Govt to Introduce Bill to Expand NCDC Powers, Give Wider Funding Access to Co-operative Sector

The government is set to introduce a bill in the Lok Sabha seeking to expand the mandate and financial powers of the National Cooperative Development Corporation (NCDC) to strengthen India’s growing co-operative sector.

The National Cooperative Development Corporation (Amendment) Act, 2026 proposes to shift NCDC’s role beyond promoting programmes through co-operative societies to supporting co-operative development more broadly.

A key provision would allow NCDC to provide loans and grants directly to co-operative societies and other entities engaged in co-operative development, provided the funds are used for co-operative purposes. The move could widen access to financial support for both existing and new co-operatives, although it does not mean every new co-operative would automatically qualify for funding.

The government says the existing framework, created under the 1962 NCDC Act, needs to be updated as the co-operative ecosystem has expanded and diversified, particularly following the creation of a separate Ministry of Cooperation in 2021.

Statutory bodies, state government agencies and specialised organisations are increasingly involved in providing infrastructure, technology, processing, marketing and financial services to co-operatives. Since many of these organisations are not registered as co-operative societies, NCDC currently faces limitations in financing them directly.

The proposed amendment seeks to address this gap by allowing NCDC to work with a wider range of entities while keeping co-operative societies as the primary beneficiaries.

The bill would also allow NCDC, with Central government approval, to participate in the share capital of co-operatives or other entities involved in co-operative development.

Other proposed changes include expanding the definition of “foodstuffs” to cover additional food items notified by the Centre and removing the geographical restriction applicable to assistance for industrial goods.

The government says the amendments would provide greater flexibility and legal clarity, enabling NCDC to respond more effectively to the changing needs of the co-operative sector and facilitate timely financial assistance.

The NCDC was established in 1963, with its governing law amended in 1973, 1974 and 2002 to expand its funding sources and activities.