Centre Plans To Revise Co-Op Credit Package

NEW DELHI: The Centre will soon revise the Rs 4,850-crore package for long-term co-operative credit structure to address the concerns raised by the state governments, FM P Chidambaram said on Wednesday.

“After circulating the revised package to the state governments, we would sit with representatives from a few states to finalise it. The amount can go up. In fact, there is a broad consensus on the package by all and we will modulate the package after consultations,” he told reporters after meeting state finance and co-operative ministers here.

Some state governments had reservations about the conditions like amending state laws governing co-operative credit institutions, which were attached with the package. Mr Chidambaram did not comment on the concerns raised by the states, but said the government will prepare the revised package by early November.

One of their key concern is about conceding greater presence in local credit institutions to federal bodies like Nabard. This for them could mean fewer positions for local politicians, a state government representative told ET after the meeting.

West Bengal FM Asim Dasgupta said the relative share of the Centre, states and co-operatives in the package is worked out at 74:11:15 and it will be difficult for the co-operatives to bear the burden.