Lok Sabha Question No. 1181 (UNSTARRED), answered on 2024-12-03
Subject: Computerization and Strengthening of Primary Cooperative Societies
Ministry: COOPERATION
Asked by: Shri Dilip Saikia, Smt. Bijuli Kalita Medhi, Shri P P Chaudhary, Shri Chintamani Maharaj, Dr. Vinod Kumar Bind, Shri Hasmukhbhai Somabhai Patel, Shri Pratap Chandra Sarangi, Shri Miteshbhai Rameshbhai Patel

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 1181 TO BE ANSWERED ON 03/12/2024

## Computerization and Strengthening of Primary Cooperative Societies

†1181. Shri Chintamani Maharaj:

Shri P P Chaudhary:

Smt. Bijuli Kalita Medhi:

Shri Dilip Saikia:

Shri Pratap Chandra Sarangi:

Shri Mitesh Patel Bakabhai:

Dr. Vinod Kumar Bind:

Shri Hasmukhbhai Somabhai Patel:

Will the Minister of COOPERATION ( सहकारिता मंत्री ) be pleased to state:

- (a)  whether  the  Government  has  implemented  any  scheme  for  computerisation  of  primary cooperative societies, if so, the details thereof including the funds allocated and utilized during the last three years;
- (b) the number of primary cooperative societies that have been computerised so far and that are yet to be computerised, State-wise;
- (c)  whether  the  Government  has  set  any  targets  for  complete  computerisation  of  primary cooperative societies, if so, the timeline thereof;
- (d) the details of number of regular employees of these societies trained in this regard along with the number of employees appointed through outsourcing in this regard;
- (e)  the  steps  taken  by  the  Government  towards  strengthening  of  primary  cooperative  societies through computerisation;
- (f)  the  other  steps  taken  by  the  Government  to  strengthen  and  modernize  primary  cooperative societies including capacity building, infrastructure development and digital literacy training; and (g) whether any assessment has been conducted to evaluate the impact of computerisation on the functioning of these societies, if so, the details thereof along with its benefits for farmers?

## ANSWER

## THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a)  Yes,  Sir.  Government of India, in order to strengthen of Primary Agricultural Cooperative Societies (PACS), is implementing the Project for Computerization of functional PACS with a total financial outlay of ₹2,516 Crore, which entails bringing all the functional PACS onto an ERP (Enterprise Resource Planning) based common national software, linking them with National Bank for Agriculture and Rural Development (NABARD) through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs). The ERP (Enterprise Resource Planning) based common  national  software  brings  about  efficiency  in  PACS  performance  through  Common Accounting System (CAS) and Management Information System (MIS). So far, proposals for computerization of 67,930 PACS from 30 States/ UTs have been sanctioned, for which a total of Rs 865.81 crore have been released to States/ UTs concerned including  Rs. 699.89 crore as GoI share to the States/UTs concerned and Rs 165.925 crore to NABARD being implementing agency as per the guidelines issued by Department of Expenditure, Ministry of Finance from time to time.

The details including the funds allocated and utilized during the last three years are attached as Annexure-I.

(b) The details on number of primary cooperative societies that have been computerised so far and that are yet to be computerised, State-wise are attached as Annexure-II.

(c) The Government of India has initiated a Centrally Sponsored Project to computerize functional Primary Agricultural Credit Societies (PACS) over a five-year period from 2022-23 to 2026-27. Thus, the sunset date of the project is 31.03.2027

(d) The number of PACS officials/employees who have received training on ERP is 26,882. As per  the  project  guidelines,  there  is  no  provision  for  financial  support  for  hiring  outsourced employees by PACS.

(e) Reply to part (a) may kindly be referred to.

(f) The Ministry of Cooperation, since its inception on 6 th July 2021, has taken many initiatives to strengthen  and  deepen  the  cooperative  movement  at  the  grassroots  level  including  capacity building, infrastructure development and digital literacy training for various stakeholders of the cooperative sector, such as 'Model Bye-Laws for PACS  making them multipurpose, multidimensional  and  transparent  entities',  'Establishing  New  Multipurpose  PACS/  Dairy/ Fishery Cooperatives in uncovered Panchayats', 'Pilot project for World's Largest Decentralized Grain  Storage  Plan  in  Cooperative  sector',  'Computerization  of  the  offices  of  Registrar  of Cooperative Societies of States/ UTs', 'Computerization of Agriculture and Rural Development Banks (ARDBs)', 'Computerization of functional Primary Agricultural Credit Societies (PACS)', 'National Cooperative Database', 'Amendment of the Multi-State Cooperative Societies (MSCS) Act, 2002', 'Reliefs to Cooperative Societies in the Income Tax Act', 'Initiatives for revival of Cooperative  Sugar  Mills',  'Establishment  of  three  new  national-level  multi-state  cooperative societies for seed, organic products and exports', etc.  The details on all these major initiatives are attached as Annexure-III.

(g)  The  Ministry  of  Cooperation  (MoC)  has  adopted  a  multi-layered  approach  to  evaluate  the impact of computerisation at the grassroots level for ensuring effective implementation of these projects. Regular monthly review meetings are conducted with States/UTs to assess the progress of various initiatives including computerization of PACS.  Key stakeholders such as NABARD, NDDB, NFDB, and others have been roped in to review the progress of various initiatives through their National, State and District level officials and machinery. National Level Monitoring and Implementation Committee (NLMIC), State and District Level Implementation and Monitoring Committees (SLIMC  and  DLIMC)  have  been  formed  to review especially the  PACS Computerization Project. Further, State Cooperative Development Committee (SCDC) has been constituted  at  the  State  level  under  the  chairmanship  of  the  Chief  Secretary  and  District Cooperative Development Committee (DCDC) has been constituted at the district level under the chairmanship of the District Collectors to ensure effective implementation and monitoring of all the initiatives, including computerization of PACS of Ministry of Cooperation.

Further,  NITI  aayog  is  evaluating  the  Centrally  Sponsored  Schemes  (CSS)  in  the Agriculture & Allied Sector for which letter of Award has been issued to NABCONS (NABARD Consultancy  Services  Private  Limited)  on  GeM  portal  on  21.10.2024.  The  impact  assessment includes "Computerization of PACS" and "Strengthening of Cooperatives through IT interventions" projects of this Ministry.

Primary Agriculture Credit Societies (PACS) constitute the lowest tier of the Short-Term Cooperative Credit Structure (STCCS) in the country, primarily providing short-term and mediumterm  credit  facility  and  other  input  services,  like  seed,  fertilizer,  pesticide  distribution,  etc.  to member farmers. Presently, around 13 crore farmers are linked with PACS. Being the grassroots level cooperative institutions, PACS play a crucial role in sustaining the rural economy of the country by purveying institutional credit to small and marginal farmers. Computerization of PACS project improved governance and transparency in PACS, leading to speedy disbursal of loans, lowering  of  transaction  cost,  reduction  in  imbalances  in  payments,  seamless  accounting  with DCCBs and StCBs. It enhances trustworthiness in the working of PACS among farmers, thus contributing towards realizing the vision of 'Sahakar se Samridhi'.

*****

Annexure-I

|       |                  | FY 2022-23                      | FY 2022-23                    | FY 2022-23                    | FY 2023-24                      | FY 2023-24                     | FY 2023-24                     | FY 2024-25                      | FY 2024-25                     | FY 2024-25                     |
|-------|------------------|---------------------------------|-------------------------------|-------------------------------|---------------------------------|--------------------------------|--------------------------------|---------------------------------|--------------------------------|--------------------------------|
| S. No | States/UTs       | Amount allocated for FY 2022-23 | Amount released in FY 2022-23 | Amount utilized in FY 2022-23 | Amount allocated for FY 2023-24 | Amount released in FY 2023- 24 | Amount utilized in FY 2023- 24 | Amount allocated for FY 2024-25 | Amount released in FY 2024- 25 | Amount utilized in FY 2024- 25 |
| 1.    | Maharashtra      | 87.95                           | 87.95                         | 0                             | 134.58                          | 33.65                          | 71.88                          | 27.81                           | 0                              | 2.58                           |
| 2.    | Rajasthan        | 23.78                           | 23.78                         | 0                             | 78.06                           | 43.3                           | 44.05                          | 52.42                           | 0                              | 10.15                          |
| 3.    | Gujarat          | 0                               | 0                             | 0                             | 106.7                           | 58.3                           | 7.39                           | 44.37                           | 22.19                          | 46.96                          |
| 4.    | Uttar Pradesh    | 11.28                           | 11.28                         | 0                             | 43.87                           | 42.3                           | 24.1                           | 50.88                           | 0                              | 10.92                          |
| 5.    | Karnataka        | 40.25                           | 40.25                         | 0                             | 61.58                           | 15.39                          | 36.67                          | 21.17                           | 0                              | 1.21                           |
| 6.    | Madhya Pradesh   | 33.23                           | 33.23                         | 0                             | 50.85                           | 25.42                          | 43.47                          | 0                               | 0                              | 5.78                           |
| 7.    | Tamil Nadu       | 33.2                            | 33.2                          | 0                             | 49.84                           | 12.48                          | 25.78                          | 24.95                           | 0                              | 3.45                           |
| 8.    | Bihar            | 32.95                           | 32.95                         | 0                             | 50.41                           | 0                              | 4.48                           | 29.32                           | 0                              | 28.47                          |
| 9.    | West Bengal      | 30.54                           | 30.54                         | 0                             | 46.73                           | 0                              | 6.45                           | 40.49                           | 0                              | 6.35                           |
| 10.   | Punjab           | 25.52                           | 25.52                         | 0                             | 39.05                           | 0                              | 10.2                           | 13.32                           | 0                              | 7.06                           |
| 11.   | Andhra Pradesh   | 14.93                           | 14.93                         | 0                             | 22.84                           | 3.74                           | 0                              | 18.12                           | 0                              | 13.04                          |
| 12.   | Chhattisgarh     | 14.86                           | 14.86                         | 0                             | 22.75                           | 0                              | 4.51                           | 20.41                           | 10.21                          | 10.45                          |
| 13.   | Himachal Pradesh | 9.56                            | 9.56                          | 0                             | 14.64                           | 7.32                           | 13.13                          | 6.18                            | 0                              | 3.05                           |
| 14.   | Jharkhand        | 10.99                           | 10.99                         | 0                             | 16.83                           | 0                              | 5.45                           | 15.1                            | 7.55                           | 5.55                           |
| 15.   | Haryana          | 4.85                            | 4.85                          | 0                             | 8.33                            | 2.44                           | 0                              | 3                               | 0                              | 6.9                            |
| 16.   | Uttarakhand      | 0                               | 0                             | 0                             | 0                               | 3.69                           | 0                              | 7.03                            | 0                              | 0.12                           |
| 17.   | Assam            | 6.41                            | 6.41                          | 0                             | 9.81                            | 2.45                           | 6.41                           | 6.6                             | 3.3                            | 2.27                           |
| 18.   | J&K              | 5.25                            | 5.25                          | 0                             | 8.03                            | 1.52                           | 5.25                           | 3.71                            | 1.85                           | 1.52                           |
| 19.   | Tripura          | 2.95                            | 2.95                          | 0                             | 4.5                             | 1.13                           | 3.55                           | 3.03                            | 1.52                           | 2.04                           |
| 20.   | Manipur          | 2.55                            | 2.55                          | 0                             | 3.9                             | 0                              | 0                              | 3.86                            | 0                              | 0.11                           |
| 21.   | Nagaland         | 0.36                            | 0.36                          | 0                             | 0.56                            | 2.46                           | 0.64                           | 3.2                             | 0                              | 1.64                           |

| 22.   | Meghalaya         |   1.23 |   1.23 |   0 |   1.13 |      0 |   1.03 |   1.97 |     0 |   0.23 |
|-------|-------------------|--------|--------|-----|--------|--------|--------|--------|-------|--------|
| 23.   | Sikkim            |   1.18 |   1.18 |   0 |   1.8  |   0.9  |   1.59 |   0.79 |  0    |   0.31 |
| 24.   | Goa               |   0.32 |   0.32 |   0 |   0.5  |   0.13 |   0.3  |   0.44 |  0    |   0.12 |
| 25.   | ANI               |   0    |   0    |   0 |   1.33 |   0.69 |   0    |   0.84 |  0    |   0.62 |
| 26.   | Puducherry        |   0.44 |   0.44 |   0 |   0.67 |   0.17 |   0.41 |   0.29 |  0    |   0    |
| 27.   | Mizoram           |   0.27 |   0.27 |   0 |   0.43 |   0    |   0.21 |   0.44 |  0.44 |   0.06 |
| 28.   | Arunachal Pradesh |   0.15 |   0.15 |   0 |   0.24 |   0.12 |   0.21 |   0.09 |  0    |   0.05 |
| 29.   | Ladakh            |   0    |   0    |   0 |   0.31 |   0.12 |   0.12 |   0.04 |  0    |   0    |
| 30.   | DNH&DD            |   0    |   0    |   0 |   0    |   0    |   0    |   0.12 |  0.12 |   0    |
| 31.   | NABARD            | 100    | 100    |   0 | 187.97 |  40.91 |  96.16 | 100    | 25    |  33.48 |
|       | Total             | 495    | 495    |   0 | 968.24 | 298.62 | 413.42 | 500    | 72.18 | 204.5  |

| Status of Computerization of PACS (as on 21.11.2024)   | Status of Computerization of PACS (as on 21.11.2024)   | Status of Computerization of PACS (as on 21.11.2024)   | Status of Computerization of PACS (as on 21.11.2024)   | Status of Computerization of PACS (as on 21.11.2024)   | Status of Computerization of PACS (as on 21.11.2024)   | Status of Computerization of PACS (as on 21.11.2024)   |
|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|
| S. No                                                  | States                                                 | PACS selected for Computerization                      | PACS tendered for Hardware                             | Digitization of records (DCT)Completed                 | PACS Computerized as on 21.11.24                       | PACS yet to be onboarded on ERP                        |
| 1.                                                     | Maharashtra                                            | 12,000                                                 | 12,000                                                 | 11,631                                                 | 9,161                                                  | 2,839                                                  |
| 2.                                                     | Rajasthan                                              | 6,781                                                  | 5,492                                                  | 3,834                                                  | 3,025                                                  | 3,756                                                  |
| 3.                                                     | Gujarat                                                | 5,754                                                  | 5,754                                                  | 5,423                                                  | 3,838                                                  | 1,916                                                  |
| 4.                                                     | Uttar Pradesh                                          | 5,686                                                  | 3,062                                                  | 2,949                                                  | 2,505                                                  | 3,181                                                  |
| 5.                                                     | Karnataka                                              | 5,491                                                  | 5,491                                                  | 4,046                                                  | 487                                                    | 5,004                                                  |
| 6.                                                     | Madhya Pradesh                                         | 4,536                                                  | 4,534                                                  | 4,531                                                  | 4,524                                                  | 12                                                     |
| 7.                                                     | Tamil Nadu                                             | 4,532                                                  | 4,532                                                  | 4,530                                                  | 4,494                                                  | 38                                                     |
| 8.                                                     | Bihar                                                  | 4,495                                                  | 4,477                                                  | 4,345                                                  | 4,043                                                  | 452                                                    |
| 9.                                                     | West Bengal                                            | 4,167                                                  | 4,167                                                  | 521                                                    | 148                                                    | 4,019                                                  |
| 10.                                                    | Punjab                                                 | 3,482                                                  | 3,482                                                  | 1,973                                                  | 1,580                                                  | 1,902                                                  |
| 11.                                                    | Andhra Pradesh                                         | 2,037                                                  | 2,037                                                  | 30                                                     | 30                                                     | 2,007                                                  |
| 12.                                                    | Chhattisgarh                                           | 2,028                                                  | 2,028                                                  | 2,028                                                  | 2,019                                                  | 9                                                      |
| 13.                                                    | Himachal Pradesh                                       | 1,789                                                  | 870                                                    | 865                                                    | 829                                                    | 960                                                    |
| 14.                                                    | Jharkhand                                              | 1,500                                                  | 1,500                                                  | 1,435                                                  | 1,403                                                  | 97                                                     |

| 15.   | Haryana           | 710    | 710    | 703    | 687    | 23     |
|-------|-------------------|--------|--------|--------|--------|--------|
| 16.   | Uttarakhand       | 670    | 670    | 185    | 185    | 485    |
| 17.   | Assam             | 583    | 583    | 579    | 567    | 16     |
| 18.   | J&K               | 537    | 537    | 533    | 532    | 5      |
| 19.   | Tripura           | 268    | 268    | 254    | 247    | 21     |
| 20.   | Manipur           | 232    | 232    | 50     | 23     | 209    |
| 21.   | Nagaland          | 231    | 231    | 33     | 33     | 198    |
| 22.   | Meghalaya         | 112    | 112    | 108    | 108    | 4      |
| 23.   | Sikkim            | 107    | 107    | 106    | 104    | 3      |
| 24.   | Goa               | 58     | 58     | 37     | 32     | 26     |
| 25.   | ANI               | 46     | 46     | 46     | 44     | 2      |
| 26.   | Puducherry        | 45     | 45     | 42     | 31     | 14     |
| 27.   | Mizoram           | 25     | 25     | 25     | 25     | 0      |
| 28.   | Arunachal Pradesh | 14     | 14     | 14     | 14     | 0      |
| 29.   | Ladakh            | 10     | 10     | 10     | 9      | 1      |
| 30.   | DNH&DD            | 4      |        |        | 0      | 4      |
|       | Total             | 67,930 | 63,074 | 50,866 | 40,727 | 27,203 |

## ANNEXURE -III

## Progress on major initiatives taken by Ministry of Cooperation

Ministry  of  Cooperation,  since  its  inception  on  6 th   July,  2021,  has  undertaken  several initiatives  to  realize  the  vision  of  'Sahakar-se-Samriddhi'  and  to  strengthen  & deepen the cooperative  movement  from  Primary  to  Apex  level  Cooperatives  in  the  country.  List  of initiatives taken and progress made so far are as follows:

## A.  Making Primary Cooperatives economically vibrant and transparent

1.  Model Bye-Laws for PACS making them multipurpose, multidimensional and transparent entities : Government, in consultation with all the stakeholders, including States/ UTs, National Level Federations, State Cooperative Banks (StCBs), District Central  Cooperative  Banks  (DCCBs),  etc.,  has  prepared  and  circulated  Model Byelaws for PACS to all the States/ UTs, which enable PACS to undertake more than 25 business activities, improve governance, transparency and accountability in their operations. Provisions have also been made to make the membership of PACS more inclusive and broad-based, giving adequate representation to women and Scheduled Castes/Schedules Tribes. So far, 32 States/ UTs have adopted Model Byelaws or their existing byelaws are in line with Model Byelaws.
2.  Strengthening of PACS through Computerization :  In order to strengthen PACS, project for Computerization of functional PACS with a total financial outlay of ₹2,516 Crore  has  been  approved  by  the  Government  of  India,  which  entails  bringing  all functional PACS in the Country onto a common ERP based national software, linking them with NABARD through StCBs and DCCBs. A total of 67,930 PACS from 30 States/ UTs have been sanctioned under the project. A total of 40,727 PACS have been  onboarded  on  ERP  Software  and  hardware  has  been  procured  by  29 States/UTs.
3.  Establishing New Multipurpose PACS/ Dairy/ Fishery Cooperatives in uncovered Panchayats : The Government of India has approved the plan to establish new multipurpose PACS/dairy/fisheries cooperatives, aiming to cover all panchayats and villages  in  the  country  over  the  next  five  years.  This  initiative  is  supported  by

NABARD, NDDB, NFDB and State/UT Governments. For effective implementation of the initiative, 'Margadarshika' has been launched on 19.9.2024, indicating the targets and timelines for stakeholders. As per National Cooperative Database, a total of 8,823 new PACS, Dairy and Fishery Cooperative Societies have been registered across the country since the approval of the plan on 15.2.2023.

4.  World's  Largest  Decentralized  Grain  Storage  Plan  in  Cooperative  sector : Government  has  approved  a  plan  to  create  warehouses,  custom  hiring  centers, primary processing units and other agri infrastructure for grain storage at PACS level, through convergence of various GOI schemes, including AIF, AMI, SMAM, PMFME, etc. This will reduce wastage of food grains and transportation costs, enable farmers to realize better prices for their produce and meet various agricultural needs at the PACS level itself. Under the pilot project, construction of godowns in 11 PACS of 11 States has been completed.
5.  PACS as Common Service Centers (CSCs) for better access to e-services : An MoU has been signed between Ministry of Cooperation, MeitY, NABARD and CSC eGovernance Services India Limited for providing more than 300 e-services such as banking,  insurance,  Aadhar  enrolment/  updation,  health  services,  PAN  card  and IRCTC/  Bus/  Air  ticket,  etc.  through  PACS.  So  far,  40,214  PACS  have  started providing CSC services to rural citizens.
6.  Formation of new Farmer Producer Organizations (FPOs) by PACS : Government has allowed 1,100 additional FPOs to be formed by PACS with the support of NCDC, in those blocks where FPOs have not yet been formed or the blocks are not covered by any other implementing agency. Apart from this, 1,207 FPOs have been formed in the  cooperative  sector  by  NCDC.  This  will  be  helpful  in  providing  farmers  with necessary market linkages and get fair and remunerative prices for their produce.
7.  PACS given priority for  Retail  Petrol/  Diesel  outlets :  Government  has  allowed PACS to be included in the Combined Category 2 (CC2) for allotment of retail petrol/ diesel outlets. As per information received from Oil Marketing Companies (OMCs), 286 PACS from 25 States/UTs have applied online for retail petrol/ diesel outlets.
8.  PACS  given  permission  to  convert  bulk  consumer  petrol  pumps  into  retail outlets :  The  existing  bulk  consumer  licensee  PACS  have  been  given  a  one-time option by Oil Marketing Companies to convert into retail outlets. As per information shared by OMCs, 109 wholesale consumer pump licensee PACS from 4 States have given consent for conversion into Retail Outlets, out of which 45 PACS have received Letter of Intent (LOI) from the OMCs.
9.  PACS eligible for LPG Distributorship for diversifying its activities : Government has now allowed PACS to apply for LPG Distributorships. This will give PACS an option to increase their economic activities and diversify their income stream.
10.  PACS as PM Bharatiya Jan Aushadhi Kendra for improving access to generic medicines  at  rural  level :  PACS  have  been  allowed  to  operate  Pradhan  Mantri Bhartiya Janaushadhi Kendras (PMBJKs), which will provide additional income source to them and ease the access to quality generic medicines for rural citizens. So far, 4,470  PACS/  cooperative  societies  have  applied  online  for  PMBJKs,  out  of  which 2,705 PACS have been given initial approval by Pharmaceutical & Medical Devices Bureau of India (PMBI) and 755 PACS have received drug license from State Drug Controllers which are ready to function as PM Bhartiya Jan Aushadhi Kendras.
11.  PACS as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK): PACS have been enabled  to operate  PMKSK  for  ensuring  easy  accessibility  of  fertilizer  &  related services to farmers in the country. As per the information shared by Department of Fertilizers (GOI) and States/ UTs, a total of 36,180 PACS are functioning as PMKSK.
12.  PACS to carry out O&M of rural piped water supply schemes (PWS) : PACS have been made eligible to carry out the Operations & Maintenance (O&M) of PWS in rural areas.  As  per  information  received  from  States/  UTs,  1,227  PACS  have  been identified/ selected by 13 States/ UTs to provide O&M services at Panchayat/ Village level.
13.  Convergence of PM-KUSUM at PACS level :  Farmers associated with PACS can adopt solar agricultural water pumps and install photovoltaic modules in their farms.
14.  Micro-ATMs  to  Bank  Mitra  Cooperative  Societies  for  providing  doorstep financial  services :  Dairy  and  Fisheries  cooperative  societies  can  be  made  Bank Mitras of DCCBs and StCBs. To ensure their ease of doing business, transparency and financial  inclusion,  Micro-ATMs  are  also  being  given  to  these  Bank  Mitra  Cooperative  Societies  with  support  from  NABARD  to  provide  'Door-step  Financial Services'.  To  facilitate  effective  implementation  of  the  initiative,  an  SOP  has  been launched on 19 th  September 2024. So far, 7,446 Micro-ATMs have been distributed to Bank Mitra cooperative societies in Gujarat.
15.  Rupay Kisan Credit Card to Members of Milk Cooperatives : In order to expand the reach of DCCBs/ StCBs and to provide necessary liquidity to the members of Dairy Cooperative societies, Rupay Kisan Credit Cards (KCCs) are being distributed to the members of cooperatives for providing credit at comparatively lower interest rates and to  enable  them  to  carry  out  other  financial  transactions.  To  facilitate  effective implementation of the initiative, an SOP has been launched on 19 th  September 2024. So far, 7,25,795 Rupay KCC have been distributed in the State of Gujarat.
16.  Formation  of  Fish  Farmer  Producer  Organization  (FFPO) :  In  order  to  provide market linkage and processing facilities to fishermen, NCDC has registered 70 FFPOs in  the  initial  phase.  In  addition,  Department  of  Fisheries,  Government  of  India has allocated  the  work  of  converting  1000  existing  fisheries  cooperative  societies  into FFPOs to NCDC, with an approved outlay of Rs. 225.50 crore.
17.  White Revolution 2.0 : Ministry of Cooperation, Government of India, has launched a new  initiative  of  'White  Revolution  2.0'  with  the  aim  of  enhancing  employment, promoting women's empowerment and improving milk production through cooperative societies. The key objectives of this initiative are 50% increase in procurement of milk by dairy cooperatives, providing market access to dairy farmers in areas that have not yet  been  covered  by  the  organized  dairy  sector  and  promoting  the  share  of  dairy cooperative  societies  in  the  organized  dairy  sector.  Ministry  of  Cooperation,  in collaboration with the National Dairy Development Board (NDDB), has prepared and

launched an SOP on 19 th  September, 2024 to guide the effective implementation of this initiative.

18.  Atmanirbharta  Abhiyan :  Ministry  of  Cooperation  has  launched  the  initiative  to incentivize  production  of  pulses  (tur,  masur  and  urad)  to  reduce  dependency  on imports, and production of maize to be used for production of ethanol for meeting the goal  of  Ethanol  Blending  Programme  (EBP).  National  Cooperative  Consumer Federation  (NCCF)  and  National  Agricultural  Cooperative  Marketing  Federation  of India (NAFED) are the central nodal agencies under this initiative, and have developed Esamyukti (NCCF) and Esamridhi (NAFED) portals respectively, for registration of farmers  through  cooperatives.  For  pre-registered  farmers  of  tur,  urad  and  masur pulses, the Government has guaranteed to procure 100% of the produce at Minimum Support Price (MSP). However, if market prices exceed the MSP, farmers are free to sell their produce in the open market for higher profits. Similarly, both the agencies guarantee  100%  procurement of maize  from  pre-registered  farmers  throughout  all three seasons - Kharif, Zaid, and Rabi, thus ensuring a steady supply of maize to ethanol distilleries and at the same time also encouraging farmers to cultivate maize. As of today, 15,38,704 farmers have already registered on the Esamyukti.in portal of NCCF and 17,64,130 on the Esamridhi portal of NAFED.

## B.  Strengthening the Urban and Rural Cooperative Banks

19.  Urban Cooperative Banks (UCBs) have been allowed to open new branches to expand their business: UCBs can now open new branches up to 10% (maximum 5 branches) of the existing number of branches in the previous financial year without prior approval of RBI.
20.  UCBs have been allowed by RBI to offer doorstep services to their customers:

Door step banking facility can now be provided by UCBs. Account holders of these banks can now avail various banking facilities at home such as cash withdrawal, cash deposit, KYC, demand draft and life certificate for pensioners, etc.

21.  Cooperative  banks  have  been  allowed  to  make  one-time  settlement  of outstanding loans, like Commercial Banks: Co-operative banks, through board-

approved policies, can now provide the process for settlement with borrowers, along with technical write-off.

22.  Time limit increased to achieve Priority Sector Lending (PSL) targets given to UCBs :  RBI has extended the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by two years i.e., up to March 31, 2026.
23.  A Nodal Officer designated in RBI for regular interaction with UCBs : In order to meet the long pending demand of the cooperative sector for closer coordination and focused interaction, RBI has notified a nodal officer.
24.  Individual housing loan limit more than doubled by RBI for Rural and Urban Cooperative Banks:
- a.  Housing loan limit of Urban Cooperative Banks has now been doubled from Rs. 30 lakh to Rs.60 lakhs.
- b.  Housing loan limit of Rural Cooperative Banks has been increased to two and a half times to Rs.75 lakhs.
25.  Rural  Cooperative Banks will now be able to lend to commercial real estate/ residential housing sector, thereby diversifying their business : This will not only help  Rural  Cooperative  Banks  to  diversify  their  business,  but  will  benefit  Housing cooperative societies also.
26.  License  fee  reduced  for  Cooperative  Banks : License fee for onboarding Cooperative Banks to 'Aadhaar Enabled Payment System' (AePS) has been reduced by linking it to the number of transactions. Cooperative financial institutions will also be able to get the facility free of cost for the first three months of the pre-production phase. With this, farmers will now be able to get the facility of banking at their home with through biometrics.
27.  Non-scheduled UCBs, StCBs  and DCCBs  notified as Member  Lending Institutions (MLIs) in CGTMSE Scheme to increase the share of cooperatives in lending: Cooperative banks will now be able to take advantage of risk coverage up

to 85 percent on the loans given. Also, cooperative sector enterprises will also be able to get collateral free loans from cooperative banks now.

28.  Notification of Scheduling norms for including Urban Cooperative Banks: UCBs that  meet  the  'Financially  Sound  and  Well  Managed'  (FSWM)  criteria  and  have maintained the minimum deposits required for classification as Tier 3 for the last two years are now eligible to be included in Schedule II of the Reserve Bank of India Act, 1934 and get 'Scheduled' status.
29.  Monetary ceiling doubled by RBI for Gold Loan: RBI has doubled monetary ceiling from Rs. 2 lakh to Rs.4 lakh, for those UCBs that meet the PSL targets.
30.  Umbrella Organization for Urban Cooperative Banks : RBI has accorded approval to  the  National  Federation  of  Urban  Co-operative  Banks  and  Credit  Societies  Ltd. (NAFCUB) for the formation of an Umbrella Organization (UO) for the UCB sector, which will provide necessary IT infrastructure and operational support to around 1,500 UCBs.

## C.  Relief to Cooperative Societies in the Income Tax Act

31.  Surcharge reduced from 12% to 7% for co-operative societies having income between Rs. 1 to 10 Cr.: This will reduce the burden of Income Tax on Cooperative Societies and more capital will be available with them to work for the benefit of their members.
32.  MAT reduced for cooperatives from 18.5% to 15%: With this provision, now there is parity between Cooperative Societies and Companies in this regard.
33.  Relief in cash transactions under section 269ST of the Income Tax Act: In order to remove difficulties in cash transactions by cooperatives under Section 269ST of IT Act, Government has issued a clarification that cash transaction of less than Rs. 2 lakhs done by a cooperative society with its distributor in a day will be considered separately, and will not be charged with income tax penalty.
34.  Tax cut for new manufacturing Cooperative societies: Government has decided that a flat lower tax rate of 15% will be charged, compared to an earlier rate of up to 30% plus surcharge, for new cooperatives commencing manufacturing activities by March 31, 2024. This will encourage the formation of new cooperative societies in the manufacturing sector.
35.  Increase in limit of Cash Deposits and Cash Loans by PACS and PCARDBs: Government has enhanced the limit for Cash Deposits and Cash Loans by PACS and Primary  Cooperative  Agriculture  and  Rural  Development  Banks  (PCARDBs)  from Rs.20,000  to  Rs.2  lakh  per  member.  This  provision  will  facilitate  their  activities,

increase their business and benefit members of their societies.

36.  Increase  in  the  limit  of  Tax  Deducted  at  Source  (TDS)  in  Cash  Withdrawal: Government has increased the cash withdrawal limit of cooperative societies without deduction of tax at source from Rs.1 crore to Rs.3 crore per year. This provision will save Tax Deducted at Source (TDS) for cooperative societies, which will enhance their liquidity.

## D.  Revival of Cooperative Sugar Mills

37.  Relief  from  Income  Tax  to  Sugar  Cooperative  Mills :  Government has issued a clarification that cooperative sugar mills would not be subjected to additional income tax for paying higher sugarcane prices to farmers up to Fair and Remunerative or State Advised Price, from April, 2016 onwards.
38.  Resolution  of  decades  old  pending  issues  related  to  Income  Tax  of  Sugar Cooperative Mills : Government has made a provision in its Union Budget 2023-24, wherein  Sugar  cooperatives  have  been  allowed  to  claim  as  expenditure  their payments to sugarcane farmers for the period prior to assessment year 2016-17, giving them a relief of more than Rs.46,000 crore.
39.  Rs.10,000 crore loan scheme launched for strengthening of Sugar Cooperative Mills :  Government  has  launched  a  scheme  through  NCDC  for  setting  up  ethanol plants or cogeneration plants or for working capital or for all three purposes. So far,

the Ministry has released Rs. 750 crore to NCDC (Rs. 500 crore in FY 2022-23 and Rs. 250 crore in FY 2024-25) under the scheme and as on 7.11.2024, NCDC has so far sanctioned Rs.7790.00 crore to 56 CSMs.

40.  Preference to Cooperative Sugar Mills in purchase of ethanol : Cooperative Sugar Mills have now been put at par with private companies for ethanol procurement by Government of India under the Ethanol Blending Programme (EBP).
41.  Reduction  in  GST  on  molasses  from  28%  to  5%: Government  has  decided  to reduce the GST on molasses from 28% to 5% which will enable cooperative sugar mills  to  earn more profits for their members by selling molasses to distilleries with higher margins.

## E.  Three new National Level Multi-State Societies

42.  New National Multi-State Cooperative  Seed  Society for certified  seeds : Government has established a new apex multi-state cooperative seed society under the MSCS Act, 2002, namely Bharatiya Beej Sahakari Samiti Limited (BBSSL) as an umbrella organization for quality seed cultivation, production and distribution under a single brand. BBSSL so far has planted breeder seeds of Wheat, Mustard, and Pulses (Gram, Pea) on 366 Hectare land during Rabi season. Similarly, during Kharif season breeder seeds of Paddy, Moong, Soyabean, Groundnut, Jowar and Guar have been planted on 148.26 Hectare land. So far, 14,816 PACS/ Cooperative Societies have become members of BBSSL.
43.  New  National  Multi-State  Cooperative  Organic  Society  for  organic  farming : Government  has  established  a  new  apex  multi-state  cooperative  organic  society under the MSCS Act, 2002, namely National Cooperative Organics Limited (NCOL) as an umbrella organization to produce, distribute and market certified and authentic organic products. So far, 3,772 PACS/ cooperative societies have become members of NCOL. NCOL has launched 13 products i.e., Whole Wheat Flour, Moong Dhuli, Moong Whole, Moog Chilka Dal, Moog Split, Arhar/Toor Dal, Urad Whole, Urad Dal,

Masoor Whole, Masoor Malka,Brown Chana, Rajma Chitra, Chana Dal under 'Bharat Organics Brand'.

## 44. New  National  Multi-State  Cooperative  Export  Society  for  promoting  exports :

Government has established a new apex multi-state cooperative export society under the  MSCS  Act,  2002,  namely  National  Cooperative  Export  Limited  (NCEL)  as  an umbrella organization to give thrust to exports from cooperative sector. So far, 5,438 PACS/ cooperative societies have become members of NCEL. Till date, NCEL has achieved a total export quantity of commodities (rice, sugar, onion, wheat, maize and Jeera) of 11,62,728 Metric tonnes with an exported value of Rs. 4,581.7 crore.

## F.  Capacity Building in Cooperatives

45.  Promotion of training and awareness through National Council for Cooperative Training  (NCCT) :  By  increasing  its  reach,  NCCT  has  conducted  1,937  training programs and provided training to 1,09,021 participants till October 2024.

## G.  Use of Information Technology for 'Ease of Doing Business'

46.  Computerization of the Central Registrar's Office :  Central Registrar's office has been  computerized  to  create  a  digital  ecosystem  for  Multi-State  Cooperative Societies, which will assist in processing applications and service requests in a time bound manner.
47.  Scheme for computerization of office of RCSs in States/Union Territories :  To increase  'Ease  of  doing  business'  for  Cooperative  Societies  and  create  a  digital ecosystem for transparent paperless regulation in all the States/ Union Territories, a Centrally Sponsored Project for computerization of RCS Offices has been approved by the Government. Grants are provided for purchase of hardware, development of software, etc. to the States/ UTs. So far, proposals received from 35 States/ UTs have been sanctioned by GOI.
48.  Computerization  of  Agriculture  and  Rural  Development  Banks  (ARDBs) :  To strengthen the long-term cooperative credit structure, the project of computerization of 1,851 units of Agriculture and Rural Development Banks (ARDBs) spread across 13 States/ Union Territories has been approved by the Government. NABARD is the implementing agency for the project. So far, proposals from 10 States/UTs have been received and sanctioned. Further, GOI share amounting to Rs 4.26 crore has been released to 8 States/UTs in FY 2023-24 and FY 2024-25 for procurement of hardware, digitization and setting up of support system.

## H.  Other Initiatives

49.  New National Cooperative Database for authentic and updated data repository :

A database of cooperatives in the country has been prepared with the support of State Governments  to  facilitate  stakeholders  in  policy  making  and  implementation  of programmes/ schemes related to cooperatives across the country. So far, data of more than 8 lakh cooperatives has been captured in the database.

50.  Multi-State Co-operative Societies (Amendment) Act, 2023 : Amendment has been brought in the MSCS Act, 2002 to strengthen governance, enhance transparency, increase accountability, reform electoral process and incorporate provisions of 97 th Constitutional Amendment in the Multi State Cooperative Societies.
51.  Cooperative Ombudsman: Following the amendment in the Multi-State Cooperative Societies (MSCS) Act, 2002, Cooperative Ombudsman has been appointed under Section  85A  of  the  said  Act  vide  gazette  notification  dated  05.03.2024.  The Ombudsman  office  is  fully  functional  and  deals  with  complaints  or  appeals,  from members of the MSCS regarding their deposits, equitable benefits of the Multi-State Co-operative Society's functioning or any other issue affecting the individual rights of the concerned member.
52.  Cooperative Election Authority (CEA): Following the amendment in the Multi-State Cooperative Societies (MSCS) Act, 2002, the Cooperative Election Authority has been set up to strengthen governance and accountability, with a mandate to conduct free
4. and fair election in all MSCSs. Elections in more than 60 MSCS have been conducted successfully.
53.  Inclusion of Cooperatives as 'buyers' on GeM portal :  Government has permitted cooperatives  to  register  as  'buyer'  on  GeM,  enabling  them  to  procure  goods  and services from over 67 lakhs vendors to facilitate economical purchases and greater transparency. So far, 574 cooperative societies have been onboarded on GeM as buyers. To date, 2,406 transactions have been done with transaction amount of Rs. 273.62 crores.
54. Expansion  of  National  Cooperative  Development  Corporation  (NCDC)  to increase its range and depth : NCDC has launched new schemes in various sectors such  as  'SwayamshaktiSahkar'  for  SHGs;  'Deerghavadhi  Krishak  Sahkar'  for  long term agricultural credit and 'Dairy Sahkar' for dairy. During the current FY 2024-25, so far, total financial assistance of Rs. 52,533 crores has been disbursed by NCDC.
55.  Financial assistance by NCDC for Deep Sea Trawlers : NCDC is providing financial assistance  for  projects  related  to  deep  sea  trawlers  in  coordination  with  the Department  of  Fisheries,  Government  of  India.  NCDC  has  already  sanctioned financial assistance of Rs. 25.95 crore for purchase of total 44 deep sea trawlers for the Fisheries Cooperative Societies of Maharashtra and Gujarat State.
56.  Refund to Investors of Sahara Group of Societies : A portal has been launched for making payments to the genuine depositors of the cooperative societies of Sahara Group  in  a  transparent  manner.  Disbursements  have  already  started  after  proper identification and submission of proof of their deposits and claims. So far, Rs.1248.71 crores have been disbursed to 8.23 lakhs applicants.

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