In a last-ditch effort a demoralized Nafed board decided on Monday meeting Congress top bosses pleading to be given last chance for the agri-cooperative revival. The Board members were unanimous on the issue and decided to form a delegation for this purpose.
Earlier, Indian Cooperative has reported about the death pangs besetting Nafed in the wake of Finance Ministry refusing to clear fund for its revival. The fate of more than 400 employees, among other things haunts us no end, said one of the Directors after the Board meeting.
Decisions aimed at impressing government such as cutting 10 percent expenses were also taken. The Directors also advocated cutting 25 percent of their sitting fees.
The Board also decided not to renew contractual assignments any more. There are more than 40 staffs associated with Nafed on terms of contract. Twenty-five of them are completing their term in a matter of 1-2 months, informed Nafed sources.
Board also decided to work on the VRS scheme for employees to lighten the financial burden on the agri-cooperative. But it failed to work out the fund required for such a scheme. The bankrupt cooperative organization has practically no money to implement this scheme.
The NAFED which lost more than Rs 4000 crore in the tie-up business during the late Ajit Singh’s Chairmanship has been struggling hard to recover eversince. The present Board led by Chairman Bijender Singh has met the Ministry officials umpteen times seeking fund to put the cooperative back on the rails.
The interest on the bank loan alone runs into crores every month. The cooperative has been trying to repay some of them with little success.