Is the Government Setting Up a Cooperative Insurance Firm and Two Lakh New PACS?
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Synopsis
Union Minister Amit Shah unveils a transformative initiative for India's cooperative sector, including a new insurance firm and the establishment of two lakh new PACS. This move aims to bolster financial security and foster economic growth within local communities. Discover how these developments will reshape cooperative enterprises and empower farmers across the nation.
Key Takeaways
- New cooperative insurance firm to be established for tailored services.
- Two lakh PACS will ensure cooperative presence in every panchayat.
- PACS will engage in 22 diverse activities, enhancing functionality.
- Government waives Rs 15,000 crore in income tax for cooperative sugar factories.
- Sahakar Taxi Cooperative Limited promotes equitable profit sharing.
Mumbai, June 20 (NationPress) - On Friday, Union Minister of Cooperation, Amit Shah, announced that the cooperation ministry has made several pivotal decisions aimed at revitalizing the cooperative sector nationwide.
The government is set to launch a cooperative insurance firm designed to provide insurance services tailored to the cooperative sector, which is anticipated to unlock various new opportunities.
This new entity will offer customized insurance solutions for cooperative organizations, ensuring enhanced risk coverage and financial stability.
Furthermore, the establishment of two lakh Primary Agricultural Cooperative Societies (PACS) is on the horizon, ensuring their reach in every panchayat.
These new PACS will be multifunctional, capable of executing 22 diverse activities.
“In addition to their current role in providing primary agricultural funds, PACS will engage in various ventures such as operating petrol stations, managing gas distribution, facilitating maintenance under the 'Har Ghar Nal Se Jal Yojana', and handling railway and air ticket bookings,” he stated.
During a conference organized by NAFED, Union Minister Shah highlighted that out of 71,000 PACS, nearly 52,000 have become operational due to computerization and related initiatives. He also announced that the groundwork for the Tribhuvan Sahkari University, which will function at a national level, will commence by August.
“While cooperation serves as a global system, for India, it embodies the philosophy of our traditional way of life. Coming together, thinking together, and supporting one another in joy and sorrow — this is the essence of India’s philosophy,” he expressed.
“Whether it's about purchasing farmers' grains at MSP across the nation or providing essential food grains under the PM Garib Kalyan Anna Yojana, NCCF and NAFED are vital in these initiatives,” he added.
He noted that to strengthen the cooperative movement, the government has developed a database accessible at the state Registrar level.
To empower taxi drivers and foster cooperative entrepreneurship, the Sahakar Taxi Cooperative Limited has been officially registered.
Under this structure, cab drivers will become direct members and co-owners, enabling equitable profit distribution, democratic management, and ensuring that the benefits reach those operating the services directly.
Additionally, Union Minister Shah remarked that the government has enacted several measures to alleviate burdens on the cooperative sector regarding income tax.
The Centre has waived income tax liabilities amounting to Rs 15,000 crore for cooperative sugar factories in Maharashtra and has devised a permanent solution to alleviate their tax burdens.
Point of View
The recent announcements by Union Minister Amit Shah highlight a significant shift towards empowering the cooperative sector in India. With the establishment of new PACS and a cooperative insurance firm, the government demonstrates a commitment to enhancing the livelihoods of farmers and promoting financial stability. This approach not only aligns with India's traditional values of cooperation but also aims to foster economic growth through innovative solutions.
NationPress
20/06/2025
Frequently Asked Questions
What is the purpose of the new cooperative insurance firm?
The new cooperative insurance firm aims to provide tailored insurance services specifically for cooperative institutions, ensuring better risk coverage and financial security.
How many new PACS will be established?
The government plans to establish two lakh new Primary Agricultural Cooperative Societies (PACS) across the country.
What activities can the new PACS engage in?
The new PACS will be capable of engaging in 22 different activities, including operating petrol stations and managing gas distribution.
What is the significance of the Sahakar Taxi Cooperative Limited?
The Sahakar Taxi Cooperative Limited empowers taxi drivers by allowing them to become direct members and co-owners, promoting equitable profit sharing and democratic governance.
What tax relief has been provided to cooperative sugar factories?
The Centre has waived income tax liabilities worth Rs 15,000 crore for cooperative sugar factories in Maharashtra, providing significant financial relief.
