Government to Introduce Bill Expanding NCDC's Authority in Lok Sabha

Introduction of the Bill in Lok Sabha

New Delhi, August 9 - On Monday, the government plans to present a bill in the Lok Sabha aimed at broadening the jurisdiction of the National Cooperative Development Corporation (NCDC). This legislation will empower the NCDC to provide direct loans and grants to cooperatives or any entities involved in the development of this sector.

Background of NCDC

The NCDC, which operates under the Ministry of Cooperation, is a statutory body established in 1963 under the National Cooperative Development Corporation Act of 1962. Its primary responsibilities include planning, promoting, and providing financial assistance for programs related to the production, processing, marketing, storage, and import-export of agricultural products, food items, and other notified goods.

Details of the Proposed Amendment

On Monday, the government will introduce the National Cooperative Development Corporation (Amendment) Bill, 2026 in the Lok Sabha. According to the bill distributed to the members, it proposes amendments to the original act. The objectives and reasons outlined in this new bill indicate that following the establishment of a separate Ministry of Cooperation in June 2021 and the steps taken by the central government to strengthen the cooperative framework, the role of NCDC in the development of the cooperative sector has significantly increased.

Expanded Scope of NCDC

The proposed bill aims to extend the NCDC's scope beyond merely planning and promoting programs through cooperatives. It will also encompass planning and promoting programs related to cooperative development. Furthermore, the bill includes provisions allowing the NCDC to grant direct loans and subsidies to cooperatives or any institutions associated with cooperative development, provided that these funds are utilized for cooperative purposes.