Odisha banks asked to clear pending loans to MSMEs by end of the month
State commercial banks in Odisha have been asked by the state government to speed up sanctioning and disbursement of loans to MSMEs against pending loan applications by the end of February 2019, reported KNN. The instructions were passed on by LN Gupta, Additional Chief Secretary, MSME, to bankers at a sub-committee meeting of the State Level Bankers’ Committee (SLBC) on MSMEs.
At the meeting, it was also discussed that Rs 51 crore was disbursed through the Prime Minister Employment Guarantee Program (PMEGP) in 2018-19 for the promotion of 2,079 MSME units.
Those who had repaid the first loan under the PMEGP and were ready to provide a 10 percent contribution were informed that they could avail a second loan for expansion and upgradation of their projects, up to an amount of Rs 1 crore. The maximum subsidy on the second loan would be Rs 15 lakh.
PKC Dash, SLBC Convenor, UCO Bank, said, “469 branches of various commercial and Gramya Banks have been declared as specialised MSME bank branches to cater to the requirements of MSMEs in Odisha.” At the meeting, SIDBI representatives said that MUDRA loans of Rs 1,152 crore sanctioned to 62,077 loan beneficiaries have been covered under Credit Guarantee Fund for Micro Units (CGFMU).
The state has been actively promoting the MSMEs sector through technology upgradation and boosting exports. Recently, the Odisha Assembly of Small and Medium Enterprises (OASME) and Khazar Electric Company (KEC) from Iran signed a Memorandum of Understanding (MoU) for the transfer of technology and production of equipments for agriculture, food processing, and waste management.
The Odisha government also rolled out its Handicrafts Policy 2019 to create a vibrant and sustainable handicraft sector in the state. The policy seeks to focus on the handicraft sector in the state that is renowned for its craftsmanship. It also seeks to leverage the unique selling proposition of the skilled workforce and help enhance Odisha's share of exports of handicraft goods.
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