Lok Sabha Question No. 1704 (UNSTARRED), answered on 2017-03-10
Subject: Revival Package for STCCS
Ministry: FINANCE
Asked by: DEVUSINH JESINGBHAI CHAUHAN

## Government of India Ministry of Finance Lok   Sabha

Department of Financial Services Unstarred Question No. 1704

To be answered on 10 th  March, 2017/Phalguna 19, 1938 (Saka)

## Revival Package for STCCS

1704. SHRI DEVUSINH CHAUHAN:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government had sanctioned Rs. 828.69 crore to Gujarat Government as a revival Structure (STCCS) based on the report of Vaidhyanatahan Committee , if so, the details thereof;

(b) whether the Government has not released the remaining central share of Rs. 260.91 crore to 11 District Central Cooperative Banks (DCCBs) and primary Agriculture Cooperative Socities (PACS) despite completion of all benchmark as per the Memorandum of Understanding, if so, the details thereof;

(c) whether the Government has also received direction from the High Court to decide on the representation made by Gujarat State Cooperative Banks Limited through National Bank for Agriculture  and Rural Development (NABARD) in this regard; and

(d) if so, the details therefor; and

(e) the time by which the pending amount is likely to be released for financial strengthen of capital base of PACs and DCCBs?

## Answer

The Minister of State in the Ministry of Finance (Shri Santosh Kumar Gangwar)

(a) to (e):  Based on the report of the Vaidyanathan Committee, the Revival Package for Short Term Cooperative Credit Structure (STCCS) was announced in 2006. 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 the  Memorandum of Understanding (MoU). Based on the status of benchmark activities, the Central Government released Rs.567.78 crore to Gujarat under the Revival Package. The Scheme was closed on 30.6.2011. Since the State of Gujarat could not complete all the benchmark activities by the date of closure of the Scheme, i.e. 30 th  June, 2011, it was not eligible for any further support under the Package. Gujarat State Cooperative Bank Ltd had filed a Special Civil Application on 5 th  May, 2015 (No.8319 of 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  India  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 13 th  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 25.8.2015, 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 GoI, 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 demanded by the State could not  be released by GoI.