Credit flow to MSMEs by public and private sector banks increased by nine per cent in 2011-12. According to Minister of State for Finance Namo Narain Meena, banks disbursed Rs 7.12 lakh crore in 2011-12, as compared to Rs 6.53 lakh crore in 2010-11.
The allocation of 60 per cent of advances to micro and small enterprises (MSEs) to micro enterprises is taking place in three stages — 50 per cent in 2010-11, 55 per cent in 2011-12 and 60 per cent in 2012-13, said the minister. He was replying to a question in the Lok Sabha.
Meanwhile, the government has formulated several policies, programmes and schemes to facilitate promotion and development of MSMEs in the country, the minister said. In the Union Budget for 2012-13, capital gains tax on sale of residential property was exempted, if the sale consideration is used for purchase of new plant and machinery.
Restrictions on venture capital funds that tied them down to investing only in nine specified sectors ware removed. Another key initiative is the implementation of the Public Procurement Policy for MSEs Order 2012.
Other major schemes include the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Cluster Development Programme, and National Manufacturing Competitiveness Programme.
