Kerala refuses to adopt Centre’s PACS software, alleges ‘infringement of state rights’ | India News

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The centrally sponsored project for the computerisation of 63,000 PACS was launched to help states in digitalization and end-to-end automation of their business


File photo of Kerala Chief Minister Pinarayi Vijayan. Credit: PTI

Kerala has rejected Union Cooperative Ministry’s proposed model bye-for the Primary Agriculture Credit Society (PACS) which the Centre claims will help it transform into a multipurpose vibrant business entity. While the proposal has been accepted by 26 other state governments, the same is not the case with the Kerala government. The state government strongly believes that the centralised software for PACS is an infringement of the state’s rights. 

Kerala Cooperation and Registration Minister VN Vasavan has alleged that the move by the Centre infringes on federal policies. “The state has developed a robust software for PACS. We are in the final stages of implementing it,” he stated in Thiruvananthapuram.

“Kerala has its software for societies. Our cooperatives provide excellent services and NABARD has also approved the software. We do not need the centrally sponsored software as we have a robust system in place,” stated the minister. 

Kerala government vs BJP

The Bharatiya Janata Party (BJP) has come down heavily on the state government of Chief Minister Pinarayi Vijayan for refusing to accept the model bye-laws.

“It is unfortunate that the government of Kerala has taken such a drastic step. The Modi government plans to help farmers to get easy loans and aid them through various schemes like DBT. This move of the left government is to help those hoarding black money and hide illegal transactions that are being done in the name of such societies,” responded Adv E Krishnadas, the Kerala BJP treasurer. 

The centrally sponsored project for the computerisation of 63,000 PACS was launched to help states in digitalisation and end-to-end automation of their businesses. The Centre aims to bring transparency and enhance trustworthiness in the working of PACS.

It also envisions PACS becoming a nodal service centre in the delivery of the Interest Subvention Scheme (ISS), PMFBY, and Direct Benefit Transfer (DBT) for various services and provision of inputs like fertilisers and seeds etc. 

While inaugurating the Agriculture Infrastructure Fund (AIF) in August 2020, Prime Minister Narendra Modi had announced a separate line of credit through which PACS will get term loans at four per cent, which combined with its interest subvention under AIF, would come down to just one per cent.

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