Karnataka - Hubli-Dharwad   

Yediyurappa urged to settle KCC Bank special package

Staff Correspondent

`Release the remaining amount of the package'

HUBLI: MLC Basavaraj Bommai has urged the Deputy Chief Minister B.S. Yediyurappa to take steps to release the remaining amount of the special package announced for the revival of Karnataka Central Cooperative (KCC) Bank, Dharwad.

In a letter to Mr. Yediyurappa, Bommai has pointed out that according to the deal the State Government had to pay 50 per cent of the package amount. The Apex Bank and the KCC Bank had to pay 25 per cent each.

The State Government had released Rs. 6.25 crores of its share of Rs. 36.5 crores in 2005 and Rs. 14.06 crores recently. Therefore, the Government has to still release Rs. 15.69 crores, he said.

Similarly the Apex bank had released only Rs. 3 crores of its share of Rs. 18 crores. He had urged the Finance Minister to immediately arrange for the release of the funds from both the Government and the Apex Bank, he added.

Mr Bommai said that KCC Bank had to disburse loans to 1.6 lakhs farmers of Dharwad, Gadag and Haveri districts. So far it has made readjustments of loan for only 75,000 farmers while 95,000 farmers are waiting for the loan at four per cent interest.

He said that KCC Bank had now requested the Apex bank to fix a loan ceiling of Rs. 75 crores. However, if the government gave a guarantee, this amount could be taken directly from National Bank for Agriculture and Rural Development.

If appropriate action was taken, KCC bank would be able to get higher loan ceiling, which would help in the revival of the bank. The move would also benefit the urban banks and thousands of farmers, he added.

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