PACS may be allowed to sell petroleum products, run PDS shops: Draft Model By-laws

The Centre may allow the Primary Agriculture Credit Societies (PACS) to undertake activities like dealership of petroleum products, running PDS shops, and developing hospital and educational institutions. The Ministry of Cooperation has floated a draft 'Model By-laws of PACS' in this regard. It has invited suggestions on this from the state governments and other stakeholders by July 19. The existing framework does not allow PACS to diversify in other areas apart from their core business.

The draft says that PACS should be allowed to work as Bank Mitras and common service centres (CSCs), and provide cold storage and godown facilities. Besides, they should also be allowed to work in the dairy, fishery, irrigation and green-energy sectors. These cooperatives may be permitted to provide community-based service in the field of education, health, tourism and environmental and sustainable development activities.

The draft says that the objective of these cooperatives is to provide to its members timely and adequate short-term and medium-term credit. These loans may be sanctioned for development activities related to agriculture, consumption or medical purpose. However, this loan would be given against collateral/pledge financing.

According to the draft, the PACS can "engage in service or business operations (like infrastructure development, community centres/ hospital or education institutions, procurement of foodgrains, fair price shop, or any Govt scheme, ....” It adds that the dealership/agency/distributorship or supply of LPG/petrol/diesel/green energy/farm or household consumables/farm machinery, training of members for skill improvement, etc. “may enhance the facilities and income of Society or its members.”

The government has sought the opinion of the state governments on the suggestions proposed as PACS fall in the domain of states. The Cabinet decided last week to computerize all functional 63,000 PACS over the next five years with a budget outlay of Rs 2,516 crore. At present, the majority of PACS have not computerized their operations and are still functioning manually.