Kathmandu: Minister for Urban Development Dilnath Giri stressed the need of promoting and developing the cooperatives for the economic development of the country.
Addressing the 18th annual general meeting of Shree Laligurans Multipurpose Co-operative Limited (SLMCL) Saturday, he said the investment would be mobilised through the cooperatives in the productive and mega projects as the cooperatives has been contributing for the financial and economic sector from rural to urban area.
He said that the government was committed to develop the sector as the country had accepted the cooperative as one of the economic pillar.
He appreciated the contribution of Laligurans Cooperative for the development of the cooperative sector.
Chairman of Board of Director of SLMCL Amar Das Shrestha said that the cooperative would move ahead to provide the effective services to its members and play a key role for making the cooperative movement a success.
Chief Executive Director of the SLMCL Surendra Bhandari said that cooperative would invest in the new and potential sector for the overall development of the cooperative sector in Nepal.
Stating that the cooperative is a backbone of national economy, he said that the government should explore the scope of cooperative that would uplift the livelihood of the people and support for national building.
He said that more than 200,000 people are getting jobs directly in the cooperative sector and more than 6,500,000 people involved in the cooperative sector, he said and adding that the cooperative friendly acts should be introduced for the development of the cooperative sector.
He, however, said that the Ministry of Cooperatives and Poverty Alleviation approved the cooperative act ignoring the recommendations of cooperative movement targeting to shrink scope of cooperative.
Highlighting the financial status of the SLMCL, he said that the cooperative has been focusing to invest in the various potential sector including health, agriculture, hydropower, education, dairy firms and other potential sectors.
He said that the SLMCL has paid revenue of Rs. 47.1 million to the government. The Cooperative has paid such revenue from the profit earned in the last fiscal year 2016/17. The company claimed that it may highest tax payers among the cooperative in the last fiscal year.
It has succeeded to earn around Rs. 97 million net profits in last fiscal year. Likewise, the transaction increased by 8.21 per cent to Rs. 5.23 billion in the last fiscal year compared to previous fiscal year.
Deposit collection grew by 6.67 per cent to Rs. 4.18 billion in the fiscal year 2016/17. The loan disbursement of the cooperative reached Rs. 3.40 billion in the last fiscal year from Rs. 3.04 billion of previous fiscal year.
Share capital also increased by 17.18 per cent to Rs. 375.5 million by the end of the last fiscal year.