| Date: |
31-01-2013 |
| Subject: |
Govt urges banks to improve MSME lending in Northeast India |
|
GUWAHATI: Union ministry of Micro, Small and Medium Enterprises (MSME) wants banks to improve their lending to MSME sector in Northeast India.
Union Minister of State for MSME, K H Muniyappa who was in Guwahati reviewed the performance of MSME in Northeast and held a high level meeting with Chief Minister Tarun Gogoi.
The Union Minister for MSME said his ministry wants to reach out to the young and educated people to set up new enterprises, for which it has adequate funds. Muniyappa urged Chief Minister Gogoi to instruct the deputy commissioners to prepare the list of beneficiaries within a set timeframe of three months for extending loan assistance.
"Banks have been instructed to advance the loan without asking for collateral guarantee," he said.
The Chief Minister directed the Chief Secretary and the Additional Chief Secretary to take up the matter with the deputy commissioners for submission of the list of beneficiaries within the stipulated time.
The Union Minister pointed out that the functions of his ministry include inculcation of entrepreneurial culture amongst youths, facilitation of credit flow to MSMEs, improving competitiveness of MSME, promotion of MSMEs through cluster-based approach, marketing support to MSMEs, creation of new Micro Enterprises through Prime Minister's Employment Generation Programme (PMEGP), support to Khadi and Village Industries (KVI) sector, support to Coir Industry, entrepreneurship and skill development.
The Union Minister said the margin money for khadi and village industries would be raised from Rs 66 crore to Rs 100 crore which would benefit 12,000 beneficiaries during 2013-14.
The Union Minister said he would ask the banks to enhance the flow of credit to MSMEs. "All the commercial banks should achieve a 20 per cent growth in credit year-on-year to micro and small enterprises and strictly adhere to the allocation of 60 per cent thereof to micro enterprises to ensure enhanced credit flow," he added.
Muniyappa praised the State Government for exceeding the physical target under Prime Minister's Employment Generation Programme (PMEGP). The State Government has achieved 13,694 exceeding the target of 9,950 for a period of four years with the achievement being 136 per cent.
Additional Secretary and Development Commissioner, MSME, Amarendra Sinha said the ministry has called for strict implementation of RBI norms for micro and small units - a move that can boost the financing for the MSMEs.
"The MSME ministry has asked the Finance Ministry to ask banks to give collateral free loans of up to Rs 10 lakh to micro and small enterprises, which is mandatory upon them as per Reserve Bank of India (RBI) guideline," Sinha added.
The RBI had raised the limit of collateral free loan for MSEME from Rs 5 lakh to Rs 10 lakh in 2010.
Sinha called for support from the State Government for building up necessary infrastructure for the downstream industries coming up from the Gas Cracker Project. "The bamboo materials can be combined with polymers to produce different items," he added.
Source : economictimes.indiatimes.com
|