Textile industry in India covers a large gamut of activities ranging from production of its own raw material namely Cotton, Jute, Silk and Wool, to providing to consumers high value added products. It plays a significant role in the economy for its contribution to the Gross Domestic Product, employment generation and earning of foreign exchange.

NCDC has been promoting cooperative textile programmes by providing financial assistance for the development of Cotton Ginning and Spinning, Weaving, Coir, Jute and Sericulture activities..

Eligible Cooperative Societies:

NCDC provides assistance to primary, district and state level cooperatives, either directly or through State Governments.

Activities Assisted:

Ginning and Pressing


Establishment of new modern Ganning and Pressing Units (under CSISAC Scheme*)-

Modernization/Expansion of existing units (under CSISAC Scheme*)-

Working capital assistance to existing units in the form of loan (under Corporation Sponsored Scheme)


Establishment of new units (under Corporation Scheme)-

Modernization/Expansion of existing units (under CSISAC Scheme*) -

Rehabilitation of sick units (under CSISAC Scheme*)-

Margin money assistance for Cooperative spinning mills and state cooperative cotton federation (under CSISAC Scheme*)-

Working capital assistance to existing unit in the form of loan (under Corporation Sponsored Scheme)

Weaving(except handloom),Processing and Garmenting (under Corporation Sponsored Scheme)-


Margin money/share capital assistance (under Corporation Sponsored Scheme)-

Construction of workshed and purchase of looms & its accessories, construction/renovation/modernization of showroom / godown / Marketing complex/Cooperative textile estate (under Corporation Sponsored Scheme)

Establishment of pre/post looms procesing/garmenting/knitting units (under Corporation Sponsored Scheme)-

Working capital assistance to existing units in the form of loan subject to techno-economic merit of the units (under Corporation Sponsored Scheme)

Handloom(weaker section)

Margin money for business development (under CSISAC Scheme*)-

Construction of work shed and purchase of looms and its accessories, construction / renovation, modernization of showroom/ godown/ ware house etc(under CSISAC Scheme*)-

Working capital assistance to existing units in the form of loan (under CSISAC Sponsored Scheme*)

Coir, Jute & Sericulture (weaker sections)


Margin Money for business development (under CSISAC Scheme*)

Creation of processing infrastructure facilities, Construction / renovation / modernization of showroom/ godown/ware house etc (under CSISAC Scheme*)

Working capital assistance to existing units in the form of loan (under CSISAC Scheme*)

Mode of Funding

Financial assistance is provided through the State Govt. or directly to the eligible cooperatives.

Quantum of Assistance and Pattern of Assistance

Varies from activity to activity and upto 90-95% of the total cost for the most of the activities. However, in case of strengthening of share capital base/margin money/working capital assistance, the quantum of assistance can be upto 100%.

For detailed pattern of assistance please Click here [PDF, English, 41KB] at the link provided.

Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme

To encourage newly formed cooperatives take advantage of innovative ventures, especially by societies with new/innovative idea, NCDC has introduced a new scheme titled, “Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme” linked to a Cooperative Startup and Innovation Fund created by NCDC. Please Click here [PDF, English, 2.3MB] for details of the Scheme.

Norms for direct funding

Cooperatives operating for minimum three years & broadly fulfilling following criteria are eligible:

  • Net worth should be positive
  • There should be no erosion in share capital.
  • Cash profit in last three years and net profit in two years.
  • Should be in a position to provide 1.25 to 1.5 times security.

For detailed norms of Direct Funding please Click here  [PDF, English, 47KB] at the link provided


NCDC is one of the authorised Nodal Agency to provide subsidy to eligible cooperative textile units under Technology Upgradation Fund Scheme (TUFS) of Ministry of Textiles. The relevant TUF scheme details can be referred in website of the Office of the Textile Commissioner(


NCDC facilitates the eligible assisted cooperative textile units for availing eligible subsidies provided by the respective State Govts under its various schemes wherever applicable.

Common Loan Application Form for availing assistance under the scheme of NCDC can be downloaded from NCDC’s website.

For further details, please contact or write to:

Textile Division

National Cooperative Development Corporation,
4, Siri Institutional Area, Hauz Khas,
New Delhi – 110 016
PABX No.: +91-011-26569246
Fax: +91-011-26962370, 26516032

2. Regional Directorates of NCDC:

Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram