Credit flow to the MSME sector is on the rise in Odisha and efforts are being taken by the State Government to scale up the funds flow to the entrepreneurs. Continuous reviews taken up by the Department of Finance and the Department of MSME have resulted in scaling up credit.
A recent review of progress of the Pradhan Mantri Mudra Yojana (PMMY) in Odisha during last five months reveals that all banks and financial institutions have sanctioned Rs 3,366.96 crore.According to sources, it has come to the fore that out of the sanctioned amount Rs 3,145.48 crores has already been disbursed by September 2. The PMMY covers Sishu, Kishore and Tarun categories and 7,07,659 accounts have been sanctioned with Rs 3,366.96 crore. Total outstanding in PMMY is Rs 3,852.02 crore. The Prime Minister Street Vendors’ Atma Nirbhar Nidhi (PM SVANidhi) Scheme is a flagship programme, which has identified 43,787 eligible cases out of which 12,173 applications have been logged, while 1, 436 applications have been picked up and authorities have sanctioned 1,573 cases, officials say.
The Union Ministry of Housing and Urban Affairs is harping on PM SVANidhi Programme for street vendors and in fact their livelihoods have been adversely affected due to Novel Corona Virus pandemic.Street vendors can avail a collateral free loan up to Rs 10,000 for one year tenure. Incentives in the form of interest subsidy at 7 percent per annum and cash back up to Rs 1,200 per annum have been provided to promote good repayment behaviour and digital transaction.PM SVANidihi also entails enhanced next tranche of loan on early or timely payment. The Street Vendors Act, 2014 seeks to empower them by making them to participate in the administration of their affairs at the city level.
Similarly performance under Covid-19 Emergency Credit by end of August was reviewed, which presents a positive picture. Financing to MSME sector was reviewed and it came to light that while balance outstanding on MSME sector as on March 31, 2019 was Rs 38,627.53 crore.