Lok Sabha Question No. 4597 (UNSTARRED), answered on 2023-03-28
Subject: Schemes for Cooperatives in Uttar Pradesh
Ministry: COOPERATION
Asked by: Sangeeta Azad

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 4597 TO BE ANSWERED ON 28/03/2023

## Schemes for Cooperatives in Uttar Pradesh

## 4597.  SHRIMATI SANGEETA AZAD:

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

- (a) the schemes being implemented/funds utilized/work done in the field of Cooperation and the number of institutions registered by Ministry in Uttar Pradesh, district-wise;
- (b) whether any special schemes/projects are being implemented in aspirational districts and if so, the details thereof;
- (c) whether any new scheme has been implemented/proposed in Azamgarh-Lalganj Constituency of Uttar Pradesh in the field of Cooperation and if so, the details thereof; and
- (d)  whether  any  separate  scheme  is  proposed  for  the  benefit  of  the  rural  areas  and  if  so,  the details thereof?

## ANSWER

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

(a) to (d):  In order to strengthen and promote cooperative ecological system in various sectors across the country, including the State of Uttar Pradesh and for the benefits of rural areas, 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. 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 '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 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.

Under Computerization of PACS Project an amount of Rs.7.13 crore has been released to the  State  of  Uttar  Pradesh  as  first  installment  of  central  share  for  computerization  of  1,539 PACS.  In  addition  to  the  above,  cumulatively  an  amount  of  Rs.  7414.40  crores  has  been disbursed  as  loan  and  subsidy  to  the  State  of  Uttar  Pradesh  by  the  National  Cooperative Development Corporation (NCDC) as on 17.03.2023.

The  Cooperative  Societies  with  objects  confined  to  more  than  one  State  are  governed under  the  provisions  of  Multi-State  Cooperative  Societies  Act  (MSCS),  2002  and  rules  made there under. At present, there are 155 Multi State Cooperative Societies registered under MSCS Act, 2002 with their headquarter located in the state of Uttar Pradesh.

Details  of  special  schemes  being  implemented  in  aspirational  districts  by  National Cooperative Development Corporation (NCDC) is enclosed as Annexure .

For computerization of DCCB Azamgarah and its branches an assistance of Rs. 119.98 lakh has been disbursed by NCDC as loan and subsidy during 2016-17 to 2021-22.

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## Details of special schemes being implemented in aspirational districts by National Cooperative Development Corporation (NCDC)

| Sl. No.   | Name of Aspirational District   | Purpose                               |   Amount (Rs. In lakh) |
|-----------|---------------------------------|---------------------------------------|------------------------|
| 1.        | Fatehpur                        | Formation and Promotion of one FPO    |                    9   |
| 2.        | Bahraich                        | Formation and Promotion of three FPOs |                    6.4 |
| 3.        | Balrampur                       | Formation and Promotion of five FPOs  |                   10.7 |
| 4.        | Shravasti                       | Formation and Promotion of three FPOs |                    6.4 |
| 5.        | Sonbhadra                       | ICDP scheme                           |                 1411.8 |
| 6.        | Fatehpur and Bahraich           | ICDP scheme                           |                    0.9 |
| Total     | Total                           | Total                                 |                 1445.2 |

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