The MSME Ministry is in talks with public sector banks to extend loans to micro, small and medium enterprises at base rate to help the sector access vast capital from financial institutions at lower costs, Union Minister Kalraj Mishra said on Wednesday.
“To ensure this, I am meeting the senior functionaries of banking and financial institutions at Lucknow on Thursday so that a decision is taken on this front early with their concurrence which will be duly endorsed subsequently by the Reserve Bank of India, Finance Ministry and the Prime Minister’s Office,” the MSME Minister said.
Besides, he said the government plans to open 500 district-level incubation centres across the country to train youth to become entrepreneurs and revitalise the micro, small and medium enterprises (MSME) sector.
“We have drawn up an ambitious plan to open Incubation Centres in 500 districts across the country from the viewpoint of livelihood.
“We will also open 100 high-technology incubation centres. We want to instill confidence among unemployed youth so that they can become independent,” Mr. Mishra said on the sidelines of a PHD Chamber event in New Delhi.
The Minister also said the government will revise the definition of MSMEs to provide for a higher capital ceiling, and the new policy should be out in a month’s time.
“We are drafting the new revised MSME policy. It should be out within a month’s time. Under the new policy, we will redefine the MSMEs and introduce a new capital limit. At present it is Rs. 25 lakh, Rs. 5 crore and Rs. 10 crore.
“If your turnover exceeds that you are excluded from the ambit of MSMEs and you have to open another company to avail loan and facilities,” he said.
Besides, the Minister launched an App called the PHD-MSME App. The App has been developed with the help of students of Delhi University.
The App provides solutions to budding entrepreneurs and existing MSME entrepreneurs of different dimensions like marketing, finance, training and capacity building, different government schemes and opportunities.
He further said the MSME Ministry is working on setting up of a Credit Guarantee Trust Fund to extend liberal packages to MSME sector and inputs have already been incorporated in the new draft MSME Policy.
As per stipulation of the new policy, the general procedures as well as procurement procedures would be vastly simplified and all clearances for setting up of micro and small businesses would be accorded online within a fixed period of 15 days, assured the Minister.
