Govt. decision prompted by Rangarajan Committee recommendations
As part of its efforts to revive the economy by boosting the industrial sector, the State government has initiated steps to restructure the Tamil Nadu Industrial Investment Corporation (TIIC). The corporation was established under the Companies Act in 1949 as the first State-level development financial institution for catalysing industrial development.
The government’s decision followed the recommendations by the Rangarajan Committee, which studied the impact of the COVID-19 on the State’s economy and submitted its report to Chief Minister Edappadi K. Palaniswami in September. The committee had said in its report that the TIIC “can be restructured and strengthened to expand lending to industries by infusing capital of ₹1,000 crore over three years”.
The TIIC had a few weeks ago, floated a tender to finalise a consultancy firm for undertaking a study for its restructuring. The tender document said the corporation was “facing certain challenges”, including scaling up operations over its ability to raise funds from the market at competitive rates, lack of structured marketing and promotion and delay in the adoption of digital banking technology and new-age methods for operations.
To meet the challenges and transform itself into a socially relevant and efficient development finance institution capable of elevating itself as a major player in the State to serve the industry, the TIIC is proposing to engage a consultant to carry out the mentioned scope of work.
The consultancy firm to be selected through the tender process would collect information on the assets, finances and operations of the company, review its existing portfolio based on the exposure details, account history and current status of the accounts and establish a robust monitoring framework for both non-core and core business cash-flows including a payment and authorisation matrix.
The TIIC provides financial assistance to micro, small, medium, large scale industrial units and service sector projects.
The Rangarajan Committee has also recommended developing integrated townships with social infrastructure facilities in the ‘growth centres’, which would provide a big advantage for the State in attracting investments and also stressed the need for developing a comprehensive plan to provide industrial housing facilities in all industrial clusters through the Tamil Nadu Shelter Fund.
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