The state cabinet’s decision to do away with a section from the Maharashtra State Cooperative Society Act -1960, which has been deterring ministers from holding positions in cooperative societies, is likely to serve as a precursor for major positive development in the state economy.

Once section 73 A (6) is deleted from the Act, the pathway for big cooperative institutions, such as urban banks, credit societies and sugar factories, to be converted into private companies will be clear. The amendment comes into effect from February 15 along with the state government’s decision to allow ministers to hold positions in cooperative societies in the state.