Bhopal: One Year Of Demonetisation: MSME sector still to overcome note ban shadow

Bhopal: A year after, the impact of demonetisation is pretty evident on Mukhyamantri Yuva Udyami Yojana, Mukhyamantri Swarojgar Yojana and Mukhyamantri Arthik Kalyan Yojana as these ambitious schemes of the state government to boost employment have fallen flat in the first quarter of the current financial year. In the last fiscal, their achievement index was 100 per cent, however, post note ban the first quarter of current fiscal has shown that the schemes could achieve only 3.62 per cent against their target.MSME sector has posted sluggish growth in the first quarter of the current financial year as the Banks, though flush with funds post note ban, are slow in financing the projects.

The hard hitting facts came to fore during state level bankers’ committee meeting held in the month of June to discuss the status of the achievements of the government programmes. The bankers however maintained that the banks were extending full support to the state government and have achieved more than 100 per cent target in last few years. The three schemes had scored more than 100 per cent in the financial year 2016-17, however they have reported sluggish performance post demonetisation, it was noted during the meeting.

As per the minutes of the meeting, during the year 2016-17, the achievement index of the three schemes was 101 per cent, but it has come down to 3.62 per cent in the first quarter of current fiscal year. The meeting also noted that there is need to bring change in approach of the banks of sanctioning and disbursing the amount at eleventh hour.  Laghu Udhyog Sangh state president R S Goswami has alleged that small entrepreneurs of the state are in trouble as the banks were financing their projects post-demonetisation.

In the last financial year, the programmes performed well as they got approvals and sanction on time. But in the current financial year the impact of demonetisation is evident and to add to it, red-tapism and complex process of obtaining license has hit the sector hard, he added. Quoting an example, he said: like application submitted in MP Online remains pending for six months, their server and the working of the department have no accountability”.

“In pro-industry approach Government of India has done away with the practice of renewal of application, such bold step need to be taken by the state government to wipe off inspector-raj from the industry”, he suggested. The principal secretary of micro, small and medium enterprise department V Kantarao, however sounded optimistic, he informed “in the last financial year we had achieved the target crossing the 100 per cent mark and in the current financial year we surely will achieve the target”. “Demonetisation is not affecting the programmes. The results are not very impressive in the first quarter, however things are progressing and the achievement report will be presented in the next meeting,” he said.