Strengthening of cooperative societies in Odisha

Why in news

The article provides an update on the number of cooperative societies in Odisha and details about the Central Sector project for Computerization of Primary Agricultural Credit Societies (PACS), including Odisha's participation and financial assistance received.

Exam relevance

GS2, GS3 · Governance, Economy · Prelims · Mains

Key facts

1. As on 15.07.2026, Odisha has a total of 8,667 cooperative societies, with 8,063 being functional.
2. The Central Sector project for Computerization of PACS was launched in 2022.
3. Initially, 63,000 PACS were approved under the project with a financial outlay of ₹2,516 crore.
4. The project has been expanded to cover 79,630 PACS with a revised financial outlay of ₹2,925.39 crore.
5. Odisha joined the PACS computerization project in 2025.
6. A total of 4,240 PACS have been sanctioned under the computerization project in Odisha.
7. Financial assistance of ₹25.07 crore has been provided to Odisha under the project, including ₹18.07 crore during FY 2025–26 and ₹7.00 crore during FY 2026–27.
8. As on 30.06.2026, the National Cooperative Development Corporation (NCDC) has cumulatively disbursed ₹3,352.03 crore for the development of the cooperative sector in Odisha.

Prelims pointers

• Number of cooperative societies in Odisha and functional status.
• Nature of the PACS computerization project (Central Sector Scheme).
• Objective of the PACS computerization project (common ERP, linking with NABARD).
• Launch year and financial outlay of the PACS computerization project.
• Role of National Cooperative Development Corporation (NCDC) in cooperative sector development.

Mains practice question

Discuss the significance of the Central Sector project for Computerization of Primary Agricultural Credit Societies (PACS) in strengthening the cooperative movement and promoting financial inclusion in rural India. (150 words)

Static linkage

The cooperative movement in India, particularly Primary Agricultural Credit Societies (PACS), plays a crucial role in rural credit delivery and financial inclusion. Government initiatives like computerization aim to modernize these institutions, aligning with broader goals of digital governance and strengthening the rural economy. The role of institutions like NABARD and NCDC is central to the development and regulation of the cooperative sector.

Significance

The computerization of PACS enhances the operational efficiency and transparency of cooperative societies, improving their ability to deliver credit and services to rural populations. It facilitates better data management, reduces manual errors, and enables seamless integration with higher-tier cooperative banks and NABARD, thereby strengthening the overall rural financial architecture. This digital transformation is crucial for promoting financial inclusion, ensuring accountability, and fostering sustainable development in the agricultural sector.