March 17, 2015: Odisha will deposit Rs One billion along with the Centre in order to be eligible for additional coverage under Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE). The scheme is meant to offer collateral-free loans to micro and small units.
While speaking to Business Standard, Panchanan Dash, secretary, state MSME department said, “ Government of India has asked for Rs 100 crore as fixed deposit at credit guarantee fund trust for micro and small enterprises for getting additional coverage under the scheme in the state. We will park the money after taking the concurrence of the finance department.” He was speaking at a seminar on ‘Credit Facilitation to MSME sector’ during 11th Entrepreneurs Week, 2015.
He added that the Development Commissioner (MSME) has asked the state government in writing to for considering the Centre’s proposal.
The Government of India launched the credit guarantee fund scheme for the benefit of micro and small enterprises by making available collateral-free credit to the MSME enterprises to the existing as well as the new ones.
A trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has been formed by the Union ministry of Micro, Small and Medium Enterprises jointly with Small Industries Development Bank of India (SIDBI) in order to implement the scheme.
