State financial institution shows steady growth amid mining ban

Notwithstanding prevailing general economic slowdown and overall recession ostensibly driven by the prevailing ban on mining in the State, the State’s apex financial institution- EDC Ltd. – has shown a steady growth.

The EDC financial results released on Friday showed that its income during FY 2012-13 was Rs. 65.97 crore against Rs. 56.02 crore in the previous financial year (2011-12), up around 18 per cent.

The results were declared after its Board of Directors met under the Chairmanship of P. Krishnamurthy, IAS to approve the Annual Accounts for FY 2012-13 of the Corporation.

The profit after tax (PAT) achieved during FY 2012-13 was Rs. 30.75 crore against Rs. 19.99 crore during the previous year, an increase of about 54 per cent.

Encouraged by the good results, EDC’s Managing Director S. P. Bhat told The Hindu that EDC Ltd. will try to double its advances portfolio in the current year.

From its advances of Rs. 28 crore in the recently concluded financial year, the plan is to raise it to Rs. 60 crore, especially with focus on small and medium enterprises (SMEs), construction and related activities, said Mr. Bhat as he spoke of “quality lending and security-based lending” by the EDC Ltd.

He said the measures taken by the Corporation during the last few years to streamline its operations and bring about financial discipline has enabled the corporation to improve its performance.

The Board has also announced a dividend of Rs. 1.1 crore, payable to the shareholders for the year ended FY 2012-13, subject to approval of the annual general meeting (AGM).

In addition, EDC would also be remitting an amount Rs. 5.72 crore to the State government as interest towards land acquisition funds of the government managed by the Corporation.

During the course of its operations, EDC Ltd. has so far sanctioned term loans in excess of Rs. 1,000 crore to more than 8,000 units. It has been associated directly or indirectly with the setting up of majority of industries in Goa by way of direct lending, joint sector participation, subsidiary operations, among others, in the field of Engineering, Pharmaceuticals, and Tourism, resulting in economic boost and creation of jobs.

Presently, EDC Ltd. also offers 5 per cent interest rebate to units set up in industrially backwards taluks of Canacona, Quepem, Sanguem, Dharbandora, Sattari, Bicholim, and Pernem.

In addition, 2 per cent interest rebate is offered to Goan and Non-resident Goan Entrepreneurs and 2 per cent to Women Entrepreneurs who are interested in setting up units anywhere in Goa.

EDC Ltd. also operates the Chief Minister’s Rozgar Yojana Scheme (CMRY) of the State government, providing assistance to the unemployed youth.

The total financial assistance provided so far is more than Rs. 90 crore to more than 4,500 youth to start their self employment ventures.

  • Profit after tax was Rs. 30.75 crore, an increase of around 54 per cent

  • A dividend of Rs. 1.1 crore has been announced, pending AGM nod