KSIDC identifies new verticals for lending

Thiruvananthapuram: The Kerala State Industrial Development Corporation has identified five new potential sectors for financial assistance, namely logistics, infrastructure, media & entertainment (infotainment), knowledge centers, and retailing as additional sectors for extending financial assistance.

KSIDC managing director Alkesh Sharma said the industrial and service sectors appeared to be the most promising sectors in the state, prompting the corporation to lay special emphasis on long term lending for those sectors. He said the interest rates would be fixed, based on the existing credit-rating mechanism, and that the primary security of the project’s fixed assets would be taken in all cases.

The actual moratorium period and the repayment period of the loan would be fixed on the basis of the expected cash flows in each case, and within the overall norms outlined for each sector.

KSIDC officials Kerala was on the point of take off in respect of several projects having potential for logistics sector development, and that there would be a major demand for container freight stations and other logistics requirements with the commissioning of the Vallarpadam international container transhipment terminal. KSIDC also has plans to set up the Kochi-Coimbatore and Kochi-Mangalore industrial corridors in order to develop industrial regions and industrial areas in the state.

KSIDC will offer its clients in all sectors, the option of using either traditional fixed interest rate (FIR) method or the telescopic interest rate (TIR) method for the term loans availed by them. Officials said the intention of the TIR scheme was to give meaningful support to new units in the early years of their operations.

In 2009-10, KSIDC had an increase of over 25% in net revenue. According to unaudited figures, the corporation earned a profit of Rs. 24.20 crores and sanctioned financial assistance worth Rs 73.35 crores during the past year.