The Hindu Business Line : APSFC to lend Rs 132 cr to industries in 3 dists

Visakhapatnam June 12 The Andhra Pradesh State Financial Corporation (APSFC) has given in-principle approval to finance 41 project proposals entailing financial assistance of Rs 132 crore in the three north-coastal districts of Visakhapatnam, Vizianagaram and Srikakulam.

At a business development campaign here on Tuesday, Mr J. Rambabu, Chairman of the corporation, said the three districts had high growth potential and entrepreneurs should come forward to avail themselves of the assistance to be given by the APSFC. Mr A. Giridhar, Managing Director, said that during the current financial year, the APSFC had set a target of giving Rs 900 crore as loans to industrial units. The APSFC had maintained its premier position among all the State financial corporations for the sixth year in succession in terms of loan sanctions, disbursement and recovery.

He said a similar campaign had been conducted in Hyderabad on June 7, covering Rangareddy, Medak and Nizamabad districts. The corporation will conduct similar campaigns in Rajahmundry on June 14, covering the two Godavari districts, and in Vijayawada on June 18 covering Krishna, Guntur, Prakasam and Khammam districts.

On June 20, a campaign would be held at Tirupathi covering the districts of Chittoor, Kadapa, Nellore and Anantapur and again in Hyderabad on June 26 covering Hyderabad, Nalgonda, Karimnagar, Warangal, Adilabad, Kurnool and Mahabubnagar.

Right approach

Mr P.S.R. Raju, Managing Director of Gishan Steel Castings and Forgings Private Ltd, said the APSFC should adopt the right approach in giving loans to SMEs and should avoid levying penalties as far as possible.

He complained that even in cases where the payment was on time and prompt, penalty was being collected.

Mr B.V. Rama Rao, Managing Director of Swarnandhra Jute Mill in Srikakulam district and the president of the Federation of Andhra Pradesh Industries, said loans should be given by the APSFC to entrepreneurs, taking agricultural lands as collateral security.

In certain cases, he complained, 200 per cent collateral security was being sought, which was quite unreasonable. He pleaded for the revival of the many sick units in the State and in the three districts.

Mr G. Mallayya, Managing partner of the G. Mallyya Steels in Visakhapatnam district, complained that he had applied for a loan to a soyabean project in 1997 and till date it had not been approved.

Mr Chandrasekhar, another industrialist, said the loan appraisal system of the APSFC should be reviewed. Mr M. Ramalingam, Vizag branch manager of the APSFC, and several others spoke.

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