KOCHI: Ernakulam District Co-operative Bank has made it clear that it will be willing to lend money for building the Kochi Cancer Centre only if the State Government gave government guarantee and collateral security for the loan amount.
The DCB made its stand clear in the wake of the bad experience it has faced over the loan given for building the Ernakulam Government Medical College which was previously Cochin Co-operative Medical College.
“A sum of Rs 25 crore was given for building the co-operative medical college and now the principal and interest together come to around Rs 90 crore. Now the State Government Co-operative Department secretary is asking the DCB to waive the interest amount on the loan. This has landed us in a difficult situation. This money is the deposit of our investors and we have to give back interest to our investors. So the Government should not land us in such difficult situation when we lend out money for the cancer centre,” DCB president N P Paulose told DC.
Mr Paulose said that the bank is in a position to lend out Rs 450 crore to build the cancer centre. “But I will not go there and inform the Health Minister or Chief Minister that we are here to give you money. Then it becomes our liability. If they ask me, I will say yes provided they meet our conditions like government guarantee and collateral security. So far despite press reports regarding our willingness to loan the amount, neither the Health Minister nor the Chief Minister has spoken to me,” said Paulose.
Paulose was in the state capital on Tuesday to meet the Health Minister V S Sivakumar in relation to a few other issues but could not meet him due to the Minister’s preoccupation with party issues in the wake of the Aruvikkara victory and also Assembly proceedings.
The Minister had said in the Assembly in reply to a question by V S Sunil Kumar MLA on Monday that he will explore the possibility of taking loan for the cancer centre from the DCB. “I am still ready to talk to the health minister but he has to broach the issue first,” said Paulose
