The Indian Parliament has passed legislation that is set to expand the mandate and the financing remit of the National Cooperative Development Corporation (NCDC).
The National Cooperative Development Corporation (Amendment) Bill 2026 was first presented to the Lok Sabha – the lower house – on 10 August by the minister of state for cooperation, Murlidhar Mohol (pictured), and passed without debate on 11 August.
Overall, the Indian government says the bill is intended to make financial assistance more accessible and reduce delays in funding projects that support the co-operative sector.
Currently, some organisations involved in providing infrastructure, technology, processing, marketing and other services to co-ops are not themselves registered as co-operative societies – meaning the NCDC cannot finance them directly. Proposals must therefore be routed through state governments or co-operative societies.
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The bill proposes changes which would give the NCDC power to provide loans and grants directly to co-operative societies and to other organisations involved in projects where the funds are used for co-operative societies. The corporation would also be able to participate in the share capital of co-ops and other entities engaged in co-operative development, subject to approval from the central government.
Furthermore, it would give NCDC additional powers which are intended to provide greater flexibility and legal clarity as it responds to what the government describes as the “emerging and diversified requirements” of the co-operative sector. Co-operative societies would remain the primary beneficiaries of NCDC assistance under the proposed changes.
The bill also contains measures to expand the scope of NCDC’s remit to a wider range of co-operatives. For example, it aims to broaden the definition of ‘foodstuffs’ covered by NCDC’s activities, allowing more food-related co-operatives to become eligible for NCDC support.
It also proposes removing an existing geographical restriction on assistance for industrial goods, meaning support for such activities would no longer be limited according to location.
This would give NCDC greater flexibility to finance industrial co-operative projects wherever they are located, rather than being limited by outdated rules.
The legislation forms part of a wider push by the Indian government to strengthen the country’s co-operative sector. In 2022, the newly established Ministry of Cooperation was given a budget of Rs 900 crore (£88m), including funding for the digitalisation of 63,000 primary agricultural co-operatives and a nationwide co-operative development programme called Prosperity through Cooperatives.
The ministry said at the time that it would focus on transparency and modernisation as part of a new national co-operation policy.
