Current Affairs

Computerization and Strengthening of Primary Cooperative Societies

Computerization and Strengthening of Primary Cooperative Societies

Government of India, in order to strengthen of Primary Agricultural Cooperative Societies (PACS), 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 National Bank for Agriculture and Rural Development (NABARD) through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs). 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). So far, proposals for computerization of 67,930 PACS from 30 States/ UTs have been sanctioned, for which a total of Rs 865.81 crore have been released to States/ UTs concerned including  Rs. 699.89 crore as GoI share to the States/UTs concerned and Rs 165.925 crore to NABARD being implementing agency as per the guidelines issued by Department of Expenditure, Ministry of Finance from time to time.

 

The details including the funds allocated and utilized during the last three years are attached as Annexure-I.

 

   The details on number of primary cooperative societies that have been computerised so far and that are yet to be computerised, State-wise are attached as Annexure-II.

   The Government of India has initiated a Centrally Sponsored Project to computerize functional Primary Agricultural Credit Societies (PACS) over a five-year period from 2022-23 to 2026-27. Thus, the sunset date of the project is 31.03.2027

   The number of PACS officials/employees who have received training on ERP is 26,882.  As per the project guidelines, there is no provision for financial support for hiring outsourced employees by PACS.

       The Ministry of Cooperation, since its inception on 6th July 2021, has taken many initiatives to strengthen and deepen the cooperative movement at the grassroots level including capacity building, infrastructure development and digital literacy training for various stakeholders of the cooperative sector, such as “Model Bye-Laws for PACS making them multipurpose, multidimensional and transparent entities”, “Establishing New Multipurpose PACS/ Dairy/ Fishery Cooperatives in uncovered Panchayats”, “Pilot project for World’s Largest Decentralized Grain Storage Plan in Cooperative sector”, “Computerization of the offices of Registrar of Cooperative Societies of States/ UTs”, “Computerization of Agriculture and Rural Development Banks (ARDBs)”, “Computerization of functional Primary Agricultural Credit Societies (PACS)”, “National Cooperative Database”, “Amendment of the Multi-State Cooperative Societies (MSCS) Act, 2002”, “Reliefs to Cooperative Societies in the Income Tax Act”, “Initiatives for revival of Cooperative Sugar Mills”, “Establishment of three new national-level multi-state cooperative societies for seed, organic products and exports”, etc.  The details on all these major initiatives are attached as Annexure-III.

   The Ministry of Cooperation (MoC) has adopted a multi-layered approach to evaluate the impact of computerisation at the grassroots level for ensuring effective implementation of these projects. Regular monthly review meetings are conducted with States/UTs to assess the progress of various initiatives including computerization of PACS.  Key stakeholders such as NABARD, NDDB, NFDB, and others have been roped in to review the progress of various initiatives through their National, State and District level officials and machinery. National Level Monitoring and Implementation Committee (NLMIC), State and District Level Implementation and Monitoring Committees (SLIMC and DLIMC) have been formed to review especially the PACS Computerization Project. Further, State Cooperative Development Committee (SCDC) has been constituted at the State level under the chairmanship of the Chief Secretary and District Cooperative Development Committee (DCDC) has been constituted at the district level under the chairmanship of the District Collectors to ensure effective implementation and monitoring of all the initiatives, including computerization of PACS of Ministry of Cooperation.

Further, NITI Aayog is evaluating the Centrally Sponsored Schemes (CSS) in the Agriculture & Allied Sector for which letter of Award has been issued to NABCONS (NABARD Consultancy Services Private Limited) on GeM portal on 21.10.2024. The impact assessment includes “Computerization of PACS” and “Strengthening of Cooperatives through IT interventions” projects of this Ministry.

Primary Agriculture Credit Societies (PACS) constitute the lowest tier of the Short-Term Cooperative Credit Structure (STCCS) in the country, primarily providing short-term and medium-term credit facility and other input services, like seed, fertilizer, pesticide distribution, etc. to member farmers. Presently, around 13 crore farmers are linked with PACS. Being the grassroots level cooperative institutions, PACS play a crucial role in sustaining the rural economy of the country by purveying institutional credit to small and marginal farmers. Computerization of PACS project improved governance and transparency in PACS, leading to speedy disbursal of loans, lowering of transaction cost, reduction in imbalances in payments, seamless accounting with DCCBs and StCBs. It enhances trustworthiness in the working of PACS among farmers, thus contributing towards realizing the vision of “Sahakar se Samridhi”.

Annexure-I

 

 

FY 2022-23

FY 2023-24

FY 2024-25

S. No

States/UTs

Amount allocated for FY 2022-23

Amount released in FY 2022-23

Amount utilized in FY 2022-23

Amount allocated for FY 2023-24

Amount released in

Amount utilized in FY 2023-24

Amount allocated for FY 2024-25

Amount released in FY 2024-25

Amount utilized in FY 2024-25

FY 2023-24

1.

Maharashtra

87.95

87.95

0

134.58

33.65

71.88

27.81

0

2.58

2.

Rajasthan

23.78

23.78

0

78.06

43.3

44.05

52.42

0

10.15

3.

Gujarat

0

0

0

106.7

58.3

7.39

44.37

22.19

46.96

4.

Uttar Pradesh

11.28

11.28

0

43.87

42.3

24.1

50.88

0

10.92

5.

Karnataka

40.25

40.25

0

61.58

15.39

36.67

21.17

0

1.21

6.

Madhya Pradesh

33.23

33.23

0

50.85

25.42

43.47

0

0

5.78

7.

Tamil Nadu

33.2

33.2

0

49.84

12.48

25.78

24.95

0

3.45

8.

Bihar

32.95

32.95

0

50.41

0

4.48

29.32

0

28.47

9.

West Bengal

30.54

30.54

0

46.73

0

6.45

40.49

0

6.35

10.

Punjab

25.52

25.52

0

39.05

0

10.2

13.32

0

7.06

11.

Andhra Pradesh

14.93

14.93

0

22.84

3.74

0

18.12

0

13.04

12.

Chhattisgarh

14.86

14.86

0

22.75

0

4.51

20.41

10.21

10.45

13.

Himachal Pradesh

9.56

9.56

0

14.64

7.32

13.13

6.18

0

3.05

14.

Jharkhand

10.99

10.99

0

16.83

0

5.45

15.1

7.55

5.55

15.

Haryana

4.85

4.85

0

8.33

2.44

0

3

0

6.9

16.

Uttarakhand

0

0

0

0

3.69

0

7.03

0

0.12

17.

Assam

6.41

6.41

0

9.81

2.45

6.41

6.6

3.3

2.27

18.

J&K

5.25

5.25

0

8.03

1.52

5.25

3.71

1.85

1.52

19.

Tripura

2.95

2.95

0

4.5

1.13

3.55

3.03

1.52

2.04

20.

Manipur

2.55

2.55

0

3.9

0

0

3.86

0

0.11

21.

Nagaland

0.36

0.36

0

0.56

2.46

0.64

3.2

0

1.64

22.

Meghalaya

1.23

1.23

0

1.13

0

1.03

1.97

0

0.23

23.

Sikkim

1.18

1.18

0

1.8

0.9

1.59

0.79

0

0.31

24.

Goa

0.32

0.32

0

0.5

0.13

0.3

0.44

0

0.12

25.

ANI

0

0

0

1.33

0.69

0

0.84

0

0.62

26.

Puducherry

0.44

0.44

0

0.67

0.17

0.41

0.29

0

0

27.

Mizoram

0.27

0.27

0

0.43

0

0.21

0.44

0.44

0.06

28.

Arunachal Pradesh

0.15

0.15

0

0.24

0.12

0.21

0.09

0

0.05

29.

Ladakh

0

0

0

0.31

0.12

0.12

0.04

0

0

30.

DNH&DD

0

0

0

0

0

0

0.12

0.12

0

31.

NABARD

100

100

0

187.97

40.91

96.16

100

25

33.48

 

Total

495

495

0

968.24

298.62

413.42

500

72.18

204.5

 

 

 

 

Annexure-II

Status of Computerization of PACS (as on 21.11.2024)

S. No

States

PACS selected for Computerization

PACS tendered for Hardware

Digitization of records (DCT)Completed

PACS Computerized as on 21.11.24

PACS yet to be onboarded on ERP

Maharashtra

12,000

12,000

11,631

9,161

2,839

Rajasthan

6,781

5,492

3,834

3,025

3,756

Gujarat

5,754

5,754

5,423

3,838

1,916

Uttar Pradesh

5,686

3,062

2,949

2,505

3,181

Karnataka

5,491

5,491

4,046

487

5,004

Madhya Pradesh

4,536

4,534

4,531

4,524

12

Tamil Nadu

4,532

4,532

4,530

4,494

38

Bihar

4,495

4,477

4,345

4,043

452

West Bengal

4,167

4,167

521

148

4,019

Punjab

3,482

3,482

1,973

1,580

1,902

Andhra Pradesh

2,037

2,037

30

30

2,007

Chhattisgarh

2,028

2,028

2,028

2,019

9

Himachal Pradesh

1,789

870

865

829

960

Jharkhand

1,500

1,500

1,435

1,403

97

Haryana

710

710

703

687

23

Uttarakhand

670

670

185

185

485

Assam

583

583

579

567

16

J&K

537

537

533

532

5

Tripura

268

268

254

247

21

Manipur

232

232

50

23

209

Nagaland

231

231

33

33

198

Meghalaya

112

112

108

108

4

Sikkim

107

107

106

104

3

Goa

58

58

37

32

26

ANI

46

46

46

44

2

Puducherry

45

45

42

31

14

Mizoram

25

25

25

25

0

Arunachal Pradesh

14

14

14

14

0

Ladakh

10

10

10

9

1

DNH&DD

4

0

4

 

Total

67,930

63,074

50,866

40,727

27,203

 

 

ANNEXURE -III

Progress on major initiatives taken by Ministry of Cooperation

   Ministry of Cooperation, since its inception on 6th July, 2021, has undertaken several initiatives to realize the vision of “Sahakar-se-Samriddhi” and to strengthen & deepen the cooperative movement from Primary to Apex level Cooperatives in the country. List of initiatives taken and progress made so far are as follows:

 

    This was stated by the Minister of Cooperation, Shri Amit Shah in a written reply to a question in the Lok Sabha. 

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