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B H Kothari - a tribute When small is no larger beautiful.. Come elections, come advertisements... Tatas moving out of urea production... Shale gas and its shallow future A rich pool of talent not utilised…. …and of a popular trade leader Solar thermal shines… PC’s preference for professionals Music happens Delhi returns to BJP Tribute Building loyalty through the stomach Colour-Chem’s colourful KRVS Adharma of opposition politics Haul over the coal Excel Generators provide the vital back-up Breaththrough in malaria control How Air-India loses customs... The ‘Jayanthi Tax.’ SoA @ 80 An inexplicable neglect Things happen by accident and not by design... Parliament in paralysis... Engineering seats go abegging Airlines in India: cost and space London, London Narayan Revving up the manufacturing sector A professional at the helm of IRDA... TN accounts for the largest recruits by the IT sector Demise of a media baron... Should we change the official year? Scientists urged to take up farmer-oriented research The nuclear option An informal presentation - analytical, forward locking... Align crops to agro climate endowments… Shipping woes of Chennai companies The rise and rise of KCP No Maha Koottani in TN... Computation of GDP – conundrums continue More heat than light The few handicaps... Towards speedy justice Medical costs hit the roof... For whom the bell tolls? Increasing non co-operation of state leaders Focus on quality of power - its only around 170-180V Make standards certification mandatory... Eternal support for capitalisation of PS banks A welcome initiative by the judiciary 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 Intellectual of rare qualities Sweeter prospects for sugar Delhi Chalo... Streamlining mandatory third party cover TGS- The king storyteller Shaming of Tamils by Tamil farmers at Delhi Valli, they are more marginalised Where is Rajaji? More Shakti to resource mobilisation... More tributes to GR Readers' Mail Multi-faceted Venkat Preserving for the future Insurance companies bleeding, yet no decision on increasing FDI limit! 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Chennai devastated GM Technology at last! Nuclear power at the nucleus Don’t seem to feel the pulse… Five star activism stalls development activity Fall in crude prices help in oil sector reform IPL type auction for VCs? Tax agriculture Marketing expert Balagopal is no more Infrastructure funding – lessons learnt He continues the focus on social amelioration Padma Bhushan for A Ramakrishna Funding the un-funded TN – agglomerate land holdings without alienating ownership Gay abandon in pricing EEC at the National Media Centre When Ratan Tata visited SRM Tough task taking states together Wise Presidents Delhi is distant Naidu’s return augurs well for Seemandhra Sweet news for TN sugar mills Delhi is distant… Revive development banks... The power-full Hindujas Land reclamation from sea appears cheaper! EVM is tamper-proof Where a state respects its litterateurs… Convulsions in The Hindu The balancing act Mersal magnified S Ramanathan – a versatile musician, musicologist When the President was rendered homeless… GNS - 100: our first subscriber CSR and CMI: promise of another Srinivasan Ramanujan... Why land prices zoom in TN? L&T: focus on infrastructure and more infrastructure… No engine for this car Welcome focus on core competence Russi Mody – a tribute Online not in line with brick and mortar businesses... L&T- the specialty of special purpose vehicles Build close rapport with business leaders Sri Lanka votes for change TIAM turns a full cycle Strengthen the base... This scant respect for Law Which side are you, Montek? IAS invades NDDB... Welcome thrust on trade in Modi’s foreign visits... 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Tatas moving out of urea production... F C Kohli - his concerns all embracing The ‘Ayyo-yes’ is no more An enemy’s enemy is a friend The star of Spencers is no more WTO Meet: resolved to meet again Secularism and anti-Hinduism Tribute – Manikam Ramaswami IPL - no surprise this scam Fortune 500 review A Grand Finale for SN’s MS centenary at the US… Rs.1600 crore paper board plant of TNPL Polls and promises Return to king coal for urea...
 
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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