Nitin Gadkari in Talks With ADB, World Bank & KfW To Address Three Major issues of Indian MSMEs

It seems that proper and meaningful actions are getting taken for the much needed betterment of the INdian MSME sector. Union Minister for Micro, Small & Medium Enterprises (MoMSME) Nitin Gadkari has recently held talks with the Asian Development Bank, World Bank and KfW (a German state-owned development bank). It is said that these meetings are taken place for resolving three major challenges faced by the Indian MSMEs– high electricity cost, high capital cost and high logistic cost.

In an interview with leading daily newspaper, Gadkari said “I recently had a meeting with the Asian Development Bank (ADB), World Bank and KfW (a German state-owned development bank) on development projects. We have identified 115 districts in rural and tribal areas. My target is to generate more exports via MSMEs and, thereby, cut imports.”

“We have decided that all MSME factories will put up a solar photovoltaic shed on their premises, in collaboration with KfW, so that the power bill comes down from the current Rs 11-12 per unit to Rs 2.5 per unit.”

He stated that all industry units must generate power. Cost of electricity has to drastically come down. Similarly, the cost of water and capital should be curtailed. Most importantly, cost of logistics must be lowered.

In addition, he informed “We are making waterways and highways as well as using electric trucks instead of diesel vehicles to bring down costs.”

On logistics cost, he pointed that it is 8-10% in China and 12-13% in Europe but in India it is 17-18%.

“I want to cut logistic costs of MSMEs to 6%. To cut the cost of capital, we are working on schemes in cooperation with the World Bank, KfW and Asian Development Bank. But we must not be dependent on such agencies alone. We must also work with cooperative banks, NBFCs (non-banking finance corporations), credit cooperative Societies, SIDBI (Small Industries Development Bank of India) and financial corporations of state governments”, he added.

Besides this, he mentioned that 300 plus technical skill centres will be developed with the involvement of industry. Industry will set up these centres and help the underprivileged.

“In this way, our own investment will be less. While we will give sops to industry, they will give us the commitment of providing employment to the needy. I am sure in the coming days, we will be successful in generating employment and contributing more towards improving growth in this way, thereby contributing towards achieving (PM Narendra) Modiji’s dream of making India a $5 trillion economy and making it among the top five economies in the world”, said Gadkari.