In a first, the National Cooperative Development Corporation (NCDC) has secured a Euro 68.87 million (Rs 600 cr) loan from Deutsche Bank for onward lending to cooperatives in the country, the agriculture ministry said on Tuesday.
An agreement in this regard inked between NCDC and Deutsche Bank, Germany's largest bank, in the presence of Union Agriculture Minister Narendra Singh Tomar here.
The minister also presided over signing of an agreement between the Indian Chamber of Commerce (ICC) and NCDC to boost farmers' linkages with markets
"This is for the first time that one of the largest European banks in the world is lending to the NCDC, thus reflecting the confidence of the global financial institution in the Indian development finance institution, particularly at a time when global economic turmoil created by the Covid-19 crisis has made lending a challenging proposition," the ministry said.
On the occasion, Tomar said Prime Minister Narendra Modi has given a new vision to India's agrarian landscape and to the economic relations with Germany.
The farmer producer organisations being set up in the country would be able to access easier credit and market through the NCDC agreements with ICC and Deutsche Bank, which will help small and marginal farmers, he said.
The NCDC is a development finance statutory institution under the Ministry of Agriculture and Farmers Welfare and has extended loans to the tune of Euro 16 billion to cooperatives of various sizes since 2014.
With zero net NPA, NCDC has pan India presence with its 18 regional directorates catering to all the states.
As per the ministry, Deutsche Bank's initiative in India is just one of the many key business interests shown by German companies in the country over the years.
Currently, more than 1,700 German companies are active in India, providing around 4 lakh direct and indirect jobs.
Parshottam Ruapala and Kailash Choudhary, ministers of state for agriculture and farmers welfare, too were present on the occasion.