Andhra Plans Rs 25cr Revolving Fund For Infrastructure Sector

Andhra Pradesh will soon establish a Rs 25 crore revolving fund to catalyse investment in infrastructure like highways, ports and energy.

The state cabinet on Saturday decided to set up a trust, A P Infrastructure Initiative Fund, to be managed by a board of around 12 trustees. The trust will be registered under the Companies Act.

The state government will provide Rs 5 crore towards seed capital for the proposed fund while the balance Rs 20 crore will be mobilised from national and international financial institutions.

State finance minister P Ashok Gajapathi Raju said after the cabinet meeting that besides infrastructure, the proposed revolving fund could also be utilised to achieve a seven per cent growth in the industrial sector, create a window for channeling information and expertise and to function as a think tank for privatisation.

 

The cabinet also decided to set up a one-man commission to look into the problems of small industries, especially complicated bureaucratic procedures.

The commission to be headed by a former law secretary, will also look into the legislations enacted covering the small industrial sector and recommend to the government to repeal outdated ones. The panel's work would be completed in three months.

The state cabinet also decided to promulgate an ordinance to amend the Recovery of Revenue Act, to bring under its purview loans given by scheduled banks for central and state schemes, especially those pertaining to self employment schemes.

There has been a long-standing demand of the banks that they should be allowed to invoke the Recovery of Revenue law to realise dues to them from individuals under the welfare programmes. Banks have lately stopped sanction of such loans which has adversely affected the state.