MSME Gets More Credit

Principal Secretary MSME L N Gupta today said adequacy and timely credit mobilization is of paramount importance for establishment of MSMEs and growth of exports.

While addressing a seminar on “Credit Mobilization to MSMEs and Exporters” at the MSME trade fair here, Mr.Gupta said that the credit flow to MSMEs was to the tune of Rs.8038 crore, which got nearly doubled to Rs15,444 crore during 2015-16.
As per the Potential Linked Credit Plan prepared by NABARD during the coming financial year 2017-18 credit flow to MSMEs is likely to be over Rs.17,000 crore and therefore it is necessary that the credit is provided timely to the deserving MSME entrepreneurs.

“Priority is needed to be accorded to sectors like food processing, chemical and allied industries, ancillary and downstream industries etc”, Mr.Gupta added.
Talking about the exports, the Principal Secretary said that up to December last year the value of exports have crossed over Rs.25,700 crores vis-a-vis Rs.19875 crores during 2015-16.
He added that shortly the DEPM and all other export related State and Central Government offices will be relocated to Raptani Bhawan.

Principal Secretary Finance T K Pandey said that State government is committed to help the MSME entrepreneurs and exporters in providing credit support through the banks and other financial institutions.

He called upon all the banks to proactively release credit to MSMEs with positive mind set.

Mr.Pandey spoke about the newly introduced Insolvency and Bankruptcy Code-2016, which provides an exit route to the unsuccessful entrepreneurs and the GST, where payment of tax, maintenance of ledger etc. will be online.

“There would be a level playing field between 
domestic producers and importers. MSMEs with less than Rs.20 lakh turnover will not be required to register under GST,” Mr.Pandey added.
NABARD Chief General Manager KC Panigrahisaid that NABARD is financingboth the farm and non-farm sectors, including MSMEs.

“As much as 40 per cent of the totalexports of India are contributed by MSMEs and for credit flow to MSME sectors, a potential linked credit plan has been prepared by NABARD,” he said and added that a food processing fund with a corpus amount of Rs.2000 crore for financing the designated food parks is being administered by NABARD.

He pitched for the establishment of a MSME Mall in Bhubaneswar for marketing of the product and services of MSMEs and exporters of the
CGM SBI B Venugopal Reddy said SBI provides priority to MSMEs in credit facilitation.
SBI has different types of credit available to MSMEs such as fund based credit, credit based on project cost on, LC based credit, bank guarantee, pre-shipment packing credit and post-shipment packing credit, he said adding, “Besides, SBI also provides foreign currency loans for import of capital goods.”
For ease of doing business, SBI have Centralized Processing Centres (CPCs) at Bhubaneswar, Cuttack, Rourkela, Sambalpur and Bhubaneswar, Reddy said adding for loans between Rs 50 lakh to Rs 5 crore a Relationship Manager is designated.

He added that difficulties relating to credit 
flow/approval from SBI may be brought to their notice by an email for resolution.

Reserve Bank of India General Manager, SP Mohanty indicated that credit ratioof the State by the banks is less than 1 per cent.

An institutional committee and anempowered committee have been constituted to finance cluster and revival of sick units, Mr.Mohanty added.

RBI also prescribed packing credit and post shipment credit for the exporters for minimum 
180 days maximum to 360 days to the exporters, the SBI GM said adding, as per RBI guidelines, credit upto Rs.25 lakhs is to be provided by the banks without collateral security.

Further, loans upto Rs 2 crore are covered under CGTMSE and in case entrepreneur face any difficulty in approval of their loans, credit flow, they can lodge complain to RBI through the e-mail
Regional Head of EXIM Bank, Kolkata Subhasis Dhal said that his bank is providing financial assistance by way of foreign currency loan and export credit loan to exporters.
Mr.Gupta urged the EXIM Bank to open a branch at Bhubaneswar.

Deputy Commissioner, Excise & Customs, Vishnu Kumar said that the ports of Odisha are handling only bulk cargos.

“Steps are being taken for containerization of the upcoming ports like Dhamara and Paradeep and while steps are being taken to provide direct link to Kualalumpur in Malaysia from the air cargo terminal at Bhubaneswar Airport to facilitate the exporters to send their containerized cargo from Odisha”, said he.

eXTReMe Tracker
Powered by Catalyst IT Solutions Pvt. Ltd.