Executive Summary:
The Ministry of Cooperation addresses Lok Sabha Starred Question No. 39 regarding transforming Primary Agricultural Credit Societies (PACS) into multifunctional service hubs. The government is actively computerizing PACS, expanding their roles beyond agricultural credit, and creating a National Cooperative Database. A long-term strategy is being formulated to develop PACS as One-Stop Shops for rural service delivery.
Key Points / Main Content:
PACS Computerization and Transformation:
* PACS are being computerized with Enterprise Resource Planning (ERP) tools and integrated with over 25 government schemes.
* The goal is to establish PACS as the backbone of rural service delivery under "Sahakar se Samridhi."
* The PACS Computerisation Scheme, approved on June 29, 2022, aims to computerize approximately 63,000 functional PACS by 2026-27 with a budget of ₹2,925.39 crore.
* NABARD is the implementing agency, providing hardware, ERP software, and support services.
* 73,492 PACS across 31 States/UTs have been approved for inclusion in the project.
* PACS will deliver benefits from schemes like PM-Kisan, PMFBY, and act as PDS outlets and Common Service Centres.
Expansion of PACS Activities:
* PACS are expanding beyond agricultural credit to include procurement, agri-input supply, storage, insurance facilitation, and other economic activities.
* PACS can procure agricultural produce, supply inputs like seeds and fertilizers, provide warehousing, facilitate insurance, distribute LPG/petrol/diesel, operate Common Service Centres and Jan Aushadhi Kendras, and support irrigation, fishery, and dairy activities.
National Cooperative Database (NCD):
* A National Cooperative Database (NCD) has been developed and launched on March 8, 2024.
* The NCD provides information on over 8.25 lakh cooperatives and is accessible at https://cooperatives.gov.in.
* The database is used for identifying underserved regions and targeting scheme delivery.
Long-Term Strategy for PACS Development:
* The government is committed to formulating a long-term strategy to integrate PACS as multiservice hubs.
* The Ministry of Cooperation aims to expand PACS to 2 lakh units.
* Model bye-laws enable PACS to undertake over 25 business activities.
Impact Analysis:
PACS:
* Impact: PACS will be transformed into multifunctional service hubs, expanding their services and integrating with government schemes, strengthening financial and digital infrastructure, welfare delivery, and agri-services..
* Action Required: PACS need to adopt the ERP software, integrate with government schemes, and diversify their activities as per the model bye-laws.
State Governments/Union Territories:
* Impact: States/UTs need to facilitate the computerization of PACS and the implementation of government schemes through these entities.
* Action Required: States/UTs should ensure the inclusion of PACS in the computerization project and support their integration with government schemes.
NABARD:
* Impact: NABARD serves as the implementing agency for the PACS computerization scheme.
* Action Required: NABARD is responsible for providing hardware, ERP software, and support services to PACS.
Ministry of Cooperation:
* Impact: The Ministry is responsible for formulating policies and strategies to strengthen the cooperative sector and develop PACS.
* Action Required: The Ministry needs to continue to develop and implement the long-term strategy for integrating PACS as multiservice hubs.
Key Entities Referenced
Primary Agricultural Credit Societies (PACS): Primary Agricultural Credit Societies are being transformed into multi-functional service hubs.
PACS Computerisation Scheme: A centrally sponsored scheme to computerize approximately 63,000 functional PACS over five years.
Sahakar se Samridhi: A vision to make PACS the backbone of rural service delivery.
National Cooperative Database (NCD): A comprehensive database developed by the Ministry of Cooperation providing information on cooperatives across the country.
Ministry of Cooperation: The ministry responsible for the Sahakar se Samridhi vision and the development of the National Cooperative Database.
National Bank for Agriculture and Rural Development (NABARD): The implementing agency for the PACS Computerisation Scheme.
Pradhan Mantri Fasal Bima Yojana (PMFBY): A government scheme for crop insurance, which PACS can facilitate.
Dairy Infrastructure Development Scheme (DIDF): A scheme converged with PACS to form multipurpose cooperatives.
GOVERNMENT OF INDIA
MINISTRY OF COOPERATION
LOK SABHA
STARRED QUESTION NO. 39
TO BE ANSWERED ON 22nd JULY, 2025
Transforming of PACS into Multi-Functional Service Hubs
39 # Shri Praveen Khandelwal:
Will the Minister of Cooperation (सहका(cid:303)रता मं(cid:361)ी) be pleased to state:
(a) whether the Government has taken steps to transform Primary Agricultural Credit Societies
(PACS) into multi-functional service hubs by integrating them with major Government
schemes under the PACS computerisation programme, if so, the details thereof;
(b) whether the Government proposes to expand the role of PACS beyond agricultural credit
to include procurement, agri-input supply, storage, insurance facilitation and other economic
activities at the village level, if so, the details thereof;
(c) whether emerging technologies such as Artificial Intelligence, Internet of Things and
precision agriculture tools are being incorporated into PACS operations through national-level
pilot projects, if so, the details thereof;
(d) whether any progress has been made in creating the National Database of Cooperatives for
identifying underserved regions and targeting scheme delivery through cooperatives, if so, the
details thereof; and
(e) whether the Government proposes to formulate a long-term strategy to develop PACS as
‘One Stop Shops’ for last-mile service delivery and rural economic inclusion and if so, the
details thereof?
ANSWER
THE MINISTER OF COOPERATION
सहका(cid:303)रता मं(cid:361)ी (SHRI AMIT SHAH)
(a) to (e): A statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) IN RESPECT OF
LOK SABHA STARRED QUESTION NO. 39 FOR REPLY ON 22ND JULY, 2025
ASKED BY SHRI PRAVEEN KHANDELWAL REGARDING TRANSFORMING OF
PACS INTO MULTI-FUNCTIONAL SERVICE HUBS.
(a) The Government is actively computerizing PACS with Enterprise Resource Planning (ERP)
tools and transforming them into multi-functional service hubs by integrating them with over
25 Government schemes expanding PACS into dairy, fisheries, warehousing, retail, financial
and non-financial services, these reforms are geared to make PACS the backbone of rural
service delivery under “Sahakar se Samridhi.”
1. PACS Computerisation Scheme
On 29 June 2022, the Cabinet approved a Centrally Sponsored Scheme to
computerize approximately 63,000 functional PACS over five years (2022–23 to
2026–27) with a total budget of ₹2,516 crore, including ₹1,528 crore from GoI,
₹736 crore from States, and ₹252 crore from NABARD
NABARD is the implementing agency of this project, providing requisite computer
hardware and peripherals together with Enterprise Resource Planning (ERP) based
common software to enable all the PACS to capture records of all credit and non-credit
operations digitally and seamlessly in an efficient and transparent manner. The project
comprises the development of cloud-based common software with cyber security,
uploading and building a National Level Data Repository (NLDR), training, and other
support services. This software is in vernacular language having the flexibility of
customisation as per the needs and requirements of the States.
On-Ground Progress : 73,492 PACS across 31 States/UTs have been approved for
inclusion in the project. Now, the original cost of this project has increased to ₹2,925.39
crore.
Integration with Government Schemes: Under this initiative, PACS are developed
as hubs for delivering benefits from schemes such as PM-Kisan, PMFBY, interest
subvention, fertiliser and seed distribution, PDS outlets, LPG/Petrol/Diesel dealerships,
custom hiring, Jan Aushadhi Kendras, Common Service Centres, etc..
Multi-Purpose PACS Establishment
o The Cabinet on 15.02.2023, approved the formation of multi-purpose
PACS/dairy/fisheries cooperatives in every uncovered Panchayat, converging
schemes like Dairy Infrastructure Development Scheme (DIDF), Pradhan
Mantri Matsya Sampada Yojana (PMMSY), National Programme for DairyDevelopment (NPDD), National Dairy Development Board (NDDB) &
National Fisheries Development Board (NFDB).
o A Standard Operating Procedure (“Margdarshika”) was issued on 19 Sep
2024 to define targets and timelines.
2. Empowering PACS under Model Bye-Laws
Diversification of Activities: New model bye-laws (circulated Jan 2023) enable
PACS to undertake over 25 business activities, including dairy, fisheries, floriculture,
warehousing, PDS, LPG/CNG distribution, custom hiring, insurance, banking services,
community irrigation, etc.
ERP Modules for Multi-Service Delivery: The computerization ERP covers modules
for credit (short/med/long-term), procurement, PDS operations, warehousing,
merchandising, asset management, HR, and more
(b) The Government of India has taken several initiatives to strengthen the Cooperative Sector
across the country alongwith Primary Agricultural Credit Societies (PACS) beyond agricultural
credit. These initiatives is aimed at strengthening rural infrastructure and enhancing income-
generating opportunities at the village level. Under these initiatives, PACS can undertake a
wide range of activities, including:
1. Procurement of agricultural produce on behalf of government agencies.
2. Supply of agri-inputs like seeds, fertilizers, and pesticides.
3. Warehousing and storage facilities include cold storage and godowns.
4. Insurance facilitation for crops, livestock, and health under schemes like PMFBY.
5. Distribution of LPG, petrol, and diesel, along with running Fair Price Shops (FPS).
6. Acting as Common Service Centres (CSCs) to provide digital and financial services.
7. Setting up Jan Aushadhi Kendras to supply affordable medicines.
8. Facilitating minor irrigation, fishery, and dairy activities.
9. Providing services related to banking, marketing, and rural development schemes.
This multi-functional transformation is supported by a unified ERP-based software platform
and is part of the Government’s larger “Sahakar se Samridhi” (Prosperity through
Cooperation) vision.
(c) No, but there is scope for its possible incorporation in PACS Computerization Project,
depending on need and viability.(d) A comprehensive National Cooperative Database (NCD) has been developed by Ministry
of Cooperation, Government of India, with the support of States / UTs. The NCD portal was
launched on 08th March 2024. This database provides a single-point access to information on
over 8.25 lakh cooperatives across the country.
The NCD is accessible at URL: https://cooperatives.gov.in.
This database can be used by policy makers, administrators, academia/researchers,
banks/financing agencies, market players etc. The NCD captures data on parameters such as
sector, location and geographical spread/jurisdiction, membership, economic activities,
linkages etc of individual cooperatives.
The NCD Database is used for identifying the gaps so that new cooperatives gets promotion.
The database also helps in delivery and targeting of schemes meant for various cooperatives.
(e) Yes, the Government has committed to formulate a long-term strategy to integrate
Primary Agricultural Credit Societies (PACS) as ‘multi-service hubs’.
i. Sahakar Se Samriddhi Vision: The Ministry of Cooperation aims to expand PACS
into 2 lakh units, ensuring at least one PACS in every panchayat to act as a single-
window service center for farmers and rural households.
ii. Model Bye-Laws & Legal Reforms: The introduction of model bye-laws allows
PACS to undertake over 25 business activities, enabling them to evolve into
comprehensive rural economic units.
iii. Digital & Infrastructure Support: The PACS computerisation programme ensures
deployment of ERP software, real-time data systems, and support for tech integration
(like AI, drones, IoT) to strengthen their multifunctionality.
This strategic push positions PACS as key instruments for financial inclusion, Agri-services,
welfare delivery, and digital governance in rural India.
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