Lok Sabha Question No. 833 (UNSTARRED), answered on 2023-02-07
Subject: Establishing of Multi-State Co-operatives
Ministry: COOPERATION
Asked by: D.K. Suresh, Sumalatha Ambareesh

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO 833 TO BE ANSWERED ON 07/02/2023

## Establishing of Multi-State Co-operatives

## 833: SHRI D.K. SURESH: SHRIMATI SUMALATHA AMBAREESH:

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

- (a) the total number of Multi-State Co-operatives established in the country during the last three years, year wise and State-wise;
- (b) whether the Government has mandated the Co-operatives to help in ease of doing business in tune with the vision of promoting business opportunity in the country, if so, the details thereof; and
- (c) whether the Government has put any mechanism in place to monitor the functioning of the MultiState co-operatives and if so, the details thereof?

## ANSWER

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

(a):  The  total  number  of  multi-State  cooperative  societies  established  in  the  country  during  the  last three years, year wise and State-wiseis attached at Annexure-I.

(b):  In  order  to  realize  the  vision  of  'Sahakar-se-Samriddhi',  promote  cooperative  based  economic development  model,  strengthen  cooperative  movement  and  deepen  its  reach  up  to  the  grassroots, 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 cooperatives from 18.5% to 15%.
12. 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.
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  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.
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.
21. (c):  The  powers  of  Central  Registrar  to  conduct  inspections  of  Multi-State  Cooperative  Societies under  Section  108  and  to  appoint  arbitrator  under  Section  84  of  the  Multi  State  Cooperative Societies  Act,  2002  have  been  delegated  to  Registrar  of Cooperative  Societies  of all  States/  UTs, who act on behalf of the Central Registrar. On receipt of inspection report from the State Registrar of Cooperative Societies, action is taken by the Central Registrar as per the provisions of the Multi State Cooperative Societies Act, 2002 and Rules made thereunder.

No. of Multi State Cooperative Societies registered under MSCS Act, 2002 during the last 3 years i.e., 2020, 2021 & 2022.

| S.No.   | Year   |   Number of Societies |
|---------|--------|-----------------------|
| 1.      | 2020   |                    10 |
| 2.      | 2021   |                    14 |
| 3.      | 2022   |                    68 |
|         | Total  |                    92 |

State /Union territories wise Multi State Cooperative Societies registered under MSCS Act, 2002 during last 3 years i.e., 2020, 2021 & 2022.

|     | State/ Union territories   |   No. of Societies |
|-----|----------------------------|--------------------|
| 1.  | Andhra Pradesh             |                  2 |
| 2.  | Assam                      |                  1 |
| 3.  | Bihar                      |                  2 |
| 4.  | Gujarat                    |                  1 |
| 5.  | Haryana                    |                  5 |
| 6.  | Jammu &Kashmir             |                  1 |
| 7.  | Jharkhand                  |                  1 |
| 8.  | Kerala                     |                 10 |
| 9.  | Madhya Pradesh             |                  3 |
| 10. | Maharashtra                |                 30 |
| 11. | Manipur                    |                  2 |
| 12. | New Delhi                  |                  3 |
| 13. | Punjab                     |                  1 |
| 14. | Tamil Nadu                 |                  7 |
| 15. | Telangana                  |                  2 |
| 16. | Uttar Pradesh              |                 19 |
| 17. | Uttarakhand                |                  2 |
|     | Total                      |                 92 |

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