Funding by FIs in NE abysmally low

Guwahati, July 13: The dismally low rate of funding by the Industrial Development Bank of India (IDBI) and other major financing institutions (FIs) in the backward NE region is showing no sign of improvement despite the repeated policy announcements made by successive Central Governments to develop the region's economy with an impressive thrust at the macro level. For, said knowledgeable circles here, the funding rate of the IDBI in the region stood at 0.012 per ecnt against the all India rate in 1996-97, while it stood at 0.024 per cent in 1997-98 and 0.008 per cent in 1998-99 against the all India rates. Similarly, the case of investment made by other financing institutions in Assam may provide the tip of the iceberg in this connection, said the sources. The all India sanction and disbursement by these institutions stood respectively at Rs 3,41,232 crore and Rs 2,28,506 crore as on March 3, 1997, while the shares of Assam in these respects were Rs 1,785 crore and Rs 1,184 crore respectively though Assam is considered comparatively advanced in the region, said the sources. When the outflow of fund from the region through the IDBI and other financing institutions are taken into account to make a comparative study with the sanctions made by these institutions, the injustice made by the financing institutions to the region becomes more clear, the sources said. Between 1996-97 and 1998-99 financial years, the IDBI helped the outflow of around Rs 340.74 crore from the region against a total sanction of around Rs 52.08 crore during the period. On the other hand, other financing institutions are also mobilising huge amounts of funds from the NE region without bothering to invest substantially, in return, in the region, sources said.