Kolkata December 9, 2013: To encourage bankers to lend to MSME sector under the Pradhan Mantri Employment Generation Programme, the Ministry for Micro, Small and Medium Enterprises has called for a meeting of the heads of the public sector banks on December 9.
K.H. Muniappa, Union Minister of State (Independent Charge) for Small and Medium Enterprises, toldBusiness Line here that “in some areas”, bankers were found unwilling to lend under to the scheme.
“The meeting has been called to learn about their problems and sort them out,” he added. The Minister was here to attend the Bengal Chamber Award for MSMEs on Friday.
The employment scheme was launched in 2008-09 by merging the existing employment generation programmes — Rural Employment Generation Programme and Pradhan Mantri Rozgar Yojana. Under the scheme, loans are given without any collateral.
Muniappa said the Government would stand guarantor for a significant portion of the loans and provide matching subsidies under scheme.
According to the bankers, many of such loans had turned bad as the subsidies were credited to the loan accountholders’ account.
The Minister said the Government intends to reach out to 1 lakh would-be entrepreneurs in 650 districts across the country through the scheme during 2013-14.
The Government aims to train 40 lakh people through the primary technical training centres during the 12th Plan period. “World Bank would provide funds worth 2,200 crore for the training programme,” he said. Business Line
