Page 13 - NIS English 16-31 July 2022

CABINET DECISIONS

APPROVAL FOR COMPUTERIZATION OF PRIMARY AGRICULTURAL CREDIT

SOCIETIES, BIG RELIEF TO DOMESTIC CRUDE OIL PRODUCERS

The Central Government is committed to the betterment of the farmers and the agricultural
sector. As part of its plan to empower farmers, the Union Cabinet has approved the
computerization of 63 thousand Primary Agricultural Credit Societies (PACS) in the country.
PACS plays its role at the lowest level in the third-tier system of Short Term Cooperative
Credit (STCC) in the country. It has about 130 million farmers as its members and is
important for the growth of the rural economy. Computerization will benefit farmers and
most of the small and marginal farmers engaged in agricultural work. At the same time, the
Union Cabinet has approved the deregulation of the sale of crude oil
produced in the domestic market.

n DECISION - The Cabinet approved an expenditure small and marginal farmers through PACS.
of Rs. 2,516 crore for the computerization of 63
thousand Primary Agricultural Credit Societies n DECISION: The Union Cabinet approved to
(PACS) of the country for the purpose of promoting deregulate the sale of crude oil produced in the
financial inclusion. domestic market. This decision will take effect
n IMPACT: The objective of this computerization from October 1, 2022.
program is to increase the efficiency of PACS n IMPACT: Under this, from October 1, the
and bring transparency and accountability to requirement to sell crude oil to the government or
their operations. Under this, PACS will also be its designated units or state-owned companies in
provided the facility to diversify its business and the Production Partnership Agreement (PSC) will
start various activities and services. The project end. This means that producers will be free to sell
will cost a total of Rs 2,516 crore. The central crude oil produced in their areas in the domestic
government will bear the burden of Rs 1,528 crore. market. At present 99% of the crude produced in
This decision will benefit 13 crores, especially the country is allocated to government refineries.
small and marginal farmers. n DECISION: Approval of Strategic Partnership
n This project will help in improving access to PACS Agreement between the Ministry of New and
as a hub for banking activities as well as non- Renewable Energy of India and the International
banking activities besides improving digitization Renewable Energy Agency.
in rural areas. n Impact: It aims to promote ambitious change,

n The share of PACS in Kisan Credit Card (KCC) leadership, and knowledge in the field of green
loans given by all institutions in the country is 41 energy-based renewable energy in India. The
percent (3.01 crore farmers) and 95 percent (2.95 agreement will help India's energy transformation
crore farmers) of these KCC loans were given to efforts and help the world tackle climate change.

New India Samachar July 16-31, 2022 11