In a bid to improve the financial status of cooperative institutions, the recommendations of the Vaidyanathan Committee Report on short term credit cooperative structure was accepted at the first Executive Committee meeting headed by Governor Rameshwar Thakur on Friday.
Briefing reporters in Bangalore after the meeting, Mr Thakur, along with his advisers S Krishnakumar and P P Prabhu, said the recommendations includes the improvement of the capital structure of cooperative societies, reduction of government nominees and providing greater freedom and autonomy.
NABARD had constituted the Vaidyanathan Committee to reorganise and increase viability of State credit cooperative institutions, which include central cooperative banks, primary land development banks, and primary agriculture cooperative societies.
Following an MoU between NABARD, the state government and the cooperative institution, a package will be announced. Under this package the losses generated due agricultural credit will be borne equally by the state and central governments. In another decision, the committee resolved to direct the administration to grant BPL (below poverty card) ration cards to genuine applicants.
KITVEN-II
The meeting also gave the go-ahead to State agencies to launch a Rs 25-crore KITVEN-II (Karnataka Information Technology Venture Capital Fund) with State contribution being Rs five crore. KITVEN-1, launched in 1999 is a Rs 15-crore, ten-year closed fund launched and is expected to yield Rs 34 crore in 2009. KITVEN-II will seek out entrepreneurs from tier-II cities for funding.
Mr Thakur said the State Election Commission would undertake revision of electoral rolls with January 1 2008 as the cut-off date, and complete the exercise by January end.
The Executive Committee also decided to extend the tenure of Third State Finance Commission up to June 30, 2008. Enhancement of support price for sugarcane will to be decided following the Cental cabinet decision on the issue, Mr Thakur said
Mr Thakur said that principal secretaries of all departments have been directed to submit progress reports and targets achieved till November this year.
A meeting of district-level officials will be convened in December, he said. Replying to a query, Mr Thakur said that State budget 2008-09 would be presented in parliament next year.
