ThiruvananThapuram: The Kekerder Community of Uralungal Labor Contract (ULCC) that has grown rapidly several government projects, especially during the LDF government, has been permitted by the government to receive a permanent deposit from the public at a higher level than deposits in state finances and cooperative banks.
Interestingly, the cooperative community has been given permission to make the deposit scheme attract the public when the government has substantially reduced fixed deposit rates and futures deposits at the State Treasury Kerala.
The government has cut deposit rates remain in cooperative society by 0.5% throughout the board for various deposits, when compared to last year’s level.
According to the circle issued by the Cooperative Community Registrants on January 22, 2021, the current rate is 4.75% (down from 5.25%) for deposits between 15 and 45 days, 5.25% (from the previous year 5.75%) For deposits between 46 and 90 days, 5.75% (from 6.25%) for deposits between 91 and 180 days, 6.75% (from 7.25%) for deposits between 181 and 365 days, 6.75% (from 7.25%) for deposits between one to two years and 6.50% (from 7%) for two years and above.
Also, interest rates for treasury deposits are reduced from 1.10% to 2.10%.
According to the order issued by the Ministry of Finance on January 18 this year, the importance of short-term deposits in the Treasury has been reduced and set at 5.40% (from the previous year 6.50%) for deposits between 46 and 90 days, 5, 90% (from 7.25%) for deposits between 91 and 180 days, 5.90% (from 8%) for deposits between 181 and 365 days and 6.40% (from 8.50%) for deposits between one to two years.
However, in the latest order issued by the Ministry of Cooperatives on June 22, the government has given permission to ULCC to continue to receive a permanent deposit at a higher level until March 31, 2022, so as to collect working capital to complete various projects.
has taken.
In its application to the cooperative cooperative registrar, ULCC has asked to need to find more funds because it must complete various projects worth 4,100 crore.
It was conveyed that being a community of labor cooperatives, ULCC faced difficulties in raising funds, and were under this situation that cooperatives were seeking permission to receive funds with a higher interest rate.
The government has provided similar permits for ULCC to receive deposits at a higher level at 2020-21 as well, which has helped the body to collect an additional RS 342.28 Crore.
As on March 31 this year, ULCC has a fixed deposit of Rs 1,370.85 Crore, according to the order of the government.
Being “an accredited body for construction projects under the government”, ULCC has received a contract from several government projects without going through a competitive open tender process.