Union Cooperation Minister Amit Shah said on Saturday that the Centre will soon bring amendments to the Multi State Cooperative Society Act and a new policy for the cooperatives is on the anvil. He added that the question that cooperatives are a State subject could be responded to in legal terms but the newly created Ministry will work in tandem with the States and “there will be no friction”.

The formation of the Ministry of Cooperation was announced on July 5 and Home Minister Amit Shah was allocated the portfolio during the Cabinet expansion.

Mr. Shah said the Centre was also planning amendments to the laws that govern the Primary Agricultural Credit Society (PACS) following which the States will be sent an advisory and they will also have to amend the relevant laws.

Speaking at the first Sehkarita Sammelan or National Cooperative Conference where he addressed over 2,100 representatives of different cooperatives and nearly six crore online participants, Mr. Shah said some people wondered why the Centre created this new ministry as the cooperatives are a State subject.

On the proposed new cooperative policy, Mr. Shah said a policy was brought in 2002 by the then Prime Minister Atal Bihari Vajpayee, and now the Modi government will start working on a new policy.

Stressing that the cooperative movement was more relevant today than ever, Mr. Shah said cooperatives can contribute a lot in the development of the country. According to him, the cooperatives will play a crucial part in making India a $5 trillion economy.

Referring to the problems being faced by cooperatives on taxation front and other issues, Mr. Shah said he was aware of the concerns and assured that there would be no injustice towards them