Ad Here  
Auto components surge… Fortune 500 review Infrastructure funding – lessons learnt Editor's Says Banning booze... No engine for this car Parliament in paralysis... An informal presentation - analytical, forward locking... Vibrant Gujarat Solar, solar everywhere … B H Kothari - a tribute Colour-Chem’s colourful KRVS An enemy’s enemy is a friend Intellectual of rare qualities Put expensive assets created to use... IAS invades NDDB... S Ramanathan – a versatile musician, musicologist The nuclear option A yen for wastage… Not just in-laws (and outlaws); they’ve renowned academics at the helm! A friendly business group Engineering seats go abegging Naidu will soon build a new Hyderabad ONGC at KG Basin The brown list of Venkitaramanan 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 EVM is tamper-proof TIAM turns a full cycle Adharma of opposition politics Shipping woes of Chennai companies Poor representation for Kerala and TN in Cabinet Dr C Rangarajan returns to Chennai Fall in crude prices help in oil sector reform Inflation: are we emulating Argentina and Brazil? Editor's Notes The ‘Ayyo-yes’ is no more GNS - 100: our first subscriber Readers' Mail Scientists urged to take up farmer-oriented research Tribute CII projects higher growth… CRS, a jewel among managers, is no more. West Bengal: mindless malignancy There was flood of milk. Reason: no milk commissioner! Shaming of Tamils by Tamil farmers at Delhi Shanti and Sadhana through Music Another Indian music maestro at the UN Cleaning Ganga – relocate tanneries and install electric crematoria Kinetic Karnataka Gay abandon in pricing Godspeed, Chief Minister JJ More tributes to GR Come elections, come advertisements... Moily’s bold thrust Tatas moving out of urea production... L&T: focus on infrastructure and more infrastructure… Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Making ‘my Amaravati’... Welcome changes that testify to Jayalalithaa’s return to health Liberal imports idling indigenous capacities Where a state respects its litterateurs… Welcome GST How Air-India loses customs... Noble nonagenarians... Revving up the manufacturing sector R Sridhar steps down as CEO of Shriram Capital Music happens Delhi Chalo... The sea- saw battle continues... Pharma – overdose of copying Welcome focus on core competence Remembering Indira Sivasailam... Align crops to agro climate endowments… Alexa – Talking Wikipedia Airlines in India: cost and space Protest masters... The few handicaps... Like Hinduism: many paths to reach God... Funding the un-funded When the President was rendered homeless… Permanent secretariat for TN GIM Contrarian cousins Road development slows down An inexplicable neglect A Grand Finale for SN’s MS centenary at the US… Solar thermal shines… Online not in line with brick and mortar businesses... Padma Bhushan for A Ramakrishna Plummeting profits of PSBs When small is no larger beautiful.. Paytm karo... PC’s preference for professionals Which side are you, Montek? Russi Mody – a tribute Small units prefers to remain small... Revive development banks... Breaththrough in malaria control Measuring roof tops in terms of KW/MW Should we change the official year? TGS- The king storyteller The star of Spencers is no more Return to king coal for urea... A proud Madrasi Shale gas and its shallow future He saved millions from starvation... Things happen by accident and not by design... The why of tax incentives When online building permits work…. The power-full Hindujas Adapt Vajpayee dinner diplomacy When nations steal growth from one another… A C Muthiah – his munificent bequeaths to science Welcome thrust on trade in Modi’s foreign visits... Tribute – UCAL Selvan… Recognition to role of NBFCs.... London, London Narayan Lesson from Chandrababu Naidu Delhi is distant… A welcome initiative by the judiciary IPL type auction for VCs? CIPET hqrs to stay at Guindy – for the present? Roaring Ro-Ro facility Robber barons everywhere Tatas moving out of urea production... Air Asia India will set new benchmarks for budget travel No Maha Koottani in TN... Sweet news for TN sugar mills SoA @ 80 GM Technology at last! Medical costs hit the roof... All eyes on Sankara Nethralaya Towards speedy justice Quality silica from Neyveli Waning interest in public discussions… For whom the MIDS bell tolls? The Swadeshi Trump Fuel for thought Naidu’s return augurs well for Seemandhra Rahman at CIC Streamlining mandatory third party cover The Gulf aviation boom Secularism and anti-Hinduism Lalu’s envy, India’s pride F C Kohli - his concerns all embracing Why land prices zoom in TN? A rich pool of talent not utilised…. Poor quality of university VCs Mu Sigma – is no more Make standards certification mandatory... The Jan Dhan bonanza Preserving for the future Limit foreign borrowings to hi-tech, export potential projects... Sweeter prospects for sugar Multi-faceted Venkat He continues the focus on social amelioration Tribute – Manikam Ramaswami L&T- the specialty of special purpose vehicles Kudos to NDTV... Tough task taking states together Build close rapport with business leaders Valli, they are more marginalised Whistle-Stop Tour of Raghuram Rajan TN-leverage strength of BHEL, NLC... Wanted: a second airport for Chennai Focus on quality of power - its only around 170-180V A glass full of corruption Tax agriculture Land reclamation from sea appears cheaper! Why this malaise in medical education? The Ports’ Pasha expands into Tamil Nadu Where is Rajaji? A Grand Finale for SN’s MS centenary at the US… A more liberated TN… Of course, Gujarat is vibrant China invests in India Modi and the lady Bihar elections - the Rajaji formula worked Don’t seem to feel the pulse… Eternal support for capitalisation of PS banks EEC at the National Media Centre Cement prices continue to rise… Nuclear power at the nucleus CSR and CMI: promise of another Srinivasan Ramanujan... Wise Presidents Fortune for Indian Airlines Convulsions in The Hindu TN – agglomerate land holdings without alienating ownership Modi storms Silicon Valley Tihar, Puzhal not different from Parappana Agrahara TELANGANA at last…BUT TN accounts for the largest recruits by the IT sector Delhi is distant Increasing non co-operation of state leaders Discoms deserve better… New IT products of Ramco in the pipeline… A think tank for Chennai Haul over the coal Insurance companies bleeding, yet no decision on increasing FDI limit! Cutting the nose to spite the face Reliance’s TV – 18 ready to launch Tamil News Channel Diamond jubilee of Egmore Samskrt School Excel Generators provide the vital back-up Telangana in top gear… Tribute – M V Murugappan Muffled voices for merit… Five star activism stalls development activity WTO Meet: resolved to meet again Demise of a media baron... When TN politicians can emulate Kerala's Computation of GDP – conundrums continue Sri Lanka votes for change The ‘Jayanthi Tax.’ More heat than light A professional at the helm of IRDA... Strengthen the base... Quality education through the PPP mode More Shakthi to Das’ elbow IPL - no surprise this scam For whom the bell tolls? Gas is the way forward This scant respect for Law MHC should not return to its old indisciplined ways Silver Years of Madras Musings S V Raju – a ‘good’ true liberal Building loyalty through the stomach Boy, can you beat these? The rise and fall of Annamalai University Polls and promises Bihar – Nitish Kumar adopts the Lalu model The balancing act Marketing expert Balagopal is no more Mersal magnified Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Maximising the micro pricing … Kulandai was a giant Rs.1600 crore paper board plant of TNPL When Ratan Tata visited SRM No mega rail project for Tamil Nadu More Shakti to resource mobilisation... Delhi returns to BJP PPP mode for upgrading Corporation Hospitals Odisha: spectacular win by Naveen Patnaik …and of a popular trade leader The rise and rise of KCP
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


Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236