Micro, small and medium firms, the backbone of the country's industrial production, may get up to two per cent interest subvention oninstitutional finance in the backdrop of slowdown in the employment-oriented activities.

"We are considering something like an interest subvention for the micro,small and medium enterprises (MSME), as there is a demand coming up for it again and again,"a senior official in the MSME Ministry told PTI.

At present, only the exporters in the MSME segment are given the concession interest rate on bank finance. The government, which is bearing the financial burden of the interest subvention, has extended this scheme for the exporters till March, 2010.

However, the MSME industry, which contributes 45 per cent of the country's ndustrial output and employs 42 million people, has demanded that interest

subvention be extended to the domestic units as well."We are looking at various options for making available easy credit for the sector," the official said.

Referring to the SME exchange being planned by Reliance Money, he said, it would help companies in raising money and fulfilling their credit needs.