Lok Sabha Question No. 1600 (UNSTARRED), answered on 2022-07-26
Subject: National Policy on Cooperation
Ministry: COOPERATION
Asked by: Ramesh Bidhuri

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 1600 TO BE ANSWERED ON 26 th  July, 2022

## National Policy on Cooperation

## 1600.    SHRI RAMESH BIDHURI:

Will the Minister of COOPERATION ( सहकारिता मंत्री) be pleased to state:

- (a) whether the Government has proposed to introduce National Policy on Cooperation;
- (b) if so, the details thereof; and
- (c) the steps the Government has taken for strengthening India's cooperative architecture syncing it with country's economic and social needs?

## ANSWER

## MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a)  &  (b): Yes,  Sir.  The  Government  is  formulating  a  new  national  level  policy  for cooperatives. A two-day National Conference on the new Cooperation Policy was held on 12 th and 13 th April, 2022 with Cooperation Secretaries / RCSs from all the States/UTs, wherein discussions  were  inter  alia  held  on  legal  framework,  identification  of  regulatory,  policy  & operational barriers; ease of doing business; reforms for strengthening governance; promoting new and social cooperatives; revitalizing defunct ones; making cooperatives vibrant economic entities; cooperation among cooperatives and increasing membership of cooperatives.

Further, suggestions on the draft Policy were sought from the stakeholders including general public through the website of the Ministry.

Based on the comments received from Central Ministries/Departments, States/UTs, Federations, Institutions and general public, and further consultations with stakeholders, the new Policy will be formulated.

(c): Some  of  the  several  steps  taken  by  the  Government  to  strengthen  India's  cooperative architecture include the following:

- i. As per notification dated 25 th October, 2021, the Government has provided relief to cooperative sugar mills by clarifying that they shall not be subjected to additional income tax for paying higher sugarcane prices to farmers up to the Fair and Remunerative Price (FRP) or State Advised Price (SAP), as the case may be.
- ii. As per the Budget announcement 2022, the Government reduced the surcharge for cooperative societies from 12% to 7% for those having a total income of more than Rs. 1 crore  and  up  to  Rs.  10  crore.  Further,  to  provide  a  level  playing  field  between  co-
3. operative  societies  and  companies,  Minimum  Alternate  Tax  (MAT)  rate  for  cooperative societies was reduced from 18.5% to 15%.
- iii. As per notification dated 3 rd February 2022 by Credit Guarantee Fund Trust for Micro and Small Enterprises  (CGTMSE), non-scheduled Urban Co-operative Banks, State Co-operative  Banks  and  District  Central  Co-operative  Banks  as  Member  Lending Institutions of the scheme with specified eligibility criteria. This will help in providing adequate, affordable and timely credit to the co-operative institutions to give a boost to the co-operative based economic development model.
- iv. As per the approval of the Union Cabinet on 1 st June 2022, the mandate of Government e-Marketplace - Special Purpose Vehicle (GeM - SPV) has been expanded to allow cooperative societies to register as buyers on the GeM platform.
- v. As per the approval of the Government on 29 th June 2022, a centrally sponsored project for digitalization of 63,000 functional Primary Agriculture Credit Societies (PACS), with  a  budgetary  outlay  of  Rs  2,516  crore,  has  been  sanctioned  to  revitalize  the cooperative sector. The implementation of this project has already begun.
- vi. In  order  to  diversify  the  business  activities  of  PACS  and  make  them  vibrant  multipurpose economic entities, draft model Bye-Laws are being prepared in consultation with State Governments, National Cooperative Federations and other stakeholders.
- vii. A new scheme titled 'Cooperation to Prosperity' is being formulated in consultation with all the stakeholders for all-round development of cooperatives at all levels.
- viii. In  order  to  facilitate  the  Government  to  make  appropriate  policy  interventions,  a National  Co-operative  Database  is  being  created  in  consultation  with  State/UT Governments, National Co-operative Federations and other stakeholders.
- ix. In order to modernize and professionalize the education and training in the cooperative sector,  steps  are  being  taken  to  reorient  the  training  and  educational  Cooperative Institutions in consultation with all the stakeholders.