Business

Kinfra gets Rs.14 crore for non-conventional energy products park

Thiruvananthapuram: Finance Minister T.M. Thomas Isaac has allocated Rs.14 crore for Kerala Industrial Infrastructure Development Corporation (Kinfra) for setting up a non-conventional energy products park during the current year.

He has also earmarked Rs.50 crore for modernisation and restructuring of public sector units (PSUs), drawing confidence from the increase in the number of such units.

He said the number of profit making units had gone up from 12 to 24.

The PSUs will have a net profit of Rs.20 crore during 2007-08, as against a total loss of Rs.90 crore incurred in 2005-06.

Dr. Isaac said an institution on the lines of the Board for Industrial and Financial Reconstruction (BIFR) would be established in the State to look into revival of sick private sector units, particularly small and medium enterprises (SMEs).

The Kerala Financial Corporation (KFC) has been allocated Rs.20 crore as part of attempts to reduce its non-performing assets (NPA).

Dr. Isaac said the main hurdle faced by KFC in mobilising capital to fund SMEs in the State was its NPA, which was 55 per cent of its total assets.

He planned to reduce this to 35 per cent through a one-time settlement scheme.

The NPA would be brought down further to 10 per cent by increasing its share capital.

These measures would put the KFC in a position to raise resources through bonds and other means, he said.

Dr. Isaac allocated Rs.10 crore for expanding the share capital base of the Kerala State Financial Enterprises (KSFE) in order to effectively use it as an instrument to mobilise resources.

As part of this, 41 new branches would be opened across the districts, he added .

He also promised to turn his attention to revamping the State Insurance Department on commercial lines during 2008-09.

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