THIRUVANANTHAPURAM: Finance Minister Thomas Isaac has told the employees of the Kerala Financial Corporation (KFC) to wake up to the startup buzz in the state. He was speaking after inaugurating the annual meet of KFC Officers Association (CITU) on Monday.
“We need an overhaul of KFC’s work culture. A makeover to meet the needs of knowledge-based startups which the government intends to encourage. The slow pace of passing loans and initiating action that kills entrepreneurial culture will not help an organisation like the KFC,” he said.
Stressing that creating an entrepreneurial culture was more important than making profit out of the investments to startups, he said the government would be generous in funding student startups. “We are creating a roadmap to fund 1000 startups. Budgetary provision has been made in this regard,” he said.
Isaac reminded that KFC was one of the few similar organisations in the public sector which survives. According to him, the survival was mostly due to the support of the previous LDF government in bringing down the liabilities such as recapitalisation and issuance of bonds.
The Finance Minister said the KFC has been the most affected by liquor policy of UDF government and demonetisation by the Centre. Restriction in liquor sales have affected the tourism potential of many resorts that have taken loans from the KFC. “These businessmen have mortgaged their properties with us. But we are not in a hurry to recover the loans as it would affect the business environment here,” said Isaac. Strongly criticising Narendra Modi’s decision to demonetise higher denomination notes, the Finance Minister said the callous decision has destroyed the investment climate in the country.