Jammu and Kashmir Minister for Finance Abdul Rahim Rather today said that once on the verge of "extinction" the J&K State Finance Corporation will come out of the danger zone soon.
"The Corporation whose net worth had gone down to a negative figure of Rs 104.58 crore as on 31-3-2009, is now coming out of red and is going to turn positive very shortly," Rather said during the 51st Annual General Meeting of the shareholders of J&K State Finance Corporation (SFC).
"The Corporation has already settled liabilities of Rs 171 crore, which had been in default for more than seven years," he added.
Rather also mentioned that the earnings of the Corporation have gradually grown over the past few years while the establishment cost has simultaneously reduced.
"Its annual earning which was Rs 5.74 crore as against the establishment cost of Rs 6.66 crore, has improved to Rs 7.27 crore, while the establishment cost has simultaneously reduced to Rs 6.60 crore even after meeting the inflation in costs," Rather said.
The Finance Minister said that the One-Time Settlement scheme announced in 2010 enabled the Corporation to recover an amount of Rs 14.64 crore and also sanctioning of loans to the tune of Rs 10.15 crore.
"The Corporation earned an income of Rs 3.36 crore and incurred an expenditure of Rs 11.38 crore during the first year of its revival (2010-11)," he added.
Rather said that on the plea of state government, the Prime Minister's Task Force on Micro, Small and Medium Enterprises recommended grants to the tune of Rs 150 crore for revival of Industries in J-K through SFC.
