SME Times News Bureau | 04 Jun, 2020
Union Minister for MSME Nitin Gadkari on Thursday stressed strengthening
of lending institutions like NBFCs, state cooperative banks, district
cooperative banks, credit societies etc. to promote the MSME.
In a meetings via video conferencing with the representatives
of Council of Leather Export, FICCI-‘NBFC Program’ and IMC Chamber of Commerce
and Industry on impact of COVID-19 on MSMEs, Goyal opined that strengthening of
NBFCs, state cooperative banks, district cooperative banks, credit societies
etc is required to extend support to MSMEs during this challenging time.
Further, FDI can be explored in NBFCs to strengthen them,
which will lead towards greater support to MSMEs.
During the interaction, the Minister
mentioned that for providing much needed impetus to the MSME sector to deal
with the current economic instability the government has announced Special
Economic Package: Aatmanirbhar Bharat Abhiyan.
He further explained the various support measures which have
been announced for MSMEs including changes in definition of MSMEs to provide
the required support to the sector.
He has added that definition of medium enterprises has been
further revised by increasing the investment and turnover limit basis inputs
from related stakeholders.
Addressing the representatives of Council of Leather Export,
the Minister mentioned that the proposal for establishing leather cluster
nearby to Agra Ring Road may be submitted.
These industrial clusters may develop smart cities, smart
villages and other infrastructure to help the people working in leather sector
He added that the permission from Ministry of Aviation may be
explored for using private airline for the purpose of sending export products.
Gadkari said that the need of the hour is to fight the war
against COVID-19 pandemic while continuing the economic activity.
The Minister further mentioned that the pandemic can be a blessing
in disguise, and we need to utilize this opportunity. He emphasized on usage of
PPE (masks, sanitizer etc.) and advised to maintain social distancing norms.
He mentioned that special focus is required to reduce imports
from other countries. He added that Ministry of MSME is working on two booklets
to cover details about last three year’s export and import.
The Minister opined that strengthening of NBFCs, state
cooperative banks, district cooperative banks, credit societies etc is required
to extend support to MSMEs during this challenging time. Further, FDI can be
explored in NBFCs to strengthen them, which will lead towards greater support
Gadkari responded to questions from representatives and
requested for sending suggestions and assured all the help from the government.