Lok Sabha Question No. 2335 (UNSTARRED), answered on 2018-01-02
Subject: Package for Revival of Credit Cooperative Structure
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: DEVUSINH JESINGBHAI CHAUHAN

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 2335

TO BE ANSWERED ON THE 2 ND  JANUARY, 2018

## PACKAGE FOR REVIVAL OF CREDIT COOPERATIVE STRUCTURE

## 2335.  SHRI DEVUSINH CHAUHAN:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether it is true that Rs. 828.69 crore was sanctioned to Gujarat as revival package of credit  cooperative  structure  under  Prof.  Vaidhyanathan  Committee  recommendations  and Central  Capitalisation  Assistance  of  Rs.  260.91  crore  is  yet  to  be  provided  to  11  District Central Co-operative Banks and Primary Agriculture Co-operative Societies in accordance with the Vaidhyanathan Revival Package by the Union Government, since all benchmark activities as per the MoU have been completed;
- (b) if so, whether it is a fact that Gujarat State Co-operative Bank Ltd. had filed SCA before High Court of Gujarat, wherein Union of India was respondent and High Court disposed off the petition  and  directed  Union  of  India  to  decide  the  representation  made  by  Gujarat  State Cooperative Bank Ltd. through NABARD within a period of 8 weeks from the date of receipt of order dated 06/05/2015; and
- (c) if so, the time by which this amount is likely to be released so that the State Government of  Gujarat  can  financially  strengthen  the  capital  base  of  its  Primary  Agriculture  Cooperative Societies (PACS) and District Central Cooperative Banks?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI PARSHOTTAM RUPALA)

- (a)  to  (c):    The  Revival  Package  for  Short  Term  Cooperative  Credit  Structure  (STCCS)  was announced in 2006, based on the report of the Vaidyanathan Committee. Under this Scheme, the share of Central Government in respect of the State of Gujarat, based on the special audit, was assessed at Rs.828.69 crore.

Release  of  funds  under  the  Revival  Package  was  contingent  upon  completion  of benchmark activities stipulated in then  Memorandum of Understanding (MoU). State Government of Gujarat signed the MoU on 21st December, 2006 with Government of India and National Agriculture Rural Development Bank Ltd. (NABARD) for implementation of the Revival Package in Gujarat.  As per the conditions of MoU, an amount of Rs.567.78 crore was released as  GoI's  share  to  State  of  Gujarat  under  the  package  out  of  total  assessed  GoI's  share  of Rs.828.69 crore.  The Scheme was closed on 30.06.2011.  Since the State of Gujarat could not complete  all  the  benchmark  activities  by  the  date  of  closure  of  the  Scheme,  i.e.  30th  June, 2011, it was not eligible for any further support under the Package.

Gujarat  State  Cooperative  Bank  Ltd.  had  filed  a  Special  Civil  Application  No.  8319  of 2015  on  6th  May,  2015  before  the  Hon'ble  High  Court    of  Gujarat,  praying  to  issue  an appropriate writ order or direction requiring the respondent authorities to disburse the remaining grant  payable  to  the  petitioner  under  the  Vaidyanathan  Revival  Package,.    Department  of Agriculture  &  Cooperation,  Ministry  of  Agriculture,  Government  of  Indian  and  Ministry  of Finance, Government of India were arrayed as respondent No. 1 and 2 respectively.  The High court  of  Gujarat  passed  an  order  dated  13th  May,  2015  directing  that  the  respondent  No.  1 and/or  respondent  No.  2  shall  decide  the  representation  made  by  the  petitioner  received through  NABARD  as  expeditiously  as  possible.    Accordingly,  the  Government  through  its speaking order, vide letter dated 25.08.2015,  conveyed, inter alia, to Gujarat State Cooperative Bank Ltd that there has to be a time frame for any Scheme, and schemes involving financial implications  cannot  be  kept  open  ended.    However,  the  demand  of  various  States,  including Gujarat,  for  extending  the  period  of  implementation  of  the  package  was  duly  considered  by Government of India, but it was not found to be feasible.  Though the Gujarat State Cooperative Bank  has  been  requesting,  through  NABARD,  for  release  of  the  remaining  central  share  of Rs.260.91 crore under the package on the ground that the benchmark activities have now been completed, the fact remains that these benchmark activities were not completed even by the extended time limit upto June 2011.  Hence, the amount of Rs.260.91 crore being demanded by the State cannot be considered by Government of India.

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