Tamil Nadu continued to top the country in terms of sanctions and disbursals under the Emergency Credit Line Guarantee Scheme (ECLGS) announced by the Centre to support the micro, small and medium enterprises (MSMEs) sector, in view of the economic distress caused by the COVID-19 pandemic.
According to an analysis of State-wise disbursal of public sector banks under the scheme done by the Federation of Indian Export Organisations (FIEO), Southern Region, Tamil Nadu is the largest beneficiary with ₹4,383.4 crore disbursed to 1,59,662 MSMEs. It accounts for 10.48% of the total disbursal of public sector banks.
The analysis is based on data released by the Finance Ministry, as on July 15. Tamil Nadu is followed by Maharashtra with ₹4,267.87 crore disbursed to 1,24,712 MSMEs, and accounting for 10.20% share and Uttar Pradesh with ₹4,239.3 crore disbursed to 1,92,479 MSMEs and accounting for 10.14% share.
Among the southern states, Tamil Nadu is followed by Karnataka, accounting for 6.77%, Andhra Pradesh 5.61%, Kerala 4.51%, Telengana 4.48% and Puducherry with 0.24% of the total amount disbursed across India.
However, the FIEO noted that after initial sanctioning and disbursals, there was slow growth both in sanctioning as well as disbursals.
