Bhubaneswar: Credit of Rs 9,803 crore has been advanced to micro, small, medium, khadi and village industries in the State by various banks against the target of Rs 14,554 crore during 2016-17.  This was informed by Convenor of State level bankers’ committee (SLBC) Anil Kumar during the meeting of SLBC sub-committee on MSME.

This includes a loan of Rs 6501 crore disbursed to different entrepreneurs by Micro Units Development and Refinance Agency (MUDRA) under Pradhan Mantri Mudra Loan Bank Yojana (PMMY). Banks have approved 1147 applications under the Prime Minister’s Employment Generation Programme (PMEGP) involving Rs 24.76 crore.

MSME Minister Jogendra Behera asked all banks to maintain smooth credit flow to MSME sector as it is vital for economic growth and employment generation in the State. Secretary in MSME Department LN Gupta expressed his displeasure over poor performance of different banks under PMEGP. He advised the representatives of banks present in the meeting to ensure disbursement of 100 per cent assistance in all the sanctioned cases.

Gupta advised the banks not to insist on collateral security from micro and small entrepreneurs as loan upto Rs 2 crore is covered under Credit Guarantee Fund Trust for Micro and Small Enterprises. General Manager, Reserve Bank of India, SP Mohanty also instructed banks to give top most priority for expeditious sanction and disbursement of credit under different Government schemes to eligible MSME applicants.

Bankers expressed concern about NPA specifically under PMEGP and Prime Minister’s Rozgar Yojana (PMRY) which is 38 per cent. The Director of Industries was advised to instruct General Manager, district industries centres (DICs) and Industries Promotion Officers (IPOs) to suitably assist banks in recovery of outstanding dues as well as in creating awareness about importance of having good credit record.

Source: The Indian Express