Debt waiver schemes, in a long-term perspective, are not conducive for the cooperative sector, Chief Minister Oommen Chandy has said.
Inaugurating the centenary celebrations of the Kerala State Cooperative Bank here on Monday, Mr. Chandy said schemes offering loans at affordable rates and providing easy and timely repayment were needed. The government would find a solution to the scarcity of capital in the cooperative sector before March 31. The government had already discussed and taken a decision on the issue, but there was a delay in implementing it. The government was proud that it could bring about a lot of changes in the cooperative sector. Introduction of the risk fund, which provides a relief of Rs.1.5 lakh to the kin of employees on their death, medical assistance of Rs.75,000 are some of them, he said.
The bank should give due priority for welfare schemes of those active in the cooperative sector. Farmers and the common man rely on the sector as it offers loans at affordable rates without any major hurdles. Cooperative banks should try to retain this uniqueness. He stressed the need for providing loans at easy rates without delay to the target groups.
Mr. Chandy said certain provisions of the Income Tax Act were causing afflictions to the cooperative sector. The State government had apprised the UPA and the present NDA governments of the problems thrown up by the Act. The Centre had taken certain steps to address the issue. Cooperation Minister C.N. Balakrishnan presided. K. Muraleedharan, MLA; bank president Kurien Joy; managing director S. Ravindran; former presidents and director board members were also present.
