The State government is mulling bringing in amendments to the Co-operatives Act and also passing Ordinances to strengthen cooperative organisations, Home Minister Basavaraj Bommai has said.
Inaugurating the 66th All India Co-operative Week programme here on Sunday, Mr. Bommai, who also holds the Co-operatives portfolio, said that there was an ardent need for the government to initiate steps to empower the cooperative bodies which are in a bad shape due to various reasons, including new policies and change of thought among shareholders. The cooperative sector plays a decisive role in the farming sector. The co-operative banks are disbursing capital loans, about ₹ 15,000 crore, every year among farmers, small artisans and dairy farmers. None of the nationalised banks offer capital loans to farmers, as only working capital is disbursed. Hence, for the welfare and financial empowerment of farmers, the co-operative societies should be strengthened, he said.
Moreover, there were earlier instances of cooperative societies lending loans to the government when needed. But today, the fate of several societies is such that they are seeking special package, he regretted.
Interference of the government in the co-operative sector is being seen as a major hurdle for their progress. However, the co-operative societies themselves are responsible for this. Corruption and nepotism in loan-lending were rampant in a few co-operative societies forcing the government to bring in regulations. The BJP government always believed that the co-operative societies should be allowed to function independently and there should no government interference. To strengthen the co-operative societies and bring them on the path of profit, the government would be bringing in amendments to the Co-operatives Act and if required, even Ordinances will be passed, he added.
On the loan waiver scheme, Mr. Bommai said that initially it was proposed that 21 lakh farmers were directly benefited from the previous government’s loan waiver scheme. But some alterations were made and stringent norms were fixed and the number of beneficiaries has now reduced to 14 lakh farmers. An additional 1.50 lakh farmers who had applied for loan waiver were dejected after their applications were rejected for technical reasons and want of documents. However, Chief Minister B.S. Yediyurappa has said that the norms fixed for loan waiver will be simplified and all the 21 lakh farmers eligible for loan waiver would be benefited from this scheme.
Mr. Bommai said that a new KCC Bank and a mega dairy would come up in Haveri giving a boost to co-operative societies.
Earlier, MLC Basavaraj Horatti said that the Union government has imposed 33 % income tax and GST on co-operative societies which is affecting them financially in paying dividends to shareholders. The co-operative societies work on the principle of no-profit and hence, the tax slab should be abolished.
MLAs C.M. Nimbannavar, Shankarpatil Munenkopp, KCC Bank president Bapugouda Patil were, among others, present.
