Form separate cell to address MSME problems: Amit Mitra

Kolkata: State Finance and Industry minister on Tuesday urged the Bengal Chamber to form a separate cell to look into the problems of the MSME sector and also keep a tab on the credit link of the banks to ensure a smooth flow of funds for the self help groups.

"We had the State Level Banker's Committee (SLBC) meeting recently where they had proposed to provide credit link of Rs 3.50 lakh for self help groups up from Rs 2.50 lakh in the fiscal 2016-17. I will urge the chambers to form a cell and assess which district is registering a shortfall in credit flow and what has been the credit disbursement of the banks. This would ensure pushing up of things," Mitra said addressing the annual general meeting (AGM) of the Bengal Chamber on Tuesday.

According to the Finance minister, the quantum of agri-loan given to the farmers of the state had increased substantially which has been evident from the rise in Kisan Credit Cards (KCC) given to them by the banks as well as loans extended to them.

"When it comes to KCC, banks have agreed to handover 45 lakh in 2017-18 fiscal. In 2016-17, the figure of KCC was 16.34 lakh. This is good for the state's economy," he said, adding that this will be a 'game changer'.

However, former Deputy Governor of RBI S S Mundra who was present at the AGM differed on the perception of the state Finance minister in terms of agriloan. "This is all good. But this can't be a game-changer. This is all incremental and not a great leap forward," Mundra said.

He added that credit extended to fragmented land holdings would not become productive.

"What is required is aggregation of land holdings and introduction of contract farming and establishment of chain linkages," he maintained.