India's Parliament Passes Bill to Revise Co-operative Development Act

The Rajya Sabha, India's Upper House of Parliament, has passed the National Co-operative Development Corporation (Amendment) Bill, 2026, via voice vote. This comes after the Lok Sabha, the Lower House, approved the bill a day earlier. The bill was met with a walkout by opposition parties as discussions began.

The legislation amends the National Co-operative Development Corporation Act of 1962, expanding the Corporation's role to enable it to provide loans and grants directly to not only cooperative societies but also other organisations involved in cooperative development. This move is contingent on funds being used ultimately for the benefit of cooperatives.

According to a statement accompanying the bill, the changes are necessary due to the cooperative sector's significant expansion and diversification over recent years. Currently, various statutory bodies and state government agencies provide crucial support services like infrastructure, technology, and financial assistance to cooperatives. However, many of these agencies are not registered as cooperative societies, making it difficult for the National Co-operative Development Corporation to extend funding to them directly under the current legal framework.

This limitation has often resulted in procedural delays, restricting the uptake of proposals as they must be routed through state governments or cooperative societies.

During the parliamentary debate, Murlidhar Mohol, the Minister of State for Cooperation, clarified that the proposed amendment does not involve any additional financial assistance from the government. He stated, 'This bill does not have any provision for additional budgetary financial assistance by the government. The proposed amendment only expands the mandate and financial scope of NCDC.'

In addition to widening funding opportunities, the bill also aims to redefine foodstuffs to incorporate newly classified food items, eliminate geographical restrictions on financing industrial products, and update outdated statutory references. It further empowers the Corporation to collect and share credit information with banks and financial institutions and allows it to acquire equity in entities involved in cooperative development, pending approval from the Centre.

The bill reflects the Indian government's continuing efforts to support and expand the cooperative sector, which plays a vital role in various economic activities across the country.

This legislative change is expected to foster greater efficiency and effectiveness in the cooperative development landscape.