Parliament Approves Bill to Enhance Cooperative Sector Through NCDC Amendments
India's Parliament has passed a bill amending the National Cooperative Development Corporation Act, broadening the NCDC's mandate. The amendments aim to empower the NCDC to provide direct financial assistance to cooperative societies and related entities.
Key takeaways
- Parliament has passed a bill to amend the National Cooperative Development Corporation Act.
- The amendments empower the NCDC to directly provide loans and grants to cooperative societies.
- The legislation aims to modernize and strengthen the cooperative ecosystem without additional government budgetary allocation.
- Geographical restrictions on industrial goods assistance have been removed, and the definition of 'foodstuffs' expanded.
The Indian Parliament has passed a bill to amend the National Cooperative Development Corporation (NCDC) Act, expanding the corporation's operational scope to directly support cooperative societies across the country. The legislation, which received approval from the Rajya Sabha on Wednesday, August 12, 2026, and the Lok Sabha on Tuesday, August 11, 2026, aims to modernize and strengthen the cooperative ecosystem.
Minister of State for Cooperation Murlidhar Mohol stated that the amendments do not involve additional government budgetary funding but rather enhance the NCDC's mandate and financial capabilities. The bill seeks to enable the NCDC to offer loans and grants directly to cooperative societies and other entities involved in cooperative development, provided the funds are used for cooperative purposes and subject to required security.
The amendments are designed to streamline the process of assistance, which previously faced procedural delays due to required routing through State governments or cooperative societies. This change will allow the NCDC to finance entities engaged in providing infrastructure, technology, processing, marketing, and financial services to cooperatives, even if these entities are not registered as cooperative societies themselves.
Further changes include broadening the definition of 'foodstuffs' to encompass any food items notified by the central government and removing geographical restrictions on industrial goods assistance. The bill also grants the NCDC additional powers to effectively carry out its functions, aiming to provide greater flexibility and legal clarity.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
Related stories
Rajya Sabha Approves Bill to Rename Kerala to Keralam
Government Refers FCRA Bill to Parliamentary Panel After Minority Appeals
Drone Search Locates Woman Lost Overnight in Nellore Forest
