The Maharashtra government has taken significant steps to bolster the state's cooperative banking sector with a major financial package approved during Tuesday's Cabinet meeting. The decision comes amid political controversy over timing during election periods.
Major Financial Boost for Cooperative Banks
In a crucial move to strengthen rural credit institutions, the state cabinet chaired by Chief Minister Devendra Fadnavis approved a substantial share capital infusion of ₹827 crore for three district central cooperative banks. The allocation breakdown reveals ₹672 crore for Nashik District Central Cooperative Bank, ₹81 crore for Nagpur bank, and ₹74 crore for Dharashiv bank.
The capital support follows recommendations from the Reserve Bank of India regarding recapitalization and revival of these crucial financial institutions. Officials confirmed that the funds will be disbursed in phases, with Nashik Bank receiving ₹336 crore in the current financial year and the remaining ₹336 crore in the subsequent year.
Administrative Overhaul for Dharashiv Bank
In a significant administrative decision, the Cabinet authorized the dismissal of the existing board of the Dharashiv District Bank and the appointment of an administrator. This action was taken citing the bank's deteriorating financial condition. While Nashik and Nagpur banks are already under administrators, Dharashiv had been operating with an elected board until this decision.
The state government emphasized that these measures aim to strengthen cooperative credit institutions that play a vital role in providing crop loans to farmers across Maharashtra. The enhanced financial position is expected to ensure smooth rural credit flow, particularly supporting agricultural activities in the regions served by these banks.
Additional Security and Development Initiatives
Beyond the banking sector decisions, the Cabinet approved several other important measures. In a significant security enhancement, the government cleared the recruitment of 8,282 additional security guards under the Law and Judiciary Department. This includes 4,742 guards for court complexes and 3,540 for judges' residences, all to be deployed through the Maharashtra State Security Corporation (MSSC).
The security recruitment follows directives from the Aurangabad Bench of the Bombay High Court in a public interest litigation concerning judicial security. The Cabinet sanctioned ₹443.24 crore for the salaries of these newly recruited personnel.
The government also cleared two important irrigation projects in Hingoli district with a combined value of over ₹200 crore. The Digras Storage Tank Project in Hingoli taluka received sanction of ₹90.61 crore and will provide irrigation to 603 hectares along with drinking water to nearby villages. The Sukli Storage Tank Project in Sengao taluka got ₹124.36 crore approval and is expected to bring 677 hectares under irrigation.
Political Controversy Over Timing
The Cabinet meeting, held while the model code of conduct remains in force for upcoming local body elections, drew sharp criticism from opposition parties. Congress leader and spokesperson Sachin Sawant questioned the government's decision to announce these measures during the election period.
"While the code of conduct was in effect, the Mahayuti government held a Cabinet meeting and openly announced decisions that impact Maharashtra's rural areas," Sawant stated. He further emphasized that "farmers live here too" and questioned whether the State Election Commission would take note of these announcements.
The government's extension of the implementation period for the Fifth Maharashtra Finance Commission's recommendations until March 31, 2026, was another significant decision taken during the meeting. This extension was necessitated by administrative changes following the appointment of Dr. Nitin Kareer as chairperson of the Sixth Finance Commission after the demise of Mukesh Khullar.
