ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Victory by Proxy

Victory by Proxy

what follow-up action is contemplated on the basis of the survey reports. If the effort is to bear fruit, IDBI will have to go beyond vaguely indicating investment opportunities in these States. It will have to work out concrete investment proposals and even try to hawk projects among potential entrepreneurs. In this respect, an all- India institution is perhaps at a disadvantage as compared to a State agency since the latter can guarantee prospective entrepreneurs land and infrastructure facilities like water, electricity, etc. The problem the IDBI will come up against here is that invariably SFCs in States which require the maximum effort for starting up industrial investment activity are the least equipped to undertake the effort. A major and immediate task before the IDBI is thus that of gingering up these SFCs. In this context it deserves to be considered whether, in refinancing SFCs, IDBI should not give up the present system of going proposal by proposal in favour of a system of allocating lines of credit to each SFC and relying on overall performance assessments along with efforts to gear up their organisation, technical competence and procedures.

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