More funds for MSMEs mooted

More funds for MSMEs mooted

Panel recommends additional public spending of Rs 5,500 crore over 3-5 yrs

These funds may be used to support the establishment of Rehabilitation Funds in states for the revival of potentially viable sick units and assist MSMEs in acquisition and adaptation of modern clean technologies as well as creation of Technology Banks and product-specific Technology Development Center, Secretary, Ministry of MSME, Dinesh Rai told newspersons explaining the highlights of the report.

The Task Force, headed by T K A Nair, Principal Secretary to the Prime Minister, was set up in August last year to recommend a roadmap for the development and promotion of the MSME sector crucial for economic growth and employment generation.

The Task Force has called for an agenda for immediate action to provide relief and incentives to MSMEs, accompanied by institutional changes and detailing of programmes, to be achieved in a time-bound manner. It suggested that the government should ensure strict adherence to stipulated targets of disbursement of credits for the micro enterprises by the commercial banks. A separate fund may be created with the SIDBI using the shortfalls against the MSE credit targets for the commercial banks.

This fund named “Special Fund for Micro Enterprises” should be utilized exclusively for lending to the micro enterprises. The Task Force further suggested a Standing Review Committee under the Member, Planning Commission, be set up to monitor flow of credit to MSME sector.

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