Reforms to Revitalize Maharashtra’s Cooperative Sector

Fadnavis Unveils Ambitious Reforms to Revitalize Maharashtra’s Cooperative Sector

May 13, 2025

In a significant move to rejuvenate Maharashtra's cooperative sector, Chief Minister Devendra Fadnavis announced a series of bold reforms during a symposium hosted by the Maharashtra State Cooperative (MSC) Bank at the Yashwantrao Chavan Centre in Mumbai. The event, part of the International Year of Cooperatives celebrations, brought together key stakeholders to discuss the future of cooperative institutions in the state.

Key Announcements by Chief Minister Fadnavis

Empowering Cooperative Banks to Manage Government Accounts : Fadnavis proposed allowing high-performing cooperative banks to handle government accounts. This initiative aims to expand the financial scope and credibility of cooperative banks, recognizing their potential in managing public funds efficiently.
Formation of Two Expert Committees: To align the cooperative sector with contemporary needs, the government will establish two expert committees:
Support for Housing Societies and Self-Redevelopment Projects : Highlighting that nearly half of Maharashtra's cooperative societies are housing societies, Fadnavis emphasized ongoing reforms to streamline their functioning. The government has implemented measures to support self-redevelopment projects by providing regulatory concessions and financial assistance.
Engagement with NCDC for Urban Self-Redevelopment: Discussions are underway with Union Home and Cooperation Minister Amit Shah to allow the National Cooperative Development Corporation (NCDC) to extend financial support to urban self-redevelopment initiatives. This move would enable cooperative housing societies to access concessional financing for their projects.
Recognition of Maharashtra’s PACS by the World Bank : Fadnavis shared that the World Bank has acknowledged the strong performance of the state's Primary Agricultural Credit Societies (PACS) in its recent review. This global recognition underscores the credibility of Maharashtra's cooperative model and provides momentum for further policy reforms.

Support from Union Minister Nitin Gadkari

Union Road Transport and Highways Minister Nitin Gadkari endorsed Fadnavis's vision, advocating for a unified legal framework that merges elements of the Company Act and the Cooperative Act. Gadkari emphasized the need for legal reforms to preserve the relevance of the cooperative movement in modern times, warning that without timely amendments, the movement risks becoming outdated.

He also called for rewarding diligent contributors to the cooperative sector and penalizing those who exploit its provisions. Gadkari highlighted the critical role cooperatives have played in supporting small-scale entrepreneurs, farmers, and marginalized communities.

Contributions from Other Leaders
Vidyadhar Anaskar, Chairman of the MSC Bank Administrative Board, highlighted the rich history of the cooperative movement and its crucial role in strengthening the Indian economy.
Deputy Chief Minister Ajit Pawar praised Anaskar's contributions to the cooperative sector, particularly in strengthening the State Cooperative Bank. He asserted that strict action must be taken against those involved in irregularities in cooperative institutions, regardless of their political affiliations.
Deputy Chief Minister Eknath Shinde commended the State Cooperative Bank for its commendable work, especially in providing financial assistance to farming activities. He urged the bank to further boost support for the agricultural sector by encouraging more farming initiatives and increasing financial outreach.

A Unified Vision for Cooperative Growth

The event marked a rare moment of unity among top leaders from various major political parties, all coming together to support the cooperative sector. Their collective vision aims to modernize and strengthen cooperative institutions, ensuring they remain relevant and effective in addressing the needs of the community.