JK imports Rs.35,000 cr goods, services annually: FinMin
SFC COMES OUT OF RED
GK NEWS NETWORK
Srinagar, July 20: Minister for Finance, Abdul Rahim Rather today said that Jammu and Kashmir despite having strong resource base imports goods and services worth Rs 35000 crore annually from other states.
Speaking at the 52nd Annual General Meeting of the SFC held at Banquet Hall Srinagar, Rather enjoined upon the State Financial Corporation (SFC) to play its assigned role of lending to MSME in the state to promote manufacturing activities and economic development in Jammu and Kashmir.
The minister who is also the chairman of the Corporation, said that at the National Level the MSME sector is playing a significant role in the economic development of the country adding that it contributes about 8 percent to GDP and 45 percent output to manufacturing sector.
“However in J&K, the MSME sector has got derailed due to prolonged disturbance as most of the SFC Financed Units got closed after losing their financial viability”, Rather said adding that this sector needs a strong lending support by the banks & other financial institutions to exploit its about Rs 10,000 crore untapped investment potential in the fields of tourism, power, horticulture, floriculture, handicrafts, Indian System of Medicines, Fisheries etc.
He said in consonance with developmental goals at National Level and underlining objective of the States’ 12th Five Year Plan ‘2012-2017’, the credit flow for MSME & cooperative sector shall be on forefront of financial measures of the State.
He said that in order to utilize the natural & human resources of J&K profitably, the financial institutions and banking network in the State have to ensure adequate lending facilities to encourage growth of successful entrepreneurs and to help the State to overcome the grave problems of unemployment of its educated youth.
Economic Advisor to Government, Jalil Ahmed Khan, Principal Secretary, Finance, B. B. Vyas who is also Principal Secretary, to Chief Minister, Assistant General Manager, SIDBI, Anuj Jain, MD J&K, SFC, A. R. Makroo and concerned shareholders were present in the meeting.
Recalling the excellent role played by the J&K SFC in the past to promote MSME sector and Nursing the first generation entrepreneurship in the State Rather said it was heartening that the corporation is now again back in business and has restarted its main activity of lending adding that it has also re-entered in the MSME sector.
He said during the last four years since its revival from March 2010, the corporation has sanctioned loans to the tune of Rs 66.69 crore and made disbursement of 49.93 crore. He said the fresh lending and improved recoveries have resulted into improving its standard portfolio from 10 percent as on 1st April 2009 to 51 percent as on 1st April 2013.
Rather said that prior to the implementation of its revival plan in March 2010, this premier financial institution had lost all its business and had descended to a huge negative net worth of over Rs 104.78 crore and it was in default to its supporting institutions to the extent of Rs 180.40 crore.
He said the work of audit of its accounts had hit a backlog of six years. “ But today with the adoption of the audited accounts for the year 2011-12 , the Corporation shall be clearing 7 annual accounts in a period of four years,” Rather added.
He said the income of the corporation has increased from Rs 5.74 crore in 2008-09 to Rs 9.39 crore during last fiscal.
Lastupdate on : Sat, 20 Jul 2013 21:30:00 Makkah time
Lastupdate on : Sat, 20 Jul 2013 18:30:00 GMT
Lastupdate on : Sun, 21 Jul 2013 00:00:00 IST
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