Tamil Nadu signs MoU with NABARD
The MoU with National Bank for Agriculture and Rural Development is for the revival of cooperative credit institutions.
By PTI |
CHENNAI: The Tamil Nadu Government on Thursday signed an MoU with National Bank for Agriculture and Rural Development to implement the recommendations of Prof A Vaidyanathan's committee for the revival of cooperative credit institutions.
Tamil Nadu Cooperation and Food Secretary K Shanmugam and NABARD Chairman Umesh Chandra Sarangi signed the MoU in the presence of Chief Minister M Karunanidhi, making Tamil Nadu the 14th state to enter into the agreement.
Under the MoU, the short-term cooperative credit structures would get a fund of Rs 1068 crore with the Centre's contribution of Rs 925 crore.
The State Government would contribute the remaining Rs 143 crore, an official press release said.
'The proposed package would cover accumulated losses, take the system to the Capital to Risk Weighed Asset Ratio (CRAR) of a minimum of seven per cent,provide for return of state government equity in credit cooperatives and back the overall initiative with technical and technological support,' the release said.
It also envisaged training and capacity building of staff and Board of Directors of Cooperatives, installation of software-based standard accounting and management information systems, it said.
The DMK Government, after assuming power in 2006, waived cooperative loans of farmers to the tune of Rs 7,000 crore in keeping with its poll promise.
Tamil Nadu Cooperation and Food Secretary K Shanmugam and NABARD Chairman Umesh Chandra Sarangi signed the MoU in the presence of Chief Minister M Karunanidhi, making Tamil Nadu the 14th state to enter into the agreement.
Under the MoU, the short-term cooperative credit structures would get a fund of Rs 1068 crore with the Centre's contribution of Rs 925 crore.
The State Government would contribute the remaining Rs 143 crore, an official press release said.
'The proposed package would cover accumulated losses, take the system to the Capital to Risk Weighed Asset Ratio (CRAR) of a minimum of seven per cent,provide for return of state government equity in credit cooperatives and back the overall initiative with technical and technological support,' the release said.
It also envisaged training and capacity building of staff and Board of Directors of Cooperatives, installation of software-based standard accounting and management information systems, it said.
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The DMK Government, after assuming power in 2006, waived cooperative loans of farmers to the tune of Rs 7,000 crore in keeping with its poll promise.
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