HSIIDC shows profit growth of over 63 per cent

Chandigarh, Aug 17 (UNI) The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) Ltd has registered an ''unprecedented'' increase of 63.79 per cent in its profit during 2005-06.

Mr M L Tayal, Principal Secretary to the Chief Minister and HSIIDC Chairman said the Corporation had contributed its high growth trajectory and maintained a consistent record of gross profit of Rs 29.43 crore against the earlier record of Rs 17.98 crore during the previous year.

The gross income during the year has also exceeded the target and touched a figure of Rs 44.80 crore as compared to Rs 35.57 crore during the previous financial year, Mr Tayal said after a meeting of the Board of Directors held here today.

In the wake of the Corporation's impressive performance, the Board of Directors also decided to pay a dividend of Rs 2 crore to the state government which was an all time high dividend paid by the Corporation so far.

The term loan activity of the Corporation also achieved a significant growth during this year, he said.

The Corporation sanctioned term loans to the tune of Rs 100.40 Crore as against Rs 53.42 crore in the previous year.

The recovery of loans during this year was Rs 94.68 as compared to Rs 85.67 crore in the previous year.

HSIIDC Managing Director Rajeev Arora said the Corporation, which had recently been rechristened, had incurred an expenditure of Rs 841.63 crore on the development of industrial infrastructure in the state which is a quantum jump from an expenditure of Rs 206.39 crore during the previous year.

This includes an expenditure on land acquisition to the tune of Rs 751.57 crore which was just Rs 78.80 crore in the previous year.

The Corporation has drawn an ambitious plan for setting up new industrial estates and infrastructure projects for which a land bank of about 15,000 acres is being created.

Prominent amongst these projects are: KMP Expressway, Industrial Model Township Faridabad, expansion of IMT Manesar, Transport Hub at IMT Manesar, expansion of Rai, Barhi and Barwala industrial estates, development of petrochemical hub at Panipat and the development of residential sectors at IMT Manesar and Sonipat.

In another significant decision, the Board also approved the reintroduction of the policy for compromise settlement of chronic Non-Performing Assets (NPAs) of the Corporation. The cut-off date to recover the NPAs has been fixed as March 31, 2004 in place of March 31, 2002 so as to enlarge the scope for reducing the NPAs to the maximum extent.

The new scheme would be valid till December 29, 2006, Mr Arora said.

UNI MA VJ BD2006