Lok Sabha Question No. 732 (UNSTARRED), answered on 2023-07-25
Subject: Modernization of Cooperative Institutes
Ministry: COOPERATION
Asked by: Sougata Ray

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 732 TO BE ANSWERED ON 25/07/2023

## Modernization of Cooperative Institutes

## 732. PROF. SOUGATA RAY:

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

- (a)  the  details  of  measures  taken  by  the  Government  to  modernize  the  functions  of cooperative institutes in the country;
- (b)  whether  any  State  Government  has  raised  objections  regarding  modernization  of cooperative institutions; and
- (c) if so, the details thereof?

THE MINISTER OF COOPERATION सहकाįरता मंũी (SHRI AMIT SHAH)

- (a) to (c): In order to strengthening cooperative movement in the country; deepening its reach to the grassroots; modernize the functions of the cooperative institutions including cooperative societies from primary to apex level; the Ministry of Cooperation in coordination with State Governments, other Ministries of Government of India, Cooperative Federations and other stakeholders has taken various initiatives such as:
- 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.

## ANSWER

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 :  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 by the Cooperative Banks.
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 : Cooperative Sugar Mills  will  be  put  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  : National  Cooperative University being established for Cooperativeeducation, training, consultancy, research and development and a sustainable and quality supply of trained manpower.
38. New  Scheme  of  Cooperative  Education  and  Training :  To  strengthen  the  cooperative movement, build capacity of faculty  of V AMNICOM, NCCT and JCTC, promote quality research and studies on important areas of Cooperative sector, etc. One-time capital grant of Rs.  30  Cr.  has  also  been  provided  to  V AMNICOM  for  modernization/  construction  of hostels, auditorium, sports facilities, cafeteria, 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 : This will create a digital ecosystem for Multi-State Cooperative Societies, which will assist in processing applications and service requests in a time bound manner.
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, the project of computerization of Agriculture and Rural Development Banks (ARDBs) is being undertaken.
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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