Lok Sabha Question No. 2110 (UNSTARRED), answered on 2022-12-20
Subject: Health of Cooperative Societies
Ministry: COOPERATION
Asked by: Thalikkottai Rajuthevar Baalu

## 2110.  SHRI T.R. BAALU:

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

- (a) whether  the  Cooperative  institutions  functioning  in  various  sectors  including  Agriculture, Finance, Credit, etc. have become slide due to the dominance of corporate sector business and lack of the Government support and if so, the details thereof;

(b) the number of Cooperative Societies/organic sections closed down in the last three years due to non-viability; and

(c) the  steps  proposed  to  be  taken  by  the  Government  to  improve  the  health  of  Cooperative societies in the country?

## ANSWER

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION LOK SABHA UNSTARRED QUESTION NO. 2110 TO BE ANSWERED ON 20/12/2022

## Health of Cooperative Societies

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

(a) to (c): As per Ministry of Cooperation's mandate to strengthen the cooperative movement in the country and promote cooperative-based economic development model, the Government is working towards transforming cooperatives into vibrant economic entities and bring them at par with other economic entities both as beneficiaries and participants.

As per Part IX B of the Constitution of India, incorporation, regulation and winding up of multi-State cooperative  societies  comes  under  the  purview  of  Central  Government;  while  as  per  List  -  II  of Seventh  Schedule  to  the  Constitution,  incorporation,  regulation  and  winding  up  of  cooperative societies  registered under State  Cooperative Societies  Acts  comes  under  the purview  of respective State  Governments/UT  Administrations.  Therefore,  data  on  number  of  cooperative  societies,  other than those registered under the Multi State Cooperative Societies Act, 2002, is not maintained in the Ministry  of  Cooperation.  However,  as  far  as  multi-State  cooperative  societies  are  concerned,  27 societies have been put under liquidation in the last three years.

The  Ministry  has  taken  various  initiatives  to  improve  the  health  of  cooperative  societies  in  the country such as:

- i. Project  for  Computerization  of  63,000  functional  Primary  Agriculture  Credit  Societies (PACS),  in  next  three  years,  with  a  total  financial  outlay  of  ₹2,516  Crore  has  been approved by the Cabinet Committee on Economic Affairs vide its decision dated 29 th June, 2022.  This  project  entails  bringing  all  the  functional  PACS  onto  an  ERP  (Enterprise Resource Planning) based common software, linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs).
- ii. Model  bye  laws  for  PACS  have  been  prepared  after  detailed  stakeholder  consultations, including all the States/ Union Territories and Ministries concerned, for adoption by PACS as per their respective State Cooperatives Societies Act. These Model Byelaws of PACS will  enable  them  to  undertake  more  than  25  business  activities  like  dairy,  fishery, floriculture,  setting  up  of  godowns,  procurement  of  foodgrains,  fertilizers,  seeds,  LPG/ Petrol/  Green  energy  distribution  agency,  banking  correspondents,  common  service centres, etc.
- iii. On 1st June, 2022, Union Cabinet has taken a decision allowing cooperatives to register as 'buyer'  on  Government  e-Marketing  platform,  enabling  them  to  procure  goods  and services from nearly 40 lakh vendors registered on the GeM portal throughout the country. This  will  help  cooperatives  in  making  savings  and  improving  transparency  in  their procurement system.
- iv. Surcharge on Co-operative societies was reduced from 12 % to 7% for those co-operative societies having a total income of more than Rs. 1 Cr. and up to Rs. 10 Cr. to enhance the income of Co-operative societies and its members.
- v. Minimum Alternate Tax (MAT) rate reduced for the Co-operatives from 18.5% to 15% to provide them a level playing field with Corporates.
- vi. In order to provide adequate, affordable and timely credit to the co-operative institutions to give a boost to the co-operative based economic development model, non-scheduled Urban Co-operative  Banks,  State  Co-operative  Banks  and  District  Central  Co-operative  Banks have been notified as Member Lending Institutions in Guarantee Fund Trust (CGTMSE) Scheme vide circular dated 3 rd February, 2022.
- vii. Government vide its  notification  dated  25th  October,  2021  offered  a  major  relief  to  cooperative sugar mills by clarifying that sugar co-operative mills shall not be subjected to additional  income  tax  for  paying  higher  sugarcane  prices  to  farmers  upto  the  Fair  and Remunerative Price (FRP) or State Advised Price (SAP), as the case may be.
- viii. National  Cooperative  Development  Corporation  (NCDC),  a  statutory  organization  under the  Ministry  of  Cooperation,  provides  financial  assistance  to  the  cooperative  sector  and undertakes various activities such as strengthening share capital base of primary/ District cooperative  marketing  societies,  setting  up of  processing  centres,  storage facilities, establishing and modernizing cold chain, creation of cooperative banking units, agricultural services, Integrated Cooperative Development Projects, assistance for computerization  of  cooperatives,  'Yuva-Sahkar'  for  cooperative  enterprise  support  and innovation,  'Ayushman  Sahkar'  covering  healthcare  sector,  'Nandini  Sahkar'  to  support women cooperatives, etc.

*****