Micro and small enterprises (MSE) are expected to provide employment to additional 69 lakh persons during the 11th Five-Year Plan period, Parliament was informed today.
The Plan envisages raising production (at current price) and employment in the MSE sector from 6.8 lakh crore and 322.28 lakh persons in 2007-08 to Rs 13.98 lakh crore and 391.73 lakh persons in 2011-12, Minister of State (Independent Charge) for Micro, Small and Medium Enterprises Dinsha Patel said in a written reply in the Rajya Sabha.
"The Plan recognises the MSE sector as an important segment of industry and emphasise the need for meeting their credit, technology, marketing, skill development and infrastructural needs," Patel said.
Asked if MSEs have hassle-free access to finance from public sector banks or financial institutions, Patel said, "The constraints faced by MSEs in accessing the required credit Facilities ... Relate to elaborate procedural requirements, inadequate exposure to banks/financial institutions and collateral requirements."
He added RBI has issued detailed guidelines to all scheduled commercial banks on lending to the MSME sector.
The government is implementing schemes like the Prime Minister's Employment Generation Programme and the Credit Guarantee Scheme to facilitate flow of credit to the sector.