HSIIDC enhances term loan limit to Rs 25 crore

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Chandigarh, Oct 10 (UNI) In view of a persistent demand from the entrepreneurs, Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) has decided to enhance its term loan limit per company to Rs 25 crore in place of the existing limit of Rs 15 crore.

Giving this information here today, a spokesman of the HSIIDC said, "Of late, it has been observed that the companies are being compelled by the changed circumstances to set up bigger projects to achieve economy of scale. It has led to increase in their cost of project resulting in their increased credit requirement." Further, in view of the substantial increase in the real estate business, the Corporation, which provides financial assistance to the industrial units in Haryana through its various schemes, has been receiving various proposals of financing commercial complexes, wherein the project cost is more than Rs 30 crore, he added.

He said that despite poor off take of financial assistance by the companies from the commercial banks during the current financial year, HSIIDC had mobilised business to the tune of Rs 164.83 crore in first six months through business meets at Delhi and Manesar and term loans of Rs 56.83 crore had been sanctioned as compared to sanctions of Rs 25.90 crore during the same period in the previous year.

Disbursement of loans of Rs 17.40 crore were made in the first six months as against disbursement of Rs 9.28 crore during the corresponding period last year.

He said that total recovery effected during the period out of accounts classified as standard assets was 91.86 per cent of dues and Rs 5.18 crore had been recovered out of Non-Performing Assets.

The Corporation had incurred an expenditure of Rs 940.42 crore on the development of industrial infrastructure in the State which is significantly higher than an expenditure of Rs 841.63 crore during the previous year. Recovery from allottees during the current year much higher at Rs 752.86 crore as against Rs 252.98 crore during the previous year.

He said that the Corporation had also decided to reintroduce the policy for compromise settlement of chronic Non Performing Assets (NPAs) of the Corporation. The cut-off date to recover the NPAs had been retained as March 31, 2004 in place of March 31, 2002 in the old policy so as to enlarge the scope for reducing the NPAs to the maximum extent. The new scheme would be valid till December 31, 2007.

UNI

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