Banks assure easy credit flow to MSMEs under schemes like PMEGP, CGS: Muniyappa
Updated: Dec 10, 2013 12:00:46pm
New Delhi, Dec 10 (KNN) All leading Public Sector Banks have assured their proactive support to enable easy flow of credit to the MSMEs, under the schemes like Credit Guarantee Scheme, MSME Minister K H Muniyappa has said.
Muniyappa said this on the side-lines of the review meeting yesterday on Prime Minister’s Employment Generation Programme (PMEGP) with the CMDs of all Public Sector Banks.
Over 25 banks including SBI, Canara Bank and United Bank were part of the meeting.
"We had a meeting with heads and representatives of various banks today and they have assured us that they will help ensure easy flow of credit to SMEs and help implementing schemes like Credit Guarantee Scheme and Prime Minister's Employment Generation Programme (PMEGP)," Muniyappa said.
The Minister highlighted key issues like availability of credit in the meeting and sought full cooperation and commitment from bankers for addressing the issue of employment in the country especially for the large youth population in the country.
The Minister said that since the inception of PMEGP in 2008-09, more than 2.21 lakh new entrepreneurs have been assisted upto March 31, 2013 and created about 20.34 lakh employment opportunities across the country and released Margin Money Subsidy to the tune of Rs 5037.00 crores under this scheme.
Under the PMEGP, urban and rural entrepreneurs in the general category can avail a subsidy of 15 per cent and 25 per cent on the project cost. In the case of weaker sections of society, a 25 per cent and 35 per cent subsidy is provided to urban and rural businessmen.
The Minister further said, “if the banks sanction even 72 per cent of the projects, which is the observed trend under PMEGP, margin money of Rs 1353.00 crore will be utilized during the year, and targets will be achieved.
Muniyappa further requested the bankers to extend their proactive support and ensure sanction of pending proposals and settlement of pending claims at banks’ level so that the PMEGP targets for the year can be achieved.
"Timely implementation of these schemes would help in the overall growth of the sector," he said.
"Under PMEGP, the ministry has set a target to set up additional 5 lakh enterprises and create 40 lakh jobs in the 12th Plan," Muniyappa said.
"We have instructed banks to achieve the year's target of 1 lakh cases before this month end, under PMEGP," he added.
He also appealed to all banks to process the eligible cases of the balance applications without the subsidy component by covering them under collateral free Credit Guarantee Scheme of the Ministry.
The Minister stated that he has been informed that the amount of Rs 757.00 crore of unspent funds towards margin money subsidy is already with the banks under PMEGP.
Addressing the issue of availability of credit in a time bound manner, Muniyappa said that to ensure that the applications are processed and sanctioned by bank in a time bound manner, the Ministry of MSME has issued directions to all the stakeholders for ensuring that within 100 days the application should be forwarded to DTFC, screened and submitted to bank, sanctioned by bank and loan should be disbursed along with release of margin money.
For the year 2013-14, minimum 100 projects per district have been allocated under PMEGP To review the progress, the ministry would convene a meeting of bankers in January, Muniyappa said.
Further, to ensure enhanced credit flow, the Prime Minister's Task Force on MSMEs has recommended 20 per cent year-on-year growth in credit to micro and small enterprises (MSEs).
The Minister also expressed that all the banks should display on their notice board for general public their eligibility of PMEGP and that no collateral security was needed under the programme.
Also present in the meeting were MSME Secretary, Madhav Lal; Chairman, Khadi Village Industries Commission, Devendra Desai; CMD of United Bank of India and Executive Directors and General Managers of as many as 25 nationalized scheduled banks.
All assured that, the pending applications with the banks will be sanctioned by December 31 and they will issue clear directions to field officers not to take any collateral security under PMEGP. (KNN/SD)
Muniyappa said this on the side-lines of the review meeting yesterday on Prime Minister’s Employment Generation Programme (PMEGP) with the CMDs of all Public Sector Banks.
Over 25 banks including SBI, Canara Bank and United Bank were part of the meeting.
"We had a meeting with heads and representatives of various banks today and they have assured us that they will help ensure easy flow of credit to SMEs and help implementing schemes like Credit Guarantee Scheme and Prime Minister's Employment Generation Programme (PMEGP)," Muniyappa said.
The Minister highlighted key issues like availability of credit in the meeting and sought full cooperation and commitment from bankers for addressing the issue of employment in the country especially for the large youth population in the country.
The Minister said that since the inception of PMEGP in 2008-09, more than 2.21 lakh new entrepreneurs have been assisted upto March 31, 2013 and created about 20.34 lakh employment opportunities across the country and released Margin Money Subsidy to the tune of Rs 5037.00 crores under this scheme.
Under the PMEGP, urban and rural entrepreneurs in the general category can avail a subsidy of 15 per cent and 25 per cent on the project cost. In the case of weaker sections of society, a 25 per cent and 35 per cent subsidy is provided to urban and rural businessmen.
The Minister further said, “if the banks sanction even 72 per cent of the projects, which is the observed trend under PMEGP, margin money of Rs 1353.00 crore will be utilized during the year, and targets will be achieved.
Muniyappa further requested the bankers to extend their proactive support and ensure sanction of pending proposals and settlement of pending claims at banks’ level so that the PMEGP targets for the year can be achieved.
"Timely implementation of these schemes would help in the overall growth of the sector," he said.
"Under PMEGP, the ministry has set a target to set up additional 5 lakh enterprises and create 40 lakh jobs in the 12th Plan," Muniyappa said.
"We have instructed banks to achieve the year's target of 1 lakh cases before this month end, under PMEGP," he added.
He also appealed to all banks to process the eligible cases of the balance applications without the subsidy component by covering them under collateral free Credit Guarantee Scheme of the Ministry.
The Minister stated that he has been informed that the amount of Rs 757.00 crore of unspent funds towards margin money subsidy is already with the banks under PMEGP.
Addressing the issue of availability of credit in a time bound manner, Muniyappa said that to ensure that the applications are processed and sanctioned by bank in a time bound manner, the Ministry of MSME has issued directions to all the stakeholders for ensuring that within 100 days the application should be forwarded to DTFC, screened and submitted to bank, sanctioned by bank and loan should be disbursed along with release of margin money.
For the year 2013-14, minimum 100 projects per district have been allocated under PMEGP To review the progress, the ministry would convene a meeting of bankers in January, Muniyappa said.
Further, to ensure enhanced credit flow, the Prime Minister's Task Force on MSMEs has recommended 20 per cent year-on-year growth in credit to micro and small enterprises (MSEs).
The Minister also expressed that all the banks should display on their notice board for general public their eligibility of PMEGP and that no collateral security was needed under the programme.
Also present in the meeting were MSME Secretary, Madhav Lal; Chairman, Khadi Village Industries Commission, Devendra Desai; CMD of United Bank of India and Executive Directors and General Managers of as many as 25 nationalized scheduled banks.
All assured that, the pending applications with the banks will be sanctioned by December 31 and they will issue clear directions to field officers not to take any collateral security under PMEGP. (KNN/SD)
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