Lok Sabha Question No. 204 (STARRED), answered on 2024-08-06
Subject: Computerization of PACS
Ministry: COOPERATION
Asked by: Shri Dilip Saikia

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA STARRED QUESTION NO. 204 TO BE ANSWERED ON 06/08/2024

## Computerization of PACS

## † * 204.  SHRI DILIP SAIKIA:

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

- (a)  the  manner in  which software is being developed under the project for computerization of Primary Agricultural Credit Societies (PACS) by the Government;
- (b)  whether  the  software  used  under  PACS Computerisation  project  is  integrable  with  already computerised PACS, if so, the details thereof;
- (c) the type of modules included in the software for various activities of PACS; and
- (d)  the  manner  in  which  the  said  software  is  likely  to  bring  transparency  in  the  activities  and business diversification of PACS?

## ANSWER

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

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

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (d)  OF  LOK  SABHA STARRED QUESTION NO. 204 DUE FOR REPLY ON 06 th  AUGUST, 2024

(a): Government  of  India  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 NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs). So far, proposals  for  computerization  of  67,930  PACS  from  30  States/  UTs have been sanctioned, for which Rs. 654.23 Cr. has been released as GoI share to the States/UTs concerned.  The  National  Level  Common  Software  for  the  project  has  been  developed  by NABARD and 25,674 PACS have been onboarded on ERP software in 27 States/ UTs. This common ERP software is being provided to all the PACS in the project, across the country, to capture  data  on  all  functionalities  of  PACS,  both  credit  and  non-credit.  This  software  is customisable  for  state  specific  needs.  At  the  national  level,  NABARD  has  engaged  a  vendor namely  National  Level  PACS  Software  Vendor  (NLPSV)  to  provide  the  common  software including cyber security and data storage through open bidding as per the relevant procurement guidelines.

(b):  Yes Sir, The software used under PACS Computerisation project is integrable with already computerised  PACS.  As  per  the  guidelines  of  the  project,  PACS  which  have  already  been computerised,  expenditure  will  be  reimbursed  to  States  ₹50,000/-  per  PACS  subject  to  the condition  that  they  integrate  their  software  with  the  National  PACS  Software.  Also,  their hardware  meets  the  required  specifications  and  the  computerization  of  PACS  should  be commissioned by the State on or after 01 February 2017 i.e. the date of budget announcement by Central Government for computerization of PACS.

PACS which have not been computerised by such states are being taken up under this project at full  cost.  For  sustainability  of  the  project,  maintenance  and  handholding  of  the  software  and hardware  is  considered  critical.  For  this  purpose,  the  Project  envisages  a  support  system  by setting up one support centre. These support centres, are being set up by the System Integrator(s) and reporting to State PMUs which also serves as State level support centre. This entire support system  is  under  the  overall  supervision  and  control  of  the  State  Governments  and  are  being operated by the concerned SI.

(c): In order to increase the viability of PACS and diversify their business activities to make them vibrant economic entities at Panchayat level, Model Byelaws for PACS have been prepared by the Government after consultation with all the stakeholders and circulated to all the States/ UTs  on  5 th January,  2023  for  their  adoption  by  PACS  after  making  suitable  changes  as  per respective State Cooperative Acts. Computerization of PACS  project aims to provide a comprehensive ERP solution for entailing more than 25 economic activities prescribed under the Model Bye-Laws for PACS covering various modules such as financial services for short, medium & long term loans, procurement operations, Public Distribution Shops (PDS) operations, business planning, warehousing, merchandising, borrowings, asset management, human resource management, etc.

(d): 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).  Further,  governance  and  transparency  in  PACS  also  improves, leading  to  speedy  disbursal  of  loans,  lowering  of  transaction  cost,  reduction  in  imbalances  in payments, seamless accounting with DCCBs and StCBs. It will enhance trustworthiness in the working of PACS among farmers, thus contributing towards realizing the vision of 'Sahakar se Samridhi'.

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