The Hindu Business Line : Kerala gets Rs 1,252 cr in co-op recoveries

THE one-time settlement scheme implemented from October 2001 in the co-operative sector ended on March 31 this year, yielding Rs 1,251.86 crore in recoveries and a net of Rs 143.09 crore in concessions granted to borrowers.

Briefing newsmen here on the achievements during the last years in office, the Minister for Co-operation, Mr M. V. Raghavan, said that more than 5.14 lakh people from 3,224 co-operative societies have benefited from the scheme.

These societies were authorised to recover outstanding dues, while borrowers allowed the breather to pay up arrears in 10 instalments.

The one-time settlement scheme implemented by commercial banks was replicated in co-operative banks at the apex and district levels. As per this, banks were authorised to settle non-performing accounts standing as on March 31, 2000, on payment of 12-per cent interest in a special recovery drive. Accounts outstanding after this cut-off date could be settled without penal interest.

The two-year-old special drive for finishing off audit arrears in the co-operative sector has also come to a conclusion, with most of the primary agricultural cooperative societies managing to update their accounts.

Interest rates have been cut back by 4 per cent in as many years, the Minister said. The rates were allowed to `float' in the case of those long-term borrowers with a reasonably good track record. Senior citizens were given an additional 0.50 per cent in applicable interest rate for deposits retained in the cooperative sector.

`Green cards' were issued for borrowers from co-operative societies who have kept a good record of themselves in repayments. Steps have been initiated to set up self-financing co-operative societies, which are free of Government ownership and control, and are answerable to nobody but themselves for the way business is conducted.

The co-operative sector Pariyaram Medical College has been accorded full recognition by the Indian Medical Council. A number of medical and paramedical schools have since gone on stream as adjuncts to the college. As for the Medical College in Kochi, which is run by the Co-operative Academy, steps have been initiated to get full recognition.

The Kerala State Co-operative for Information Technology and Electronic Communication was set up with the registered office in Thiruvananthapuram for making most of the opportunities in the IT sector. The co-operative sector has become a leading purveyor of rainwater harvesting technology and has devised various financing schemes for the same.

A self-financing pension scheme has been implemented for employees in the co-operative sector. Housing loan limits for employees in the societies have been raised.

The recruitment process has been fine-tuned. Primary housing societies and women's co-operative societies with a minimum working capital of Rs 25 lakh have been authorised to grant gold loans.

The Office of the Registrar, Co-operatives, and district offices thereof, have been computerised. Deposit mobilisa- tion has reached a new peak with collections in 2004-05 topping that of the previous year (Rs 1,304 crore) by a margin of Rs 1,150 crore.

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