CRCS hosts key talks on reviving sick co-ops; national level co-ops attend

The Central Registrar of Cooperative Societies and Additional Secretary (Ministry of Cooperation) Rabindra Kumar Agarwal, chaired a pivotal meeting with representatives of national-level cooperative institutions and federations to deliberate on the draft guidelines for the Cooperative Rehabilitation, Reconstruction, and Development Fund (CRRDF).

This newly established fund aims to support the rehabilitation and development of cooperative societies across the country.

The meeting brought together Managing Directors, CEOs, and other representatives of national cooperative institutions who shared their insights and suggestions on the proposed guidelines.

After a thorough discussion, it was decided that the final draft of the guidelines would be ready by the end of this month.

The discussions revolved around creating a robust framework to ensure the CRRDF effectively addresses challenges faced by cooperatives, including financial instability and modernization needs.

A participant stated, “The CRRDF is expected to play a pivotal role in addressing the challenges faced by cooperatives, fostering their growth, and aligning with the government’s vision of empowering cooperative institutions as engines of economic growth and social upliftment.”

Another representative emphasized simplifying the procedures for accessing the fund to ensure that even sick cooperatives could benefit without bureaucratic hurdles. The meeting, the second in this series, marked the first occasion where the Central Registrar of Cooperative Societies (CRCS) actively participated.

The Cooperative Rehabilitation, Reconstruction, and Development Fund was established under Section 63A of the Multi-State Cooperative Societies (MSCS) Act. The Act mandates that profitable multi-State cooperatives contribute annually to the fund, with a cap of Rs 1 crore or 1% of their net profits from the last three financial years, whichever is less.

In addition, all multi-State cooperatives will contribute 0.005% to 0.1% of their net profits to ensure a steady flow of resources. These funds will be utilized to revive sick cooperatives and support development projects, ensuring sustainability and resilience in the sector.

 The Ministry of Cooperation reiterated its commitment to strengthening the cooperative movement, and stakeholders expressed optimism about the fund’s potential to create a significant impact.

 The finalized guidelines are expected to be released soon, setting the stage for a new era of cooperative rehabilitation and development.