Imphal, December 20: The Board of Directors of North Eastern Development Finance Corporation Ltd in its 35th meeting held on December 13 raised serious concern over the increasing level of non performing assets and decided to come down heavily on the defaulters.

The Board decided to take recourse to the recently passed securitization and reconstruction of financial assets and enforcement of security interest Act 2002 for recovery of dues from the defaulting units.

The Act provides for taking over the assets of the defaulting units by the financial institutions.

NEDFI management has already taken decision to initiate action under this act in a tea processing unit and a cold storage project.

In the state of Assam suit have already filed in DRT for recovery of dues from two projects one each in Manipur and Tripura.

Vigorous follow up is being made to recover the dues from the defaulters and wherever the persuasion fails NEDFi would take recourse to legal action.

Further in view of the amendment of the North Eastern Council Act including Sikkim under its purview, the board decided to extend its operation to Sikkim.

With this, NEDFi expects to boost its lending activities as Sikkim is a peaceful state with lots of potential or tourism and power based industries.

Since all the incentives of North Eastern Industrial Policy will be equally applicable to Sikkim, the state will be an investors' paradise for setting up various industries.

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