Application of Chapter to Cooperative Land Development Bank

This Chapter shall apply to -- (a) co-operative land development banks advancing loans other than short term loans for the purposes of -- (i) land development and productive purposes ; (ii) the erection, re-building or repairing of houses for agricultural purposes , (iii) purchase of agricultural lands by the agriculturists in order to constitute a basic holding, (iv) redemption of old debts , and (v) any other purpose as may be prescribed by the Registrar with the approval of the State Government in this behalf ; (b) any other co-operative bank permitted by the Registrar under section 141 to function as co-operative land development bank. Explanation, 1. For the purpose of this section, “short term loan” means a loan for a duration of less than 18 months. Explanation, 2. Land improvement and productive purposes” mean any work, construction or activity which adds to the productivity of the land and, in particular, includes the following, that is to say— (a) construction and repair of wells (including tube wells) tanks and other works for the storage, supply or distribution of water for the purpose of agriculture, or for the use of men and cattle employed in agriculture ; (b) renewal or reconstruction of any of the foregoing works, or alterations therein, or additions thereto ; (c) preparation of land for irrigation; (d) drainage, reclamation from rivers or other waters, or protection from floods or from erosion or other damage by water, of land used for agricultural purposes or waste land which is cultivable; (e) bounding and similar improvements ; (f) reclamation, clearance and enclosure or permanent improvement of land for agricultural purposes ; (g) horticulture; (h) purchase of oil-engines, pumping sets and electrical motors for any of the purposes mentioned therein ; (i) purchase of tractors or other agricultural machinery ; (j) increase of the productive capacity of land by addition to it of special variety of soil; (k) construction of permanent farm-houses, cattle-sheds and sheds for processing of agricultural produce at any stage ; and (l) such other purposes the Government may, from time to time, by notification in the Official Gazette, declare to be improvement or productive purpose for the purpose of this Chapter.