Economic development: FM rebutts Left charge

Madurai, July 29 (UNI) Defending the economic priorities of the Centre, Union Finance Minister P Chidambaram today rebutted the charge of ignoring the core sectors and asked the Left parties to look at the facts.

The concerted efforts of certain sections, bent upon spreading a calumny against the UPA Government, was nothing but a refusal to admit the realities, he said, formally inaugurating a SIDBI-sponsored training programme for goldsmiths at the Centre for Entrepreneurship Development here.

Describing as just a myth that PSU banks serving the interests of the 'big business' were not engaged in development, he said increased lending to the core sectors, including the social sector, would demolish such unsubstantiated lies. The phenomenal growth rate of nine per cent was made possible by the active role played by the PSU banks, it was pointed out.

For, the banks have catered to the needs of not only the big businesses, but have increased the volume of lending to agriculture, women SHGs and small and medium entrepreneurs, besides students.

Offering a comparison with the previous BJP-led NDA Government, Mr Chidambaram said the situation had improved by leaps and bounds.

Agriculture credit, which was just Rs 87,435 crore on March 31, 2004, had reached Rs 2,05,080 crore. While only 10,791 SHGs were extended loans, the number had now jumped to 26,08,338. Similarly, educational loan to students had also gone up from 3,19,337 students, who were given Rs 4,550 crore assistance, to 9,37,793 candidates, who were provided Rs 14,214 crore, he pointed out.

According to him, the SIDBI-sponsored Rural Industrialisation Programme (RIP) was enough proof that the SME sector was not ignored.

The Minister informed that SIDBI was acting as a catalyst for the goldsmiths of Karaikudi in Sivaganga district to establish a private limited company through which they would set up a common jewellery making facility with modern equipment.

He said traditional artisans, who remain the repository of the country's rich civilisation and culture, should be given exposure to modern technologies and their skills enhanced, enabling them to produce on a par with global standards and enter the international market.

UNI