Date:23/12/2008 URL: http://www.thehindu.com/2008/12/23/stories/2008122352930300.htm

Tamil Nadu

State waives society’s dues and interest

Staff Reporter

KARUR: In response to the long-standing plea of the Pugalur River Pumping Irrigation Cooperative Society members, the State Government has waived their dues and interest payable to the tune of Rs.1.44 crore.

Under the society, five irrigation schemes on the bank of River Cauvery are drawing water from the main river and the Pugalur Canal irrigating about 2,131 acres. Over 2,500 families stand to benefit from the gesture of the State Government. The beneficiary families are spread over Nadayanur, Punjai Pugalur, Orathai, Thalavapalayam and Govindampalayam villages.

The society was registered on November 28, 1968 and started functioning from March 3, the next year. The aim of the society is to maximise the irrigated area with frugal water requirements. By pledging the lands of the beneficiary aycutdars, the society borrowed a sum of Rs.1.25 crore from the State Apex Land Development Cooperative Bank through the Karur District Land Development Bank for implementing the five projects.

Around 1976, the members found out that it was not profitable for them to irrigate lands through the sprinkler system and protested the method the society went into hibernation. The State Government formed a high level committee to look into the future of the society and that panel recommended dropping of the sprinkler system, transferring the equipment to the Agriculture Department and also opined that the State Government could own up and compensate the Rs.1.25 crore borrowed from the Apex Land Development Bank. By that it was also stated that the Rs.1.25 crore could be transferred to the loan account of the society. Of that the value of equipment transferred to the Agriculture Department, put at Rs.49.52 lakh, was deducted and the final balance Rs.75.63 lakh was accounted as loan of the society members. The loan amount of Rs.75.63 lakh was to be repaid to the State Government in 14 annual instalments with an interest of nine per cent per annum.

As on March 31, 2005 the principal outstanding was Rs.56.98 lakh and the interest thereon Rs.1.02 crore was to be paid. During 2002-03 and 2003-04 rains failed and as Special Officer, Kaur District Collector sought the State Government to waive off the interest part of Rs.1.02 crore due from the society.

The State Government waived off all the farm loans and interest due as on March 31, 2006. The guidelines issued thereafter included the lift irrigation schemes as also as beneficiaries under the waiver scheme.

As per the recommendations of the Registrar of Cooperative Societies, the principal and interest due from the members of the Society worth a total of Rs.1,44,23,880 has been waived and the Secretary, Cooperatives, Food and Consumer Protection Department, issued a G.O. No. 207 dated December 8 waiving all the amount due bringing cheers to the farmers.

Reacting to the development, former MLA and president of the Farmers Association Thottakurichi T.N. Sivasubramanian thanked the State Government, the Chief Minister M. Karunanidhi, Cooperatives Minister Ko. Si. Mani, Karur MP K.C. Palanisamy, and former MLA and DMK district secretary Vasuki Murugesan for bringing succour and relief to the over 2,500 families.