MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) & (b) :- Yes, Sir. Reserve Bank of India (RBI) has issued instructions to all banks on some of the recommendations of the Ganguly Committee vide circular dated 4th September, 2004. The
instructions for the banks briefly stated are as under:
(i) Besides the 60 clusters identified by the Ministry
of Small Scale Industries for focused development of SSIs, banks
may identify new clusters and also adopt cluster based
approach for financing.
(ii) Lead Banks may consider sponsoring specific projects as well as widely publicize the successful working models of
NGOs operating in South India and some other states
which service small, tiny and individual entrepreneurs.
(iii) Banks operating in the North East region may
consider sanctioning higher working capital limits to SSIs, based
on their commercial judgement due to the peculiar
situation of hilly terrain
and frequent flood causing hindrance in the
transportation system.
(iv) Banks may consider exploring new instruments
for promoting rural industry
and to improve the flow of credit to rural artisans,
industries and rural entrepreneurs.
(c) & (d):- Yes, Sir. Ministry of Small Scale Industries had identified 60 clusters focused development and advised RBI
to disseminate the relevant information to all public sector banks for initiating further necessary action and incorporating
their credit requirements in the State Credit Plans.
Accordingly, RBI has forwarded the details of the 60 clusters so
identified all over India (including Madhya Pradesh)
to the SLBC Convenor banks to constitute a special group of bankers
and State Government Officials to resolve various
issues arising on financing the clusters and report the developments to
SLBC. RBI has also advised its Regional Offices to
ensure that the issue on financing of the identified clusters is taken
up at the SLBC meetings.
