Minister to negotiate for bank loans to MSMEs at base rate
By TIOL News Service
NEW DELHI, SEPT 18, 2014: THE Union Ministry of Micro, Small and Medium Enterprises (MSME) is lobbying hard with the public sector banking enterprises to extend loan facilities to micro, small and medium enterprises at base rate so that this segment is able to access vast capital from the financial and banking institutions at much cheaper rates and roll out quality products and run their enterprises effectively, according to the Union Minister for MSME, Mr Kalraj Mishra.
Mr. Mishra said that to ensure this, he is meeting the senior functionaries of banking and financial institutions at Lucknow today so that an earlier decision is taken on this front with their concurrence which will be duly endorsed subsequently by the Reserve Bank of India, Finance Ministry and the Prime Minister's Office.
Inaugurating the 2nd Innovation Summit-2014 under aegis of PHD Chamber of Commerce and Industry here today, Mr Mishra said that micro, small and medium enterprises across the country needed capital at relaxed rates of interest to run their enterprises and cater to the needs of their big brothers as well as contribute substantially to India's manufacturing and external engagements.
He said that after his meeting with the representatives of host of micro and small industry associations here in New Delhi following intense and protracted discussions with them, it was consented that the Ministry of MSME would work hard to ensure that base rate interest regime would be facilitated for the small and tiny enterprises. Subsequently, this concern of theirs was forwarded to the Prime Minister's Office by the MSME Ministry and as a follow up action, he would be have conclusive parleys with the representatives of the banking and financial institutions so that with due deliberations the base rate interest regime is prevailed for this segment of industry. There has to be an intense focus on rural entrepreneurs and would try to simplify business procedures for their growth, he explained.
The Minister added that his Ministry has been working hard to make sure that the new government succeeds in setting up of Credit Guarantee Trust Funds to extend liberal packages to MSME as a whole and inputs have already been incorporated in the new draft MSME Policy which is at the advanced stage of finalization. The government proposes to roll out the new policy in the next 30 days.
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.
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