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The National Bank for Agriculture and Rural Development (Nabard) along with the AP State Co-operative Bank is taking steps to rejuvenate the primary agricultural co-operatives (PACs) by converting them into multi-service centres.
It is also providing the necessary financial support and other forms of support for the purpose, according to K.R Nair, Chief General Manager in-charge of AP.
He was here on Monday to participate in a one-day regional workshop organised by the co-operative department for the purpose.
Transformation in rural areas
He said in an interview that “there are more than a lakh PACs in the country and roughly 50-60 per cent of them are functioning well. However, the PACs are being used only for a single purpose — disbursement of crop loans. They can be used to provide agricultural inputs, implements and to provide warehousing and other facilities to the farmers. They can bring about transformation in the rural areas.’’
He said Nabard has decided to provide funds to PACs through the state co-operative banks for taking up such multi-purpose activities.
“We will lend to the state co-operative banks at 10 per cent and they will in turn lend to the PACs at 11 per cent or so and then the PACs can add the requisite margin and lend the money to their members,’’ he said.
He said that in Andhra Pradesh there were more than 2,700 PACs and “our target is to convert at least 25 PACs in each district into such model ones. There are 23 districts in the State and therefore our target is to cover at least 575 PACs in the first phase.’’
Nair said that so far Rs 116 crore has been sanctioned to the State for the purpose and Rs 20 crore disbursed to the PACs. It has been estimated that 626 PACs in the State would require Rs 362 crore for the purpose. However, he said, only PACs functioning in the proper manner would be given the assistance.
There would be no write-offs and the PACs should therefore take great care in choosing the right projects. Nabard would also provide them technical guidance.
M.S Rama Rao, Managing Director of APCOB, and senior officials from both Nabard and APCOB addressed the representatives of PACs from the three districts of Visakhapatnam, Vizianagaram and Srikakulam.
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