North East Watch

GUWAHATI, June 11, 2009 – The Union Minister for DoNER, BK Handique, while reviewing the functioning of the North Eastern Development Finance Corporation (NEDFi) recently, asked it to increase its visibility in other north-eastern States through expansion of its various development schemes and initiatives.

The minister also suggested that the recent initiative of the NEDFi on production of handicraft items from water hyacinth be taken up as a large community-based endeavour to serve the dual purpose of generating rural unemployment and eradicating the menace of water-hyacinth as a harmful weed for water bodies.

Revealing this, sources in the NEDFi said that Handique took note of the overall growth of the corporation in terms of sanction, disbursement and recovery besides other developmental initiatives.

“The minister also expressed satisfaction at the study being conducted by the NEDFi on the downstream industries of the Assam Gas Cracker Project. He, however, called upon the NEDFi to expand its growth as a disbursing authority to reach the Rs-1,000 crore mark in the next few years for making a larger impact in the region,” sources said, adding that he assured to look into the need for augmenting the resource base of the corporation on the basis of its detailed business plan which highlighted the emerging sectors for investment in the North-east.

The immediate plans of the NEDFi include setting up of NEDFi Haats in other States for which assistance in terms of infrastructure has already been sought from the respective States.

NEDFi Haat is an innovative platform that has a direct bearing on the grassroots- level artisans, growers, weavers, small manufacturers, etc.

At the end of the financial year 2008-09, NEDFi, with a net profit of Rs 31 crore and net worth of Rs 313 crore, achieved cumulative disbursement of Rs 792 crore against a cumulative sanction of Rs 1,294 crore.

“Its bottom line has been growing at more than 20 per cent in the last few years, and the corporation has started paying dividend from last financial year. It has contributed Rs 27.50 crore to the exchequer by way of taxes during the last three years. In financial year 2009-10, the NEDFi is expected to contribute more than Rs 20 crore in taxes and dividend,” sources said.

Source : Assam Tribune