Ksfc and North Karnataka

Abstract

There was no effective State assistance to the entrepreneurs in the pre-independent period. After independence an effort in this direction was initiated by the Government in many ways. Among them, establishment of financial institutions is one. Accordingly KSFC was established in 1959 to cater to the needs of the entrepreneurs in the State of Karnataka. The Corporation is expected to achieve alround and balanced growth of the state.

This paper is an attempt to evaluate the performance of KSFC in North Karnataka. The study is made by taking the assistance given by Corporation from 1990-91 to 1997-98 in all the districts of Karnataka and comparing the percentage share of each district in the KSFC's assistance with the density of population. The study revealed that except Bangalore, Dakshina Kannada and Kolar all the other districts failed to get due share in the KSFC's assistance, Among them, Bijapur, Gulbarga, Dharwad and Raichur failed to get their share miserably These findings revealed that North Karnataka is neglected continuously in several fronts by the Governments ruled the State.To achieve the balanced growth of the State of Karnataka, several suggestions were offered in the paper. Creation of an 'apex body' subordinate of KSFC in North Karnataka, exemption of application processing fees for units coming up in North Karnataka, establishment of 'Technical Advice and Guidance Cell', conducting special developmental campaigns, development of infrastructural facilities etc., are the important suggestions offered by the paper.