Govt Amends Norms To Allow Agricultural Credit Societies To Become LPG Distributors

PACS will be given priority in allotment of new petrol/diesel dealerships to strengthen the cooperative movement in the country.

The Centre has amended norms to allow Primary Agricultural Credit Societies (PACS) become LPG distributors. The Ministry of Cooperation, in a statement on Wednesday, said existing PACS having wholesale petrol and diesel dealership licence will be given a one-time option to covert their bulk consumer pumps into retail outlets.

PACS will be given priority in allotment of new petrol/diesel dealerships to strengthen the cooperative movement in the country.

"The Ministry of Petroleum and Natural Gas agreed to convert existing Wholesale Consumer Licensed Primary Agricultural Credit Societies (PACS) into retail outlets. Under this, the existing PACS will be given a one-time option to convert their wholesale consumer pumps into retail outlets, provided they fulfill all the requirements for setting up retail outlets in rural areas, including statutory approvals and other permissions," the Ministry said. 

Additionally, the Ministry said, "Rules will also be changed by the Ministry of Petroleum to make PACS eligible for LPG distributorship."

The decision was taken in a meeting held by Cooperation Minister Amit Shah with Petroleum and Natural Gas Minister Hardeep Singh Puri.

On the initiative of the Ministry of Cooperation, the Ministry of Petroleum and Natural Gas has taken several steps to strengthen PACS and cooperative sugar mills in the country, it further added. 

Moreover, sugar cooperative mills will be given priority to sell ethanol under the ethanol blending programme, and even PACS will be allowed to operate retail outlets on their own.

"It has also been decided that PACS will be considered under the Combined Category -2(CC 2) along with the freedom fighter and sports quota in allotment of new petrol/diesel dealerships. Under the Ethanol Blending Program, the Ministry of Petroleum will ensure that cooperative sugar mills are given priority for ethanol procurement at par with other private companies," the ministry said. 

"By accepting these model bylaws, around 1 lakh PACS across the country will become the pivot of rural economic development and will be able to function as multi-dimensional units. They will help in increasing the income of more than 13 crore farmers of the country through more than 25 activities," it further added. 

Further in the direction of empowerment of PACS, under the centrally sponsored project of the Ministry of Cooperation, the computerisation of PACS is currently going on, which will enable PACS to be linked with NABARD through national software, the statement said.