UP govt signs MOU for revival of cooperative organisations

Lucknow, Dec 18 (UNI) The Uttar Pradesh government today signed a Memorandum of Understanding(MOU) with NABARD to revive the ailing cooperative sector in the state on the recommendations of the Vaidnathan committee.

In the presence of Chief Minister Mulayam Singh Yadav, state Agriclture Production Commissioner(APC) Anis Ansari and NABARD managing director K G Karmakar signed the MOU.

Speaking on the occasion, Mr Yadav said that the cooperative movement in the country could be success if government control over these institutions were removed.

''Development of the rural area is based on the cooperative movement which is the backbone to finance the agriculture sector'', he said.

Assuring that his government will provide all possible assistance to uplift the cooperative sector in the state, the CM said these cooperative societies had flourished when they were headed by the politicians, but went sick when government took control of them it.

He said after implementation of the MOU now, the farmers can get easy finance of their needs and this would help the ailing cooperative socities and banks.

Under the MOU, now the Centre will provide financial package to the cooperative societies and banks like being given to the Khetriya Gramin Banks and commercial banks, Mr Ansari said.

He said the state government had already sanctioned Rs 42 crore for the revival of district coperative banks in the state. The government had also given Rs eight crore to be used by 2000 cooperative societies as margin money of Rs 40,000 each while Rs 23.81 crore has been given to pay the pending salaries of the secretaries of the societies.

Mr Karmakar said that it was a historic day for the cooperative movement in UP as effort would be made to end the losses to the tune of Rs 2300 crore of the district cooperative banks and societies.

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