Jammu, Jan 2 (KNN) The J&K MSMEs have hailed the sops offered to the MSME sector by PM Modi which includes enhancement of credit limit to Rs 2 crore under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

The Federation of Industries, Jammu, has hailed PMs announcement which includes the enhancement of Finance limit from One Crore at present to Two Crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and increase in the Maximum permissible Bank Finance for working capital (MPBF) from 20% at present to 25%.

Lalit Mahajan, Chairman, FOIJ, said the move which will provide great relief to the ailing Industrial Sector of the State and an opportunity for the rapid growth of MSME Sector in future.

FOIJ said that the number of Banks created Road Blocks for the Financing of MSME Units under CGTMSE scheme during past by some excuses resulting very limited finance was granted to the needy MSME’s.

As per the data available with the Reserve Bank of India only 10.98% of the total credit by the Banks was sanctioned till 30-09-2016 in our State to MSME Sector under the Scheme, it said.

“It is pertinent to mentioned here that in case of Private Banks operating in the State, we appreciated the steps taken by the J&K Bank who provided finance of Rs.579 Crore for MSME Sector under this scheme till 30-09-2016 where as per the data available with us, the performance of other Banks is “ZERO” for providing Finance to MSME Sector of the State which shows the negative attitude of the other Private Banks towards the growth of MSME Sector in our State who always working only for the collection of deposits from the people of our State & not providing finance to needy MSME Units under this scheme,” Mahajan said.

FOIJ urged Reserve Bank of India to take strict action against those Banks who failed in implementation of SOPS announced by Prime Minister to ensure that necessary Finance should be provided to the MSME Sector of our State under the various schemes of Government of India. (KNN Bureau)