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Uttar Pradesh govt targets Rs 15,000 cr loan for MSMEs

Monday, 21 Sep 2020

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The Uttar Pradesh government is aiming to facilitate bank loans totalling Rs 15,000 crore to the micro, small and medium enterprises (MSMEs).

The bank loans to be availed for short term will help to overcome the working capital woes during the COVID-19 pandemic.

While 80 percent of the state’s MSMEs have already started working at 80 to 100 percent of their capacities after lifting of the lockdown, efforts are being made to help the remaining units resume operations quickly.

The government has also identified industrial clusters under the One District, One Product (ODOP) scheme across the 75 districts of the state.

The ODOP scheme was launched in 2018 to promote indigenous industries and handicrafts by facilitating state support in terms of setting up new enterprises, bank credit and marketing.

Of the total 9,30,348 industrial units, about 818,000 units are now functional. More than 70 percent or 5,83,000 operational units are working at 80-100 percent plant load factor (PLF), thus indicating a robust revival of their supply chains. Similarly, 1,82,951 units and 34,515 units are working at PLF of 50-80 percent and 30-50 percent respectively.

These operational industrial plants spanning different categories employ more than five million workers. Most of these units are located in the industrial hubs of the state, including Moradabad, Noida, Ghaziabad, Jhansi, Lucknow, Bhadohi, etc.

The government is looking to double MSME exports in three years to Rs 2.40 trillion.