Lok Sabha Question No. 2119 (UNSTARRED), answered on 2023-03-14
Subject: Creating New Cooperatives
Ministry: COOPERATION
Asked by: Debasree Chaudhuri

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 2119 TO BE ANSWERED ON 14/03/2023

## Creating New Cooperatives

## 2119.  MS. DEBASREE CHAUDHURI:

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

( a) whether the Government is aware that only 48 new cooperatives have been started since 2017;

(b) if so, the steps that have been taken by the Government to boost this number;

(c) whether  the  Government  has  passed  any  instruction  to  the  State  Governments  for  the promotion of new cooperatives, if so, the details thereof;

(d) whether the Government is aware that very few cooperatives have been started in Dairy, Fisheries, Housing, Industrial/Textile, Marketing, Medical and Welfare sector, if so, the details thereof and reasons therefor; and

(e) whether the  Government has taken any  step  for  the  promotion  of  new  cooperatives  in these areas and if so, the details thereof?

## ANSWER

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

(a)  to  (e):  Cooperatives  are  democratically  controlled  voluntary  organizations  formed  by  the members  to  fulfill  their  shared  economic,  social  or  cultural  aspirations.  Cooperative  societies with area of operation restricted to one State are covered under the State List of the Constitution and  are  regulated  by  respective  State  Cooperative  Societies  Acts.  Those  cooperative  societies which are having their area of operation in more than one State are regulated by the Multi-State Cooperative Societies (MSCS) Act, 2002. Since 2017, 96 multi-state cooperative societies have been registered under the MSCS Act, 2022.

In order to strengthen the co-operative movement in the country and deepen its reach up to the grassroots, promote cooperative ecosystem in various sectors including Dairy, Fisheries, Housing,  Industrial/Textile,  Marketing,  Medical  and  Welfare  sectors  across  the  country,  the Ministry of Cooperation has taken various steps 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. 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 multi-purpose 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-seSamriddhi'.
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  '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.
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 co-operative 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 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.
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.

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