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

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WORLD HUNGER- How Capitalism Starves 100 Million People

to advance further unsecured loans with no prospect of recovery. Unsecured loans outstanding amounted to Rs 70.13 lakh as on March 31, 1984, SIPCOT, This company was set up in 1971 as a wholly owned government company with the objectives of: (i) Implementation of a package of incentives for the benefit of entrepreneurs; (ii) development of potential growth centres in backward districts of the states and provision of developed lands to industries; and (iii) provision of finance to medium and major industries under the Industrial Development Bank of India's scheme for refinance. The Report noted that though the loan amounts sanctioned and disbursed are showing an increasing trend during the three-year period under review, the assistance to industries in backward areas is progressively decreasing. Non-receipt of applications for setting up industries in backward areas was attributed by the company as the reason for the fall in assistance to this sector. Further, the Report reveals that trading in surplus money had become the second largest source of income to the company next only to interest on term loans. Though huge cash surplus had been estimated and realised, share-capital assistance from the government had not been regulated properly. The funds which were allotted by the government for furtherance of industrial activity have been diverted for non-industrial purposes (deposits with banks).

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