Madhya Pradesh drops lending rates for small firms

The Madhya Pradesh government on Monday tried to appease as many as 500,000 craftsmen and artisans by announcing a cut in lending rates for craftsmen and artisans. Now loans for craftsmen will be available at 7 per cent against the existing prime lending rates of 12 per cent or more. A huge sum will also be allocated shortly for training, infrastructure, research and the development of the state's craft industry.

A number of select artisans and craftsmen from all over the state gathered at the chief minister's residence to participate in "Shilpi Avam Karigar Panchayat" (Craftsmen and Artisans' Panchayat). Most of them narrated their plight and complained of poor marketing, raw material shortage, power outage, harassment and lack of support from the government machinery.

Speaking to Business Standard on the sidelines of the Panchayat, Chief Minister Shivraj Singh Chouhan said his government would shortly allocate a fund of Rs 27 crore to train at least 15,000 craftsmen in various trades. However, he did not disclose the amount which his government would spend on interest subsidy. He said his government will soon join hands with National Institute of Design Ahmedabad and National Institute of Fashion Technology for new designs of artisans' products.

Chouhan also announced the formation of a foundation for clusters and said his government would extend a support of Rs 25 lakh to each federation, besides the creation of new Haat at various places in the state to showcase and market the craftsmanship. "We will create a Shilpigram at Budnighat and create a Haat for craftsmen at Lalbagh Palace Indore with a combined investment of Rs 4 crore," said Chouhan.

In the absence of branding, marketing, geographical indication (patent), export facilities, poor infrastructure in terms of roads and power, decline in government orders, local craftsmen have switchedover to other businesses or jobs. However, Chouhan was silent on providing pension for old-age craftsmen, the demands for regular power supply and maintaining the quota regime for craftsmen in government purchases.

Most of the craftsmen in the state make wooden toys, artifacts and ornaments, saris, durries, handloom and powerloom, earthen pots and printed dress material.