Lok Sabha Question No. 1853 (UNSTARRED), answered on 2023-08-01
Subject: Mega Conclave for Strengthening of PACS
Ministry: COOPERATION
Asked by: Sudheer Gupta, Sambhajirao Mane Dhairyasheel, Sanjay Sadashivrao Mandlik, Shrirang Appa Barne, Prataprao  Jadhav, Bidyut Baran Mahato

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 1853 TO BE ANSWERED ON 01/08/2023

## Mega Conclave for Strengthening of PACS

## 1853. SHRI SUDHEER GUPTA:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI SHRIRANG APPA BARNE:

SHRI PRATAPRAO JADHAV:

SHRI BIDYUT BARAN MAHATO:

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

(a)  whether  the  National  Cooperative  Development  Corporation  (NCDC)  in  collaboration with Ministry of Cooperation has recently inaugurated a day long mega  conclave strengthening  Primary  Agricultural  Credit  Societies  (PACS)  through  Farmer  Producer Organizations (FPOs) in New Delhi;

(b) if so, the details thereof along with the aims and objectives of the said mega conclave;

(c) the details of various participants who participated in the conclave;

(d) whether the Government proposes to form 1100 new FPOs in the cooperative sector in the country and if so, the details thereof;

(e) the details of financial assistance provided by the Government to each FPO for promoting and handholding the FPOs; and

(f) the other steps taken/being taken by the Government to improve overall quality of life of those dependent on agriculture?

## ANSWER

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

(a): Yes Sir. Ministry of Cooperation has organized one day National Mega Conclave titled 'FPOs in Cooperative Sector' on 14 th July 2023 in New Delhi.

(b): The mega conclave was organized with the objective of extending the benefit of Central Sector  Scheme  -Formation  and  Promotion  of  10,000  FPOs  to  the  Cooperative  sector  by enabling primary agricultural credit societies (PACS) to form new FPOs.

(c): Representatives belonging to FPO Cooperatives, Cluster Based Business Organizations, Members  of  cooperative  societies,  Government  Officials,  Officials  of  State  Cooperative Banks and District Central Cooperative Banks, etc. participated in the conclave.

(d): The Government has allocated additional 1100 FPOs  to National Cooperative Development Corporation (NCDC) for strengthening of cooperative sector through formation of new FPOs.

(e): Under 'Formation and Promotion of 10,000 FPOs'scheme, financial assistance of Rs.33 lakh is provided to each FPO. Further, financial assistance of Rs.25 lakh per FPO is provided to  the  Cluster  Based  Business  Organization  (CBBO)  for  promoting  and  handholding  the FPOs.

(f): Ministry of Cooperation with active participation of various States/ UTs has taken various initiatives to revitalize and strengthen the cooperative sector across the country and also in the interest of those dependent on agriculture, which includes the following:

## A. Making  Primary Cooperatives transparent and economically vibrant (14 initiatives)

1. Model  Bye-Laws  for  PACS  making  them  multipurpose,  multidimensional  and transparent entities :  Prepared and circulated to all the States/ UTs for adoption as per their  respective  State  Cooperatives  Act  to  enable  PACS  to  undertake  more  than  25 business activities. Model byelaws have been adopted by 27 States/ UTs.
2. Strengthening of PACS through Computerization :  Process  to  onboard 63,000 PACS on an ERP based national software, with an outlay of ₹2,516 Crore started.
3. New Multipurpose PACS/ Dairy/ Fishery Cooperatives in uncovered Panchayats : A plan  has  been  approved  to  set  up  2  lakh  new  multi-purpose  PACS  or  primary  dairy/ fisheries cooperatives covering every Panchayat/ village in the next five years.
4. World's Largest Decentralized Grain Storage Plan in Cooperative Sector to ensure food security :  Pilot  Project is  under implementation to  create godowns and other agriinfra for grain storage at PACS level.
5. PACS as Common Service Centers (CSCs) for better access to e-services : More than 17,000  PACS  onboarded  as  CSC  to  improve  their  viability,  provide  e-services  and generate employment in rural areas.
6. Formation of new Farmer Producer Organization (FPOs) by PACS : 1,100 additional FPOs to be formed by PACS in those blocks where FPOs have not yet been formed or the blocks are not covered by any implementing agency.
7. PACS given priority for Retail Petrol/ diesel outlets : PACS have been included in the Combined Category 2 (CC2) for allotment of retail petrol/ diesel outlets. Existing PACS with wholesale petrol pump license permitted to convert into retail outlets.
8. PACS eligible for LPG Distributorship for diversifying its activities : PACS have now been allowed to apply for LPG Distributorships.
9. PACS as Jan Aushadhi Kendra for improving access to generic medicines at rural level : PACS have been allowed to operate Pradhan Mantri Bhartiya Janaushadhi Kendras which will provide additional income source to them.
10. PACS  as  Pradhan  Mantri  Kisan  Samriddhi  Kendras  (PMKSK)  for  fertilizer distribution: PACS have been allowed to operate PMKSK for ensuring easy accessibility of fertilizer & related services to farmers in the country.
11. Convergence of PM-KUSUM at PACS level for energy security :  Farmers associated with PACS can adopt solar agricultural water pumps and install photovoltaic modules in their farms.
12. PACS to carry out O&M of rural piped water supply schemes (PWS) :  PACS have been allowed to carry out the Operations & Maintenance (O&M) of PWS in rural areas.
13. Micro-ATMs to Bank Mitra Cooperative Societies for providing doorsteps financial services : Micro-ATMs now being given to cooperative societies like Dairy, Fisheries.
14. Rupay  Kisan  Credit  Card  to  Members  of  Milk  Cooperatives :  Rupay  Kisan  Credit Cards  being  provided  to  the  members  of  cooperatives  through  Cooperative  Banks  for providing credit at comparatively lower interest rates.

## B. Strengthening the Urban and Rural Cooperative Banks (9 initiatives)

15. UCBs have now been allowed to open new branches to expand their business.
16. UCBs have been allowed by RBI to offer doorstep services to their customers.
17. Cooperative banks have been allowed to make one-time settlement of outstanding loans, like Commercial Banks.
18. Time limit increased to achieve Priority Sector Lending (PSL) targets given to UCBs .
19. A Nodal Officer designated in RBI for regular interaction with UCBs .
20. Individual  housing  loan  limit  more  than  doubled  by  RBI  for Rural  and  Urban  Cooperative Banks.
21. Rural Co-operative Banks will now be able to lend to commercial real estate/ residential housing sector, thereby diversifying their business.
22. License  fee  for onboarding  Cooperative  Banks  to  'Aadhaar  Enabled  Payment System' (AePS) has been reduced by linking it to the number of transactions.
23. Non-scheduled  UCBs,  StCBs  and  DCCBs  notified  as Member  Lending  Institutions (MLIs) in CGTMSE Scheme to increase share of cooperatives in lending.

## C. Relief to Cooperative Societies in Income Tax Act (6 initiatives)

24. Surcharge reduced from 12 % to 7% for co-operative societies having income between Rs. 1 to 10 Cr.
25. MAT reduced for cooperatives from 18.5% to 15%.
26. A clarification has been issued to remove difficulties in cash transactions by cooperatives under Section 269ST of IT Act .
27. A flat lower tax rate of 15% will be charged, compared with current rate of upto 30% plus surcharge, for new cooperatives commencing manufacturing activities till March 31, 2024.
28. Limit increased from Rs. 20,000 to Rs. 2 lakh per member for deposits and loans in cash by PACS and PCARDBs.
29. Increase in cash withdrawal limit for cooperatives from Rs. 1 Crore to Rs. 3 Crore, per annum, without being subjected to TDS.

## D. Revival of Cooperative Sugar Mills (4 initiatives)

30. Relief from Income Tax to Sugar Cooperative Mills : Sugar cooperative mills not to be subjected to additional income tax for paying higher sugarcane prices to farmers up to Fair and Remunerative or State Advised Price.
31. Resolution of decades old pending issues related to Income Tax  of Sugar Cooperative Mills : Sugar cooperatives allowed 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.
32. Rs.  10,000  crore  loan  scheme  launched  by  NCDC  for  strengthening  of  Sugar Cooperative  Mills :  Scheme  can  be  used  for  setting  up  ethanol  plants  or  cogeneration plants or for working capital or for all three purposes.
33. Preference  to  Cooperative  Sugar  Mills  in  purchase  of  ethanol :  Decision  has  been taken  to  put  Cooperative  Sugar  Mills  at  par  with  private  companies  for  ethanol procurement by Government of India under the Ethanol Blending Programme (EBP).

## E. Three new Multi-State Societies at the National Level (3 initiatives)

34. New National Multi-State Cooperative Seed Society for certified seeds :  New  apex  multistate cooperative seed society established under the MSCS Act, 2002 as umbrella organization for quality seed cultivation, production and distribution under a single brand.
35. New National  Multi-State  Cooperative  Organic  Society  for  organic  farming :  New  apex multi-state  cooperative  organic  society  established  under  the  MSCS  Act,  2002  as  umbrella organization to produce, distribute and market certified and authentic organic products.
36. New National Multi-State Cooperative Export Society for promoting exports :  New apex multi-state  cooperative  export  society  established  under  the  MSCS  Act,  2002  as  umbrella organization to give thrust to exports from cooperative sector.

## F. Capacity Building in Cooperatives (3 initiatives)

37. Establishment  of  the  World's  Largest  Cooperative  University: National  Cooperative University  being  established  for  Cooperative  education,  training,  consultancy,  research  and development and a sustainable and quality supply of trained manpower is at advanced stage.
38. New  Scheme  of  Cooperative  Education  and  Training :  To  strengthen  the  cooperative movement,  build  capacity  of  faculty  of  VAMNICOM,  NCCT  and  JCTC,  promote  quality research and studies on important areas of Cooperative sector, etc.
39. Promotion of training and awareness through National Council for Cooperative Training (NCCT) :  NCCT conducted 3,287 training programs and provided training to about 2,01,507 participants in FY 2022-23.

## G. Use of Information Technology for 'Ease of Doing Business' (2 initiatives)

40. Computerization  to  strengthen  the  Central  Registrar's  Office :  For  creating  a  digital ecosystem for Multi-State  Cooperative  Societies  and  to  assist  in  processing  applications  and service requests in a time bound manner a decision for computerization has been taken.
41. Scheme for computerization of office of RCSs in States and Union Territories : To increase ease of doing business for Cooperative Societies and create a digital ecosystem for transparent paperless regulation in all States/Union Territories.

## H. Other Initiatives (7 initiatives)

42. New  National  Cooperative  Database  for  authentic  and  updated  data  repository : Preparation of a database of cooperatives in the country started to facilitate stakeholders in policy making and implementation.
43. Formulation  of  New  National  Cooperative  Policy :  A  National  level  committee comprising 49 experts and stakeholders drawn from all over the Country constituted to formulate the New National Cooperative Policy to create an enabling ecosystem to realize the vision of 'Sahakar-se-Samriddhi'.
44. Multi-State  Co-operative  Societies  (Amendment)  Bill,  2022 :  Bill  introduced  in  the Parliament to amend the 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.
45. Inclusion  of  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.
46. Expansion of National Cooperative Development Corporation to increase its range and depth : 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. 41,024 Crores disbursed by NCDC in FY 2022-23.
47. Computerization  of  Agriculture  and  Rural  Development  Banks  (ARDBs) :  To strengthen  the  Long-term  Cooperative  Credit  structure,  a  decision  has  been  taken  to computerise Agriculture and Rural Development Banks (ARDBs).
48. Refund  to  Investors  of  Sahara  Group  of  Societies :  A  portal  has  been  launched  for making payments to the bona fide depositors of the cooperative societies of Sahara Group in  a  transparent  manner  after  proper  identification  and  submission  of  proof  of  their deposits and claims.

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