Orissa govt sets up Task Force to revive OSCARD Bank

Bhubaneswar, Jul 14(UNI) Orissa government today constituted a Task Force to revive Orissa State Co-operative, Agriculture and Rural Credit Development (OSCARD) bank, lying almost defunct with liability to the tune of Rs 225 crores.

Orissa Finance Minister P C Ghadei, who held a high-level review meeting for the revival of the bank, later told mediapersons that the Task Force comprising representatives from NABARD, Finance Department, Cooperation department and OSCRAD representatives would submit its report to the government within two weeks.

The NABARD has stopped funding the bank on the pretext that the OSCARD Bank has to clear its outstanding dues to the tune of Rs 58 crores.

The bank has yet to realise the loan amount of nearly Rs 160 crores provided to 1,55,000 farmers in the state.

It's liability included the loan assistance of Rs 108 crores sanctioned by the state government and the outstanding loan of Rs 58.16 crores from the NABARD.

Official sources said the NABARD has suggested the state government to convert its loan amount to the bank as equity and retrench nearly 50 per cent of the employees with the introduction of the voluntary retirement scheme(VRS).

Mr Ghadei said the Task Force would go into the details of the management of the OSCARD Bank and suggest measures to the government to make the bank financially viable and resume refinancing.

The government sources said they would approach the DFID to provide Rs five crores to implement the VRS in the OSCARD as per the condition laid down by the NABARD for providing further loans to the bank.

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