NEDFi approaches govt on micro-credit funding

NEDFi approaches govt on micro-credit funding
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First Published: Mon, Aug 10 2009. 07 05 PM IST
Updated: Mon, Aug 10 2009. 07 05 PM IST
New Delhi: India’s dedicated financial institution for northeastern region North-Eastern Development Finance Corp. Ltd, or NEDFi, has reached the Centre for adequate funding to meet future market demand, said a NEDFi official.
“Need for micro-credit in northeast would increase in the coming years,” said NEDFi, DGM & DRO Manoj Das.
The NEDFi opinion is based on a study carried out by the Indian Institute of Bank Management in Guwahati. The study found the demand for micro-credit in the region is Rs2,600 crore.
“The North-East Industrial and Investment Promotion Policy (Neiipp) 2007 generated lot of interest among investors in infrastructure sectors like cement, power, steel, road, railways…. Even sectors like tourism and education are in for investments,” said Das, crediting the Centre and regional governments’ business-friendly policies.
“From April 2007 to March 2009 after the announcement of Neiipp-2007 proposed investment in the region is to the tune of Rs16,798 crore,” he said. However, there is a need for government funding if NEDFi has to play a proactive role in the future investment environment.
“For instance, NEDFi would need around Rs2,000 crore in five years even if only 20% of the aggregate debt requirement of this proposed investment has to be tapped,” Das said.
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First Published: Mon, Aug 10 2009. 07 05 PM IST