National Cooperative Development Corporation (NCDC)

About:

• The National Cooperative Development Corporation (NCDC) is a statutory Corporation
• It set up under an Act of Indian Parliament on 13 March 1963.
• The objectives of NCDC are planning and promoting programmes for production, processing, marketing, storage, export and import of agricultural produce, foodstuffs, industrial goods, livestock and certain other notified commodities and services on cooperative principles and for matters concerned therewith or incidental thereto.

Functions

• Planning, promoting and financing programmes for production, processing, marketing, storage, export and import of agricultural produce, food stuffs, certain other notified commodities e.g. fertilisers, insecticides, agricultural machinery, lac, soap, kerosene oil, textile, rubber etc., supply of consumer goods and collection, processing, marketing, storage and export of minor forest produce through cooperatives, besides income generating stream of activities such as poultry, dairy, fishery, sericulture, handloom etc.
• NCDC Act has been further amended which will broad base the area of operation of the Corporation to assist different types of cooperatives and to expand its financial base. NCDC will now be able to finance projects in the rural industrial cooperative sectors and for certain notified services in rural areas like water conservation, irrigation and micro irrigation, agri-insurance, agro-credit, rural sanitation, animal health, etc.
• Loans and grants are advanced to State Governments for financing primary and secondary level cooperative societies and direct to the national level and other societies having objects extending beyond one State. Now, the Corporation can also go in for direct funding of projects under its various schemes of assistance on fulfillment of stipulated conditions.

Organisation & Management of NCDC

The Management vests in 51 member widely represented General Council to give shape to its policies and programmes and Board of Management with 12 members to cater to day-to-day activities. Besides its Head Office, NCDC functions through 18 Regional/State Directorates. The Managing Director is the Chief Executive. Various functional divisions look after the programmes. The field offices play an important role in project identification/formulation and oversee its implementation. NCDC is endowed with in-house technical and managerial capabilities in the areas of Cooperation, Organisation & Methods, Financial Management, Management Information Systems, Sugar, Oilseeds, Textiles, Fruits & Vegetables, Dairy, Poultry and Live stock, Fishery, Handlooms, Civil Engineering, Refrigeration and Preservation to help cooperatives to identify/formulate projects and successfully implement them.

The National Co-operative Development Corporation (Amendment) Bill, 2012

• The National Co-operative Development Corporation (Amendment) Bill, 2012 was introduced in the Lok Sabha on May 17, 2012 by the Minister of Agriculture and Food Processing Industries, Mr. Sharad Pawar.  The Bill was referred to the Standing Committee on Agriculture (Chairperson: Basudeb Acharia) on May 25, 2012.  The Committee has been granted an extension till the last day of the Winter Session, 2012 to submit its report.  
• The Bill amends the National Co-operative Development Corporation (NCDC) Act, 1962.  As per the Statement of Objects and Reasons, the Act establishes the NCDC for planning and promoting programmes for the production, processing, marketing, storage, export and import of agriculture produce, industrial goods and related commodities and services on co-operative principles.
• The Bill proposes to bring producer companies within the ambit of co-operative societies.  Producer companies are defined in the Companies Act, 1956.  Members and owners of a producer company comprise of persons engaged in activities relating to primary produce (agriculture, horticulture, fishing etc.) such as small and marginal farmers, horticulturists and artisans.  Currently, these companies lack institutional support and credit, which inhibits their expansion and growth.  The proposed amendment seeks to provide an additional source of credit to the producer companies through the Corporation.
• The Act empowers the Corporation to advance loans or grant subsidies to state governments so they can finance co-operative societies, and to national level and multi-state co-operative societies.  The Bill enables the Corporation to provide loans and grants to producer companies and co-operative societies engaged in notified services and commodities.
• Under the Act, the Corporation maintains a Fund for advancing loans and grants to state governments for financing co-operative societies.  The Bill amends the Act to allow the central government to notify the nature of these loans and grants. 

Schemes under NCDC:

• Ayushman Sahakar
• Sahakar Mitra Scheme
• Yuba Sahkar
• Scheme for extending short term loan Agricultural Credit Cooperatives towards working capital
• Financial assistance to Cooperatives for Hospital, Healthcare and Education
• Financial assistance to Cooperatives for Tourism, Hospitality, Transport, Electricity and Rural Housing Programmes