SSIs get development funds

INTERIM BUDGET & THE ECONOMY/SSIs

The small-scale sector will have easier access to funds for financing its infrastructural needs. Finance Minister, Jaswant Singh proposed the setting up of three funds which would provide loans at concessional rates.

Singh said that the Agricultural Infrastructure and Credit Fund, the Small and Medium Enterprise (SME) Fund and the Industrial Infrastructure Fund (IIF) would be operational shortly.

He said that all the three funds would provide credit at highly competitive rates, expected to be 2 percentage points below the prime lending rate (PLR), without compromising the norms of financial prudence.

The Agricultural Infrastructure and Credit Fund to be christened 'Lok Nayak Jai Prakash Narayan Fund' would provide credit support to infrastructure facilities such as wasteland development, completion of existing but incomplete minor irrigation projects plus new minor irrigation works, grading, certification, and storage of agro-products, and construction of modern abattoirs.

Singh said that the SME fund, on other hand, would address the problem of inadequacy of financial resources for the small-scale sector and the lack of a Small Industry Development Bank of India coverage for some of the medium-sized enterprises.

The Industrial Infrastructure Fund will provide credit at highly competitive rates for power generation, seaports, airports, roads, tourism, telecommunication and urban infrastructure like municipal services, water supply, sewage disposal and environmental projects.