| WBIDC chairman Somnath Chatterjee and MD Gopal Krishna addressing a press conference in Calcutta on Saturday. Picture by Kishor Roy Chowdhury
Calcutta, April 26: After a gap of almost 18 years, the West Bengal Industrial Development Corporation (WBIDC) has earned a net profit of Rs 3.15 crore in the financial year ended March 31, 2003.
Last year WBIDC suffered a net loss of Rs 53 lakh.
The corporation, which is engaged in the promotion of industries in the state has earned an operating profit of Rs 10.65 crore as against Rs 97 lakh in the previous year.
Addressing a press conference here today, WBIDC chairman Somnath Chatterjee said, “The increase in the income from operations from Rs 18.74 crore to Rs 22.14 crore and a simultaneous decrease in operating expenses from Rs 17.77 crore to Rs 11.49 crore resulted in a significant contribution to the bottomline.”
Regular monitoring, prompt followup and vigorous recovery efforts led to an increase in total recovery from Rs 46.88 crore to Rs 55.08 crore — an increase of 17.49 per cent, he added.
The increase in recovery of principal was 16.41 per cent, from Rs 34.80 crore in 2001-02 to Rs 40.51 crore in 2002-03 while the increase in recovery of interest was 20.61 per cent.
Chatterjee said the strategy of “one-time settlement” (OTS) of dues helped the corporation in its recovery efforts and restructure non-performing loan portfolios.
The corporation was able to settle 18 cases with the help of OTS involving an amount of Rs 10.60 crore in 2002-03. In 2001-02, six cases were settled under OTS involving an amount of Rs 4.76 crore. The accumulated loss of the corporation is to the tune of Rs 53 crore.
The decrease in operating expenses, particularly on account of finance charges was mainly because of the retirement of high-cost debt amounting to Rs 19.36 crore. Funds needed for operations were sourced through direct borrowing at lower costs, thereby reducing finance charges.
The administrative expenses for the financial year 2002-03 were Rs 4.47 crore compared with Rs 4.70 crore in the previous year.
WBIDC managing director Gopal Krishna said the size of operations has increased during the last fiscal.
The loans sanctioned in 2002-03 amounted to Rs 99.19 crore as against Rs 44.68 crore in the previous year — an increase of 122 per cent. Disbursements for the year 2002-03 amounted to Rs 65.10 crore as against Rs 34.07 crore in the previous year — an increase of 114 per cent.