GOVERNMENT OF KERALA

BUDGET SPEECH
2009-2010

by
Dr. T. M. THOMAS ISAAC
MINISTER FOR FINANCE

on
20th FEBRUARY, 2009  

HIGH LIGHTS  OF BUDGET 2009-10

KERALA FINANCIAL CORPORATION

·         KFC would be transformed into an important development agency

·         Stimulus package of Rs. 5,000 crore to be spent through Public
Sector organisations like KFC for infrastructure development, Tourism sector, IT Sector and EMS Housing Scheme.

·         KFC would prepare a separate loan scheme to support Padasekhara Samithis and paddy farmers to buy machinery for ploughing & harvesting.

·         KFC would assist the factory to be set up by KERAFED

·         A loan package of Rs.500 crores will be provided to KFC to support the Small &  Medium Industries

·         Rs.130 crores towards equity support to KFC for the year 2008-09.  Hence the NPA of KFC would come down to 10%.  This would enable the  Corporation to access low interest loans from the market.  Subsidies for Small and Medicum industries would be channeled through KFC.

·         For the successful restructuring of Public sector undertaking the State Government will provide 180 crores over the next two years, of which Rs.50 crores is provided in this Budget.  Out of this Rs.40 crores will be provided by KFC as Soft loan.  For those industrial units which do not have liquidity to repay loans, KFC would give loan support.

·         For the expansion of Kerala Clays & Ceramic Papiniseery a soft of Rs.10 crores will be provided by KFC

·         KFC would provide a loan of Rs.5 crores to support the 14.5 crore expansion probject of The Kerala State Homoeopathic Co-operative Pharmacy Ltd. (HOMCO)

·         KFC will formulate a package of Rs.100 crores to support Gulf Returnees who intend to invest in industrial or commercial ventures in Kerala.