The five states collectively account for about 45% of the total MSME credit in the country.
Meanwhile, the Non-Performing Assets (NPA) of the MSME segment in UP stood at 8.3% at the end of December 2017, much lower than the corresponding figures in Maharashtra at 11.5%, West Bengal 12.5 %, Delhi 10.3% and Andhra Pradesh 9.9%.
Talking to Business Standard, SIDBI CMD Mohammed Mustafa said the NPA levels in the MSME space were lower as compared to the large industries, while the composite credit growth was also healthy in the sector.
In the backdrop of the Yogi Adityanath government taking proactive steps to boost MSMEs for economic growth and job creation, he said SIDBI was looking forward to supporting the MSME initiatives especially with regards to the proposed Defence Manufacturing Corridor in Bundelkhand and the rail auxiliary park in Fatehpur. These two mega projects were announced by the Centre at the UP Investors Summit 2018 in Lucknow, where the state garnered total investment proposals of Rs 4.68 trillion.
Besides, the Bank is confabulating with the state to offer financial advisory services apart from adopting 10 districts for state-of-art credit interventions in UP. “We have launched a pan-India programme to promote entrepreneurship and create a network of master entrepreneurs, who would be seed funded by SIDBI so that their business models encourage other youth and they could also be replicated.”
Under the programme, Mustafa informed, each year 100 people would be supported by SIDBI with funds and other support after a national level competition among the engineering and management students. The Bank has selected UP, Bihar, Madhya Pradesh and Odisha in the first phase, he added.
Meanwhile, to mark its foundation day and usher in SIDBI 2.0, the Bank launched ‘MSME contact programme’ to forge closer ties with MSMEs and create awareness about its various schemes.