FM Sitharaman asks Arunachal govt to adopt 'cluster development approach' to boost MSEs

Itanagar, Oct 1 (IANS) Union Finance Minister Nirmala Sitharaman on Tuesday advised the Arunachal Pradesh government to adopt 'cluster development approach' for enhancing productivity and competitiveness as well as capacity building of micro and small enterprises (MSEs) in the state. 

Speaking at the credit outreach programme of the Finance Ministry, organised by State Bank of India here, FM Sitharaman requested Chief Minister Pema Khandu to take up cluster development of the 20 GI identified products of the state by December this year so that these can be declared by the MSME Ministry and banks roped in to finance.

FM Sitharaman said that earlier, it was very difficult for entrepreneurs to get a loan as banks wanted a guarantee.

However, after Prime Minister Narendra 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.

Today, she said, all schemes launched by PM Modi do not require guarantees and banks will have to pay loans in a hassle-free process.

CM Khandu in his response assured the union minister that the state government would immediately work on it and submit proposals by December this year.

He expressed gratitude to the Finance Minister and Prime Minister for always standing by the state government in the implementation of all welfare schemes, like PM SVANidhi, Stand-Up India, PM Surya Ghar, PMEGP, NRLM-SHG, PM-MUDRA, Kisan Credit Card, etc.

The Chief Minister said that the state government is committed to successfully implementing all the 17 credit-linked schemes of the Central government along with similar flagship programmes initiated by the state government.

He appreciated 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 the rural economy prosper.

Khandu said 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.

As a part of the outreach programme, FM Sitharaman handed over an ambulance and a hearse van to the police headquarters here under the corporate social responsibility activity of SBI and also handed over 50 bicycles to girl students donated by the SBI.

FM Sitharaman also flagged off two demonstration vans for financial literacy donated by 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 SIDBI.

The Union Minister also handed over sanction letters from banks to beneficiaries under various central government schemes during the event and disbursed loan amounts worth Rs 14.41 crore to 160 beneficiaries under various schemes.

One SBI branch at Tato in Shi Yomi district was remotely inaugurated by the Finance Minister.