Southern States - Andhra Pradesh   

APCOB invites proposals from PACs

By Our Staff Reporter

HYDERABAD May 10. The A.P. State Cooperative Bank Limited (APCOB) has estimated an interest waiver of Rs. 150 crores on a crop loan of Rs. 1,500 crores in the State following the Central Government's decision to allow total waiver of interest on crop loans extended during kharif 2002 in 14 drought-affected States.

Primary Agricultural Cooperative Societies (PACS) in the State have been asked to submit proposals for the implementation of the scheme, the APCOB Chairman, T.D. Janardhan Rao, told newsmen here on Saturday.

He said the State Government meanwhile approached the NABARD for clarity on whether to include big farmers under the scheme and the Union Finance Minister, Jaswant Singh, for guidelines on the slew of measures proposed by the Centre to come to the rescue of farmers in drought-hit States.

Mr. Rao said the demand for recovery of loans from farmers in the State during kharif and rabi of 2002 was of the order of Rs. 2,630 crores, including a long-term loan of Rs. 600 crores. The crop loan in kharif alone was Rs. 1,500 crores which is now eligible for interest waiver.

The short and long-term loans recoverable in the State, including arrears of Rs. 1,225 crores, by June 30 was Rs. 3,855 crores. The arrears demand included crop loan of Rs. 700 crores and long-term loan of Rs. 525 crore pending for the last three to four years. There was no question of postponement or interest waiver on arrears of loans. Farmers with dues of over Rs. one lakh would have to clear them by June 30, Mr. Rao said.

The APCOB Chairman also said that a demand from the farmers for conversion of crop loan of Rs. 300 crores into medium-term loan and postponement of instalments of long-term loanees to an extent of Rs. 225 crores was tentatively assessed in the State. Farmers who reaped a harvest and long-term loanees like employees, income-taxpayers and tractor owners or farmers involved in poultry, sheep rearing and dairy were not eligible for the benefit.

The beneficiaries have to submit annawari certificates issued by district Collectors and water cess remission certificates as per NABARD guidelines. These certificates were not required for interest waiver.

Mr. Rao maintained that with this a relief of Rs. 968 crores would have been given to farmers in the State due to drought or other natural calamities in five out of last seven years. This year's drought was the worst ever.

He announced APCOB's extension activity in becoming the corporate agent of LIC for distribution of life insurance products and of United Insurance Company for distribution of general insurance products. The MoU were signed with the two companies to increase the non-interest income of the bank and to provide additional services to the customers.

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