The National Co-operative Development Corporation Act, 1962

Summary of the National Co-operative Development Corporation Act, 1962
Objectives of the Act
• To promote the development of the cooperative sector as an instrument of economic and rural development.
• To provide financial assistance and support for cooperative projects and programmes.
• To strengthen agricultural production, processing, storage, marketing, and other cooperative activities.
Key Provisions
• Establishment of the Corporation: The Act provides for the incorporation of the National Co-operative Development Corporation as a body corporate with perpetual succession and a common seal.
• Functions of the Corporation: The Corporation is empowered to plan, promote, finance, and implement programmes for the production, processing, storage, marketing, distribution, and export of agricultural produce and other notified cooperative activities.
• Financial Assistance: The Corporation may provide loans, grants, subsidies, guarantees, and other forms of financial assistance to cooperative societies, State Governments, and other eligible institutions in accordance with the Act.
• Management: The Act provides for the composition of the Corporation's Board of Management, including its Chairperson, Managing Director, and other members, and specifies their powers and functions.
• Funds and Accounts: The Act provides for the Corporation's capital, borrowing powers, maintenance of accounts, audit, preparation of annual reports, and submission of reports to the Central Government.
• Rule-making Power: The Central Government is empowered to make rules, and the Corporation may make regulations, consistent with the Act, for carrying out its provisions.

Legislative History:

The National Co-operative Development Corporation Act, 1962

● Act Title - The National Co-operative Development Corporation Act, 1962

● Act Number / Year - 26 of 1962

● Act ID (India Code) - 196226

● Presidential Assent Date - August 31, 1962

● Enforcement Date - March 14, 1963

● Nodal Ministry - Ministry of Agriculture and Farmers Welfare

Precedent & Historical Rationale

● Statutory Reorganization of Cooperative Infrastructure - Enacted to reconstitute and replace the earlier National Cooperative Development and Warehousing Board (established under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956) into a specialized, autonomous statutory entity focused on rural economy financing.

● Planning and Financing Countrywide Cooperative Networks - Formulated to establish the National Co-operative Development Corporation (NCDC) to plan, promote, and finance programs for the production, processing, marketing, storage, export, and import of agricultural produce and notified commodities through cooperative societies.

Parliamentary Trajectory & Enactment

● Formulation - Introduced by the Central Government to bifurcate the functions of agricultural credit/cooperation from warehousing, aligning with recommendations to streamline institutional support for rural cooperatives.

● Parliamentary Passage - Debated and passed by both Houses of Parliament (Third Lok Sabha and Rajya Sabha) during the August 1962 session.

● Presidential Assent - Received Presidential Assent on August 31, 1962.

● Enforcement - Enforced on March 14, 1963.

Source - Official Record of Parliament, India Code, and Ministry of Agriculture and Farmers Welfare .