Welcome Guest

Businessex.Com
Home News Govt working towards simplification of procedures for MSME: Mishra

Govt working towards simplification of procedures for MSME: Mishra

Tags: government, kalraj mishra, msme, finance, nsic, assocham, sidbi

June 26, 2014 | COMMENTS ( 0 )

Govt working towards simplification of procedures for MSME: Mishra

MSME Minister Kalraj Mishra has assured the MSME sector that the government is working towards simplifying various issues such as finance, raw material, marketing, labour laws, NOCs and others including those related to procedural basis to help them tide over the problems the sector faces currently and with a view to encourage participation of more and more number of small industrialists in the MSME sector. The minister was speaking at India’s leading trade association, Assocham’s event in the Capital on improving access to finance to the MSME sector.

 

“As has been advised by the Prime Minister, we will put in place a single-window clearance mechanism for the MSMEs and make all efforts to address the significant issues of raw material, marketing, capital and others in a specific timeframe,” said Mishra.

 

“Banks should make their loan procedures simplified especially for those enterprises that are not well versed with the banking formalities. Banks must encourage and inform them about the requisites for an ideal loan procedure for SMEs,” said P K Jain, Chairman, SME Council, Assocham.

 

More often than not, bankers regard MSME or MSE as the highest risk sector for giving loans vis a vis other sectors and hence reject the loan requirements of the sector.

 

“The problem of the gap between the demand and supply of finance to the SMEs by the banks is of risk perception. The MSME sector is considered to be a high risk area for the bankers. However as per RBI on March 2010, MSE sector had NPAs worth Rs 20k cr while other sectors had NPAs worth Rs Rs 61,740 cr. MSEs hence had around 1/3rd of this amount. In 2012-13 MSEs had NPAs worth Rs 31k cr whereas other sectors as on March 2013 had NPAs of Rs 1.52 lakh cr. Hence the bankers’ perception towards MSE having high risk is totally false,” said H P Kumar, CMD, National Small Industries Corporation.

 

“The MSME ministry on its own had established a mechanism called credit guarantee fund trust for MSEs where the guarantee is given by the ministry with the help of SIDBI to offer loan up to Rs 1 crore. Even then the lending ratio has not improved to the extent that the government had desired and what the sector required,” added Kumar.

Please add your comment

Rating
Not readable? Change text.
Enter the characters as seen on the image (case insensitive)
  Notify me of followup comments via e-mail   Subscribe for daily newsletter

Other NEWS

Delhi based startup i2e1 raises $5,00,000

Delhi based startup i2e1 raises $5,...

December 10, 2015

Delhi-based i2e1, a smart network player platform which aims to provide low-cost and free internet to consumers and actionable ana....

Cab aggregators collaborate with state governments to boost entrepreneurship

Cab aggregators collaborate with st...

November 06, 2015

Ola and Uber, cab aggregators have signed agreements with Rajasthan government for skill development and creation of entrepreneuri....

Phase II of startup incubator T-Hub to be operational soon

Phase II of startup incubator T-Hub...

November 04, 2015

Telangana government is planning to expand T-Hub, its ambitious incubator programme, in its second phase with about Rs 150 crore i....

Sabse Technologies receives investment from Ratan Tata

Sabse Technologies receives investm...

November 04, 2015

Global telecom carrier, Sabse Technologies Inc, started by Hotmail Founder Sabeer Bhatia today announced that Tata Sons' Chairman ....

Mobile startup BlackNGreen seeks international expansion

Mobile startup BlackNGreen seeks in...

November 02, 2015

Buoyed by a strong demand for value added services, mobile startup BlackNGreen is eyeing revenue of Rs 350 crore in the next one y....

Startups seek better future under Hay Group's programme

Startups seek better future under H...

October 30, 2015

Global management consultancy, Hay Group will help 100 selected entrepreneurs transform their startups into successful companies o....

Quintype raises USD 3.25 million for product enhancement

Quintype raises USD 3.25 million fo...

October 27, 2015

Quintype, a data-driven publishing company raised USD 3.25 million to enhance product and business development. ....

Hospitality aggregator startup Qik Stay raises $250K

Hospitality aggregator startup Qik ...

October 27, 2015

Delhi-based Qik Stay, a hotel branding and aggregator startup, has raised $250K in seed round of funding from venture capital firm....

Milk Mantra targets a turnover of Rs 150 crore this fiscal

Milk Mantra targets a turnover of R...

October 26, 2015

Odisha-based startup dairy firm, Milk Mantra is targeting a turnover of Rs 150 crore this fiscal.....

Vista Rooms creates app on Instagram, targets tier II & III cities

Vista Rooms creates app on Instagra...

October 23, 2015

Mumbai-based online budget accommodation aggregator, Vista Rooms has created an app-like experience on Instagram where travellers ....

Jiyo Natural receives funding from Indian Angel Network

Jiyo Natural receives funding from ...

October 23, 2015

Indian Angel Network (IAN) has invested an undisclosed amount in Bengaluru-based consumer health food startup, Jiyo Natural.....

​​Vodoo raises USD 1 million from SAIF Partners

​​Vodoo raises USD 1 mi...

October 15, 2015

Deals and price comparison application, Vodoo has raised USD 1 million (around Rs 65 lakh) from SAIF Partners in a seed funding ro....

IBM launches public data centre in Chennai, partners with Nasscom to boost start ups

IBM launches public data centre in ...

October 15, 2015

Technology giant, IBM today launched public data centre in Chennai to tap into growing demand from financial services and governme....

For Nasscom, PPP will boost startups in India

For Nasscom, PPP will boost startup...

October 14, 2015

In the wake of some reservations over the central government creating startup funds, Nasscom's "10,000 startups" Vice President, R....

WalmartLabs to seek partnership with Indian startups

WalmartLabs to seek partnership wit...

October 14, 2015

WalmartLabs, the digital arm of US-based retailing major Walmart Stores, is scouting for startups in India for partnership and wor....