Goal of Sahakar-se-Samriddhi and resolve to connect the spirit of cooperation with the spirit of Amrit Kaal


TO BE ANSWERED ON 21/03/2023

Sahakar se Samriddhi 


Will the Minister of COOPERATION be pleased to state:

(a) whether the Government is working towards the goal of “Sahakar se Samriddhi”, and resolve to connect the spirit of cooperation with the spirit of Amrit Kaal;

(b) if so, the details and present status thereof;

(c) whether the Government also proposes for new cooperatives that commence manufacturing activities till 31.03.2024 to get the benefit of a lower tax rate of 15 percent, as is presently available to new manufacturing companies;
Goal of Sahakar-se-Samriddhi
(d) whether the Government proposes to provide an  opportunity to  sugar  cooperatives  to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure and this is expected to provide them with a relief of almost Rs. 10,000 crore; and

(e) if so, the details and present status thereof and grievances still pending along with reasons therefor?


(a) & (b): Since its formation in July, 2021, the Ministry of Cooperation has taken various initiatives to promote cooperative based economic development model, strengthen cooperative movement and deepen its reach up to the grassroots to realize the goal of “Sahakar-se-Samriddhi” and resolve to connect the spirit of cooperation with the spirit of Amrit Kaal. Some of these major initiatives include:

1. Computerization of PACS: Process to onboard 63,000 functional PACS on an ERP based common national software with an outlay of ₹2,516 Crore started.
2. Model byelaws for PACS: Model byelaws prepared and circulated for their adoption as per the respective State Cooperatives Act to enable PACS to undertake more than 25 business activities like dairy, fishery, setting up of godowns, LPG/ Petrol/ Green energy distribution agency, banking correspondents, CSC, etc.

3. PACS as Common Service Centres (CSC): MoU signed between Ministry of Cooperation, Ministry of Electronics and Information Technology, NABARD and CSC - SPV to facilitate functioning of PACS as CSCs to improve their viability, provide e-services at village level and generate employment.

4. National Cooperative Database: Preparation of an authentic and updated data repository of cooperatives in the country started to facilitate stakeholders in policy making and implementation.

5. Establishment of Multi-Purpose PACS, Dairy and Fisheries  Cooperative  Societies  in every Panchayat/Village: A plan has been approved by the Government to set up 2 lakh new multi-purpose PACS, dairy and fisheries cooperatives covering every Panchayat/Village in the next five years by taking advantage of various existing schemes.

6. National Cooperative Policy: A National level committee comprising of experts and stakeholders drawn from all over the Country constituted to formulate the New Cooperation Policy to create an enabling ecosystem to realize the vision of ‘Sahakar-se- Samriddhi’.

7. Amendment of MSCS Act, 2002: Bill introduced in the Parliament to amend the centrally administered MSCS Act, 2002 to incorporate provisions of 97th Constitutional Amendment, strengthen governance, enhance transparency, increase accountability and reform electoral process in the Multi State Cooperative Societies.

8. National Cooperative Development Corporation: 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. 34,221 Crores  disbursed in FY 2021-22.

9. Member Lending Institutions in Credit Guarantee Fund Trust: Non-scheduled  UCBs, StCBs and DCCBs notified as MLIs in CGTMSE Scheme to increase share of cooperatives in lending.

10. 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.
11. Reduction in surcharge on cooperative societies: Surcharge reduced from 12 % to 7% for co-operative societies having income between Rs. 1 to 10 Cr.

12. Reduction in Minimum Alternate Tax: MAT reduced for  cooperatives  from  18.5%  to 15%.

13. Relief under Section 269ST of IT Act: A clarification has been issued to remove difficulties in cash transactions by cooperatives under Section 269ST of IT Act.

14. Lowering tax rate for new cooperatives: Announcement made in the Union Budget 2023- 24 to charge flat lower tax rate of 15%, compared with current rate of upto 30% plus surcharge, for new cooperatives commencing manufacturing activities  till  March  31, 2024.

15. Increase in limit of deposits and loans in cash by PACS and PCARDBs: Announcement made in the Union Budget 2023-24 to increase limit from Rs. 20,000 to Rs. 2 lakh per member for deposits and loans in cash by PACS and PCARDBs.

16. Increase in limit for TDS: Announcement made in the Union Budget 2023-24 to increase cash withdrawal limit for cooperatives from Rs. 1 Crore  to Rs. 3  Crore,  per  annum, without being subjected to TDS.

17. Relief to Sugar Cooperative Mills: Sugar cooperative mills not to be subjected to additional income tax for paying higher sugarcane prices to farmers upto Fair and Remunerative or State Advised Price.

18. Resolution of chronic pending issues of Sugar Cooperative Mills: Announcement made in the Union Budget 2023-24 to allow sugar cooperatives 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.

19. New National Multi-State Cooperative Seed Society: New apex national multi-state cooperative seed society being established under the MSCS Act, 2002 as umbrella organization for quality seed cultivation, production and distribution under a single brand.

20. New National Multi-State Cooperative Organic Society: New apex national multi-state cooperative organic society being established under the MSCS Act, 2002 as umbrella organization to produce, distribute and market certified and authentic organic products.

21. New National Multi-State Cooperative Export Society: New apex national multi-state cooperative export society being established under the MSCS Act, 2002 as umbrella organization to give thrust to exports from cooperative sector.
(c): As  per the budget announcement 2023-24,  in order to promote the growth of manufacturing in co-operative sector, a new co-operative society formed on or after 01.04.2023, which commences manufacturing or production by 31.03.2024 and do not avail of any specified incentive or deduction, is proposed to be allowed an option to pay tax at a concessional rate of 15 per cent similar to what is available to new manufacturing companies.

(d) & (e): As per the budget announcement 2023-24, which will be effective from 01.04.2023, for sugar co-operatives, for years prior to assessment year 2016-17, if any deduction claimed for expenditure made on purchase of sugarcane has been disallowed, same shall be recomputed after allowing such deduction upto the price fixed or approved by the Government for such previous years. This decision of the Government will provide benefit of approximately ₹10,000 crore of principal amount of Income-Tax to sugar cooperatives. For this purpose, all sugar co-operatives, who are eligible for deduction, are required to approach the assessing officer, suitably.

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