2 lakh cooperatives, vibrant village scheme and more: Key Cabinet decisions taken on Wednesday

The Union Cabinet on Wednesday announced that it has cleared plans to set up two lakh primary agricultural credit societies, dairy and fishery cooperatives, and develop villages in blocks on the northern border under the 'Vibrant Villages Programme'. The Cabinet has also approved the signing of the Memorandum of Understanding between the Institute of Chartered Accountants of India (ICAI) and The Institute of Chartered Accountants in England & Wales (ICAEW). This is to provide recognition of the qualification of each other's members and admit them. The move is expected to bring a lot of professional opportunities for Indian CAs in the UK. 

Vibrant Villages Programme

The Cabinet has approved a centrally-sponsored scheme - 'Vibrant Villages Programme' - with a financial allocation of Rs 4800 crore. The scheme will provide funds for the development of essential infrastructure and the creation of livelihood opportunities in 19 districts and 46 border blocks in four states and 1 UT. In the first phase, 663 Villages will be taken up in the programme. As per the government, key outcomes that have been attempted are, connectivity with the all-weather roads, drinking water, 24x7 electricity – solar and wind energy to be given focussed attention, and mobile and internet connectivity. Tourist centers, multi-purpose centers, and health and wellness Centers.

Cooperative movement

For cooperative movement, the ministry of cooperation has formulated a plan to set up primary agricultural credit societies (PACS), dairy cooperatives, and fishery cooperatives in each uncovered panchayat. The PACS constitutes the lowest tier of the short-term cooperative credit structure in the country, providing short-term and medium-term credit and other input services, like seed, fertiliser, and pesticide distribution to member farmers. There are around 98,995 such societies with a member base of 13 crores. 

The government said it will strengthen the existing cooperatives - PACSs, dairy, fishery - through a convergence of various schemes of the Ministry of Fisheries by leveraging the 'Whole-of-Government' approach - an approach that integrates the collaborative efforts of the departments and agencies of a government.

Initially, two lakh cooperatives would be established in next the five years. The move, the government said, would provide the farmer members all over the country with requisite forward and backward linkages to market their produce, enhance their income, and obtain credit facilities and other services at the village level itself. "Those primary cooperative societies which cannot be revived will be identified for winding up, and new primary cooperative societies would be established in their area of operation," it said.

In order to increase the viability of primary agricultural credit societies and diversify their business activities, model bylaws have been prepared by the ministry. These bye-laws will enable them to undertake more than 25 business activities which, include dairy, fishery, setting up of godowns, procurement of foodgrains, fertilisers, seeds, fuel distributorship, common service centers, and fair price shops.

The primary dairy cooperative societies are engaged in the procurement of milk from the farmers, providing milk testing facilities, cattle feed sales, and extension services to the members. There are nearly 2 lakh societies, which have 1.5 crore members. 

However, there are still 1.6 lakh panchayats without PACSs and nearly 2 lakh panchayats without any dairy cooperative society, the government said. "In view of the important role played by these primary level cooperative societies in sustaining the rural economy of the country, there is a need to make concerted efforts to strengthen the cooperative movement in the country."