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The Government is also mulling over the possibility of changing the pattern of conducting elections for such co-operative bodies.

HYDERABAD, May 2

CONSEQUENT to a State Cabinet Sub-Committee study and its recommendation for restructure of the co-operative sector, the Andhra Pradesh Government is likely to go in for revamp encompassing major downsizing of unviable co-operative institutions, including scores of bank branches.

The State Minister for Cooperation, Mr C. Ramachandra Rao, has said that a four-member Cabinet Sub-Committee has recommended scrapping of about 1,200 primary agricultural co-operatives (PACs) and about 150-200 bank branches of district co-operative central banks.

The committee also suggested revamp of the Andhra Pradesh Co-operative Bank (APCOB) so that it aligns with various financial institutions and works in tandem with Nabard.

In yet another important recommendation, the panel suggested scrapping up of five zonal offices of APCOB. As a part of this exercise, the staff of these banks will either be retired — this could be voluntary or compulsory — Mr Ramachandra Rao, who is part of the Cabinet Committee, told presspersons.

The Andhra Pradesh Chief Minister, Mr N. Chandrababu Naidu, had constituted the Cabinet Sub-Committee three months ago to assess the co-operative sector and its institutional framework and come up with an appropriate perspective plan to address these institutions which are now under a transition.

The Government is also mulling over the possibility of changing the pattern of conducting elections for such co-operative bodies.

However, the committee had been mandated to study this aspect further and come up with appropriate suggestions.

In spite of a massive Rs 835-crore revival package, which included an Rs 334-crore fresh fund infusion from the State Government, the co-operative sector and banks functioning under its ambit were far from functioning in a healthy manner, Mr Rao said.

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