Mamata Banerjee, the Chief Minister of West Bengal seems to be bowing before the NABARD’s resistance to her proposed amendment in the state cooperative act, 2006. Her Cooperative Minster has rushed to add that the state would take Nabard into confidence before amending the act.
In her populist bid the Chief Minister had said that recovery would not be made from defaulting cooperative loanees thereby stifling the cooperative movement. An organization can last only when it is accountable and survives on its own with little help from the government.
In order to impress farmers without any real love she is pushing cooperatives on suicidal course, feel experts. They also refer to her stint as Union Railway Minister when she did not allow any hike in fare leading Railways to a very bad health. Taxes and discipline make an institution click, they argue.
In the present case Banerjee had said that co-operative banks would not be allowed to attach properties of farmers for loan recovery in cases of default.
NABARD has opposed Mamata saying that it is equal partner in loan-disbursement and any amendment which affects its recovery is violation of tri-partite MoU signed by the state, Nabard and the Centre.
NABARD’s loans provided to state government and financial institutions grew by 24.22 per cent in 2011-12 to Rs 2,784 crore.