THIRUVANANTHAPURAM: Film projects funded by the Kerala Financial Corporation (KFC) had a typical storyline and predictable climax. Since 2010, the corporation financed 20 projects of which 17 defaulted on repayment and found their way into the list of non-performing assets (NPA). Together, the erring producers owe Rs 31.84 crore to the KFC. And among them are big names, including one that made into the Rs 100 crore club. Loan sanctions to these projects ranged between Rs 28 lakh and Rs 2 crore.
“Most of the producers defaulted on repayment after making one or two instalments. Some of them made big money from the projects but did not bother to repay the loan,” says Tomin J Thachankary, chairman and managing director of the corporation.
Following reports that the KFC may stop funding films, the Kerala Film Producers’ Association intervened in the issue and held talks with the KFC. “The association has taken a proactive step and has assured us to ask the defaulters to repay the loans. This is a welcome move and we are happy to continue our support to the industry,” Thachankary said. In future, the corporation will consult with the association on fresh sanctions in the sector, he said.
A film that made into the Rs 100 crore club was cited by the KFC officers as an example of a wilful defaulter. The producer took Rs 2 crore loan for the project but erred in repayment. He owes Rs 1.47 crore to the KFC now.
The KFC has a huge NPA worth Rs 5,696 crore, of which Rs 778 crore is the principal and Rs 4,918 crore is interest. Two major segments of defaulters are quarry and bar hotel businesses. The corporation has started a slew of measures to bring down the gross NPA, including revenue recovery in major cases and enlisting defaulters in TransUnion CIBIL and Reserve Bank of India’s Wilful Defaulter list.