LS Passes Bill to Amend NCDC Act, Boost Cooperative Sector Amid Din

New Delhi: The Lok Sabha on Tuesday passed a Bill to broaden the mandate of the National Cooperative Development Corporation (NCDC) to give loans and grants directly to cooperative societies without a debate.

Minister of State for Cooperation, Murlidhar Mohol, moved the National Co-operative Development Corporation (Amendment) Bill, 2026, which was passed without a debate amid continued ruckus by the opposition seeking the presence of Home Minister Amit Shah, who also holds the cooperation portfolio, over the police crackdown on students during a protest march to Parliament on July 20.

The NCDC, a statutory organisation under the Ministry of Cooperation, was established in 1963 under the National Cooperative Development Corporation Act, 1962.

Its main activities include planning, promoting and financing programmes for the production, processing, marketing, storage and export-import of agricultural produce, foodstuffs, and other notified commodities.

"It is proposed to enable the corporation to provide loans and grants directly to the cooperative societies or any entity engaged in cooperative development to the extent such funds are used for cooperative societies, subject to furnishing security as may be required by the corporation," the statement of objects and reasons of the Bill said.

With the Centre's approval, the corporation will be allowed to participate in the share capital of any cooperatives or any entity engaged in cooperative development.

The Bill seeks to widen the institutional channels through which assistance may reach and strengthen the cooperative sector while cooperative societies will continue to remain the primary beneficiaries.

According to the statement, statutory bodies, state government agencies and other specialised entities are increasingly engaged in providing infrastructure, technology, processing, marketing, financial and other services for the development of cooperatives.

"Since such entities may not be registered as cooperative societies, the corporation is presently unable to finance them directly, even where their activities are intended to benefit the cooperative sector.

"Consequently, such proposals are required to be routed through state governments or co-operative societies, resulting in procedural delays and limited uptake," the statement said.

Among other changes, the Bill proposes to expand the definition of 'foodstuffs' to include any other food items notified by the Centre.

The geographical restriction applicable to industrial goods is proposed to be removed. This will enable assistance for such activities irrespective of their location.

It also proposes additional powers to the NCDC that may be necessary for effectively discharging its functions.

Besides providing greater flexibility and legal clarity to the NCDC, facilitating timely and direct financial assistance for co-operative development, the Bill seeks to empower the corporation to respond effectively to the emerging and diversified requirements of the cooperative sector.

The National Cooperative Development Corporation Act, 1962, was amended in 1973, 1974 and 2002.