Co-operative Credit Guarantee, a Game Changer
The cooperative sector would be grateful to the Hon’ble Prime Minister for having taken many important steps to rejuvenate the cooperative sector which has been relegated to background for past many years. We have the inspiring slogan of “Sahakar se samruddhi“ or prosperity through cooperatives and to ensure that it happens in word and spirit, the Hon’ble PM has given a separate Ministry for Cooperatives for the first time in independent India and has entrusted the Ministry to Hon’ble Amitbhai who has been one among us as a cooperator.
The economy of any country grows only if more and more people are employed and become contributors to the economy. Job seekers turn into job givers or become self employed. It can be termed as SAMRUDDHI.
In India roughly over 90 percent of the employment and nearly 50 per cent of GDP is said to be accounted for by the unorganised sector. Cooperative is an ideal form of enterprise at grass roots level and for collective of people who are individually financially not very well off to do business on their own. Cooperatives have the potential to enter many areas of economic activities.
SAHAKAR SE SAMRIDHI or Prosperity through cooperatives, is indicative of the Government’s recognition of the potential of cooperatives.
The seriousness is reflected in this year’s budget proposals, which has some very well thought out allocations to the cooperative sector. The government has budgeted to allocate Rs. 900 crore this year, for the newly formed Ministry of Cooperation, which is 3 times more than the funds sanctioned for the cooperative sector earlier. The Budget has rightly identified digitalising PACs as the immediate priority to ensure transparency, ease of monitoring and efficient transfer of funds to them under central schemes. An amount of Rs. 350 crore has been earmarked exclusively for this purpose in this financial year. Cooperative Education and training will get a boost on account of VAMNICOM being recognised as an institution of importance and has been allowed to have its own annual budget.
A very important allocation of Rs. 274 crore has been proposed in this year’s budget of Umbrella Scheme for Cooperatives. This is very visionary move on part of the Government as the primary cooperatives in every sector will grow and become more effective if they are guided and helped to diversify in new sectors. This will provide much needed professional support to the cooperatives. It is also to be highlighted that the urban cooperative banking sector has taken approval of RBI and register an entity called National Cooperative Finance and Development Corporation(NCFDC).
Digitalising PACs, bringing block chain technology, Artificial Intelligence, to bring grass roots entities to function effectively, having reliable and updated databank in the sector are some of the long overdue steps being taken by the government for the sector.
These initiatives are also expected to attract the youth to cooperatives.
There is an immense scope for youth to be introducing start up spirit in cooperatives provided there is right encouragement in terms of easing of regulation and overall ease of doing things. This will help in cooperatives being formed in different sections of economy and in areas where cooperatives are not very many in number.
Collective ‘animal spirit’ for cooperatives led by youth to succeed is to be kindled.
Requirement of funding for the Cooperative Sector
At present cooperatives have very limited avenues of funding their operations. They do not have access to the money markets.
As stated simple rules and regulations in formation and regulation of cooperative is a must.
The new age cooperatives need to be youth driven, and youth are comfortable with technology for the cooperative also to be technology and internet driven
Courtesy: PIB Srinagar
