Rs.1,750-cr. package for primary agricultural cooperative societies

CHENNAI: A revival package of about Rs.1,750 crore has been worked out for around 4,110 primary agricultural cooperative societies (PACS) in the State.

While the Centre will bear 75 per cent of the total assistance amount, the State and the PACS will meet the rest. The package has been finalised as a sequel to the State’s decision to implement the recommendations of the Vaidyanathan Task Force.

The Centre’s share will be released through the National Bank for Agriculture and Rural Development (NABARD). In January last year, the State government and the NABARD signed a memorandum of understanding to implement the Task Force’s recommendations.

To get the share of the Union government, the State is required to contribute its part. On Wednesday, the State government sanctioned Rs.207.51 crore.

The total assistance amount of Rs.1,748.99 crore was finalised at a State-level Implementing and Monitoring Committee meeting last month. This would cover 4,111 PACS affiliated to 22 District Central Cooperative Banks (DCCBs).

[Formed by the Centre in August 2004, the Vaidyanathan Task Force submitted its report on the short-term rural credit cooperative structure in February 2005. It presented its report for the revival of the long-term credit cooperative structure in August 2006.]

The committee’s decision was based on the proposals of the district-level panels, which were framed subsequent to special audit of 4,337 PACS. However, only 4,111 societies were eligible for the assistance. Of the total amount, the share of the Centre would be Rs.1,344.53 crore; State government – Rs. 207.51 and PACS – Rs. 196.95 crore. In view of the stipulation that the Centre would release 25 per cent of its share only after the State government met all its commitments including holding the elections to cooperative bodies, the State-level committee, at its meeting, approved an amount of Rs.1,008.4 crore as the share of the Union government.As part of the implementation of the recommendations, the State government had also provided a legal framework, providing functional autonomy to societies.

In respect of the polls to cooperative bodies, there is a case pending before the Supreme Court. The government action will depend upon the court verdict.