Cabinet Minister Shri. Nitin Gadkari said that the government has decided to set-up a web portal within a month for products made by MSMEs similar to “what Alibaba has done to China’s growth and Amazon in the US.”
Bank credit to India’s micro, small and medium enterprises (MSME) has risen from Rs 10.70 lakh crore during March 2017 end to Rs 14.97 lakh crore in March 2019, according to the MSME Minister Nitin Gadkari. Access to credit has been critical for MSMEs growth even as the government had last month asked the heads of all the public lenders for doing an “in-depth analysis” to issues in the availability of credit faced by MSMEs under the MSME Support and Outreach Campaign launched by Prime Minister Narendra Modi in November last year.
On Tuesday, five public sector lenders including SBI, Andhra Bank, Corporation Bank etc., had announced an extension of in-principle approval for a term loan or working capital loan from up to Rs 1 crore to Rs 5 crore for MSMEs on PSBloansin59minutes.com. The portal, which was launched in September last year, had sanctioned 1,33,448 cases till July 17, as per MoS Finance & Corporate Affairs Anurag Singh Thakur in a written reply to a question in Rajya Sabha out of total 2,00,660 applications. However, “banks have sanctioned 36,000 loans under the psbloansin59minutes.com,” PTI reported citing Nitin Gadkari.
During the question hour in the Lok Sabha on Thursday, Nitin Gadkari further said that the government has decided to set-up a web portal within a month for products made by MSMEs similar to “what Alibaba has done to China’s growth and Amazon in the US,” Nitin Gadkari said even as he expressed confidence of the new MSME portal generating Rs 10 lakh crore turnover in coming two years. The minister said that the government has adopted the Cluster Development Approach to boost productivity, competitiveness and capacity building of micro and small enterprises.
The minister on Monday in Rajya Sabha had said that 4.36 lakh credit facility (collateral free number of loans) were given Rs 30,168.57 crore in FY19 to MSMEs up from 2.63 lakh such loans were given worth Rs 19,065.91 in FY18.