Central Bank, Ipicol ink pact for Rs 25,000 crore funds

To facilitate flow of credit to various sectors of the state’s economy including the micro, small and medium enterprises (MSMEs), ancillary and downstream industries, the state owned Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol) today entered into a pact with the Central Bank of India (CBI).

Suresh Chandra Patnaik, chairman-managing director (CMD), Ipicol and S Sridhar, CMD, Central Bank of India signed the documents in the presence of the chief minister, Naveen Patnaik.

Under the agreement, the bank will deploy additional funds of about Rs 25,000 crore in Orissa over next five years. A loan will be sanctioned within 30 days from the date of application and it will be intimated to Ipicol.

The bank will adopt clusters in the identified MSME sectors like handicraft, handlooms, sericulture and traditional cottage industries. Further, the bank shall assist the MSMEs in ancillary and downstream sectors of both existing as well as upcoming large and mega industries with special reference to the need for marketing of products and services.

The bank will set up an Entrepreneurship Development Institute at one of the potential locations in the state to take up modern entrepreneurship development, skill up-gradation and other related training and capacity planning activities.

Speaking on the occasion, the chief minister Naveen Patnaik said, the MoU would help in quantum jump of investment of the bank in the state. He requested the bank to assist MSMEs in the ancillary and downstream sector.

He called upon the bank to establish Entreprenuership Development Institutes (EDIs) and Rural Development and Self Employment Training Institutes (RUDSETI) at different locations of the state to take up entrepreneurship development, skill upgradation and other capacity building activities. A steering committee will be formed with representatives from the bank and government to supervise and monitor the effective implementation of the MoU.

Industry minister, Raghunath Mohanty said, the state government would provide the required land at mutually identified potential locations preferably inside ITI, polytechnics and engineering school premises. In case of non-availability of land in those locations, alternative land will be identified. The Central bank will also open dedicated MSME branches in the state.

The CMD of Central Bank, S. Sridhar said, the bank will ensure that the financial flow matches the developmental initiative of the Orissa government. Chief secretary T K Mishra, Development Commissioner, S P Nanda, Industry secretary, Saurabh Garg , regional director of Reserve Bank Of India, K Sudhakar and other senior officials of the state government were present.