Guwahati, Dec. 17: Alarmed at the increasing number of non-performing assets, the board of directors of North Eastern Development Finance Corporation Ltd. (NEDFi) has decided to take action against defaulters
The board has decided to take recourse to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, passed recently. Under the act, a financing institution can take over the assets of defaulting units. Action under this Act has already been initiated against a tea-processing unit and a cold-storage project.
In view of the amendment of the North Eastern Council Act to include Sikkim under its purview, the board has decided to extend its operation to Sikkim, which has a lot of potential for tourism and power-based industries.
NEDFi?s actual operations in Sikkim will start only after the decision is approved by its shareholders in the annual general meeting. Since all the incentives of the North Eastern Industrial Policy will be equally applicable to Sikkim, the state will be a good option for investors setting up new industries.
However, the actual NEDFi?s actual operations in Sikkim will start only after the decision is approved by its shareholders in the annual general meeting. The board has also decided to strengthen NEDFi?s branch offices by inducting officers on deputation from other states. This the states adopt a co-ordinated approach for the development of the region.To finance entrepreneurs at competitive rates, NEDFi has already decided to reduce its prime lending rate by one per cent with effect from January next year.