Odisha CM asks banks to extend more loans to first generation entrepreneurs
Updated: Jan 09, 2015 01:20:16pm
Bhubaneswar, Jan 9 (KNN) Odisha Chief Minister, Naveen Patnaik has asked banks to be proactive in giving loan to micro, small and medium enterprises, particularly to first generation entrepreneurs.
Speaking at the inaugural function of the Odisha MSME Trade Fair 2015 here recently, Patnaik commented on the pathetic performance of banks in providing credit to MSME units, according to a Business Standard report.
"The coverage of credit to the (MSME) entrepreneurs of the state is dismally poor. During the current financial year, as on September 2014, only 6.7 per cent of the credit has been covered under the credit guarantee scheme of Government of India," the report quoted the Chief Minister as saying.
Encouraging banks to follow guidelines for rehabilitation of sick units as provided by the working group set up by the RBI, Patnaik also informed that the state government is planning to bring out a procurement policy for MSEs.
Echoing similar sentiments, State MSME minister, Jogendra Behera said that to encourage new starts ups in large numbers, banks should not insist on collateral security up to the financing level of Rs 100 lakhs for MSME entrepreneurs as per the guidelines.
In Odisha, according to the latest census, there are about 1.5 million MSME enterprises providing employment to 3.3 million people. Further, the state is among the top ten states in generating employment through MSME sector, the media report said. (KNN Bureau)
Speaking at the inaugural function of the Odisha MSME Trade Fair 2015 here recently, Patnaik commented on the pathetic performance of banks in providing credit to MSME units, according to a Business Standard report.
"The coverage of credit to the (MSME) entrepreneurs of the state is dismally poor. During the current financial year, as on September 2014, only 6.7 per cent of the credit has been covered under the credit guarantee scheme of Government of India," the report quoted the Chief Minister as saying.
Encouraging banks to follow guidelines for rehabilitation of sick units as provided by the working group set up by the RBI, Patnaik also informed that the state government is planning to bring out a procurement policy for MSEs.
Echoing similar sentiments, State MSME minister, Jogendra Behera said that to encourage new starts ups in large numbers, banks should not insist on collateral security up to the financing level of Rs 100 lakhs for MSME entrepreneurs as per the guidelines.
In Odisha, according to the latest census, there are about 1.5 million MSME enterprises providing employment to 3.3 million people. Further, the state is among the top ten states in generating employment through MSME sector, the media report said. (KNN Bureau)
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