Executive Summary:
The Government of India is implementing a project to computerize functional Primary Agricultural Credit Societies (PACS) with a financial outlay of ₹2925.39 Crore. The project involves bringing all functional PACS onto an Enterprise Resource Planning (ERP) based common national software and linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs). The target for complete computerization is set for March 31, 2027.
Key Points / Main Content:
* **Project Overview:**
* Computerization of functional PACS with a financial outlay of ₹2925.39 Crore.
* Implementation of an ERP-based common national software.
* Linking PACS with NABARD through StCBs and DCCBs.
* Common ERP software customizable for state-specific needs.
* **Financial Details:**
* Annexure A provides state-wise details of funds released and utilized under the project, including Chhattisgarh.
* **Chhattisgarh Status:**
* All 2028 PACS in Chhattisgarh have been onboarded on ERP software.
* **Impact of Computerization:**
* Enhances efficiency through Common Accounting System (CAS) and Management Information System (MIS).
* Strengthens governance and transparency.
* Results in faster loan disbursal, reduced transaction costs, minimized payment imbalances, and seamless accounting.
* Integrates functionalities including membership management, financial services, procurement, PDS, business planning, warehousing, merchandising, borrowings, asset management, and HR management.
* Provision to incorporate RuPay and Kisan Credit Card (KCC) database integrations.
* **Monitoring and Evaluation:**
* Regular monthly review meetings with States/UTs.
* Engagement of key stakeholders like States/UTs and NABARD.
* Structured monitoring framework including NLMIC, SLIMC, DLIMC, SCDC, and DCDC.
* NITI Aayog conducted an impact evaluation of "Computerization of PACS."
* **Target and Timeline:**
* Target date for complete computerization of functional PACS is March 31, 2027.
* Implementation in phased manner.
* **Capacity Building:**
* Training of PACS personnel on ERP usage, data entry, and operational modules.
* Webinars, helplines, and user manuals in regional languages.
* Details of PACS Training and Handholding are at Annexure B.
Impact Analysis:
* **PACS:**
* *Impact:* Improved operational efficiency, transparency, and accountability; access to a common ERP platform; training and handholding support.
* *Action Required:* Adopt and manage the new ERP software; participate in training programs.
* **Farmers (especially small and marginal):**
* *Impact:* Faster loan disbursal, reduced transaction costs, and enhanced trust in PACS operations; benefit equally from digitalization.
* *Action Required:* Utilize the enhanced services provided by computerized PACS.
* **State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs):**
* *Impact:* Seamless accounting and integration with PACS; improved data management.
* *Action Required:* Facilitate the integration and data exchange with PACS.
* **NABARD:**
* *Impact:* Key role in linking PACS with StCBs and DCCBs; providing training and handholding support.
* *Action Required:* Continue providing training and support for PACS computerization.
* **Ministry of Cooperation (MoC):**
* *Impact:* Overseeing the implementation and monitoring the impact of the project.
* *Action Required:* Conduct regular review meetings; ensure effective implementation through monitoring committees.
* **States/UTs:**
* *Impact:* Implementing the project in collaboration with the Ministry of Cooperation.
* *Action Required:* Participate in review meetings, implement the project at the grassroots level, and ensure coordination through state and district level committees.
Key Entities Referenced
Ministry of Cooperation: The Indian governmental ministry responsible for cooperative societies and related initiatives. Also referred to as MoC in the document.
Shri Amit Shah: The Minister of Cooperation.
NABARD: National Bank for Agriculture and Rural Development, an apex development financial institution in India, involved in linking PACS with StCBs and DCCBs and providing training.
Primary Cooperative Societies (PACS): The primary level cooperative credit institutions that form the base of the three-tier cooperative credit structure. They are the main entities being computerized under the project.
Chhattisgarh State: A state in India where the computerization of PACS is being implemented.
Enterprise Resource Planning (ERP): A common national software being implemented across PACS to capture data on all functionalities.
State Cooperative Banks (StCBs): State-level cooperative banks, part of the three-tier structure.
District Central Cooperative Banks (DCCBs): District-level cooperative banks, part of the three-tier structure.
GOVERNMENT OF INDIA
MINISTRY OF COOPERATION
LOK SABHA
UNSTARRED QUESTION NO. 261
TO BE ANSWERED ON 22nd JULY, 2025
Computerization of Primary Cooperative Societies
261. Shri Brijmohan Agrawal:
Smt. Poonamben Hematbhai Maadam:
Will the Minister of Cooperation (सहका(cid:303)रता मं(cid:361)ी) be pleased to state:
(a) whether any scheme has been implemented by the Government for computerization of
primary cooperative societies to modernise its operation;
(b) if so, the amount allocated to/utilized by all the State/UTs including Chhattisgarh during
the last three years;
(c) the number of primary cooperative societies that have been computerized in Chhattisgarh
State so far;
(d) whether the computerization had any impact on the functioning of the societies, if so, the
evaluation report thereof;
(e) the steps taken by the Government for capacity building, infrastructure development and
digital literacy;
(f) whether any target/time limit has been set for complete computerization of primary
cooperative societies, if so, the details thereof and if not, the reasons therefor;
(g) whether any capacity-building programmes have been introduced to support PAC in
adopting and managing the new Enterprise Resource Planning system; and
(h) if so, the details thereof?
ANSWER
THE MINISTER OF COOPERATION
सहका(cid:303)रता मं(cid:361)ी (SHRI AMIT SHAH)
(a): Yes, Sir. Government of India is implementing this Project of Computerization of
functional PACS with a total financial outlay of ₹2,516 Crore which has now been increased
upto 2925.39 Crore which entails bringing all the functional PACS onto an ERP (Enterprise
Resource Planning) based common national software, linking them with NABARD through
State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs). This
common ERP software is provided to all the PACS in the project, across the country, to capture
data on all functionalities of PACS, both credit and non-credit. This software is customizable
for state-specific needs.
(b): The States/UTs wise details of funds released/utilized under Computerization of PACS
Project including Chhattisgarh during the last three years are at Annexure ‘A’.(c): Total no. of PACS in the Chhattisgarh State are 2028 and all 2028 PACS have been
onboarded on ERP software.
(d) to (e): The ERP-based common national software enhances the efficiency of PACS
operations through a Common Accounting System (CAS) and Management Information
System (MIS). Additionally, it strengthens governance and transparency, resulting in faster
loan disbursal, reduced transaction costs, minimized payment imbalances, and seamless
accounting with DCCBs and StCBs. Furthermore, training and necessary handholding support
provided by NABARD ensures that small and marginal farmers, including those who may not
be digitally literate, benefit equally from digitalization.
A comprehensive ERP solution integrates multiple functionalities, including
membership management, financial services such as deposits and lending (short-term,
medium-term, and long-term), procurement, processing units, Public Distribution System
(PDS), business planning, warehousing, merchandising, borrowings, asset management, and
human resource management. Additionally, it has provision to incorporate RuPay and Kisan
Credit Card (KCC)/ database integrations to facilitate seamless financial transactions for PACS
members.
The Ministry of Cooperation (MoC) has adopted a multi-layered approach to evaluate
the impact of this initiative, ensuring effective implementation at the grassroots level. Regular
monthly review meetings are conducted with States/UTs to assess progress, particularly in the
PACS computerization Project. Key stakeholders like States/UTs, including NABARD have
been engaged to review the implementation of this project. Additionally, a structured
monitoring framework has been established, comprising the National Level Monitoring and
Implementation Committee (NLMIC), State and District Level Implementation and
Monitoring Committees (SLIMC and DLIMC), State Cooperative Development Committee
(SCDC) (under the Chief Secretary), and District Cooperative Development Committee
(DCDC) (under the District Collector). These bodies ensure effective implementation,
oversight, and coordination of all cooperative sector initiatives, including PACS
computerization.
Further, NITI Aayog has conducted an impact evaluation of Centrally Sponsored
Schemes (CSS) in the Agriculture & Allied Sector, which includes "Computerization of PACS"
and "Strengthening of Cooperatives through IT Interventions" under the Ministry of
Cooperation. Yes, computerization has a significant impact on the functioning of societies. It
aims to improve operational efficiency, transparency, and accountability. Key benefits include:
* Speedy disbursal of loans.
* Lowering of transaction costs.
* Reduction in imbalances in payments and seamless accounting with DCCBs and
StCBs.
* Enhanced trustworthiness in the working of PACS among farmers.(f): Yes, the Government has set a target to complete the computerization of functional PACS
across the country. Sunset date of the project is 31st March 2027. The implementation is being
done in a phased manner, and each PACS is brought onto a common ERP platform.
(g) to (h): Yes, Capacity-building programs have been introduced to support PACS in adopting
and managing the new Enterprise Resource Planning (ERP) software. The key initiatives
include:
This project is implemented by Ministry of Cooperation in collaboration with
States/UTs;
Training of PACS personnel on ERP usage, data entry, and operational modules such
as accounting, credit, procurement, and distribution.
Regular webinars, helplines, and user manuals in regional languages for ease of
adoption.
The details of PACS Training and Handholding details are at Annexure ‘B”.
***Annexure ‘A’
Amount
Amount r Total Expen Total Expen Total Exp
released Amount rele
eleased in diture incurr diture incurr enditure i
# States/UTs in ased in FY
FY 2022- ed in 2022-2 ed in ncurred i
FY 2023 2024-25
23 3 2023-24 n 2024-25
-24
1 Maharashtra 87.95 - 33.65 71.88 - 39.38
2 Rajasthan 23.78 - 43.30 44.05 11.00 25.60
3 Gujarat - - 58.30 7.39 22.19 58.48
4 Uttar Pradesh 11.28 - 42.30 24.10 - 15.13
5 Karnataka 40.25 - 15.39 36.67 - 2.69
Madhya Prad
6 esh 33.23 - 25.42 43.47 - 8.88
7 Tamil Nadu 33.20 - 12.48 25.78 - 17.34
8 Bihar 32.95 - - 4.48 14.66 32.43
9 West Bengal 30.54 - - 6.45 - 6.35
10 Punjab 25.52 - - 10.20 - 10.80
Andhra Prade
11 sh 14.93 - 3.74 - 14.54 28.15
12 Chhattisgarh 14.86 - - 4.51 10.21 18.28
Himachal Pra
13 desh 9.56 - 7.32 13.13 3.09 3.74
14 Jharkhand 10.99 - - 5.45 15.10 12.82
15 Haryana 4.85 - 2.44 - - 7.09
16 Uttarakhand - - 3.69 - - 0.29
17 Assam 6.41 - 2.45 6.41 6.39 5.71
18 J&K 5.25 - 1.52 5.25 1.85 2.21
19 Tripura 2.95 - 1.13 3.55 3.03 2.55
20 Manipur 2.55 - - - - 2.09
21 Nagaland 0.36 - 2.46 0.64 1.60 3.77
22 Meghalaya 1.23 - - 1.03 - 0.23
23 Sikkim 1.18 - 0.90 1.59 0.79 0.45
24 Goa 0.32 - 0.13 0.30 0.44 0.21
25 ANI - - 0.69 - - 0.62
26 Puducherry 0.44 - 0.17 0.41 - 0.07
27 Mizoram 0.27 - - 0.21 0.44 0.34
Arunachal Pra
28 desh 0.15 - 0.12 0.21 0.09 0.08
29 Ladakh - - 0.12 - - 0.02
30 DNH&DD - - - - 0.12 0.06
Total 395.00 - 257.71 317.14 105.54 305.89Annexure ‘B’
PACS Training and Handholding Details
S. Sum of Total Sanction Training to Handholding to
No State PACS PACS PACS
Andaman and
1 Nicobar 46 46 46
2 Andhra Pradesh 2037 592 1469
3 Arunachal Pradesh 14 11 11
4 Assam 583 539 572
5 Bihar 4495 1698 1336
6 Chhattisgarh 2028 2028 2025
7 Daman and Diu 4 0 4
8 Goa 58 41 14
9 Gujarat 5754 5618 1440
10 Haryana 710 600 585
11 Himachal Pradesh 1789 831 617
12 Jammu and Kashmir 537 533 465
13 Jharkhand 2797 1368 168
14 Karnataka 5682 3702 24
15 Ladakh 10 7 0
16 Madhya Pradesh 5188 3900 4488
17 Maharashtra 12000 6858 8520
18 Manipur 232 169 0
19 Meghalaya 112 99 46
20 Mizoram 49 25 23
21 Nagaland 231 30 9
22 Odisha 2711 0 0
23 Pondicherry 45 43 33
24 Punjab 3482 948 861
25 Rajasthan 7468 5583 1847
26 Sikkim 107 104 29
27 Tamil Nadu 4532 4531 3001
28 Tripura 268 207 159
29 Uttar Pradesh 5686 1098 0
30 Uttarakhand 670 0 0
31 West Bengal 4167 3113 44
Grand Total 73492 44322 27836
* Odisha has recently joined the Project