Chizokho Vero
Kohima | August 8
Chief Minister Neiphiu Rio today termed ‘lack of financial capital’ as one of the most difficult constraints that Naga entrepreneurs are facing to set up business ventures in the state.
Hoping to build up the required confidence amongst the financial institutions for better participation in development of Nagaland, Rio urged the banks and financial institutions to become bolder, ‘more forward looking’ and more willing to take risks.
“Let me remind you that no great achievement has ever been made without taking calculated risks. Also remember that you are dealing with the first generation entrepreneurs, who are not yet adept in bank cultures. You have to show more understanding and flexibility while dealing with them,” Rio told the gathering at the one day interface of the First Generation Entrepreneurs with the State government and financial institutions at Zonal Council Hall here under the aegis of Entrepreneurs Associates (EA).
The state government has taken a number of positive measures to ensure better recovery of bank loans, he declared adding that it had already passed Debt Recovery Act and also declared certain areas where mortgaging of land against bank loan can be done. Unlike many other states, Nagaland has very little industries at the moment, he regretted. Rio, however, assured that there is a huge potential left untapped in Nagaland especially in Agri and allied sectors.
Rio also maintained that there has also been considerable improvement in the law and order situation in the state, leading to better investment climate.
Rio stated that there has been a visible change in the way young Nagas have approached and taken up entrepreneurship. As a result, there has been visible improvement in the area of self employment, and also in the number of employment opportunities generated outside the government sector.
“Many young people have started taking up micro enterprises. Let us support them and encourage them so that they become the drivers of economy growth of the state,” the Chief Minister said and wanted the banks and financial institutions to become fully involved in this process of industrialization of the state.
He said that the CD ratio in Nagaland as on 31.3. 05 is 23.29 per cent. It has now increased as on 31.3.06 to 26.39 per cent while the national average is 60 per cent plus.
“This is because that the credit facility is low, recovery rate is bad and banks are not willing to give loans in view of the lack of collateral mortgage”, Rio said adding that CD ratio will only improve when the banking laws, rules and regulations are considerably altered to suit the customary practices of the Nagas.
“We do not have in Nagaland what we want. There is no sound economic matching between demand and supply leading to imbalanced economic development,” he said adding that identification of industries and economic activities “is imperative for purposeful economic development.”
Rio observed that the entrepreneurs should play a vital role in this identification process.
Rio also expressed happiness that RBI has recently passed some directives to banking institutions to involve the cooperatives and NGOs in reaching credit to most of deserving and backwards areas of the country.
“This a welcome move, and we should not waste any more precious time in implementing the directive,” he said, adding that Nagaland has readily available NGOs and community management systems at grassroot levels like VDBs, which the financial institutions can take advantage.
Also expressing happiness to NEDFi for building relationship with the EA, he wished their relationship to grow from strength to strength.
Several persons including chief secretary Lalhuma, CMD NEDFi, Guwahati KN Hazarika, Zonal Head-East, Agribusiness, ICICI Bank Avijit Majumdar, Deputy Chairman, State Planning Board, Nagaland, Deo Nukhu, Principal Secretary Industries Alemtemshi Jamir, IAS, Former chairman SIDICO Sikkim PD Rai spoke on the occasion.
EA’s coordinator Neichute Doulo shared the experience with micro finance while Thepuphi Kapuh chaired the function.
Morung Express News
