Date:22/09/2007 URL: http://www.thehindu.com/2007/09/22/stories/2007092260790500.htm

Andhra Pradesh

‘Good days ahead of cooperative societies’

Staff Reporter

Co-op bank chief lauds YSR for inking pact

PACS will be encouraged to mobilise resources
Schemes for white card holders to be introduced soon

TENALI (GUNTUR): The ailing cooperative societies will be revived in a phased manner heralding the ‘golden age of cooperative movement’ Andhra Pradesh Cooperative Bank Chairman Vasantha Nageswara Rao said on Friday.

Speaking to reporters at the end of the training sessions held for members of governing bodies of various societies and staff of the cooperative banks held here, he said that in tune with the recommendations of Vaidyanathan’s committee National Bank for Agriculture and Rural Development (Nabard) has announced a financial package of Rs.3,000 crore to bail out sick cooperative societies across the State.

Of that, Rs.173 crore has been allotted to revive 95 societies in Guntur district alone. The district has already been granted Rs.23 crore, which has been credited to various societies.

Subsidy

Lauding the effort of Chief Minister Y.S. Rajasekhara Reddy in inking an agreement with Nabard to bail out the sick cooperative societies, he said that the State Government has already announced a subsidy of 5 per cent on the interest rate on crop loan, paving the way for disbursement of crop loan to farmers at a minimal interest rate of 6 per cent.

The fact that cooperative societies gave away 35 per cent of crop loans in 2006-2007 speaks volumes about the revival of cooperative movement in the State.

The Government has also decided to disburse Rs.18 lakh crop loan in this season, he said.

Mobilising resources

Primary Agricultural Cooperative Societies (PACS) would be encouraged to mobilise resources, chalk out a Business Profit Recovery Table, increase membership and collect deposits.

In a move aimed at making societies self-reliant, societies have been given the freedom to deposit at any commercial bank, he said.

Members and associate members would be provided voting right in the socities and the societies could take up any profit-driven activity.

Strengthening societies

“We want to strengthen the societies and prepare them to fight competition,” he said.

Citing the success of Krishna and Guntur District Cooperative Banks, which registered profits of Rs.8 crore and Rs. 5 crores respectively, he said several schemes intended to benefit white card holders in the region would be introduced shortly.