SICOM charts out major diversification plan
Mumbai based development bank State Industrial and Investment Corporation of Maharashtra (SICOM) has embarked upon a major diversification plan with a focus on corporate loans, privatisation of public sector undertakings and other agencies and tailor-made financial packages for infrastructure, Information technology (IT) and entertainment sectors.
SICOM has also decided to increase its asset base from the existing Rs. 2,000 crore to Rs. 3,000 crore within a year or two.
SICOM, Managing Director, Shri A.K.D. Jadhav said on 05.09.2000 that the company whose income has risen by 3.17 per cent to Rs. 239.67 crore in 1999-2000 from Rs. 232.31 crore in the previous year would in future offer “Individual tailor made financial solutions to corporate”. The company would give a guarantee to banks to operate Letters of Credit as well as it would offer bill discounting facility to certain blue chip companies. SICOM would also help the state government in carrying out privatisation of loss making public sector undertakings, even while carrying out sales tax deferral scheme for the government. “Under this scheme, SICOM will directly go to the markets and float bonds at a discount”.
SICOM can undertake the implementation of house building loans for government employees currently run by the government through the budgetary allocation.
As far as ICE sector is concerned, SICOM has already set up a separate division to take stock of fast changing developments on this front and swung into action. “SICOM has started funding infrastructure projects such as roads, flyovers, chemical terminals by securitising receivables”. SICOM would fund investors for carrying out expansion through these receivable.
SICOM is a partner in a consortium comprising international Port Engg. and Management - NV, Technom NV (both from Belgium) and Dredging International which have been short listed for the Rs. 1,700 crore marine chemicals terminal at JNPT.
On the IT front SICOM has set up a venture capital fund of Rs. 24 crore. SICOM venture capital fund which is head-quartered at Pune, has been managed by SICOM Capital Management Limited a wholly-owned subsidiary. The fund would seek a significant but minority position, preferably not exceeding 25 per cent of equity stake in the investee companies. The fund has provided assistance to promoters of IT venture in the Pune Infotech Park and Millennium Business Park launched by MIDC.
On SICOM’s foray into the entertainment industry, Shri Jadhav said that it is actively involved in the development of a shopping mall cum entertainment centre in the premises of Phoenix Mills at an investment of Rs.98 crore. Moreover, SICOM is also associated with the Rs.98 crore Landmarc Leisure promoted by S. Kumars.
SICOM has given
top priority to reduce the incidence of non-performing assets and added
that the percentage of NPAs to total loan assets has marginally decreased
from 14.79 to 14.11 during 1999-2000. In addition to this,
SICOM has been successful in increasing capital adequacy ratio to 18.27
per cent from 15.47 per cent.
RIICO to set up agropark at Abu
Industrial Development & Investment Corporation Ltd. (RIICO) is going
to establish a highly sophisticated agro-food park at Abu Road in Sirohi
district of Rajasthan. The park would be located on 200 acres of
land at RIICO’s industrial area in Abu Road, which offers congenial climatic
conditions, requisite soil qualities and ideal geographical location.
To be first of its kind in India, the eco-friendly park promises to offer
the most advanced amenities with state-of-art infrastructure support to
the prospective entrepreneurs. An Ahmedabad based consultant has
been entrusted with the task of developing the agro-food park.
Special infrastructure facilities like pre-cooling chambers, cold storage
including holding storage, grading and packing equipment: quality control
laboratory; seed bank, research and development centre and refrigerated
transport facilities etc. would be set up at the agro-park by private investors
and agriculture producer associations.
Two road projects cleared in U.P.
The Uttar Pradesh Government has cleared two road projects serving important industrial zones. These include a 10 km stretch from Delhi to Loni and 16.55 km Mandhana-Bhounti bypass project. The first project will cut down the travel time from Delhi to Tronica City, Ghaziabad, by about 20 minutes and will make the access easier. Tronica City, a Rs.320-crore project, is spread over 1,600 acres of land in a prime location and is one of the most prestigious projects of the Uttar Pradesh State Industrial Development Corporation (UPSIDC).
According to the projections, this road will receive traffic of over 7,000 vehicles plying everyday by the year 2010. The project cost is estimated at Rs.18.8 crore. Besides wayside amenities, the plantations along the roadside have also been planned. Traffic survey, road alignment as well as techno-economic feasibility studies for the projects were undertaken by the various experts which includes Ferguson and Company and Tata Consultancy Services.
UPSIDC to promote food processing sector
UPSIDC is setting up a 112 acre ‘food park’ in Ghaziabad district in a joint venture with Wise Industrial Park Ltd. (WIPL) to promote agro industries through creation of a common infrastructure facility.
With an investment of Rs.50 million and spread out on 12 acres, the common facilities include a 4,000 tonne capacity cold storage and a 6,000 sq. feet grading and packaging unit.
promoters are planning road shows in France later this month, to be followed
up in the USA next year to attract multi-nationals and non-resident Indians
to invest in a sector which enjoys several facilities including government
subsidy, automatic route clearance and full repatriation of foreign direct
investment. The Indian food processing industry currently contributes
just two per cent of the global trade.
GIDC appoints consulant
Industrial Development Corporation (GIDC) has appointed real estate consultant
Shri C.B. Richard Ellis to undertake a feasibility study of the proposed
industrial greenfield projects at Mundra and Padra. The consultant
will carry out the financial feasibility and help GIDC to take investment
decisions, including determination of location, pricing, financial viability
and issues related to development works.
UPFC introduces rebate to good borrowers on annual basis
UP Financial Corporation (UPFC) in its endeavour to offer, more incentives to regular and good borrowers, has decided to allow 1% rebate in interest rates under its Terminal Interest Rebate Benefit (TIRB) Scheme. With a view to motivate and encourage the borrowers to remain regular, the above rebate will be allowed on year to year basis. Till now this rebate was given to regular borrowers at the end of the currency of loan i.e. after four or five years. Now it would be given on year to year basis. The rebate item calculated would be passed on to the borrower in cash or credited in the principal outstanding. Thus, the benefit of lower interest rate would be available in the beginning itself at a time when it is needed most.
Vittiya Bandhu to solve problems of entrepreneurs
UPFC has emerged as an entrepreneur - friendly institution. In order to have better interaction with various Industrial and Entrepreneurs’ Associations, UPFC has decided to organise “Vittiya Bandhu” meeting in every regional office. The meeting of the Vittiya Bandhu will be held in Regional Offices every month under the Chairmanship of Zonal Manager. The Industrial asociations operating in the area will be invited in Vittiya Bandhu to discuss latest policy circulars of the Corporation, benefits, trends etc., policies of the Corporation pertaining to new sanctions, disbursement and One Time Settlement (OTS). Suggestions from the Associations for the improvement in the Working of the Corporation and outlook for business and industrial environment in the area will be obtained and discussed.
Through these meetings, UPFC aims to disseminate information pertaining to policy initiatives like interest rate reduction, lowering of Interest Rate for Good borrowers and taking up issue with Government of India for Credit Guarantee scheme, incentives etc. The idea behind Vittiya Bandhu meetings is that there should be a cordial atmosphere between the Corporation and various Industrial Associations and members of Industry so that each could work for the best benefit of entrepreneurs.
Sectoral Task Forces constituted by UPFC to study various sectors
With the objective of improving appraisal standards and avoid fresh accretions of non performing assets, UPFC has decided to constitute Sectoral Task Forces. STFs would compile data/information on various sectors of economy pertaining to technology, market scope and impact of emerging economic scenario on the product. The study would be done on micro and macro level. At micro level, the studying would have International/National / Regional perspective, at the same time being relevant to UPFC operations.
A Separate Task Force has been constituted to study the impact of WTO on various sectors. STFs have been assigned to study different sectors comprising of HDPE Woven Sacks, fabrics, plastic products, paint and varnishes, drugs and pharmaceuticals, Ayurvedic preparations. Indian system of medicine, cosmetics; flour mills, rice mills, cold storage, milk and milk products, edible oil, induction furnace and rolling mills, bio-technology, MG crafts, media tissue paper and boards, paper products, rubber and rubber products, hotel and banquet halls, nursing homes, electrical item like motors, transformers and cables, information technology, light engineering and auto parts and textile and readymade garments sectors.
provided by the task forces would provide an important input in the appraisal
of projects and assist in the loan tracking system being developed by UPFC.
Shri S.K. Nanda is the Member Secretary of the Bio-technology Council
The Government of Gujarat has recently constituted a Bio-technology Council. The functions of the council would document the advances in Bio-technology the world over, network with Central and State R&D periodically, interactions with the industry, etc.
The Council is headed by Hon. Chief Minister, Govt. of Gujarat and other members would include Minister Industries, Minister Finance, Minister of State for Agriculture, Minister of State for Higher & Technical Education, Chief Secretary, Eminent Scientists, Eminent Educationist, etc. The Managing Director of GSFC, Shri S.K. Nanda, IAS has been appointed the Member Secretary of the Council.
GSFC appointed SCA of NHFDC
The National Handicapped Finance and Development Corporation has been incorporated by Ministry of Welfare, Govt. of India on 24th January, 1997 under section 29 of the companies act, 1956, as a company not for profit. It is wholly owned by Govt. of India and has an authorised share capital of Rs.400 crores. The objectives of the company to promote economic development activities for the benefit of the persons with disabilities, as well as to promote self-employment and other ventures for the benefit/economic rehabilitation, for getting technical education, upgradation in the knowledge of technical and entrepreneurial skills and various activities. They will support disabled persons under various scheme covering self-employment, agriculture activities, manufacturing production activities, entrepreneuship development scheme etc. Under the scheme, they will get assistance of Rs.25 lacs from the Corporation at the rate of interest between 5% to 10%. Upto Rs.50,000 the disabled person will get 100% finance, while above Rs.50,000 and upto Rs.25.00 lacs they will get 90% to 95% finance.
GSFC has been appointed as new SCA of NHFDC for the state of Gujarat. Corporation will scrutinize all the applications received from the disabled persons and disburse the loan after sanction by NHFDC.
GSFC to set up VCF for Bio-technology
The field of Bio-technology is growing. It covers sectors like pharmaceuticals, chemicals, foodgrains plants, etc. At a seminar organised recently in Ahmedabad more than 250 delegates from all over the country participated. GSFC is now planning to set up Venture Capital Fund. The size of the Venture Capital Fund would be Rs. 25 crores. It has already started drawing blue print and has constructed a road map for this activity.
Shri S.K. Nanda, Executive Member on the Govt. Body of WASME
Shri S.K. Nanda, has been elected as a member on the Government Body of World Association for Small and Medium Enterprises (WASME) for the year 2000-2002.
World Association for Small and Medium Enterprises (WASME) came into existence in 1980 in New Delhi and over the years has gained recognition as the international non-government organisation (NGO) servicing the wide ranging concerns and aspirations of SMEs. It is one of the leading repositories of trade information and other relevant data to the small business practitioners, policy makers, academicians and financial institutions in 112 countries with a target of serving 150 nations by the end of 2000.
WASME is the only international non-governmental organisation of SMEs enjoying consultative status with Economic and Social Council of the United Nations. United Nations Conference on Trade and Development, United Nations Industrial Development Organisations, World Intellectual Property Righsts Organisation and enjoys operational relationship with UNESCO.
SME sector, however, continues to suffer from certain inherent weaknesses and handicaps, largely because of their inability to furnish suitable security for obtaining adequate credit and inability to hire the service of skilled and tecnically qualified personnel for production, management and marketing. WASME is continuously engaged in identifying constraints and developing packages to overcome them.
GSFC’s new financial assistance scheme for handicapped entrepreneurs
GSFC has declared a brand new financial assistance scheme for all handicapped persons between 18 and 55 years of age determined by 40% or more physical or mental handicap, and has offered that these handicapped entrepreneurs can avail financial assistance on liberal terms and at a nominal interest rate of 5 to 10 per cent, depending upon the amount of loan, and can become self-reliant, thereby contributing their mite to industrial growth of Gujarat.
In order to become eligible for assistance, the incumbent unemployed handicapped entrepreneur’s total family income should be less than Rs.80,000 p.a. in rural areas and Rs.1,00,00 p.a. in urban areas. The handicapped person should also provide a certificate from civil surgeon regarding his handicap alongwith other details. Those handicapped persons who are members of co-operative societies of the disabled would also be subject to these eligibility parameters.
If the handicapped person is a female, she would be allowed a 2% rebate in the rate of interest. In case of regular repayment of loan, all handicapped persons will be given a further concession of 1/2%.
Ceiling on project assistance raised under restructured national equity fund scheme
Now industrial units with project costs upto Rs.25 lakhs (instead of the earlier Rs.10 lakhs) as also doctors and professionals can avail liberal assistance upto 25% of project cost subject to maximum Rs.6.25 lakhs under the restructured National Equity Fund Scheme. This was revealed by Shri Indravijaysinh K. Jadeja, Chairman GSFC. He added that the restriction on loan assistance in metropolitan areas is also removed.
Those entrepreneurs who wish to set up a new tiny or small scale industrial unit or those who wish to rehabilitate their sick but viable small scale units can now avail assistance without prejudice to their location. Also, all working tiny or small scale industrial units and service industry units eager to extend, modernise, diversify or upgrade technologically will be able to acquire assistance. Those units which were earlier assisted under National Equity Fund Scheme are also eligible to avail benefits under the restructured scheme.
Shri S.K. Nanda, stated that in order to be eligible, the promoters’ margin must be 10% at the minimum, whereas the debt: equity ratio should be 65:35 or 1.857:1. However, in cases of rehabilitation, flexible approach will be adopted.
Jurisdiction of GSFC now extends to union territory of Daman & Diu
GSFC was uptil
now empowered to advance finance to the units being located in Gujarat
and in Union Territory of Dadra & Nagar Haveli. Looking to the proximity
of Diu and Daman (the Union Territory) to Gujarat, Shri I.K. Jadeja, MLA
- Chairman and Shri S.K. Nanda, IAS Managing Director of the Corporation
had vigorously taken up the matter with Government of India for inclusion
of both these places of Union Territory within the ambit of jurisdiction
of GSFC. GoI has granted the request of GSFC and a decision has been taken
to extend jurisdiction of GSFC over Diu & Daman.
WEBA facility launched
As a major step taken by PICUP in the direction of e-governance, the Web Enabled Borrowers Account (WEBA) facility of PICUP was launched by Chairman PICUP recently. This facility has been developed with the help of Tata Consultancy Services.
For the latest accounts status, the borrower can gather on the internet all relevant data through PICUP website-www.picupindia.com. The main advantage of this new facility is easy access from any where in the world to updated information of current status of accounts. Confidentiality has been ensured by providing accessibility of the accounting information only to authorised users through a password validation scheme. Account holders will have the advantage of reconciliation of their accounts through e-mail instead of physically coming to PICUP office.
Venture Capital Scheme for Infotech Sector
PICUP has specially designed a Venture Capital Scheme to serve the needs of entrepreneurs interested in setting up Infotech Projects in the State. Under this scheme PICUP will sanction financial assistance to the extent of Rs.15 lacs to a single promoter and Rs.25 lacs, to more than one promoter.
Bill Discounting Scheme Revitalised
The Bill Discounting Scheme was launched by PICUP with the view to enlarge existing range of services to the financially sound and credit worthy clients. The scheme has been made more attractive by making certain amendments in it which are targeted at facilitating enhanced and cheaper assistance to the clients. The maximum limit under the scheme has been enhanced from Rs.150 lacs to Rs.250 lacs for companies with a year’s satisfactory track record. The ceiling on the amount of individual bill has also been increased from Rs.25 lacs to Rs.50 lacs.
Further, the criteria of net profit of Rs.1 crore has been changed to cash accruals of Rs.1.50 crores in each of the last 3 years with minimum average net profit of Rs.20 lakhs in 3 years. However, it is stipulated that no bills should be raised on its sister concerns by the Company availing of Bill Discounting facility from the Corporation.
Concessions to Mini Cement Units
Realising the special needs of the Mini Cement Units of the State facing difficult conditions and also considering the request of U.P. Mini Cement Plant Association, PICUP has decided to liberalise one time settlement package for mini cement plants. According to this settlement package, the amount of one time settlement will be calculated on outstanding principle plus simple interest from the date of disbursement upto the date when the unit became a NPA for the first time.
Interest Rate Slashed
industrial investment in U.P. PICUP has slashed interest rates on term
loan, bill discounting and other schemes by 2%. With this decision, the
rate of interest on term loans which was 18% has come down to 16%.
Haryana State Industrial Development Corporation Ltd has developed an Industrial Model Township, known as IMT at Manesar about 17 KM from Gurgaon on the National Highway linking Delhi with Jaipur.
IMT Manesar’s proximity to Delhi and Gurgaon makes this township an ideal industrial destination for US companies who have shown keen interest in setting up industry here.
which have already been allotted land here are Honda Scooters and Motocycles,
Denso, Norcool, Mitsubishi Electricals, Videocon, Motorola, Johnson Matthey
(India) Pvt. Ltd., Baxter India and the prestigious Automobile Research
Association of India (ARAI).
The rating of ‘MA’ (signifying adequate safety) assigned to the Public Deposit Scheme of HSIDC for the first time in 1993 by ICRA has been retained by HSIDC for the last 6 years consecutively. ICRA has reaffirmed the rating after its surveillance was carried out in December 1999.
HSIDC revises interest rate on Public Deposit
The Corporation has revised interest rate under Public Deposit Scheme w.e.f. 01.05.2000. Now the interest rates are for 1 year @ 9.5% per annum, 2 years @ 10% per annum and 3 to 5 years period @ 10.5%. Interest will be paid compounded on quarterly basis.