17 March 2026·PIB

Dirghavadhi Krishak Punji Sahakar Yojana

In this note

1. At a Glance

Long-term refinance scheme of the National Cooperative Development Corporation (NCDC) to channel credit through cooperatives for capital formation in agriculture and allied sectors [1][2].
Operates under the Ministry of Cooperation (created 2021); a tool to deepen the cooperative credit pyramid (PACS → DCCB → StCB → PCARDS) [1][2].
Relevant for UPSC under cooperative credit, agricultural finance, and Ministry of Cooperation interventions.

PIB release dated 17 March 2026 by Ministry of Cooperation reiterated the eligibility and appraisal parameters of the scheme, prompting renewed examiner interest [1].
Tied to the broader "Sahakar se Samriddhi" thrust and PACS computerisation drive of the Ministry of Cooperation [2].

Launched 2022-23 by NCDC as a dedicated long-term ("Dirghavadhi" = long-term) capital window for agricultural credit cooperatives [2].
Created against the backdrop of the Ministry of Cooperation (est. July 2021) seeking to revitalise rural credit cooperatives [2].
NCDC itself is a statutory body under the NCDC Act, 1962 [1].
As of 2024-25, Rs 5,400.76 crore sanctioned and Rs 2,137.00 crore released to 5 cooperative societies [2].

Implementing body: National Cooperative Development Corporation (NCDC) [1].
Parent ministry: Ministry of Cooperation (not Ministry of Agriculture) [1].
Statutory basis: NCDC Act, 1962 [1].
Eligible borrowers: PACS, DCCBs, StCBs, PCARDS [2].
Eligibility criteria [1]:
Cooperative in operation ≥ 3 years.
Positive net worth, no erosion in paid-up share capital (≥ 100% paid-up share capital).
No cash loss in last 3 years; net profit in at least 2 of previous 3 years.
Purpose: uninterrupted long-term credit for agriculture, allied, and non-farm sector activities (rural/semi-urban employment) [2].
Sanctioned (cumulative, 2024-25): Rs 5,400.76 cr; released: Rs 2,137.00 cr [2].

Economic — Plugs long-term capital gap in cooperative banking, traditionally dominated by short-term crop loans; aids capital formation in agri (irrigation, mechanisation, storage) [2].
Administrative — Strengthens the 3-tier short-term and 2-tier long-term cooperative credit structure; routes funds via PACS/DCCBs/StCBs/PCARDS [2].
Social — Targets rural and semi-urban employment via non-farm activity finance [2].
Governance — Strict prudential filters (3-yr operation, no capital erosion, profitability) reduce moral hazard in refinance, a recurring issue flagged in cooperative-bank failures [1].
Federal — Cooperation is a State subject (Entry 32, State List); central scheme operates via state-registered cooperatives, illustrating cooperative federalism post-97th Amendment.

17 March 2026 — PIB release reaffirms eligibility/appraisal norms [1].
2024-25 — Rs 5,400.76 cr sanctioned, Rs 2,137 cr disbursed to 5 cooperative societies [2].
Continued alignment with PACS computerisation and model bye-laws push by Ministry of Cooperation [2].

Scheme launched by NCDC, not NABARD [1].
Administrative ministry: Ministry of Cooperation (created 6 July 2021) [1].
NCDC is a statutory body under NCDC Act, 1962 [1].
"Dirghavadhi" means long-term; targets long-term loans for capital formation [2].
Eligible institutions: PACS, DCCBs, StCBs, PCARDS [2].
Minimum 3 years of operational history required [1].
Cooperative must have net profit in at least 2 of last 3 years and no cash loss in 3 years [1].
No erosion of paid-up share capital mandated [1].
Cumulative sanctions by 2024-25: Rs 5,400.76 crore; releases Rs 2,137 crore [2].
Covers agriculture, allied, AND non-farm rural/semi-urban activities [2].

GS-III — Issues related to direct and indirect farm subsidies and minimum support prices; e-technology in the aid of farmers; agriculture economics; cooperative sector.
GS-II — Government policies and interventions; statutory bodies.
Plausible question stems:
"Long-term capital formation, not short-term crop credit, is the binding constraint on Indian agriculture. Discuss in light of recent NCDC schemes."
"Examine the role of the Ministry of Cooperation in revitalising primary agricultural credit societies."
"Evaluate the prudential safeguards built into NCDC's refinance windows for cooperatives."

NCDC Act, 1962 & NCDC structure — parent statute of the scheme.
Ministry of Cooperation (2021) — institutional context.
Yuva Sahakar, Ayushman Sahakar, Nandini Sahakar, Sahakar Mitra — sister NCDC schemes.
PACS computerisation project — flagship cooperative-credit reform.
97th Constitutional Amendment Act, 2011 & Part IXB — cooperatives as fundamental right (Art 19(1)(c)).
NABARD long-term refinance — comparator institution.
Vaidyanathan Committee on cooperative credit revival.
RBI regulation of cooperative banks (Banking Regulation (Amdt) Act, 2020).

Misattributing the scheme to NABARD or Ministry of Agriculture — it is NCDC/Ministry of Cooperation [1].
Confusing with Yuva Sahakar (young cooperatives) or Ayushman Sahakar (healthcare infra) — different NCDC windows.
Assuming PACS-only eligibility — it covers PACS, DCCBs, StCBs, PCARDS [2].
Treating NCDC as a non-statutory PSU — it is statutory under the NCDC Act, 1962.
Forgetting that cooperation is a State subject; central role is facilitative.