AP, Nabard in pact to revive co-op credit institutions
The Andhra Pradesh government has signed an MoU with Nabard for the implementation of a comprehensive relief package to revive co-operative credit institutions.
By TNN |
HYDERABAD: The Andhra Pradesh government has signed an MoU with Nabard for the implementation of a comprehensive relief package to revive co-operative credit institutions.
With the scheme, the co-operative credit structure in the state would be recapitalised to an extent of about Rs 2,200 crore of which the state government will contribute about Rs 500 crore. The move also grants greater autonomy for the institutions.
According to a government release on Tuesday, the revival package would be implemented by the end of this financial year. “The package will help cleanse the balance sheet of the entire co-operative credit sector in the state comprising 2,746 primary agriculture co-operative societies (PACS), 22 district co-operative central banks and the Andhra Pradesh Co-operative Bank (APCOB). With this, all the losses will be wiped out,” said the release.
The total package for the country prepared on the basis of the final report, submitted by the Vaidyanathan committee in ’05, is worth Rs 14,839 crore of which shares of the Centre, state government and the co-operative credit structure are likely to be at 53%, 31% and 16%, respectively.
As per the scheme, the co-operative credit institutions will get total freedom in their operations in both administrative and financial areas. They will be guided by the boards of management comprising professionals, besides the elected presidents, directors and specialist directors from Nabard.
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Andhra Pradesh has already restructured PACS in ’05 by bringing down their number from 4,610 to 2,746. It has also inducted an additional share capital of Rs 216.16 crore in ’04-05 to enable nine DCC banks to achieve positive net worth. As a result, co-operative credit sector disbursed loans worth Rs 3,343.37 crore in ’05-06 compared to Rs 2,512.77 crore in ’04-05.Download
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