MEMBER CORPORATIONS - THEIR ACTIVITIES

 

 

HSIDC

HSIDC to set up IGC and Food Parks

Haryana State Industrial Development Corporation (HSIDC) has launched an Industrial Growth Centre and a Food Park on the Ambala - Jagadhari National Highway. The IGC is being developed over an area of 415 acres with assistance from the Government of India. 

HSIDC is setting up a number of food parks to promote food processing industry in the State and also to encourage agriculture diversification and crop patterns. These food parks are being set up with the assistance of the Government of India, Ministry of Food processing. The first such food park is being set up at Saha in district Ambala for which a 70 acre piece of land has been earmarked within the IGC. The second park is being set up at Rai in district Sonipat near Delhi abutting the National Highway No.1. The third Food Park will be set up at Narwana in Jind Distt. and the fourth is proposed to be set up at Dabwali in Sirsa Distt. 

The Growth Centre is slated to have the state-of-the-art infrastructure facilities. Besides wide roads, a green belt of 30 meters width on both sides of highway has been planned to meet the future traffic needs. It would also have an under ground sewerage and drainage system and an effluent treatment plant. Quality power supplies through a dedicated 132KV sub station shall be provided to the industrial units coming up in this centre. Provisions have also been made for the construction of a police station, a fire station, a dispensary, a community centre and for any other future demand for public buildings including telephone exchange. 

Besides the industrial infrastructure, HSIDC has also planned about 80 acres of land within this growth centre for residential plots to be allotted to the allottees of this growth centre and food park.

In order to facilitate the small and medium entrepreneurs in setting up their projects in this growth centre, HSIDC is offering 20% up-front rebate on the cost of land which has been brought down from Rs.700/- per sq. mtr. to Rs.560/- per sq. mtr. All incentives that exist for the agro sector like Capital Investment Subsidy Scheme of National Horticulture Board and that of APEDA such as packaging Scheme subsidy, Post Harvesting Kits Subsidy, Cold Storage Subsidy and Quality Certification Subsidy will also be available.

A test laboratory is also being set up within the food park for the benefit of the food processing units in collaboration with IDMA laboratories of UK to test the quality of the products and certification thereof as fit for human consumption and export.

Sops for Loanees

To provide the benefit to the defaulting borrowers, the HSIDC has decided to introduce One Time Settlement (OTS) to be done in all loan cases like term loan, working capital term loan, bridge loan etc. The policy will cover the doubtful loans where the principal remained overdue for a period exceeding two years. There will be four categories under this scheme. The first category would cover the loan accounts, which have remained doubtful for less than three years. In this category, the account may be settled by waiving off entire penal interest plus 25 percent component of compunded interest. This waiver shall not exceed 25 percent of total outstanding. The second category would cover the loan accounts, which have remained doubtful for more than three years but less than five years. In this case, the benefit permissible is that the accounts may be settled by waiving off entire penal interest plus 50 percent component of componded interest. However, the waiver in this case would not be more than 50 percent of total outstanding. The third category covers the loan accounts, which have remained doubtful for more than five years. In this case, the accounts may be settled by waiving off entire penal interest plus 100 percent component of compounded interest. Only those cases would fall in the last category where the primary and/or collateral securities have already been disposed off by the corporation. There will be no verification of assets and the eligibility under the scheme will not be linked with personal assets of borrowers and guarantors.

In order to make this scheme more attractive and customer - friendly, HSIDC has decided to change the mode of payment of the instalment to pay the OTS amount from monthly to quarterly. The earnest amount under this scheme will be payable by the company over a period of two years. OTS amount will carry interest at the prevailing interest rates. In no case the principal & miscellaneous amount shall be waived off under this policy. The benefit under the policy will be passed only after receipt of full amount as per settlement.

`MA' rating for Public Deposit Scheme

The Public Deposit Scheme of HSIDC for the current year has been reaffirmed its "MA" rating by ICRA. This rating has been retained by the Corporation continuously for the last seven years which reflects the financial health of the Corporation as well as the investing public's faith in its Public Deposit Scheme.

This rating takes into account : capital adequacy, asset quality, recoveries, management, earnings, and financial flexibility and liquidity position of HSIDC. 

HSIDC to set up fire station at U.V. Gurgaon

A fire station will be set up in the office complex of HSIDC, Udyog Vihar Gurgaon for the benefit of the industrial units operating from this sprawing complex spread over six phases. The total expenditure on the facility will be borne by HSIDC out of the funds generated from infrastructure augmentation charges. A nominal rate would be charged after one year of its opening from the allottees of Udyog Vihar at a rate ranging between Rs.1.25 per sq. mtr. to Rs.2.77 per sq. mtr. per annum. 

The proposed fire station will be the first of its kind in any industrial estate in Haryana and would meet a long-standing demand of the industrialists of Udyog Vihar. 

APSFC

APSFC cuts NPAs to 41%

Andhra Pradesh State Financial Corporation (APSFC) has had a successful financial year 2001-02, during which it surpassed the targets set for all its main areas of operation such as disbursements, sanctions and recoveries. It also brought down its NPAs to 41 percent during the year from the previous 61 percent. Its sanctions during the year were to the tune of Rs.412 crore as against the target of Rs.350 crore and the disbursements were Rs.309 crore, Rs.9 crore more than the target. Similarly, the recoveries amounted to Rs.340 crore as against the target of Rs.330 crore. APSFC Chairman, Shri M. Gopalkrishna, and the Managing Director, Dr. J.C. Mohanty, said the corporation has set a target of further reducing the NPAs to 35 percent during the current financial year. 

ITGI ties up with APSFC to sell insurance products 

IFFCO Tokio General Insurance (ITGI) has signed up APSFC to distribute general insurance products in Andhra Pradesh. The managing directors of both the corporations signed the memorandum of understanding (MoU) to this effect in Hyderabad on June 10, 2002. 

The MoU will allow ITGI to expand its network and distribute its products throughout Andhra Pradesh. ITGI will use the 25 offices of APSFC as the distribution arm. 

This will be done by training the APSFC employees in insurance and enabling them to sell the general insurance products. The general insurance company plans to extend all its product offerings that includes fire, marine, motor, travel insurance etc. to APSFC. 

APSFC has been playing a pivotal role in the development of finance intermediary and has made significant contribution to the industrialisation of the state by extending financial assistance to enterprises. ITGI plans to offer co-branded products to the APSFC customer and thus have a ready-made customer database. 

KSIDC

KSIDC pact

The Kerala State Industrial Development Corporation (KSIDC) has signed a memorandum of understanding for setting up an international tourist village with Bahrain based Mahanami Hotels and Resouts (MHR0. The agreement was signed by KSIDC managing director, Mr. Jiji Thomson and MHR managing Director, Mr. M.N. Satish.

UPFC

UP turns the corner 

The Uttar Pradesh Finance Corporation (UPFC) has shown a net profit of about Rs.1 crore in 2001-02, without the accumulated losses.

The corporation has reduced the level of non-performing assets from 72 percent of its loan portfolio in 2000-01 to about 62 percent at the end of 2001-02. It has pursued one-time settlement, thus increasing the standard loan portfolio to about Rs.360-380 crore from Rs.280 crore in 2000-01. The outstanding portfolio stands at Rs.960 crore.

The improvement in the situation has come about during a downturn. Its sanctions in 2001-02 increased to Rs.160 crore from Rs.114 crore in 2000-01, and disbursals increased to Rs.100 crore in 2001-02 from Rs.58 crore in 2000-01. 

The amount of recovery was Rs.140 crore in 2001-02. Interest receipts were Rs.120 crore. In 1999-2000 the amount of assets liquidated was worth Rs.82 crore; in 2000-01 it was Rs.83 crore. In 2001-02 it reached Rs.93-95 crore.

The corporation has saved Rs.7 crore on its high-cost borrowing by paying back loans before schedule. The refinance rate from the SIDBI was 11.5 percent. The issue of bonds was at an interest of 8.33 - 8.66 percent. 

MIDC

MIDC is the nodal agency of the Maharashtra Government for industrial development and has successfully developed more than 200 industrial parks of which 18 have been dedicated to IT. 

Hinjawadi (Pune Infotech Park), Navi Mumbai (Millennium Business Park), SEEPZ and Samruddhi Venture Park at Andheri are the IT projects with MIDC. It is also working to set up parks in other sectors. MIDC was instrumental in getting MIT Medial Lab to set up office at the MIDC-developed Samruddhi Venture Park in Mumbai. MIDC Media Lab will direct all its operational research projects throughout India from Mumbai. 

MIDC started with developing industrial land in a small way and in 40 years has developed almost 50,000 hectares (1.5 lakh acres).

MIDC has two revenue streams - land and water. Land around Mumbai was acquired over 30 years ago and appreciated considerably. Water has been profitable because MIDC's supply is reliable having invested in a couple of dams 20-25 years ago. So the cost of water is among the cheapest in all states. The entire infrastructure from construction of the dam, pipeline, water treatment and distribution is done by MIDC.

MIDC has forayed into new areas like bio-technology (BT), winemaking, floriculture and food processing. MIDC has lot of strength in bio-technology with the proxmity of some of the biggest players located in Maharashtra like Serum Institute of India and MAHYCO.

MIDC is talking to MAHYCO who have a facility near Jalna to set up an Ag-Biotech Park there. This would enable smaller players to use their facilities. MIDC is also planning to set up a park in Pune for pharmaceutical bio-tecnology life sciences and has set apart 150 acres in Phase II of its Hinjwadi IT Park for this. Some land has been set-aside for a BT institute, which could come up with Pune University in collaboration with a Swedish University. Also, in the offing is a central GMP (good manufacturing practices) facility - to be used by smaller players. 

Wine Park and floriculture are also on the agenda of the corporation. MIDC is also pondering over forming a JV for post harvest activities like sorting, grading, cold storage and refer vans. But farmers will set up their own greenhouses. 

Ministry of Food Processing has already given approval for MIDC's orange processing food park at Butibori near Nagpur. Similar parks are planned in Western Maharashtra, which is being developed with MAIDC (Maharashtra Agro Industries Development Corporation). 

SICOM

SICOM is shifting from fund based to fee-based income in the changing scenerio to maintain profitability. It wants to change its business plan to work in a buyer's market and for that it has identified the service sector to focus upon. This is because the services account for more than 50 percent of Maharashtra's economy followed by manufacturing at 33 percent and agriculture at 17 percent. 

Moving away from manufacturing oriented projects, SICOM will now focus on financing niche segments that banks and other institutions have yet to size up. These include content providers in the media and entertainment sector; tourism, logistics and distribution including retailing; health services like diagnostic centres and hospitals and education. And while it has traditionally been a venture capitalist, putting in money and handholding to rev up its projects, all for free, SICOM will now charge for the services provided.

The renewed focus is reflected in the refurbished organisational structure. There are four lending windows. The project and planning division is the prime lending window for long-term loans. The IT wing caters to the financial requirements of this and other emerging sectors. Then there are the infrastructure and the advisory windows. The advisory arm will have two branches for business facilitation and financing with six persons in each branch. 

WBIDC 

WBIDC to acquire 14% stake in Haldia

WBIDC is to acquire 14% stake in Haldia Petrochemicals from Tata Sons'.