Kerala - Thiruvananthapuram   

Cabinet okays KSFE autonomy

THIRUVANANTHAPURAM: The Cabinet has cleared the proposal to restructure the profit-making Kerala State Financial Enterprises (KSFE).

Addressing a press conference here on Wednesday, Finance Minister T.M. Thomas Isaac said the KSFE would be given functional autonomy to implement its budget. The company’s business plan would be announced on Saturday at Thrissur at a get-together of employees, he said.

The KSFE board will have powers to open branches and act according to the budget to be submitted to the government each year by January 31. The company need not approach the government for sanctions to implement the approved budget proposals. The objective is to convert the KSFE into a professionally managed financial institution.

The Finance Minister said the State government was considering giving star ranking to public sector undertakings on the basis of their result. Restructuring of the KSFE was the first step towards this objective. The Cabinet was unanimous on this proposal and soon a scheme on star rating would be prepared, he said.

Under the restructuring scheme, the financial powers of the managing director and officials up to assistant general manager had been increased. The KSFE will have two new regions in Kottayam and Kannur. New posts will be created to bring in professionalism in its management.

The Minister said the KSFE’s paid up capital was only Rs.10 crore, but it had contributed more than Rs.250 crore to the State exchequer by way of guarantee commission, service charge, dividend, etc. In addition, it had paid Rs.175 crore as Income-Tax. The KSFE has nearly Rs.750 crore in Treasury deposits. In 2005-06, the KSFE’s total income was Rs.3,900 crore. This went up to Rs.5,500 crore in 2007-08. The chitty business witnessed stupendous growth during the last two years, touching Rs.255 crore in chit amount.

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