Excelsior Correspondent
JAMMU, Dec 21: Underscoring the need to ensure hassle free credit to the entrepreneurs coupled with zero default in recoveries, the Minister for Finance and Ladakh Affairs, Abdul Rahim Rather today asked the J&K State Financial Corporation (J&K SFC) to gearup for playing its assigned role in the development of Micro, Small and Medium Enterprises (MSME) and allied sectors for employment generation and growth of the State’s economy.
Speaking at the 228th meeting of the Board of Directors of J&K State Financial Corporation (J&KSFC) here this afternoon, Mr Rather said that Corporation’s contribution in the development of MSME sector in the State has, earlier also, been significant, adding that all the possible logical support would be provided to it for restoring its past glory, provided the Corporation improves its performance upto the mark. “Infact, Government support to every Public Sector Undertaking (PSU) will now be strictly performance linked,” Finance Minister asserted.
The Economic Advisor to the Government, Jalil Ahmad Khan, Financial Commissioner, Finance, Iqbal Khanday, Managing Director, SFC, A.R.Makroo, Divisional Manager LIC, . D.C.Thakur, Sr. DGM, Punjab National Bank (PNB) A.K.Gupta, Dr. Nissar Ali and Shakeel Qalander, AGM, SIDB, Ajun Jain and other concerned officers were present in the meeting.
Mr Rather enjoined upon the management of the SFC to put in place a strong monitoring mechanism to ensure target oriented recoveries which, he said, was imperative for its fiscal health as well as for a sustained credit cycle.
Noting considerable improvement in the performance of the Corporation, Rather announced payment of remaining 34% of 6th Pay revision in favour of the employees of the Corporation, thereby making 6th Pay Commission recommendations fully applicable to the Corporation. Earlier, the Board had released two installments of 33% each in favour of the employees, linking release of the remaining 34% to the performance of the employees.
The Managing Director informed that SIDBI has agreed in principle to restore refinance facility to the Corporation from April 2013, which will restore the credit line of the Corporation on sustained basis. He said with the financial support of State Govt and waiver of SIDBI on account of refinance of Rs. 12.50 crore and IDBI with regard to un-paid dividend of Rs. 7.20 crore, waiver of unpaid dividend by State Govt of Rs. 4.00 crore, the net worth of Corporation has improved substantially to Rs. (-) 10.98 crore at the end of November, 2012 as against (-) Rs. 104.58 crore as at the end of March, 2009.
It was also informed that the Corporation has sanctioned credit to the tune of Rs. 11.40 crore in favour of about 200 entrepreneurs during first seven months of the current financial year besides recovering about Rs. 15.60 crore which constitutes 80% of the assigned target.
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