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