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Credit Boost For MSME

Bhubaneswar: With Credit Flow to MSME Sector is on rise, and it is expected that more funds will flow to the sector during Covid Pandemic, officials feel.

Principal Secretary Finance, Vishal Dev has reviewed funds flow to various sectors recently and has urged the bankers to continue their efforts in extending more credit to the deserving sectors.

Credit flow to MSME Sector has shown a rising trend in the State with more than 100 Percent achievement in last three years.

Continuous overdrive by the senior officials of the State Government and rise in number of good MSMEs, bankers are taking lot of interest, officials say

Mr.Dev pointed out that achievement against the target under MSME Credit was 128 Percent in 2020-21.

By 31 March , 2021, total MSME Credit target was Rs.30,457.99 Crore, while achievement was Rs.38,891.37 Crore.

Total MSME Credit flow by 31 March, 2020 was Rs.34,298.76 Crore, which was 180.32 Percent achievement of Annual Credit Plan(ACP) as the target for the financial year was Rs.19,021.27 Crore.

The Credit Projection for MSME Sector has been enhanced by around 43 Percent to Rs.60,001.27 Crore over the year 2021-22.

However the Commercial Banks have been impressed upon to increase their portfolio of Crop Loans as their performance in this sector is not up to the mark.

Principal Secretary Finance, Mr.Dev has pointed out that so far Crop Loan is concerned, Commercial Banks have only 27.49 Percent share of the entire credit in this primary sector.

Odisha, being an agrarian state, funding in Agriculture Sector requires quantum jump and State Government is taking proactive steps to mitigate all impediments that come in the way of adequate flow of credit to these areas, pointed out a senior official.

Mr.Dev has said that share of Commercial Banks in total Agricultural Credit was 47.26 Percent as on 30 September, 2021 and so far Crop Loan is concerned it was 27.49 Percent.

So, on both the counts Commercial banks are lagging, while Cooperative Banks are much ahead of them.

On Crop Loan sector Cooperative banks have extended 64.57 Percent of Credit and these banks are leading in this sector.

Crop Loan achievement was 82.39 Percent as target for 2020-21 was Rs.29,878.94 Crore, where as achievement was Rs.24,617.86 Crore by 31 March, 2021.

Fishery Sector is also getting less attention of bankers as the target for 2020-21 was Rs.1,088.73 Crore, where as achievement was Rs.460.09 Crore. Percentage was 42.45, which was much low.

In Odisha Fishery sector is looking up as a large number of entrepreneurs are evincing keen interest in the sunrise sector.

Dairy Sector also facing credit crunch as target for 2020-21 was Rs.1,767.50 Crore, however achievement by 31 March, 2021 was Rs.628.91 Crore having only 35.58 Percent achievement.

Both these sectors are highly employment generating sector and Odisha is the first state to double the farmers’ income in this sector.

So more funding for Crop Loan, Fishery and Dairy sector have been advised, said sources.