Lok Sabha Question No. 39 (STARRED), answered on 2025-07-22
Subject: Transforming of PACS into Multi-Functional Service Hubs
Ministry: COOPERATION
Asked by: Shri Praveen Khandelwal

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA STARRED QUESTION NO. 39 TO BE ANSWERED ON 22 nd  JULY, 2025

## Transforming of PACS into Multi-Functional Service Hubs

## 39 # Shri Praveen Khandelwal:

Will the Minister of Cooperation (सहकाįरता मंũी) be pleased to state: (a) whether the Government has taken steps to transform Primary Agricultural Credit Societies (PACS)  into  multi-functional  service  hubs  by  integrating  them  with  major  Government schemes under the PACS computerisation programme, if so, the details thereof; (b) whether the Government proposes to expand the role of PACS beyond agricultural credit to include procurement, agri-input supply, storage, insurance facilitation and other economic activities at the village level, if so, the details thereof; (c)  whether  emerging  technologies  such  as  Artificial  Intelligence,  Internet  of  Things  and precision agriculture tools are being incorporated into PACS operations through national-level pilot projects, if so, the details thereof; (d) whether any progress has been made in creating the National Database of Cooperatives for identifying underserved regions and targeting scheme delivery through cooperatives, if so, the details thereof; and (e) whether the Government proposes to formulate a long-term strategy to develop PACS as 'One Stop Shops' for last-mile service delivery and rural economic inclusion and if so, the details thereof?

## ANSWER

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

- (a) to (e): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) IN RESPECT OF LOK  SABHA  STARRED  QUESTION  NO.  39  FOR  REPLY  ON  22 ND   JULY,  2025 ASKED BY SHRI PRAVEEN KHANDELWAL REGARDING TRANSFORMING OF PACS INTO MULTI-FUNCTIONAL SERVICE HUBS.

(a) The Government is actively computerizing PACS with Enterprise Resource Planning (ERP) tools and transforming them into multi-functional service hubs by integrating them with over 25 Government schemes expanding PACS into dairy, fisheries, warehousing, retail, financial and  non-financial  services,  these  reforms  are  geared  to  make  PACS  the  backbone  of  rural service delivery under 'Sahakar se Samridhi.'

## 1. PACS Computerisation Scheme

-  On 29 June 2022 , the Cabinet approved a Centrally Sponsored Scheme to computerize approximately 63,000 functional PACS over five years (2022-23 to 2026-27) with a total budget of ₹2,516 crore , including ₹1,528 crore from GoI, ₹736 crore from States, and ₹252 crore from NABARD
-  NABARD is the implementing agency of this project, providing requisite computer hardware  and  peripherals  together  with  Enterprise  Resource  Planning  (ERP)  based common software to enable all the PACS to capture records of all credit and non-credit operations digitally and seamlessly in an efficient and transparent manner. The project comprises  the  development  of  cloud-based  common  software  with  cyber  security, uploading and building a National Level Data Repository (NLDR), training, and other support  services.  This  software  is  in  vernacular  language  having  the  flexibility  of customisation as per the needs and requirements of the States.
-  On-Ground Progress : 73,492 PACS across 31 States/UTs have been approved for inclusion in the project. Now, the original cost of this project has increased to ₹2,925.39 crore.
-  Integration with Government Schemes: Under this initiative, PACS are developed as  hubs  for  delivering  benefits  from  schemes  such  as  PM-Kisan,  PMFBY,  interest subvention, fertiliser and seed distribution, PDS outlets, LPG/Petrol/Diesel dealerships, custom hiring, Jan Aushadhi Kendras, Common Service Centres, etc..

##  Multi-Purpose PACS Establishment

- o The  Cabinet  on 15.02.2023, approved  the formation of multi-purpose PACS/dairy/fisheries cooperatives in every uncovered Panchayat, converging schemes  like  Dairy  Infrastructure  Development  Scheme  (DIDF),  Pradhan Mantri  Matsya  Sampada  Yojana  (PMMSY),  National  Programme  for  Dairy

Development  (NPDD),  National  Dairy  Development  Board  (NDDB)  & National Fisheries Development Board (NFDB).

- o A Standard Operating Procedure ('Margdarshika') was issued on 19 Sep 2024 to define targets and timelines.

## 2. Empowering PACS under Model Bye-Laws

-  Diversification  of  Activities: New  model  bye-laws  (circulated  Jan  2023)  enable PACS to undertake over 25 business activities , including dairy, fisheries, floriculture, warehousing, PDS, LPG/CNG distribution, custom hiring, insurance, banking services, community irrigation, etc.
-  ERP Modules for Multi-Service Delivery :  The computerization ERP covers modules for credit (short/med/long-term), procurement, PDS operations, warehousing, merchandising, asset management, HR, and more

(b) The Government of India has taken several initiatives to strengthen the Cooperative Sector across the country alongwith Primary Agricultural Credit Societies (PACS) beyond agricultural credit. These initiatives is aimed at strengthening rural infrastructure and enhancing incomegenerating opportunities at the village level. Under these initiatives, PACS can undertake a wide range of activities, including:

1. Procurement of agricultural produce on behalf of government agencies.
2. Supply of agri-inputs like seeds, fertilizers, and pesticides.
3. Warehousing and storage facilities include cold storage and godowns.
4. Insurance facilitation for crops, livestock, and health under schemes like PMFBY.
5. Distribution of LPG, petrol, and diesel , along with running Fair Price Shops (FPS) .
6. Acting as Common Service Centres (CSCs) to provide digital and financial services.
7. Setting up Jan Aushadhi Kendras to supply affordable medicines.
8. Facilitating minor irrigation , fishery, and dairy activities.
9. Providing services related to banking, marketing, and rural development schemes.

This multi-functional transformation is supported by a unified ERP-based software platform and  is  part  of  the  Government's  larger  ' Sahakar  se  Samridhi '  (Prosperity  through Cooperation) vision.

(c)  No,  but  there  is  scope  for  its  possible  incorporation  in  PACS  Computerization  Project, depending on need and viability.

(d) A comprehensive National Cooperative Database (NCD) has been developed by Ministry of Cooperation, Government of India, with the support of States / UTs. The NCD portal was launched on 08th March 2024. This database provides a single-point access to information on over 8.25 lakh cooperatives across the country.

The NCD is accessible at URL: https://cooperatives.gov.in.

This database can be used by policy makers, administrators, academia/researchers, banks/financing agencies, market players etc. The NCD captures data on parameters such as sector,  location  and  geographical  spread/jurisdiction,  membership,  economic  activities, linkages etc of individual cooperatives.

The NCD Database is used for identifying the gaps so that new cooperatives gets promotion. The database also helps in delivery and targeting of schemes meant for various cooperatives.

(e)   Yes,  the  Government  has  committed  to  formulate  a long-term  strategy to  integrate Primary Agricultural Credit Societies (PACS) as 'multi-service hubs'.

- i. Sahakar Se Samriddhi Vision :  The Ministry of Cooperation aims to expand PACS into 2 lakh units, ensuring at least one PACS in every panchayat to act as a singlewindow service center for farmers and rural households.
- ii. Model  Bye-Laws  &  Legal  Reforms :   The  introduction  of  model  bye-laws  allows PACS  to  undertake  over  25  business  activities,  enabling  them  to  evolve  into comprehensive rural economic units.
- iii. Digital & Infrastructure Support : The PACS computerisation programme ensures deployment of ERP software, real-time data systems, and support for tech integration (like AI, drones, IoT) to strengthen their multifunctionality.

This strategic push positions PACS as key instruments for financial inclusion, Agri-services, welfare delivery, and digital governance in rural India.

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