Now Reading: Govt introduces NCDC Bill for direct co-op funding
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Govt introduces NCDC Bill for direct co-op funding
The government on Monday introduced the National Cooperative Development Corporation (Amendment) Bill, 2026, in the Lok Sabha to allow the NCDC to give loans and grants directly to cooperative societies or any…
The Story in Brief
The government on Monday introduced the National Cooperative Development Corporation (Amendment) Bill, 2026, in the Lok Sabha to allow the NCDC to give loans and grants directly to cooperative societies or any entity working for cooperative development. Currently the NCDC, a statutory body under the Ministry of Cooperation, can only route funds through state governments or registered cooperative societies, causing delays. Minister of State for Cooperation Murlidhar Mohol piloted the bill. The amendment also lets the NCDC, with central approval, buy share capital of cooperatives, expands the definition of 'foodstuffs', and removes a geographical restriction on industrial goods to allow assistance anywhere.
The Indian Opinion
The bill is being sold as a cure for procedural delays that force state governments to act as middlemen. But critics will rightly ask whether bypassing states concentrates too much power in the Centre and risks politicising loans. The NCDC's expanded mandate to buy share capital of cooperatives also needs safeguards. The test will come in the first year: do direct disbursements actually reach more village-level societies faster, or do they simply shift the bottleneck? A number to watch is the time between application and sanction.
Sources (2): legal.economictimes.indiatimes.com, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
