Lok Sabha Question No. 716 (UNSTARRED), answered on 2023-02-07
Subject: Promotion of Cooperatives
Ministry: COOPERATION
Asked by: Guman Singh Damor

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION LOK SABHA UNSTARRED QUESTION NO. 716 TO BE ANSWERED ON 07/02/2023

## Promotion of Cooperatives

## † 716.  SHRI GUMAN SINGH DAMOR :

Will the Minister of COOPERATION (सहकाįरता मंũी) be pleased to state:

- (a) whether the basic culture of our country is based on cooperation and the names of the States in the country where cooperation have been successful;
- (b) whether  the  Government  has  formulated  any  specific  policy  for  the  promotion  of cooperations, if so, the details thereof;
- (c) the  norms  required  for  promoting  cooperatives  and  the  efforts  being  made  by  the Government to fulfil these norms; and
- (d) whether the Government proposes to formulate a policy in near future keeping in view the  concrete  steps  to  be  taken  to  expand  the  purview  of  Cooperatives  and  if  so,  the  details thereof?

## ANSWER

## THE MINISTER OF COOPERATION सहकाįरता मंũी (SHRI AMIT SHAH)

(a) to (d): There are about 8.54 lakh cooperatives in the country with around 29 crore members as per Statistical Profile-2018 published by National Cooperative Union of India.

The Ministry has taken up formulation of New National Cooperation Policy to help in realising the vision of 'Sahakar se Samriddhi', promoting the cooperative based economic development model, strengthening the cooperative movement in the country and deepening its reach up to the grassroots. In this regard, consultations were earlier held with stakeholders and suggestions for formulating the new Policy were invited from the Central Ministries/ Departments, States/UTs, National Cooperative Federations,  Institutions  and  also  from  the  general  public.  A  National  level  committee  has  been constituted  on  2 nd September  2022  under  the  chairmanship  of  Shri  Suresh  Prabhakar  Prabhu, consisting of experts of the cooperative sector, representatives from National/ State/ District/ Primary level  cooperative  societies,  Secretaries  (Cooperation)  and  RCSs  from  States/UTs,  officers  from Central Ministries/ Departments to analyse the collated feedback, policy suggestions & recommendations to formulate the draft of the new Policy.

In order to realize the vision of 'Sahakar-se-Samriddhi',the Ministry of Cooperation since its formation in July, 2021 has taken various initiatives such as:

1. Computerization  of  PACS:  Process  to  onboard  63,000  functional  PACS  on  an  ERP  based common national software with an outlay of ₹2,516 Crore started.
2. Model byelaws for PACS: Model byelaws prepared and circulated for their adoption as per the respective State Cooperatives Act to enable PACS to undertake more than 25 business activities like dairy, fishery, setting up of godowns, LPG/ Petrol/ Green energy distribution agency, banking correspondents, CSC, etc.
3. PACS  as  Common  Service  Centres  (CSC):  MoU  signed  between  Ministry  of  Cooperation, Ministry  of  Electronics  and  Information  Technology,  NABARD  and  CSC  -SPV  to  facilitate functioning of PACS as CSCs to improve their viability, provide e-services at village level and generate employment.
4. National  Cooperative  Database:  Preparation  of  an  authentic  and  updated  data  repository  of cooperatives in the country started to facilitate stakeholders in policy making and implementation.
5. National Cooperative Policy: A National level committee comprising of experts and stakeholders drawn from all over the Country constituted to formulate the New Cooperation Policy to create an enabling ecosystem to realize the vision of 'Sahakar-se-Samriddhi'.
6. Amendment  of  MSCS  Act,  2002:  Bill  introduced  in  the  Parliament  to  amend  the  centrally administered  MSCS  Act,  2002  to  incorporate  provisions  of  97 th Constitutional  Amendment, strengthen governance, enhance transparency, increase accountability and reform electoral process in the Multi State Cooperative Societies.
7. National  Cooperative  Development  Corporation:  New  schemes  for  cooperatives  launched  by NCDC  in  various  sectors  such  as  'Swayamshakti  Sahkar'  for  SHG;  'Deerghavadhi  Krishak Sahkar' for long term agricultural credit; 'Dairy Sahkar' for dairy and 'Neel Sahkar' for fisheries. Total financial assistance of Rs. 34,221 Crores disbursed in FY 2021-22.
8. Member Lending Institutions in Credit Guarantee Fund Trust: Non-scheduled UCBs, StCBs and DCCBs notified as MLIs in CGTMSE Scheme to increase share of cooperatives in lending.
9. Cooperatives as 'buyers' on GeM portal:  Cooperatives permitted to register as 'buyer' on GeM, enabling them to procure goods and services from nearly 40 lakh vendors  to facilitate economical purchases and greater transparency.
10. Reduction  in  surcharge  on  cooperative  societies:  Surcharge  reduced  from  12  %  to  7%  for  cooperative societies having income between Rs. 1 to 10 Cr.
11. Reduction in Minimum Alternate Tax: MAT reduced for Co-operatives from 18.5% to 15%.
12. Relief under Section 269ST of IT Act: A clarification has been issued to remove difficulties in cash transaction by cooperatives under Section 269ST of IT Act.
13. Lowering tax rate for new cooperatives: Announcement made in the Union Budget 2023-24 to charge flat lower tax rate of 15%, compared with current rate of upto 30% plus surcharge, for new cooperatives commencing manufacturing activities till March 31, 2024.
14. Increase in limit of deposits and loans in cash by PACS and PCARDBs:  Announcement made in the Union Budget 2023-24 to increase limit from Rs. 20,000 to Rs. 2 lakh per member for deposits and loans in cash by PACS and PCARDBs.
15. Increase in limit  for  TDS:  Announcement made in the Union Budget 2023-24 to increase cash withdrawal  limit  for  cooperatives  from  Rs.  1  Crore  to  Rs.  3  Crore,  per  annum,  without  being subjected to TDS.
16. Relief  to  Sugar  Cooperative  Mills:  Sugar  co-operative  mills  not  to  be  subjected  to  additional income tax for  paying higher sugarcane prices to farmers upto  Fair and Remunerative or State Advised Price.
17. Resolution  of  chronic  pending  issues  of  Sugar  Cooperative  Mills:  Announcement  made  in  the Union  Budget  2023-24  to  allow  sugar  cooperatives  to  claim  as  expenditure  their  payments  to sugarcane farmers for the period prior to assessment year 2016-17, giving a relief of nearly Rs. 10,000 crores.
18. New National Multi-State Cooperative Seed Society: New apex national multi-state cooperative seed  society  being  established  under  the  MSCS  Act,  2002  as  umbrella  organization  for  quality seed cultivation, production and distribution under a single brand.
19. New  National Multi-State Cooperative Organic Society: New  apex national multi-state cooperative organic society being established under the MSCS Act, 2002 as umbrella organization to produce, distribute and market certified and authentic organic products.
20. New National Multi-State Cooperative Export Society: New apex national multi-state cooperative export  society  being  established  under  the  MSCS  Act,  2002  as  umbrella  organization  to  give thrust to exports from cooperative sector.