Financial Daily from THE HINDU group of publications
Wednesday, Dec 24, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 24, 2003 |
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Industry & Economy
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SSI Plea to fix benchmark lending rate for SSIs Our Correspondent
Madurai , Dec. 23 THE Indian Banks Association has advised the commercial banks to fix a benchmark prime-lending rate for the small-scale sector, according to Mr J.G. Gupta, General Manager, Reserve Bank of India (RBI). Addressing a seminar on `Alternative avenues for financing SMEs' organised by the Confederation of Indian Industry, Madurai Zone here, recently, Mr Gupta said the small scale sector sustained the economic development in the country and the idea of reduction in interest rates and offer of floating rates will help the small scale sector procure funds at lower costs. He said that since the introduction of reforms in the economy, the flow of credit has increased from Rs 1,680 crore in March 1991 to Rs 5,300 crore in March, 2003. A sound institutional set up has been put in place to help the sector face the international competition successfully. A National Renewal Fund to protect workers affected by technology upgradation and modernisation has been set up. An act has been passed in 1993 for payment of interest for delayed payments. A technology development and modernisation fund has been created with the Small Industries Development Bank of India (SIDBI). Entrepreneurship Development Institutes have been established in some states, he listed. He further mentioned that in order to take care of potentially viable sick units, State-level inter-institutional committees, comprising respective State Governments, financial institutions, commercial banks and SIDBI have been constituted. Individual cases referred to them would be examined for rehabilitation, he added. The Small Scale Industries Ministry has identified 60 clusters for the development of the small-scale sector that included four in Tamil Nadu, he said.
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