Union Government Announces Cooperative Life Insurance Company to Boost Sector Growth
Union Minister Amit Shah on Monday announced the establishment of a cooperative life insurance company, aimed at strengthening the cooperative sector in India. Speaking at an event in New Delhi marking the fifth foundation day of the Ministry of Cooperation, Mr. Shah said the ministry has revitalised the cooperative movement, which he described as neglected under previous governments.
Mr. Shah highlighted the success of 'Bharat Taxi', a cooperative-based taxi service, and said it would be expanded to 500 cities within two years. Drawing a parallel, he stated, 'We will be setting up a life insurance company in the cooperative sector. This will help in the growth of cooperatives in the insurance sector.' He noted that the fertiliser cooperative IFFCO already operates in the insurance sector through a joint venture with a Japanese firm.
India currently has approximately 8.5 lakh cooperatives with over 30 crore members. Mr. Shah outlined several initiatives undertaken by the ministry in the past five years, including measures to enhance transparency and professionalism. A database of the cooperative sector has been created to facilitate expansion, and the government is establishing 'Tribhuvan' Sahkari University in Anand, Gujarat, to address human resource needs.
The minister emphasised that cooperatives have diversified beyond traditional sectors like dairy, sugar, and fertilisers. He expressed confidence that the cooperative sector would play a key role in achieving the vision of 'Viksit Bharat' by 2047.
Addressing concerns about central interference in state matters, Mr. Shah stated, 'The Union Ministry is not for interfering in the State subject. It is for policy making.' He claimed that even Congress-ruled states have not complained about interference in the last five years.
Union Minister Rajiv Ranjan Singh accused previous Congress governments of allowing 'mafias' to dominate the cooperative ecosystem, a claim that was echoed by Rajasthan Chief Minister Bhajan Lal Sharma, who alleged corruption during Congress rule. Both ministers asserted that the current NDA government has strengthened the sector. Mr. Singh also noted that around 40% of the dairy sector remains unorganised and that dairy cooperatives are being expanded to bring order.
During the event, Mr. Shah laid foundation stones and inaugurated several projects, including the transfer of 135 godowns with a capacity of 75,000 tonnes, the inauguration of 85 godowns, and virtual foundation for 47 grain storage godowns. Groundbreaking ceremonies were held for 'Sahakar Van' by Amul and NCCF, as well as tissue culture facilities of Bharatiya Beej Sahakari Samiti Ltd (BBSSL) in Barabanki and Jalgaon.
A significant development was the transformation of 50,000 Primary Agriculture Cooperative Societies (PACS) into e-PACS, marking a step towards digital empowerment. An MoU was signed between BBSSL and ICAR to strengthen seed systems. Mr. Shah also released model bye-laws for dairy cooperative societies and a book highlighting the ministry's achievements over the past five years.
The ministry reaffirmed its commitment to building a cooperative ecosystem that connects farmers, women, youth, small producers, dairy farmers, urban cooperatives, and rural institutions.
