MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a): No, Sir.
(b): Does not arise.
(c) : The amount of outstanding loans provided by Public Sector Banks to Small Scale
Industries during ths years ending March, 2005 and March, 2006 are Rs.67,800 and Rs.82,492
crores, respectively.
(d) : Besides the Government`s `Policy Package on Stepping up credit to Small and
Medium Enterprises (SMEs) sector` envisaging 20% year on year growth in credit to SMEs,
Reserve Bank of India (RBI) has fonnulated a scheme to encourage banks to establish mechanisms
for better co-ordination between their branches and branches of Small Industries Development
Bank of India (SIDBI) which are located in clusters identified by the Ministry of Small Scale
industries for co-financing of SMEs on mutually agreeable operational modalities. Modification
in Credit Linked Capital Subsidy Scheme for upgradation of SSI sector, introduction of Credit
Rating Scheme by National Small Industries Corporation and setting up SME Rating Agency by
SIDBI are some other measures taken by the Govt. and RBI to increase the credit flow to SME
sector. Further, Micro, Small and Medium Enterprises Development Act, 2006 has been enacted
to cater to the needs o` SME sector.