Cabinet okays change in OSFC restructuring package

Clearing the path for signing of the tripartite agreement between the Orissa State Finance Corporation (OSFC), Orissa government and the Small Industries Development Bank of India (SIDBI), the state cabinet today approved an amendment to the restructuring package of OSFC approved by it earlier.

This amendment will allow conversion of Rs 254 crore infused by the state government in OSFC for liquidating the SLR bonds to share capital with waiver interest thereon. This will enable OSFC to achieve positive networth and it will be able to attain Capital Risk Asset Adequacy Ratio (CRAR) as per the prudential norms prescribed by the Reserve Bank of India (RBI). It will also be eligible to avail line of credit (LoC) under refinance from SIDBI.

The cabinet chaired by the chief minister also put its seal of approval for extending the One Time Settlement (OTS) policy adopted by OSFC for six more months. The extension is expected to help in maximum recovery of the outstanding dues from the small scale units who availed loans from it. The amount to be recovered through OTS will be utilised for clearance of outstanding government dues payable by OSFC.

The cabinet approved another proposal of the finance department for tax exemption on goods to be used in the rehabilitation and reconstruction work in the flood affected areas under the Value Added Tax (VAT) Act, 2004 and Orissa Entry Tax Act, 1999.