Srinagar, May 19: The Department-Related Parliamentary Standing Committee (DRPSC) on Industry, headed by Rajya Sabha Member of Parliament Tiruchi Siva, will undertake a three-day study visit to Leh and Srinagar from May 20 to May 22, during which it will hold a high-level review meeting on the implementation of the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises in Jammu and Kashmir and Ladakh.
The key meeting is scheduled to be held in Srinagar on May 22 at 9:30 am and is expected to witness participation from senior officials of the Ministry of Micro, Small and Medium Enterprises (MSME), representatives of financial institutions, industry associations, trade bodies, and stakeholders from the MSME sector.
Official sources said the parliamentary panel’s visit is aimed at assessing the effectiveness of government-backed credit support mechanisms for micro and small enterprises and gathering on-ground feedback from stakeholders regarding the accessibility of institutional finance in J&K.
Sources familiar with the programme said the committee will interact extensively with business chambers, entrepreneurs, industrial associations, start-up representatives, and officials linked with credit facilitation and industrial promotion.
Discussions are expected to centrearound issues related to collateral-free lending, procedural bottlenecks in availing finance, delayed loan sanctions, and the overall implementation of the Credit Guarantee Scheme in J&K.
The Credit Guarantee Scheme for Micro and Small Enterprises, implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), is considered one of the Centre’s flagship initiatives for promoting collateral-free credit to small businesses.
Under the scheme, eligible loans sanctioned by banks and financial institutions are backed by government guarantee cover, reducing lending risks and encouraging formal credit flow to the MSME sector.
Officials said the scheme has emerged as a crucial financial support mechanism for first-generation entrepreneurs, small manufacturers, artisans, traders, and service-sector enterprises that often face difficulties in arranging collateral security to secure institutional loans.
The scheme is aimed at improving credit delivery, supporting business expansion, promoting modernisation, and encouraging entrepreneurship among underserved and emerging enterprise categories.
As per the revised provisions effective from April 1, 2025, the scheme now provides guarantee support for credit facilities of up to Rs 10 crore for eligible micro and small enterprises.
In addition, the revised framework includes enhanced benefits for women-led enterprises, transgender-promoted enterprises, and informal micro enterprises in a bid to strengthen inclusive economic participation and improve financial access for vulnerable business segments.
Industry stakeholders in Kashmir are expected to use the opportunity to highlight several long-pending concerns affecting the MSME sector, including stringent documentation requirements, limited awareness regarding government schemes, delays in loan processing, high compliance burdens, and inadequate financial support for region-specific sectors such as handicrafts, handlooms, tourism, horticulture, food processing, and traditional crafts.
Business representatives are also likely to seek relaxation in banking norms, enhanced guarantee coverage for enterprises operating in difficult economic conditions, and stronger institutional mechanisms to improve credit outreach in rural and semi-urban areas of J&K.
The visit of the parliamentary standing committee assumes significance at a time when the MSME sector is increasingly being viewed as a key driver of employment generation, entrepreneurship development, and economic recovery in J&K.
Stakeholders believe that direct engagement between policymakers and industry representatives could help address critical gaps in credit delivery and strengthen the overall ecosystem for small and medium enterprises in the region.
