New Delhi, May 14 (KNN) To ensure smooth credit flow to the MSME sector, the Ministry of Micro, Small and Medium Enterprises (MoMSME) has taken certain concrete steps as part of structural reforms, and is thus expecting more credit proposals this year, said Secretary, MoMSME, AK Panda.

He was at an ASSOCHAM conference on 'Role of Trade Finance’.

Addressing the event, Panda said "We have taken some decisions, we are allowing non-banking financial companies (NBFCs) partial collateral and this year, unlike previous years where, from fund we used to guarantee a credit flow of Rs 19,000-20,000 crore every year for last three years, we plan to cross Rs 40,000 crore, it may touch Rs 50,000 crore.”

The Union Government has announced that it would double the credit guarantee up to Rs 50,000 crore for 2018-19 under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme set up by the MSME Ministry.

To ensure credit availability to MSMEs for inclusive growth, the Ministry is also holding discussions with all banks and NBFCs and is planning that 70,000 units giving employment generation to almost 5 lakh people be taken up this year itself.

Panda said than 47 lakh MSMEs are registered under the Ministry's Udyog Aadhaar Memorandum. He stressed on the need for a database to communicate with them and to tell them about the facilities that they can avail.

"In the Ministry, we are trying to work with GSTN so that we can have an integrated database where we can communicate with MSMEs if we have their details and work on the problems faced by them. GST has given a huge opportunity for MSMEs to actually come to a formal economy where we can talk to them and there can be an aggregation of their products and services and there can be a focussed kind of an initiative by the government, industry associations, bankers, export houses and international organisations so that at least their products and services can be showcased, sold and there can be better participation in the trade," said Panda.

The MSME secretary further noted that in order to ensure credit flow for MSMEs is up to the expectation, gaps are bridged and their problems are addressed, the Ministry is holding discussions with the Reserve Bank of India (RBI) about promoting FinTech companies who can reach out much better to MSMEs across India than the scheduled commercial banks.

He also informed that the MSME Ministry would be constituting a special task force to look at exactly what steps are needed to be taken to enhance exports from MSMEs, to make them part of the global value chain and also identify those MSMEs which are almost there and with little bit of facilitation and push they can come.

"Now the time has come for banks, NBFCs, MFIs, FinTech companies, international financial institutions and the associations to come together for hand-holding and giving little help and push to MSMEs. Unless and until we do that we will not be able to have inclusive growth and employment generation," he added.