MSMEs play pivotal role in country’s development: Virbhadra Singh

May 18, 2011 11:14 am

“MSMEs have been recognized as engine of growth. In India, too, MSMEs have played a pivotal role in the development of the country. MSMEs provide huge employment potential at a low capital cost. The sector faces many difficulties in its quest for growth. These relate mainly to access to capital, technology, marketing, infrastructure, availability of critical information and simplified system and procedures”, said Virbhadra Singh, union minister for micro, small and medium enterprises. Addressing a seminar on ‘Building A Competitive MSME Segment: Problems and Prospects’ he informed, “To address the concerns of MSMEs, the report of the special task force has been sent to all concerned, including state governments, for implementation of the recommendations in a time-bound manner”.
 
The Minister further said that to ensure better credit flow to MSMEs by minimising the risk perception of banks and financial institutions in lending without collateral security, the Government is implementing the Credit Guarantee Scheme. “The scheme provides guarantee cover of up to 85 per cent on collateral-free credit facility extended by lending institutions to new and existing MSMEs for loan up to Rs. 100 lakh and more than 5.1 lakh proposals have been approved under the scheme so far”, he added.
 
The Minister also called for attention towards medium-scale enterprises and said that these enterprises also need promotional schemes and an enabling environment like the small‑scale industries to further augment the overall economic growth.
 

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