PANAJI
Pledging mission mode functioning of his Co-operation Department spearheaded by the Registrar of Co-operative Societies, WRD and Co-operation Minister Subhash Shirodkar on Wednesday outlined an ambitious, multi-prong blueprint aimed at bringing down to near zero non-performing assets (NPAs) of the banks and quasi-banks (Credit Societies) in the State’s co-operative sector.
Capping the lending rates of the Co-operative banks and credit societies at 13% by legislation, cent per cent computerisation of all the cooperative entities, strict vigil by the RCS’ officials on audit processes of each and every entity and the department shouldering or subsidising their auditing costs are some of the key measures that Shirodkar spelt out as part of the plan.
The Minister who was speaking in the Goa Legislative Assembly in response to the discussion on the demands for grants pertaining to the Co-operation Department which he oversees, said the aggregate turnover of the entire co-operative sector in Goa is in the region of Rs 12,000 crore and it independently employs over 5,000 people.
“Over 12,000 families engaged in economic activity related to traditional livelihoods like dairying, agro-farming, cashew (horticulture), fisheries among others are supported by the cooperative movement. They independently run their activity and earn their livelihood without coming to us (government) with the demand of jobs,” Shirodkar said, underscoring the contribution of the Co-operative sector to the State’s economy and gross domestic product.
Admitting that there are a handful of societies that have gone rogue, Shirodkar called out the generalised debate that these entities are a failure and argued that there were several co-operative bodies which were functioning very efficiently and doing a good job.
He especially mentioned the Goa Bagayatdar Sahakari Kharedi Vikri Saunstha Maryadit, Bardez Bazaar, Quepem Credit Society and the Shetkari Saunstha of Pernem among those co-operative entities that are beacons of the State’s co-operative movement.
“I have set myself a goal to bring down to near zero the NPAs of all credit co-operative societies within the next one-and-a-half year or so. It is achievable,” Shirodkar said, adding that total digitisation of their functioning and strict vigilance of their auditing processes are pre-requisites.
The minister said, the bill seeking to cap the lending interest rates at 13% is already introduced and before the House while highlighting the fact that these co-operative societies were the lifeline of small entrepreneurs and livelihood owners who are normally spurned and ignored by nationalised banks and the formal banking system.
The idea of taking on the ‘NPA’ bull by its horn struck him after observing the fiscal prudence and timely auditing discipline of the TJS Bank, Shirodkar said, adding that although this entity has a ‘multi-State’ status its healthy practices are worth emulating.
It has virtually zero NPAs. It ensures that its audit is done and completed by the ninth of April every year. All its administrative operations are 100 per cent computerised making supervision of loan and interest dues repayments easy,” Shirodkar said, adding that he intends to enforce such functioning on every co-operative body in Goa.
Responding to questions raised by legislators during the discussion on the demand for grants pertaining to some of the rogue cooperative societies, notably the Salcete-based Visionaries Co-operative Credit Society, Shirodkar said, the RCS has initiated penal action against at least six such defaulting entities.
Shirodkar also said that 40-plus individuals involved in hanky-panky have been blacklisted and disqualified from participating in elections and holding positions on the BoD’s of any co-operative society in Goa.
“I am hopeful and confident that with these measures the NPAs in Goa’s co-operative banks and credit societies can be wiped out in the next one-and-half-year,” Shirodkar added.
