In News:

Parliament passed the NCDC (Amendment) Bill, 2026, amending the National Cooperative Development Corporation Act, 1962, to expand NCDC’s financing and functional mandate.

Key Provisions

• Direct Financial Assistance: NCDC can provide direct loans and grants to any cooperative society/entity engaged in cooperative development, subject to prescribed conditions, beyond national-level and multi-State cooperatives.
• Broader “Foodstuffs” Definition: Includes processed food and other food items notified by the Central Government, widening eligible food-related cooperatives.
• Industrial Cooperatives: Removes the requirement that eligible industrial, cottage and village cooperatives must be located in rural areas.
• Investment Powers: With prior Central Government approval, NCDC can participate in the share capital of cooperatives/entities engaged in cooperative development.
• Information Sharing: NCDC can collect/furnish credit and other information and exchange it with the Central Government, RBI, banks and notified financial institutions.

What is NCDC?

• Established: 1963 under the NCDC Act, 1962.
• Administrative Ministry: Ministry of Cooperation.
• Role: Financial and developmental support for cooperatives in agriculture, processing, storage, cold chains, marketing, dairy, livestock, fisheries, handloom and other sectors.
• NCDC disbursements increased from ?5,735 crore (2014–15) to ?95,182 crore (2024–25).

Federalism Concern

• Cooperative societies confined to one State fall under Entry 32, State List.
• Direct NCDC funding may bypass State Governments, raising concerns over State oversight, monitoring and Centre–State relations.
• Multi-State Cooperative Societies fall under the Union domain and are regulated by the MSCS Act, 2002.

Constitutional Linkages

• 97th Constitutional Amendment Act, 2011:
  • Article 19(1)(c) → right to form cooperative societies.
  • Article 43B → promotes voluntary formation, autonomous functioning, democratic control and professional management.
  • Inserted Part IXB relating to cooperative societies.
• Union of India v. Rajendra N. Shah (2021): Part IXB remains operative concerning multi-State cooperative societies.