Odisha to sign pact with NSIC to facilitate credit flow to MSMEs

The Odisha government will enter into a memorandum of understanding (MoU) with National Small Industries Corporation (NSIC) to facilitate credit linkage for MSMEs (micro, small & medium enterprises) in the state.

“I am directed to say that Government of Odisha in MSME department   agreed to sign MoU with NSIC after model code of conduct is over,” F M Naik, additional secretary, MSME department wrote to Deputy General Manager, NSIC – Bhubaneswar.

NSIC has signed pacts with various nationalised and private banks for credit facilitation to the MSMEs under its bank tie-up scheme. The units in Odisha can also avail credit under the arrangement.

Through syndication with these banks, NSIC arranges for credit support (fund or non fund based limits) from banks without any cost to MSMEs. All documentation pertaining to completion and submission of a credit proposal to banks shall be undertaken by NSIC. Besides, NSIC will also provide marketing linkages for the MSME units, said PC Nayak, deputy zonal general manager, NSIC, Bhubaneswar.

NSIC, a mini ratna government company, plans to set up an MSME (micro, small and medium enterprises) facilitation centre in Bhubaneswar with an investment of Rs 60 crore. This proposal is also likely to figure in the MoU.

“The foundation stone  for the centre will be laid after the elections,” Nayak said.

The facility will be a one-stop solution for the development of MSMEs and is likely to house offices of service providers like training institutes and insurance companies.

It may noted that the state ranks among the top ten states with a share of 4.92 per cent in the country in terms of number of MSME units as per a recent census.

Other states with significant share of MSME units to their name are Uttar Pradesh (11.24 per cent), West Bengal (10.47 per cent), Tamil Nadu (9.16 per cent), Andhra Pradesh (7.50 per cent), Maharashtra (7.27 per cent), Gujarat (6.55 per cent), Kerala (6.51 per cent), Madhya Pradesh (5.79 per cent), and Karnataka (5.60 per cent).

The state government has also unveiled a Rs 1,600-crore investment plan aimed at establishment of 32,000 new units in the MSME (micro, small & medium enterprises) sector in the 12th Plan period (2012-17). The move is expected to create 160,000 new jobs.