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

 

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