Balasore, August 9 (Odisha.in) The Orissa government has decided to amend various principles and laws of Co-operative as per the recommendations of Vaidyanathan Committee for the streamlining of Cooperative sectors in
The report, which already has been implemented by 13 States, had recommended membership and voting rights for investors, less Government interference in cooperative governing bodies and full freedom to the bodies.
Speaking to reporters, Minister for Co-operation Surama Padhi said, implementation of the Vaidyanathan Committee report was crucial for the revival of the co-operative sector.
The Minister was here on Wednesday to inaugurate the newly constructed conference hall of Balasore Bhadrak Central Co-operative Bank (BBCCB) and attend a workshop on SHG groups.
“As per the high-level committee report, the central government will bear 100 percent of the losses arising out of direct credit business of Primary Agricultural Credit Societies (PACS) and for this Orissa will get Rs 1047 crore. We hope we could implement the recommendations shortly,” told Padhi.
Giving stress on agricultural credit, the minister told that the government has decided to spend Rs 1800 crore towards ‘crop loan’ at the interest rate of seven percent during current ‘Kharif’ and ‘Rabi’ seasons and the share of BBCCB was Rs 290 crore.
“This apart, we have decided to extend our loan wings to the non-farming sectors, to cover up the loss incurred in advancing the loan to the farming sector. So, the state’s cooperative banks will provide education and housing loans too,” Padhi said besides adding that the bank has been providing loan to the agriculture sector at 7 per cent, though it offers 9 per cent interest on deposit.
As the Co-operative banks have been providing 70 percent farming loan, the ministry has urged different state government departments and PSUs to deposit at least 20 percent of their funds in the Co-op banks.
“Cooperative banks spend the highest share on farming loan, against 5.5 per cent government funds deposit. Though the commercial banks’ overall deposit is 95 per cent, they just allot 33 per cent loan for agriculture,” she said.
Taking serious note of the non-performing assets and deliberate defaulters the minister said that all cooperative society offices would hang up a list of top 20 defaulters and if needed other social pressures would also be exerted.
“The farmers those have been grossly affected in the recent floods would be compensated. We have decided to provide crop insurance of Rs 27 crore to the farmers. And the Kalinga Kisan Gold Card (KKGC) holders will be provided crop loan at 6.5 percent interest,” she informed adding that the State has 26 lakh KKGC holders and it will be increased to 35 lakhs within next two years.
Padhi however appreciated the officials of various Co-op banks for their outstanding performances over last three years. “These banks which were making losses four years bank, have now started making profits.”
She thanked the officials of BBCCB for being adjudged twice as the best performing bank in the State.