Lok Sabha Question No. 2205 (UNSTARRED), answered on 2023-03-14
Subject: Implementation of Central Sector Schemes through Cooperative Organisations
Ministry: COOPERATION
Asked by: Dulal Chandra Goswami

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 2205 TO BE ANSWERED ON 14/03/2023

## Implementation of Central Sector Schemes through Cooperative Organizations

## †2205. SHRI DULAL CHANDRA GOSWAMI:

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

- (a) whether  the  Central  sector  schemes  are  being  implemented  through  cooperative  organisations working at National and State level for farmers' benefit;
- (b) if so, the details of the schemes; and
- (c) if not, whether the Government proposes to formulate any scheme for providing training and also for distribution of fertilizers and seeds in Bihar through national level cooperative societies and thereby strengthening the cooperative movement and providing benefits to the farmers?

## ANSWER

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

- (a)  to  (c): In  order  to  realize  the  vision  'from  cooperation  to  prosperity',  strengthening  of  cooperative  movement  in  the  country,  deepening  its  reach  up  to  the  grassroots  and  promotion  of cooperative ecosystem in various sectors including the agriculture sector, government is implementing various schemes - central sector and centrally sponsored schemes, programmes and initiatives  across the country, including Bihar, through the instrumentation of central nodal agencies, state  governments,  national,  state  and  district  level  cooperative  federations,  primary  cooperative societies etc. for the benefit of the farmers.

In this regard, Ministry of Cooperation, since its formation in July, 2021, has taken many initiatives such as:

1. Computerization  of  PACS:  Process  to  onboard  63,000  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. Establishment  of  Multi-Purpose  PACS,  Dairy  and  Fisheries  Cooperative  Societies  in  every Panchayat/Village: A plan has been approved by the Government to set up 2 lakh new multipurpose PACS, dairy and fisheries cooperatives covering every Panchayat/Village in the next five years by taking advantage of various existing schemes.
6. 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'.
7. 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.
8. National Cooperative Development Corporation: New schemes for cooperatives launched by NCDC in various sectors such as 'Swayam shakti 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.
9. 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.
10. 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.
11. Reduction in surcharge on cooperative societies: Surcharge reduced from 12 % to 7% for cooperative societies having income between Rs. 1 to 10 Cr.
12. Reduction in Minimum Alternate Tax: MAT reduced for cooperatives from 18.5% to 15%.
13. 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.
14. 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.
15. 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.
16. 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.
17. 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.
18. 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.
19. 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.
20. 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.
21. 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.

National  Council  for  Cooperative  Training  (NCCT)  under  Ministry  of  Cooperation,  State Governments,  National  Cooperative  Union  of  India  (NCUI)  and  other  cooperative  societies organise training of personnel associated with the cooperative societies through their cooperative training institutions throughout the country on a regular basis including Bihar.