Cabinet nod to computerised, multidimensional PACS for effective administration

The Union Cabinet on Wednesday gave nod to the computerisation of 63,000 Primary Agricultural Credit Societies (PACS) with an overall budget outlay of Rs 2,516 crores.

New Delhi: The Union Cabinet on Wednesday gave a nod to the computerization of 63,000 Primary Agricultural Credit Societies (PACS) with an overall budget outlay of Rs 2,516 crores. The decision, according to the government, is aimed to bring transparency, and efficiency and will help PACS become a nodal delivery service point at the Panchayat level. Cloud-based unified software with data storage and cyber security will be developed for digitization and better transparency in the functioning of PACS and employees will be provided with appropriate training to adopt the latest technology in the system.

Currently, there are 63,000 functional PACS in the country but sources in the Ministry of Cooperation have confirmed that the government has set a target to revive defunct establishments as well and establish 3 lakh multifunctional PACS in the next three years. Apart from the previous function, the cooperative will be involved in providing banking, lockers, storage, and cold storage, PDS licensing, FPOs, Common Service Center, Milk production, beekeeping, fisheries, irrigation, water supply scheme in rural areas, and also in establishing Gober gas plants.

"Currently, there is no provision in the present model. So in order to implement the new plan and make PACS multidimensional, new model bye-laws will soon be made and an advisory will be issued to the states in the coming days," said a senior official of the ministry. Many state governments have already given their assent to the new model of PACS and consultations with other states are going on.

Establishing one PAC costs around 3.91 lacs. A senior official from the ministry said that 75% cost of the revamp of old PACS and the establishment of new ones will be provided by Central Government, whereas the remaining 25% will be borne by NABARD and the state government. The new functionality will bring rural development, cooperation, and agricultural credit under the same digitized platform with centralized software developed by the Centre.

A support system will also be created for every 200 PACS and a separate budget of Rs 900 crores has been planned by the department for providing training to the employees. There are 3 lakh Panchayats in the country and accordingly a target to establish 3 Lakh PACS has been set so that there is an effective functional PACS in every Panchayat, said the official.

A meeting between Chief Ministers from all states and Cooperative minister Amit Shah will also be called in New Delhi to build a consensus over the revamp plan of PACS. Apart from the revamp of PACS and bringing transformational changes to the structure of the cooperative, the government also plans to open a Cooperative University in the next two years.