The Hindu Business Line : `Good response to co-op credit package'

The revival package for short-term co-operative credit structure announced by the Central Government has received good response from State Governments, according to Nabard.

This scheme has been designed for the revival of the co-operative sector, including credit societies.

According to a release from Nabard, which is one of the agencies helping in implementing the scheme, 11 State Governments have executed MoUs with the Central Government and with Nabard for implementing the package.

The package is based on the recommendations of a task force set up under the Vaidyanathan Committee.

The 11 States account for 60.7 per cent of total primary agricultural credit societies and 70 per cent of total district central co-operative banks, said the release.

The revival package suggests providing financial assistance to co-operative societies to wipe out accumulated losses; amendment of the State Co-operative Societies Acts to make the co-operatives fully autonomous; and providing technical assistance, proper human resource development and application of IT at all levels.

The financial assistance under the package is estimated at Rs 13,596 crore.

This will be shared by the Centre, State Governments and co-operative credit entities.

As prescribed in the package, the cleansing of the balance sheets of the co-operative credit units will be based on a special audit of the accounts as on March 31, 2004 to arrive at the quantum of accumulated losses and erosion in assets.

The National Implementing Monitoring Committee, headed by the Governor of the Reserve Bank of India, will monitor the implementation of the scheme.

Nabard is also actively following up with the remaining States for acceptance of the package and execution of MoUs, the release added.

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`Good response to co-op credit package'