KSIDC Beats COVID Blues, Profit After Tax Jumps 62 percent

Despite the overall stressful economic situation owing to the COVID-19 pandemic, the Kerala State Industrial Development Corporation managed a stellar performance in the first three quarters of the current fiscal.

MG Rajamanickam, IAS, MD Kerala State Industrial Development Corporation Ltd (KSIDC) 

The 325th Board meeting of KSIDC held on 22.01.2022 considered the business performance of the Corporation for the first 9 months ended of the current fiscal, until December 31, 2021.

Profit after tax for the first 9 months in the current fiscal is Rs 35.61 crore, an impressive rise of 62 per cent from the Rs. 21.91 crore profit after tax in the first three quarters last year.

The sanctions, loan collections and operating profit in the first 9 months this fiscal were all higher than in the comparable period of the previous year. Sanctions went up from Rs. 154.57 crore in the first 9 months of 2020-21 to Rs 213.10 crore in the first 9 months of 2021-22.

Similarly, loan collections (Rs. 94.39 crore) and operating profit (Rs. 43.01 crore) were higher in the first 9 months of this year, than loan collections (Rs. 54.89 crore) and operating profit (Rs. 27.31 crore) in the comparable period of last fiscal. Disbursements in the first 9 months of this fiscal was Rs 159.67 crore.

Importantly, KSIDC could achieve an investment mobilization of Rs 559 crore and generate 1,547 jobs during the period under review.

The Board meeting held on January 22 approved 5 projects at investment outlay of Rs. 185.5 crore and sanctioned loans of Rs. 99.25 crore. These projects together offer 791 direct jobs.

CM's Special Assistance to Investors

Taking firm steps to emerge as one of the most investment-friendly states in the country, Kerala has devised the Chief Minister's Special Assistance program for providing subsidized investment capital for entrepreneurs. The CM's Special Assistance program is focusing on MSMEs, start-ups, and non-resident Keralites returning home for setting up enterprises.

The Kerala State Industrial Development Corporation (KSIDC), the premier investment promotion agency of the state government, will handle the scheme under the CM's Special Assistance program.    

KSIDC plans to disburse a minimum of Rs. 250 cr targeting around 500 entrepreneurs under the scheme. The project would have the potential to generate 3,000 employments directly.     

Under CMs Special Assistance Scheme KSIDC will provide term loan assistance subject to a minimum of Rs 25 lakhs to a maximum of Rs. 2 cr for MSMEs and Startups. The effective interest rate for the loan would be 7 per cent as the state government plans to provide a 3 per cent interest subvention as part of providing an investment subsidy.

The promoters of green-field ventures and existing enterprises within Kerala are eligible for the loans under the CM's Special Assistance program. Processing/upfront fee will not be charged for loans up to Rs 1 crore. Those applying for the loan should have a good CIBIL Score above 650. The scheme is open to all entities including partnerships, proprietorship, and company, etc.

Persons in the age group of 18-50 are eligible for the loans. Relaxation of five years would be provided for women, SC & ST, and NRK applicants.

Promoters of the ventures should hold a minimum of 20 per cent of the investment. The repayment period of the loan is five years. A moratorium of one year will be provided for repayment. But interest repayment is mandatory during the moratorium period.