Nagaland Chief Secretary Dr J Alam, IAS, along with Finance Commissioner Sentiyanger Imchen, briefed media persons on the Nagaland Credit Empowerment Summit at Noune Resort, Chumoukedima, on 20th September 2024.
According to a DIPR report, Dr Alam highlighted the launch of the Annual Credit Plan for FY 2024-25 and announced the increase in credit flow to priority sectors from Rs 1,058 crore to Rs 2,003 crore. He stated that this increase is intended to ensure critical sectors such as agriculture and small enterprises receive the necessary financial support to drive development, adding that these measures were taken as course corrections to improve the flow of credit to priority sectors.
He also mentioned that the credit flow target for entrepreneurship has been increased from Rs 340 crore to Rs 1,137 crore for the current financial year, demonstrating the State’s commitment to expanding financial resources and stimulating economic growth across various sectors.
CGTMSE
To address concerns related to Non-Performing Assets (NPA) and banks’ hesitancy to extend loans to deserving entrepreneurs in the State, Dr. Alam said that the government will provide collateral-free coverage for loans up to Rs 50 lakh per beneficiary through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This initiative aims to reduce financial risk for banks and encourage more lending to businesses and individuals, while relieving beneficiaries of the need for third-party collateral.
Once the loan is covered under CGTMSE, and in case an entrepreneur is unable to repay the loan due to genuine reasons or business failure, CGTMSE will compensate banks for up to 85% of the pending loan amount.
CMMFI
The Chief Secretary also discussed the Chief Minister’s Micro Finance Initiative (CMMFI), stating that revisions to the CMMFI aim to streamline the flow of funds to the public, making it easier for beneficiaries to access financial resources and addressing concerns related to fund flow inefficiencies. He informed that the initiative has benefited 929 entrepreneurs, with nearly 980 additional applicants approved by the District Level Monitoring and Implementation Committee. Rs 18.6 crore has been released as a subsidy, with a total loan portfolio of Rs 52 crore.
Loan Tracking and Monitoring Website
Regarding the launch of the Loan Tracking and Monitoring Website, Dr Alam announced a new platform for online loan applications and tracking, enabling beneficiaries to apply for and monitor their loans online.
Dr Alam further highlighted several key initiatives, including the establishment of a Finance Department Monitoring Cell, the deployment of Credit Managers and Coordinators in each district, partnerships with private vendors, and the development of a robust insurance ecosystem. He discussed the Digital Piggery Insurance Scheme in partnership with Tata AIG and the Accidental Insurance for police personnel. In the event of accidental death or full disability, the family will receive Rs 75 lakh in insurance coverage, and in cases of partial disability, Rs 55 lakh. Currently, 24,087 serving police personnel are covered under this insurance.
CMHIS
He also provided updates on the Chief Minister’s Health Insurance Scheme (CMHIS), noting that since its launch, 7,457 government employees and pensioners have benefited from the scheme, with 22,187 treatments undertaken. Claims for 17,162 treatments, amounting to Rs 62 crore, have been paid. Finally, he highlighted the Chief Minister’s Life Insurance Scheme.
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