The National Dairy Development Board Act, 1987

Summary of the National Dairy Development Board Act, 1987
Objective:
• Declare the National Dairy Development Board (NDDB) as an institution of national importance.
• Incorporate NDDB and vest the undertakings of the Indian Dairy Corporation (IDC) in NDDB, leading to IDC's dissolution.
Key Provisions:
1. Incorporation & Declaration:
• NDDB is constituted as a body corporate with perpetual succession and a common seal.
• Declared an institution of national importance.
2. Vesting and Dissolution: - All undertakings of the Indian Dairy Corporation vest in NDDB.
• Indian Dairy Corporation is dissolved.
3. Effect of Incorporation: - Assets, liabilities, rights, and obligations of the society (original NDDB form) and IDC transfer to the new NDDB body corporate.
• Subsidiaries of the society and IDC become subsidiaries of NDDB.
4. Powers and Functions of NDDB: - Broad Mandate: Promote, plan, and organize dairy and allied industries development nationwide.
• Specific Powers:
• Adopt co-operative strategies.
• Facilitate research, training, and technological know-how.
• Design, develop, and finance dairy industries.
• Provide consultancy, managerial services, and project execution.
• Regulate dairy and allied industries (if directed by the Central Government).
• Engage in import/export, buffer stock management, and export promotion.
• Acquire, hold, dispose of property; borrow and lend money.
• Participate in other organisations with Central Government approval.
5. Governance and Protection: - Protection: Acts done in good faith are protected from legal proceedings.
• Indemnity: Directors are indemnified against losses except for wilful acts/default.
• Secrecy: Obligations regarding fidelity and secrecy for board members and employees.
6. Miscellaneous Provisions: - Liquidation: Only possible by order of the Central Government.
• Delegation of Powers: Central Government can delegate activities related to dairy development to NDDB.
• Transitional Provisions: For auditors, Chairman, Board, and ongoing management/assistance activities.
• Mother Dairy: Becomes a subsidiary unit of NDDB, retaining its separate character unless decided otherwise.
• Formation of Companies: NDDB can form companies with previous Central Government approval.
• Returns and Reports: To be furnished to the Central Government.
• Overriding Effect: Act's provisions override other inconsistent laws.
• Regulatory Powers: NDDB can make regulations and schemes as necessary.
7. Financial and Administrative: - Borrowing Powers: Detailed in Section 23 (context not provided).
• Grants and Loans: From the Central Government (Sections 24, 25, context not provided).
• National Dairy Development Board Fund: Established (Section 26, context not provided).
• Accounting, Audit, and Reporting: Mandatory with specifications

Effective Date:
• Came into force on 12th October, 1987, as notified by the Central Government.

Legislative History:

The National Dairy Development Board Act, 1987

Act Title - The National Dairy Development Board Act, 1987

Act Number/Year - 37 of 1987

Act ID (India Code) - 198737

Presidential Assent Date - September 15, 1987

Enforcement Date - October 12, 1987

Nodal Ministry - Ministry of Agriculture and Farmers Welfare

Precedent & Historical Rationale

From Registered Society to National Institution:

The National Dairy Development Board (NDDB) was originally established and registered as a society under the Societies Registration Act, 1860, in 1965 at Anand, Gujarat, largely inspired by the vision of Verghese Kurien to replicate the "Anand pattern" of dairy cooperatives across India. Over the next two decades, NDDB spearheaded monumental national initiatives—most notably Operation Flood (the world's largest agricultural dairy development program)—which transformed India from a milk-deficient nation into one of the world's largest milk producers.

Integration with the Indian Dairy Corporation and Statutory Autonomy:

Prior to 1987, the commercial and international food-aid implementation aspects of dairy development were handled alongside the Indian Dairy Corporation (IDC), a company registered under the Companies Act, 1956. To streamline operations, eliminate administrative duality, provide absolute structural flexibility, and grant permanent statutory standing, Parliament enacted the 1987 Act. The statute formally dissolved the IDC, merged its undertakings into NDDB, and elevated NDDB to a body corporate declared explicitly as an institution of national importance.

Parliamentary Trajectory & Enactment

Formulation:

Drafted by the Ministry of Agriculture to provide statutory incorporation to NDDB, vesting all assets and liabilities of the erstwhile Indian Dairy Corporation into the board, and empowering it with nationwide authority to promote dairy, oilseeds, and other allied agricultural cooperatives.

Parliamentary Passage:

Introduced, debated, and passed by both Houses of Parliament (Lok Sabha and Rajya Sabha) during the monsoon session of 1987.

Presidential Assent: Received Presidential Assent on September 15, 1987.

Enforcement: Enforced on October 12, 1987.

Source: Official Records of Parliament, India Code, and Ministry of Fisheries, Animal Husbandry and Dairying.