COOPERATIVE SOCIETIES HEALTH
1. Context
According to the Ministry of Cooperation's mandate to strengthen the cooperative movement in the country and promote a cooperative-based economic development model.
The Government is working towards transforming cooperatives into vibrant economic entities and bringing them at par with other economic entities both as beneficiaries and participants.
2. Multi-State cooperative societies
- As per Part IX B of the Constitution of India, incorporation, regulation and winding up of multi-State cooperative societies come under the purview of the Central Government.
- While as per List-II of the Seventh Schedule to the Constitution, incorporation, regulation and winding up of cooperatives societies registered under State Cooperative Societies Acts comes under the purview of respective State Governments/UT Administrations.
- Therefore, data on several cooperative societies, other than those registered under the Multi-State Cooperative Societies Act, of 2002, is not maintained in the Ministry of Cooperation.
- However, as far as multi-State cooperative societies are concerned 27 societies have been put under liquidation in the last three years.
3. Government Initiatives
The Ministry has taken various initiatives to improve the health of cooperative societies in the country such as:
3.1. Project for Computerization
- Under this 63, 000 functional Primary Agriculture Credit Societies (PACS), in the next three years, with a total financial outlay of ₹ 2, 516 Crore has been approved by the Cabinet Committee on Economic Affairs vide its decision dated 29th June 2022.
- This project entails bringing all the functional PACS onto an ERP (Enterprise Resource Planning) based common software, linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs).
3.2. Model bye-laws for PACS
- These have been prepared after detailed stakeholder consultations, including all the States/Union Territories and Ministries, Concerned, for adoption by PACS as per their respective State Cooperatives Societies Act.
- These Model Byelaws of PACS will enable them to undertake more than 25 business activities like dairy, fishery, floriculture, setting up of godowns, procurement of foodgrains, fertilizers, seeds, LPG/Petrol/Green energy distribution agency, banking correspondents, common service centres, etc.
3.3. e-Marketing platform
- On 1st June 2022, Union Cabinet has taken a decision allowing cooperatives to register as buyers on the Government e-Marketing platform, enabling them to procure goods and services from nearly 40 lakh vendors registered on the GeM portal throughout the country.
- This will help cooperatives in making savings and improving transparency in their procurement system.
3.4. Reduction of Surcharge
- Surcharge on Co-operative societies was reduced from 12 per cent to 7 per cent for those co-operative societies having a total income of more than Rs. 1 Cr and up to Rs. 10 Crores.
- To enhance the income of Cooperative societies and their members.
3.5. Minimum Alternate Tax (MAT)
MAT rate was reduced for the Co-operatives from 18.5 per cent to 15 per cent to provide them with a level playing field with Corporates.
3.6. Availability of Credit
To provide adequate, affordable and timely credit to the co-operative institutions to give a boost to the co-operative based economic development model, non-scheduled Urban Cooperative Banks, State Co-operative Banks and District Central Co-operative Banks have been notified as Member Lending Institutions in Guarantee Fund Trust (CGTMSE) Scheme.
3.7. Removing from the Additional-Income Tax Category
The cooperative sugar mills by clarifying that sugar co-operative mills shall not be subjected to additional income tax for paying higher sugarcane prices to farmers up to the Fair and Remunerative Prices (FRP) or State Advised Price (SAP), as the case may be.
3.8. National Cooperative Development Corporation (NCDC)
| It is a statutory organization under the Ministry of Cooperation, provides financial assistance to the cooperative sector and undertakes various activities such as strengthening the share capital base of primary or District cooperative marketing societies, setting up processing centres, and storage facilities, establishing and modernizing cold chain, creation of cooperative banking units, agricultural services, Integrated Cooperative Development Projects, assistance for computerization of cooperatives. |
3.8.1. Schemes under NCDC
- "Yuva-Sahkar" for cooperative enterprise support and innovation,
- "Ayushman Sahkar" Covers the health sector,
- "Nandini Sahkar" to support women's cooperatives. etc.
For Prelims & Mains
|
For Prelims: Ministry of Cooperation, Cooperative societies, GeM portal, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme, National Cooperative Development Corporation, Yuva-Sahkar, Ayushman Sahkar, Nandini Sahkar, Seventh Schedule, Multi-State Cooperative Societies Act, of 2002, Primary Agriculture Credit Societies (PACS), NABARD, State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), Fair and Remunerative Prices (FRP) or State Advised Price (SAP).
For Mains:
1. Discuss the role of the Government in Strengthening Cooperative societies (250 Words)
|
Source: PIB
