Ailing co-op credit institutions will be revived: FM

New Delhi, Oct 10: Expressing the government's resolve to revive the ailing co-operative credit institutions, Finance Minister P Chidambaram today said the Rs 4,850 crore package for revitalising the Short Term Co-operative Credit Structure(STCCS) was both sufficient and feasible for transforming them into dynamic organisations. "The Rs 4,850 crore package is doable", Mr Chidambaram told newspersons here after holding an interactive session with State governments on implementation of the Vaidyanathan Commitee report.

The Finance Minister said the package was feasible in view of the present state of the economy as also the fact that it was well within the capacity of the State governments.

The Finance Minister said except for eight or nine recommendations of the Committee there was agreement among the State Co-operative Ministers on all other recommendations. Mr Chidambaram said these differences would soon be ironed out and announced that a smaller sub-group of State Co-operative Ministers has been formed to look at ways of evolving at a consenus on STCCS and Long Term Co-operative Credit Structure(LTCCS).

The Vaidynatahan Committee Report relates to revival of LTCCS and has 16 main recommendations in this regard.

Mr Chidambaram said many State governments have passed Bills and Ordinances to restructure the co-operative institutions. He said those that have done so will be eleigible for funding on the lines recommended by the Committee which will involve cost sharing by the Centre, States and co-operative bodies.

The State governments were unanimous that while the LTCCS differs from STCCS in their outreach and limited range of products and services and the period of lending, it was thus incumbent that the revival package for both the structures should fundamentally have similar features.

Mr Chidambaram said the final revival package will be announced by the end of October after taking into account the views of various state governments. He said the final package for long term restructuring would be complete by November. The Finance Minister said the burden of implementing the second Vaidyanatahan Committee Report was much less than the first report.

The recommendations of the Task Force were first discussed in the 51st meeting of the National Development Council held in New Delhi in June 2005.

The initial package has been discussed by the Central government with the State governments on a number of occasions.

There was agreement among the States this morning relating to formation of State level and district level implementation committees, auditing and related matters.

UNI