National Cooperative Development Corporation (Amendment) Bill, 2026 to be introduced in Lok Sabha, expanding NCDC’s mandate

The government is set to introduce the National Cooperative Development Corporation (Amendment) Bill, 2026 in the Lok Sabha on Monday, August 10, with the proposed legislation seeking to expand the mandate of NCDC and give it greater flexibility to finance the cooperative sector.According to a PTI report, the bill proposes to allow NCDC to provide loans and grants directly to cooperative societies as well as other entities involved in cooperative development, provided the funds are used for cooperative purposes.What is NCDC?The National Cooperative Development Corporation, or NCDC, is a statutory organisation under the Ministry of Cooperation. It was established in 1963 under the National Cooperative Development Corporation Act, 1962.Its existing role includes planning, promoting and financing programmes related to the production, processing, marketing, storage and export-import of agricultural produce, foodstuffs and other notified commodities, primarily through cooperative societies.The government is now looking to widen that role.What does the proposed amendment change?The key change is in the way NCDC can support the cooperative ecosystem.The existing law focuses on planning and promoting programmes through cooperative societies. The amendment proposes to broaden this to planning and promoting programmes for cooperative development.This would also allow NCDC to directly finance entities that may not themselves be registered as cooperative societies but are working to develop the sector.PTI reported that the government has cited the growing involvement of state government agencies, statutory bodies and specialised entities in areas such as infrastructure, technology, processing, marketing and financial services for cooperatives.Under the existing framework, NCDC may not be able to directly finance such entities if they are not registered as cooperatives.NCDC may also invest in cooperative entitiesThe bill also proposes to empower NCDC to participate in the share capital of cooperatives or other entities engaged in cooperative development, subject to approval from the Centre.The government has said cooperative societies will continue to be the primary beneficiaries, while the proposed changes would widen the institutional channels through which financial assistance can reach the sector.Other proposed changesThe amendment bill also seeks to expand the definition of “foodstuffs” to include other food items that may be notified by the Centre.It proposes removing the geographical restriction currently applicable to industrial goods. This would allow NCDC assistance for such activities irrespective of where they are located.The bill also seeks to give NCDC additional powers considered necessary for carrying out its functions.Why is the government proposing the changes?The government has linked the proposed changes to the expansion of the cooperative sector, particularly after the creation of the Ministry of Cooperation in June 2021.The statement of objects and reasons accompanying the bill says the cooperative sector has expanded and diversified, with a wider range of institutions now involved in its development.The proposed amendments are intended to provide NCDC with greater legal flexibility to offer timely and direct financial support and respond to the changing requirements of the cooperative sector.The NCDC Act has previously been amended in 1973, 1974 and 2002, including to diversify the corporation’s sources of funds and expand its activities, according to the bill’s statement of objects and reasons.-With PTI inputs

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