Government of India is implementing the Project for Computerization of functional PACS with a total financial outlay of ₹2,516 Crore, which entails bringing all the functional PACS onto an ERP (Enterprise Resource Planning) based common national software, linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs). The National Level Common Software for the project has been developed by NABARD and 25,904 PACS have been onboarded on ERP software in 27 States/ UTs as on 21.07.2024.

    In order to increase the viability of PACS and diversify their business activities to make them vibrant economic entities at Panchayat level, Model Byelaws for PACS have been prepared by the Government after consultation with all the stakeholders and circulated to all the States/ UTs on 5^th January, 2023 for their adoption by PACS after making suitable changes as per respective State Cooperative Acts. These will enable PACS to diversify their business activities by undertaking more than 25 business activities, including dairy, fishery, floriculture, setting up godowns, procurement of foodgrains, fertilizers, seeds, LPG/CNG/Petrol/Diesel distributorship, short-term & long-term credit, custom hiring centers, common service centers, Fair Price Shops (FPS), community irrigation, Business Correspondent activities, etc. By adopting Model Byelaws, PACS would be able to serve as multi-service centers, catering to varied needs of member farmers in rural areas. They will help in improving the operational efficiency, transparency and accountability of PACS; providing agricultural credit and various non-credit services to the farmer members thus giving them additional sources of income.

  Computerization of PACS project aims to provide a comprehensive ERP solution for entailing more than 25 economic activities prescribed under the Model Bye-Laws for PACS covering various modules such as financial services for short, medium & long term loans, procurement operations, Public Distribution Shops (PDS) operations, business planning, warehousing, merchandising, borrowings, asset management, human resource management, etc.

    So far, proposals for computerization of 67,009 PACS from 30 States/ UTs have been sanctioned, for which Rs. 654.23 Cr. has been released as GoI share to the States/UTs concerned. Details of number of PACS sanctioned and GoI share released till date to States/UTs are enclosed as Annexure.

    The ERP (Enterprise Resource Planning) based common national software brings about efficiency in PACS performance through Common Accounting System (CAS) and Management Information System (MIS). Further, governance and transparency in PACS also improves, leading to speedy disbursal of loans, lowering of transaction cost, reduction in imbalances in payments, seamless accounting with DCCBs and StCBs. It will enhance trustworthiness in the working of PACS among farmers, thus contributing towards realizing the vision of “Sahakar se Samridhi”.

    There are more than 13 Crore farmer members associated with about 1.05 lakh PACS. This project enhances farmers access to short-term, medium-term and long-term credit facilities. In addition, computerization of PACS also enables farmers to obtain these services at PACS level itself, through inclusion of different modules for various economic activities, as mentioned under Model Bye-Laws for PACS. It also helps in diversification of PACS economic activities, thus enabling the farmer members to get additional & sustainable sources of income.

   This was stated by the Minister of Cooperation, Shri Amit Shah in a written reply to a question in the Lok Sabha. 

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RK/VV/ASH//RR/PR/PS/1320