Guwahati, Jan 30: Expressing concern over the poor credit ratio in Assam, K.H. Muniyappa, union minister of state for micro, small and medium enterprises (MSME), Wednesday said banks would be told to enhance credit flow to small units in the state.
Interacting with the media after meeting industry ministers of the northeast in Guwahati, he said his ministry wanted to reach out to the young and educated people to set up new enterprises.
“All the commercial banks should achieve a 20 percent growth in credit year-on-year to micro and small enterprises and strictly adhere to the allocation of 60 percent thereof to micro enterprises to ensure enhanced credit flow,” he said.
The credit ratio in Assam is only 40-50 percent at present while the national average is about 70 percent.
Muniyappa also met Assam Chief Minister Tarun Gogoi and urged him to instruct the deputy commissioners of all districts to prepare the list of beneficiaries of the Prime Minister’s Employment Generation Programme within three months for extending loan assistance.
“Banks have been instructed to advance the loan without asking for collateral guarantee,” he said.
Additional Secretary and Development Commissioner, MSME, Amarendra Sinha said the ministry had called for strict implementation of Reserve Bank of India norms for micro and small units – a move that can boost the financing for the MSMEs.