Strengthening of Cooperative Institutions in Vellore - 11th August 2026 - Ministry of Cooperation - Gazette Notification PDF
Issued by Ministry of Cooperation
Read or download the official PDF of this gazette notification issued by the Ministry of Cooperation on 11th August 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary The Ministry of Cooperation has established a multi-layered institutional mechanism to monitor and strengthen cooperative institutions across India, with a specific focus on the Vellore district in Tamil Nadu. The initiative involves the implementation of a national computerization project, the adoption of model bye-laws for business diversification, and extensive capacity-building programs. As of mid-2026, significant milestones have been reached in digital onboarding, infrastructure delivery, and financial disbursements to enhance the transparency and efficiency of cooperative societies.
Key Points / Main Content
Institutional Framework and Governance
- Multi-layered Committees: Committees have been formed at four levels: Inter-Ministerial (National), National Level Coordination, State Cooperative Development (SCDC), and District Cooperative Development (DCDC).
- Cooperative Ranking Framework: A new framework uses standardized parameters—such as audit compliance and financial performance—to allow the Registrar of Cooperative Societies (RCS) to conduct independent assessments.
- Local Governance: In Tamil Nadu, two SCDC and two DCDC meetings have been convened to monitor sector initiatives.
Digitalization and Infrastructure
- PACS Computerization: Rs 55.73 crore has been disbursed to Tamil Nadu for the computerization of Primary Agricultural Credit Societies (PACS).
- ERP Onboarding: As of July 15, 2026, 4,481 PACS in the state (including 64 in Vellore) have been onboarded onto a common national ERP software to improve accounting and digital service delivery.
- Hardware Delivery: Hardware has been delivered to 4,532 PACS across the state to support the transition to digital operations.
Operational Diversification
- Expanded Business Activities: New Model Bye-laws allow PACS to undertake more than 25 diversified business activities.
- Service Delivery in Vellore: Functional PACS in Vellore currently operate as Common Service Centres (55 units), micro-ATM providers (43 units), and PM Kisan Samriddhi Kendras (55 units).
- Facility Management: PACS in the district also manage godowns (43), agricultural machinery services (28), and pharmacies (9).
Capacity Building and Financial Support
- Training Programs: Over 1.31 lakh participants in Tamil Nadu, including 2,688 from Vellore, have been trained in governance and financial management over the last five years.
- Specialized Training: NABARD conducted 578 programs between FY 2023-24 and FY 2025-26, focusing on areas like women empowerment and the impact of NPAs on financial health.
- NCDC Assistance: Financial and technical assistance is available through the National Cooperative Development Corporation for eligible projects in agriculture, dairy, and fisheries.
Impact Analysis
Stakeholder: Primary Agricultural Credit Societies (PACS) Impact PACS are being transformed from traditional credit providers into multi-purpose service centers with improved transparency, digital accounting, and diversified revenue streams. Action Required Societies must adopt the Model Bye-laws, complete onboarding to the national ERP software, and ensure staff participate in capacity-building programs for digital literacy.
Stakeholder: Cooperative Members and Farmers Impact Members gain localized access to a wider range of services, including micro-ATMs, fair price shops, agricultural machinery, and institutional credit. Action Required Members should engage with village-level awareness programmes to understand new government schemes and utilize the expanded digital services provided by their local societies.
Stakeholder: State and District Administration Impact The Chief Secretary (State level) and District Collector (District level) are now directly responsible for chaired committees that monitor the effective implementation of cooperative initiatives. Action Required The administration must continue convening regular SCDC and DCDC meetings and utilize the Cooperative Ranking Framework to identify and strengthen underperforming societies.
Key Entities Referenced
Ministry of Cooperation: The primary central ministry responsible for strengthening and monitoring cooperative sector initiatives through multi-layered institutional mechanisms.
Central Sector Project for Computerization of PACS: An initiative focused on digital transformation and onboarding Primary Agricultural Credit Societies onto a common ERP-based national software to improve transparency and service delivery.
National Plan for formation of new Multipurpose PACS, Dairy and Fishery Cooperative Societies: A five-year plan aimed at achieving cooperative coverage in every uncovered Panchayat and village across the country.
National Cooperative Development Corporation (NCDC): An organization providing financial and technical assistance for eligible cooperative projects in sectors such as agriculture, dairy, and fisheries.
Vellore, Tamil Nadu: The specific geographic focus area for the implementation and monitoring of cooperative institution strengthening measures described in the document.
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Ministry of Cooperation
Strengthening of Cooperative Institutions in
Vellore
प्रव तथ: 11 AUG 2026 5:46PM by PIB Delhi
To examine the functioning of cooperative institutions across the country, including those in Vellore
district of Tamil Nadu, the Ministry of Cooperation (MoC) has adopted a multi-layered institutional
mechanism for monitoring cooperative sector initiatives at the State and district levels, with a view to
ensuring effective coordination, implementation and monitoring. For this purpose, committees have been
constituted at various levels, from the national level to the district level. These include:
i. Inter-Ministerial Committee (IMC) – Chaired by the Hon’ble Minister of Home Affairs & Cooperation;
ii. National Level Coordination Committee (NLCC) – Chaired by the Secretary, Ministry of Cooperation;
iii. State Cooperative Development Committee (SCDC) – Chaired by the Chief Secretary of the respective
State/UT; and
iv. District Cooperative Development Committee (DCDC) – Chaired by the District Collector of the
respective district.
As per information received from the State of Tamil Nadu, two SCDC meetings and two DCDC meetings
have been convened so far.
Further, Ministry has launched the ‘Cooperative Ranking Framework’ which provides standardized
parameters—including audit compliance, financial performance, and operational activities—that enable
the State Registrar of Cooperative Societies (RCS) to conduct independent assessments and take necessary
steps to strengthen societies at the State, district, and block levels.
The sector-wise details of the total number and the number of functional cooperative societies in Vellore
district are attached at Annexure-A.
The Government has undertaken a series of digital, financial and capacity-building measures to strengthen
governance, professional management, service delivery, operational efficiency and outreach of
cooperative institutions, including those functioning in Vellore district:
Under the National Plan for formation of new Multipurpose PACS, Dairy and Fishery Cooperative
Societies to achieve cooperative coverage in every uncovered Panchayat/village over a period of
five years, as on 15.07.2026, a 27 PACS, 940 DCS and 36 FCS have been registered in the State of
Tamil Nadu including 11 DCS in the Vellore district.
Under the Central Sector Project for Computerization of PACS, 4,561 PACS have been sanctioned
and Rs 55.73 Cr have been disbursed to the State of Tamil Nadu. As on 15.07.2026, hardware has
been delivered to 4,532 PACS and 4,481 PACS have been onboarded onto the common ERP-based
national software including 64 PACS in Vellore District. The initiative is aimed at improving
transparency, accounting, audit, monitoring, digital service delivery and integration with the
cooperative banking structure.The Model Bye-laws circulated by the Ministry of Cooperation and adopted by the State enable
PACS to undertake more than 25 diversified business activities.
As per information provided by the State of Tamil Nadu, in Vellore district, 55 PACS are
functioning as Common Service Centres and Fair Price Shops; 43 PACS are providing micro-ATM
facilities, 55 PACS are working as PM Kisan Samriddhi Kendras.
Further, 28 PACS are providing agricultural machinery services, 9 are operating Pharmacy/Medical
Store, one is operating a Cooperative Medical Shop, 43 PACS have godowns.
For improving professional management and long-term institutional sustainability, capacity-building
programmes are conducted through the National Council for Cooperative Training. In Tamil Nadu,
such programmes are implemented through the Natesan Institute of Cooperative Management,
Chennai, and the Institute of Cooperative Management, Madurai. During the last five years, these
institutions have trained 1,31,499 participants in the State, including 2,688 participants from Vellore
district, in areas such as cooperative governance, financial management, digital literacy,
computerization and business diversification.
In addition, 4,097 PACS Secretaries in Tamil Nadu have been trained in the effective use of
Common Service Centre services; 4 programmes conducted for capacity building of 105 BoDs /
Secretaries of M-PACS with emphasis on good governance, professional management, business
diversification and effective functioning of societies.
Village-level awareness programmes are being conducted to disseminate information regarding
Government schemes, institutional credit, market linkages and business diversification. In Tamil
Nadu, 560 such programmes have benefited 72,885 members, including 2,234 members from
Vellore district.
NABARD has conducted various cooperative training programmes covering key areas such as
women empowerment for PACS staff, preparation of Business Development Plans, the impact of
NPAs on the financial health of PACS, and corporate governance in PACS. During FY 2023-24 to
FY 2025-26, a total of 578 such cooperative training programmes were conducted in Tamil Nadu,
including Vellore, training 15,635 officials.
Financial and technical assistance is also available through the National Cooperative Development
Corporation for eligible cooperative projects in agriculture, dairy, fisheries, handloom, marketing,
processing, storage and allied sectors, subject to prescribed eligibility conditions and project
appraisal. The details of financial assistance in the State of Tamil Nadu during last five years by
NCDC is provided at Annexure-B
***
Annexure-A
Sector-wise number of cooperative societies in Vellore district, Tamil Nadu
Sector Total Number of Number of
Societies Functional
No.
Societies
1 Agriculture & Allied Cooperative 4 1
2 Agro Processing / Industrial Cooperative 9 3
3 Consumer Cooperative 7 7Sector Total Number of Number of
No. Societies Functional
Societies
4 Credit & Thrift Society 32 30
5 Dairy Cooperative 171 160
6 Fishery Cooperative 5 5
7 Handloom Textile & Weavers Cooperative 36 36
8 Housing Cooperative Society 15 7
9 Marketing Cooperative Society 2 2
10 Multipurpose Cooperative 1 0
11 Primary Agricultural Credit Societies 55 55
(PACS/LAMPS/FSS)
12 Sugar Mills Cooperative 1 1
13 Urban Cooperative Bank (UCB) 3 3
14 Women Welfare Cooperative Society 4 4
Total 345 314
Source: NCD portal as on 15.07.2026.
Annexure-B
Last 5 Years Activity wise Disbursement in the state of Tamil Nadu
(Rs in Crore )
S. Activity 2021- 2022- 2023- 2024- 2025- 2026-27
No. 22 23 24 25 26 (as on
31.07.2026)
1 SERVICE COOP. 16.42 0.52 - - - -2 I C D P 33.90 17.60 1.43 - - -
3 DAIRY & LIVE STOCK - 9.33 - 15.50 12.49 -
4 FPO 0.38 2.34 2.53 2.50 3.03 0.65
5 FISHERIES 0.04 0.57 0.17 0.40 300.00 -
6 FISHERIES FPO (FFPO) - 0.12 0.15 5.78 9.29 0.02
Total 50.74 30.48 4.28 24.18 324.81 0.67
This information was given by Union Home Minister and Minister of Cooperation, Shri Amit Shah in a
written reply in Lok Sabha.
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AK/AP
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