The government is taking all essential steps to address the health of Micro, Small and Medium Enterprises, (MSMEs). Replying to a question in the Lok Sabha today, the Finance Minister Mr. Pranab Mukherjee said that the flow of credit to this sector has increased according to the policy package. He said that in 2009-10, the government has provided interest subvention of two per cent on pre-shipment export credit up to 31st of this month for exports in certain sectors, which included small and medium exporters. The same has been extended for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises. Mr. Mukherjee said that the loan amount eligible for guarantee under collateral free guarantee scheme of the Credit Guarantee Fund Trust for MSME has been increased from 50 lakh rupees to one crore rupees while lock-in period has been reduced to 18 months and guarantee coverage for loans up to five lakh rupees has been increased to 85 per cent of the loan amount. He said that the Prime Minister had constituted a high level task force with an objective to resolve a number of issues affecting the growth of this sector. He said that the government is considering the report of the task force.<br/>