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GM Technology at last! No Maha Koottani in TN... More Shakti to resource mobilisation... Welcome thrust on trade in Modi’s foreign visits... Secularism and anti-Hinduism Banning booze... Colour-Chem’s colourful KRVS Editor's Says China invests in India London, London Narayan Marketing expert Balagopal is no more IPL type auction for VCs? Where is Rajaji? Preserving for the future Of course, Gujarat is vibrant Making ‘my Amaravati’... IPL - no surprise this scam Land reclamation from sea appears cheaper! The ‘Jayanthi Tax.’ Fortune 500 review Tribute – Manikam Ramaswami Focus on quality of power - its only around 170-180V Solar, solar everywhere … Quality silica from Neyveli PPP mode for upgrading Corporation Hospitals Shaming of Tamils by Tamil farmers at Delhi Streamlining mandatory third party cover Recognition to role of NBFCs.... An informal presentation - analytical, forward locking... West Bengal: mindless malignancy Welcome changes that testify to Jayalalithaa’s return to health TELANGANA at last…BUT The sea- saw battle continues... Godspeed, Chief Minister JJ Solar thermal shines… There was flood of milk. Reason: no milk commissioner! Vibrant Gujarat Sri Lanka votes for change Convulsions in The Hindu Five star activism stalls development activity The Ports’ Pasha expands into Tamil Nadu Waning interest in public discussions… Naidu will soon build a new Hyderabad Auto components surge… All eyes on Sankara Nethralaya Computation of GDP – conundrums continue Tough task taking states together to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Modi storms Silicon Valley Rahman at CIC SoA @ 80 PC’s preference for professionals Robber barons everywhere GNS - 100: our first subscriber Revive development banks... Nuclear power at the nucleus TIAM turns a full cycle Another Indian music maestro at the UN L&T- the specialty of special purpose vehicles Medical costs hit the roof... For whom the bell tolls? Small units prefers to remain small... A C Muthiah – his munificent bequeaths to science He saved millions from starvation... Rs.1600 crore paper board plant of TNPL Align crops to agro climate endowments… The rise and fall of Annamalai University Bihar – Nitish Kumar adopts the Lalu model Why land prices zoom in TN? 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Gay abandon in pricing When nations steal growth from one another… Odisha: spectacular win by Naveen Patnaik Editor's Notes Parliament in paralysis... WTO Meet: resolved to meet again Delhi is distant Don’t seem to feel the pulse… …and of a popular trade leader TN – agglomerate land holdings without alienating ownership Readers' Mail Shipping woes of Chennai companies Intellectual of rare qualities Maximising the micro pricing … Moily’s bold thrust Tribute Welcome GST Padma Bhushan for A Ramakrishna Adapt Vajpayee dinner diplomacy An enemy’s enemy is a friend The rise and rise of KCP TGS- The king storyteller An inexplicable neglect Russi Mody – a tribute Noble nonagenarians... The Jan Dhan bonanza Put expensive assets created to use... Why this malaise in medical education? Measuring roof tops in terms of KW/MW Shanti and Sadhana through Music TN accounts for the largest recruits by the IT sector More tributes to GR Protest masters... 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Breaththrough in malaria control Permanent secretariat for TN GIM Multi-faceted Venkat Strengthen the base... Infrastructure funding – lessons learnt Towards speedy justice S V Raju – a ‘good’ true liberal Haul over the coal Delhi returns to BJP Diamond jubilee of Egmore Samskrt School When the President was rendered homeless… Cleaning Ganga – relocate tanneries and install electric crematoria The ‘Ayyo-yes’ is no more Eternal support for capitalisation of PS banks Silver Years of Madras Musings A glass full of corruption
 
Funding the un-funded

Noted chartered accountant, columnist and Convenor, Swadeshi Jagran Manch, S Gurumurthy (SG), has been campaigning for the recognition of the contribution of several lakhs of small business units. SG has been referring to the substantial share of micro, small and medium enterprises to the nation’s GDP, employment and exports. In extensive travels to different parts of the country he has been interacting with hundreds of entrepreneurs from these sectors. He has been stressing on their rich contributions despite the severe constraints they face in accessing needed funds on fair terms. SG has been receiving a good deal of support from Prof R Vaidyanathan of IIM-Bangalore. The learned academic has also been passionately advocating the case of micro, small and medium enterprises (MSMEs).

This great work has received notice, redressal and action at the hands of Finance Minister Arun Jaitley. In his budget for 2015-16, Jaitley proposed, “to create a Micro Units Development Re-Finance Agency (MUDRA) Bank with a corpus of Rs 20,000 crore and credit guarantee corpus of Rs 3000 crore. MUDRA Bank will re-finance micro finance institutions through a Pradhan Manthri Mudra Yojana for lending. Priority will be given to SC/ST enterprises. Just as we are banking the un-banked, we are also funding the un-funded.”

Jaitley pointed to the NSSO Survey of 2013 that estimated 5.77 crore small business units, mostly individual proprietorships, which run small manufacturing, trading or services activities. “Only four per cent of such units receive institutional funding. Providing access to institutional finance to such micro/small business units would turn them into strong instrument of GDP growth and also employment,” states a press note from the Ministry of Finance.

The Ministry also proposes changes in priority sector lending (PSL) norms. It estimates total credit extended by banks in PSL at Rs 2,154,356 crore. Changes proposed in PSL include:

  • A separate sub-limit of up to 8 per cent for PSL
  • Loans for agri processing and agri infrastructure to be included in PSL without any limit on the size of loans
  • Loans to medium enterprises included in PSL
  • Loans up to Rs 5 crore for social infrastructure like schools, healthcare, drinking water, sanitation… under PSL for towns of less than one lakh population.
  • Renewable energy sector added to PSL with a limit of Rs 10 crore loan
  • Progress to be monitored quarterly

 

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