MSME eyes 50% budget hike

NEW DELHI: Budget support for the ministry of small and medium enterprises (MSME) could go up by 50% in the next fiscal to enable it to fund its new projects.

The budget allocation for MSME in 2007-08 was pegged at Rs 320 crore and around Rs 250 crore in 2006-07. The ministry is pitching for an increase in budget allocation to fund expansion of its programmes for weavers like ‘e-charkha’. The allocation for 2008-09 is expected to go up to Rs 500 crore.

SME minister Mahabir Prasad has asked the ministry and Khadi and Village Industries Commission to gear up to meet the Budget targets. The ministry may ask the finance ministry for collateral-free loans.

“I have instructed the ministry and KVIC to finish the enhanced programme for the spinners by March,” he said.

Presiding over the second meeting of National Khadi & Village Industries Board (NKVIB), Mr Prasad said the government was making special attempts for the development of khadi sector in the 11th Plan.