State signs tripartite memorandum of understanding
The MoU facilitates flow of an estimated Rs. 1,040 crores to credit institutions Committed to modernising agricultlure, says Naveen
BHUBANESWAR: In its attempt to revamp the cooperative sector, the State Government on Thursday signed a tripartite memorandum of understanding (MoU) with the Central Government and the NABARD for financial restructuring and revival of the short-term cooperative credit institutions in the State.
The State Cooperative Bank, all the 17 District Central Cooperative Banks, and 2498 out of the existing 2714 Primary Agriculture Societies will be benefited by the revival package that would be implemented with the assistance of the Central Government.
The MoU will facilitate flow of an estimated Rs. 1,040 crores to the cooperative credit institutions disbursing crop credit. This will help in wiping out the accumulated losses of the cooperative institutions for their financial revival.
Of the total of Rs. 1,040 crores, the Central Government will provide Rs. 894 crores and the State Government will give Rs. 123 crores, the remaining Rs. 23 crores being the contribution of the beneficiary societies.
The State Government had earlier indicated its willingness for implementing the revival package along with a commitment to provide its share in the total expenditure.
The MoU was signed in the presence of Chief Minister Naveen Patnaik, NABARD Chairman YSP Thorat, and Director Banking division, Ministry of Finance Tarun Bajaj.
The Chief Minister expressed hope that the measure would help in reviving the cooperative societies.
The revival and strengthening of the short-term cooperative credit institutions was important for the farmers of the State as 70 per cent of the agricultural credit came from the cooperative sector, Mr. Patnaik said.
Stating that his Government was committed to developing and modernising the agriculture sector for raising the incomes of farmers, Mr. Patnaik said step were being taken to provide irrigation facilities to at least 35 per cent of the agricultural land in every block.
Out of 50 lakh families in the State, 45 lakh families were members of primary societies.
The State Government had amended the Agriculture Production Marketing Committee Act to introduce the much-needed reforms in agricultural marketing for facilitating establishment of supply chains of agricultural commodities and enabling farmers to establish better market linkages for their produce.