PM's Task Force reviews working of MSMEs
Prime Minister's task force on Micro, Small and Medium Enterprises reviewed the problems faced by the sector particularly with regard to bank finance and formed special panels to suggest the remedial measures. Prime Minister's Task Force on Micro, Small and Medium Enterprises held its first meeting in the capital today to review the working of MSMEs. T.K.A. Nair, Principal Secretary to Prime Minister Manmohan Singh, chaired the meeting.
After MSME Associations had apprised him of issues facing the sector in August 2009, Dr. Singh had set up a Task Force headed by his Principal Secretary, with Member Planning Commission, Finance Secretary, Secretary MSME, Secretary Labour, Deputy Governor RBI, CMD SIDBI, and Development Commissioner MSME, and five representatives of MSME Associations as Members. MSME associations include Association of Lady Entrepreneurs of Andhra Pradesh, Indian Industries Association, Federation of Tiny and Small Industries of India, Federation of Industries and Commerce of North Eastern Region, and Industrial and Financial Reconstruction Association for Small and Tiny Enterprises.
The Task Force reviewed the problems faced by the MSMEs across the spectrum in all areas of operation. The Task Force has set up seven sub-groups in the areas of credit, marketing, labour relations, Insolvency and Exit Policy, taxation issues, infrastructure including technology/skill development and special issues of NE/J and K. These sub-groups will submit their recommendations in a month's time. Prime Minister has directed that the Task Force will give its report within three months. The recommendations are expected to ameliorate the problems of the MSMEs and enhance their competitiveness and growth potential.
The meeting was attended by Planning Commission Member Arun Maira, Labour Secretary PC Chaturvedi and Secretary MSME Dinesh Rai. Meeting was also attended by State Bank of India Chairman O P Bhatt, who said while the task force reviewed the problems of financing faced by the small businesses, "no targets have been set." MSME Secretary Dinesh Rai said the government gives importance to the sector and the taskforce has identified the issues of credit, labour, marketing and infrastructure as key to the sector.