Govt introduces NCDC Bill for direct co-op funding

In the Lok Sabha on Monday, the government introduced the National Cooperative Development Corporation (Amendment) Bill, 2026. This bill aims to expand the National Cooperative Development Corporation's (NCDC) mandate by allowing it to directly provide loans and grants to cooperative societies. Established in 1963 under the National Cooperative Development Corporation Act, 1962, the NCDC has been responsible for planning, promoting, and financing programs for various sectors, including agriculture, foodstuffs, and other notified commodities.

Under the proposed amendments, the NCDC will be granted the authority to participate in the share capital of cooperatives or entities involved in cooperative development, provided the corporation is assured of appropriate security. The bill seeks to enhance the institutional channels through which assistance can reach the cooperative sector, thereby strengthening the sector's growth.

The amendments also include the removal of geographical restrictions for industrial goods and the inclusion of additional food items in the definition of "foodstuffs."

Furthermore, the bill proposes additional powers to the NCDC to efficiently carry out its functions. By providing greater flexibility and legal clarity to the NCDC, the bill aims to facilitate timely and direct financial assistance for cooperative development. This, in turn, will enable the corporation to respond effectively to the evolving and diverse requirements of the cooperative sector.