There is no ceiling on export credit given by public sector
banks to small-scale companies. Banks usually sanction
export credit as also working capital loans after assessing
the performance of each customer, finance minister P Chidambaram
informed the Lok Sabha.
also denied that banks are prescribing export credit limits
to small-scale pharma exporters, thereby putting these
units into difficulties.
said credits of up to Rs25,000 are generally approved
within a fortnight while those above Rs25,000 are cleared
within two months' time.
fact, Chidambaram pointed out, export credit to the pharma
sector as a whole has grown 30 per cent from Rs12,682
crore in 2004-05 to Rs16,200 crore in 2005-06.
he pointed out that with a comfortable foreign exchange
reserve position, the government is not insisting on quick
repatriation of export proceeds.
who introduced the Banking Regulation (amendment) Bill,
2007, blamed the slack growth in SSI pharma exports to
strict regulations in foreign countries, which he said
the small units are unlikely to meet.
government, under the national common minimum programme
for small-scale industries and agro and rural industries,
had announced a policy package for stepping up credit
to micro, small and medium enterprises.