The Hindu : Tamil Nadu / Coimbatore News : Credit offtake by MSMEs expected to go up

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Saturday, Nov 21, 2009
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Tamil Nadu - Coimbatore

Credit offtake by MSMEs expected to go up

Staff Reporter

Credit flow target for these enterprises is Rs. 1,749 crore

COIMBATORE: With the economy showing signs of recovery, the credit offtake by Micro, Small and Medium Enterprises (MSMEs) in the district is expected to go up compared to last year.

According to an official of the lead bank, the credit flow target for these enterprises for 2009-10 is Rs. 1,749 crore. After the formation of Tirupur district, Coimbatore has 12 blocks.

Though Tirupur is a major MSME centre, the 12 blocks in Coimbatore will be able to achieve the credit target.

The official said that Coimbatore had done well consistently. In 2006-07, the credit flow target for MSMEs in the district that included Tirupur was Rs. 3,001 crore and the achievement was Rs. 3,017 crore.

In 2007-08, the target was Rs. 3,518 crore and the achievement was Rs. 3,535 crore.

In 2008-09, the target was Rs. 3,350 crore and the achievement was Rs. 4,009 crore.

Bifurcation

For 2009-10, with the bifurcation of Coimbatore district, the target was Rs. 1,749 crore and the credit offtake by the MSMEs so far had been to the target.

The official said that with land prices soaring in Coimbatore, the government should establish industrial estates for MSMEs here.

Government norms

This would help the units comply with the government norms.

Otherwise, the micro and tiny units operated from small sheds or rooms taken on rent found it difficult to comply with the norms.

The banks were also trying to create awareness among the MSMEs on the need to have proper accounting systems and comply with all government norms.

This would enable the units to come into the banking system easily and thus avail of credit, he said.

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