KSFC mulls setting up steel park at Koppal
Bangalore, Aug 25: The state-owned Karnataka State Financial Corporation (KSFC) is actively considering to set up a steel park at Koppal, Deputy Chief Minister B S Yediyurappa said today.
Talking to newspersons here, he said a detailed project report was being prepared to set up the park, which would add value to the iron ore available abundantly in the area.
He said the park would come up in 190 acres of land and steps were already on to acquire the land required for the purpose.
The report was expected to reach the KSFC in another three months, he said.
Mr Yediyurappa said the KSFC had also taken up infrastructure development projects and had decided to set up industrial parks, involving 25 acres, in Mysore and ten acres in Harohalli.
To a question, he said the government would give Rs 300 crore in next two years to the KSFC in the form of capital to take up measures to build up the institution.
The state government had already given a guarantee of Rs 600 crore to swap high cost borrowings of the Corporation, of which Rs 300 crore was raised in the form of bonds in the first phase and some of the high cost liabilities were cleared achieving an interest savings of Rs 18 crore.
He said the Corporation earned a profit of Rs 17.32 crore in 2006-07 as against the profit of Rs 8.56 crore in 2005-06. The net Non Performing Asset (NPA) was brought down from 58 per cent during 2003-04 to 33 per cent in 2006-07. It would be further brought down to 20 per cent by end of 2007-08.
He said to enable small entrepreneurs, with loans of Rs 10 lakh and below from the KSFC, to exit from their debt liabilities, a special One Time Settlement scheme was introduced.
Of the 18,000 eligible entrepreneurs, 2500 had availed the scheme so far and the scheme would be in force for another three months.
He said the government had already introduced a separate interest subsidy scheme for scheduled caste entrepreneurs.
Under the scheme, the beneficiaries were required to pay interest of four per cent on the term loans sanctioned by the KSFC and the remaining interest amount would be borne by the government.
The government had already released Rs two crore for the scheme during this year, he added.
He said the KSFC proposed to sanction Rs 490 crore, disburse Rs 400 crore and recover Rs 600 crore during this year.