New Delhi, 11 August (H.S.): The Lok Sabha on Tuesday passed, amid din and Opposition protests, a bill seeking to expand the mandate of the National Cooperative Development Corporation (NCDC) to enable it to provide loans and grants directly to eligible institutions associated with the cooperative sector.

Minister of State for Cooperation Murlidhar Mohol moved the National Cooperative Development Corporation (Amendment) Bill, 2026, for consideration and passage in the House. The NCDC is a statutory organisation under the Ministry of Cooperation. It was established in 1963 under the National Cooperative Development Corporation Act, 1962.

Explaining the provisions of the bill, Mohol said it seeks to enable the NCDC to provide direct loans and grants, subject to necessary safeguards, to eligible institutions involved in the development of cooperative societies and the cooperative sector. Cooperative organisations engaged in food processing, cottage industries, handicrafts and other industrial activities would also become eligible for financial assistance.

The proposed legislation also provides for the NCDC to participate in the share capital of eligible institutions with the prior approval of the Central government. The bill does not envisage any additional budgetary support from the government and is aimed at widening the existing statutory and financial scope of the NCDC.

Mohol said the existing provisions prevented the NCDC from providing direct financial assistance to institutions working for the development of the cooperative sector but not registered as cooperative societies. As a result, several proposals had to be routed through state governments or cooperative societies, leading to delays and limiting the reach of financial assistance.

The proposed NCDC Amendment Bill, 2026 seeks to address these limitations by facilitating more direct and efficient financial support to eligible institutions.

Mohol further said the bill proposes to empower the NCDC under Section 13A to exchange credit-related information with the Reserve Bank of India, banking companies and notified financial institutions. It also seeks to remove obsolete provisions and incorporate references consistent with the prevailing legal framework.

Highlighting the government’s focus on the cooperative sector, the minister said NCDC disbursements had increased nearly tenfold over the past 12 years. He said approximately Rs 45,000 crore had been disbursed through the NCDC between 1963 and 2014.

The country currently has around eight lakh cooperative societies operating across 30 different sectors, with approximately 30 crore members.

The NCDC was established under the 1962 Act to provide financial assistance for the organised and progressive development of the cooperative sector. Initially, its activities were largely confined to agricultural produce, food products, industrial production, livestock and related services through cooperative societies.

Over the years, its mandate was expanded to cover schemes relating to processing, marketing, storage, exports and imports. In recent years, the NCDC’s role has also expanded into infrastructure, technology and financial services.

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Hindusthan Samachar / Jun Sarkar