Dirghavadhi Krishak Punji Sahakar Yojana launched to provide long-term credit to cooperatives

Key facts

• National Cooperative Development Corporation (NCDC) launched the Dirghavadhi Krishak Punji Sahakar Yojana under the Ministry of Cooperation.
• The scheme provides long-term financial assistance to cooperatives engaged in agriculture and allied sectors.
• Eligible cooperatives must have minimum 3 years of operational history, positive net worth, no erosion in paid-up share capital, no cash losses in the last three years, and recorded net profit in at least two of the last three years.
• Loans are sanctioned against adequate security after appraisal of financial health, operational performance and creditworthiness.
• Recovery in case of default involves recall notice, action under Negotiable Instruments Act 1881 Section 138, proceedings under SARFAESI Act 2002 Sections 13(2) and 13(4), and cases filed in Debt Recovery Tribunal under Recovery of Debts and Bankruptcy Act 1993.