Amit Shah Unveils Policy for Swift Liquidation of Defunct Cooperatives
Union Home and Cooperation Minister Amit Shah has announced that the central government will soon roll out a comprehensive policy to enable the easy liquidation of defunct Primary Agricultural Credit Societies (PACS). This move aims to make room for the efficient registration of new PACS and boost the vitality of India’s cooperative ecosystem.
Policy to Enable Faster Liquidation and Fresh Registrations
Speaking at the ‘Sahakari Sammelan’ in Ahmedabad, Shah revealed that the upcoming policy would streamline the process of winding up non-functional PACS across states. This, he said, was necessary to make way for the creation of new, financially robust cooperative societies.
Shah stressed that the government aims to create two lakh new PACS by 2029, aligned with a vision to diversify rural business models and make cooperatives financially self-sufficient.
22 Business Activities to Ensure Viability of PACS
To ensure these new PACS remain profitable and don’t fall into financial distress, the government has identified 22 different business activities that can be associated with each unit. These include setting up small-scale manufacturing units for paneer, ice cream, and other dairy products. Shah emphasized that such diversification will help PACS evolve from purely credit-based institutions to full-fledged rural enterprises.
He also mentioned innovative proposals like using carcass material—bones, skin, horns—for generating income through cooperatives in a circular dairy economy.
Strengthening Cooperatives Across India
Shah acknowledged that while Gujarat remains a leader in the cooperative movement, many parts of the country have seen a stagnation or “paralysis” in cooperative activity. He urged leaders in the cooperative sector to ensure the spread of cooperative initiatives across all states to balance the sector’s growth.
The government plans to push forward reforms not only in registration and liquidation but also in transparency, accountability, and inter-cooperative collaboration.
Progress on ‘Cooperation Among Cooperatives’ Project
Providing an update on the national-level ‘Cooperation Among Cooperatives’ project, Shah said that over 60% of the implementation work is already completed. The initiative aims to bring together various cooperative entities under a unified framework for better collaboration and shared services.
Shah also highlighted the financial growth within cooperative banks, noting that deposits have increased by ₹11,000 crore, indicating rising public trust. He urged all PACS, dairies, and APMCs to ensure that their members open accounts in cooperative banks, thereby reinforcing the cooperative banking system as a parallel pillar of rural finance.
