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Will strengthen cooperative societies, promises Basavaraj Bommai

Dharwad: Lamenting the decline of the influence of cooperative societies in the financial sector, home minister Basavaraj Bommai , also the minister for cooperative societies, on Sunday affirmed his intent to strengthen the ailing system. Citing instances of cooperative societies lending to the government in the latter’s hour of need, Bommai said, “The situation has reversed today.

Cooperative societies are asking for a special package to bail them out.”

The present position of these societies, Bommai ascribed to amendments in policies, coupled with the changing mind-set of the shareholders. Bommai, who inaugurated the 66th Cooperation Week celebrations organised by KCC Bank at Kala Bhavan in Dharwad, said, “I have heard it mentioned that increased government interference is to blame for weakening these organisations. But the management of cooperative societies is to blame for this since the officials invited government interference following allegations of corruption and nepotism .”

Reiterating the BJP government’s commitment to provide autonomy to the functioning of cooperative societies, the minister said that the Cooperation Act would be amended to ensure they became profitable entities again. “If the need arises, we will pass ordinances,” he said.

However, Bommai’s assessment of cooperative societies was not bleak all together. “Cooperative banks are providing capital loans, cumulatively worth Rs 15,000 crore every year, to farmers and artisans. Let me point out that even nationalised banks offer capital loans only if the working loan has been disbursed. Hence it is vital that cooperative societies are strengthened to ensure financial empowerment of farmers and artisans,” he added.

Queried about the remit of the state government’s loan waiver scheme, Bommai said, “Initially, the waiver was to provide succour to 21 lakh farmers. However, we strengthened the rules, and the number of beneficiaries reduced to 14 lakh. Around 1.5 lakh farmers who sought waiver later were rejected owing to technical reasons or lack of adequate documents. But chief minister BS Yediyurappa has assured the agrarian community of easing the norms, and all the 21 lakh farmers eligible for the waiver will benefit.”

The minister said that a new KCC Bank, and a dairy would be set up in Haveri, which would, in turn give a fillip to the cooperative societies in the region.

Earlier, MLC Basavaraj Horatti had pointed out that the central government’s decision to impose 33% income tax and GST on cooperative societies had adversely impacted their finances. “Since cooperative societies are non-profit organisations, they must be exempted from taxes,” Horatti said.

MLAs CM Nimbannavar, Shankar Patil Munenkopp and KCC Bank president Bapugouda Patil were among those who participated in the inaugural ceremony.

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