Ministry of Cooperation

 To realize the Prime Minister Shri Narendra Modi’s Vision of “Prosperity through Cooperation”, a separate Ministry of Cooperation was established on July 6, 2021. Under the able guidance of the first Minister of Cooperation of the Country Shri Amit Shah, this newly created Ministry of Cooperation has taken many new initiatives and historical steps for the strengthening of Cooperative Sector in a short span of time.

      To strengthen the Cooperative movement, Ministry of Cooperation has taken 54 major initiatives, through which all cooperative societies are getting new possibilities for their economic development and expansion. Through this document, brief information is being provided on these new initiatives which will prove to be beneficial for the stakeholders of the Cooperative sector of the Country.

(A) Economic strengthening of Primary Co-operative Societies

1. Model Bye-Laws for making PACS Multipurpose

Minister of Cooperation Shri Amit Shah believes that PACS will be more empowered and economically viable when they are multi-purpose. Therefore, under his leadership the Model Bye-laws for PACS were prepared by the Ministry of Cooperation after consultation with all States/UTs, National Federations and other stakeholders and were circulated on 05 January 2023. This will increase the sources of income of PACS/LAMPS and create new employment opportunities in more than 25 new sectors like dairy, fisheries, storage, etc. So far, they have been adopted by 31 States/Union Territories and the work of adoption in other States is in progress.

2. Strengthening of PACS through Computerization

To enhance the efficiency of PACS, computerization of PACS/LAMPS has been started. Total 62,318 functional PACS/LAMPS are being linked with NABARD through a single National Software Network. So far, proposals for computerization of a total of 62,208 PACS have been received from 25 States and 4 Union Territories. For this, a total of Rs 575.75 crore has been released by the Central government to the States for hardware purchase, digitization and setting up support systems. National Integrated Software has been prepared by NABARD. Minister of Cooperation Shri Amit Shah believes that this will bring transparency in PACS and will significantly increase public trust in functioning of PACS. The hardware has been procured by 20 States/UTs. Trial run is ongoing in 6,117 PACS across 26 States/UTs and 988 PACS have gone live.

3. Establishment of Multipurpose PACS/Dairy/Fisheries Cooperative Societies in every Panchayat/Village

Under the leadership of Prime Minister Shri Narendra Modi, the Cabinet on 15th February, 2023 approved this scheme with the target of setting up new Multi-purpose PACS/Dairy/Fisheries Cooperative Societies in the Panchayats/Villages not covered so far, in the next 5 years. Under this, various schemes of the Government of India will be converged at the level of primary Cooperative Societies. Inter-Ministerial Committee (IMC), National Level Coordination Committee (NLCC), State Level Cooperative Development Committees (SCDC) and District Level Cooperative Development Committees (DCDC) have been formed for the implementation of this scheme. As per the directions of Minister of Cooperation meetings are being held by the Ministry with all the States. Action plan related to the establishment of new Societies has been prepared by NABARD, NDDB and NFDB and under this scheme, the work of formation of 9,961 new multipurpose PACS/Dairy/Fisheries Cooperative Societies is going on in 23 States/Union Territories.

4. World's largest Decentralized Grain Storage Program in Cooperative sector to ensure food security

Under the leadership of Prime Minister Shri Narendra Modi, the Cabinet on 31st May, 2023 approved the World's largest food storage scheme in the Cooperative sector. Under this scheme, different types of agricultural infrastructure such as godowns, custom hiring centres, processing units, fair price shops, etc. will be created by convergence of various schemes of the Government of India at the PACS level. Minister of Cooperation Shri Amit Shah is giving special emphasis on this scheme as he believes that it will ensure food security of the country, reduce wastage of food grains, result in better price for farmers for their produce and meet various agricultural needs at the PACS level itself. For the implementation of this scheme, a Pilot project is going on in 24 PACS of 24 States/Union Territories with the cooperation of the states, out of which construction work has started in 13 States. Further, 1779 PACS have been identified in 27 States/UTs for participation in second phase of Pilot Project. This scheme is being coordinated by Inter-Ministerial Committee (IMC), National Level Coordination Committee (NLCC), State Level Cooperative Development Committee (SCDC) and District Level Cooperative Development Committee (DCDC).

5. PACS as Common Service Centres (CSCs) for better access to e-Services

In the presence of Minister of Cooperation Shri Amit Shah, MoU has been signed on 02.02.2023 between Ministry of Cooperation, Ministry of Electronics and Information Technology, NABARD and CSC e-Governance Services India Limited for providing CSC services through PACS, after which PACS have now become capable of providing more than 300 e-services provided by CSC. Till date more than 48,000 PACS have been onboarded as CSC and the work on onboarding of other PACS is also in progress. The onboarded PACS are also being provided training by CSC-SPV and NABARD. More than 25,000 PACS have started providing services as CSCs and transactions worth Rs 10.08 crore have been done through these PACS. Minister of Cooperation Shri Amit Shah inaugurated this project on July 21, 2023 at Vigyan Bhawan, New Delhi. There is a plan to provide CSC facilities through all the functional PACS/LAMPS of the country which are being computerized by January 2024.

 

6. Formation of new Farmer Producer Organizations (FPOs) by PACS

Under the FPO scheme, it has been decided to allot 1100 additional FPOs to the National Cooperative Development Corporation (NCDC) in cooperative sector. Now, PACS will be able to do other economic activities related to agriculture as FPOs. This initiative will also be helpful in providing the members of the cooperative societies with the necessary market linkage to get fair and remunerative prices for their produce. Minister of Cooperation Shri Amit Shah inaugurated this project on July 14, 2023 at IECC, Pragati Maidan, New Delhi. An action plan has been prepared by NCDC for formation of FPOs in 629 uncovered blocks of 16 states/union territories.

7. Eligibility of PACS for LPG Distributorship 

Under the guidance of Minister of Cooperation Shri Amit Shah, the Ministry of Cooperation is working with a strong commitment to increase the coverage of PACS. Making PACS eligible for LPG distributorship by the decision taken on 13th March, 2023 is an important step towards this direction. Petroleum Ministry has amended its rules to make PACS eligible for LPG distributorship, after which PACS will also be able to distribute LPG. Guidelines have been issued for obtaining LPG distributorship by PACS. Advertisement has been issued for 2 districts in Jharkhand state; advertisements for others will be released soon. This will give PACS an option to increase their economic activities and create new employment opportunities in rural areas.

8. Permission to convert Bulk Consumer Petrol Pump operated by PACS into retail outlets

On the initiative of the Ministry of Cooperation, the Ministry of Petroleum and Natural Gas gave consent on 13th March, 2023 to convert the existing bulk consumer licensee PACS into retail outlets. Government of India has invited online applications for converting the bulk consumer petrol pumps operated by PACS into retail outlets. So far, 109 PACS from 5 States having bulk consumer pumps have given consent for conversion into Retail Outlets, out of which 43 PACS have received Letter of Intent (LOI) from Oil Marketing Companies (OMCs). This provision will increase the profits of PACS and create new employment opportunities in rural areas.

9. Priority to PACS for new Petrol/Diesel Pump dealerships.

In an important decision taken on 13 March 2023, PACS have also been given priority for petrol/diesel dealerships. Online applications were invited by Oil Marketing Companie s (OMCs)/Petroleum Ministry by issuing advertisement for allotment of new Petrol/Diesel pumps under Combined Category 2 (CC-2) to PACS. Till now a total of 228 PACS from 24 States/UTs have applied. This provision will increase the profits of PACS and create new employment opportunities in rural areas.

10. PACS as Jan Aushadhi Kendra for access to generic medicines at Rural level

In a meeting held on June 06, 2023 under the Chairmanship of the Minister of Cooperation Shri Amit Shah with the Ministry of Chemicals and Fertilizers, it was decided to open 1,000 Jan Aushadhi Kendras by August, 2023 and 2,000 Jan Aushadhi Kendras by December, 2023 at identified PACS. With this initiative, cheaper generic medicines will be available to the common people at the Village/Block level and PACS will get additional employment opportunities. Interested PACS have been identified and encouraged by the State Government to apply online. So far, 4289 PACS from 34 States/UTs have applied for Jan Aushadhi Kendra, out of which preliminary approval to 2293 PACS has also been given.

11. PACS as Pradhan Mantri Kisan Samridhi Kendra (PMKSK)

On June 06, 2023, in a meeting held under the Chairmanship of Minister of Cooperation Shri Amit Shah with the Minister of Chemicals and Fertilizers, it was decided to upgrade the PACS already functioning as fertilizer distribution centres as Pradhan Mantri Kisan Samridhi Kendras (PMKSK). It was also decided to make PACS act as drone entrepreneurs for spraying fertilizers and pesticides. Additionally, drones can also be used for property surveys. This will create new business opportunities for PACS and increase their profits. and 29,112 PACS are functioning as PMKSK. As per information provided by States/UTs, 29,119 PACS in 22 States/UTs have been upgraded to PMKSK; the remaining are in progress.

12. Micro-ATMs to Bank Mitra Cooperative Societies with the help of NABARD

Dairy and Fisheries cooperative societies have also been made Bank Mitra of District Central Cooperative Banks and State Cooperative Banks. To ensure their ease of doing business, transparency and financial inclusion, Micro-ATMs are also being given to these Bank Mitra Co-operative Societies with support from NABARD to provide 'Door Step Financial Services'. Minister of Cooperation Shri Amit Shah inaugurated this Pilot project on July 12, 2023 with the distribution of the cards to the account holders of the Panchmahal and Banaskantha District Central Cooperative Banks. The target is to implement it nationwide. So far, more than 1723 Micro-ATMs have been distributed.

13. RuPay Kisan Credit Card to Members of Cooperative Societies

A Pilot project has been started by Minister of Cooperation Shri Amit Shah on 12th July, 2023 in Panchmahal and Banaskantha districts of Gujarat to expand the reach and capacity of Rural Co-operative Banks and to provide necessary liquidity to the members of rural Co-operative Societies. Under this project, Bank Accounts of all the members of the cooperative societies are being opened in the concerned District Central Cooperative Banks and with the support of NABARD, Rupay-Kisan Credit Cards (KCCs) are being distributed to the account holders. Through RuPay-Kisan Credit Card, loans will be available to members of the Cooperative Societies at reasonable rate and members can also use this Card for other financial transactions. This pilot project is targeted to be implemented nationwide in coming days.  So far,73,503 KCCs have been distributed.

14. PACS as Paani Samiti

In order to utilize the reach of PACS in rural areas, on the initiative of the Ministry of Cooperation and taking an important decision on 11th July, 2023, Ministry of Jal Shakti has written a Letter to all the States to make PACS eligible as ‘Paani Samiti’ to undertake the work of Operation and Maintenance (O&M) of Piped Water Supply schemes in rural areas. This step will strengthen the O&M work of water supply schemes in rural areas as well as create new employment opportunities for PACS. So far, 1,611 PACS have been selected/identified in 15 states; others are in process under this initiative.

15. Convergence of PM-KUSUM Scheme at PACS Level

The structure and reach of PACS, which have direct linkage with 13 Crore farmer members, can be leveraged to set up decentralized solar power plants at the Panchayat level. With this, farmers connected to PACS could be able to ensure their energy security. Further, PACS and its member farmers will get alternative sources of income. The Ministry of Cooperation is in discussion with the Ministry of New and Renewable Energy on this subject.

16.  Formation of Fish Farmer Producer Organization (FFPO)

 In order to provide market linkage and providing processing facilities to the fishermen, NCDC has registered 69 FFPOs in the initial phase. On 31st March, 2023, Department of Fisheries, Government of India has further allocated conversion of 1000 existing fisheries cooperative societies into FFPOs to NCDC, with an approved outlay of Rs. 225.50 crore.

(B) Three new Multi-State Cooperative Societies at the National Level

Under the leadership  of Prime Minister Shri Narendra Modi and guidance of Minister of Cooperation Shri Amit Shah, the Ministry of Cooperation constituted three new Multi-State Cooperative Societies for Exports, Certified Seeds and Organic Products on 11th January, 2023.

17. New National Level Multi-State Cooperative Society for Exports

Under the Multi-State Cooperative Societies Act, 2002, a new National Cooperative Exports Limited (NECL) has been set up as an Umbrella organization to promote exports from the cooperative sector. Cooperative societies from Primary to National level including District, State, National level federations and Multi-State Cooperative Societies can become its members. Through this Society, the Export of farmers' products will be facilitated and the farmers will get better price for their products. So far, 2,624 applications for membership have been received from 22 States/UTs. In the Chairmanship of Minister of Cooperation, a National Seminar on Export through Cooperative was organized on 23rd October, 2023 in PUSA, New Delhi. As of November 17, 2023, the Department of Commerce has given permission to NCEL for the export of approximately 14.92 LMT of White Rice (non-Basmati) to various countries by way of notification issued by DGFT and 50,000 MT of Sugar each to Nepal & Bhutan under notification by Directorate of Sugar, DFPD.

 

18.  New National Level Multi-State Cooperative Society for Certified Seeds

Under the Multi-State Cooperative Societies Act, 2002, a new Bhartiya Beej Sahakari Samiti Limited (BBSSL) has been set up as an Umbrella organization for cultivation, production and distribution of improved seeds under a single brand name. Cooperative Societies (Primary, District and State level) of States/Union Territories can become its members. This Society will increase availability of improved seeds to the farmers, boost productivity of crops and enhance the income of the farmers. A National Seminar on the production of improved and traditional seeds in the cooperative sector was organized under the chairmanship of the Minister of Cooperation at Vigyan Bhawan, New Delhi on October 26, 2023.

19.  New National Level Multi-State Cooperative Society for Organic Farming

The National Cooperative Organics Limited (NCOL) has been established under the Multi-State Cooperative Societies Act, 2002 as an Umbrella organization which will work for production, distribution and marketing of certified and authentic organic products. Primary to National level cooperative societies including District, State, National level federations, Multi-State Cooperative Societies, and Farmer Producer Organizations (FPOs) can become its members. This will increase production of organic products and increase the profit of the farmers. So far, 2,614 applications for membership have been received from 24 States/UTs. NCOL has launched sale of 06 products i.e., Toor Dal, Chana Dal, Sugar, Moong, Jowar Atta & Besan under Bharat Organics brand. A National Seminar on promoting organic products through cooperation was organized under the chairmanship of Minister of Cooperation, in Pusa, New Delhi on November 08, 2023.

(C) Relief in Income Tax Law for Co-operative Societies

20. Reduction in surcharge on Income Tax for Cooperative Societies

Minister of Cooperation Shri Amit Shah has made untiring efforts with the objective of bringing parity between cooperative sector and companies. The surcharge on Income Tax for Cooperative Societies with income from Rs 1 Crore to Rs 10 Crore has been reduced from 12% to 7% at par with Companies. This will reduce the burden of Income Tax on Cooperative Societies and more capital will be available with the societies to work for the benefit of the members.

21.  Reduction in Minimum Alternate Tax (MAT) on Cooperative Societies

In the Budget 2022-23, The Government of India, has reduced the Minimum Alternate Tax rate for Cooperative Societies from 18.5% to 15%. With this provision, now there is parity between Cooperative Societies and Companies in this regard. This will strengthen cooperative societies and Cooperative Sector will expand.

22.  Increase in limit of Cash Deposits and Cash Loans by PACS and PCARDBs

The limit for Cash Deposits and Cash Loans by PACS and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) has been increased from Rs 20,000 to Rs 2 lakh per member by the Government of India in the Budget 2023-24. This provision will facilitate their activities, increase their business and benefit the members of societies.

23. Tax cut for new manufacturing Cooperative Societies

The Government of India in the Budget 2023-24 made provision that new manufacturing cooperative societies commencing manufacturing operations by March 31, 2024, will be taxed at a flat rate of 15% as against the existing tax rate of up to 30% with surcharge. With this provision, now there is parity between Cooperative Societies and companies in this regard. This will encourage the formation of new cooperative societies in the manufacturing sector.

24. Increase in the limit of Tax Deducted at Source (TDS) in Cash Withdrawal

Under the leadership of Prime Minister Shri Narendra Modi and the guidance of Minister of Cooperation Shri Amit Shah, Union Government through the Budget 2023-24, 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 they will be able to use to work for the benefit of their members.

25. Relief in cash transactions under section 269ST of the Income Tax Act

Section 269ST of IT Act prohibits any person to receive an amount of Rs. 2 lakh and above in cash; in aggregate from a person in a day, or in a single transaction, or in respect of transactions relating to one event or occasion from a person. The Income Tax Department earlier treated the 'Contract' between a milk cooperative and its distributor as 'one event' and if the cumulative cash receipt, in all the transactions with that distributor, in the entire year was more than Rs. 2 lakh income tax penalty was imposed on such cooperatives. The Income Tax Department has issued a circular on 30th September, 2022 making it clear that now the 'Contract' made by cooperative societies with their distributors will not be considered as ‘one event’. With this clarification, cash transaction less than 2 lakhs done by a cooperative society with its distributor in a day will be considered separately, and they will not be charged with income tax penalty. With this, State and District milk unions will now be able to receive payment less than Rs. 2 lakh per day in cash from their distributors and do payment in cash to member milk producers during Bank holidays.

(D) Strengthening of Office of Central Registrar of Cooperative Societies

26. Computerization of Central Registrar's Office

The office of the Central Registrar is responsible for administering the Multi State Co-operative Societies (MSCS) Act, 2002. The office of the Central Registrar is being computerized to create a digital ecosystem for Multi-State Cooperative Societies. This will help in processing applications and service requests in a time bound manner through electronic work flow at the Central Registrar's Office. It has provisions for OTP based user registration, verification check for compliance with MSCS Act and Rules, hearing through VC, issue of registration certificate and other communication, electronically. Minister of Cooperation Shri Amit Shah inaugurated this digital portal on August 06, 2023.

27. The Multi-State Co-operative Societies (Amendment) Act,2023

The Multi-State Co-operative Societies (Amendment) Act, 2023 aims to amend Multi-State Co-operative Societies Act, 2002 to incorporate the provisions of the 97th Constitutional Amendment and to strengthen governance, increase transparency and accountability, improve election process, etc in Multi-State Cooperative Societies. This Bill was introduced in the Lok Sabha on December 7, 2022, and was referred to a Joint Parliamentary Committee of both the Houses on December 20, 2022. The Bill has been passed by the Lok Sabha on July 25, 2023 and by the Rajya Sabha on August 01, 2023.The Multi-State Co-operative Societies (Amendment) Act, 2023 has come into force from 3rd August, 2023.

 

(E) Revival of Cooperative Sugar Mills

28. Relief from Income Tax to Cooperative Sugar Mills

Cooperative Sugar Mills will not have to pay additional income tax on payment of higher sugarcane prices to farmers up to the fair and remunerative price or the State advised price. With this provision, Cooperative Sugar Mills will now be able to give higher price of sugarcane to their members and they will get income tax deduction on this higher expenditure.  According to the clarification issued on 25.10.2021, this provision is applicable from 01.04.2016 and since then, farmer members are getting this benefit through cooperative sugar mills.

29. Resolving decades old pending issues related to income tax of Cooperative Sugar Mills

Under the leadership of Prime Minister Shri Narendra Modi and untiring efforts of Minister of Cooperation Shri Amit Shah, provision has been made through the Union Budget 2023-24 that the payments made by Cooperative Sugar Mills to sugarcane farmers before the assessment year 2016-17 will be allowed to be claimed as expenditure. For this, a new sub-section 19(1) has been included in Section 155 of Income Tax. CBDT has also issued Standard Operating Procedure in this regard on 27.07.2023. As per report given by National Federation of Cooperative Sugar Factories Limited this has benefited cooperative sugar mills to the tune of Rs. 46,524 Crore, thus resolving decade pending Income Tax issues.

30.  Rs. 10,000 crore loan scheme through NCDC for strengthening of Cooperative Sugar Mills

Ministry of Cooperation has launched a new scheme named 'Grant-in-aid to NCDC for Strengthening of Cooperative Sugar Mills', under which Government of India would give grant of Rs.1,000 crore to NCDC during Financial Year 2022-23 and 2023-24. NCDC will use this grant to provide loans up to Rs. 10,000 crores to Cooperative Sugar Mills, which they will be able to use for setting up ethanol plants or for setting up cogeneration plants or for working capital or for all three purposes. So far, Rs. 3010.57 Crore has been approved by NCDC for 24 Cooperative Sugar Mills.

 

31. Preference in purchase of ethanol to Cooperative Sugar Mills and establishment of Cogen Power Plants

Cooperative Sugar Mills will be put at par with private companies for ethanol procurement by the Ministry of Petroleum under the Ethanol Blending Programme (EBP). Work is also being done on setting up cogeneration power plants from sugarcane bagasse. With these steps, the business of Cooperative Sugar Mills will expand and in result their profits will also increase.

32. Reduction in GST on Molasses from 28% to 5% to help Cooperative Sugar Mills

The government has taken an important decision on 07th October, 2023 to reduce GST on molasses from the current rate of 28% to 5%. This will increase the liquidity of distilleries as molasses is the raw material for their operations. They will require less working capital due to lower GST. Cooperative sugar mills which do not have ethanol or distillery plants can earn more profits by selling their molasses to distilleries with higher margins.

(F) Redressal of difficulties faced by Co-operative Banks

Under the leadership of Prime Minister Shri Narendra Modi and untiring efforts of the Minister of Cooperation Shri Amit Shah, many important decisions have been taken by RBI to resolve the difficulties being faced by the Cooperative Banks in their business.

33.  09 June, 2023- Urban Co-operative Banks (UCBs) will now be able to open new branches to expand their business. Cooperative Banks will also be able to make one-time settlement of outstanding loans, like Commercial Banks.
34.  09 June, 2023- Additional time limit has been given to achieve the Priority Sector Lending (PSL) targets given to UCBs.
35.  25 May, 2023- A Nodal Officer has been designated in RBI for regular interaction with UCBs.
36. 11 August, 2022- Now, District Central Cooperative Banks have permission to open new branches/set up ATMs or to change the locations of their offices.
37.  Guidelines issued on 08 June, 2022- RBI has permitted UCBs to provide door-step banking services to their customers.
38.  Guidelines issued on 08 June, 2022 -RBI has more than doubled the individual housing loan limit for Rural and Urban Co-operative Banks.
39.  Guidelines issued on 08 June, 2022 - Rural Co-operative Banks will now be able to lend to commercial real estate - residential housing sector, thereby diversifying their business.
40.  Circular dated 03rd February, 2022 - Co-operative Banks have been included as Member Lending Institutions [MLIs] of CGTMSE. With this, now the member Co-operative Banks will be able to take advantage of risk coverage up to 85 percent on the loans given. Along with this, the cooperative sector enterprises will also now be able to get collateral free loans from Co-operative Banks.
41.  RBI Circular dated 05th April, 2023 - License fee for onboarding Co-operative Banks to the modern 'Aadhaar Enabled Payment System' (AePS) has been reduced by linking it to the number of transactions. Apart from this, 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 their fingerprints.
42. Notification of scheduling norms for urban co-operative banks has been published by the Government

The Government of India vide Notification dated 04th September, 2023-Urban co-operative banks that meet FSWM criteria and have maintained the minimum deposits required for classification as Tier 3 for the last two years are now eligible to get 'Scheduled' status.

43. RBI vide guidelines issued on 06th October, 2023 has doubled the monetary ceiling for Gold Loan under Bullet Repayment Scheme from 2 Lakh to 4 Lakh for those UCBs who meet the Priority Sector Lending (PSL) targets.
44. Umbrella Organization for Urban Cooperative Banks

On 11th August, 2023, 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 operation support to around 1,500 UCBs.

 

(G) Expansion of National Cooperative Development Corporation (NCDC)

45. New schemes for Cooperative Societies started by NCDC

New schemes for Cooperative Societies have been started by NCDC in various sectors such as 'Swayamshakti Sahakar' for self-help groups; 'Dirghavadhi Krishak Sahakar' for long term agricultural credit; 'Dairy Sahakar' for dairy and 'Nandini Sahakar' for women's cooperative institutions etc. In the financial year 2022-23, NCDC disbursed financial assistance of Rs.41,025 crore which is almost 20% higher than the disbursement of Rs.34,221 crore in 2021-22. The target is to disburse Rs 50,000 crore loan in the year 2023-24. All States and State Cooperative Societies can avail loan schemes of NCDC.

 

46.  Financial assistance by NCDC for Deep Sea Trawlers

As per the directions issued on 28th April, 2023, 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 20.30 crore for purchase of 14 deep sea trawlers for the Fisheries Cooperative Societies of Maharashtra.

(H) Inclusion of Cooperative Societies as 'Buyer' on GeM Portal

47. Under the leadership of Prime Minister Shri Narendra Modi, the Cabinet has approved Cooperative Societies to be registered as 'Buyer' on Government e-Marketplace (GeM) on 1st June, 2022. Minister of Cooperation Shri Amit Shah e-launched the onboarding of Cooperative Societies on the GeM Portal on 09 August 2022 in New Delhi. Cooperative Societies will now be able to buy from around 60 lakh authentic sellers/service providers available across the country on the single platform of GeM. So far 559 Cooperative Societies have been onboarded as buyers on the GeM portal. Further, Cooperative Societies are also being motivated to register as sellers on GeM.

(I) New National Cooperation Policy and New National Cooperative Database

48. Formulation of New National Cooperation Policy

In order to realize Prime Minister Shri Narendra Modi's vision of 'Prosperity through Cooperation', Minister of Cooperation Shri Amit Shah has decided to formulate a new Cooperation Policy in the country. A Multidisciplinary and National level committee consisting of 49 members comprising experts and stakeholders from different States and across the Country has been constituted under the leadership of former Union Minister Shri Suresh Prabhu to formulate the New Cooperation Policy to realize the concept of 'Prosperity through Cooperation'. So far, 17 meetings of the Expert Committee have been held, during which detailed discussions were held with the stakeholders and the new National Cooperation Policy is expected to be ready soon.

 

49.  New National Cooperative Database

Minister of Cooperation Shri Amit Shah believes that a database is necessary for the planned development of any sector of the Cooperatives and therefore, the work on developing a comprehensive, authentic and updated National Cooperative Database is being done in a phased manner by the Ministry of Cooperation with the assistance of State Governments. Under the First Phase, mapping of about 2.64 lakh societies of PACS, dairy and fisheries was completed in February, 2023. In the Second Phase, mapping of National Cooperative Societies and Federations was completed. So far, in the last phase, about 7.88 lakh cooperative societies have been included in the database.

(J) Education and Training in the Cooperative Sector

50. Establishment of Cooperative University

Minister of Cooperation Shri Amit Shah is of the view that planned development and empowerment of the Cooperative sector can happen only with trained manpower for which it is being planned to establish National Cooperative University for Cooperative education, training, consultancy, research and development. This University will ensure a sustainable, adequate and quality supply of trained manpower and work for capacity building of the existing personnel. This University will be first of its kind, a specialized University in the cooperative sector.

51. Promotion of training and awareness through NCCT

The National Council for Cooperative Training (NCCT), an autonomous institute under the Ministry of Cooperation, organizes cooperative education and training programs for personnel, members and board members of Cooperative Societies across the country, including personnel from Cooperative Departments of States/UTs. It conducts these programs through its 20 constituent training institutes (1 National Level-VAMNICOM, 14 State Level and 5 Regional Level) spread across the country. NCCT conducted 3287 training programs in the year 2022-23 against the target of 1740 training programs. In addition, during this period, the Council provided training to about 2,01,507 participants, which is five times more than the scheduled 43,500 participants.

To take the initiatives of the Ministry of Cooperation to the general public, NCCT published 370 articles in 12 different languages in more than 100 newspapers, whose total circulation was about 10 crores.

(K) Other Initiatives

52. Computerization of Agriculture and Rural Development Banks (ARDBs)

To strengthen the Long-term Cooperative Credit structure, the Ministry of Cooperation has approved a Centrally Sponsored Scheme for computerization of Agriculture and Rural Development Banks (ARDBs) on 08th October, 2023. It will have various components such as hardware procurement, comprehensive Enterprise Resource Planning (ERP) solutions, digitization, providing training and support, and maintenance of software, etc. 25 percent of the expenditure incurred in this scheme will be borne by the ARDBs and the remaining 75 percent by the Central and State governments. Computerization will provide various benefits to ARDBs, such as increased efficiency, faster loan disbursement, reduced transaction costs, increased transparency and lower imbalances of payments, etc.

 

53. Scheme for computerization of office of Registrar of Cooperative Societies in States/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, Ministry of Cooperation on 08th October, 2023 has approved a Centrally Sponsored Scheme for computerization of offices of Registrar of Cooperative Societies of all States/UTs. The software developed under this scheme will be based on the Cooperative Act of the respective State/UT.

 

54. Refund to Investors of Sahara Group of Societies

Under the guidance of Prime Minister Shri Narendra Modi and leadership of Minister of Cooperation Shri Amit Shah, Ministry of Cooperation filed a Petition in the Supreme Court and on the petition of the Ministry of Cooperation, the Supreme Court vide order dated 29.03.2023, directed to transfer Rs 5000 crore from Sahara-SEBI refund account to the Central Registrar of Co-operative Societies for disbursement of valid dues of the depositors of 4 Cooperative Societies of Sahara Group (Sahara Credit Cooperative Ltd., Saharayan Universal Multipurpose Society Ltd., Hamara India Credit Cooperative Society Ltd. and Stars Multipurpose Cooperative Society Ltd.).

Minister of Cooperation Shri Amit Shah launched the ‘Central Registrar - Sahara Refund Portal’(https://mocrefund.crcs.gov.in) in New Delhi on 18th July, 2023. Stockholding Documents Management Services Ltd. (SDMSL) has been engaged to develop a transparent digital system (portal) under the supervision and monitoring of former Justice for disbursement by the Central Registrar in compliance with the order of the Supreme Court. Four Officers on Special Duty (OSDs) have also been appointed by the Central Registrar for each of the above cooperative societies to supervise the refund process. The process of first phase payment to the depositors has started from August 04, 2023.Till 11.12.2023, Claims for Rs.81291.50 Crore have been received on 'CRCS-Sahara Refund Portal' from 3.35 Crore depositors. An amount of Rs. 215 Crore has been released to 2,36,066 depositors of Sahara Group of Cooperative Societies.

 

Implementation Strategy

1.       A “Chintan Shivir” was organized on March 09, 2023 under the Chairmanship of the Minister of Cooperation. All the Directors/Deputy Secretaries of the Ministry gave presentations on their respective works and received guidance from the Minister of Cooperation on their presentations. Ministry prepared an action plan based on the important suggestions received in the Chintan Shiver and started implementation on it.

2.       Letters have been written by the Minister of Cooperation to the Chief Ministers of all the states for the successful implementation of the Initiatives of the Ministry. Secretary (Cooperation) has also written to the Chief Secretary and other concerned officers for the implementation of the schemes from time to time.

3.       At National Level, regular review meetings under the Chairmanship of Secretary (Cooperation) are being held with concerned Departments, Agencies and the State Governments. So far 11 review meetings have been held with all the states.

4.       At State Level, State Cooperative Development Committees (SCDC) have been constituted under the chairmanship of the concerned Chief Secretary with Principal Secretary (Cooperation), Registrar Cooperative Societies (RCS), representatives of NABARD/NCDC etc. and Heads of concerned line departments. So far, 31 meetings of State Cooperative Development Committees have been held.

5.       At District Level, District Cooperative Development Committees (DCDC) have been constituted under the chairmanship of the concerned District Collector with District Registrar Cooperative Societies (DRCS) and Heads of concerned line departments. Till now, 823 meetings of District Cooperative Development Committees have been held.

 

Major programs related to Cooperation and the Ministry of Cooperation:

1. Prime Minister Shri Narendra Modi inaugurated the two-day 17th Indian Cooperative Conference at Pragati Maidan, New Delhi, the program was presided over by Union Home Minister and Minister of Cooperation Shri Amit Shah (01 July 2023).

• Prime Minister Shri Narendra Modi also launched the e-commerce website for Cooperative Marketing and the Cooperative Extension and Advisory Service portal
• The Prime Minister said, 'Farmer Producer Organizations (FPOs) are going to strengthen small farmers, they are a medium to make small farmers a big force in the market.

 

2. Union Minister of Cooperation Shri Amit Shah addressed the 42nd Foundation Day function of NABARD held at Pragati Maidan, New Delhi as the chief guest. (12 July 2023)

• On this occasion, Shri Amit Shah also distributed micro-ATM cards to milk committees and RuPay Kisan Credit Cards to the members of these committees.
• Under the leadership of Prime Minister Shri Narendra Modi, the villages of the country are becoming self-reliant and our agricultural economy, which is considered the soul of the rural economy, is also growing at a very fast pace.
• NABARD is not a bank but a mission to strengthen the rural system of the country.

 

3. Union Minister of Cooperation Shri Amit Shah inaugurated the National Seminar-2023 on the subject of FPOs in the cooperative sector in New Delhi and also released the action plan for formation of 1100 new FPOs by PACS. (14 July 2023)

• Modi government has made complete arrangements for the farmers from production to marketing through FPOs made from PACS.
• FPOs formed through PACS have the greatest potential to enrich farmers.
• Agriculture, animal husbandry and fisheries-based economic activities form the backbone of the Indian economy, together accounting for 18% of

4. Union Minister of Cooperation Shri Amit Shah launched the CRCS - Sahara Refund Portal https://mocrefund.crcs.gov.in/ in New Delhi. (18 July 2023)

• This portal has been developed for submission of claims by genuine depositors of Cooperative Societies of Sahara Group - Sahara Credit Cooperative Society Limited, Saharayan Universal Multipurpose Society Limited, Hamara India Credit Cooperative Society Limited and Stars Multipurpose Cooperative Society Limited.
• Refund process of Rs. 5,000 crore to investors begins with the launch of CRCS - Sahara Refund Portal. All such provisions have been made in this process so that there is no scope for any kind of manipulation or injustice to any genuine investor.
• The portal can also be accessed through the website of Ministry of Cooperation.

5. Union Minister of Cooperation Shri Amit Shah inaugurated a National Seminar on launching Common Services Center (CSC) services by Primary Agricultural Credit Societies (PACS) in New Delhi. (21 July 2023)

• More than 300 schemes of the Government of India and State Governments have been linked to CSC.
• There can be no better means than PACS to extend the reach of CSC to the poorest of the poor in the villages.
• With the unification of PACS and CSC, the facilities of the poor will not only increase but the rural economy will also get new energy and strength.

 

6. Union Minister of Cooperation Shri Amit Shah launched the digital portal of the Office of the Central Registrar of Cooperative Societies (CRCS) in Pune, Maharashtra. (6 August 2023)

• 1555 multi-state cooperative societies of the country will benefit from the digital portal.
• Modi government is also going to computerize the offices of the registrar of cooperative societies of the states, which will make communication with 8 lakh cooperative societies across the country easier.
• Modi government has decided to take the cooperative movement to every village by creating 3 lakh new PACS across the country in the next 5 years.

 

7. Union Minister of Cooperation Shri Amit Shah addressed the 'National Seminar on Cooperative Exports' organized by National Cooperative Exports Limited (NCEL) in New Delhi, along with the launch of NCEL's logo, website and brochure and membership to NCEL members. Certificates were also distributed. (23 October 2023)

• At least 50% of export profits will go to farmers through National Cooperative Export Limited.
• National Cooperative Export Limited has been started in the cooperative sector with 6 objectives like export, prosperity of farmers, changing crop pattern, global market for organic products, entry of India in the global market for biofuel and strengthening of cooperatives.
• NCEL will in the coming days become a complete export ecosystem with aspects like procurement, storage, processing, marketing, branding, labeling, packaging, certification, R&D.

 

8.  Union Minister of Cooperation Shri Amit Shah addressed the National Seminar on 'Improved and Traditional Seed Production in Cooperative Sector' by Bharatiya Seed Cooperative Society Limited (BBSSL) in New Delhi and also unveiled the Logo, Website and Brochure of BBSSL (26 October 2023)

• Modi government has established this cooperative society with the aim of providing certified and scientifically prepared seeds to every farmer in the country.
•  In the coming days, BBSSL will have a huge contribution in the field of seed conservation, promotion and research in India.
• The traditional seeds of India have to be conserved and passed on to the coming generations, so that the production of healthy grains, fruits and vegetables continues and this work will be done by BBSSL.
•  The profits of BBSSL will go directly into the bank accounts of seed producing farmers.

 

9. Union Home and Cooperation Minister Shri Amit Shah addressed the National Seminar on Promotion of Organic Products through Co-operation organized by National Cooperative Organics Limited (NCOL) in New Delhi as the Chief Guest. (8 November 2023)

• Shri Amit Shah launched the logo, website and brochure of NCOL and also distributed membership certificates to the members of NCOL.
•  National Cooperative Organics Limited was established to provide a platform to all the farmers practicing natural farming and to arrange for marketing of their products.
• The main objective of NCOL is to provide 50% of the profits from the products to small farmers.
•  This will be the biggest undertaking of the country in the next 5 years and will prove to be a big step towards achieving Prime Minister Modi's goal of keeping the people healthy.

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