Maha govt to be guarantor for Rs 1,500-cr loan of cotton body

The Maharashtra government onWednesday decided to stand guarantor for a Rs 1,500 crore bankloan taken by the State Co-operative Cotton Growers MarketingFederation to pay farmers for procuring their produce atminimum support price (MSP).

The decision was taken at the weekly cabinet meetingchaired by Chief Minister Uddhav Thackeray.

The federation has taken a loan of Rs 1,500 crore fromBank of Maharashtra at 6.35 per cent interest rate annually.

The state government has also waived the guarantee feeto be charged from the federation for the loan, a statementfrom the Chief Ministers Office (CMO) said.

The statement said the Central government hasannounced an MSP of Rs 5,825 per quintal for long staplecotton and Rs 5,515 for medium staple cotton for the 2020-21kharif season.

Due to satisfactory monsoon in 2020 and favourableweather conditions, production of 400 lakh quintal of cottonis expected in the state, it said.

The statement said cotton prices have come down ininternational market and also in the open market, and theCentre has increased the MSP.

Cotton procurementthis year in Maharashtra isexpected to be more than what it was the lastseason, itadded.

In another decision, the cabinet gave a green signalfor private banks to handle government banking transactions.

As of now, only PSU banks are allowed to handletransactions of government offices, public undertakings,boards and corporations as well as salaries and pension ofgovernment employees and retirees.

The cabinet approved participation of private banks inthese transactions in a limited way.

For salaries and allowances, accounts can be opened inprivate banks approved by the state government, the statementsaid.

Account holders can use banking technologyfor whichno additional charge will be levied, the statement said.

Government employees will be allowed to use accountsin private banks only for salaries and they cannot deposit anyother funds in them, it added.

Retired state employees can open pension account inany of the private bank approved by the government.

The statement said private banks will need to enterinto an MoU with the government for handling thesetransactions. For this, they will have to submit theirproposal to the finance department by February 28.

The cabinet also approved a proposal to implement thecentral government-sponsored project in the education sectorcalled STARS - 'strengthening teaching, learning and resultsfor states.

Apart from Maharashtra, Himachal Pradesh, Odisha,Rajasthan, Madhya Pradesh Kerala have been chosen for theproject based on a performance grading index.

The Centre will bear 60 per cent and the Maharashtragovernment 40 per cent of the total expenditure of Rs 976crore on the project in the next five years.

Strengthening education and learning systems,classroom instructions and bringing transparency ineducational system are among the goals of the project, thestatement said.