ITANAGAR, 1 Oct: Union Finance Minister Nirmala Sitharaman on Tuesday advised the Arunachal Pradesh government to adopt the cluster development approach as a key strategy for enhancing productivity and competitiveness as well as capacity building of micro and small enterprises (MSEs) in the state.
Addressing a credit outreach programme organised by the State Bank of India (SBI) here, she said that Arunachal does not have even a single cluster announced by the MSME ministry till date.
“I request Chief Minister Pema Khandu to take up cluster development approach of the 20 GI-identified products in the state. In small places such clusters could be declared by the ministry, and the Small Industrial Development Bank of India (SIDBI) could be roped in to finance such enterprises,” the finance minister said.
A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area and producing same and similar products and services.
The MSME ministry has adopted the cluster development approach to help MSEs become more competitive and productive. The approach includes establishing common facility centres (CFC) to support the growth and sustainability of MSEs.
The essential characteristics of enterprises in a cluster are similarity in the methods of production, quality control and testing, energy consumption, pollution control; similar level of technology and marketing strategies and practices, similar channels for communication among the members of the cluster, common market and skill needs and common challenges and opportunities that the cluster faces.
Sitharaman said that in Arunachal, small industry development and enterprises related to agri and allied sectors could be taken up and credit outreach programme is a beautiful platform through which schemes like PM SVANidhi, Stand-up India, Kisan Credit Card, PM MUDRA, NRLM-SHG, PM Surya Ghar and PMEGP, could be taken up.
“Prime Minister Narendra Modi has already launched 17 schemes to benefit the people through bank loans for which no guarantee is required,” she said.
The finance minister said earlier that it is very difficult for entrepreneurs to get a loan as banks wanted a guarantee. However, after Modi came to power in 2014, he made it mandatory that every family in the country should have a bank account under the Jan Dhan Yojana.
“Modi launched several schemes which do not require any guarantee and banks will pay loans without even asking for a single paper,” she added.
Khandu in his response assured the union minister that the state government will immediately work on it and submit proposals by December this year.
He expressed gratitude to the union minister and Prime Minister Narendra Modi “for always standing by the state government in implementation of all welfare schemes like PM SVANidhi, Stand-Up India, PM Surya Ghar, PMEGP, NRLM-SHG, PM-MUDRA, kisan credit card, etc.”
Khandu said that the state government is committed to successfully implement all the 17 credit-linked schemes of the Government of India along with similar flagship programmes initiated by the state government.
The chief minister commended banks like the SBI, NABARD, SIDBI, PNB and rural banks for extending loans to beneficiaries of all credit-linked schemes without much hassle, which, he said, has helped rural economy prosper.
He said that the state government is focusing much on pushing SHGs to take benefit of these schemes and fortunately, SHGs, especially those run by women, are going good businesses across the state.
Earlier, the minister handed over an ambulance and a hearse van to the police headquarters here under the CSR activity of the SBI and also handed over 50 bicycles to girl students, donated by the SBI.
Sitharaman also flagged off two demonstration vans for financial literacy donated by the NABARD under its CSR activity and also flagged off a mobile medical unit for conducting medical camps in rural areas of the state, donated under the CSR activity of the SIDBI.
The minister also handed over sanction letters from banks to beneficiaries under various central government schemes during the event, and disbursed loan amount worth Rs 14.41 crores to 160 beneficiaries under various schemes. (PTI & CM’s PR Cell)