Piyush Goyal directs SIDBI, CGTMSE to set up framework for faster processing of SME loans
Commerce and Industry Minister Piyush Goyal has urged SME sector manufacturers to produce high-quality goods and follow international standards so that exports from the SME sector may become a part of the global value chain.
Commerce and Industry Minister Piyush Goyal has directed SIDBI and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to set up a framework for helping process loans to SME units faster, an official statement said on Tuesday.
The minister has also urged SME sector manufacturers to produce high-quality goods and follow international standards so that exports from the SME sector may become a part of the global value chain.
"The minister directed SIDBI and CGTMSE to set up a framework that will enable them to process loans to SME units faster and also provide insurance cover to the SME exporters," the statement said.
On the issue of delayed payments, he examined the possibility of big companies making full payment to SMEs against delivery so that working capital of SME units is not blocked. The minister assured the sector that the government would give all support and help in the skilling of manpower.
Many issues pertaining to the MSME sector were put up for discussion with the minister by MSMEs through industry chambers including the Confederation of Indian Industry (CII).
"The most important issues that were discussed in the meeting included the problem faced by SME units in accessing credit from banks, delay in payments from PSUs and government departments, the issue of GST refund, the dearth of skilled manpower in the SME sector, and the issue of differing wages in states across the country," the commerce and industry ministry said.
The MSME sector employs over 100 million people and accounts for 45 percent of manufacturing output and more than 40 percent of the country's exports. With 63.4 million units throughout the country, it contributes around 6.11 per cent of the manufacturing GDP and 24.63 per cent of the GDP from service activities.
Earlier in May, the Small Industries Development Bank of India (SIDBI) reported a 28.22 percent increase in net profit, amounting to Rs 519.36 crore for the March quarter.
(Edited by Teja Lele Desai)
