3 weeks ago
Lok Sabha passes NCDC Amendment Bill 2026 to boost cooperatives
In India, there is an organization called the NCDC that helps cooperatives, which are groups of people who work together, like farmers who team up to sell or process their crops.
The rules for how the NCDC gives money were made back in 1962, and the government thought they were too slow.
So it brought a new bill, which is a proposed new set of rules, to the Lok Sabha, a part of India's Parliament.
The Lok Sabha agreed to the new rules the next day.
The new rules let the NCDC give loans and grants directly to cooperatives and to other groups that help cooperatives, like ones providing technology or marketing.
Before, the money had to travel through state governments first, which took a long time.
Now help can arrive faster.
The NCDC can also, with the government's permission, buy part of a cooperative's company.
The rules also cover more kinds of food and goods.
Cooperatives stay the main people who benefit from all this help.
The National Co-operative Development Corporation (Amendment) Bill 2026 was introduced in the Lok Sabha on Monday and passed on Tuesday without a debate amid opposition ruckus.
It seeks to broaden the NCDC's mandate from financing programmes through cooperative societies to financing programmes for cooperative development.
If enacted, the NCDC could provide loans and grants directly to cooperative societies and other organisations engaged in cooperative development.
With the Central government's approval, the NCDC could invest in the share capital of cooperative organizations.
The bill expands the definition of foodstuffs to include processed food, removes geographical restrictions on industrial goods, and empowers the NCDC to share credit information with the Reserve Bank of India.
- Who
- Minister of State for Cooperation Murlidhar Mohol moved the bill on behalf of Home and Cooperation Minister Amit Shah in the Lok Sabha.
- What
- The National Co-operative Development Corporation (Amendment) Bill 2026, which broadens the NCDC's mandate to finance cooperative societies and other organisations working for cooperative development directly.
- Where
- Lok Sabha, New Delhi, India.
- When
- Introduced in the Lok Sabha on Monday and passed on Tuesday.
- Why
- To make funding for cooperatives faster and more flexible, reducing procedural delays caused by routing assistance through state governments or cooperative societies.
Key facts
- Bill
- National Co-operative Development Corporation (Amendment) Bill 2026
- Act being amended
- National Cooperative Development Corporation Act, 1962
- Status
- Introduced Monday; passed by Lok Sabha on Tuesday without debate
- Moved by
- Minister of State for Cooperation Murlidhar Mohol
- On behalf of
- Home and Cooperation Minister Amit Shah
- Previous amendments
- 1973, 1974 and 2002
- Key proposed change
- Broaden NCDC mandate from financing through cooperative societies to financing programmes for cooperative development
- New funding powers
- Direct loans and grants to cooperatives and other organisations; share capital investment with Central government approval
Quotes
Statement of Objects and Reasons of the Bill
Bill’s explanatory text
“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.”
deccanchronicle.com
“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.”
deccanchronicle.com
Sources
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