The Hindu Business Line : Goa EDC charts out revival plan

Turnaround hopes
EDC registered Rs 11 lakh PBT last fiscal compared to accumulated losses for previous five consecutive years.
It has taken up development, sale of prime plots to wipe out losses.
To increase asset base to Rs 400 crore by 2009

Panaji , Nov. 9

Saddled with huge non-performing assets for over five years, Goa EDC Ltd has embarked upon a major restructuring and revival plan. The over 30-year-old apex state financial institution plans to act as a low-interest delivery channel for infrastructure development schemes of the Government by financing State Government corporations and departments.

The EDC's roadmap for revival is to reduce the non-performing assets (NPAs) to single digit by increasing the standard asset base by creation of quality assets through Government infrastructure financing by 2008-09.

A beginning has been made during the current year by entering into infrastructure development lending by sanctioning Rs 80 crore to Goa State Infrastructure Development Corporation Ltd.

In the first six months, EDC has reached Rs 100 crore sanction figure for advances. "Apart from lending for Government agencies, it also continues to finance sectors such as hotels, real estate, shipping and pharma," the Managing Director, Mr W.V. R. Murthy, told Business Line on Wednesday.

To begin with, in the last financial year ended March 2006, EDC has made a Rs 11 lakh profit before tax in contrast to accumulated losses for previous five consecutive years, said Mr Murthy.

Mr Murthy exudes confidence that the institution is being nursed back to financial health.