GOVERNMENT OF INDIA
MINISTRY OF COOPERATION
RAJYA SABHA
UNSTARRED QUESTION NO. 1769
ANSWERED ON 07/08/2024
Sahkar se Samriddhi Scheme
1769 SHRI SANJAY SETH:
Will the Minister of COOPERATION be pleased to state:
(a) the details of recent achievements of the Sahkar se Samriddhi Scheme;
(b) the total number of Co-operative societies benefitted under Sahkar se Samriddhi Scheme;
(c) the total budget allocated for the Sahkar se Samriddhi Scheme in the current fiscal year
and the expenditure details thereof; and
(d) the manner in which this scheme is being used to create an economic impact in the tier2
and tier3 cities and rural areas?
ANSWER
THE MINISTER OF COOPERATION
(SHRI AMIT SHAH)
(a) & (b): The Government of India has carved out a new Ministry of Cooperation on 6.07.2021 to
realize the vision of “Sahakar-se-Samriddhi”, strengthen cooperative movement in the country,
deepen its reach to the grassroots, and transform cooperatives into successful and vibrant business
enterprises.
Ministry of Cooperation has taken various initiatives across the country including rural areas,
benefitting more than 8 Lakhs Cooperative Societies with more than 29 Crores members, the
details of which are placed below:
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 Bye-laws
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. The hardware has been procured
by 28 States/UTs. Total 25,674 PACS have been onboarded on ERP Software and
15,207 PACS have gone live.
3. Establishing New Multipurpose PACS/ Dairy/ Fishery Cooperatives in uncovered
Panchayats: The plan for establishing new multipurpose PACS or primary dairy/
fisheries cooperatives covering all the Panchayats/ villages in the next five years, with
support of NABARD, NDDB, NFDB, NCDC and other National level Federations has
been approved by the Government. As per National Cooperative Database, a total of
6,844 new PACS, Dairy and Fishery cooperative societies have been registered across
States/ UTs.
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, godowns have been constructed in 11 PACS of 11 States
and the Pilot is now being extended to 500 additional PACS.
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 e-
Governance 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, 37,169 PACS have started providing
CSC services to rural citizens which will also result in increase in income of these
PACS.
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, 992 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), more
than 270 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:
Based on the discussions with the Ministry of Petroleum and Natural Gas, guidelines
have been issued to convert the existing bulk consumer licensee PACS into retail outlets
for increasing the profit of PACS and generate employment opportunities in rural areas.
109 PACS from 4 States having wholesale consumer pumps have given consent for
conversion into Retail Outlets, out of which 43 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 create new employment opportunities
in rural areas. From four States/ Union Territories, a total of 31 PACS have submitted
online applications.
10. PACS as PM Bharatiya Jan Aushadhi Kendra for improving access to generic
medicines at rural level: Government is promoting PACS to operate Pradhan Mantri
Bhartiya Janaushadhi Kendras which will provide additional income source to them
and ease the access to generic medicines for rural citizens. So far, 4,341 PACS/
cooperative societies have applied online for PM Bhartiya Janaushadhi Kendras, out of
which 2,594 PACS have been given initial approval by PMBI and 674 have received
drug licences from State Drug Controllers which are ready to function as PM Bhartiya
Jan Aushadhi Kendras
11. PACS as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK): Government is
promoting PACS to operate PMKSK for ensuring easy accessibility of fertilizer &
related services to farmers in the country. As per the information shared by States/ UTs,
38,141 PACS are functioning as PMKSK.
12. Convergence of PM-KUSUM at PACS level: Farmers associated with PACS can
adopt solar agricultural water pumps and install photovoltaic modules in their farms.
13. PACS to carry out O&M of rural piped water supply schemes (PWS): In order to
utilize the deep reach of PACS in rural areas, on the initiative of the Ministry of
Cooperation, Ministry of Jal Shakti has made PACS as eligible agencies to carry out
the Operations & Maintenance (O&M) of PWS in rural areas. As per information
received from States/ UTs, 1,833 PACS have been identified/ selected by 16 States/ UTs
to provide O&M services at Panchayat/ Village level.
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 Co-operative
Societies with support from NABARD to provide 'Door-step Financial Services'. As a
pilot project, about 2,700 Micro-ATMs have been distributed to Bank Mitra cooperative
societies in Panchmahal and Banaskantha Districts of Gujarat. This initiative is now
being implemented in all the Districts of the State of 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. So far, 48,000 Rupay KCC have
been distributed in Panchmahal and Banaskantha Districts of Gujarat. This initiative is
now being implemented in all the Districts of 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 69 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.
B. Strengthening the Urban and Rural Cooperative Banks
17. 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.
18. 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.
19. 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.
20. 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.
21. 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.
22. 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 lakhs 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.
23. 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.
24. 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.
25. 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.
26. 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.
27. Monetary ceiling doubled by RBI for Gold Loan: RBI has doubled monetary ceiling
from Rs. 2 lakhs to Rs.4 lakh, for those UCBs that meet the PSL targets.
28. 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
29. 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.
30. MAT reduced for cooperatives from 18.5% to 15%: With this provision, now there
is parity between Cooperative Societies and Companies in this regard.
31. 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.
32. 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.
33. 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.
34. 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
35. 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.
36. 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.10,000 crore.
37. Rs. 10,000 crore loan schemes 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. Loan amount of
Rs. 5746.76 cr. has been sanctioned by NCDC to 36 Cooperative Sugar Mills so far.
38. 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).
39. 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
40. 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 Peddy, Moong, Soyabean, Groundnut, Jowar and Guar have been
planted on 148.26 Hectare land. As on date 11714 PACS/ Cooperative Societies have
become member of BBSSL.
41. 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. As on date 3,775 PACS/ cooperative societies have become member of
NCOL. So far, 12 organic products have been launched by NCOL under “Bharat
Organics” brand.
42. 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. As on date,
about 7700 PACS/ cooperative societies have become member of NCEL. A total of
8,15,007 metric tonnes of commodities have been exported by NCEL. Out of which
8,01,790 metric tonnes of rice, 7,685 metric tonnes of onions, 4507 metric tonnes of
sugar, 1025 metric tonnes of wheat have been exported.
F. Capacity Building in Cooperatives
43. Promotion of training and awareness through National Council for Cooperative
Training (NCCT): By increasing its reach, NCCT has conducted 3,619 training
programs and provided training to 2,21,478 participants in FY 2023-24. From April to
June 2024, NCCT has conducted 494 programmes against the quarterly target of 435
programmes and trained 19,591 participants against the target of 10875 participants.
44. Establishment of the Cooperative University: Cabinet Note has been prepared by
Ministry of Cooperation for setting up of a National Cooperative University for
Cooperative education, training, consultancy, research and development and a
sustainable and quality supply of trained manpower.
G. Use of Information Technology for ‘Ease of Doing Business’
45. 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.
46. Scheme for computerization of office of RCSs in States and Union Territories: To
increase ‘Ease of doing businesses 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 will be provided for purchase of hardware, development of
software, etc. to the States/ UTs.
47. 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 and will develop a national level software for
ARDBs. Hardware, support for digitization of legacy data, training to the employees,
etc. will be provided under the project. So far, proposals from 10 States/UTs have been
received and sanctioned. Further, GOI share amounting to Rs 4.26 crore was 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
48. 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 around
8.09 lakh cooperatives has been captured in the database.
49. Formulation of New National Cooperative Policy: A National level committee
comprising 49 experts and stakeholders drawn from all over the Country has been
constituted to formulate the New National Cooperative Policy for enabling a vibrant
ecosystem to realize the vision of ‘Sahakar-se-Samriddhi’.
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 97th
Constitutional Amendment in the Multi State Cooperative Societies.
51. 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 lakh vendors to facilitate economical purchases and greater
transparency. So far, 559 cooperative societies have been onboarded on GeM as buyers.
52. Expansion of National Cooperative Development Corporation (NCDC) to increase
its range and depth: NCDC has launched new schemes in various sectors such as
‘Swayamshakti Sahkar’ for SHGs; ‘Deerghavadhi Krishak Sahkar’ for long term
agricultural credit and ‘Dairy Sahkar’ for dairy. Total financial assistance of Rs.
60,618.47 Crores has been disbursed by NCDC in FY 2023-24. NCDC has disbursed
Rs.19,287.17 crore so far in the financial year 2024-25. Government of India has
permitted NCDC to issue bonds worth ₹2000 crore with government guarantee, subject
to the adherence of specified terms and conditions. Further, NCDC is setting up sub-
offices in 6 North Eastern States – Arunachal Pradesh, Meghalaya, Mizoram, Manipur,
Nagaland and Tripura with the objective of taking various national schemes to the
cooperative societies at their doorstep.
53. 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. Various financial assistances have been sanctioned
by NCDC such as; Rs. 11.55 crores for purchase of 14 deep sea trawlers in Maharashtra
at a block cost of Rs 20.30 crores, Rs 37.39 crores to Rajmata Vikas Macchimar
Sahakari Sanstha Limited, Mumbai for setting up a seafood processing unit at a Block
Cost of Rs.46.74 crores, Rs. 32.69 crores for Integrated Fisheries Development Project
(IFDP) of Government of Kerala and NCDC has sanctioned the proposal of Shri
Mahavir Macchimar Sahakari Mandali Limited, Gujarat for purchasing 30 deep sea
trawlers with a block cost of Rs.36.00 crores.
54. 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.
(c) & (d): In the Financial Year 2024-25, total Budgetary Allocation of Rs. 1183.39 Cr. has been
made to the Ministry of Cooperation, out of which Rs. 500 Cr. has been allocated for
Computerization of PACS Project, Rs. 500 Cr. has been allocated for Strengthening of Cooperative
Sugar Mills (CSMS) and Rs. 88.96 Cr. for Strengthening of Cooperatives through IT interventions.
Expenditure under the above schemes/projects depends on the utilization of earlier released funds
by the respective States/UTs and by the implementing agencies. These initiatives are benefitting
all the Cooperatives Societies and impacting their economic status positively by covering Tier-2
and Tier-3 cities and rural areas, across the country.
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