International BusinessOrissa SMEs unhappy over state level banks' functioning
Small and Medium Enterprises (SMEs) in Orissa have expressed their resentment over the functioning of the State Level Bankers’ Committee (SLBC), which meets at regular intervals to monitor the flow of credit to the Micro, Small and Medium Enterprises (MSME) sector.
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The Co-ordination Committee of Industries Associations (CCIA) of Orissa, representing five industry associations in the state, has sought detailed information on the number of applications pending, the period for which they have been pending, and the quantum of finance applied for.
The aim is to assess the adequacy of finance extended by banks and the promptness with which they have extended it, in meeting the credit requirements of the MSME sector.
“Since details like pending applications and additional capital sought by units are not available, no meaningful discussion can be held about the problems. So we have suggested to the SLBC and the government that they should make this information available,” Niranjan Mohanty, president of the Utkal Chamber of Commerce and Industry (UCCI), told Business Standard.
Mohanty said that the information on the loan amount applied for should be furnished along with the sanctioned amount, since this can reflect the adequacy or inadequacy of the credit provided to MSMEs. The representatives of the associations will not attend the monthly special SLBC meeting unless their grievances are addressed, he added.
When contacted, S M Sinha, general manager, Uco Bank and the Convener of the SLBC in Orissa, said that efforts were being made to take up MSMEs’ problems in right earnest and the agenda papers would be provided to the industry associations a few days before the meeting.
“If they have some individual problem, they should take up the problem with the concerned bank. Since it will not be possible to discuss individual cases in two or three hours, only general issues can be discussed in the monthly SLBC meeting,” Sinha added.
Meanwhile, the Orissa government has asked all General Managers (GMs) of District Industries Centres (DICs) to provide information pertaining to pending applications, applications for enhancement of working capital loans and pending applications for loan restructuring, made by MSMEs. They will collect information from their respective districts and send it to the state government.