Banks to set up Entrepreneurship Development Institutes

The banks having more than 15 branches in the state should set up the Entrepreneurship Development Institutes (EDIS) in line with the Rural Development and Self Employment Training Institute (RUDSET Institute).

While State Bank of India (SBI), Uco Bank, Andhra Bank, Canara Bank and Syndicate Bank have set up such institutes, Union Bank of India has started the process of setting up a similar institute in the state.

Since the state government is focussing on the self employment of the youth and most of the banks have not opened their EDIs, they have been asked to expedite the process, official sources said.

The banks which have not yet opened their EDI should set up such institutes in the rented premises without further delay. They can also seek land/shed/building in the districts where they propose to set up these institutes.

The interested banks will have to apply to the collector of the concerned district through the District Industries Centre (DICs).They can take support or assistance from the National Bank for Agriculture and Rural Development( Nabard) and involve it in the process while opening such institutes. This issue figured in the recent meeting of the State Level Bankers’ Committee (SLBC) in October.

Further, in the backdrop of inadequate financing to the micro, small and medium enterprises (MSMEs) in the state, the banks have been asked to enhance credit flow to the sector. The pending applications for loans under MSME category will be disposed off at the earliest.

Besides, the banks have been advised to take maximum advanatage of the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) which helps the entrepreneur to avail collateral free loans upto Rs 50lakh.This is expected to boost the finance under SME sector.

The SLBC has drawn up an plan of action to improve the credit-deposit ratio in the state and to increase the quantum of differential rate of interest (DRI) loans to 1 percent of the total advances.

According to the action point, the cent percent financial inclusion of Kendarapada, Koraput, Kandhamal, Kalahandi, Nuapara, Baragarh, Jharsuguda, Jagatsinghpur, Bhadrakh, Balasore, Dhenkanal, Mayurbhanj and Gajapati will have to be completed at the earliest and for the entire state the process should be completed by 2009.

While the banks who have adopted the handloom clusters should extend necessary finance to those clusters, the banks who have not yet adopted the clusters should adopt the clusters as identified by the textile and the handloom department of the Orissa government.

Besides, to boost crop production in the state, banks have been suggested to finance the scheme of farm mechanization, Jalanidhi programme and other subsidy linked scheme sponsored by the agriculture department of the Orissa government.