The sub-group of the task force, which met here, also suggested creation of fund for development of technology for the sector besides strengthening the present mechanism of providing skills through industrial training institutes and polytechnics. The sub-group on infrastructure/ technology/skill development, chaired by MSME Secretary Dinesh Rai, said the cost of technology is very high for the sector. “The government should facilitate, incentivise and support the technology transfer at individual as well as collective levels,” an official statement said here on Wednesday. The group also recommended that the sector should be linked with research and development institutes. The recommendations of the sub-group would be submitted to the PMO after finalisation.
The micro, small and medium enterprises sector employs about six crore people and contributes 40 per cent in the country’s factory output. Incidentally, micro and small enterprises (MSEs) can further cheer up as loans from Regional Rural Banks to these firms providing certain services like education and housing would now be considered as priority sector lending.
Under the recent RBI guidelines, lenders have to give 40 per cent of their total advances to priority sector areas such as agriculture, education and housing. Loans by Regional Rural Banks to MSEs for providing services in consultancy, brokerage, among others would be considered priority sector lending.
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