Lok Sabha Question No. 819 (UNSTARRED), answered on 2023-02-07
Subject: National Policy on Cooperation
Ministry: COOPERATION
Asked by: Achyutananda Samanta

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 819 TO BE ANSWERED ON 07/02/2023

## National Policy on Cooperation

## 819.    SHRI ACHYUTANANDA SAMANTA:

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

(a) whether the Government has proposed to introduce National Policy on Cooperation and if so, the details thereof; and

(b)  the  steps  taken  by  the  Government  for  strengthening  India's  cooperative  architecture  syncing  it with country's economic and social needs?

## ANSWER

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

(a):  Yes,  Sir.  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 formulate the New National Cooperation Policy. The formulation of New National Cooperation Policy will 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.  The  National  level committee will analyse the collated feedback, policy suggestions & recommendations to formulate the draft of the new Policy.

(b):  Number  of  steps  have  been  taken  by  the  Government,  after  the  formation  of  the  Ministry  of Cooperation,  to  strengthen  India's  cooperative  architecture  syncing  it  with  country's  economic  and social needs, inter-alia, including the following:

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 each 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.

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