key Features of the Scheme

• Financial Assistance for Sugar Mills: ₹1,000 crore grant to NCDC to mobilize ₹10,000 crore for CSMs. Funds to be used for ethanol production units, cogeneration plants, and working capital needs.

• Funds to be used for ethanol production units, cogeneration plants, and working capital needs.

• Boosting Ethanol Production: Supports the National Bio-Energy Policy by promoting ethanol blending in fuel. Helps reduce crude oil imports and enhance energy security.

• Helps reduce crude oil imports and enhance energy security.

• Support for Co-generation Plants: Sugar mills encouraged to establish bagasse-based power generation for energy self-sufficiency. Enables integration with the renewable energy sector.

• Enables integration with the renewable energy sector.

• Market-Based Fund Mobilization: NCDC leverages grant to raise capital from financial markets, ensuring sufficient liquidity for sugar mills.

About National Cooperative Development Corporation (NCDC)

What is NCDC?

The National Cooperative Development Corporation (NCDC) is a statutory organization dedicated to promoting, financing, and supporting cooperative institutions in India.

• Established in: Founded in 1963 under the National Cooperative Development Corporation Act, 1962.

• Nodal Ministry: Functions under the Ministry of Cooperation, Government of India.

• Headquarters: New Delhi, India.

Functions of NCDC:

• Financial Assistance: Provides funds for cooperative development in agriculture, rural industries, and allied sectors.

• Capacity Building: Organizes training programs to enhance cooperative management skills.

• Policy Implementation: Supports government schemes for rural economic empowerment through cooperatives.

• Project Development: Assists in infrastructure creation, storage facilities, and marketing support for cooperatives.

• Loan & Subsidy Disbursement: Provides concessional loans and financial grants to cooperative societies.