MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a) to (e) A Statement is placed on the table of the House.
STATEMENT REFERRED TO IN REPLY TO PART (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 452 TO BE
ANSWERED ON 04. 08 2009
(a): As per the information furnished by the Reserve Bank of India (RBI), the loans
outstanding against the micro and small enterprises (MSEs) from the public sector banks
during the last three years is as under:
As at the end of Loans outstanding (Rs. in crore)
March, 2007 1,02,550
March, 2008 1,51,137
March, 2009 1,90,968 (Provisional)
(b)&(c): The major difficulties faced by the MSEs mainly relate to lack of adequate
credit availability, technology and marketing constraints, infrastructure bottlenecks and
enhanced competition due to liberalized trade regime. The major schemes/programmes implemented
by the Government for assisting the MSE sector in overcoming these difficulties are Credit
Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Performance and Credit Rating Scheme,
Cluster Development Programme, National Manufacturing Competitiveness Programme, Prime
Minister`s Employment Generation Programme and Market Development Assistance Scheme. In
addition, some of the initiatives taken for the promotion and development of the MSE sector
and for enhancing their competitiveness include enactment of the Micro, Small and Medium
Enterprises Development Act, 2006, implementation of the `Policy Package for Stepping up
Credit to the Small and Medium Enterprises` announced in August 2005 and the comprehensive
`Package for Promotion of MSEs` announced in February 2007.
(d ) & (e): As announced in the Union Budget 2009-10, it is proposed to provide a special
fund of Rs. 4,000 crore out of Rural Infrastructure Development Fund (RIDF) to Small
Industries Development Bank of India (SIDBI) to incentivise Banks and State Financial
Corporations (SFCs) to lend to MSEs.