Meeting here today the 66-member Council of State Industrial Development and Investment Corporations of India (COSIDICI), reassessed its position in the wake of the liberalisation and new environment in the country.

"Clearly the turf which was ours is no more with us with Sidbi deviating from its refinancing role and entering into direct lending," DC Mishra president COSIDICI told press persons. Apart from this, the centre and the RBI have discriminated against the SLFIs vis-a-vis the commercial banks which have been bailed out with a recapitalisation of the order of Rs 14,000 crore.

"We are also a creation of the central government so why should we be discriminated against," he questioned stating that the problems confronting the SLFIs today were a result of the lending to the priority sector. The sorry state is a result of the declared policy of the government so why should we be penalised, he asked making a fervent plea for assistance from the finance minister and RBI by way of recapitalisation.

Apart from demanding that the Sidbi be barred from direct lending, the SLFIs have also petitioned the RBI and the centre to allow them to pick up a stake in the small industries bank which is being sought to be given complete autonomy from its parent body, the IDBI.

Apart from enabling them to have their own representatives on the Sidbi board this would also enable a better direction to the functioning of the institution, some of the COSIDICI members felt.

In a memorandum to the RBI governor earlier this month, the confederation had also emphasised on the need for financial restructuring of the SLFIs including recapitalisation and permission to them to set up local area banks which had been turned down by the central bank earlier.

The RBI governor had agreed to the constitution of a committee of specialists to look into the various problems confronting the SLFIs in the country. The committee is expected to submit its report within two months which will be a major milestone in the history of Indian SLFIs, Misra said.