Govt To Ease Credit Facilities Available To the MSMEs

With a key focus on the micro, small and medium enterprises (MSME) sector, the government is now focusing on easing credit facilities available for the sector. The government is looking at resolving the issues concerning the MSMEs; especially those arising out of the credit guarantee trust fund.

“MSMEs Ministry is willing to take responsibility and we have urged various other state governments for credit guarantee trust fund and we are collecting the funds to ensure that banks do not hackle entrepreneurs and instead take up the issue directly with the Ministry,” said MSME minister Kalraj Mishra.

He added that the ministry is working towards streamlining the process of filing entrepreneurs’ memorandum (EM) through an online system. ““As filing of EM-1 and EM-2, a part of our registration process is causing problems in certification, we have given priority to self-certification and have made it operational in about 6-7 states and we are soon going to launch the same. We are also working towards fixing a deadline for procurement of NOC from concerned ministries to ensure that our small entrepreneurs do not face any difficulties,” said union minister Mishra.

The government is also planning to start an initiative for joint skill development of labour and entrepreneurs.

“The whole idea is for skill development of youth in the rural sector to encourage them for entrepreneurship thereby imparting training through machines by setting up incubation centres on a wide scale,” stated MSME minister Mishra.

The minister also emphasized on the need for public, private partnership (PPP) business model for growth and development of enterprises in this sector. He invited private sectors to make investments in skill development by setting up technical institutions.

Currently, the sector is facing an acute shortage of skilled labour, credit availability, raw material as well as does not have access to upgraded technology.