|
The Finance Minister Shri P. Chidambaram has said that the Government is committed to doubling agricultural credit in three years to Rs.1,60,000 crore. He said last year alone the farm credit rose from Rs. 80,000 crore to Rs. 1,15,000 crore, about Rs.10,000 crore more than the target. The Finance Minister was addressing the interactive session with State Governments on Revival of Cooperative Credit Structure here today. The day-long conference was inaugurated by the Prime Minister Dr. Manmohan Singh. The Agriculture Minister Shri Sharad Pawar and State Governors, several Chief Ministers and Lt. Governors of Union Territories took part in deliberations. Shri Chidambaram said while we are on road to achieve the target of Rural Credit Disbursement, the weak link has been the cooperative credit system. Calling upon the States to seize the opportunity to revamp cooperatives, the Finance Minister said, the 12th Finance Commission was generous to States for free flow of funds and time has now come that the State Governments must play their part to achieve the consensus on the implementation of the recommendations of the task force on Revival of Rural Cooperative Credit Institutions (Vaidyanathan Committee).
The Finance Minister said that Vaidyanathan Panel had made eight major recommendations, of which there was already consensus among the States on three issues i.e. minimum capital requirement, technical assistance and implementation mechanism. He said there is a need for sharing the Rs. 15,000 crore burden to revamp the cooperative banks. Consensus on this issue can be achieved as “we will play our part, please play your part. Finding these resources are not a problem”, Shri Chidambaram added.
Shri Chidambaram assured the State Governments that the Centre will make the necessary amendments to banking regulation act after proper consultations with the State Governments for the revival of rural credit structure. However, he made it clear that the State Governments have to make necessary amendments in their respective Cooperative Societies Act to improve the situation. He urged the State Governments to enter into MoUs with the Centre so that the revival package is implemented within the time specified by the task force.
BSC/AD/CK-332/05
|
