Credit flow to MSME Sector is on rise in Odisha and efforts are being taken by the State Government to scale up the funds flow to the entrepreneurs, officials say.
Continuous reviews taken up by Department of Finance and Department of MSME have resulted in scaling up credit, they admit.
Recent review of progress of Pradhan Mantri Mudra Yojana (PMMY) in Odisha during last five months reveals that all Banks and Financial Institutions have sanctioned Rs.3366.96 Crore.
According to sources, it has come to fore that out of the sanctioned amount Rs.3145.48 Crores have already been disbursed by 2 September, 2020.
PMMY covers Sishu, Kishore and Tarun categories and 7,07,659 accounts have been sanctioned with Rs.3366.96 Crore.
Total Outstanding in PMMY is Rs.3852.02 Crore, officials say.
Prime Minister Street Vendors’ Atma Nirbhar Nidhi (PM SVANidhi) Scheme is a flagship program, which has identified 43,787 eligible cases out of which 12,173 applications have been logged, while 1436 applications have been picked up and authorities have sanctioned 1573 cases, officials say.
Ministry of Housing and Urban Affairs is harping on PM SVANidhi Program for street vendors and in fact their livelihoods have been adversely affected due to Novel Corona Virus (COVID-19) Pandemic.
As the street vendors are most vulnerable Nano- Entrepreneurs serving different needs of Urban Economy, PM SVANidhi was designed to take the vendors out of perpetual indebtedness and help them to move up the economic ladder.
Street vendors can avail a collateral free loan up to Rs.10,000 for One year tenure. Incentives in the form of interest subsidy @7 Percent Per Annum and Cash Back up to Rs.1200 Per annum have been provided to promote good repayment behavior and digital transaction.
PM SVANidihi also entails enhanced next tranche of loan on early or timely payment. Street Vendors Act, 2014 seeks to empower them by making them to participate in the administration of their affairs at the city level.
Similarly performance under COVID-19 Emergency Credit by end of August was reviewed, which presents a positive picture.
Financing to MSME Sector was reviewed and it came to light that while Balance Outstanding on MSME Sector as on 31 March, 2019 was Rs. 38,627.53 Crore, it has risen to Rs.41,165.79 Core as on 31 March, 2020, officials say.
Principal Secretary MSME Satyabrata Sahu is monitoring the financing to MSME Sector with Bankers and it has resulted in scaling up credit to the sector, officials admit.