'We play catalytic role in creating industry in NE'
NEDFi disburses more industrial loans in North Eastern region than any other commercial banks. While talking to ET, NEDFi's chairman and MD K N Hazarika explained how much of Dr Manmohan Singh's dream was fulfilled.
By Shantanu Nandan Sharma, ET Bureau |
While presenting his annual Budget in 1995 as the finance minister of India, Prime Minister Dr Manmohan Singh announced setting up of a development bank called North Eastern Development Finance Corporation (NEDFi) to fuel industrialisation and nurture enterpreneurial spirit in one of the most industrially backward pockets of the country���NE region.
Now, NEDFi is a leading financial institution in the country disbursing more industrial loans in North Eastern region than any other commercial banks. While talking to Shantanu Nandan Sharma, NEDFi���s chairman and MD K N Hazarika explained how much of Dr Singh���s dream was fulfilled, and what more are to come next. Excerpts:
Have you been able to fulfil Dr Manmohan Singh���s dream of initiating industrial development of the NE region by creating a development bank?
Yes. According to its mandate, NEDFi plays a catalytic role in creating entrepreneurship and generate synergy for economic activity in the region. Over the last 14 years, NEDFi has grown manifold in terms of operations, and its cumulative loan sanctions today stand at about Rs 1300 crore. From an average lending of Rs 25 crore in the initial years, NEDFi has now an average annual lending of more than Rs 200 crore. We have been able to generate total capital investment in the region of around Rs 4,500 cr and created direct and indirect employment of over Rs 50,000 cr. In our micro-finance schemes, over 80,000 people in the North-East are benefited out of which 72% are women.
Do you think your capital is adequate considering more entrepreneurs coming up in recent time? Any plan for raising money through an IPO?
A recent study has shown that demand for micro credit in the region is about Rs 2,600 cr. Also, thanks to the new industrial policy, expression of interest indicating proposed investment in NE is over Rs 16,000 cr in just two years. We are requesting the government of India to enhance the funding support including an one-time grant. Regarding IPO, we are keen to raise money from the market for which we would engage a credit rating agency to rate us first. NEDFi���s fund requirement in next five years would be about Rs 2,000 cr.
Recently, NEDFi has been in news for supporting an innovative programme to produce handicraft items out of water hyacinth which grow all over the North-East and have always remained an wasted product?
Now, NEDFi is a leading financial institution in the country disbursing more industrial loans in North Eastern region than any other commercial banks. While talking to Shantanu Nandan Sharma, NEDFi���s chairman and MD K N Hazarika explained how much of Dr Singh���s dream was fulfilled, and what more are to come next. Excerpts:
Have you been able to fulfil Dr Manmohan Singh���s dream of initiating industrial development of the NE region by creating a development bank?
Yes. According to its mandate, NEDFi plays a catalytic role in creating entrepreneurship and generate synergy for economic activity in the region. Over the last 14 years, NEDFi has grown manifold in terms of operations, and its cumulative loan sanctions today stand at about Rs 1300 crore. From an average lending of Rs 25 crore in the initial years, NEDFi has now an average annual lending of more than Rs 200 crore. We have been able to generate total capital investment in the region of around Rs 4,500 cr and created direct and indirect employment of over Rs 50,000 cr. In our micro-finance schemes, over 80,000 people in the North-East are benefited out of which 72% are women.
Do you think your capital is adequate considering more entrepreneurs coming up in recent time? Any plan for raising money through an IPO?
A recent study has shown that demand for micro credit in the region is about Rs 2,600 cr. Also, thanks to the new industrial policy, expression of interest indicating proposed investment in NE is over Rs 16,000 cr in just two years. We are requesting the government of India to enhance the funding support including an one-time grant. Regarding IPO, we are keen to raise money from the market for which we would engage a credit rating agency to rate us first. NEDFi���s fund requirement in next five years would be about Rs 2,000 cr.
Recently, NEDFi has been in news for supporting an innovative programme to produce handicraft items out of water hyacinth which grow all over the North-East and have always remained an wasted product?
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We have always been supporting innovation among NE entrepreuners. You know, pani meteka or water hyacinth is an aquatic plant which can live and reproduce floating freely on the surface of fresh waters or can be anchored in mud. The plant grows in every 18 days, which means raw material for the new range of items including furniture, baskets, bags, mats etc. is free and plenty. We supported the innovation of making handicraft items out of this aquatic plant, and entrepreneurs are now receiving queries from Italy, Brazil and France. Very soon, these would be exported.Download
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