ORISSA STATE FINANCIAL CORPORATION (OSFC)
State Financial Corporation was set up in 1956. It provides loan assistance
for setting up of industries in the small and medium scale sectors and
also medium scale. Besides, loan assistance is also provided for certain
other activities like transport, hotel, nursing home, mining equipment
construction equipment etc. Since its inception in 1956 till 2000-2001
(as on 31.08.2000), the Corporation has sanctioned Rs.1245.61 crores to
44374 no. of units and has disbursed Rs.1081.32 crores to 25932 units.
Activities and performance of the Corporation are as follows :The achievement of the Corporation in the fields of sanction, disbursement and recovery during different block periods from 1980-81 to 2000-2001 (up to August) is given below :
The Corporation has rendered financial assistance to the industrial units which have been affected by the cyclone/floods of October 1999 under Special Refinance facility for cyclone/flood affected units of Orissa. So far the Corporation has sanctioned Rs.25.17 crore to 339 units and have disbursed Rs.17.10 crore to 271 units.
Creation of New cells
Keeping in view the changed economic scenario, the Corporation has opened the following cells for the benefit of the entrepreneurs:
i) Technology Bureau of International Industrial Partnership (TBIIP) :
The focal point of Orissa for UNIDO-TBIIP Projects is functioning since January 1999 in the "Technology Cell" of OSFC at IPICOL House, Bhubaneswar. This focal point has developed 20 projects as on 05.08.2000 and is planning to organise an international business meet at Bhubaneswar during the current financial year. Inspection of industries for developing the project for international business partnership is also being conducted regularly.
ii) Technology Bureau of Small Enterprises (TBSE) :
This is a joint venture project of Asia Pacific Centre for Technology Transfer and the SIDBI. The objectives are technology upgradation to small scale industries, sourcing of technology and quality improvement, if necessary, with overseas collaboation. The Corporation has created a TBSE Cell in order to pass on the benefits to the industrial units in the State.
With the changing scenario of industrial development consequent on the ever changing consumer tastes, the pace of technological innovations also takes place at an accelerated rate. To cope up with this, the entrepreneurs are required to take up high risk ventures.
Venture capital is an equity or equity-featured capital seeking investment in new ideas, new components, new products, processes and services that offer the potential of high returns on investment. It may also include investments in turn-around situations.
OSFC has taken steps to promote a subsidiary Public Limited company in the State of Orissa in order to hold funds in trust and invest the same as Venture Capital in the eligible industrial companies in the State. The trust fund is being placed with the Company by the Orissa State Government, OSFC, SIDBI, OSEDC, Banks etc. The Registrar of Companies, Orissa has now allotted the name "Industrial Investment Trust Company of Orissa Ltd." to this proposed company.
Focus areas for the fund will be the upcoming industries such as software and information technology industries, high value addition mineral based units, fine chemicals, food processing or any other high growth oriented and profitable venture in the Small and Medium scale sector.
Investment by the venture fund would vary from case to case. The size of the investment in individual unit will be in the range of Rs.10 lakh to Rs.100 lakh.
The Corporation has undertaken massive upgradation of its computer systems with an investment of Rs.120.00 lakh. These include :-
The authorised share capital of the Corporation is Rs.100 crore. The paid-up share capital as on 31.08.2000 is Rs.87.57 crore. In addition to this, the Corporation has availed of loan in lieu of share capital from the State Government and the IDBI on matching basis, which stands at Rs.12.45 crore as on 31.08.2000.
Profit and Loss Position :The Profit and Loss position of the Corporation is given below :
With a view to improve the financial position of the Corporation in the wake of the changing economic scenario the government was requested to :-