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MSME credit may grow 10% in 2013-14

State govt has unveiled a Rs 1600 crore investment plan aimed at creation of 32,000 new units in the MSME sector in the 12th Plan period

Bhubaneswar January 16, 2014 

The cumulative credit flow to the MSME (micro, small & medium enterprises) sector is expected to reach Rs 15387 crore by the end of 2013-14, meaning a growth of approximately 10% over Rs 13989 crore disbursed till last fiscal.

"For the current fiscal, we have targeted to create 7000 new units in the MSME sector, promising employment for 37,000 people. The state government is facilitating credit flow to such units and the cumulative disbursal is expected to reach Rs 15,387 crore by the close of this fiscal”, said secretary (MSME) Panchanan Dash.

Dash said the state government would soon sign a memorandum of understanding (MoU) with National Small Industries Corporation (NSIC) to facilitate credit linkage for the MSMEs.

Since NSIC has signed MoU with various nationalized banks for credit facilitation to the MSMEs under its bank tie-up scheme, the units in Odisha can also avail credit under the arrangement.

"I understand NSIC has signed a MoU with the West Bengal government for setting up business incubation centres in that state with special focus on backward and less industrialized regions. The Odisha government would like to have a similar MoU arrangement with your organization for the benefit of MSMEs of our state. We have 30 district industrial centres in the state wherein MSME credit proposals can be mobilized and forwarded to NSIC for sanction of loan under bank tie-up scheme”, Dash had written to chairman cum managing director of NSIC in September last year.

NSIC has agreements with 23 major banks in the country including the nationalized and private banks

MSMEs in the state that have gone into production have invested Rs 4969.59 crore.

Food and allied industries leads the pack with an investment of around Rs 1349.93 crore. There are about 26498 food and allied units in the state that have generated 142016 jobs. This is followed by repairing and servicing industry with an investment of about Rs 966.23 crore.

In toto, the MSMEs in the state have provided employment opportunities for 7,06, 342 persons.

Odisha is among the 10 leading states in the country in terms of employment generated by the MSME sector, according to Union ministry of MSME's annual report for 2012-13. As many as 3.32 million people are employed in the MSME sector in the state.

The state government has unveiled a Rs 1600-crore investment plan aimed at creation of 32,000 new units in the MSME (micro, small & medium enterprises) sector in the 12th Plan period (2012-17).