844 sick SSI units non-existent in Orissa

About 844 sick small scale industries (SSIs) in Orissa having a loan outstanding of Rs 5.9 crore are not in existence. These units account for 32.27 percent of the total sick SSIs in the state.

According to the figures compiled by the State Level Bankers’ Committee (SLBC), out of 2616 sick SSIs, 210 units were financed by the banks till the end of August 2009. These were provided Rs 15 crore loan under the nursing scheme.

While 362 units having outstanding of Rs 70.7 crore were found to be economically viable, 2254 units having outstanding of Rs 124.97 crore were unviable. The aggregate outstanding of the 2616 sick SSI units was Rs 195.7crore by August end this year, sources said.

On the other hand, the flow of credit to the Micro, Small and Medium Enterprises (MSMEs), housing and automobile sectors improved steadily during the first 5 months of the current fiscal. The special monthly SLBC meeting held recently reviewed the flow of credit to these sectors.

Sources said, during the first five months of the current fiscal (from April-August), the banks sanctioned and disbursed Rs 1021.07 crore working capital loan to the MSMEs in the state. This included working capital loan to the existing and new MSMEs.

Similarly, 7520 housing loans involving Rs 411.94 crore were provided during this period. Out of this, the public sector banks provided Rs 303 crore.

There was also sharp rise in automobile finance by the banks during this period with the total disbursement reaching Rs 225.81 crore. The banks sanctioned loans to 7141 applicants.

The progress of the Credit Linked Capital Subsidy Scheme (CLCSS) was reviewed in the meeting. Since the subsidy offtake under the scheme was very low, the nodal agencies were suggested to publicise the scheme among the MSMEs to increase the offtake in the scheme.

Besides, the banks were advised to finance more to the MSME sector and give wider coverage under the Credit Guarantee Fund Trust for MSE, which helps the entrepreneurs to avail collateral free loan up to Rs 1 crore.