MEMBER CORPORATIONS—THEIR ACTIVITIES
DFC to set up Rs.20 crore IT Venture Fund

The Delhi Financial Corporation has decided to float a company by the name of Delhi IT Venture Fund with a capital of Rs.20 crore for financing the IT projects in the capital and its neighbouring areas. The IDBI has already approved DFC's proposal to go ahead with the Venture Fund which will have contributions from the DFC, Delhi Government (Rs.4 crore) and PSUs. 

The fund seeks to boost IT on a sustainable basis by offering concessional finance to projects involving IT intensive research and community development programmes. Any entrepreneur, a housewife, a student or a businessman can avail of this concession provided he or she can invest 30 to 70 per cent in the equity component of project investment. 

According to DFC, CMD, Dr. D.C. Misra, after the IT Venture Fund is established, they expect an investment of Rs.100 crore to materialise by June this year and going upto Rs.1000 crore by April 2001. During this period the corpus amount of Rs.20 crore of the fund is expected to be increased by Rs.150 crore. 

PICUP offers special package to IT entrerpeneurs

Pradeshiya Industrial and Investment Corporation of UP Ltd (PICUP) has evolved the following financing package for the IT industry in order to give a boost to this industry in the state : 

l Promoter's contribution of 25% of cost of project and debt equity ratio upto 3:1 for SSI sector and promoters contribution of 33% of cost of project and debt equity ratio upto 2:1 for medium / large sector would be decided on case to case basis. 

l The total repayment period of term loan would not be more than 5 years including gestation period. 

l IT projects would also include IT enabled services. 

l Wherever repayments are forthcoming from the company in an accelerated manner, no premium would be charged for such premature payments. 

l The financing would be done under the structure obligatory route whereby the borrower shall open an "Escrow Account" which would be deposited in a bank. PICUP would be paid a mutually agreed amount out of this "Escrow Account" towards repayment of term loan. 

l A separate Advisory Committee comprising of professionals drawn from the IT industry and academic institution(s) has been constituted to examine and evaluate the IT proposals and the promoters. 

l A detailed analysis of promoter's professional skill, experience and the worth of their intellectual property would be carried out. 

l In case of projects below Rs.150 lakhs, working capital requriement of the first year would be included in the cost of project for financing purposes, if not already tied up. The portion of such loans would be repayable on release of funds by Banks over a period of time. However, bought out items required by IT projects to service its clients would not be considered for financing. 

l Cost of land and building shall also be included in the cost of project for financing apart from software and hardware items, for projects above Rs.150 lakhs. 

MD, PICUP holds business interactive meet at New Delhi

Shri V.N. Garg, MD of PICUP and his team of senior officers organised a Business Interactive Meet in New Delhi at PHD House. 

The purpose of the meet was to have a closer open-house interaction with the promoters, to iron out the problem faced by them and to educate prospective entrepreneurs about the multi-faceted services/schemes offered by PICUP, with an over all view to promote industrialisation in the State. 

The Managing Director assured the entrepreneurs of full institutional support from PICUP byway of a range of financial and technical services, speedy disbursement of funds, consultancy and guidance as well. 

PICUP organised awareness programme on food standards

An awareness programme of Codex & WTO was organised by Pradeshiya Industrial Investment Corporation of UP Ltd. (PICUP) in association with the Confederation of Indian Food Trade and Industry (CIFTI) on July 23, 1999 at PICUP auditorium, Lucknow which was inaugurated by Shri Yogendra Narain, Chief Secretary, Govt. of Uttar Pradesh and Chairman, PICUP. 

The workshop aimed at creating an awareness of the impact of emerging food standards and business norms under the international treatises on the Indian Food Processing Industry. Shri Vidhya Nand Garg, Managing Director of PICUP elaborated the role played by PICUP in promotion of agro based food processing industry in the State. 

SICOM's performance during 1998-99

SICOM's 33rd Annual General Meeting was held on 25th June, 1999 in Kamalnayan Bajaj Hall, Nariman Point, Mumbai at which its Chairman, Shri Subhash Dandekar addressed the shareholders and expressed that the year 1998-99 was marked by economic upheaval and turmoil and this had its impact on SICOM too. 

He said that SICOM during 1998-99 had earned a net profit of Rs.16.73 crore. Its operating profit stood at Rs.88.31 crore during 1998-99, as compared to Rs.88.34 crore in the previous year. The total income during 1998-99 increased by 7% to Rs.232.34 crore from Rs.216.74 crore during 1997-98. 

The Gross Asset base of SICOM stood at Rs.2,014 crore as on March 31, 1999. The sanctions and disbursements, for the year 1998-99 were Rs.666 crore and Rs.600 crore respectively. The total recoveries of principal and interest for all the loan products increased from Rs.391 crore to Rs.398 crore. 

During the year SICOM started participating in the call money market through a primary dealer. Further, during the year SICOM has participated in the repo transactions as a part of treasury management. 

SICOM is now starting a venture Capital Fund with software as its initial focus. It has plans to advance loans to software entrepreneurs. 

For the last few years, SICOM has stepped up its efforts to assist infrastructure development. The Udaipur Bypass and Dhule Bypass road projects, for which SICOM had given term loan assistance last year, were implemented before schedule. During 1998-99 SICOM sanctioned Rs.9.5 crore for Nashirabad rail overbridge and Karmala Bypass which are being implemented by private parties through BOT route. SICOM is also promoting a joint venture with ENRON for distributing natural gas in industrial areas in Maharashtra. 

SICOM has successfully maintained the Credit Rating by CRISIL for the Commercial Papers Programme of Rs.50 crore as P1+ representing the highest safety regarding timely payment of interest and principal. During the year 1998-99 the credit rating of the Fixed Deposit Programme of SICOM continued to be FAA-. 

SICOM arm picks 19% in Neilsoft

SICOM CAPITAL Management, the venture fund arm of SICOM, has picked a 19 per cent equity stake in the city-based Neilsoft Ltd. at Rs.60 per share (including a premium of Rs.50) amounting to a total consideration of Rs.2.25 crore. 

Besides, SICOM has issued an in-principle approval for an additional Rs.2.23 crore in the form of term loans. 

"Our investment decision was based on what we saw in Neilsoft during the evaluation of the compay - the vision it has for emerging opportunities in its chosen space, the team-building philosophy at work and a competent and professional team at the execution level," Shri Umesh Kudalkar, CEO of SICOM Capital Management, said 

UPSIDC to manage power in 2 cities

Uttar Pradesh State Industrial Development Corporation (UPSIDC) has been granted the licence for generation and distribution of power in two greenfield industrial areas, namely Tronica City, near Delhi, and Sandila, near Lucknow. 

The Corporation plans to sign a special purpose vehicle (SPV) contract for generation and an operations and maintenance (O&M) contract for distribution. These will be implemented by a wholly owned subsidiary of the Corporation. 

The Corporation will have to establish all its systems on its own, and the feedstock used will be furnace oil. UPSIDC Managing Director, Shri Rajeev Kumar said the move would ensure uninterrupted power supply to the industrial units in the State. 

HSIDC invites application for industrial plots at IMT Manesar

The Haryana State Industrial Development Corporation (HSIDC) is in the process of establishing an industrial model township located about 17 kms from Gurgaon. The Corporation has invited applications from prospective entrepreneurs for allotment of industrial plots of various sizes ranging from 450 sq. mtr. to 17750 sq. mtrs @ Rs.1500 per sq. mtrs. Ten percent of the total plots will be reserved for NRIs and another ten per cent for EOUs. A total of about 900 units are proposed to be allotted land here. 

The IMT Manesar shall have essential infrastructure facilities like banks, financial institutions, conference centres and seminar halls, hi-tech communication network, adequate sewerage and power CETP & STP etc. All fiscal and other incentives as per the industrial policy of Haryana announced in 1999 shall be applicable to the industrial units set-up at Manesar. 

According to HSIDC Managing Director, Dr. Harbaksh Singh speaking in Chandigarh on January 23 at least 104 companies have been attracted to IMT Manesar. The companies include domestic as well as joint venture with multi national corporations; Major multinations allotted land were Japanese Honda Motor Cycles and Scooters, Denso Haryana, also having Japanese collaborations and Norcool of Norway. 

GIDC plans to set up 24 industrial parks

Gujarat is planing to develop 24 industrial parks with an investment of over Rs.70 billion ($ 1.61 billion) "Over the next 10 years, we plan to set up 24 new estates and a major chunk of the investment will come from the private sector," Gujarat Industrial Development Corporation (GIDC) Managing Director, Shri Sanjiv Misra said on February 10. 

He said the state owned GIDC would form joint venture firms involving partnerships between the government and private investors to develop the estates. Bids will soon be invited for two parks close to the newly developed Pipavav and Mundra ports. Private developers will have a majority stake in the projects and will also have the freedom to develop and market the estates. 

GSFC's scheme for High Tech Agriculture 
Financing 

High Tech Agriculture financing has been identified by the Gujarat government as the activity having the maximum potential in the next millennium for the state. Gujarat State Financial Corporation (GSFC) has therefore, decided to support entrepreneurs of small scale industries having surplus land, corporate houses who can individually develop the project, progressive farmers, educated unemployed youth and anyone with interest in Hi-Tech Agriclture under the scheme. 

The salient features of the scheme include upgradation of existing activities with regard to soil management, irrigation, fertilisers, crop management, marketing and quality control. GSFC would be a catalyst to the growth of this sector which would include upgradation of the existing technology to the international level. 

Scope of the Scheme

GSFC would make available services, consultancy, technology and know-how support under one roof in respect of : 

a Green House 

b Shade House 

c Irrigation System 

d State of Art Fertiliser System 

e State of Art Pests and Disease Management Systems 

Promoters Contribution

Minimum 35% of the cost of the project. 

Debt Equity Ratio : 1:5 

Security

Exclusive charge over the assets purchased out of the loan, if being agricultural land then 100% collateral would be required. 

Over and above collateral security as per the prevailing norms of the Corporation. 

Period of Repayment

Maximum upto 7 years with a moratorium upto 18 months. 

Scrutiny fees

Rs.200 per Rs.1 lac for the applied amount 

Upfront fees

1% of the sanction amount. 

Eligible Loan amount

Rs.10,000 to Rs.240 lacs.

Rate of Interest

Upto Rs.2 lacs 12.5% 

Above Rs.2 lacs 16% (net) 

Subsidies

The subsidies grant of refinancing under soft loan as per the existing policy of the government will be available. 

KSIDC rerpesents Kerala at IT Asia 2000

Global players from the information technology sector displayed their products and services at IT Asia 2000 held in New Delhi from February 7-11, which was inaugurated by Minister for information technology Shri Pramod Mahajan, and organised by the Confederation of India Industry (CII). 

Kerala, the partner state at IT Asia 2000, was represented by Kerala State Industrial Development Corporation (KSIDC), Kerala Bureau of Industrial Production (KBIP) and Technopark. 

There were 69 domestic companies and 19 overseas exhibitors from United States, Germany, Australia, Canada, Japan and Singapore. 

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