As a part of the stimulus packages announced by the government, banks have disbursed loans worth Rs 8,500-9,000 crore to the micro, small and medium enterprises (MSMEs) in the past few months.
Secretary in the Ministry of MSME, Dinesh Rai said that out of Rs 7,000 crore refinance facility extended to Small Industries Development Bank of India (SIDBI), Rs 4,300 crore have already been released to the commercial banks.
As per the SIDBI requirement, banks had to double the amount released to them. As a result, "About Rs 8,500-9,000 crore has already been released by the banks to MSMEs," said Rai.
There have been different stimulus packages extended by the government to the industry. These packages have been designed especially for the export units, MSMEs and commercial vehicles in order to counter the impact of global economic slowdown.
Further Rai said that the government would continue to assist MSMEs that constitute to about 45% of India's total industrial production.
Meanwhile the ministry is about to finalize Rs 160-crore scheme to make the MSME sector IT enabled. "So we have almost finalized Rs 160-crore stimulus IT package for the MSMEs," said Rai.
MSME gives employment to 42 million people in the country.