CM likens crisis to flash floods, says will recede soon
Source: Chronicle News Service

Imphal, October 12 2023: Chief minister N Biren on Thursday launched the Manipur State Credit Guarantee Scheme (MCGS) at an event organised by the Planning Department at Hotel Imphal, here.

The scheme has been launched in collaboration with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), established by the Ministry of Micro, Small & Medium Enterprises (MSME) and the Small Industries Development Bank of India (SIDBI) .

Addressing the gathering, CM N Biren emphasised the urgency for individuals across various sectors to fast-track their efforts to maintain the same developmental pace that the state had achieved prior to the current crisis.

He acknowledged the challenging times faced by the people and called for unity to restore normalcy through emotional integration and communal harmony.

Comparing the current crisis to a flash flood that will eventually recede, he expressed confidence that normalcy would be restored soon, underscoring the importance of trust and confidence among all communities.

The CM highlighted the state's strong position in the Northeast region, being second only to Assam in terms of MSME registration and leading among the small states, with a total of 51,199 registrations, including 50,658 for Micro, 519 for Small, and 22 for Medium enterprises.

He emphasised that MSMEs are highly suitable for Manipur, given the population's eagerness to work and engage in new endeavours.

He informed the gathering that the government, in contrast to previous requirement of collaterals or securities by banks for loans, is now guaranteeing loans under this Credit Guarantee Scheme.

He revealed that SIDBI is set to sanction approximately Rs 700 crore over the next five years, and by optimally utilising this opportunity, it could generate around 28,000 employments during this period, while terming the scheme a critical driver for economic growth.

On the potential benefits from this scheme for displaced people living in relief camps, Biren detailed that beneficiaries would receive an initial loan amount of Rs 50,000 to support their income-generating activities.

Training and marketing platforms for their products would be provided, ensuring no financial or marketing challenges.

He also stressed that with adequate training, displaced individuals could later qualify for the state government's 'One Family One Livelihood' scheme once they return to their original homes.

Reflecting on the past issue of loan repayment habits in the state, the CM noted shift in people's behaviour, now realising the opportunity for more significant loans if repayments are made promptly.

He emphasised the importance of discipline and preserving one's culture and traditions to succeed in any chosen field.

The programme featured the distribution of dummy cheques and loan sanction letters of Rs 50,000 each to 47 beneficiaries for the first phase under the "One Family One Livelihood" Scheme and the Manipur State Credit Guarantee Scheme.

Additionally, a promotional film about CGTMSE was screened.

Another 200 beneficiaries have been approved for providing financial assistance under the scheme, which targets to cover 10,000 beneficiaries.

Acknowledging the loss of documents of the displaced people, the CM asked the DCs concerned to organise camps for re-issuing documents to the displaced people and ensuring that they can get the loan within 10 days.

The CEO of CGTMSE Sandeep Varma, and the chief general manager of SIDBI Arup Kumar elaborated on the facilities offered to first-generation entrepreneurs under the Credit Guarantee Scheme.

Works minister Govindas Konthoujam, water resources minister Awangbow Newmai, textiles, commerce and industries commissioner Pradip Kumar Jha and other officials, bankers, entrepreneurs, and beneficiaries attended the event.

The Credit Guarantee Scheme aims to encourage first-generation entrepreneurs to venture into self-employment opportunities by providing credit guarantee support for collateral-free or third-party guarantee-free loans to Micro and Small Enterprises (MSEs), particularly in the absence of collaterals.

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