**Executive Summary**
The 'Dirghavadhi Krishak Punji Sahakar Yojana,' launched by the National Cooperative Development Corporation (NCDC) under the Ministry of Cooperation, aims to provide uninterrupted long-term credit for capital formation in agriculture and allied sectors. As of March 17, 2026, the scheme has sanctioned a total of Rs. 5400.76 crore and disbursed Rs. 2137.00 crore over the last three financial years. The document outlines strict eligibility criteria for cooperatives and a structured legal recovery mechanism for loan defaults.
**Key Points / Main Content**
**Eligibility Criteria for Cooperatives**
* **Operational History:** The cooperative must have been in operation for at least three years.
* **Financial Health:** The entity must maintain a positive net worth of at least 100% of its paid-up share capital (no capital erosion).
* **Profitability:** The cooperative must not have incurred any cash losses in the last three years and must have recorded a net profit in at least two of those years.
**Monitoring and Appraisal**
* NCDC conducts financial appraisal and due diligence against adequate security before sanctioning loans.
* The scheme is monitored via 19 Regional Offices and 9 sub-offices through periodic field visits and inspections.
**Default and Recovery Mechanism**
* **Initial Action:** Issuance of a legal recall notice for outstanding loans and interest.
* **Negotiable Instruments Act:** If Post-Dated Cheques (PDCs) are dishonored, a statutory notice is issued under Section 138; failure to pay within 15 days leads to court proceedings.
* **SARFAESI Act, 2002:** For Non-Performing Assets (NPAs), a demand notice under Section 13(2) requires discharge of liability within 60 days, followed by measures under Section 13(4) if unpaid.
* **Debt Recovery Tribunal (DRT):** Original Applications (OAs) may be filed under the Recovery of Debts and Bankruptcy Act, 1993, potentially simultaneous with SARFAESI actions.
**Financial Performance (2022-2025)**
* **2022-23:** Rs. 400.00 crore sanctioned; Rs. 0.00 disbursed.
* **2023-24:** Rs. 0.00 sanctioned; Rs. 60.00 crore disbursed.
* **2024-25:** Rs. 5000.76 crore sanctioned; Rs. 2077.00 crore disbursed.
**Impact Analysis**
**Agricultural Credit Cooperatives**
**Impact**
Cooperatives receive long-term financial assistance to supplement resources for onward lending and non-farm diversification.
**Action Required**
Must maintain positive net worth and profitability to meet eligibility; must ensure timely repayment to avoid rigorous legal recovery actions under SARFAESI or DRT.
**National Cooperative Development Corporation (NCDC)**
**Impact**
Acts as the statutory monitoring and lending body responsible for capital formation in the cooperative sector.
**Action Required**
Conduct periodic field inspections and follow structured legal protocols for the recovery of outstanding dues and NPAs.
**Agriculture and Allied Sectors**
**Impact**
Benefit from increased and uninterrupted credit flow, supporting capital formation and sustainable rural economic development.
**Action Required**
Utilize funds for intended capital projects to enhance institutional capacity and broaden outreach.
Key Entities Referenced
Dirghavadhi Krishak Punji Sahakar Yojana: A scheme launched to ensure increased and uninterrupted credit flow for capital formation in agriculture and allied sectors by strengthening Agricultural Credit Cooperatives.
National Cooperative Development Corporation (NCDC): A statutory organization under the Ministry of Cooperation that implements the scheme, sanctions loans, and monitors the financial health of cooperative societies.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002: The legal framework used by the NCDC to initiate recovery proceedings and issue demand notices against cooperative societies that default on loan repayments.
Recovery of Debts and Bankruptcy Act, 1993: Legislation under which Original Applications are filed before the Debt Recovery Tribunal (DRT) for the recovery of outstanding dues from borrowing cooperatives.
Ministry of Cooperation: The central ministry providing administrative control over the NCDC and overseeing the development and resource supplementation of the cooperative sector.
Ministry of Cooperation
Dirghavadhi Krishak Punji Sahakar Yojana
Posted On: 17 MAR 2026 4:40PM by PIB Delhi
National Cooperative Development Corporation a statutory organization working under administrative
control of Ministry of Cooperation launched ‘Dirghavadhi Krishak Punji Sahakar Yojana’ to ensure
increased and uninterrupted credit flow for capital formation in agriculture and allied sectors. The
eligibility criteria and appraisal parameters to assess proposals under the ‘Dirghavadhi Krishak Punji
Sahakar Yojana’ scheme are:-
i. The cooperative should have been in operation for not less than 3 years.
ii. The cooperative should have positive net worth, not less than 100% paid up share capital, i.e. there
should be no erosion in the paid up share capital.
iii. The co operative should not have incurred any cash loss during last three years and there should be
net profit in at least two of previous three years.
NCDC evaluates the financial health, performance, and credibility of cooperative society and sanctions
loan for a project against adequate security while adopting its standard practice of appraisal and due
diligence.
NCDC through its 19 Regional Offices and 9 sub offices actively monitors the implementation of schemes
and ensures access to timely credit flow to cooperatives. Field visits/inspections are done periodically for
proper monitoring of loan disbursed under the scheme.
In the event of default in repayment of loan by the borrowing cooperative society, the National
Cooperative Development Corporation (NCDC) follows a structured recovery mechanism in accordance
with the applicable legal provisions.
Initially, upon occurrence of default, a legal recall notice is issued to the borrower calling upon it to repay
the outstanding loan amount along with applicable interest and charges within the stipulated period.
Where Post-Dated Cheques (PDCs) are obtained from the borrower as security, the same are presented for
realization. In case of dishonour, a statutory notice under Section 138 of the Negotiable Instruments Act,
1881 is issued, and if the borrower fails to make payment within 15 days of receipt of the notice,
appropriate proceedings under the said provision are initiated before the competent court
Further, once the loan account is classified as Non-Performing Asset (NPA) in accordance with the
applicable norms, recovery proceedings are initiated under the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. In this process, a Demand
Notice under Section 13(2) of the SARFAESI Act is issued to the borrower calling upon it to discharge the
entire outstanding liability within 60 days.
In case the borrower fails to comply with the demand notice within the stipulated period, the Corporation
proceeds to take measures under Section 13(4) of the SARFAESI Act, in accordance the relevant Rules.Additionally, wherever considered necessary, Original Applications (OAs) are also filed before the Debt
Recovery Tribunal (DRT) under the provisions of the Recovery of Debts and Bankruptcy Act, 1993, for
recovery of the outstanding dues. Such proceedings may be pursued simultaneously along with action
under the SARFAESI Act.
Details of amount sanctioned and released under the said scheme during the last three
financial years is as under:
(Rs. In crore)
Financial Year Sanctioned amount Disbursed amount
2022-23 400.00 0.00
2023-24 0.00 60.00
2024-25 5000.76 2077.00
Total 5400.76 2137.00
The “Dirghavadhi Krishak Punji Sahakar Yojana” has strengthened Agricultural Credit Cooperatives by
supplementing their resources with long term financial assistance for onward lending. This has enabled
increased and uninterrupted credit flow, promoted capital formation in agriculture and allied activities and
supported diversification into non-farm sector enterprises. Collectively, the scheme has enhanced
institutional capacity, broadened outreach, and reinforced the cooperative sector’s role in providing
sustainable long-term credit and promoting rural economic development.
This information was given by Union Minister for Home and Cooperation Shri Amit Shah in a written
reply in Lok Sabha.
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AK/AP
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