Post News Network
Bhubaneswar, Feb 1: The National Bank for Agriculture and Rural Development (NABARD) has projected credit potential for Micro Small and Medium enterprises (MSME) for 2016-17 at Rs 13,338 crore. In its recently released State Focus Paper 2016-17, the development bank has said that credit potential of the sector is about 23 per cent higher than 2015-16 period. Last report has pegged the credit potential for MSME sector at Rs 12,003 crore for FY16.
Out of the total target 2016-17, while the Regional Rural Banks have been given a target of Rs 1,576 crore, commercial banks have the highest set target of Rs 10,132 crore. Meanwhile, state co-operative banks are expected to lend Rs 295 crore to the sector.
As per the report, during FY15, banks had exceeded the given target by disbursing Rs 8,039 crore in FY14-15 against Rs 4,746 crore disbursed in FY13-14. Pointing out the major constraints seen in the MSME sector, the report said industrial sickness, unavailability of timely credit support to artisans and non-availability of adequate marketing support are the major constraints for growth of the sector in the state.
Giving district-wise statistics, the report said credit potential of the Cuttack district stands at Rs 1,927 crore, which is the highest among all districts of the state. The least potential is seen in Deogarh district.
Meanwhile the report has estimated credit potential for export segment at Rs 727 crore in the state. The credit potential for this segment mainly comprises agro-based products, forest-based products, mineral-based products, marine-based products and handloom and handicrafts products. It also suggested various critical interventions. Bankers should extend adequate finance to entrepreneurs for setting up non-farm units along with identification of matured Self Help Groups (SHG) are some of the measures proposed by the development bank. Market outlets may be provided by each gram panchayat to SHG clusters for marketing local produce made by its members.