States are lapping up the Centre’s scheme launched last year for the computerization of the Primary Agricultural Credit Societies (PACS) with at least 24 States and four Union Territories seeking funds for 58,383 such entities to go the e-way in a big way. The aim is to improve efficiency, transparency and accountability in their operations as envisaged under the project that proposes computerization of about 63,000 functional PACS over a period of 5 years with a total budget outlay of Rs. 2516 crore. The Central Government’s share will be Rs. 1528 crore.
Union Home Minister and Minister of Cooperation Amit Shah informed the Rajya Sabha on Wednesday that the "centrally sponsored project for the computerisation of 63,000 functional PACS and Large Area Multipurpose Society (LAMPS) across the country with a total financial outlay of Rs 2,516 crore is under implementation."
PACS account for 41 per cent (3.01 crore farmers) of the KCC (Kisan Credit Cards) loans given by all entities in the country and 95 per cent of these KCC loans (2.95 crore farmers) through PACS are given to the small and marginal farmers.
PACS constitute the lowest tier of the three-tier Short Term Cooperative Credit (STCC) structure in the country comprising about 13 crore farmers as its members, which is crucial for the development of the rural economy.
The project entails bringing all the functional PACS onto ERP (Enterprise Resource Planning) based common software, linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs).
As per the Union Cooperation Minister, around Rs 11.28 crore has been released to Uttar Pradesh for the computerisation of 1,539 PACS. "The Project Monitoring Units (PMUs) have been set up at Central and State Levels by NABARD," said the Minister, adding "development of software has been started by the National Level Project Software Vendor (NLPSV) selected by NABARD."
"The expected benefit of the computerisation of the PACS project, inter alia, are - increasing efficiency of their operations, ensuring speedy disbursal of loans, lowering of transaction costs, reducing imbalances in payments, seamless accounting with DCCBs and StCBs and increasing transparency," he said. "Implementation of a Common Accounting System (CAS) and Management Information System (MIS) would enable PACS to carry out their operations online and obtain refinance and loans for their various activities from NABARD through DCCBs and StCBs," Shah further stated.