Executive Summary:
The Ministry of Cooperation addressed Lok Sabha Question 3897 on August 12, 2025, regarding the Dirghavadhi Krishak Punji Sahakar Yojana, which is implemented by the NCDC. The response details how NCDC manages loan default risks, the contingency schemes available, and the funds provided under the scheme over the last three years. NCDC uses a robust project appraisal and monitoring system, including financial and technical feasibility assessments, to mitigate risks.
Key Points / Main Content:
Risk Management by NCDC:
* NCDC implements the 'Dirghavadhi Krishak Punji Sahakar Yojana' to provide long-term financial assistance to Agricultural Credit Cooperatives.
* NCDC employs stringent funding guidelines, requiring adequate security from borrowers for viable projects.
* Project appraisal includes technical feasibility, financial viability (IRR, NPV, DSCR), cooperative's financial soundness, past performance, management expertise, and loan repayment history.
* Loan eligibility depends on the cooperatives ability to contribute to the project cost and provide adequate loan security.
* NCDC monitors projects through its Head Office, Regional Offices, and sub-offices, including quarterly field visits and inspections.
* Beneficiary cooperatives must submit periodic progress reports to ensure funds are used as intended.
* NCDC has a dedicated recovery department that sends advance notices and reminders for repayments.
* In case of default, NCDC initiates action under the SARFAESI Act and files cases in DRT if necessary.
Funding Details (Last Three Years):
* 2022-23: Sanctioned ₹400.00 crore, Released ₹0.00 crore
* 2023-24: Sanctioned ₹0.00 crore, Released ₹60.00 crore
* 2024-25: Sanctioned ₹5000.00 crore, Released ₹2077.00 crore
* Grand Total: Sanctioned ₹5400.00 crore, Released ₹2137.00 crore
Impact Analysis:
Agricultural Credit Cooperatives:
* Impact: Receive long-term financial assistance under the Dirghavadhi Krishak Punji Sahakar Yojana for lending purposes. Subject to rigorous project appraisal and monitoring by NCDC.
* Action Required: Ensure projects are technically feasible and financially viable. Maintain financial soundness, demonstrate management expertise, provide adequate security for loans, and submit periodic progress reports. Adhere to repayment schedules to avoid default actions.
NCDC (National Cooperative Development Corporation):
* Impact: Responsible for implementing and monitoring the Dirghavadhi Krishak Punji Sahakar Yojana. Must ensure prudent funding and risk management.
* Action Required: Continue to conduct thorough project appraisals, monitor fund utilization, and take necessary actions for recovery in case of default.
Ministry of Cooperation:
* Impact: Oversees the implementation of the Dirghavadhi Krishak Punji Sahakar Yojana through NCDC.
* Action Required: Monitor NCDC's performance in managing the scheme and achieving its objectives.
Key Entities Referenced
Dirghavadhi Krishak Punji Sahakar Yojana: A scheme implemented by the National Cooperative Development Corporation (NCDC) for extending long-term financial assistance to Agricultural Credit Cooperatives.
National Cooperative Development Corporation (NCDC): A statutory organization under the Ministry of Cooperation, Government of India, responsible for implementing the 'Dirghavadhi Krishak Punji Sahakar Yojana'.
Ministry of Cooperation: The government ministry under which the National Cooperative Development Corporation (NCDC) operates.
Agricultural Credit Cooperative Societies: Entities that receive financial assistance under the 'Dirghavadhi Krishak Punji Sahakar Yojana' for onward lending of long-term loans.
Shri Anil Baluni: Member of Parliament who raised a question in Lok Sabha regarding the 'Dirghavadhi Krishak Punji Sahakar Yojana'.
Shri Amit Shah: The Minister of Cooperation who provided the answer to the Lok Sabha question regarding the 'Dirghavadhi Krishak Punji Sahakar Yojana'.
SARFAESI Act: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, used for recovery of dues in case of default.
DRT: Debt Recovery Tribunal where cases are filed in case of default.
GOVERNMENT OF INDIA
MINISTRY OF COOPERATION
LOK SABHA
UNSTARRED QUESTION NO. 3897
ANSWERED ON 12th AUGUST, 2025
DIRGHAVADHI KRISHAK PUNJI SAHAKAR YOJANA
3897. Shri Anil Baluni :
Will the Minister of COOPERATION (सहकारिता मंत्री) be pleased to state:
(a) the manner in which NCDC addresses the risk of potential loan default by agricultural credit
cooperative societies under the “Dirghavadhi Krishak Punji Sahakar Yojana’;
(b) the details of the contingency schemes available for mitigating such risks; and
(c) the details of the funds provided under the said scheme during the last three years?
ANSWER
THE MINISTER OF COOPERATION
सहकारिता मंत्री (SHRI AMIT SHAH)
(a) & (b): National Cooperative Development Corporation (NCDC), a statutory organization
under the Ministry of Cooperation, Government of India, implements 'Dirghavadhi Krishak
Punji Sahakar Yojana' for extending long term financial assistance to Agricultural Credit
Cooperatives towards their onward lending of long-term loans/advances for
activities/commodities/services under the purview of NCDC.
NCDC has its own robust funding guidelines for sanctioning of financial assistance to eligible
borrowers under the scheme for viable projects against the cushion of adequate security as
prescribed. A robust system of project appraisal and monitoring is in place as stipulated in the
Direct Funding Guidelines wherein the financial viability and technical feasibility of the project
is assiduously adjudged.
Each proposal is subjected to a comprehensive evaluation based on following parameters:
a. technical feasibility & financial viability of project through various methods like IRR,
NPV, DSCR, Interest coverage ratio, FACR, projected cash-flows etc.,
b. financial soundness of the cooperative,
c. past financial & operational performance of the cooperative,
d. professional expertise of the management/ employees of the cooperative,e. experience of the management of the cooperative in handling similar projects,
f. past loan repayment performance of the cooperative,
g. capacity of the cooperative to raise its share of project cost,
h. availability of adequate security for the loans sought from NCDC
This enables a rigorous assessment of the project's techno-economic viability and the
credibility of the borrower cooperative, ensuring prudent funding in alignment with NCDC’s
mandate for the integrated development of the cooperative sector.
Further, NCDC through its Head Office, 19 Regional Offices and 9 sub offices actively
monitors the projects periodically (or as required) and ensures judicious funds’ utilization.
Field visits/inspections are done on quarterly basis for proper monitoring of loan disbursement
for the intended objectives. The beneficiary cooperatives are also required to submit periodical
progress report which ensures that the funds are being used for purpose for which they were
intended.
NCDC has dedicated department for recovery purpose. Process adopted for recovery are well
documented. Notices as per repayment schedule are sent well in advance followed with timely
reminders. In case of default, suitable action is initiated under SARFAESI Act and if required,
cases are filed in DRT.
(c): The details of the loans disbursed by NCDC during the last 3 years under Dirghavadhi
Krishak Punji Sahakar Yojana are as under: -
Rs.( in crore)
Financial Year Sanctioned Released
2022-23 400.00 0.00
2023-24 0.00 60.00
2024-25 5000.00 2077.00
Grand Total 5400.00 2137.00