The National Co-operative Development Corporation (Amendment) Bill, 2026, which was introduced in Lok Sabha on August 10, 2026, has been passed by Parliament. The legislation amends the National Co-operative Development Corporation Act, 1962, which establishes the National Co-operative Development Corporation (NCDC).
Expansion of the Corporation's Mandate
Under the principal Act, the Corporation plans, promotes, and finances programmes implemented through co-operative societies in specified areas, including agricultural produce, foodstuffs, minor forest produce, and other notified commodities and services. The amended law now provides that the Corporation will plan, promote, and finance programmes for 'co-operative development' in specified areas. The term 'co-operative development' is defined as providing assistance directly or through any intermediary to co-operative societies.
Broadened Definitions and Scope
The definition of 'foodstuffs' has been expanded. While the original Act included items such as eggs, milk, meat, and vegetables, the amended law now also includes: (i) processed food and other edible products, and (ii) any other food items notified by the central government.
Further, the Corporation's activities now extend to industrial goods. Previously, 'industrial goods' were defined as products of specified entities situated in rural areas, including industrial co-operatives, cottage and village industries, or allied industries. The amendment removes the requirement for such entities to be situated in rural areas, thereby broadening the scope of the Corporation's operations.
Changes to Funding and Investment Eligibility
The amended Act alters the categories of entities eligible for funding. Under the original law, the Corporation could provide funds to state governments for financing co-operative societies, or provide loans and grants directly to national-level co-operative societies or those operating in more than one state. The new provisions allow state governments to extend funding received from the Corporation to any entity engaged in co-operative development. Additionally, the Corporation may now provide loans and grants directly to any co-operative society or entity engaged in co-operative development.
Regarding investments, the Corporation may now participate in the share capital of co-operative societies operating within a single state or entities engaged in co-operative development, in addition to its existing power to invest in national-level societies. Such investments will require the prior approval of the central government.
Information Sharing Powers
The amended legislation empowers the Corporation to collect and furnish credit information or other information for the efficient discharge of its functions. This information may be exchanged with the central government, the Reserve Bank of India, banking companies, or other financial institutions notified by the central government.
