Chhattisgarh adopts Vaidyanathan panel report on coops

Raipur, Jan 18 (UNI) In a major step towards revival of co-operative credit institutions, the Chhattisgarh government has decided to adopt the recommendations of the Vaidyanathan Task Force on rural cooperative credit structure.

Announcing the decision at the state credit seminar, Finance Secretary D S Mishra said Rs 50 crore has been earmarked for the purpose of ''revitalising and restructuring'' long-lending cooperative credit institutions.

Official sources said now the state government would sign a memorandum of understanding (MOU) with National Bank for Agriculture and Rural Development (NABARD) and the Centre for implementing the recommendation of the task force.

The task force was appointed under the chairmanship of Prof A Vaidyanathan on August 5, 2004 to suggest an ''implementable'' action plan for reviving the co-operative credit structure.

The task force has come out with detailed recommendations for recapitalising the credit system, subject to actions by the co-operative credit system and the Government itself formulating a new co-operative act.

The Vaidyanathan Task Force has laid particular emphasis on eliminating state interference in the functioning of the co-operative system. With this end in view, it goes to the extent of making arrangements for retiring the share capital contributed to co-operative societies by State Governments.

As part of the recapitalisation package, State Governments will be assisted to make a soft loan to the co-operatives in order to repay the share capital.

UNI