Current Events

Minister for Cooperatives and Agriculture, Abdul Aziz Zargar today said that implementation of Prof. Vaidaynathan Committee Report, already approved by the State Cabinet, will go a long way in recapitalization of cooperative credit institution besides revival of the cooperative societies of the State.

Briefing reporters at a press conference, the Minister apprised about the working and revival of Cooperative banks and other credit institutions in the State and the impact of the package provided by the Central Government for the purpose. Mr. Zargar said cooperative banks and Primary Agriculture Cooperative Societies (PACS) will get Rs. 248 crore for recapitalization under the package shortly . He said the PACS with recovery level of 50% or above as on 30th June 2004 will get full benefits of the package in one go, while as the PACS with a recovery level of 30% will qualify for getting the revival package and to receive financial assistance under this package. The PACS whose recovery level is below 30% and do not qualify for the benefit of the package would be taken up with the Union Ministry of Finance for relaxation of the eligibility criteria.

Mr. Zargar said that it is a historical decision and under this package all the cooperative banks shall be eligible for low cost refinance from NABARD for further loaning in the agriculture and allied sectors, adding that Government will shortly sign a MoU with NABARD in this regard. He said cooperative banks will become strong enough to compete with other public sector and commercial banks. The minister said Government is also preparing to implement a similar package for long term credit structure which will involve J&K SCARDB, which he said requires recapitalization of Rs. 43 crore.

Mr Zargar said that tendency of formation of Women Credit Cooperatives (WCC) is increasing rapidly, adding that two WCCs, one each at Srinagar and Jammu with a membership of over 1100, are working in the State.

Minister said that at present nine cooperative banks with 203 branches are working in the State providing short term and long term agriculture credits.

click here for this Press Coverage in Daily Excelsior