Ad Here  
Solar, solar everywhere … Airlines in India: cost and space Music happens Parliament in paralysis... MHC should not return to its old indisciplined ways China invests in India Remembering Indira Sivasailam... TN – agglomerate land holdings without alienating ownership A rich pool of talent not utilised…. Limit foreign borrowings to hi-tech, export potential projects... The Gulf aviation boom Not just in-laws (and outlaws); they’ve renowned academics at the helm! Solar thermal shines… S Ramanathan – a versatile musician, musicologist Why this malaise in medical education? Tihar, Puzhal not different from Parappana Agrahara Protest masters... Telangana in top gear… Fortune for Indian Airlines Convulsions in The Hindu GNS - 100: our first subscriber Land reclamation from sea appears cheaper! How Air-India loses customs... The ‘Ayyo-yes’ is no more Shaming of Tamils by Tamil farmers at Delhi CII projects higher growth… Make standards certification mandatory... Contrarian cousins This scant respect for Law He saved millions from starvation... Valli, they are more marginalised Tribute – M V Murugappan PPP mode for upgrading Corporation Hospitals IPL - no surprise this scam TN accounts for the largest recruits by the IT sector Making ‘my Amaravati’... More Shakthi to Das’ elbow Pharma – overdose of copying The ‘Jayanthi Tax.’ Revving up the manufacturing sector Return to king coal for urea... Funding the un-funded More tributes to GR Sweeter prospects for sugar Delhi Chalo... Inflation: are we emulating Argentina and Brazil? Welcome focus on core competence Shale gas and its shallow future Cleaning Ganga – relocate tanneries and install electric crematoria R Sridhar steps down as CEO of Shriram Capital Roaring Ro-Ro facility Wanted: a second airport for Chennai F C Kohli - his concerns all embracing Auto components surge… Secularism and anti-Hinduism Computation of GDP – conundrums continue Modi and the lady The Ports’ Pasha expands into Tamil Nadu Come elections, come advertisements... Fall in crude prices help in oil sector reform All eyes on Sankara Nethralaya Demise of a media baron... Permanent secretariat for TN GIM Quality silica from Neyveli L&T: focus on infrastructure and more infrastructure… Delhi is distant A welcome initiative by the judiciary Polls and promises London, London Narayan The balancing act Which side are you, Montek? Mu Sigma – is no more Kinetic Karnataka Things happen by accident and not by design... An inexplicable neglect Fuel for thought IAS invades NDDB... More Shakti to resource mobilisation... EVM is tamper-proof GM Technology at last! Readers' Mail A Grand Finale for SN’s MS centenary at the US… Muffled voices for merit… For whom the MIDS bell tolls? B H Kothari - a tribute Medical costs hit the roof... Waning interest in public discussions… ONGC at KG Basin Whistle-Stop Tour of Raghuram Rajan Tatas moving out of urea production... Lesson from Chandrababu Naidu Welcome changes that testify to Jayalalithaa’s return to health Building loyalty through the stomach Dr C Rangarajan returns to Chennai A Grand Finale for SN’s MS centenary at the US… Editor's Notes Liberal imports idling indigenous capacities An enemy’s enemy is a friend Nuclear power at the nucleus Modi storms Silicon Valley Online not in line with brick and mortar businesses... The why of tax incentives The sea- saw battle continues... New IT products of Ramco in the pipeline… Rahman at CIC Odisha: spectacular win by Naveen Patnaik SoA @ 80 The few handicaps... The rise and fall of Annamalai University When Ratan Tata visited SRM A think tank for Chennai Robber barons everywhere Alexa – Talking Wikipedia Godspeed, Chief Minister JJ Preserving for the future The Jan Dhan bonanza TN-leverage strength of BHEL, NLC... Scientists urged to take up farmer-oriented research Tough task taking states together No Maha Koottani in TN... Diamond jubilee of Egmore Samskrt School S V Raju – a ‘good’ true liberal He continues the focus on social amelioration Insurance companies bleeding, yet no decision on increasing FDI limit! West Bengal: mindless malignancy Tax agriculture Multi-faceted Venkat Paytm karo... Towards speedy justice Noble nonagenarians... Where a state respects its litterateurs… Increasing non co-operation of state leaders Adapt Vajpayee dinner diplomacy Don’t seem to feel the pulse… When TN politicians can emulate Kerala's Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Revive development banks... A professional at the helm of IRDA... Another Indian music maestro at the UN Delhi is distant… Haul over the coal Where is Rajaji? Measuring roof tops in terms of KW/MW Russi Mody – a tribute Build close rapport with business leaders Infrastructure funding – lessons learnt Eternal support for capitalisation of PS banks IPL type auction for VCs? Sri Lanka votes for change Colour-Chem’s colourful KRVS Streamlining mandatory third party cover There was flood of milk. Reason: no milk commissioner! Breaththrough in malaria control CSR and CMI: promise of another Srinivasan Ramanujan... EEC at the National Media Centre The nuclear option The Swadeshi Trump The power-full Hindujas An informal presentation - analytical, forward locking... TELANGANA at last…BUT Cutting the nose to spite the face Silver Years of Madras Musings A glass full of corruption Align crops to agro climate endowments… CRS, a jewel among managers, is no more. Banning booze... Should we change the official year? Engineering seats go abegging TIAM turns a full cycle A C Muthiah – his munificent bequeaths to science CIPET hqrs to stay at Guindy – for the present? Editor's Says Bihar – Nitish Kumar adopts the Lalu model A proud Madrasi Poor quality of university VCs Intellectual of rare qualities Marketing expert Balagopal is no more Gas is the way forward Shipping woes of Chennai companies Maximising the micro pricing … A friendly business group The star of Spencers is no more Reliance’s TV – 18 ready to launch Tamil News Channel Delhi returns to BJP Wise Presidents Why land prices zoom in TN? Naidu’s return augurs well for Seemandhra Rs.1600 crore paper board plant of TNPL Strengthen the base... Five star activism stalls development activity Boy, can you beat these? Plummeting profits of PSBs No mega rail project for Tamil Nadu A yen for wastage… A more liberated TN… Shanti and Sadhana through Music Padma Bhushan for A Ramakrishna PC’s preference for professionals Focus on quality of power - its only around 170-180V Welcome GST Put expensive assets created to use... When small is no larger beautiful.. Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Recognition to role of NBFCs.... For whom the bell tolls? Tatas moving out of urea production... Cement prices continue to rise… Kudos to NDTV... Mersal magnified Small units prefers to remain small... Moily’s bold thrust Excel Generators provide the vital back-up Lalu’s envy, India’s pride More heat than light Sweet news for TN sugar mills Naidu will soon build a new Hyderabad When online building permits work…. Fortune 500 review Bihar elections - the Rajaji formula worked When nations steal growth from one another… …and of a popular trade leader Tribute – Manikam Ramaswami Like Hinduism: many paths to reach God... Adharma of opposition politics Quality education through the PPP mode L&T- the specialty of special purpose vehicles No engine for this car The brown list of Venkitaramanan Gay abandon in pricing Of course, Gujarat is vibrant The rise and rise of KCP Tribute – UCAL Selvan… TGS- The king storyteller WTO Meet: resolved to meet again Discoms deserve better… Kulandai was a giant Vibrant Gujarat When the President was rendered homeless… Road development slows down Air Asia India will set new benchmarks for budget travel Welcome thrust on trade in Modi’s foreign visits... Poor representation for Kerala and TN in Cabinet Tribute
Funding the un-funded

Noted chartered accountant, columnist and Convenor, Swadeshi Jagran Manch, S Gurumurthy (SG), has been campaigning for the recognition of the contribution of several lakhs of small business units. SG has been referring to the substantial share of micro, small and medium enterprises to the nation’s GDP, employment and exports. In extensive travels to different parts of the country he has been interacting with hundreds of entrepreneurs from these sectors. He has been stressing on their rich contributions despite the severe constraints they face in accessing needed funds on fair terms. SG has been receiving a good deal of support from Prof R Vaidyanathan of IIM-Bangalore. The learned academic has also been passionately advocating the case of micro, small and medium enterprises (MSMEs).

This great work has received notice, redressal and action at the hands of Finance Minister Arun Jaitley. In his budget for 2015-16, Jaitley proposed, “to create a Micro Units Development Re-Finance Agency (MUDRA) Bank with a corpus of Rs 20,000 crore and credit guarantee corpus of Rs 3000 crore. MUDRA Bank will re-finance micro finance institutions through a Pradhan Manthri Mudra Yojana for lending. Priority will be given to SC/ST enterprises. Just as we are banking the un-banked, we are also funding the un-funded.”

Jaitley pointed to the NSSO Survey of 2013 that estimated 5.77 crore small business units, mostly individual proprietorships, which run small manufacturing, trading or services activities. “Only four per cent of such units receive institutional funding. Providing access to institutional finance to such micro/small business units would turn them into strong instrument of GDP growth and also employment,” states a press note from the Ministry of Finance.

The Ministry also proposes changes in priority sector lending (PSL) norms. It estimates total credit extended by banks in PSL at Rs 2,154,356 crore. Changes proposed in PSL include:

  • A separate sub-limit of up to 8 per cent for PSL
  • Loans for agri processing and agri infrastructure to be included in PSL without any limit on the size of loans
  • Loans to medium enterprises included in PSL
  • Loans up to Rs 5 crore for social infrastructure like schools, healthcare, drinking water, sanitation… under PSL for towns of less than one lakh population.
  • Renewable energy sector added to PSL with a limit of Rs 10 crore loan
  • Progress to be monitored quarterly


Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236