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Karnataka Govt to close down 2,200 loss making cooperatives

Posted on Nov 13, 09:49PM | UNI

The BJP government in Karnataka has decided to rejuvenate 8,255 loss making cooperative banks and societies, but has decided to shut down 2,212 chronically ill societies, Cooperation Minister B J Puttaswamy said today.

Speaking to reporters here to announce the celebration of International Cooperative week which will be celebrated from November 14 to 20 in the state, he said various reasons had led to closure of this high number of societies which were in no way could be revived.

"We are committed to strengthen the cooperative movement and will extend all help possible to rejuvenate loss making cooperatives. But some are in hopeless condition and they will be closed," the minister said.

Mr Puttaswamy, who is an ardent follower of rebel leader B S Yeddyurappa who has already announced quitting BJP and form Karnataka Janata Paksha, said the cooperative banks had disbursed during the last five months Rs 3,505 crore farm loans to mostly poor and marginal farmers. Out of this Rs 2,346 crore was extended as 'zero' per cent loans to the farmers.

"Out of the total 8.37 lakh farmers benefited by cooperative loans, 90 per cent of them are small and marginal. We have also witnessed a spurt in new members with 40.29 lakh new members being enrolled in various cooperative units during the last six months," he said.