The Punjab government has taken a tough stand on the issue of allocation of funds to different states for the revitalization of short-term credit system as per the recommendations of the A Vaidyanathan-led Task Force on Cooperative Credit System which has pegged the rehabilitation package at Rs 10,000 crore.
Out of this Punjab has got a meager Rs 80 crore, while neighbouring Haryana got over Rs 600 crore and Maharashtra Rs 6,400 crore. The Vaidyanathan committee has recommended recapitalising the credit system minus state government’s intervention in the functioning of co-operative societies. Most states have accepted the recommendations. However, Punjab has refused to approve the committee’s report due to poor allocation of funds. How can the state government retire the share capital contributed to co-operative societies said Punjab cooperation minister Capt Kanwaljit Singh.
In an exclusive interview the minister told FE that “this was a clear case of discrimination against Punjab vis-?-vis other states”. “We had performed 80% of the task assigned by the Vaidyanathan Committee and we have been allocated a pittance, while other non-performing states have been given a major share which was discriminatory”, said the minister. “Our share should have been Rs 540 crore. Most parameters laid down by the task force have been implemented in Punjab.
He disclosed that the finance minister has called a meeting in Delhi on October 10 on the issue. He said the Prime Minister himself had announced that the government would ensure credit to farmers on easy terms to double agriculture productivity. Singh said the Vaidyanathan committee was set up by the Centre to decide about allocation of funds for short as well as long-term revitalization of the credit structure. For short credit structuring, the committee had sent its report for comments to the state government. However, disagreeing with the report, the state has refused to send its comments.
He said by allocating meager funds to Punjab, the Centre was again throwing farmers who were under a huge debt of over Rs 24,000 crores at the mercy of money-lenders. He said the task force itself has recognized that co-operatives may not be in a position to “fund” such returns of capital but when it comes to actual allocation, Punjab has been “discriminated”.
The disbursement of rural credit has gone down from 65% in 1990 to 35% or less said Kanwaljit Singh.
The minister disclosed that he had already met the chairman of NABARD and senior officials of RBI and explained to them about discrimination in allocation of funds.