Lok Sabha Question No. 986 (UNSTARRED), answered on 2022-12-13
Subject: Empowering Cooperative Structure
Ministry: COOPERATION
Asked by: Sarmistha Sethi, Nishikant  Dubey

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 986 TO BE ANSWERED ON 13/12/2022

## Empowering Cooperative Structure

## 986.  SHRIMATI SARMISTHA SETHI: DR. NISHIKANT DUBEY:

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

(a) whether the Government  is taking any steps to empower/strengthen cooperative societies/structure in the country especially in the States of Jharkhand and Bihar, if so, the details thereof;

(b) whether  any  amount  has  been  allocated  for  strengthening  the  cooperative  structure  in above mentioned States and if so, the details thereof;

(c) the  manner in which the Government  intends to function without diluting the constitutional mandate of cooperative federalism; and

(d) the details in this regard and the proposed framework, if any?

## ANSWER

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

(a)  Yes,  sir.  In  order  to  revitalize  the  cooperative  sector,  empower  cooperative  societies  and deepening its reach to the grassroots in all States, including the States of Jharkhand and Bihar, the Ministry of Cooperation has taken various initiatives such as:

- i. Project  for  Computerization  of  63,000  functional  Primary  Agriculture  Credit  Societies (PACS),  in  next  three  years,  with  a  total  financial  outlay  of  ₹2,516  Crore  has  been approved  by  the  Cabinet  Committee  on  Economic  Affairs  vide  its  decision  dated  29 th June, 2022. This project entails bringing all the functional PACS onto an ERP (Enterprise Resource Planning) based common software, linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs).
- ii. Model bye laws for PACS have been prepared after detailed stakeholder consultations, including  all  the  States/  Union  Territories  and  Ministries  concerned,  for  adoption  by PACS as per their respective State Cooperatives Societies Act. These Model Byelaws of PACS will enable them to undertake more than 25 business activities like dairy, fishery, floriculture,  setting  up  of  godowns,  procurement  of  foodgrains,  fertilizers,  seeds,  LPG/ Petrol/  Green  energy  distribution  agency,  banking  correspondents,  common  service centres, etc.
- iii. On 1st June, 2022, Union Cabinet has taken a decision allowing cooperatives to register as  'buyer'  on  Government  e-Marketing  platform,  enabling  them  to  procure  goods  and services  from  nearly  40  lakh  vendors  registered  on  the  GeM  portal  throughout  the country.  This  will  help  cooperatives  in  making  savings  and  improving  transparency  in their procurement system.
- iv. Surcharge on Co-operative societies was reduced from 12 % to 7% for those co-operative societies having a total income of more than Rs. 1 Cr. and up to Rs. 10 Cr. to enhance the income of Co-operative societies and its members.
- v. Minimum Alternate Tax (MAT) rate reduced for the Co-operatives from 18.5% to 15% to provide them a level playing field with Corporates.
- vi. In order to provide adequate, affordable and timely credit to the co-operative institutions to  give a  boost  to  the  co-operative  based  economic development model, non-scheduled Urban Co-operative Banks, State Co-operative Banks and District Central Co-operative Banks  has  been  notified  as  Member  Lending  Institutions  in  Guarantee  Fund  Trust (CGTMSE) Scheme vide circular dated 3 rd February, 2022.
- vii. Government vide its notification dated 25th October, 2021 offered a major relief to cooperative sugar mills by clarifying that sugar co-operative mills shall not be subjected to additional income tax for paying higher sugarcane prices to farmers upto to the Fair and Remunerative Price (FRP) or State Advised Price (SAP), as the case may be.
- viii. National Cooperative Development Corporation (NCDC), a statutory organization under the Ministry of Cooperation, provides financial assistance to the cooperative sector and undertakes various activities such as strengthening share capital base of primary/ District cooperative  marketing  societies,  setting  up  of  processing  centres,  storage  facilities, establishing and modernizing cold chain, creation of cooperative banking units, agricultural services, Integrated Cooperative Development  Projects, assistance for computerization  of  cooperatives,  'Yuva-Sahkar'  for  cooperative  enterprise  support  and innovation, 'Ayushman Sahkar' covering healthcare sector, 'Nandini Sahkar' to support women cooperatives etc.
9. (b) All initiatives being taken by the Ministry are oriented towards revitalizing the cooperatives in  all  sectors  at  all  levels  and  in  all  States/  Union  Territories,  including  the  states  of Jharkhand  and  Bihar  keeping  the  Constitutional  provisions  in  mind.  NCDC  has  provided financial assistance to the States of Jharkhand and Bihar under the Central Sector Integrated Scheme on Agricultural Cooperation (CSISAC). The details of financial assistance released by  National Cooperative Development Corporation (NCDC) as on 07.12.2022 is as follows:

| State     |   Amount (₹ in Crore) |
|-----------|-----------------------|
| Jharkhand |                156.8  |
| Bihar     |               6652.12 |

(c) & (d) Cooperatives with objects not confined to one State are governed under List I - Union List, Entry 44 of the Seventh Schedule and Part IXB of the Constitution. Such cooperatives are administered  under  the  provisions  of  Multi-State  Cooperative  Societies  Act,  2002  and  rules made  there  under.  The  government  has  already  introduced  a  legislation  in  the  Parliament  to amend the Multi-State Cooperative Societies Act, 2002 with a view to incorporate the provisions of  Ninety-seventh  Constitutional  Amendment  and  for  strengthening  governance,  enhancing transparency,  increasing  accountability  and  reforming  electoral  process,  etc.in  the  Multi  State Cooperative Societies.