news details |
|
|
| Govt gearing up to bring SFC back on rails | | |
EARLY TIMES REPORT
Jammu, Mar 30: As the 20-year long militancy had not spared any sector in Jammu and Kashmir, including tourism, industries, agriculture, horticulture, handicrafts and handlooms and education but the State Finance Corporation (SFC) had felt a much bigger loss as a result of prolonged disturbed security scenario. The Finance Minister, A.R.Rather decided to bring the SFC out of the red. Reports said that on the recommendations of the Finance Minister the state Government agreed to contribute Rs.35 crores towards the Corpopration as its added share capital. It has decided to release the initial provision of Rs.5 crores during 2010-11. But experts say that by earmarking R s.35 crores as the Government's contribution the SFC was bound to back os feet but the release of Rs.5 crores in the initial stage was too meagre a sum to help the corporation to be out of the red. According to these experts, the Government should intiate some measures so that loan defaulters were persuaded or helped in one form or the other to repay the loan given by the SFC.One suggestion is that in case sorial units have gone sick even after having taken loand from the SFC those immovable assets be auctioned and the amount secured needed to be returned to the SFC
It is pertinent to mention here that while performing its role in providing financial assistance to the industrial units, the SFC exhausted all its resources.The reason being that all those industrial units that had received loans from the SFC had failed to repay the principal amount and the interest. Official sources said that a stage had come for the SFC that it had no resources for financing the units and the industrialists were not in a position to repy the loan because of continued losses.
Sources said that nearly 80 per cent of the units that had received loans from the SFC had not been able to produce goods because of varied reasons especially owing to the disturbed law and order situation. Official sources stated that the financial health of the SFC witnessed further deterioration because the Small Industries Development Bank of India(SIDBI),which its coowner,,stopped further funding and refinancing of the corporation. The state Government took up the case with the SIDBI last year but so far there has been no improvement in the situation because SIDBI is yet to release funds.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
 |
|
|
