The registration of Micro, Small & Medium Enterprises (MSMEs) is an important condition for using the benefits of financial help schemes of the MSME Ministry, according to Mr Virbhadra Singh, Union Cabinet Minister for MSMEs, in a written reply to a question in the Lok Sabha yesterday,
Mr Virbhadra Singh, said, “As per ‘Quick Results : Fourth All India Census of Micro, Small & Medium Enterprises 2006-2007’ the total number Micro, Small & Medium Enterprises (MSMEs) in the country is 261.01 lakh. The percentage share of registered MSMEs is 5.94.”
Moreover, the Reserve Bank of India (RBI) has announced the issuance of detailed norms to all scheduled commercial banks on the lending to the MSMEs which offer for time span for the disposal of loan applications and loan limit for the dispensation of the collateral needs for micro and small enterprises (MSEs).
According to the recommendations of the Task Force on MSMEs under the chairmanship of the Principal Secretary to the Prime Minister, RBI has stated that the banks to attain 20% year-on-year growth in credit to the MSEs and 10% annual growth in the number of Micro Enterprises accounts.
With the aim to ensure that sufficient credit is available to the Micro Enterprises within the MSE sector, according to RBI’s norms to banks, 60% of the MSEs advances need to go to the Micro Enterprises.
The banks have been requested that the allocation of 60% of the MSEs advances to the Micro Enterprises needs to be achieved in stages such as – 50% during the fiscal year 2010-11, 55% in the year 2011-12 and 60% in the year 2012-13.
