KSFE set for makeover into infrastructure development company with Pravasi Chitty: Finance Minister Isaac
The government hopes to collect Rs 20,000 crore from 10 lakh NRKs in three years from the Pravasi Chitty and make it the state's numero uno infrastructure development company, Isaac said.
KOCHI: Pravasi Chitty, the ambitious scheme from the Kerala State Financial Enterprises (KSFE) to collect a whopping Rs 20,000 crore from Non-Resident Keralites (NRKs), will give a complete brand makeover for KSFE from a chit fund company into the state's numero uno infrastructure development company, said Finance Minister T M Thomas Isaac.
KSFE, which grew to a Rs 18,000 crore chit-turnover company in 47 years, will leapfrog into a different level in the next three years increasing its chit-turnover to Rs 40,000 crore, thanks to Pravasi Chitty, said Isaac. The profit of KSFE will shoot up from 140 crore to Rs 400 crore in the same period, he said.
The Finance Minister was speaking at the KSFE's central zone meeting at the Town Hall here on Wednesday, to brief the state government company's staff from the districts of Idukki, Thrissur, Kottayam, Alappuzha and Ernakulam on the workings of the Pravasi Chitty.
"What I can promise you is a new pride and confidence that you are part of Kerala's infrastructure development; a new Cathlab, a new flyover and a new hospital will be developed using KSFE's Pravasi Chitty funds," he told over 1,000-odd KSFE staff.
The government hopes to collect Rs 20,000 crore from 10 lakh NRKs in three years from the Pravasi Chitty. There are over 35 lakh Malayalis working in different parts of the world. The scheme is aimed to attract them to put money into a product acting as an investment when they finally return home.
The Minister said the state government will give 100 per cent guarantee, besides insurance and pension for those who subscribe to the chit fund.
People from anywhere in the world can invest in Pravasi Chitty and participate in the auction online.
While the funds are collected by KSFE, it will, in turn, invest in bonds issued by Kerala Infrastructure Investment Fund Board (KIIFB).
"There will be strict monitoring to ensure funds are used only for the intended projects," he said, adding reputed persons such as former Comptroller and Auditor General Vinod Rai heads the Fund Trustee and Advisory Commission of KIIFB which has other well-known names, such as former Deputy Governor of RBI Usha Thorat as members.
SURVEY SHOWS 60 PERCENT INTERESTED
The Finance Minister said the state government conducted a survey among the NRK community via UAE Exchange, a money transfer firm, to know the interest among the Malayalee community in Gulf countries in KSFE's chit fund.
"Over 60 per cent of the respondents were very keen to participate in the Pravasi Chitty," Isaac said. He said this gave the government the motivation to go-ahead with the product.
KSFE chairman Peelipose Thomas and managing director A Purushothaman also spoke on the occasion.