Narayan Rane says MSMEs have complained of banks not releasing credit despite government schemes

MSME Minister Narayan Rane has stressed the importance of removing complexities faced by entrepreneurs in setting up new industries such as lack of ease in securing bank credit in order for the MSME sector to scale up. Addressing an event organised by the Institute of Chartered Accountants of India (ICAI) and IMC Chamber of Commerce and Industry , Rane said multiple complaints he received from entrepreneurs are related to bank credit.

“The question asked was when the government has declared various schemes (to provide credit), then why don’t banks release the amount to entrepreneurs? We will meet with the finance ministry for this. There might be challenges for banks as well,” Rane said.

“Such challenges including infrastructure and other government schemes related should be solved for our youth looking to enter the industry,” the minister said.

ICAI and IMC launched a 75-day-long MSME Yatra programme from Mumbai to support MSMEs. The MSME Yatra aims to coordinate, synergize and leverage the various strands of excellence driving innovation and entrepreneurship, an ICAI statement noted. The initiative will enable a platform to help improve MSMEs access to knowledge, credit, and marketing competitiveness. 

According to Rane, the MSME ministry will send its representatives to every state and union territory of the country to understand the challenges MSMEs face and provide them with the necessary support to help boost employment as well as exports.

“We have promised that we will take it (MSMEs’ share in India’s exports) to 60 per cent as soon as possible.”

For the overall development of the MSME sector it is imperative to have an integrated mechanism between the government, the Ministry and the financial institutions involved in disbursement of funds

Source : The financial express