Chavan bats for pro-active role by banks to help SME sector

Says current slowdown would not only impact the Indian economy but also that of the state

Maharashtra Chief Minister Prithviraj Chavan on Friday called upon the banking sector to land a helping hand in further strengthening of the cooperative sector and promote small and medium enterprises (SME), especially during the current economic slowdown. Chavan flagged off the issue during his maiden meeting with the newly-appointed Reserve Bank of India Governor Raghuram Rajan.

Chavan said the current slowdown would not only impact the Indian economy but also that of the state, adding, the banking sector should play a pro-active role and initiate a slew of initiatives so that the industry and development projects in Maharashtra are not impacted adversely.

Further, he noted that the slowdown is expected to affect jobs and, therefore, the banks need to promote small and medium enterprises in particular to create further employment opportunities.

On the infrastructure sector, Chavan observed that the banking sector could provide necessary assistance for proper economic planning of infrastructure projects.

Moreover, Chavan also informed Rajan about the state government's efforts to make Maharashtra scarcity- free. He informed that the government was laying focus on water storage and completion of irrigation projects which are in their last stage.