Nitin Gadkari's new MSME credit scheme focussing on SC/ST groups to come out in a month
Gadkari told the Rajya Sabha that credit limits of World Bank and Asian Development Bank will be used to provide loans to SMEs, which would help provide employment opportunities to the poor.
A new scheme is being worked out to encourage employment generation by MSMEs in the country, with special focus on scheduled castes and tribes, MSME Minister Nitin Gadkari told the Rajya Sabha on Monday, adding that the "policy will come within a month."
He said while replying to questions that the credit limits of World Bank and Asian Development Bank will be used to provide loans to SMEs, which would help provide employment opportunities to the poor.
Gadkari added that small and medium enterprises contribute 29 percent of India's GDP and provide employment to 11 crore people.
"The aim is to raise this target to 50 percent of GDP and increase the number of people getting employment from SME sector," he said, adding, “The government is working on bringing a new scheme that would provide employment opportunities as talks are on with the World Bank and Asian Development Bank and their credit limits would be used to provide credit to SMEs.”
"The government was evolving such a scheme that would lay emphasis on creating more employment opportunities, with special focus on scheduled castes and scheduled tribes. Emphasis will also be laid on tribals and rural agriculture related activities," he said.
Gadkari also informed the House about the portal www.psbloansin59minutes.com which was launched by a public limited company, 'Online PSB loans Ltd', in which SIDBI and other public sector banks hold majority stake. The portal provides in-principle approval of loans for MSMEs in 59 minutes.
The portal initially provided in-principle approval of loans for amounts from Rs 1 lakh to Rs 100 lakh and recently some banks have started considering in-principle approval of loans up to Rs 500 lakh, Gadkari said.
The same portal has tied up with 20 public sector banks, four private sector banks and a cooperative bank, the minister informed.
"A total of 55,635 cases with total loans of Rs 16,174 crore have been sanctioned principally under the portal as on March 31, 2019 and a total of Rs 12,683 crore has been financially sanctioned in 45,216 cases. So far, a total of Rs 4,746 crore has been disbursed in 20,303 cases," the minister told the Rajya Sabha.
He said the portal is helpful as it integrates the income tax, GST and bank accounts of those seeking loans and lends credibility to the credit giving system.
Recently, Gadkari had said that the government plans to develop a portal for creating a marketplace like Alibaba where all stakeholders from India's MSME sector can find the demand and supply inputs.
A top official also said the government is in talks with World Bank, Asian Development Bank, and KfW Development Bank to see how they can invest more in the country's MSME sector.
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