Syllabus: GS2/Governance
In News
- Recently, Parliament has passed the National Co-operative Development Corporation(NCDC) (Amendment) Bill, 2026.
Key Highlights of National Cooperative Development Corporation Bill
- Broader concept of co-operative development: NCDC would be able to arrange, promote and finance co-operative initiatives, directly or through intermediary entities, not simply co-operative societies.
- Direct loans and grants: NCDC may give direct loans and grants to cooperative societies and other qualifying bodies involved in cooperative development subject to security conditions.
- Investment in cooperatives: NCDC may, with the agreement of the Central Government, assume an interest in the share capital of cooperative societies and cooperative development agencies.
- Broader range of assistance: “Foodstuffs” shall include processed foods and other foodstuffs.
- Industrial objects would no longer be constrained by location — support would be provided regardless of location.
- References to the Multi-State Co-operative Societies Act, 1984 will be replaced by the 2002 Act.
- New incidental powers: Section 9A would be inserted to give the power to the NCDC to do anything which is necessary or incidental to the accomplishment of its functions.
- Credit information powers: Proposed Section 13A would empower the NCDC to collect or furnish credit and other information to the Central Government, RBI, banks and registered financial institutions.
- State Government funding. The NCDC will continue to finance cooperative societies through the state governments and can finance other organisations engaged in cooperative development if the monies are to eventually benefit cooperative societies.
National Cooperative Development Corporation (NCDC)
- It is a statutory organisation under the Ministry of Cooperation.
- It was established in 1963 under the National Co-operative Development Corporation Act, 1962.
- The 1962 law has been amended several times, including in 1973, 1974 and 2002, to expand NCDC’s activities and allow direct financing of eligible cooperative societies.
- Its existing role includes planning, promoting and financing programmes related to the production, processing, marketing, storage and export-import of agricultural produce, foodstuffs and other notified commodities, primarily through cooperative societies.
Source :IE
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