The Hindu : Andhra Pradesh News : `Rehabilitation plan being drawn for cooperative banks'

Online edition of India's National Newspaper
Friday, Sep 17, 2004

Andhra Pradesh

Andhra Pradesh

`Rehabilitation plan being drawn for cooperative banks'

By Our Correspondent

ADILABAD, SEPT. 16. The Chief General Manager, NABARD, AP, J.R. Sarangal, on Thursday expressed confidence that cooperative banks would regain their prominence in rural development. He said the Vaidyanathan Task Force was looking into problems besotting cooperative banks all over the country to draw a rehabilitation plan for these banks.

Talking to reporters here on the sidelines of his visit to the district to inaugurate the local NABARD District Development Manager's office, Mr. Sarangal said "All's not lost yet. There still are strong hopes of revival of cooperatives in the country and in the State." The main problem of cooperative banks, as pointed out by the CGM, was a dismal rate of recovery.

Crop loans

In an effort to revive extending crop loans through cooperative banks, the NABARD has sanctioned an additional loan of Rs. 500 crores to the APCOB, he said.

Quoting figures, the CGM said 14,000 project proposals were approved by the NABARD for the State during the current year estimated to cost about Rs. 4,500 crores. A majority of these were minor irrigation projects, he said.

For Adilabad, 964 projects estimated at Rs. 410 crores were sanctioned of which Rs.300 crores had already been released.

Calling for more proposals for rural roads in the district, Mr. Sarangal said already Rs. 42 crores had been sanctioned of which Rs. 30 crores had been released for laying roads in the district.

Bank linkage to SHGs

Regarding self-help groups, the CGM said two lakh groups would be linked with bank credits this year.

The NABARD also had a target to open 510 farmers' clubs, he added.

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