Finance Minister T.M. Thomas Isaac has proposed grant of permission to the municipalities and municipal corporations, to be selected based on their efficiency, to issue bonds with government guarantee under the new issue and listing guidelines of the Security and Exchange Board of India (SEBI).
New venture
The Finance Minister said the government also proposes to launch an interest-free Non-Banking Financial Company, to be known as Cheraman Financial Services, to ensure availability of funds to take up big projects.
To begin with, a Rs.250-crore project would be undertaken to modernise the Kerala State Drugs and Pharmaceuticals (KSDP) so that it can manufacture GMP-compliant drugs. Once modernised, the factory would be given on lease to the Industries Department. Dividends would be paid to the investors from the profits of the company, he said.
