The National Cooperative Development Corporation, functioning under the Ministry of Cooperation, has launched the ‘Dirghavadhi Krishak Punji Sahakar Yojana’.
The scheme aims to strengthen long-term credit availability for cooperative societies engaged in agriculture and allied sectors. It is designed to support capital formation, improve rural infrastructure, and ensure a steady flow of institutional finance.
Objective of the Dirghavadhi Krishak Punji Sahakar Yojana
The primary objective of the scheme is to provide long-term financial assistance to cooperatives.
Key Goals
- Promote capital formation in agriculture
- Support infrastructure development in rural areas
- Encourage diversification into allied activities
- Strengthen the cooperative credit system
The scheme focuses on improving productivity and income generation in rural economies.
Eligibility Criteria for Cooperatives
To ensure financial discipline and sustainability, cooperatives must meet specific eligibility conditions.
Key Eligibility Conditions
- Minimum 3 years of operational history
- Must have positive net worth
- No erosion in paid-up share capital
- No cash losses in the last three years
- Must have recorded net profit in at least two of the last three years
These criteria ensure that only financially stable and credible cooperatives receive assistance.
Appraisal and Monitoring Mechanism
The NCDC follows a rigorous appraisal and monitoring process.
Loan Appraisal Process
- Evaluation of financial health
- Assessment of operational performance
- Verification of creditworthiness
Loans are sanctioned against adequate security after due diligence.
Monitoring Mechanism
- Regular field inspections
- Continuous project monitoring
- Oversight by regional and sub-offices
This ensures proper utilisation of funds and timely project implementation.
Recovery Process in Case of Default
A structured legal framework is followed in case of loan default.
Steps in Recovery
- Recall Notice issued for repayment
- Action under Negotiable Instruments Act 1881 (Section 138) for cheque dishonour
- Proceedings under SARFAESI Act 2002
- Section 13(2): Demand notice
- Section 13(4): Enforcement action
- Cases filed in Debt Recovery Tribunal under the Recovery of Debts and Bankruptcy Act, 1993
This ensures effective recovery and financial discipline.
About NCDC
The National Cooperative Development Corporation is a statutory body established in 1963.
Key Functions
- Provides financial assistance to cooperatives
- Supports agriculture and allied sectors
- Promotes cooperative-based rural development
It plays a crucial role in strengthening the cooperative movement in India.
Significance of the Scheme
The scheme is important for India’s rural and agricultural economy.
Key Benefits
- Enhances access to long-term finance
- Strengthens cooperative institutions
- Boosts rural infrastructure development
- Supports agriculture diversification
- Improves income generation for farmers
It aligns with the government’s vision of cooperative-led development.
Exam-Oriented Facts
- NCDC established in 1963.
- Works under Ministry of Cooperation (2021).
- Scheme focuses on long-term credit for cooperatives.
- Minimum 3 years operational requirement for eligibility.
- Recovery under SARFAESI Act, 2002 and DRT.
- Aims to boost rural infrastructure and agriculture investment.
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