Success of MSMEs depend on access to capital: SIDBI DGM
Nagpur, June 12 (KNN) The success of Micro, Small and Medium Enterprises (MSMEs) is directly dependent on easy and effective access to capital on timely basis, said Pradeep Kumar Nath, DGM, SIDBI.
He was speaking at the seminar on Credit Facilities for MSMEs and Housing for All organized by Nagpur Branch of Western Indian Regional Council (WIRC) recently.
He said, “MSMEs are integral part of economy and access to credit is a serious concern that continues to haunt the sector.”
Further, he added that the entrepreneurs have time and again approached different levels of the government and banks for assisting the MSME’s sector.
Defining the role of banks, Nath said that the role of banks is assisting finance facilities ensure the MSME’s have continuous availability of funds so as to secure order and maintain sales.
He further said that the promotion of cleaner production and energy efficiency should also be taken care while determining the financial viability of a project before financing.
SIBDI too provides several schemes and also offers financial services and products for meeting individual’s requirement of various businesses in MSME Sector, Nath added.
Highlighting the MSME sector, Chairman CA. Umang V Agrawal said that the MSME are usually one man show and it is often not possible for the entrepreneurs to have bright balance Sheets and Trade Ratios and therefore banks entertain financing of MSME’s looking at the overall prospectus of the business.
He further highlighted the NPA accounts in case of MSME’s is quite low as compared to other sectors.
CA. Abhijit Kelkar, Regional Council Member, while briefing the members about the initiatives undertaken by the WIRC and Institute of Charted Accountants of India (ICAI) for promotions of MSME sector, said that the Institute is continuously updating members with respect to newer means of finance so that the benefits are derived by a common man through proper guidance and support by Chartered Accountants.