The Indian Micro Small and Medium Enterprise has gained recognition for catalysing the growth and development of the nation’s economy through high employment generation. The Public Procurement Policy of the Ministry of MSME has made it compulsory for Central Public Sector Enterprises (CPSEs) to procure 25% of their total procurement from MSMEs, out of which 4% is earmarked for SC/ST entrepreneurs. Despite this, the procurement from SC/ST owned enterprises stood at 0.5 % in 2017-18.
To address this issue, CII in partnership with MoMSME organised the Regional Conference on MSME Financing on 12th February 2019. The one- day event saw the participation and interaction of banks, policy makers, entrepreneurs together with loan awareness camps.
Shri Giriraj Singh, Hon’ble Minister of State for MSME, speaking at the inaugural session said that the Banks are key promoters for the financial inclusion of SC/ST MSMEs and therefore to allow easy sanctioning of loans, he urged that the banks should provide collateral free loans and in case of non-acceptance of loan, banks should also be responsible to provide reasons for non- sanction, so that the entrepreneur can look for alternative options.
Information is a key factor that can expedite loan procurement by MSMEs as well as allow them to utilise it judiciously. Mr. Ram Mohan Mishra, Additional Secretary & Development Commissioner, MoMSME highlighted that most MSE players lack the expertise to understand and predict the complicated market dynamics which act as a hindrance in seeking loans. He therefore urged the private companies, industry associations and other bodies who have the knowledge, reach and expertise, to provide requisite know-how and market landscape to steer the entrepreneurs in the right direction.
Dr. Arun Kumar Panda, Secretary MoMSME, seconded the thought and urged all MSME entrepreneurs to register at the online portals such as GSTIN, Udyog Aadhar, Sambandh Portal etc. to receive the updates from time to time on availability of loans, schemes as well as requirements of PSUs.
Ms. Alka Arora, Joint Secretary, Ministry of MSME said that to assist entrepreneurs with respect to loan procurement as well as information assistance, the MoMSME has taken many initiatives. The National SC/ST Hub established by the MoMSME, is one such initiative to provide professional support to SC/ST entrepreneurs and has set up offices in 12 cities. Along with multiple schemes initiated by the NSSH, the Private Affirmative Action Scheme would increase the diversity and more private sector opportunities for SC/ST entrepreneurs.
“The inclusion of SC/ST entrepreneurs along with MSME business owners is mandatory for meeting the objective of employment generation and financial inclusion. CII has taken many affirmative actions such as provision of scholarships, setting up of multiskilling institutions, skilling centers in backwards districts and career counselling and will continue to engage with the government and scale up scholarship, sensitisation and vendor development programs for the progress of this sector”, concluded Mr. Shreekant Somany, Chairman CII National MSME Council.
12 February 2019