WB govt to pay Rs 35 cr dues

Kolkata: The West Bengal government has agreed to repay Rs 35 crore dues to West Bengal StateCooperative Bank (WBSCB) on account of a loan taken by ailing Tantuja, the state level organisation of handloom weaver's cooperatives. The government will pay the sum in 14 equal tranches over the next seven years.

Recently, the state government repaid loans of Rs 6.80 crore to the bank on account of Tantusree and West Bengal Cooperative Spining Mills (WBCSM). All three entities were making losses and were in no position to service their loans. While efforts are on to revive Tantuja, the government has closed down Tantusree last year. The government, being the guarantor to these entities, is now shouldering the repayment burden.

We have recently signed agreements with the government towards this end. The government has already paid the dues concerning Tantusree and WBCSM. Papers relating to Tantuja are being finalised now, WBSCB chairman Samir Ghosh said.

A senior official at Tantuja also confirmed the development. Tantuja is saddled with an accumulated loss of Rs 76 crore.
According to the agreement between the government and WBSCB, the loan will be repaid over the next seven years. The government will pay an annual interest of 6% on the principal amount of Rs 35 crore.
Tantuja had taken the loan for its working capital needs and was scheduled to clear it back in

2004-05, Ghosh said. WBSCB, however, did not treat the loan as non performing asset (NPA) as the government kept servicing the interest.

Tantuja was registered in 1954 with a view to extend marketing support to its affiliated primary weaver's societies under the direct control of ministry of cottage and small scale industry. It has also an extensive export market in countries like Australia, Denmark, Italy,

Japan, Korea, France, South Africa, Thailand and the USA.Asked whether WBSCB will provide working capital loan to Tantuja again, if at all the entity shows signs of revival, Ghosh said: If the bank gives loan, it will be purely on commercial basis.