Now Reading: Parliament passes NCDC Amendment Bill to widen funding
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Parliament passes NCDC Amendment Bill to widen funding
The Rajya Sabha passed the National Co-operative Development Corporation (Amendment) Bill, 2026 by voice vote on Wednesday, a day after the Lok Sabha approved it amid opposition protests. The bill allows NCDC…
The Story in Brief
The Rajya Sabha passed the National Co-operative Development Corporation (Amendment) Bill, 2026 by voice vote on Wednesday, a day after the Lok Sabha approved it amid opposition protests. The bill allows NCDC to give loans and grants directly to any entity engaged in cooperative development, not just cooperative societies, and to acquire equity in such entities with government approval.
Minister of State for Cooperation Murlidhar Mohol said the bill needs no additional budget outlay. The changes also expand the definition of 'foodstuffs', remove geographical limits on financing industrial goods, and let NCDC share credit information with banks. Opposition parties walked out in both Houses, with the Lok Sabha protest linked to a separate police action against students on July 20.
The Indian Opinion
Both sides have played to the gallery. The Opposition walked out claiming the bill was passed without scrutiny over a separate police-protest row. But the government's move to let NCDC fund cooperatives directly, not just via societies, is a sensible reform to cut red tape. Still, one must watch whether this helps small village cooperatives or merely opens the door for larger players. The real test: Will NCDC's direct lending actually speed up loans for grassroots producers, or will new eligibility criteria leave them out again?
Sources (2): thehindubusinessline.com, hindustantimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
