The Hindu Business Line : Govt moves to recast KSFE

The State Government has decided to reorganise Kerala State Financial Enterprises (KSFE) with an emphasis on modernisation of the company and expansion of its area of activities.

The Finance Minister, Dr Thomas Isaac, said here on Wednesday that the company would be given autonomy in the matter of implementing the proposals contained in its annual budgets without again seeking the approval of the Government. This would bring about significant changes in the working of KSFE.

The reorganisation would vest the company with functional autonomy as also with more financial powers, which would help it open more branches, speed up computerisation process and avoid roadblocks and delays in taking up important development works.

The company would also be in a position to take professional decisions on its day-to-day functioning while remaining within the overall policy framework of the Government, the Minister noted.

Rich dividends

He said that while the paid-up capital of the company was only Rs 10 crore, it had so far contributed Rs 248 crore to the State’s exchequer by way of guarantee commission, service charge and dividend. It has also given Rs 175 crore to the Centre as income tax.

The total income of KSFE in 2005-06 was Rs 3,900 crore, which went up to Rs 5,500 crore in 2007-08. There had been significant growth in chit business over the last two years. At present, the total monthly chit amount is Rs 235 crore as against Rs 110 crore last year.

During the current year, the company has targeted a turnover of Rs 6,500 crore and a monthly chit amount of Rs 395 crore. It is also implementing a ‘Vision 2010’ action plan with the objective of taking the turnover to Rs 10,000 crore by that year.

New offices

The Minister said that two new regional offices of KSFE would be opened in Kottayam and Kannur in addition to the five existing regional offices in Thiruvananthapuram, Kollam, Ernakulam, Thrissur and Kozhikode.

With the opening of the new regional offices, there would be reorganisation of the districts and branches under the regional offices, he added.

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