Odisha MSMEs Secure Rs. 44,950 Crore in Bank Loans in FY 25, Gaps Persist in Cyclone Aid

Bhubaneswar, Aug 12 (KNN) Commercial banks operating in Odisha disbursed credit worth Rs 44,950.44 crore to approximately 3.66 lakh micro, small and medium enterprises during the 2024-25 financial year, according to official data presented in Parliament.

Union Minister of State for MSME Shobha Karandlaje provided these figures while responding to a question raised by Biju Janata Dal Member of Parliament Sasmit Patra in the Rajya Sabha on Monday. The minister detailed various government initiatives supporting the MSME sector in the state.

Under the Prime Minister's Employment Generation Programme, margin money subsidy totaling Rs 53.42 crore was extended to 1,867 micro enterprises during the period. 

Additionally, the ministry's credit guarantee scheme issued 94,128 guarantees worth Rs 9,683 crore in the last fiscal year.

The minister highlighted employment generation in industrially backward districts of Odisha, identifying eleven such districts under the state's MSME Development Policy 2022. 

These include Kalahandi, Nuapada, Balangir, Sonepur, Koraput, Malkangiri, Rayagada, Nabarangpur, Kandhamal, Gajapati and Mayurbhanj districts.

A total of 4,23,760 MSME units operate across these backward districts, generating cumulative employment for over 20 lakh people during the five-year period from July 1, 2020 to July 1, 2025. 

Mayurbhanj district, which has a significant tribal population, leads with 90,712 units providing employment to over 3.22 lakh individuals, followed by Balangir district where 68,451 units employ 3.04 lakh people.

Even in the most backward region of Malkangiri district, 18,431 MSME units have created employment opportunities for 95,482 people over the last five years, demonstrating the sector's reach across diverse geographical areas.

According to the Odisha Economic Survey, the state hosts 18.7 lakh MSMEs as of January 2025. The sector comprises 9.7 lakh micro units, 8.8 lakh informal micro enterprises, 15,000 small enterprises and 1,100 medium enterprises. Bank credit to MSMEs has shown robust growth with a compound annual growth rate of 22.8 percent.

However, the minister noted a significant gap in cyclone relief support, citing a report from the Director of Industries, Odisha. 

According to this report, cyclone-affected MSMEs in the state have not received any special funding, nor has the state government announced a dedicated package for their rehabilitation and revival.

(KNN Bureau)