ACTIVITIES OF COSIDICI

    E.C. MEETING :

    The Executive Committee meeting of COSIDICI was held on May 20, 2002 at Gangtok (Sikkim). The Members had expressed serious concern on the future prospects of SFCs, since none of the stake holders in these Corporations namely RBI, IDBI, GoI, State Governments, SIDBI had evinced positive interest in implementing the recommendations of the Gupta Committee report. The SFCs which were in the grip of a serious financial crisis had suggested some short-term measures for their revival to SIDBI. These had also not been implemented. Adequate refinance from SIDBI was unavailable and therefore, SFCs were finding it extremely difficult to carry on their operations. The E.C. felt that a "Core Group" of a few Chief Executives of SFCs to work out the strategies for putting SFCs back on the rail be formed. The following Chief Executive were nominated on the Core Group: 
     

    1. Shri S.N. Tripathi, IAS
    CMD, OSFC, Cuttack     		 E.C. Member
    2. Shri S.K. Sen, IAS
    MD, WBFC, Kolkata    		 E.C. Member
    3. DR. J.C. Mohanty, IAS
    MD, APSFC, Hyderabad    		 Member Cosidici
    4. Shri V. Umesh, IAS
    MD, KSFC, Bangalore    		 Member Cosidici
    5. Shri Jayant S. Kawale, IAS
    MD, SICOM, Ltd., Mumbai    		 Member Cosidici
    6. Shri P.D. Rai
    Chairman, SIDICO, Gangtok    		 Member Cosidici
    7. Dr. S.B. Medhi
    Chairman, AFC, Guwahati    		 Member Cosidici
    8. Shri Parag Gupta, IAS
    Additional Secretary (Inds.)
    Govt. of Uttaranchal,    		 Special Invitee
    9. Shri k.k. Mudgil Secretary General Cosidici
     

    The Core Group was entrusted with the task of preparing a detailed Paper for presenting to the Union Finance Minister. 
     

    The first meeting of the Core Group was held in COSIDICI office at New Delhi on June 26, 2002 under the Chairmanship of Shri Ashoke Nath, IAS, President COSIDICI. The background notes circulated by COSIDICI formed the basis for discussions at the meeting wherein the following strategies emerged : -
    (i) Approaching SIDBI for initiating short-term measures to provide immediate relief to SFCs to overcome their operational problems, as already taken up with them; 

    (ii) Formulation of an Action Plan to streamline the internal working and functions of SFCs; Gearing up of recovery machinery, improvement in customer service and staff accountability, etc.; Effective monitoring of the progress.

    (iii) Taking up effectively with the Union Finance Ministry for recapitalization of SFCs. The Chief Ministers of respective States may be requested to write D.O. letters to the Union Finance Minister in this regard. Further, SFCs may enlist the support of local M.Ps. to plead their case in the Parliament for restructuring and recapitalization of SFCs on the lines suggested by Gupta Committee. 

    • (iv) Each member of the Core Group has been requested to prepare a paper suggesting strategies for invigorating the SFCs and making them to perform functions of a Development Finance Institution in the true sense. This would include corporatization of SFCs and converting them into Universal 
    • Banks, etc. 
    COSIDICI was asked to take immediate action to approach SIDBI for initiating short-term measures, as suggested above, for providing necessary relief to the SFCs to overcome their present difficulties. SFCs were asked to cleanse their internal house-keeping and launch a vigorous drive for the recovery of overdues/NPAs. It was also decided that the Managing Directors of SFCs approach the Chief Ministers of their respective States to represent to the Union Finance Minister for recapitalisation of SFCs and as well as to make efforts to enlist the support of local Members of Parliament. 

    TRAINING : 

    During the Year 2001-2002 i.e. July 2001 to June 2002, COSIDICI had arranged with College of Agricultural Banking (RBI), Pune to impart Training to the officers of State Level Financial Institutions (SLFIs). Four Training Programmes were held in the above period and 94 officers of SLFIs had undergone training. Keeping in view the feedback received from the participants as well as the views expressed by the Principal of the College, the Executive Committee decided that only two integrated training programmes may be organised in a year which could cater to the requirements of all cadres of officers of SLFIs. It was also suggested that the College may consider Training Programmes for specific corporations on-site which may be for a period of three days. 

    It was further decided that two Workshops for the Chairmen and Managing Directors of SLFIs for a period of two working days each on a specific subject be arranged during the year. 

    CREDIT LINKED CAPITAL SUBSIDY SCHEME FOR TECHNOLOGY UPGRADATION OF THE SSIs :

    The Government of India had launched the above Scheme in October, 2000 to facilitate technology upgradation of SSI units by providing 12% capital subsidy. On the representation of COSIDICI, SFCs were included as "eligible institutions" to operate the Scheme alongwith the Commercial Banks and National Small Scale Industries Corporation in December, 2001. The scheme has been well received by our Member Corporations and four SFCs. i.e. TIIC (Chennai), UPFC (Kanpur), HFC (Chandigarh), and WBFC (Kolkata) have already executed General Agreements with SIDBI under the Scheme. 

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