NCDC Launches Dirghavadhi Krishak Punji Sahakar Yojana

The National Cooperative Development Corporation has launched the Dirghavadhi Krishak Punji Sahakar Yojana to improve long-term and uninterrupted credit flow for capital formation in agriculture and allied sectors. The scheme is designed for eligible cooperative societies and is backed by NCDC’s appraisal, monitoring, and recovery framework. It aims to strengthen cooperative-led investment in farm infrastructure, processing, and related activities.

Scheme Objective

The scheme focuses on providing long-term institutional credit to cooperatives engaged in agriculture and allied sectors. It seeks to support capital formation rather than short-term working capital needs. The initiative is aligned with the broader goal of strengthening the cooperative credit ecosystem and improving rural economic activity.

Eligibility Criteria

To qualify under the scheme, a cooperative must meet specific financial and operational standards:

• The cooperative must have been in operation for at least three years.
• It must have a positive net worth.
• Its net worth must be at least equal to 100% of paid-up share capital.
• There should be no erosion in paid-up share capital.
• The cooperative should not have suffered any cash loss in the last three years.
• It must have recorded net profit in at least two of the previous three years.

Appraisal and Monitoring Framework

NCDC assesses the financial health, performance, and credibility of the borrowing cooperative before sanctioning loans. Credit is extended against adequate security and after standard appraisal and due diligence. The corporation monitors implementation through its 19 regional offices and 9 sub offices. Periodic field visits and inspections are carried out to ensure proper utilisation and timely repayment.

Recovery Mechanism and Legal Action

In case of default, NCDC follows a structured recovery process under applicable law. A legal recall notice is first issued to demand repayment of the outstanding amount with interest and charges. If post-dated cheques are dishonoured, action under Section 138 of the Negotiable Instruments Act, 1881 may be initiated. Once an account turns NPA, proceedings under the SARFAESI Act, 2002 begin through a demand notice under Section 13(2). If the borrower does not comply, measures under Section 13(4) may follow. NCDC may also file original applications before the Debt Recovery Tribunal under the Recovery of Debts and Bankruptcy Act, 1993.