BANGALORE: Urging commercial banks to adopt a proactive approach towards forwarding credit to the Medium Scale and Small Scale Enterprises (MSME) sector, M Maheshwar Rao, commissioner for Industrial Development and Director, Industries and Commerce said that lack of adequate finance poses as a key constraint to the growth of the sector. Speaking at the inauguration of ‘MSME Loan Mela 2011’ organised by Vijaya Bank in association with Peenya Industries Association, he said that the MSME sector has the potential to generate higher exports and thereby a high turn over but lack of timely and adequate financial assistance thwarts the growth of small players in the sector.Laying out the state government’s plans to help the MSME sector grow, he said that the government has already planned to promote ‘industrial clusters’. “KSSIDC, in charge of developing industrial estates has earmarked 20 per cent of the land in all industrial areas for small enterprises. This will help the sector expand,” he explained.In a move to promote Karnataka as a favoured investment destination, he added that the government plans to increase the amount of investment in MSME sector.Echoing his stand, H S Upendra Kamath- chairman and managing director, Vijaya Bank, said that the primary objective in organising the loan mela was to create a platform for all the stakeholders in the sector to discuss opportunities for growth. With a rough target of forwarding credit worth `200 crores, the mela is being conducted for the 14th time by the bank.
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