| The government has set
up a Task Force, headed by noted agricultural economist
A Vaidyanathan, to revive ailing cooperatives and boost
farm credit. The Finance Ministry has also identified
90 model projects that could be funded by banks, as part
of the ambitious package to increase rural credit by 30
per cent to Rs 1045 bn in this fiscal.
The Centre has already sent letters to Chief Ministers
to implement the package announced by Finance Minister
P Chidambaram in June, which included cheaper credit
to farm sector, debt relief to distressed farmers, revival
of cooperatives and bank funding of rural projects.
"The Finance Ministry is serious about the health
of the cooperatives. A Task Force for cooperatives has
been set up under A Vaidyanathan of Madras Institute
of Development Studies," Secretary for Financial
Sector, N S Sisodia, said.
Of the total Rs 1045 bn farm credit targeted for this
fiscal, cooperatives are slated to provide Rs 390 bn
while commercial banks would lend Rs 570 bn and regional
rural banks (RRBs) would offer Rs 85 bn.
In many states, the chief ministers have held meetings
with banks and administrative officers to implement
the package, he said.
Bank chiefs have been directed to gear up their regional
rural banks for faster credit flow to farm sector, he
said.
Chidambaram himself has been making site visits to
various districts to ensure that farmers are offered
loans promptly and their debts are being recast.
Source: PTI,
August 9' 2004 |
