STATE
POLICIES

ANDAMAN & NICOBAR

XIII. LIAISON WITH BANKS/FINANCIAL INSTITUTIONS:-

One of the main reasons for the slow pace of industrial developmentis inadequate credit flow to industrial sector. Keeping in view of the poor credit deposit ratio in the Island territory there is a need for a more liberal attitude towards industrial financing proposals. All the commercial and Cooperative banks will be pressed upon to achieve their desired target as projected in the District Credit Plan. To increase credit flow, Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO) has been designated as a State Finance Institution for this territory and it has already started extending term loan and working capital loan to industrial units.

In order to Co-ordinate/monitor the credit flow in the Industrial sector it is proposed to constitute a Credit Committee under the Chairmanship of Secretary (Industries). The main functions of the Committee shall be:-

  1. Close monitoring of sanction and disbursement of loans to entrepreneurs.
  2. Co-ordination between financial institutions and commercial/Co-operative banks for sanction of term loan and working capital.
  3. Joint recovery of loan.

    This committee may meet on monthly basis to coordinate, monitor and draw out plans for industrial financing.

XIV. INDUSTRIAL SICKNESS:

Sickness is inevitable in the process of Industrialisation. Definition of sickness is issued by the Reserve Bank of India from time to time which is followed by the U.T. Administration. Sickness lead to loss of production, employment and erosion of the capital invested in such ventures. Though instances of Industrial sickness is not prevalent in these Islands, the A & N Administration is committed to render all possible asistance in arresting industrial sickness and work for extending all possible help for rehabilitation of potentially viable unit. The Board of Industrial Financial and reconstruction (BIFR) decide the appropriate package of rehabilitation for Medium and Large Scale Industries. A & N Administration constituted "State Level Rehabilitation Committee (SLRC) vide notification no. 50-604/89- Dev.I dated 4th June 1992 to identify sick units and work out viability packages for their rehabilitation and to make recommendation to various inputs giving agencies including financial institutions for assisting the sick unit in its rehabilitation programme. So far, no unit is registered as sick unit in these Island.