Southern States - Kerala-Thiruvananthapuram   

Coop. banks to slash interest on farm loans

By Our Staff Reporter

THIRUVANANTHAPURAM FEB. 25. The cooperative banks in the State would slash interest rates on agricultural loans to 10.5 per cent, with effect from March 1, 2003.

The present rate of interest varied from 11.5 to 12.75 per cent, M. V. Raghavan, Minister for Cooperation, in the State Assembly said during the question hour today. It had been decided to levy interest on a flat rate, he added.

The financial institutions in the cooperative sector would provide agricultural gold loans for the benefit of the needy farmers. As an incentive for prompt repayment of loans, an interest waiver to the extent of one per cent would be introduced in the cooperative banks, the Minister said.

There was no restriction on the cooperative banks operating NRI accounts, if they obtained the necessary clearance from the Reserve Bank of India. The State Cooperative Bank and 16 urban banks were already in to it, he said.

The Central scheme for restructuring the cooperative sector in the State would be implemented in the State only after enacting certain legislations, Mr. Raghavan said.

The KSRTC proposed to introduce metro bus services on the national highway between Thiruvanananthapuram and Attingal, K. B. Ganesh Kumar, Minister for Transport, said.

"The Kochi metro project has not been abandoned even though the thrust will be on projects that do not require acquisition of land. In the event of private investors not evincing genuine interest in the project, the Government will float a company for the purpose. The Government will explore the possibility of introducing `sky bus' in Thiruvanananthapuram, with private participation," he added.

The Plantation Labour Committee was sorting out issues in the plantation sector, said Babu Divakaran, Minister for Labour, in reply to a question.

Introducing more professionalism in the management of such establishments was also under consideration. The excess employees in them would be offered voluntary retirement scheme, the House was told.

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