NCDC Amendment Bill 2026: Amit Shah to move legislation to widen funding avenues for co-operatives

Union Home Minister and Minister of Cooperation Amit Shah is set to move for leave to introduce the National Co-operative Development Corporation (Amendment) Bill, 2026, in the Lok Sabha on Monday, as the Centre seeks to widen the statutory framework governing financial support to India's co-operative sector.

The proposed legislation seeks to amend the National Co-operative Development Corporation (NCDC) Act, 1962, including provisions relating to the corporation's functions, financial assistance and participation in the share capital of co-operative societies and entities engaged in co-operative development.

The move comes as the government continues to strengthen the co-operative sector as part of its broader rural and economic development agenda.

It may be recalled that NCDC was established in 1963 as a statutory corporation to plan, promote and finance programmes through co-operative societies. Its mandate covers production, processing, marketing, storage and export-import of agricultural produce, foodstuffs and notified commodities, besides minor forest produce and notified services.

Bill seeks wider financial flexibility

The proposed amendments seek to give NCDC greater flexibility in providing financial assistance directly to co-operative societies and other entities engaged in co-operative development. The changes are intended to provide "greater flexibility and legal clarity" in the corporation's operations and enable financial support to reach eligible institutions more efficiently.

The proposed framework would allow NCDC to provide loans and grants directly to "co-operative societies or any entity engaged in co-operative development", provided the funds are used for co-operative purposes.

The Bill also proposes to empower NCDC to participate in the share capital of co-operative societies or other entities engaged in co-operative development, subject to Central Government approval. This could provide another avenue for strengthening the capital base of co-operative institutions.

Government's wider co-operative push

The proposed changes come against the backdrop of the Centre's broader push to strengthen India's co-operative ecosystem. The Ministry of Cooperation was created as a separate ministry in July 2021, with the government subsequently introducing measures aimed at expanding the reach and economic role of co-operative institutions.

The government has sought to position co-operatives as vehicles for improving access to markets, finance, technology and infrastructure, particularly for farmers and rural communities. NCDC has a central role in this effort as the statutory institution responsible for financing and promoting co-operative programmes.

The Bill also proposes changes to the definition of "foodstuffs" and provisions concerning industrial goods, potentially widening the scope of activities eligible for NCDC assistance. The proposed amendments, if enacted, would expand the institutional and financial framework available to India's co-operative sector.