Concerned with the inadequate availability of credit to the small-scale sector, Minister of Small Scale Industries, C P Thakur, said he will take up the issue with the finance ministry and the Reserve Bank of India.
Lack of credit to the SSI sector has been a focus for some time. While flow of credit to the SSI sector has increased from Rs 25,843 crore (Rs 258.43 bn) in March 1995 to Rs 49,743 crore (Rs 497.43 bn) in March 2002, flow as a percentage of net bank credit has declined.
"I will take the issue to the Finance Minister Jaswant Singh and the Reserve Bank of India after the Budget," he said.
Thakur said SSIs were unable to get credit from the banks despite a directive to issue a certain percentage of loans towards this priority sector. The high cost of credit was also an impediment, he said.
