States asked to provide Rs 100 Cr under credit guarantee scheme

States asked to provide Rs 100 Cr under credit guarantee scheme

The MSME Ministry has asked the states to set up a mechanism for the entrepreneurs where they provide Rs 100 crore under the Credit Guarantee Fund Scheme and a collateral free loan of Rs 1000 crore which can be made available through all banks.

The Ministry informed that under the Credit Guarantee Fund Scheme, every year, collateral free loan of Rs 20,000 crore is provided to about 14,000 entrepreneurs. Kerala and Chhattisgarh have taken a lead in this aspect.

Kalraj Mishra, Union Minister, Ministry of MSME Informed “States provide Rs 100 crore for this, a collateral free loan of Rs 1000 Crore can be made available through all banks. We understand that access of finance is very critical for business, hence we are keen on creating a positive ecosystem for entrepreneurs.”

While informing about a fact that industrial plots are lying vacant in various SEZs.  Mishra also said, “We can succeed in setting up millions of new enterprises on these vacant plots by formulating appropriate policy. The second asset is infrastructure especially industrial parks and estates located in the States. As per the information compiled, more than 40,000 industrial plots are lying vacant in the country.”

He informed that some states, particularly, Madhya Pradesh, have taken lead in this direction.

The Minister also said that the process of simplification of forms and online registration will prove to be an important step for setting up new enterprises in the country. 

He further highlighted some of the important initiatives of the Ministry- Credit Guarantee Fund Scheme, CLCSS, Cluster Development Scheme, National Manufacturing Competitiveness programme etc. and also outlined the 100 days initiatives of the Ministry. 

In the open discussion, various issues such as need of a single window registration mechanism, best practices in EM filing, utilisation of land at the State level came up.

MSME sector contributes 8 per cent of the country’s GDP, 45 per cent of the manufactured output and 40 per cent of its exports. The MSMEs provide employment to about 60 million persons through 26 million enterprises.

The Minister emphasized the crucial role played by MSMEs in the economic and social development of the country. He emphasized the adage ‘skill for every hand and employment for every hand.’