Rejuvenation package comes to the aid of PACCs in Thanjavur district
THANJAVUR: Primary Agricultural Cooperative Credit Societies (PACCS) in Thanjavur district, including the 20 which were served with liquidation notice, have been rejuvenated by special packages given by the government.
There are 242 PACCS in the district. When the Tamil Nadu government announced farm loan waiver in 2006, in Thanjavur district alone 96,937 farmers benefitted to the tune of Rs. 179.76 crore.
This drained the coffers of all the credit societies with no loan amount to be collected from farmers. To help the societies, Tamil Nadu Government came out with a plan to rejuvenate them. Accordingly it recouped the waived amount in five instalments. And PACCS started their business on a clean slate.
Under Short Term Co-operative Credit services revival package, as recommended by Professor Vaidhyanathan Committee, 202 PACCS in the district got Rs. 53.95 crore for rejuvenation.
According to K. Sivaji, Joint Registrar of Cooperatives, many unviable PACCS had been rejuvenated. Twenty, served with liquidation notice by the Government, were also revived. They are the PACCS at Sakkarasamandham, Manankorai, Nedar Guruvadi, Kalyanapuram two, Nemam, Avarampatti, Ambathumelnagar, Kambarnatham, Puliyakudi, Manalur, Thukkachi, Perapadi, Soolamangalam, Vilankulam, Thiruthevan, Thirumangalakottai (East), Thirumangalakottai (West), Venkaraikottaikadu, Nemmeli and Thalayayamangalam.
These societies have become viable and are lending loans to farmers. They have disbursed loans to the tune of Rs. 20.84 crore during 2009-10. Out of this total amount, crop loans were given to the tune of Rs. 3.63 crore, general jewel for Rs. 12.77 crore and the rest in other forms of loans. They have also done a business of Rs. 2.64 crore by selling both controlled and non-controlled commodities.
With respect to infrastructure, safe vaults with burglar alarms to ensure safe custody of jewels pledged have been installed at 21 PACCS at a cost of Rs. 25.22 lakh. Modern buildings have been constructed for many societies. Twenty eight PACCS have been identified for repair and renovation of godowns at a cost of Rs. 16.25 lakh. Agro clinics have been established at six PACCS at a cost of Rs. 6 lakh each. Common service centres are being established in 16 PACCS at a cost of Rs. 1.61 lakh each.
“As a result of the efforts by the State government, the outstanding loans of PACCS at the member level has increased from Rs. 167 crore in 2009 to Rs. 342.08 crores in 2010. As on March 31 this year, there are 122 PACCS which have more than Rs. one crore as such loans. A major thrust has been given to crop loans (Rs. 81.40 crore) and jewel loans (Rs. 196 crores),” Mr. Sivaji said.
The credit societies are now able to meet staff salaries and other overheads. One hundred and ninety nine PACCS have attained profitability.
All the PACCS have attained the eligibility to draw refinance facilities from central cooperative banks.
New business plan
A new business plan for PACCS in Thanjavur district envisages increasing members level outstanding loans to a minimum of Rs. one crore, promotion of Joint Liability Groups to help farmers and promoting self-help groups, diversification of business activities, reaching out to weaker sections such as women and differently-abled persons through various form of loans and making all PACCS to function as viable units and multiple task agencies to serve the rural people more effectively.