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In-principle approval was granted for financial assistance to the tune of Rs 112.69 crore for projects in Visakhapatnam, Vizianagaram and Srikakulam.

Visakhapatnam, June 19

The Chairman of the Andhra Pradesh State Finance Corporation (APSFC) said on Monday that the business development campaign launched by the Corporation this month has elicited good response from the entrepreneurs at three centres - Hyderabad, Rajahmundry and Visakhapatnam.

In Hyderabad, the corporation could give in-principle clearance to projects involving an amount of Rs164 crore on a single day for entrepreneurs of Hyderabad, Rangareddy and Medak, Mr Rambabu said after a regional entrepreneurs' awareness seminar here.

At Rajahmundry, the corporation had given such approval for projects involving an amount of Rs 132 crore in East Godavari and West Godavari districts. "Here, we have given in-principle approval to 29 project proposals involving financial assistance of Rs 112.69 crore in the three districts of Visakhapatnam, Vizianagaram and Srikakulam. We have issued sanction letters to 18 entrepreneurs for an amount of Rs. 3.28 crore," he said.

`Great scope'

Mr Rambabu said there was great scope for downstream and ancillary units in and around Visakhapatnam, as several big units were coming up in the future.

The APSFC wanted to fund many projects in this region, he asserted.

APSFC Managing Director Mr Ajeya Kallam said that in most countries, 50 to 51 per cent of GDP was being contributed by the small and medium enterprises (SME) sector.

"The economy can't have a strong foundation unless the SMEs grow. Visakhapatnam is certainly an ideal destination for investments in SME sector," he said.

He said the APSFC was justified in charging interest of 0.5 to 1 per cent more than the banks, as it did not believe in collecting more in the form of hidden charges. "The overall payment is less," he said.

The Chief General Manager, Mr Brahmananda Rao, said such campaigns would be conducted at Tirupati on June 24, Vijayawada on June 28, and again in Hyderabad on July 1. The last one would be held at Warangal on July 3.

(This article was published in the Business Line print edition dated June 20, 2006)
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