In a major initiative to revitalize Maharashtra’s cooperative sector, Chief Minister Devendra Fadnavis announced on Monday that the state government would explore allowing high-performing cooperative banks to manage government accounts, a move expected to significantly expand the financial scope and credibility of the sector.
The announcement was made during a symposium hosted by the Maharashtra State Cooperative (MSC) Bank at the Yashwantrao Chavan Centre in Mumbai, as part of an event organized for the ongoing International Year of Cooperatives.
Fadnavis revealed that the government would set up two expert committees: one to propose amendments to the Cooperative Societies Act to align it with contemporary requirements, and the other to recommend strategies for strengthening cooperative institutions. Describing the move as a potential policy shift, the Chief Minister said this would empower cooperative banks that have demonstrated sound governance and operational efficiency.
He highlighted that almost half of Maharashtra’s cooperative societies are housing societies, and ongoing reforms are being introduced to streamline their functioning. The government has already implemented measures to support self-redevelopment projects by providing regulatory concessions and financial assistance.
Fadnavis noted that discussions are underway with Union Home and Cooperation Minister Amit Shah to allow the National Cooperative Development Corporation (NCDC), traditionally focused on rural development, to provide financial support for urban self-redevelopment initiatives. If approved, this would enable cooperative housing societies to access concessional financing for their projects.
Emphasizing Maharashtra’s leadership in cooperative innovation, Fadnavis shared that the World Bank had acknowledged the strong performance of the state’s Primary Agricultural Credit Societies (PACS) in its recent review. This global recognition, he said, underscores the credibility of Maharashtra’s cooperative model and provides momentum for further policy reforms.
Supporting Fadnavis’ vision, Union Road Transport and Highways Minister Nitin Gadkari called for the formulation of a comprehensive law that merges elements of the Company Act and the Cooperative Act.
Gadkari argued that legal reforms are essential to preserve the relevance of the cooperative movement in modern times. He warned that without timely amendments, the movement risks becoming outdated. He encouraged the Maharashtra government to enact legislation that retains the spirit of cooperation while incorporating modern governance principles.
He urged the state to reward diligent contributors to the cooperative sector and penalize those who exploit its
provisions. Gadkari noted that cooperatives have played a critical role in supporting small-scale entrepreneurs, farmers, and marginalized communities.
Citing his own experience, Gadkari said he was able to establish a cooperative sugar factory thanks to initial funding from cooperative banks when public sector banks were hesitant.
He suggested that MSC Bank conduct a socio-economic impact study of the cooperative movement in Maharashtra to guide future policies. Citing Shetkari Sanghatana founder Sharad Joshi, Gadkari emphasized that a cooperative’s success depends on strong and ethical leadership. With political and institutional support, Maharashtra is set to lead a new chapter in the cooperative sector.
In his welcome address, MSC Bank Administrative Board Chairman Vidyadhar Anaskar highlighted the rich history of the cooperative movement and emphasized its crucial role in strengthening the Indian economy. He noted that both the Central and State Governments are actively promoting and supporting the cooperative sector.
Maharashtra’s Deputy Chief Minister Ajit Pawar praised Anaskar for his significant 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.
He stressed the need for a proper evaluation of the cooperative movement’s achievements, ensuring that set targets are achieved and past mistakes are not repeated. He also called for effective mechanisms to prevent the recurrence of such lapses.
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.
The event was historic in many ways, sending a powerful message that the cooperative movement transcends party lines. It was a rare moment when top leaders from various major political parties came together on a single platform, united in their support for the cooperative sector.
