Lok Sabha Question No. 3196 (UNSTARRED), answered on 2023-08-08
Subject: Objectives of CSISAC
Ministry: COOPERATION
Asked by: Bhartruhari Mahtab

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 3196 TO BE ANSWERED ON 08/08/2023

## Objectives of CSISAC

## 3196. SHRI BHARTRUHARI MAHTAB:

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

- (a) the objectives of Central Sector Integrated Scheme on Agriculture Cooperation (CSISAC) ;
- (b) the changes in Revised Estimate 2022-23 and Budget Estimate of 2023-24 of CSISAC;
- (c) the reasons for significant reduction in budget allocation under the scheme; and
- (d) the details of schemes that would substitute CSISAC?

## ANSWER

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

(a):  The  Central  Sector  Integrated  Scheme  on  Agricultural  Cooperation  (CSISAC)  was  the result  of  merger  of  two  erstwhile  schemes  of  11th  Five  Year Plan  viz;  Restructured  Central Sector  Scheme  for  Assistance  to  National  Cooperative  Development  Corporation  (NCDC) Programmes for  Development  of  Cooperatives  and  Central  Sector  Scheme  for  Education  & Training.

The main objectives of the scheme were following:

- i. to provide financial assistance for improving the economic  conditions of cooperatives,
- ii. remove  regional imbalances and to speed up cooperative development  in agricultural and allied sectors,
- iii. to help cotton growers to fetch remunerative price for their produce through value addition  besides  ensuring  supply  of  quality  yarn  at  reasonable  rates  to  the decentralized  weavers,  overall  development  of  selected  districts  in  the  country through cooperative efforts in agriculture and allied sectors and
- iv. to assist National Level Cooperative Federation/ Multi State Cooperative Societies (MSCS)  in  the  agriculture  and  allied  sector  to  undertake  promotional  and  skill development activities.

(b) & (c): An initial allocation of Rs. 50.00 Cr. was made under CSISAC in Budget Estimates (BE) 2022-23, which was subsequently increased to Rs. 664.96 Cr. under Revised Estimates (RE)  2022-23  to  meet  the  committed  liabilities  of  NCDC.  The  Government  had  approved continuation of CSISAC Scheme till 31.03.2023 only. However, for continuation of scheme in the financial year 2023-24 to meet the residual committed liabilities of NCDC, a token amount of Rs. 0.01 Cr. has been allocated under BE 2023-24.

(d):  In  order  to  realise  the  vision  of  'Sahakar  Se  Samriddhi',  Ministry  of  Cooperation  with active  participation  of  various  States/  UTs  has  taken  various  initiatives  to  revitalize  and strengthen the cooperative sector across the country, 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 agri-infra 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 : Approval of 1,100 additional  FPOs 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 :  For  providing  additional  income  source  to  PACS,  they  have  also  been  allowed  to operate Pradhan Mantri Bhartiya Janaushadhi Kendras.
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% has been fixed, compared with current rate of up to 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 multi-state 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: Decision for establishment of National Cooperative University 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: The Bill has been passed by  the  Lok  Sabha  and  the  Rajya  Sabha  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.

*****