Rs 2,500 cr for MP co-ops

Ailing co-operative bodies will get a fresh lease of life in Madhya Pradesh. The Centre will release Rs 2,500 crore for them, as recommended by a committee headed by A Vaidyanathan.

The MP government, the Centre and Nabard has signed a tripartite agreement on this today.

The state has 38 district cooperative banks and 4,500 credit agriculture credit cooperative societies.

"Ours is the second state to sign this agreement. The state government will provide more autonomy to the credit cooperatives while the central government will extend financial assistance of Rs 2,500 crore as revival package," said Pravesh Sharma, secretary, department of cooperatives.

The central government had constituted a committee to study the financial status of the DCBs and co-operative societies, their functioning.

The committee recommended revival and more autonomy to these bodies.

At present, 21 district cooperative banks are unable to comply with the provisions of Section 11(1) of Banking Regulation Act. The revival would make the cooperative bodies eligible for concessional refinance from Nabard.