Kerala Govt package to revive sick units

Kochi, July 31: The state-owned Kerala Financial Corporation (KFC) will introduce a revival package, including a One Time Settlement (OTS) scheme, to reopen sick units in its portfolio, State Finance Minister T M Thomas Issac said today.

Inaugurating a 'Clientele Meet' of the KFC here, Mr Issac expressed concern that nearly 70 per cent of the 40,000 units funded by the KFC had become sick and were closed down.

Setting the revival of these sick units as the primary target of the KFC, Mr Issac exhorted the Corporation to facilitate the reopening of at least 500 of the sick units in the next six months.

The yardstick for the KFC performance would be not how much money it disbursed but how many units it helped to open and how much employment it facilitated, the minister said.

Mr Issac urged the entrepreneurs to prepare rehabiliation or diversification schemes and submit these to the KFC. The proposals will be vetted by an eminent panel of industry experts, to be constituted by the Corporation shortly.

''Deserving units would be provided consultancy, technical expertise, financial assistance and hand holding for some time,'' he said.

The One Time Settlement (OTS) scheme will include rescheduling and restructuring of past liabilities, waiver of penal interest, reduction of interest on past borrowings and rescheduling of the repayment for units found to be viable, he said.

Corporation Chairman Sushil Khanna said the KFC would like to play the role of a Development Financial Institution in Kerala. It was working towards closer cooperation with the Small Industries Development Bank of India (SIDBI) and leading banks such as the State Bank of Travancore (SBT) for consortium financing.

Stating that the Corporation would give a new thrust for the revival of the sick units in its portfolio, Mr Khanna said the KFC would provide 'Escort Service' to the viable units and liaise with government agencies for getting license, certification, clearances and power connections for them.

Also present on the occasion were KFC Managing Director P T Nandakumar, Prof K V Thomas, MLA and Kerala Chamber of Commerce and Industry President E S Jose.

UNI