Lok Sabha Question No. 758 (UNSTARRED), answered on 2023-02-07
Subject: Utilisation of the Potential of Cooperatives
Ministry: COOPERATION
Asked by: Krupal Balaji Tumane, Bhavana Gawali (Patil), Arvind Ganpat Sawant

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION LOK SABHA UNSTARRED QUESTION NO. 758 TO BE ANSWERED ON 07/02/2023

## Utilisation of the Potential of Cooperatives

## † 758.  SHRI KRUPAL BALAJI TUMANE : SHRIMATI BHAVANA PUNDALIKRAO GAWALI : SHRI ARVIND GANPAT SAWANT:

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

- (a) whether the Government has drafted/worked out any framework for effective utilization  of the potential of the Cooperative Sector in all parts of the country;
- (b) if so, the details thereof;
- (c) if not, whether the Government is contemplating to introduce any scheme in this regard in near future;
- (d) whether the Government has any specific plan for Maharashtra including other States to boost  the  economy  by  promoting  cooperative  ecological  system  of  dairy,  sugar  etc  like  other sectors;
- (e) if so, the details thereof; and
- (f) the plan of the Government to promote Cooperative ecological system in special areas?

## ANSWER

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

(a)  to  (f):  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 strengthen and promote cooperative ecological system in various sectors including the dairy & sugar sectors and deepening its reach to the grassroots across the country including the State of Maharashtra and other States/UTs, 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.

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