The Reserve Bank of India (RBI), Gangtok, convened the 17^th Meeting of the Empowered Committee on MSME for Sikkim on July 11, 2024 in Gangtok to review the flow of credit to the MSME sector for the quarter ending March 2024.

The meeting was chaired by Shri ThotgnamJamang, Regional Director for Sikkim, RBI Gangtok and attended by officials from NABARD, Sikkim; Department of Commerce & Industries, SKVIB; KVIC; MSME-DFO;SLBC Convenor bank; SIDBI, along with senior level officials of the major banks operating in Sikkim.

It was observed from the data, bank lending to MSME sector in the State of Sikkim for the quarter ended March 2024, has increased by 4.87% as compared to the previous quarter. Further, lending under the Prime Minister's Employment Generation Programme (PMEGP) surged by an impressive 220.34% during the quarter ended March 31, 2024 marking substantial growth as compared to the previous quarter ending December 31, 2023.It was also observed that lending to Micro Enterprises constituted 69.40% of total credit distribution to Micro and Small Enterprises, exceeding the 60% target set by the PM Task Force on MSME Lending.

Shri Jamang urged the banks to provide a conducive environment and a level playing field for the MSME sector in the State to grow and flourish. The banks were also advised to extend credit for the MSME sector without obtaining collateral security up to ₹10 lakh and avail coverage under Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).

The MSME DFO, Shri Nirmal Chowdhury reported on the approval of four MSME cluster projects in Sikkim with three additional common facility centres in the development stage. He emphasised that with adequate support, MSME clusters related to tourism could significantly boost Sikkim’s economy.

GM NABARD, Shri Ajay Kumar Sinha highlighted initiatives like NABSkill for MSME skill development, off-farm FPOs (OFPOs) in Namchi and marketing support through Gram dukans and Melas.

Further, Shri NK Singh, GM SLBC Convenor bank reiterated banks’ continued support for extending credit to catalyse the growth of MSMEs in the State of Sikkim.

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Source: RBI Gangtok

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