ANNUAL REPORT - Dc Msme

Annual Report
2010-11
Chapter -V KVIC
Under the ISEC Scheme, credit at the
concessional rate of interest of 4 %
per annum for capital expenditure
as well as working capital, is made
available as per the requirement
of the institutions. The difference
between the actual lending rate
and 4 % is paid by the Central
Government through KVIC to the
lending banks and funds for this
purpose are provided under the
khadi grant head to KVIC.
The Institutions registered with
the KVIC/State Khadi and Village
Industries Boards (KVIBs) can avail
of financing under the ISEC Scheme.
Initially, the entire KVI sector was
covered under the Scheme. However,
120
with the introduction of REGP for
village industries (VI) in 1995 and
PMEGP in 2008, the Scheme now
supports only the khadi and the
polyvastra sector. All V.I. units
existing as on March 31, 1995, have
been allowed to avail of this facility
for the amount of bank finance
availed as on that date or actual,
whichever is less provided they are
fully functional and funds for this
purpose are provided under the V.I.
grant head.
The extent of credit flow to the
institutions under the Scheme
during the past three years and in
2010-11 is depicted in the following
Table:
TABLE 5.3: Credit Flow under ISEC Scheme
Year Credit Flow to Khadi
and Polyvastra
Institutions
2007-08 226.12 17.61
2008-09 244.85 27.54
2009-10 279.02 25.00
2010-11* 262.00 24.56
*up to December 2010
(Rs. crore)
Subsidy Provided by
KVIC
MSME