1. Gujarat State Financial Corproation (GSFC)
(a) New GSFC Scheme : GSFC.COM
The GSFC has launched a new scheme to help IT revolution taking place in the country. It is proposed to fund IT projects with features of venture scheme. It combines features of venture capital and term loan. This product will cater to the IT industry including IT enabled services, software services, IT training centres etc. Brief outline of the scheme is as under :
GSFC would provide loan for Hi-Tech Agriculture which includes Hi-Tech System for crop cultivation, floriculture, fruits & vegetables, herbal & ayurvedic plants, aromatic plants, oil seed cultivation, tissue-culture & bio-technology, captive industrial produce, mushroom & food processing, arid zone related agro plantation as the most potential spheres.
It would support SSI entrepreneurs having surplus land, corporate houses able to develop the projects individually, progressive farmers, educated unemployed youth and anyone with interest in hi-tech agriculture, to the tune of Rs.10,000 to Rs.240 lakhs.
Scope of the scheme also includes green house, shade house, irrigation system, state of art fertilization system, state of art pests and disease management system, post harvest including cold store, pack house and processing, intergranted projects. Technology or know how support will be given to entrepreneurs to make their farms as model hi-tech hi-profit farms.
(c) Term Loan support to acquirers of assets u/s 29 of SFCs Act, from GSFC
In order to help the acquirers of assets under section 29 of the SFCs Act, from the Corporation to put them in optimum use, a formal ‘scheme acquire’ is approved by GSFC. Broad features of the scheme are :
GSFC is offering online quarterly updated account status to all its borrowers via the Internet. The borrower can now just log on to firstname.lastname@example.org, enter his secret borrower- specific password, and see the current status of his account on the screen.
(e) GSFC’s improved efficiency by integration
the need for the development of an Integrated Management Information System,
in 1996. M/s. Tata Consultancy Services was hired to develop an Information
System and Technology Plan (ISTP) for the Corporation. Based on their report,
an Integrated Management Information System (IMIS) was developed. This
uses state-of-the art software and hardware, and covers all the functional
areas of the Corporation. The software was developed in two phases.
The first phase included Appraisal (Apr), Disbursement (Dis), Recovery
(Rec), Legal (Leg), Loan Accounting System (LAS), and Financial Accounting
System (FAS), while the second phase included Payroll (Pay), Personnel
(Per), Administration (Admn.), Resources (Res), Financial Services Division
(FSD), Information System Management (ISM) and Library (lib). The Library
module does not literally mean the library of books of the Corporation,
but includes certain components that are used by all other modules - i.e.
District Masters, Taluka Masters, Branch Masters, Rate Masters, Professional
The Gujarat State Financial Corporation (GSFC), in collaboration with SIDBI and Exim Bank, has decided to form a venture capital fund (VC) of Rs.15 crore as seed capital to help small and medium scale entrepreneurs (SMEs) for taking research and development (R&D) in bio-technology to farmers.
The Board of Directors of GSFC gave a go to the scheme as Government of Gujarat (GoG) considered high-tech farming as the latest ‘sunrise industry’. GSFC has already extended loans to a number of SMEs from its existing scheme of financing ayurvedic and herbal projects.
SICOM’s 34th Annual General Meeting was held on July 27, 2000 at Kamalnayan Bajaj Hall, Nariman Point, Mumbai.
The year 1999-2000 was a year of consolidation for SICOM. After enduring several tough years of rising NPAs, SICOM’s net NPA fell from the previous year’s 15% to 14.11%, a level that is comparable to that of the All India Financial Institutions. SICOM showed all-round progress in its performance with operating profit of Rs.88.26 crores. The Profit after Tax during the year 1999-2000 was Rs.18.79 crores.
Delivering the Chairman’s address Shri A.K.D Jadhav, MD, SICOM said that as on 31st March, 2000 SICOM’s asset base stood at Rs. 2137 crore showing an increase of 6.1% over the previous year’s asset base of Rs. 2014 crores. During this year, SICOM sanctioned Rs. 613 crores and disbursed Rs. 568 crores. Earnings per share increased from Rs. 2.28 per share to Rs. 2.51 per share.
SICOM’s capital adequacy ratio is comfortable at 18% which is well above the RBI norms of minimum 15%.
The Company has recently announced a one percentage point cut in its rates of interest which has been effected through a reduction in the Reference Rates (i.e. SICOM’s PLRs for long and short term financial assistance). SICOM is also offering floating rate loans and all existing borrowers with loans at floating rates linked to the Reference Rate will also benefit from the reduction. SICOM has also reduced the interest rate of fresh loans of medium and short term maturities by one percent.
Shri Jadhav said in his speech that in the current financial year SICOM has turned its focus on emerging sectors like IT, Infrastructure, Gems and Jewellery, Bio-technology etc. An incubation Scheme is already in place for the IT sector. The Scheme is targetted at medium scale IT companies set for take-off and offers loans on very flexible terms. SICOM plans to fund a cluster of software units in the Millenium Business Park at Navi Mumbai under the scheme during the current financial year.
RIICO cuts service charge hike
Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO), the state’s developmental institution, has taken a number of steps in line with the efforts of the Rajasthan government to make a congenial environment for setting up of industries in the State.
RIICO has decided to reduce the annual increase in service charges from 10 to 6 percent. The service charges are collected from the allottees of plots in RIICO’s industrial areas for recovery of expenses made for maintenance of roads, drains, streetlights etc.
RIICO has decided to go for simplification of procedures; providing additional facilities; allotting land and buildings at reasonable rates to different organisations for banks, development projects, primary medical health centres etc.
RIICO has also decided to increase the period for sub-letting of premises from a period of 15 years to up to further 10 years. This decision would apply only to those industrialists who are running their industry in rented premises. Extending the period of sub-letting will be permitted only to meet the requirement of the scheme for providing incentives to industrialists.
In the case of new allotment or transfer of plots in RIICO’s industrial areas, the allottee will not require a no objection certificate (NOC) from either Rajasthan State Electricity Board or RIICO. The requirement of such certificates was delaying the transfer process including getting power connections. Subsequent to this decision, the allotment letter / transfer of permission letter will be treated as NOC for release of power/water connection from the concerned departments.
While allotting corner and highway facing plots of 10 acres or more, no additional rate will be charged. At present, they are being charged 10 per cent and 15 per cent additional rate for the corner and highway facing plots respectively. Also for plots of less than 10 acres facing national highway, no additional charges shall be levied.
Social infrastructure also figures prominently in the above decisions. In the first phase of the Basni Industrial area at Jodhpur, the Assistant Regional Manager’s office has been allotted to the chief medical and health officer for setting up of a primary health centre on a token amount of Re.1 per year. Similarly, at the centre in Khara growth centre in Bikaner, a building has been allotted to State Bank of Bikaner and Jaipur for opening a branch on reduced rent. At Dholpur industrial area, 2 buildings have been allotted to Small Industrial Service Institute (SISI) for setting up a development centre.
KSIIDC, GAIL pact on pipeline
The Karnataka State Industrial Investment and Development Corporation (KSIIDC) and Gas Authority of India Ltd. (GAIL) signed an agreement for the development of a gas pipeline network and marketing of natural gas in Karnataka on 10.07.2000.
The price of the gas will be at 12% returns on the equity with the agreement having a debt equity ratio of 1:1.
Under the agreement, GAIL and KSIIDC will set up a joint working group to evaluate the potential consumers, the demand pattern and required pipeline network/grid to service these for ensuring long-term supplies at competitive prices.
Apart from GAIL and KSIIDC, the joint working group will include representatives of potential users like the Karnataka Power Corporation, the fertilizer industry and other government bodies.
GAIL which has a gas pipeline network of over 4,000 km in the country and has a 95 per cent share of the gas market, will use its technical and commercial expertise to conduct a preliminary techno-economic study, based on gas demand potential and its geographical distribution.
TIDCO to set up floriculture infrastructure park
Tamilnadu Industrial Development Corporation (TIDCO) has entered into a joint venture with Ahmed Brothers and International Finance Corporation to set up India’s first floriculture infrastructure park - ‘Tanflora Infrastructure’. The park is being set up at Hosur at a cost of $ 6m. The project would be spread over 88 hectares and 50 hectares of this would be dedicated to cultivation of roses for export to Germany, Netherlands, Japan, Australia and Middle East. The greenhouse plots of 1-34 hectares each would be leased to small growers. The remaining land will be used to set up common infrastructure facilities for the post harvest handling of produce and marketing. Tanflora will act as a business incubator for small floriculture companies and try to alleviate the shortcomings faced by the domestic floriculture sector. A common infrastructure to all growing units would overcome the under-utilisation of capacity currently plaguing the floriculture sector.
UPSIDC to set up 5 Agro-Industrial Parks
Uttar Pradesh State Industrial Development Corporation (UPSIDC) alongwith U.P. State Government and various Central institutions like the Ministry of Food Processing, NABARD, NHB, Agricultural and Processed Foods Export Development Authority (APEDA) and Exim Bank is setting up 5 Agro-Industrial Parks in Uttar Pradesh with an outlay of around Rs.94 crore to exploit the immense export potential offered by agro-based industry.
industrial parks will offer common facilities for supporting and sustaining
growth within the complex by providing customised industry specific infrastructure
for the units to make them competitive and self-reliant. The envisaged
support structure would include water-supply and drainage, uninterrupted
power supply, laboratory for testing products, etc. The proposal
is to process large varieties of food and vegetables grown in the State
as well as cereals and other commercial crops. Locations identified
for the parks are in Haldwani, Saharanpur, Lucknow, Hapur and Allahabad.