Lok Sabha Question No. 815 (UNSTARRED), answered on 2023-02-07
Subject: Digital Database of Cooperative Societies
Ministry: COOPERATION
Asked by: Gowdar Mallikarjunappa Siddeshwara

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION No. 815 TO BE ANSWERED ON THE 07/02/2023

## Digital Databse of Cooperative Societies

## 815. SHRI G.M. SIDDESHWAR:

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

(a)  whether  the  Government  proposes  to  collect  digital  database  of  cooperative  societies, including  Primary  Agricultural  Credit  Societies  and  Multi-State  cooperatives  all  over  the country and if so, the details thereof;

(b) the time by which the database will be ready for use by various stakeholders;

(c)  whether any committee or inquiry has been constituted to go into the irregularities and embezzlement of funds which occurred in the various cooperatives in the country and if so, the details thereof; and

(d) if not, the measures taken by the Government to deal with such irregularities and to bring the cooperatives to normal health?

## ANSWER

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

(a)  &  (b):  Yes  Sir.  Ministry  of  Cooperation  has  initiated  the  process  of  developing  an exhaustive  digital  database of  cooperative  societies  namely  National  Cooperative Database for  having  an  authentic  &  updated  data  repository  of  cooperatives  working  in  all  sectors including Primary Agricultural Credit Societies (PACS) and Multi-State cooperatives all over the  country.The  proposed  Database  will  facilitate  all  stakeholders  in  policy  making  & implementation  to  strengthen  the  cooperative  movement  in  the  country.  For  Phase-I  of National Cooperative Database, data collection of three cooperative sectors i.e. PACS, Dairy and Fisheries  has  been  started  from  1 st December, 2022 and would be available for use by various stakeholders by the end of February, 2023.

(c):  As  per  statutory  provisions,  action  is  to  be  taken  by  Central  Registrar  of  Cooperative Societies  (CRCS)  in  case  of  Muti-State  Cooperative  Societies  registered  under  Muti-State Cooperative Societies Act, 2002 and State Registrar of Cooperative Society (RCS) in case of Societies registered under the respective State Cooperative Acts, whenever any complaint of irregularities is received.

(d):  In  order  to  realize  the  vision  of  'Sahakar-se-Samriddhi',  promote  cooperative  based economic development model, strengthen cooperative movement and deepen its reach up to the grassroots, 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  eservices 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-seSamriddhi'.
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  cooperatives  from  18.5%  to 15%.
12. Relief  under  Section  269ST  of  IT  Act:  A  clarification  has  been  issued  to  remove difficulties in cash transactions by cooperatives under Section 269ST of IT Act.
13. Lowering tax rate for new cooperatives: Announcement made in the Union Budget 202324 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  cooperative  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 togive thrust to exports from cooperative sector.

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