Jan 30, 2014, 2:43 AM
News Code: 81017463
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Indian PM launches NAWADCO to promote interests of minorities

New Delhi, Jan 30, IRNA – Indian Prime Minister, Manmohan Singh, on Wednesday launched National Waqf Development Corporation (NAWADCO), a new Central Public Sector Enterprise under Ministry of Minority Affairs, to promote the interests of minorities in the country.

Inaugurating the function to mark the commencement of the activities of the NAWADCO, Prime Minister said that this is an institution which our Government has established for the development of waqf properties for the benefit of the Muslim community.

The UPA Government has unwavering commitment for the protection and promotion of the interests of minorities.

The establishment of NAWADCO is another step forward in efforts to promote the interests of minorities in the country, he added.

This Corporation has been established with Authorized Share Capital of Rs. 500 Crore with a paid up capital of Rs. 100 crore, the Prime Minister said.

Speaking on the occasion K. Rahman Khan, Union Minister of Minority Affairs said that establishment of NAWADCO is first step towards creating Shariah–compliant infrastructure building institution.

As in Islam, giving interest is a sin and a Quranic injunction, Muslims keep themselves away from normal banking channel.

They look forward to the Government to facilitate establishment of certain Shariah compliant financial institutions, where the savings of Muslims can be deposited and used for their educational and economic development.

The NAWADCO may also be an institution which can facilitate issuing of Shariah–compliant bonds to channelize savings of Muslims for community welfare.

This Corporation has been established with Authorized Share Capital of Rs. 500 Crore with a paid up capital of Rs. 100 crore.

In this Corporation, the National Minority Development and Finance Corporation (NMDFC) has 49 per cent shares.

India has the largest number of Waqf properties in the world. There are more than 4.9 lakh registered waqf properties and the current annual income from these properties is about Rs. 163 crores.

According to an official estimation, such properties, if properly developed, with a minimum return of 10 per cent, would be capable of generating an income of Rs. 12000 crore per annum.

NAWADCO will facilitate and mobilize financial resources for the development of Waqf properties for community development purposes in a joint venture with the State / Union Territory Waqf Boards and the Mutawallis (Trustees).

The Waqf Boards and the Muthawallis were not having the financial resources to develop the properties leading to encroachments.

The total area under waqf properties all over India is estimated at about 6 lakh acres, the market value of which is about Rs.1.20 lakh crores.

Many of these properties are on prime land and they have the potential of generating considerable returns, which in turn may be used for socio-economic development of deprived sections of Muslim community.

Government of India has recently enacted the Waqf (Amendment) Act, 2013.

This will make administration of waqf properties transparent and will provide an enabling environment for development and utilization of waqf lands for welfare of minorities.