Hotline: 1800 102 2007
X
Search Business Opportunities
2014-06-26

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.

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.

Related opportunities
  • Tea and Coffee Chain
    About Us: Ritazza is an international chain of coffee shops specialising in..
    Locations looking for expansion Delhi
    Establishment year 1988
    Franchising Launch Date 1955
    Investment size Rs. 1 Cr. - 2 Cr
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • About Us: Cambridge Montessori Pre School and Day Care is poised..
    Locations looking for expansion New Delhi
    Establishment year 2016
    Franchising Launch Date 2016
    Investment size Rs. 5lac - 10lac
    Space required 3000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Central Delhi New Delhi
  • Competitive Exam Coaching Institute
    About Us   Founded in 1996 by a team of leading educationists,Dr.Bhatia..
    Locations looking for expansion Delhi
    Establishment year 1996
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Tea and Coffee Chain
    About: High on Tea is a popular and interesting tea café..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts