GSFC will join hands with Israel for export projects

Gujarat State Financial Corporation will enter into a number of export projects with Israel in the field of castor oil, denim, cottom propylene sheets, marbles and paints. During a visit to Geneva and later on to Israel, GSFC chairman I.K. Jadeja met Mr. Abraham Yehuda, chairman of Israel Asia Group, to discuss business prospects with Israel.

While the GSFC will look for Gujarati industrialists and entrepreneurs engaged in these fields and who will probably carry out export activities, the Israel Asia Group will also send their entrepreneurs for giving a boost to leisure industry in Gujarat. Mr. Jadeja said these entrepreneurs are keen on putting up snowpark in Ahmedabad. The snow, to be produced by machines, will be a pleasant sight for children in Ahmedabad, Mr Jadeja said.

In this regard, GSFC will send a list of genuine machinery manufacturers and suppliers, who would assist the Israel Asia Group in manufacturing the machines. For this purpose, GSFC will approach those suppliers who are already supplying machinery to other countries.

Mr. Yehuda is also keen on learning the Green House technology from Gujarat and has shown willingness to invest in Israel and Gujarat respectively in the ratio of 51:49 in respect of crops, flowers and fruits, said Mr Jadeja. The group has also asked for specimen of sesame seeds (both white and black) being manufactured in Gujarat.

The Geneva convention, which was held to discuss patenting of products particularly in view of World Trade Organisation's agreement was also attended by chairman I.K. Jadeja and managing director S.K. Nanda.

At home in India, the GSFC, with due consideration of the fact that the small-scale industry sector is still reeling under effects of recession, has lowered its interest rates by two to three per cent for loans taken prior to August 31, 1999. The facility expected to "refinance" sick units, also encompasses refund of the interest amount paid before August 31 by these units at original rates.

However, this refund facility is subject to certain conditions and will be available to only those units who approach GSFC. "The offer is only for sick units and not for the entire industry," said the chairman. Among other conditions for availing this facility is that the units should have been paying interest regularly since last two years. The corporation will asses each case individually before granting them the facility. Between April and August 1999, the GSFC's aggregate loan sanctions are estimated at Rs. 9,656 crores and its loan recoveries have been Rs. 14,201 lakhs.

As some of the broad pointers for future prospects, GSFC has also decided to extend loan assistance for construction of commercial complexes, show-rooms, sales outlets, departmental stores, shopping malls and tourist homes. Having decided to promote commercial education in a major way, GSFC will also aid the formation of human capital in the field of information technology, software, internet and e-commerce. GSFC, which granted financial assistance for the entertainment complexes like City Pulse multiplex in Ahmedabad will also furnish loans for setting up vocational training centres, coaching classes, convention centres and also for purchase of vehicles forming a part of the original project cost in an industrial concern.

According to Mr Jadeja, the improvement in the economy of the country, which promises seven per cent growth, is expected to lead to a better recovery performance. While GSGC is targeting recovery of Rs.500 crores, the corporation is also contemplating to raise Rs.100 crores by issuing bonds. The industrial sector in Gujarat is experiencing a shift from engineering and paper industry to service-based industries. To cap this trend, GSFC will also grant financial aid in support of these industries. It has sought permission from the union government for funding resort projects in the union territories of Daman and Diu, adjoining the coasts of Gujarat.

The Corporation has also floated the Silver Lining Scheme aimed to deliver assistance to scheduled tribes and scheduled castes and for introduction of new products for handicapped persons. GSFC also aims to organise seminars for developing entrepreneurial skills in specific industries such as food, fishery, software and ayurvedic medicines.

GSFC is one of the approved agencies for getting refinance from SIDBI, a nodal agency for the Technology Upgradation Fund Scheme for the textile industry, launched by the Centre.

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Compiled from local news media