UP to sign MoU with NABARD to bail out coop sector units

Lucknow, Nov 15 (UNI) To bail out the ailing cooperative sector financial institutions and cooperative societies in Uttar Pradesh, the state government today agreed to sign a draft Memorandum of Understanding (MOU) with the centre and National Bank for Agriculture and Rural Development (NABARD) for revival of the sector as recommended by the Vaidyanathan Committee.

The state cabinet meeting chaired by chief minister Mulayam Singh Yadav approved the proposal.

The MOU is proposed to be signed for availing the financial assistance from the Centre for the revival and rehabilitation of the defunct primary agriculture cooperative societies and rural financial institutions.

At present, the cooperative sector in UP has suffered a loss of Rs 2,392 crore till March 2004. Under the revival package Rs 482 crore would be given in the first phase.

In another decision for promoting the IT industry, the cabinet approved a proposal for the rebate of 25 per cent on the cost of land for the new IT units.

This rebate will be available to the IT units, if they purchase land at NOIDA, Greater NOIDA, plots developed by the UP State Industrial Development Corporation and the UP State Housing and Development Board.

The government also proposed to amend the UP Urban Planning and Development Act, 1973 by bringing a new bill in the legislature.

The Act will be amended for making the provision for the realisation of license fee and land use change fee from real estate developers.

As per the new housing and urban development policy announced by the UP, vast tracks of agriculture land are being acquired by the developers for hi-tech townships and integrated townships.

The developers have to seek land use change from agriculture to residential from the urban development authority. But there is no such provision in the law enacted in 1973. So the Act is proposed to be amended.

The proceeds from the license fee and land use change fee would go to 'Infrastructure Development Fund' of the urban development authority.

The state cabinet also approved the National Rural Health Mission Programme 2005-2012, which targets decreasing the infant mortality rate by 50 per cent.

The government also sanctioned 10,000 tonnes of wheat to be distributed at Ardh Kumbh Mela in Allahabad.

The foodgrain would be distributed to the consumer in form of 'atta' and on the price of Above Poverty Line (APL) price.

Sources said as the centre had refused to provide wheat on BPL price, hence the state government has sanctioned the quantity from its own resources.

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