Public-private partnerships can mitigate credit risk factor for MSMEs, says Ram Mohan Mishra
The insurance premium has to be examined so that it can lead to a win-win for MSMEs as well as for the insurers, the MSME Development Commissioner said.
Ram Mohan Mishra, Additional Secretary and Development Commissioner, Ministry of MSME, while speaking at an industry seminar batted for public-private-partnership (PPP) models between government and industry in order to mitigate credit risk factor for MSMEs, reported KNN India.
He was addressing the ‘Debtors and Industry Protection Through Insurance-Need of MSME Sector’ programme organised by PHD Chamber of Commerce and Industry (PHDCCI) in New Delhi on August 3, 2019.
According to Mishra, the premium factor that goes into insurance has to be examined critically so that it can lead to a win-win situation for the industry, particularly MSME segment, as well as for the insurers.
The Development Commissioner also called upon the PHDCCI to come out with a comprehensive paper on how insurance can be provided to MSMEs so policy measures can be evolved to suggest measures for risk mitigation for MSMEs.
"MSMEs do require multiple insurance products with moderate premium accompanying the products as the insurance for this sector has to be affordable. This is keeping in mind the overall paying capacity of MSMEs that usually face credit crunch," he said.
In June this year, Mishra had announced that the Ministry of Micro, Small, and Medium Enterprises (MSMEs) is planning to set up enterprise facilitation centres across the country to make MSMEs more competitive and help them integrate with big enterprises.
He had said that these centres are planned to be set up at block levels, and will help disseminate information to micro and small enterprises and detect issues faced by them.
The ministry is also working on improving the capacity of enterprises that exist at the lower rung of the supply chain, so that they can organically join the chain and supply their material by improving quality and becoming price competitive, Mishra added. "We are trying to integrate big and small enterprises to facilitate the value chain," he said.
