Govt approves Rs 3,070-cr package for co-op credit structure | business | Hindustan Times
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Govt approves Rs 3,070-cr package for co-op credit structure

The government on Thursday approved a Rs 3,070-crore package to implement recommendations of the second Vaidyanathan Committee on the revival of long-term co-operative credit structure.

business Updated: Feb 26, 2009 16:36 IST

The government on Thursday approved a Rs 3,070-crore package to implement recommendations of the second Vaidyanathan Committee on the revival of long-term co-operative credit structure.

The initial package, recommended by the panel, had been recast by the government in view of the announcement of the debt waiver scheme in the Budget last year.

“While this (recommendation of the committee) was under examination, the agricultural debt waiver was announced. Factoring in the relief granted under the debt waiver and debt relief scheme, the package recommended by the Vaidyanathan Committee has been recast,” Home Minister P Chidambaram said in New Delhi, briefing media about decisions taken by the Cabinet.

“Before the debt waiver, the size of the package was Rs 4,574 crore. But after factoring in the benefit given under the debt waiver scheme, the size of the package is (brought down to) Rs 3,070 crore.”

The main reason for reduction in the package is that many of the overdues have been written off, he said.

The cut-off date for assessing accumulative losses of the long-term co-operative credit institutions is now fixed retrospectively at March 31, 2008, the minister added.

“The package will cover loans disbursed up to March 31, 1997, overdue as on March 31, 2008 and remaining unpaid till the date of notification of this package,” Chidambaram said.