Rs 4,750 crore reserved for cooperative sector in Karnataka, Minister ST Somashekhar

Rs 4,750 crore reserved for cooperative sector in Karnataka, Minister ST Somashekhar

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Mangaluru, November 15, 2020: Minister for cooperation S T Somashekhar said Rs 4,750 crore has been reserved for the cooperative sector in the state under the Atmanirbhar Bharat package of the Central government.

“We have submitted a proposal to the central government for the release of Rs 600 crore under the package. Karnataka is the first state to submit a proposal under the Atmanirbhar Bharat package,” he said.

He was speaking at the state-level cooperative week programme held as part of the 67th All India Cooperative Week 2020 here on Sunday.

Agriculture loans to the tune of Rs 15,300 crore will be distributed to 24.5 lakh farmers in the state through District Central Cooperative and Apex banks. Cooperative banks have already distributed Rs 10,000 crore as agriculture loans to farmers for zero percent and 3% interest rates, he said adding that the government has been appointing nodal officers for each district of the state to monitor the loan distribution and utilization process.
 
Somashekar said the government will ensure that no injustice will be done to cooperative banks. However, he warned, “the government will not spare cooperative societies and banks if they are found cheating investors and depositors.”

Referring to the Sri Guru Raghavendra Cooperative Bank scam, where investors and depositors were cheated of crores of rupees, the minister said, “We cannot blame the whole cooperative sector just for the mistake of one bank. The government will ensure that those who are behind the scam will be punished,” The minister handed over letters giving permission to open generic medicine stores to five cooperative societies on the occasion.

M N Rajendra Kumar, chairman, South Canara District Central Cooperative (SCDCC) Bank said that a study chair for the cooperative sector will be set up at the Mangalore University. “We have already held discussions regarding the proposal with the vice-chancellor of the university. Very soon the Study Chair will be set up at the university. Our aim is to bring more farmers under the cooperative sector and thereby empower them economically. SCDCC Bank is proud to be the only bank in India to record 100% recovery in agriculture loans for the past 25 years,” Kumar said.

Courtesy: Times of India