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Centre framing schemes to bail out MSMEs
01 May '09
2 min read
The Centre is closely supervising stimulus measures implemented specifically for the micro, small and medium enterprises (MSMEs), revealed Dinesh Rai, Secretary, Ministry of Micro, Small and Medium Enterprises. He was talking at a meeting organized by an Industry chamber.
He said that, to release MSMEs from the terrible effects of recession, Small Industries Development Bank of India (SIDBI) would be asked to increase its refinancing facilities. SIDBI has distributed about Rs, 90 billion to MSMEs in the areas of textiles, handicrafts, leather etc.
Mr Rai said, for the betterment of MSMEs, a committee has been formed, presided by the Finance Secretary. About 45 percent of the total manufactured output is contributed by MSMEs and nearly 40 percent of India's exports are being done through MSMEs, but due to global financial slowdown, MSMEs have badly affected by cheaper imports and lost its international business.
MSMEs provide employment to over 42 million people. The Export-Import Bank of India has received a credit line of Rs. 50 billion to cater to pre-shipment and post-shipment to exporters at competitive rates in rupee and dollar.
For the easy marketing of MSME products, the Ministry of MSME has framed two new schemes under the National Manufacturing Competitiveness Program (MMCP). The first scheme provides marketing support to MSMEs for adoption of 'Bar Code' and improving MSME's marketing strengths by using latest techniques and technologies is the focus of second scheme, informed Mr Rai.
V. Vishwanathan, General Manager, Export Credit Guarantee Corporation (ECGC) said that the corporation had cleared the claims of Rs. 4.5 billion in the year 2008-09 of which 48 percent of the claims were paid only to the US.
Mr Vishwanathan informed that the claims due to insolvencies of buyers amounted to Rs 370 and Rs 1.91 billion was paid out under default and non acceptance.
To facilitate MSMEs regarding marketing of its products, the government is planning a new procurement policy, said Dinesh Rai. He also said that the government already has a few measures in place to help MSME's.
They are purchase of specified items from MSMEs by government departments and CPSEs, time bound payments to provide marketing support to the MSMEs and nearly 358 items from MSMEs have been reserved by government agencies for purchase as well.
He said that, to release MSMEs from the terrible effects of recession, Small Industries Development Bank of India (SIDBI) would be asked to increase its refinancing facilities. SIDBI has distributed about Rs, 90 billion to MSMEs in the areas of textiles, handicrafts, leather etc.
Mr Rai said, for the betterment of MSMEs, a committee has been formed, presided by the Finance Secretary. About 45 percent of the total manufactured output is contributed by MSMEs and nearly 40 percent of India's exports are being done through MSMEs, but due to global financial slowdown, MSMEs have badly affected by cheaper imports and lost its international business.
MSMEs provide employment to over 42 million people. The Export-Import Bank of India has received a credit line of Rs. 50 billion to cater to pre-shipment and post-shipment to exporters at competitive rates in rupee and dollar.
For the easy marketing of MSME products, the Ministry of MSME has framed two new schemes under the National Manufacturing Competitiveness Program (MMCP). The first scheme provides marketing support to MSMEs for adoption of 'Bar Code' and improving MSME's marketing strengths by using latest techniques and technologies is the focus of second scheme, informed Mr Rai.
V. Vishwanathan, General Manager, Export Credit Guarantee Corporation (ECGC) said that the corporation had cleared the claims of Rs. 4.5 billion in the year 2008-09 of which 48 percent of the claims were paid only to the US.
Mr Vishwanathan informed that the claims due to insolvencies of buyers amounted to Rs 370 and Rs 1.91 billion was paid out under default and non acceptance.
To facilitate MSMEs regarding marketing of its products, the government is planning a new procurement policy, said Dinesh Rai. He also said that the government already has a few measures in place to help MSME's.
They are purchase of specified items from MSMEs by government departments and CPSEs, time bound payments to provide marketing support to the MSMEs and nearly 358 items from MSMEs have been reserved by government agencies for purchase as well.
Fibre2fashion News Desk - India
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