Orissa signs MoU for restructuring Cooperative credit institutions

Bhubaneswar, Nov 16 (UNI) In a bid to revive the short-term cooperative credit institutions and introduce financial restructuring, the Orissa government today executed a tripartite MoU with the Central Government and the NABARD.

The MoU, official sources said, would facilitate flow of an estimated Rs 1040 crore to the Cooperative Credit Institutions for disbursing crop credit at the three tiers-State Cooperative Bank, District Cooperative Credit Society and Primary Agriculture Cooperative Society.

Such a flow of fund was essentially required for wiping out the accumulated losses incurred by the Cooperative credit institutions for restructuring and financial revival.

Revamping of the Cooperative sector was extremely important for Orissa as almost 70 per cent of crop credit availed by farmers in the State was provided by the Cooperatives.

With the revamping of the cooperative credit structure, nearly 45 lakh farm families served by these institutions would now have an easy and assured access to crop credit.

The MoU would benefit the State Co-operative Bank, all the 17 District Central Cooperative Banks and 2498 out of the existing 2714 Primary Agriculture Cooperative Societies.

The revival package for Orissa would involve an outlay of an estimated Rs 1040 crore of which the centre would fund Rs 894 crore while the State Government's share would be Rs 123 crore and the balance Rs 23 crore would be contributed by the beneficiary societies.

The programme would be monitored by the NABARD.

The State government had earlier indicated its willingness for implementing the Revival Package along with a commitment for providing its share in the total expenditure.

Along with the financial restructuring, the Task Force led by Prof Vaidyanathan had also suggested some essential structural and administrative reforms in the Cooperative sector with a view to strengthening the credit institutions and ensuring their healthy functioning in the long run.

With the signing of the MoU today, the deck had been cleared for implementation of the revival package for the cooperative credit institutions in the state.

UNI DP SJC DB1923