3-Aug-2022: Achievements of Sahakar-se-Samriddhi

In order to revitalize the cooperative sector, bringing transparency, modernization, computerization, creating competitive cooperatives and deepening its reach to the grassroots across the country including the State of Uttarakhand, the Ministry of Cooperation has been taking various initiatives under ‘Sahakar-se-Samriddhi’ including inter-alia:

  1. On 1st June, 2022, Union Cabinet has taken a decision allowing cooperatives to register as ‘buyer’ on Government e-Marketing platform, enabling them to procure goods and services from about 40 lakh vendors registered on the GeM portal throughout the country. This will help cooperatives in making savings and improving transparency in their procurement system.
  2. A centrally sponsored project “Computerization of Primary Agriculture Credit Societies (PACS)” has been launched on 29th June, 2022 with a budgetary outlay of Rs 2,516 crores for digitalization of 63,000 functional PACS which are at the bottom of the three-tier rural credit structure.
  3. Draft model bye-laws for PACS are being prepared in consultation with the State Governments, National Cooperative Federations and all other stakeholders to diversify their activities and make them vibrant multi-purpose economic entities at village level.
  4. Government vide its notification dated 25th October, 2021 offered a major relief to cooperative sugar mills by clarifying that sugar co-operative mills shall not be subjected to additional income tax for paying higher sugarcane prices to farmers upto to the Fair and Remunerative Price (FRP) or State Advised Price (SAP), as the case may be.
  5. Surcharge on Co-operative societies was reduced from 12 % to 7% for those cooperative societies having a total income of more than Rs. 1 Cr. and up to Rs. 10 Cr. to enhance the income of Co-operative societies and its members.
  6. Minimum Alternate Tax (MAT) rate reduced for the Co-operatives from 18.5% to 15% to provide them a level playing field with Corporates.
  7. In order to provide adequate, affordable and timely credit to the co-operative institutions to give a boost to the co-operative based economic development model, non-scheduled Urban Co-operative Banks, State Co-operative Banks and District Central Co-operative Banks has been notified as Member Lending Institutions in Guarantee Fund Trust (CGTMSE) Scheme vide circular dated 3rd February, 2022.
  8. On 8th June, 2022, Government of India has taken decisions in the co-operative banking sector to give new impetus to the development of cooperatives viz:
    1. The limit of individual housing loan has been doubled for Urban Co-operative Banks (UCBs) and Rural Co-operative Banks (RCBs – State Cooperative Banks and District Central Cooperative Banks).
    2. The RCBs have been allowed to lend to Commercial Real Estate Residential Housing sector.
    3. UCBs have now been allowed to provide doorstep-banking facility to their customers like commercial banks.
  9. The Ministry is also taking initiative to formulate ‘Cooperation to Prosperity’ Scheme with the aim of all round development of cooperatives.
  10. A scheme for modernizing and professionalizing the cooperative education and training institutions across the country is also under formulation.

In addition to above, the Ministry is presently in the process of formulating a new National Level Policy for cooperatives. A two-day National Conference on the new Cooperation Policy was held on 12th and 13th April, 2022 with Cooperation Secretaries / RCSs from all the States/UTs, wherein discussions were, inter alia, held on legal framework, identification of regulatory, policy & operational barriers; ease of doing business; reforms for strengthening governance; promoting new and social cooperatives; revitalizing defunct ones; making cooperatives vibrant economic entities; cooperation among cooperatives and increasing membership of cooperatives. Further, suggestions on the draft Policy were sought from the stakeholders, including general public, through the website of the Ministry.

All the schemes/projects of Government of India are oriented towards revitalizing the Cooperative sector in all States, including the state of Uttarakhand. Since creation of this Ministry on 6th July, 2021, an amount of Rs. 73 crores has been released by the National Cooperative Development Corporation (NCDC) as a loan amount for the implementation of NCDC assisted ‘Rajya Samekit Vikas Pariyojana’ aiming at holistic integrated development including creation of infrastructure, cooperative cluster farming, market expansion and generation of employment avenues.   

15-Sep-2021: Revamped Gold Monetisation Scheme

The Gems & Jewellery sector is one of the important sectors of Indian Economy, with a contribution of around 7% to GDP, 10-12% share in country’s total merchandise export and being one of the leading sectors in terms of employment generation providing employment to approx. 5 million skilled and semi-skilled workforce.

The Minister of State for Commerce and Industry, Anupriya Patel said that she is pleased to learn that without any significant domestic production of raw materials, India has emerged as the leader in diamond manufacturing and export along with being one of largest exporter of other segments of industry such as gold jewellery, silver jewellery, coloured gemstones and synthetic stones. As such, gems and jewellery sector is an ideal example ‘Make in India’, the vision of Honourable Prime Minister.

She informed that the Gems and Jewellery sector has been one of the worst-hit sectors in India during the Covid-19 pandemic and its exports saw a record decline of (-) 98% in April 2020 due to the complete lockdown situation in the country.

However, the GJEPC, being apex body of gems and jewellery exporters, has undertaken prompt measures in terms of constantly interacting with the industry, understanding their requirements, and working closely with the government so as to chalk out the desired measures for supporting the industry in terms of sustaining, surviving and reviving back even amid a critical situation like Covid-19.

Consequent to such measures, the sector shown swift recovery as declining rate of gems and jewellery exports fell to (-) 6 % in Q3 as compared to (-) 72 % recorded in quarter 1  and in Q4 exports of the gems and jewellery witnessed a positive growth of around 15%. This trend has continued this year also and gems and jewellery exports achieved pre-Covid level of exports amounting US$ 9.2 billion in Q1 2021-22.

On the policy front, the Government has introduced a number of reforms, such as the revamped Gold Monetisation Scheme, reduction in import duty of gold, hallmarking, etc. which would help the industry to grow to the next level. Other issues flagged by GJEPC and industry from time to time are also being looked into and expected to be resolved soon.

She said that she’s sure this would not only help the industry to transform but will take the exports on a steep upward trajectory. This would help the industry to achieve export target of US$ 43.75 billion this year as well as to achieve goal of GJEPC to take gems and jewellery exports to USD 75 billion in coming years.

With support of the Government, GJEPC organized various virtual trade events last year like virtual Buyer Seller Meets, virtual IIJS, virtual International Gems & Jewellery Show (e-IGJS), India Global Connect, Webinars etc. These initiatives have helped the industry to bounce back quickly as the pandemic receded and global markets opened up.

She said that she has been informed that IIJS Premiere is the country’s largest B2B show in gems and jewellery sector and also the first show being organized by GJEPC in physical format after the onset of the COVID-19 pandemic.

“I am confident that the show would provide platform to Indian jewellery manufacturers to showcase versatile jewellery crafted with the highest standards of design and finish and also to work with retailers, enabling them to gain insights into demand trends and product designs. On the other hand, the show would cater to the sourcing needs of the domestic and international buyers before the start of the festive season,” the MoS said.

She also wished the 37th edition of IIJS Premiere a tremendous success!

20-Aug-2020: Loans worth more than Rs 1 Lakh crore disbursed under ECLGS

Under the 100% Emergency Credit Line Guarantee Scheme (ECLGS) backed by a Government of India guarantee, Banks from Public & Private Sectors have sanctioned loans worth over Rs. 1.5 lakh crore as of 18th August, 2020, of which more than Rs 1 lakh crore has already been disbursed. The ECLGS was announced by the Government as a part of Aatma Nirbhar Bharat Package, to mitigate the distress caused by lockdown due to COVID-19 by providing credit to different sectors, especially MSMEs.

Under the ECLGS, Public Sector Banks (PSBs) have sanctioned loans of Rs 76,044.44 crore, out of which Rs 56,483.41 crore has already been disbursed. Whereas Private Sector Banks have sanctioned loans of Rs 74,715.02 crore out of which Rs 45,762.36 crore has already been disbursed. The top lenders under the Scheme are State Bank of India (SBI), Canara Bank, Punjab National Bank (PNB), Bank of India, Union Bank of India and HDFC Bank Ltd.

  1. Special liquidity scheme for NBFCs/HFCs
  2. Partial Credit Guarantee Scheme (PCGS)
  3. Restructuring of debt scheme
  4. Banking Ombudsman Scheme