inner page
JHARKHAND STATE INDUSTRIAL POLICY 2001
21.0 INDUSTRIAL FINANCE
21.1
The Government appreciates that inadequate industrial finance is biggest bottleneck in the rapid growth of the State. The Government intends to take such measures, which would promote easy flow of finance to industrial units and entrepreneurs.
21.2
The State Government would take steps to set up a new Twin Function Industrial Finance and Infrastructure Development Corporation, which would also provide counselling services to small and medium scale units. The Corporation would be set up with an initial capital of Rs 200 crores with the assistance from financial institutions such as SIDBI/ICICI/IDBI/Commercial Banks etc.
21.3
The State Government shall make efforts to ensure opening up of Regional/ Controlling offices of Banks/ Financial Institutions and posting of senior officials having sufficient delegation of powers to enable speedy credit decisions on the spot.
21.4
The lead banks in their respective districts would take up preparation of "Industrial Credit Plans" at the district level to accelerate the flow of credit to the industry sector with emphasis on SSI, Tiny and Cottage industries, for which separate targets would be fixed.
21.5
The State Government would make efforts to open specialised SSI bank branches in the state to cover all districts having concentration of SSI units, in a time bound manner.
21.6
The State Government shall also invite Private Sector Banks/ Financial Institutions to provide financial services to various industrial units.
21.7
A State Level Inter Institutional Committee (SLIIC) has been consitituted to provide adequate interfacing between State Government and State level Institutions on one side and RBI, Banks and Term Lending Institutions on the other. This committee provides a useful forum for exchange of information and discussion on the problems faced by the small and medium scale industrial units and small entrepreneurs. This commitee also deals with problems relating to co ordination between banks and financial institutions as well as regarding the provision of adequate infrastructure facilities to industrial units, in addition to the general problems relating to grant of credit to such units.
21.8
To facilitate easy flow and recovery of micro credit, financial institutions such as NABARD, SIDBI, Co-operative Banks, Commercial Banks etc. would be encouraged to extend credit to Self Help Groups (SHG) / LAMPS/ PACS. Necessary amendments in the co-operative laws would be made to update such laws to ensure focused attention and achievement of objectives.
21.9
In order to nurse the weak and ailing State PSU's, a special rehabilitation scheme would be worked out. To achieve this, a Special Purpose Vehicle(SPV) would be created with a dedicated Industrial Reconstruction Fund after assessing industry specific requirements. Possibilities of Employees Stock Option (ESOP) would be explored in this regard.
21.10
The State Government would set up a Technology Upgradation Fund in the form of venture capital. This fund would be set up with the assistance from RBI/IDBI/SIDBI/other Financial Institutions and Commercial Banks. This fund would be released on a selective basis under the recommendation of a High Level Committee for improving the technology/modernisation of such industries which are using out-dated technology but can become competitive if new technology is inducted.
21.11
To speed up recovery of overdue debts of banks/financial institutions, a Defbt Recovery Tribunal shall be set up.
21.12
The State Government would take steps to notify all District Headquarters as notifying centres for creation of equitable mortgage.
21.13
To increase the flow of credit, banks would be exempted by the State Government from paying the filing up front fee with respect to Public Demand Recovery cases under Public Demand Recovery Act. Such filing fee shall be the first charge from the Public Demand debtor.
21.14
The State Government would take necessary steps to facilitate empowering of the commercial banks and funding institutions to ensure speedy and expeditious recovery of the credit extended.
