New Delhi: Union Minister for Finance and Corporate Affairs Nirmala Sitaraman has launched the National MSME Cluster Outreach Programme, organised jointly by the Department of Financial Services (DFS), Ministry of Finance, Government of India, and Small Industries Development Bank of India (SIDBI).
The launch took place on Saturday. Around 150 MSME clusters were connected virtually for the launch, with senior bank officials being present in each of these clusters.
The program aims to ensure access to financial services and promote the growth of micro, small, and medium enterprises (MSMEs) across the country, the Ministry of Finance said in a statement.
The Union Finance Minister also virtually inaugurated six new SIDBI branches in Karnataka, located at Tumakuru, Raichur, Shivamogga, Kalaburagi, Mangaluru, and Vijayapura, thereby expanding SIDBI’s reach and financial assistance to MSMEs in these clusters.
She also inaugurated four Nari Shakti branches of Union Bank of India at Bengaluru, Chennai, Jaipur, and Visakhapatnam, with the goal of empowering women entrepreneurs, and the Learning Centre of Canara Bank at Bagaluru, Bengaluru.
In her address on the occasion, Sitharaman underscored the importance of MSMEs in India’s economic development, particularly their role in innovation, job creation, and contributing to the country’s self-reliance.
The Union Finance Minister also interacted with entrepreneurs, providing insights on how the government and financial institutions can further support their growth and sustainability. Sitharaman said that banks need to walk an extra mile to enhance credit to the MSME sector.
The Union Minister set the target for all Scheduled Commercial Banks and NBFCs for providing additional MSME credit of Rs 1.54 lakh crore in the current financial year. Thus, the banks and NBFCs should aim for total credit growth of Rs 5.75 lakh crore, Rs 6.21 lakh crore, and Rs 7 lakh crore to MSMEs in the financial years 2024-25, 2025-26, and 2026-27, respectively.
During the event, SIDBI signed a Memorandum of Understanding (MoU) with the Peenya Industries Association, strengthening the collaboration to support MSMEs through capacity building, credit facilities, and knowledge sharing.
Sitharaman also distributed sanction letters to 11 MSME customers of SIDBI, aggregating to Rs. 25.75 crore, and 2 sanction letters to MSME customers of Nari Shakti Branch of Union Bank of India, aggregating Rs. 11 crore, across various sectors aimed at supporting enterprises from traditional industries to advanced sectors such as aerospace and quantum technology.
The Union Finance Minister also handed over sanction letters to five borrowers of Canara Bank under the newly launched Tarun Plus category of Pradhan Mantri Mudra Yojana (PMMY). The DFS had recently implemented the Union Budget 2024-25 announcement to increase the loan limit under the PMMY from Rs 10 lakh to Rs. 20 lakh.
