MINISTER OF THE STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI MAHABIR PRASAD)
(a): The micro, small and medium enterprises (MSME) sector is a heterogeneous sector,both
in terms of size of enterprises and its sectoral composition. Hence, the problems faced by
the sector are diverse.However, some of the common problems faced by the sector relate to
lack of timely and adequate credit,obsolete technology, infrastructure bottlenecks,marketing
constraints, delayed payments of their dues by large units, enhanced competition due to
liberalized trade regime, etc.
(b): The constraints faced by the MSMEs in accessing the required credit facilities from
institutional sources are inadequate exposure to banks/ fmancial institutions, elaborate
procedural requirements, cost of credit, high risk perception, etc. Under the Lead Bank
Scheme, each district has been assigned to a scheduled commercial bank and the Lead District
Manager is the nodal officer in the District.
(c) to (e): There is no separate fund for enterprises in the unorganized sector.In one of its
reports, the National Commission for Enterprises in the Unorganised Sector has recommended
creation of a separate fund for enterprises in the unorganised sector. For this purpose,no
funds have been allocated.However, as per the information furnished by the Reserve Bank of
India,the loans outstanding against the micro and small enterprises from the public sector
banks during the last 3 years and the current year (as at the end of September 2008) is as
under:
As at the end of Loans outstanding (Rs, crore)
March 2006 82,434
March 2007 1,02,550
March 2008 1,48,651 (Provisional)
September 2008 1,56,748 (Provisional)
