4,000 co-ops defunct in Karnataka

As many as 4,000 co-operative societies out of about 30,000 co-operative societies are defunct and the rest are functioning well. Of the 26,000 societies, about 18,000 are declaring dividend also, according to A Ramaswamy, principal secretary, co-operation department.

Under the present circumstance, public sector alone cannot manage everything. Private sector will focus on social service only after the industries establish well and make profits. Besides, it is necessary for the government to invest funds on creation of infrastructure facilities for attracting private sector, he said.

Hence, what is left is co-operative sector which starts serving its members the moment it is established, Ramaswamy observed.

"When only a small fraction of the co-operative bodies are defunct, it is wrong to dub the entire sector or all the co-operatives as money-swindling societies. Co-operatives are playing a major role in the country's economy, contributing 40 per cent credit to the agricultural sector. Hence, they need to be properly assessed and encouraged," he said while delivering the 10th anniversary valedictory address at the Agasthya Credit Co-operative Society, here recently.

The Yashaswini insurance scheme, which is becoming popular in the State, is proposed to be extended to urban co-operative banks and urban credit co-operative societies, Ramaswamy added.