The role of the cooperative banks is being regarded important in the context of the economic transformation of Bihar.

Answering a query in the state assembly, Bihar Deputy Chief Minister Shushil Modi said the govt would not begin banking operations but would take all possible measures to strengthen the cooperative banks in the state.

Modi added the cooperative banks met the financial requirements of the people at large and therefore the govt would make every effort to ensure their smooth functioning.

According to observers, the Nitish govt sets great store by the cooperative movement and the development of the cooperative network across the state is a priority in its scheme of things. It was Bihar only where Election Authority was set up to conduct elections of primary Agricultural cooperative societies across the state.

The experiment has been a huge success. Today the state boasts of a credible network of PACs spread across the remotest parts and through which various governmental schemes from paddy procurement to loan disburshment are being implemented. Nitish Kumar indeed deserves to be awarded Sahakar Ratna title.

Bihar’s Chief Minister Nitish Kumar who is credited with ushering in fair election in cooperatives deserves kudos from NCUI as he has met a long time demand of introducing cooperative movement into the school curriculum to raise awareness about it among the young students.

According to Nitish Kumar, the privileging of the cooperative sector would have a positive impact on the general economic development in the State. “The cooperative movement would be made a part of the school curriculum to raise awareness about it among the young students”, he added.

Taking part in a seminar devoted to the discussion of the rabi crop , chief minister Nitish Kumar  unveiled some bold plans to revolutionize development especially the cooperative sector in the state.

He indicated that the cooperative movement that had been in a shambles would be brought back on the rails again. The govt. would encourage the cooperative sector by providing it with loans and other facilities.

Meanwhile Sushil  Modi,Deputy Chief Minister has demanded pending amount from Centre. He demanded that the Centre must release the pending amount of Rs 330 crore of the special package for reforming the District Cooperative Banks and Primary Agricultural Credit Societies (PACS)in the state.

“The Centre has given a special package of Rs 595 crore to Bihar under the agreement for the reform of 22 District Cooperative Banks and 8,451 PACS, but the state has so far got only Rs 265 crore”, Modi said.

Round two of cooperative war raging in the state of Bihar goes to Government with Ramadhar Singh taking oath today as cooperative minister once again. Governor Devanand Konwar would administer oath to Singh at a simple function at Rajbhavan on Friday, Rajbhavan sources said.

Chief Minister Nitish Kumar had earlier during the day conveyed to the Governor his decision to re-induct Singh as a member of his cabinet.

Singh had resigned as Cooperative Minister a day after the RJD had petitioned Governor Devanand Konwar seeking his dismissal in the wake of the lower court’s order declaring him absconder.

Singh was declared an absconder by a court in May 1995 after he had repeatedly failed to appear before it in connection with the case registered by the police in 1992 for making communal and inflammatory speech in Aurangabad.

The cooperative war in Bihar has taken ugly turn with BJP and RJD pitted against each other. The deputy chief minister has publicly called Ramadhar Singh’s arrest and prosecution, a handy work of RJD. Mr Modi promised to reinstate the jailed minister after the charges are disproved against him.

Minister on his part said that he  is not a criminal as neither a case of dacoity nor murder has been registered against me.

Minister in his first stint was busy reducing  the influence of RJD which was practically controlling cooperatives in Bihar. Among other things,  he is locked in a fight to free BISOMAUN board of RJD’s influence.

Indiancooperative.com has reported earlier that Sunil Singh, the incumbent Chairman of Biscomaun has dared the Minister to spell Biscomaun properly. He promised to resign if the Minister does it correctly.

The Minister on his part had ensured that red bacon fitted in the car of Biscomaun Chairman is removed. Biscomaun Chairman Sunil Singh’s attempt to convert the organization into multi-state cooperative society also failed earlier.

The fight between the two political outfits to control cooperative levers of power in the state is sure to go personal in coming days. But round two goes to Ramadhar Singh.

Of the total of 22 cooperative banks in the state of Bihar only two are functioning. Taking note of the matter seriously Deputy CM Sushil Modi called a meeting of Chairman of defunct banks as well as RBI officials to thrash out a solution.

RBI has given license to conduct banking activities to just two of the 22 cooperative banks operating in the state and, therefore, the banking activities of the remaining 20 cooperative banks are nil.

Applications of 12 other cooperative banks seeking to do banking activities were under review at RBI. If the 12 cooperative banks fulfilled the criteria required, then they would be issued license.

Performance of seven of the 20 remaining cooperative banks was unsatisfactory and, therefore, they may not be issued license to conduct banking activities in the state. According to the RBI representative, the demand for license by the cooperative bank operating at Siwan was under process.  Modi also expressed unhappiness over the failure of the cooperative banks to provide enough number of Kisan Credit Cards (KCCs) to farmers.

Banks have provided KCCs to only 42,571 farmers during the 2010-11 financial year against a revised target of 1.60 lakh.

Modi, in the situation, told the chairmen of the 22 cooperative banks present at the review meeting to activate their respective cooperative banks to extend agriculture loan to farmers. He also told them to meet the target fixed regarding the issuance of KCCs to them in the current financial year for the benefit of farmers.

Modi told them to appoint chief executive officers to streamline the activities of the cooperative banks in tune with the recommendations of the Baidyanathan Commission.

In a sort of  victory for  Indiancooperative.com, Bihar government ordered vigilance probe into working of Biscomaun on Thursday. The probe committee will submit report within three months thus unveiling the truth behind the charges.

Readers may be aware that Indiancooperative.com has exposed the scam and called for CBI Inquiry in the matter about two months back. The case pertains to one Sidarth cooperative which received Rs one crore from Biscomaun to purchase grains for Food Corporation of India. FCI  had given Rs 3 crore to Biscomaun to procure grains.

Sidarth Cooperative is said to have bought grains from the open market in Rohtas, Camoor, Buxer and Bhojpur  and sent the same to FCI through Biscomaun.

The coal scam pertained to Biscomaun selling subsidized coal to non –existent agencies. Director of Industries wrote a letter to Central Coalfileld Limites on the matter of coal distribution to the tiny and small consumers  exposing the corrupt practices adopted by Biscomaun.  In this letter (Vide letter nos 1342), Director of Industries, Govt of Bihar has intimated to Central Coalfield Limited that during inspection made by them(Director Industries) ,it has been found that Biscomaun has allocated coal either to those industries which are not in existence or presently closed.

It is well known that Biscomaun is nominated by the State government as state agency for distribution of coal to small and tiny consumers. After receiving this intimation CCL asked Bihar Govt either to monitor coal-distribution or suspend  Biscomaun’s agency for the purpose.

On suspension Biscomaun approached High Court which gave verdict in its favour and restored its position as the sole agency of coal distribution in the state but simultaneously the court wanted the state government to investigate the matter.

In the Bihar assembly on Thursday the Cooperative Minister wanted to order probe by the MLA’s committee but deputy Chief Minister Sushil Modi intervened and said that state vigilance committee is competent enough to probe the matter.

Modi also took a dig at opposition which kept mostly silent on the issue. It is well known that Sunil Singh, the Chairman of Biscomaun is close to RJD of Lalu Prasad Yadav. Vinay Singh of BJP had raised the matter in the House.