Banks Shy For PMEGP

While Odisha has made a quantum jump in number of accounts in Small Enterprises in the State, Commercial Banks are intriguingly going slow in providing them the much needed credit support.

While by 31 March, 2018, there were 1.52 Lakh Small Enterprises accounts, it has made a huge jump with 7.90 Lakh accounts by 31 March 2019.

Top Administrators in MSME Sector was astonished over such a huge and mindboggling rise in Small Enterprises in the State.    

However Bankers are keeping the loan application on Prime Minister’s Employment Generation Program (PMEGP) pending for months together.

Such action by various bankers is posing as stumbling block for generation of employment and bottleneck for Small and Micro Sector growth.

This issue was raised in the recently held State Level Bankers’ Committee (SLBC) meeting and bankers were asked by State Authorities to speed up credit approval and loan disbursement.

Senior Officers in Department of MSME (DoMSME) have expressed concern for 4511 pending PMEGP proposals and have urged the bankers, either to sanction or reject the proposals preferably within 30 days from the date of application.

As the Bankers are just keeping the applications pending and not taking a decision crowding of applications posing problem for the Department.

DoMSME is not able to send revised applications and crowding of applications are resulting in poor quality of scrutiny.

With crowding of applications, Bankers are not going for qualitative scrutiny, both method and pace of scrutiny of applications are not up to the mark, pointed out the senior officer.

PMEGP is the Flagship Program of Government of India to generate employment opportunities by setting small and micro enterprises in Rural and Urban Areas of the State.

Government of India in Ministry of MSME(MoMSME) has been following up the cases of PMEGP, which is also concerned over the matter.

Arun Kumar Panda, Union Secretary MoMSME has also expressed concern over the lackadaisical approach of the Bankers and District Level Officials.

Recently in a Review Meeting with the Major Banks, it came to light that District Level Task Force Committee (DLTFC) Meetings are not held regularly.

DLTFC is the organization, which scrutinizes the applications properly, so that Bankers will be processing these applications for early sanction and release of funds.

As the DLTFC meetings are not held regularly at district level, in which Collector is the Chairman, overcrowding of applications leading to unsatisfactory scrutiny, pointed out a senior official.

Most importantly, weaker section of the society are targeted in PMEGP and delay in clearance of applications and sanction of credit to these entrepreneurs is major cause of concern of the Government, said he.

Under this backdrop, both Bankers and District officials will have to take proactive role in this regard, said an officer.

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