Date:14/09/2005 URL: http://www.thehindubusinessline.com/2005/09/14/stories/2005091402121200.htm

Back Financial package for co-ops soon

Our Bureau

New Delhi , Sept. 13

THE Union Cabinet approval for the Rs 15,000-crore financial package for co-operative credit structure revamp is likely to be obtained latest by October 31, the Union Finance Minister, Mr P. Chidambaram, said on Tuesday.

While the Centre is likely to contribute about Rs 8,000 crore towards the financial package, the remaining amount would have to come from the States and co-operatives.

"The Centre would no doubt share its burden, but States and co-operatives will have to bear small burden", he said.

The Vaidyanathan Panel had suggested that the financial package must be shared in the proportion of 53: 31: 16 by the Centre, States and the co-operatives respectively.

"The 16 per cent share of co-operatives is a problem. Co-operatives have to foot a small portion of the Bill," Mr Chidambaram said.