Chidambaram promises funds to TN following MoU with Centre

Chennai, Sep 9 (UNI) Union Finance Minister P Chidambaram today promised funds to Tamil Nadu for re-capitalisation of co-operative banks once the state government signed an MoU with the Centre as per the recommendations of the Vaidyanathan Committee.

Addressing a press conference after a state-level Bankers' Meeting at the Secretariat here, he said the state government had already formulated a scheme based on the recommendations of the Committee, which looked into the problems of the co-opertive sector.

As the state government had written off co-operative loans for its farmers, it had taken efforts to revamp the co-operative banks, he added.

Mr Chidambaram said farm loans to the tune of Rs 15,388 crore, would be disbursed in Tamil Nadu this year, which was more than double the figure extended during 2003-2004.

While nationalised and commercial banks would contribute a sum of Rs 11,180 crore, the regional rural banks would extend loans to the tune of Rs 786 crore.

The co-operative banks in Tamil Nadu had been set a target of contributing Rs 3,396 crore.

If the co-operative banks fall short of the targeted figure of Rs 3,396, the public sector banks would make good the difference, which was estimated to be around Rs 500 to Rs 750 crore.

Mr Chidambaram asserted that the target of extending farm loans of Rs 15,388 crore would be definitely achieved.

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