The National Co-operative Development and Warehousing Board and the Central Warehousing Corporation were set up as two inter-dependent bodies under the Agricultuntl Produce (Development and Warehousing) Corporations Act, 1956. the former being in over-all charge of all aspects of development (including warehousing) of agricultural produce on co-operative principles. Both the bodies were under the administrative control of the Ministry of Food and Agriculture. Subsequently, there has been it re-allocation of business by which the administrative control of the National Co-operative Development and Warehousing Board has been transferred to the Ministry of Community Development and co-operation while the administrative control of the Central Warehousing Corporation continues to he in the Ministry of Food and Agriculture. The two bodies are thus under the administrative control of two different Ministries. In the altered situation and in the interest of the better functioning of the two bodies and for administrative convenience, it is considered that the two bodies should function independently under separate enactments. The present Bill accordingly provides for the establishment of the National Co-operative Development Corporation in the place of the existing National Co-operative Development and Warehousing Board.

The new Corporation will continue to perform more or less the same functions as the existing Board, but thee Corporation shall cease to be a shareholder in the Central Warehousing Corporation and all shares held by the existing Board in the Central Warehousing Corporation and all liabilities as to the payment of unpaid calls on such shares shall stand transferred to the Central Government; the Warehousing Fund which is now administered by the Board will stand transferred to and he maintained by the Central Warehousing Corporation.

Opportunity has been taken to incorporate some minor changes in the constitution of the Corporation and also to empower it to appoint Committees for general or special purposes - S.O.R. - Gazette of India, 30-4-1962, Pt. II, Section 2, Ext., p. 190.

Amending Act 32 of 1973.- National Co-operative Development Corporation was established in March, 1973, under the National Co-operative Development Corporation Act, 1962. The basic objective of this Corporation is to plan, promote and finance programmes for processing storage and marketing of agricultural produce and certain other commodities, on co-operative principles. The subject-matter of the Act is relatable to entry 43 in the Union List of the Seventh Schedule to the Constitution and Entry 33 in the Concurrent List of that Schedule. Since at the time of enactment of the National Co-operatvc Development Corporation Act, 1962, Entry 33 of the Concurrent List did not apply to the State of Jammu and Kashmir, the Act did not extend to that State.

2. Entry 33 of the Concurrent List has since been made applicable to the State of Jammu and Kashmir. For promoting a large programme of co-operative processing, storage and marketing, particularly of fruits and vegetables, in the State of Jammu and Kashmir, it would be advantageous to extend the National Co-operative Development Corporation Act, 1962, to that State.

3. The Bill seeks to achieve the above objective.- Gazette of India, 16-4-1973. Pt. II, Section 2, Ext., p. 335.

Amending Act 3 of 1974.- The National Co-operative Development Corporation was established in March, 1963 under the National Co-operative Development Corporation Act, 1962. The basic objective of this Corporation is to plan, promote and finance programmes for processing, storage and marketing of agricultural produce and certain other notified commodities, on co-operative basis.

2. In pursuance of certain observations made by the Public Accounts Committee (Fourth Lok Shabha) in their 106th Report in regard to the need for the continuance of the National Co-operative Development Corporation and the de-officialisation of the co-operative movement, the Government of India had appointed an Expert Committee to examine the working, objectives and future setup of the National Co-operative Development Corporation. The Committee assessed the performance of the National Co-operative Development Corporation and came to the conclusion that the Corporation had made significant contribution towards developing the potential of the programmes entrusted to it, which have recorded striking progress in recent years. The Committee accordingly not only recommended the continuance of the National Co-operative Development Corporation, but also the broad basing of its functions, activities and organisational set up. The major recommendations of the Expert Committee are as follows :

(i) The activities of the National Co-operative Development Corporation should be extended to co-operative dairy, poultry and fishery programmes, specially designed for assisting the vulnerable sections of the community. The activities of the Corporation may also include helping the tribal people in the collection, processing and marketing of minor forest produce, through appropriate co-operatives, especially designed for them.

(ii) Organisational set up of the National Co-operative Development Corporation should reflect the nature of its functions, the types of activities sponsored and the institutions and authorities it has to deal with. It should have a General Council with larger representation to States, including the State Governments and State level co-operative institutions and national level co-operative institutions, and laso it Board of Management in place of the existing Executive Committee. The Corporation will function through the General Council and the Board of Management.

(iii) Apart from providing financial assistance to co-operative programmes through the State Governments, the National Co-operative Development Corporation should participate in the share capital of, and provide loans and grants to the national and regional co-operative institutions. It may also provide finance and re-finance to other types of co-operative on the guarantee of the State Governments concerned, or, in the case of co-operatives in the Union territories on the guarantee of the State Government.

(iv) The National Co-operative Development Corporation be enabled to borrow from the open market on Central Government's guarantee, if necessary, and also from other sources.

3. The Bill seeks to amend the National Co-operative Development Corporation Act, 1962, for broad-basing the activities and the Constitution of the Corporation and also for diversifying the sources of its funds in the light of the recommendations of the Expert Committee - S.O.R. Gazette of India, 3-12-1973, Pt. II, Section 2, Ext., p. 998.

[31st August, 1962.]

[An Act to provide for the incorporation and regulation of a corporation for the purpose of planning and promoting programmes for the production, processing, marketing, storage, export and import of agricultural produce, foodstuffs [industrial goods, livestock, certain other commodities and services on co-operative principles and for matters connected therewith or incidental thereto] [Substituted by Act 3 of 1974, Section 2, for the long title (w.e.f. 1-4-1974.)]]