Recovery syndrome in Odisha State Financial Corporation

Abstract

newlineThe Odisha State Financial Corporation (OSFC) is a premier term lending institution in the State of Odisha. It was established in the year 1956 and started functioning effectively from 1957 as a Statutory Corporation, having its Head Office at Cuttack. Since, over five decades the Corporation is acting as an agency for promoting small scale industries in different areas of the State. The present chapterand#8223;s primal focus is on the profile of the Corporation in its activities, organisation and financial structure Review of the financial position of the Corporation during the study period is also made at the end of this chapter. Aims and Activities of OSFC The main aim of OSFC is to assist the promotion and development of medium and small scale industrial concerns in the State. The dealings of OSFC are limited to industrial concerns defined in the SFCs Act. 1951 Sec.2(c) of the Act defines an industrial concern as any concern engaged or to be engaged in (1) the manufacture, preservation and processing of goods, (2) mining or development of mines, (3) the hotel industry, (4) the transport of passengers or goods by road or by water or by air or by lift, (5) the generation and distribution of electricity or any other form of power, (6) the maintenance, repair, testing or servicing of machinery of any description of vehicles or vessels or motor boats or trailors or tractors, (7) assembling repairing or padding any article with the aid of machinery or power, (8) the setting up or development of an industrial area or industrial estate. For achieving this broad objective the Corporation undertakes the activities like: i. sanctioning of long-term loans to industries for purchasing land, building and machinery, ii. guaranteeing payment on entrepreneurand#8223;s behalf for purchasing machinery on deferred payment basis from suppliers with in India, iii. underwriting the issue of shares, bonds and debentures by industrial concerns, iv. granting loans and advances to industrial concerns which are repayable within a maximum