MMCB to restart functioning from wednesday: vora

The minister of state for cooperation, Ramanlal Vora, announced in the state Legislative Assembly on Monday that Madhavpura Mercantile Cooperative Bank will start functioning normally from August 29.

The Central government’s agriculture and co-operation department will issue the notification on August 29. Mr. Vora was speaking during budget discussion on demands of cooperative department. As many as 3 lakh depositors are expected to get back their deposits. Around 35 urban co-operative banks that had deposited in the MMCB will benefit by the scheme.

According to the recommendations of the revival committee, the bank required Rs 1,264 crores to resume its operation and it would start profiting within a span of ten years. MMCB will receive Rs 464 crores from the Deposit Insurance and Guarantee Corporation and Rs 800 crores at a low rate of interest from the state co-operative banks against the credit guarantee from the Centre and state government.

The minister said that earlier ten cooperative banks have gone in for liquidation but no efforts were made by the state government to revive any of them. This is for the first time that the state government has made the effort to revive the bank.

The BJP members welcomed the announcement by thumping of desks. The Congress, which had earlier announced that it will oppose the notification, as it would breach the model code of conduct for by-elections also refrained from opposing it in the House.

Discussing the other cooperative movements in the state, Mr. Vora said a strong infrastructure of Agriculture Produce Market Committee has been designed so that the farmers get remunerative prices for their agriculture products. The government has also decided to change the rules for APMC, he added.

He further said the state is leading in the milk production and cooperative movements based on it. The state has 17 sugar cooperatives in the state, which are operative at present and six others will be started soon, he added.

Republished from The Asian Age