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Journalism of Courage
Government on Friday approved a Rs 900 crore financial package for state finance corporations through reduction in interest rates by 2 per cent on outstanding and future loans given by Sidbi.
Sidbi will offer a 2 per cent reduction in interest rates on all outstanding loans given to 20-odd SFCs. Sidbi will also offer a rebate of 2 per cent on all future loans to SFCs. The total outgo for the interest waiver would amount to Rs 900 crore for Sidbi. Government will provide relief to apex SSI Bank by deferring the payment of all interest by 10 years on Sidbi Bonds. The decision to bail-out SFCs was long pending and was being processed by IDBI and Sidbi since 1999-2000. The G.P. Gupta committee had recommended capital infusion in SFCs to the tune of Rs 1,800 crore by Centre, state, IDBI and Sidbi. However, the proposal was shot down considering the unviability of the scheme.
