Sops offered by PM for MSME sector give big relief: FOIJ

Excelsior Correspondent
JAMMU, Jan 2: Federation of Industries Jammu (FOIJ) has said that sops offered by the Prime Minister for the SMSE sector has provided big relief to the industrial sector.
A meeting of the members of the Federation of Industries, Jammu was held here today under the chairmanship of Lalit Mahajan chairman in which the members present lauded the sops offered for MSME Sector by Prime Minister Narendra Modi during his address to the nation on December 31,2016, which included the enhancement of Finance limit from one crore at present to two crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) & increase in the Maximum Permissible Bank Finance for working capital (MPBF) from 20% at present to 25% which will provide great relief to the ailing Industrial Sector of the State and an opportunity for the rapid growth of MSME Sector in future.
While appreciating the bold steps taken by Prime Minister for providing relief to MSME Sector by offering SOPS, the members present in the meeting informed the chairman that the number of banks created road blocks for the financing of MSME units under CGTMSE scheme during past by one and the another excuses resulting very limited finance was granted to the needy MSME’s. As per the data available with the Reserve Bank of India only 10.98% of the total credit by the Banks was sanctioned till 30-09-2016 in our State to MSME Sector under the Scheme.
” It is pertinent to mentioned here that in case of private banks operating in the State, we appreciated the steps taken by the J&K Bank who provided finance of Rs 579 crore for MSME Sector under this scheme till Sept 30, 2016 where as per the data available with us, the performance of other Banks is “zero” for providing Finance to MSME Sector of the State which shows the negative attitude of the other private banks towards the growth of MSME Sector in our State,” Majahan said.
The FOIJ demanded that Reserve Bank of India should take strict action against those Banks who failed for the implementation of sops announced by Prime Minister to ensure that necessary finance should be provided to the MSME Sector the State under the various schemes of Govt of India.