GUWAHATI, May 12 ? North Eastern Development Finance Corporation Limited (NEDFi) has succeeded in complying with the Prime Minister?s directive on disbursing at least Rs 50 crore per year during the last two fiscal years. The Chairman-cum-Managing Director (CMD) of the NEDFi, Sri JP Saikia yesterday informed that the Prime Minister during his visit to North-East in January, 2000 had announced that the Corporation would disburse at least Rs 50 crore a year. Though it meant 240 per cent increase in its operation yet NEDFi achieved the target by releasing Rs 50.46 crore during 2000-01 and Rs 50.79 crore during 2001-02 ?without compromising on quality of lending.? The CMD informed that NEDFi?s net recovery rate for the year 2001-02 increased to 74 per cent from 72 per cent in the previous year while the non-performing assets (NPA) could be controlled to the extent of 98 per cent in the last financial year.
However, the recovery rate could have been much better as in four States of the region the rate of recovery in the last financial year was below 35 per cent. It is lowest at 29.10 per cent in Tripura followed by 27.17 per cent in Mizoram, 32.97 per cent in Manipur and 34.43 per cent in Nagaland. However, outstanding recovery rate in Meghalaya (95.68 per cent), Arunachal Pradesh (82.93 per cent) and Assam (78.82 per cent) contributed immensely in improving the overall net recovery rate for the entire region. The CMD said acute law-and-order problem in Tripura, Manipur and Nagaland was partly responsible for low loan recovery rate in those States. He said in order the tackle the problem of low recovery, the only ISO 9002 financial institution in the NE was now shifting its focus from individual lending to community lending through self-help groups (SHGs) and NGOs. He attributed the very high recovery rate in Meghalaya to outstanding co-operation from Meghalaya Government which has introduced single-window clearance system for quick implementation of projects, and made available sufficient power to industries in that State at a very cheap rate of Rs 1.80 per unit.
He informed that most of the NEDFi-assisted projects in sectors like IT, steel and ferro alloys, cement, pharmaceuticals, etc, were doing excellently in Assam and Meghalaya. He said most of the big projects were coming to these States because of the conducive atmosphere and better infrastructure. Therefore, to maintain the parity in distribution of loans among all the NE States, the NEDFi is focusing of assisting more and more micro projects in agriculture and allied sectors in other north-eastern States. The NEDFi chief said that the New Industrial Policy which offers lucrative subsidies on excise duty, corporate income tax, transport cost, etc., had made NE the most attractive investment destination in the country. In order to showcase the investment potential of the region, NEDFi is organising an investors conference in Administrative Staff College here on May 30 where different State governments of the region will be given the opportunity to highlight their strength before prospective investors.
This seminar will be followed up by organising another seminar in Mumbai in association with Indian Chambers of Commerce and Department of Development of north-eastern region. Stating that NEDFi with its small equity base cannot be panacea to all the problems in the NE region, Sri Saikia said suitable contribution from other development agencies would go a long way in helping the NEDFi play its catalytic role.
Meanwhile, after testing success in IT park in Guwahati, NEDFi is planning to set up another IT park at Agartala for which Tripura government has already provided a spacious building free of rent. As the prospective investors showing interest in setting up ventures within a secure and well-equipped industrial park, the NEDFi is planning to set up an industrial park at Guwahati for which spadework has already been started. The Export Promotion Industrial Park at Amingaon, here and the industrial park at Burnyhat in Meghalaya are now left with no space for setting up new industrial units.
Meanwhile, the NEDFi has set up its branch offices in all the State capitals of the region for ready disposal of loan applications and extend help to local entrepreneurs almost at the their doorsteps. Since its inception in 1996-97, NEDFi has so far disbursed Rs 137.75 crore assistance for total 303 projects in the seven north-eastern States. Out of this, the highest amount of Rs 86.68 crore was distributed among 143 projects in Assam. An amount of Rs 21.51 crore was disbursed for 25 projects in Meghalaya, Rs 7.86 crore for 14 projects in Arunachal Pradesh, Rs 6.60 crore for 45 projects in Manipur, Rs 7.37 crore for 44 projects in Nagaland, Rs 4.66 crore for eight projects in Tripura and Rs 3.07 crore for 24 projects in Mizoram.
Under its micro finance scheme which was launched in 1999 to reach out to the grassroots, NEDFi has so far disbursed Rs 3.30 crore for activities covering piggery, fishery, agriculture, farm implements, auto vans, dress making and other rural industries. So far a total 4,261 beneficiaries including 45 per cent women have been covered under the scheme. Out of the beneficiaries, 56 are NGOs and 460 SHGs. The NEDFi CMD called upon the media to help building of positive image of the NE outside as the situation in the ground was improving a lot. ?With investors being lined up, a little bit of image-building will definitely help the region to become an ideal destination for investors,? he said while informing that NEDFi has been in constant touch with NE State governments to walk out a concerted ?sell NE? strategy.