Question : COOPERATIVE SECTOR

(a) whether the Chief Ministers Conference on the Task Force report for the revival of the cooperative credit structure held recently;

(b) if so, the details of views and suggestions made by the participants;

(c) the response of the Government thereto;

(d) whether the draft statement of consensus on the proposed revitalization package for cooperative credit structure has been circulated to States for their comments;

(e) if so, the details of the proposed consensus;

(f) the response of the States thereon;

(g) whether the Government has finalized the data for implementation and revitalization package in the country;

(h) if so, the details thereof; and

(i) if not, the reasons for the same?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (DR. AKHILESH PRASAD SINGH)

(a): Yes, Sir.

(b) to (h): The report of the Task Force constituted by the Government of India under the Chairmanship of Prof. A. Vaidyanathan to suggest an implementable action plan for reviving the Cooperative Credit Structure (CCS) has been accepted in principle by the Government of India. The Task Force Report was discussed in National Development Council meeting in June, 2005 and by Prime Minister in an interactive session with State Governments and other stakeholders

on September 9, 2005. Based on further consultation with a few States, a revised package was drafted incorporating, among others, the consensus on issue like sharing of losses due to Public Distribution System, a lower recovery level for eligibility of PACS and reasonable cap on State Government`s share capital etc. The revised package was sent to all States/UTs for comments. Comments have been received from some States.

The package for revitalization of Cooperative Credit Structure envisages provision of financial assistance for wiping out accumulated losses, covering invoked but unpaid and uninvoked guarantees given by the State Government and other dues to the CCS from them, and increasing the capital to specified minimum level. Technical assistance will also be provided to upgrade institutional and human resources of the CSS.

(i): Does not arise.