The Hindu Business Line : Final package on long term co-op credit structure by mid-March

Coop conclave: The Finance Minister, Mr P. Chidambaram, flanked by the Minister of State for Finance, Mr P. K. Bansal, and the Minister for Agriculture, Mr Sharad Pawar, at a meeting in the Capital on Tuesday. —

Our Bureau

New Delhi, Jan. 29

The Finance Minister, Mr P. Chidambaram, said on Tuesday that the final package on the revival of long-term co-operative credit structure (LTCCS) would be sent to the States by March 15 for their acceptance.

“There is consensus on 95 per cent of the package. For the remaining 5 per cent, we will find points of convergence. I am confident that the final package that emerges on Vaidyanathan-II report will be accepted by the States,” Mr Chidambaram told reporters after an interactive meeting with State Finance Ministers on the Vaidyanathan II Committee report for revival of LTCCS.

Although the cost of the package had initially been pegged at Rs 4,850 crore, Mr Chidambaram said today that the cost may undergo some change to take care of the suggestions made by the States.

States are now demanding that the Centre take a larger share of the financial package. The taskforce had pegged the sharing pattern of the financial package at 74:11:15 between the Centre, States and the co-operatives.

Outlining some of the suggestions made by the States at the meeting today, Mr Chidambaram said that States want the Centre to take a larger share on the losses arising from non-agricultural loans.

“For non-agricultural loan losses, the package provides one-third will be borne by the Centre. Many States want 66 per cent to be borne by Centre and some say even 100 per cent should be borne by Centre. We will look at that…. I will consider their suggestions,” he said.

The Finance Minister also underscored the need to implement the package and ensure that discipline is maintained. “As I have said in the past, this is the last chance we have to revive the long term co-operative credit institutions. We cannot have situation where 10 years from today we are back to square one and all co-operative credit institutions are in bad shape. We cannot allow that situation,” he said.

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