Amit Shah to Introduce Bills for Kerala Name Change and NCDC Powers

Union Home Minister Amit Shah is expected to present two important bills in the Lok Sabha today, aimed at changing the name of Kerala to 'Keralam' and enhancing the financing abilities of the National Co-operative Development Corporation (NCDC). This session occurs amid ongoing disruptions in both Houses of Parliament, with four days left in the monsoon session.

The first of the bills, titled the Kerala (Alteration of Name) Bill, 2026, intends to modify the First Schedule of the Constitution to reflect the proposed name change. This initiative follows a resolution passed by the Kerala assembly, which has been approved by the Union Cabinet.

The second piece of legislation, the National Co-operative Development Corporation (Amendment) Bill, 2026, seeks to broaden the NCDC's mandate. Historically, the corporation has primarily financed programmes through cooperative societies. However, the new draft bill aims to allow it to fund a more diverse range of organisations involved in cooperative development.

The government has argued that the cooperative sector has experienced significant expansion and diversification in recent years. The bill's accompanying statement notes that various statutory bodies, state government agencies, and specialised organisations now offer critical services, including infrastructure, technology, processing, marketing, and financial support to cooperatives. However, due to current laws, many of these organisations are not registered as cooperative societies, which has resulted in delays when proposals are submitted through state governments.

Therefore, the proposed changes would enable the NCDC to provide loans and grants directly to cooperative societies as well as to any entity engaged in cooperative development, subject to prior approval from the Centre. Questions have arisen regarding which organisations could be eligible for funding under these new provisions. L Viswanathan, a senior partner at Cyril Amarchand Mangaldas, clarified that the eligibility will depend on whether these entities are genuinely engaged in cooperative development.

In addition to widening the funding scope, the bill aims to alter the definition of foodstuffs to include more items as notified by the Centre. It will also eliminate geographical restrictions on financing industrial goods, update outdated statutory references, enable the corporation to collect and share credit information with financial institutions, and grant related powers for enhancing its operational effectiveness.

Moreover, the NCDC will be authorised to acquire equity in agencies involved in cooperative development, again subject to prior approval from the Centre. On concerns about oversight, Viswanathan reassured that strict limits on fund usage are outlined within the law, which mandates audits and accountability for the NCDC's financial operations.

As the proposals are tabled, the Opposition, particularly from the Congress party, is intensifying its demand for a statement from Amit Shah regarding alleged police misconduct in response to student protests that took place on July 20. Congress leader Jairam Ramesh drew parallels between this situation and earlier demands for accountability following a security breach incident in December 2023. He highlighted the importance of not allowing history to repeat itself with regard to government responses to public dissent.