New Delhi, Aug 10: A bill to broaden the mandate of the National Cooperative Development Corporation (NCDC) to give loans and grants directly to cooperative societies was introduced in the Lok Sabha on Monday.
NCDC, a statutory organisation under the Ministry of Cooperation, was established in 1963 under the National Cooperative Development Corporation Act, 1962.
Minister of State for Cooperation Murlidhar Mohol introduced the National Cooperative Development Corporation (Amendment) Bill, 2026.
NCDC’s main activities include planning, promoting, and financing programs 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
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,” as per the Statement of Objects and Reasons of the bill.
With the central government’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.
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, the statement said.
“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,” it added.
The National Cooperative Development Corporation Act, 1962 was amended in 1973, 1974 and 2002. (PTI)
