The government is set to introduce the National Cooperative Development Corporation (Amendment) Bill, 2026 in the Lok Sabha on Monday, August 10, proposing wider powers for NCDC to finance and support cooperative development. Union Cooperation Minister Amit Shah is scheduled to introduce the Bill in the House.
The proposed legislation seeks to expand NCDC’s mandate from planning and promoting programmes through cooperative societies to planning and promoting programmes for cooperative development.
A key provision of the Bill is to allow NCDC to provide loans and grants directly to cooperative societies as well as other entities engaged in cooperative development, provided the funds are used for cooperative purposes.
The Bill also proposes greater flexibility for NCDC to support organisations involved in cooperative development, potentially widening the Corporation’s role in financing the cooperative ecosystem.
The proposed changes come against the backdrop of the expansion of the cooperative sector following the creation of the separate Ministry of Cooperation in 2021 and various initiatives undertaken by the Centre to strengthen cooperatives.
NCDC, a statutory organisation under the Ministry of Cooperation, was established in 1963 under the National Cooperative Development Corporation Act, 1962.
The Bill is among the key legislations scheduled for introduction in the Lok Sabha today on Monday.
NCDC has significantly expanded its financial support to cooperatives in recent years. It disbursed a record Rs 95,182.88 crore during 2024-25, compared with Rs 5,735.51 crore in 2014-15. During 2025-26, it had already disbursed Rs 1 lakh crore by January 15, 2026, against sanctions of Rs.1.40 lakh crore.
The Corporation has also extended financial assistance to women, SC/ST cooperatives and cooperative sugar mills, widening its developmental reach.
The Centre has further strengthened NCDC’s lending capacity by approving a Rs 2,000-crore grant-in-aid scheme for 2025-26 to 2028-29. The support is expected to enable NCDC to mobilise up to Rs 20,000 crore from the open market for financing new cooperative projects, expansion and working-capital requirements.
The proposed amendment, therefore, comes at a time when NCDC is emerging as a major financial pillar for the expanding cooperative sector.
