SME Times News Bureau | 12 May, 2018
a view to allay the trade finance woes of micro, small and medium
enterprises (MSMEs), the Union Government has planned to more than
double the credit guarantee up to Rs 50,000 crore for 2018-19 under
the Credit Guarantee Fund Trust For Micro and Small Enterprises
(CGTMSE) scheme set up by MSME Ministry, a top official said at an
ASSOCHAM event held in New Delhi today.
have taken some decisions, we are allowing NBFCs (non-banking
financial companies) partial collateral and this year, unlike
previous years where, from fund we used to guarantee a credit flow of
Rs 19,000-20,000 crore every year for last three years, we plan to
cross Rs 40,000 crore, it may touch Rs 50,000 crore," said MSME
secretary Mr A.K. Panda while inaugurating an ASSOCHAM conference on 'Role of Trade Finance.'
also said that MSME Ministry has taken certain concrete steps as part
of structural reforms and is thus expecting about four lakh such
ensure credit availability to MSMEs for inclusive growth, the
Ministry is also holding discussions with all banks and NBFCs and is
planning that 70,000 units giving employment generation to almost 5
lakh people be taken up this year itself.
that MSMEs comprise almost 95-96 per cent out of the one crore
entities registered in the Goods and Services Tax Network (GSTN), the
secretary said that it is more than the 47 lakh MSMEs registered
under the Ministry’s Udyog Aadhaar Memorandum. Thus there is need
for a database to communicate with them and to tell them about the
facilities that they can avail.
the Ministry we are trying to work with GSTN so that we can have an
integrated database where we can communicate with MSMEs if we have
their details and work on the problems faced by them," he added.
has given a huge opportunity for MSMEs to actually come to a formal
economy where we can talk to them and there can be an aggregation of
their products and services and there can be a focussed kind of an
initiative by Government, industry associations, bankers, export
houses and international organisations so that at least their
products and services can be showcased, sold and there can be better
participation in the trade," further said Mr Panda.
MSME secretary informed that in order to ensure that credit flow for
MSMEs is up to the expectation, gaps are bridged and their problems
are addressed, the Ministry is holding discussion with the Reserve
Bank of India (RBI) about promoting fintech companies who can reach
out much better than the scheduled commercial banks to the MSMEs all
also informed that MSME Ministry would be constituting a special task
force to look at exactly what steps are needed to be taken to enhance
exports from MSMEs, to make them part of the global value chain and
also identify those MSMEs which are almost there and with little bit
of facilitation and push they can come.
further said that this will sound interesting to the large players
and it will make sense to them commercially as MSMEs always come up
with local innovations to cut costs.
the time has come for banks, NBFCs, MFIs, fintech companies,
international financial institutions and the associations to come
together for hand-holding and giving little help and push to MSMEs.
Unless and until we do that we will not be able to have inclusive
growth and employment generation," said Mr Panda.
also said that the Union Ministry will seek support of state
governments to put up details of MSMEs on the MSME Samadhan Portal.
Besides Micro and Small Enterprise Facilitation Council (MSEFC) will
also take care of this to ensure that small enterprises do not get
stuck and their payments are made in time.
his address at the ASSOCHAM conference, EXIM (Export–Import) Bank
managing director Mr David Rasquinha suggested Reserve Bank of India
(RBI) to look at further dialoguing with the FinMin (Ministry of
Finance) and the International Basel Committee to find a way to make
trade finance more reflective of the actual risks rather than a
perceived artificial framework which relies predominantly on rating.