NECORD strengthens northeast rural banking system
[TamilNet, Tuesday, 20 April 2004, 02:24 GMT]
The Asian Development Bank (ADB) funded North East Community Restoration Development (NECORD) Project Director Mr.T.Lankaneson Monday signed agreements with the Presidents of nine district multi purpose co-operative
societies to strengthen the co-operative rural banking system in the NorthEast. NECORD officials hope to revive the rural economy of the war torn province, sources said.
|NECORD Project Director Mr.Lankaneson speaking ( L-R) Provincial Co-operative Commissioner Mr.Ilankovan, NEPC Chief Secretary Mr.Rangaraja are seated
The signing event took place at the auditorium of the Provincial Ministry
of Health in Trincomalee Monday with the Provincial Chief Secretary
Mr.S.Rangaraja as the guest of honour.
Presidents of Kayts MPCS in Jaffna
district, Karaichchi North MPCS in Killinochchi district, Karaithuraipattu
MPCS in Mullaitivu district, Vavuniya North MPCS in Vavuniya district,
Mannar MPCS in Mannar district, Trincomalee MPCS in Trincomalee district,
Eravur Northwest MPCS in Batticaloa district, Addalichchenai MPCS in
Kalmunai district and Amparai MPCS in Amparai district signed the agreement.
North East province is divided into nine Assistant Commissioner of
Co-operative Development (ACCD) divisions and all the nine ACCDs were
present at the Monday event.
Mr.Lankaneson said the NECORD has distributed more than 1700 million rupees
to the rehabilitation and resettlement projects in the northeast in the
past and he did not know how much money from this had gone through the
co-operative rural banks. His aim was to direct all funds for the
rehabilitation and reconstruction through the co-operative rural banking
system to revive the rural economy. Hence the project of strengthening the
co-operative rural banks in the province has been launched, Mr.Lankaneson said.
Mr.Lankaneson further said the NECORD is prepared to bear the expenses of
a training course for co-operative employees. Further assistance from
NECORD to the development of the co-operative sector in the northeast
solely depends on the success of the first phase of strengthening the
co-operative rural banking system, he said.
|One MPCS President signs the agreement while Mr.Lankaneson and Mr.Rangaraja look on . Standing behind is Mr. Ilankovan
Under this project about 10.4 million rupees would be distributed to 99
co-operative rural banks in the northeast province through the nine
co-operative societies. Counter
tables, iron safes, cabinets, chares, tables, racks and scales would be
supplied to these rural banks in the nine ACCD divisions.
The breakdown of the 99 rural banks follows district wise: - Jaffna-30,
Killinochchi-06, Mullaitivu-06, Vavuniya-01, Mannar-07, Batticaloa-16,
Kalmunai-12, Ampara-10, Trincomalee-11.
Provincial Commissioner of Co-operative Development Mr.E.Ilankovan said in
his welcome speech that it was a red letter day in the annals of the
co-operative movement in the province as the NECORD has come to the rescue
of the co-operative rural banking system as the co-operatives do not have
adequate fund to replaces the losses incurred due to the conflict.
Provincial Chief Secretary Mr.Rangaraja in his keynote address described
the local government administration and the co-operative sector as two
"If we make these two giants to work, the war torn province could witness a
speedy development in all spheres," said Mr.Rangarajah.
He added, "Our sole aim is to revive the rural economy through rural
banks. We would face serious set back if we failed to build up the rural
economy of the province."
The co-operative rural bank system (CRBB) was launched in 1961 in all the
MPCSs in all districts in the northeast province in order to mobilize rural
capital to help the community providing financial assistance for their
Presidents of nine co-operative societies in the nine ACCD divisions in the northeast are seen
It is estimated that 7.3 million worth of assets of the rural banks
of the co-operative societies were damaged and destroyed during the period
of conflict. Jaffna district rural banks suffered a loss of 1.8 million
rupees, Killinochchi 1.2 million rupees, Mullaitivu 1.1 million rupees,
Vavuniya 2million, Mannar 5 million, Batticaloa 8 million, Kalmunai 6
million, Ampara 7 million and Trincomalee 4 million. The MPCSs within which
the rural banks are attached are also not in a position to replace the
furniture and equipments as the MPCSs too have lost their valuable assets
in the two-decade-old war, co-operative sources said.