eGoM to lay down policy for mfg clusters
The finance Minister said the government was well on its way to double the credit flow to small scale sector.
By PTI |
NEW DELHI: With different ministries adopting a unique approach for the development of manufacturing clusters, the government has decided to set up an inter ministerial group to lay down policy for cluster development and oversee its implementation.
"Recognising the usefulness of cluster approach and in order to provide some coordination among different ministries the government is in process of constituting an Empowered Group of Minister to lay down policy on cluster development and oversee its implementation," Finance Minister P Chidambaram said.
"Currently several ministries are implementing cluster development programmes. It is not our intention to take away their responsibility and give it to some other ministry," he said at the inauguration of National Expo for Small, Khadi, Village and Coir Industries here.
The finance Minister said the government was well on its way to double the credit flow to small scale sector.
As per a package announced last year, the government had proposed to double the credit to small scale sector in next five years. In the first year the credit to the sector grew to Rs 15,000 crore.
Chidambaram said to encourage the banks to lend more to the small scale sector, the government has decided to increase the corpus of fund for providing guarantee to the loans up to Rs 25 lakh availed by the small scale sector to Rs 2500 crore.
The growth in the corpus would be over next five years and at present the corpus is over Rs 1300 crore.
He also said the one-time guarantee fee under the scheme has been brought down to 1.5 per cent from 2.5 per cent.
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