The Hindu : Karnataka / Bangalore News : ‘Interest-free farm loans if funds spent on waiver is compensated’

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Wednesday, Nov 19, 2008
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Karnataka

Karnataka - Bangalore

‘Interest-free farm loans if funds spent on waiver is compensated’

Special Correspondent

Yeddyurappa has written to the Centre in this regard, says Savadi

— Photo: V. Sreenivasa Murthy

Full house: Participants at the inauguration of 55th All India Cooperative Week at the Town Hall in Bangalore on Tuesday.

Bangalore: Minister for Cooperation Lakshman S. Savadi said on Tuesday that the State Government could plan providing interest-free loans to farmers if the Centre conceded its demand for compensating Rs. 1,784 crore spent on waiving farm loans.

Speaking at the 55th celebration of All-India Cooperation Week here, he said that Chief Minister B.S. Yeddyurappa had written to the Centre in this regard.

New law

The next Cabinet session, Mr. Savadi said, would debate bringing a law to ensure non-interference of the Government in the affairs of cooperative societies.

He would hold a meeting with leaders in the cooperative sector in the first week of December to consider their demands, he added.

However, he hastened to add that Government’s insistence that the Karnataka Milk Federation (KMF), a cooperative, should not increase milk prices was “to protect the interests of the poor”.

He said that the Government had “requested KMF” to “work in consultation with the Government.” Mr. Savadi said that his Ministry would take steps to identify and punish those indulging in illegal money lending through cooperative societies.

G.T. Deve Gowda, president of the Federation of Karnataka Cooperative Societies, said that cooperative housing societies had a special role of providing affordable housing at a time when private developers were ruling the roost.

Leader of the Opposition in the legislative Assembly Mallikarjun Kharge emphasised the need to strengthen cooperative housing societies. There was a need to spread their reach to taluk and district centres as well, he added.

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