Date:30/09/2005 URL: http://www.thehindubusinessline.com/2005/09/30/stories/2005093002120600.htm

Back Near consensus on co-op credit package

Our Bureau

New Delhi , Sept. 29

A DRAFT statement of consensus on the proposed revitalisation package for co-operative credit structure would soon be forwarded to all States and Union Territories for their comments.

All the States and Union Territories would be required to submit their views on the draft statement by October 15.

This was decided at a meeting between the Union Finance Minister, Mr P. Chidambaram, and the Finance Ministers/Ministers of co-operatives of select States (Maharashtra, Karnataka, Himachal Pradesh, Rajasthan, Madhya Pradesh, Uttar Pradesh, Tamil Nadu, West Bengal, Andhra Pradesh and Arunachal Pradesh).

There was consensus on the issues of regulation, legal and institutional reforms, conditionalities for assistance, technical assistance, deposit guarantee, accounting parameters, implementing mechanism and special audit.

An official release said that there was a near consensus on the other issues related to sharing pattern, eligibility, capital adequacy, return of share capital to State governments and special status to certain States/areas.

The Centre plans to finalise the revitalisation package for the co-operative credit structure by October 31. An interactive session with State governments on the Vaidyanathan Committee report for revival of co-operative credit structure was held on September 9, 2005.

The draft statement of near consensus arrived at the September 9 meeting was sent to select States (Maharashtra, Karnataka, Himachal Pradesh, Rajasthan, Madhya Pradesh, Uttar Pradesh, Tamil Nadu, West Bengal, Andhra Pradesh and Arunachal Pradesh).