Keeping in view the importance of small-scale industries in employment generation and growth of the economy, the government and the Reserve Bank of India are considering a series of measures to enhance credit flow to the sector.
Among the measures lined up to boost credit flow to the sector are hiking the loan limit at prime lending rates (PLR) and on collateral security.
Legislation for handling delayed payments to Small Scale Industries (SSI) and on factoring services are also being considered.
"The RBI has been asked to look into the issues of reduction of net bank credit to the SSI sector, increasing cost of credit and requirement of collateral payments from the sector and come up with concrete suggestions by January 2003,